Ong o ing E va lua tio n o f the Po te ntia l fo r Se c to r-Ba - PowerPoint PPT Presentation

Ong o ing E va lua tio n o f the Po te ntia l fo r Se c to r-Ba se d Offse t Cre dits in Ca lifo rnia ’ s Ca p-a nd-T ra de Pro g ra m Mar c h 22, 2016 1

Wo rksho p Ma te ria ls & Sub mitting Co mme nts  Pre se nta tio n po ste d a t: http:/ / www.a rb .c a .g o v/ c c / c a pa ndtra de / me e ting s/ me e ting s.ht m  White pa pe rs a nd b a c kg ro und ma te ria ls a va ila b le a t: http:/ / www.a rb .c a .g o v/ c c / c a pa ndtra de / se c to rb a se do ffse ts/ se c to rb a se do ffse ts.htm  Writte n c o mme nts o n this wo rksho p a nd te c hnic a l pa pe r ma y b e sub mitte d until 5pm (Pa c ific T ime ) o n F rida y, April 8, 2016 a t: https:/ / www.a rb .c a .g o v/ c c / c a pa ndtra de / me e ting s/ me e ting s. htm  During this wo rksho p, e ma il q ue stio ns to : a udito rium@ c a le pa .c a .g o v 2

Wo rksho p Ag e nda  I ntro duc tio n  Ove rvie w o f o ng o ing e va lua tio n  T e c hnic a l to pic s  Pro g ra m Sc o pe a nd Cre diting Pa thwa y  Re fe re nc e L e ve l  L unc h Bre a k  T e c hnic a l T o pic s  Cre diting Ba se line  Mo nito ring a nd Re po rting Re q uire me nts  Po ssib le Ne xt Ste ps  Adjo urn 3

Ca lifo rnia ’ s F o re stry E ffo rts in Co nte xt  Go ve rno r dire c tio n to re sto re a nd pro te c t fo re sts  Pro mo ting fo re st c o nse rva tio n a nd re sto ra tio n a t ho me a nd b e yo nd  Sc o ping Pla n a nd F o re st Ca rb o n Pla n  Clima te I nve stme nts fro m a uc tio n pro c e e ds  Ca p-a nd-T ra de Pro g ra m  Co mplia nc e Offse t Pro to c o l fo r US F o re st Pro je c ts  Po te ntia l fo r I nte rna tio na l F o re stry Se c to r-Ba se d Offse t Cre dits  I nte rna tio na l Pa rtne rships a nd L e a de rship  Go ve rno rs’ Clima te a nd F o re sts T a sk F o rc e  UN Ne w Yo rk De c la ra tio n o n F o re sts  Rio Bra nc o De c la ra tio n  Unde r 2 MOU 4

Why is Ca lifo rnia inte re ste d in tro pic a l fo re sts?  AB 32 c a lls fo r Ca lifo rnia to ta ke le a de rship ro le in e nviro nme nta l po lic y  I nte rna tio na l re c o g nitio n tha t c lima te c ha ng e c a nno t b e a ddre sse d witho ut a ddre ssing tro pic a l de fo re sta tio n  Ma ny c o -b e ne fits o f re duc ing de fo re sta tio n  Simila r to b e ne fits o f pre se rving Ca lifo rnia ’ s fo re sts  Re se a rc h indic a te s link b e twe e n tro pic a l de fo re sta tio n a nd re duc e d Ca lifo rnia pre c ipita tio n  I mpo rta nt c o st-c o nta inme nt fo r Ca p-a nd-T ra de c o ve re d e ntitie s  Co st-e ffe c tive mitig a tio n me c ha nism  E ng a g e s de ve lo ping c o untrie s in lo w-c a rb o n g ro wth  Ca lle d o ut in 2008 AB 32 Sc o ping Pla n a nd a g a in in 2014 F irst Upda te to the AB 32 Sc o ping Pla n 5

Purpo se o f T o da y’ s Wo rksho p  Sta ff white pa pe r fro m Oc to b e r 19, 2015  Summa rize d Ca lifo rnia ’ s wo rk-to -da te o n tro pic a l fo re sts  Outline d re c o mme nda tio ns tha t fo rm the b a sis o f o ng o ing sta ff a na lysis  De sc rib e d po te ntia l ne xt ste ps, inc luding a dditio na l te c hnic a l wo rk suc h a s the to pic s o utline d fo r to da y’ s disc ussio n  Oc to b e r 28, 2015 wo rksho p  Re c e ive d ~50 c o mme nt le tte rs, so me suppo rtive a nd so me e xpre ssing c o nc e rns o n po lic y a nd te c hnic a l issue s  ARB sta ff c o ntinue s to se e king fe e db a c k o n te c hnic a l de sig n e le me nts a s we ll a s po te ntia l me c ha nisms to mitig a te o r a vo id so me o f the sta ke ho lde r c o nc e rns  Additio na l te c hnic a l to pic s te nta tive ly sc he dule d fo r wo rksho ps in April 6

7 o pic s e c hnic a l Disc ussio n T T

Sc o pe o f the Pro g ra m  Wha t is b e ing me a sure d?  Whic h fo re st c a rb o n e missio ns wo uld b e c o unte d?  Ho w wo uld c a rb o n upta ke fro m fo re st g ro wth b e a c c o unte d fo r?  ROW Re c o mme nda tio n:  Only a c c e pt c re dits fro m de fo re sta tio n/ de g ra da tio n e missio ns re duc tio ns, ra the r tha n c a rb o n sto c k e nha nc e me nt. De fo re sta tio n a nd de g ra da tio n a re simple r to me a sure a nd ve rify, a nd re sult in mo re c o nse rva tive (e .g ., le ss) c re diting  I f c a rb o n e nha nc e me nt me tho do lo g y pro ve s itse lf, the n po te ntia lly inc lude it la te r  Curre nt sta ff thinking :  Allo w c re diting o nly fo r pro g ra ms tha t c a n a c c ura te ly me a sure , re po rt, a nd ve rify re duc tio ns fro m de fo re sta tio n a nd de g ra da tio n 8

Sc o pe o f the Pro g ra m (c o nt.)  Se e king input o n:  Whic h e missio ns re duc tio ns to me a sure a nd ve rify fo r c re diting ?  Re duc tio ns in de fo re sta tio n ra te ; a nd/ o r  Re duc tio ns in de g ra da tio n ra te ; a nd/ o r  Ca rb o n sto c k e nha nc e me nts  Ho w c o uld po te ntia l re g ula to ry pro visio ns a llo w fo r jurisdic tio na l pro g ra ms tha t c urre ntly o nly me a sure fo r re duc tio ns in de fo re sta tio n, while inc e ntivizing a dding in re duc tio ns in de g ra da tio n o nc e the jurisdic tio n is a b le to me a sure a nd ve rify suc h re duc tio ns? 9

Cre diting Pa thwa y  Cre diting pa thwa y re fe rs to who issue s c re dits a nd who re c e ive s the m.  Optio ns:  Pa rtne r Jurisdic tio n issue s a nd se lls c re dits  Pa rtne r jurisdic tio n issue s c re dits within its o ffse t tra c king re g istry  Pa rtne r jurisdic tio n re tire s c re dits fro m its o ffse t tra c king re g istry a nd re q ue sts tra nsitio n to ARB se c to r-b a se d o ffse t c re dits (pro o f o f re tire me nt wo uld b e re q uire d)  Pa rtne r jurisdic tio n se lls to CA c o mplia nc e e ntity dire c tly  Ne ste d c re diting , in whic h individua l pro je c ts within the jurisdic tio n a re e lig ib le fo r c re diting  Pa rtne r jurisdic tio n issue s c re dits, b ut dire c tly to ne ste d pro je c t within jurisdic tio n o ffse t tra c king re g istry  Ne ste d pro je c t se lls dire c tly to CA c o mplia nc e e ntity, a nd the n se e ks to tra nsitio n to ARB se c to r-b a se d o ffse t c re dits (pro o f o f re tire me nt wo uld b e re q uire d) 10

Cre diting Pa thwa y (Co nt.)  Curre nt sta ff thinking :  F o c us o n jurisdic tio na l c re diting fo r no w, a nd c o ntinue e va lua ting ro le o f ne ste d-pro je c t c re diting fo r po te ntia l future rule ma king  Se e king input o n:  Sho uld ARB o nly c o nside r jurisdic tio n-le ve l c re diting ?  I f ne ste d pro je c t-le ve l c re diting is c o nside re d, wha t c rite ria wo uld ne e d to b e me t?  Pro je c t-spe c ific mo nito ring , re po rting , a nd ve rific a tio n re q uire me nts?  Pro je c t-spe c ific so c ia l a nd e nviro nme nta l sa fe g ua rds?  Othe r c rite ria ?  Ho w c o uld a pha se d a ppro a c h wo rk?  1st rule ma king a llo w o nly jurisdic tio n-le ve l c re diting  L a te r rule ma king c o uld inc o rpo ra te ne ste d pro je c t c re diting 11

12 Que stio ns?

13 Cre diting Ba se line e ve l & Re fe re nc e L

Re fe re nc e L e ve l  R e ve l me a ns “the q ua ntity o f GHG e missio n e fe r e nc e L e q uiva le nts tha t ha ve o c c urre d during the no rma l c o urse o f b usine ss o r a c tivitie s during a de sig na te d pe rio d o f time within the b o unda rie s o f a de fine d se c to r a nd a de fine d jurisdic tio n.”  Sta ff’ s c ur e nt thinking is tha t this wo uld tra nsla te into a histo ric r a nnua l e missio ns e stima te a ve ra g e d o ve r 10 c o nse c utive ye a rs. 14

Re fe re nc e L e ve l  F o r e xa mple , a jurisdic tio n c o uld ha ve a re fe re nc e le ve l o f 496 m 2 b a se d o n me a sure d de fo re sta tio n e missio ns fro m 2001-2010. K  A re fe re nc e le ve l se rve s a s a pro xy fo r e missio ns tha t wo uld ha ve o c c urre d with no jurisdic tio na l pro g ra m unde r a BAU sc e na rio . I t ta ke s into a c c o unt le g a l c o nstra ints a nd imple me nta tio n o f pla ns imple me nte d during tha t time -pe rio d. 15

Re fe re nc e L e ve l Annual Deforestation Year Deforestation (Km2) 2001 419 2002 883 2003 1078 2004 728 2005 592 2006 398 2007 184 2008 254 2009 167 2010 259 Total 4962 Average deforestation AD = 4,962/10 496 Co nve rt km 2 to ha : 496 km2 x 100 = 49600 • • a ve ra g e c a rb o n sto c k o f the sta te / pro vinc e = 123 MT / ha • 49,600 x 123 = 6,100,800 ha • C/ CO2 Co nve rsio n fa c to r: 3.667 • = 22,400,000 MtCO 2 16