Methodology for calculating carbon credits for forest projects involving the conversion from conventional to reduced-impact logging

Author(s)

Thales Augusto Pupo West

• Document type: Master's Dissertation
• Press: Piracicaba.
• Institution: Universidade de São Paulo (USP). Escola Superior de Agricultura Luiz de Queiroz (ESALA/BC)
• Defense date: 2011-12-19

Examining board members

Edson José Vidal da Silva; Hilton Thadeu Zarate do Couto; Enrique Ortega Rodriguez

• Advisor: Edson José Vidal da Silva

Abstract

Growing concerns over global climate change led to the development of market mechanisms that financially compensate additional retention or sequestration of greenhouse gases (GHGs). While under the Kyoto Protocol only forest activities related to afforestation and reforestation are eligible for compensation, maturation of voluntary carbon markets led to schemes such as the Verified Carbon Standard (VCS) to accept other sorts of forest-based offsets, such as the conversion from conventional logging (CL) to reduced-impact logging (RIL). It is anticipated that this sort of activity will also be included in the scope of the future REDD+ program (reduced emissions from deforestation and forest degradation plus the carbon sequestration benefits of improved forest management). Carbon dynamics over a16 year period after CL and RIL in Paragominas, Pará State, Brazil was assessed. The observed and estimated mean annual increments in carbon stocks after RIL were 12.30 Mg C ha-1 yr-1 and 13.01 Mg C ha-1 yr-1. After CL, in contrast, the annual increments in carbon stocks (observed and estimated) were only 5.42 Mg Cha-1 yr-1 and 5.43 Mg C ha-1 yr-1, respectively. The amount of carbon credits estimated for the project involving the conversion from CL to RIL was 61.81 VCUs ha-1. Assuming buffer credits of 15%, tradable carbon was reduced to 52.54 VCUs ha-1. The economic analysis performed, considering different scenarios involving the project area (500; 1,000; 5,000 and 10,000 ha) and carbon credit prices (USD 5.00; USD 7.00 and USD 10.00 unit-1), resulted in an array of results where only projects >1,000 ha would likely be economically viable. Finally, the minimum estimated carbon credit price that would imply in no financial loss to loggers by delaying the start of the second cutting cycle, that is, the, time required for the live carbon stocks to reach their pre-logging values, was USD 5.33 per unit, which is within the range of prices observed on the current carbon market. (AU)

• FAPESP's process: 09/13277-5 - METHODOLOGY FOR CARBON OFFSET PROJECTS INVOLVING THE CONVERSION FROM CONVENTIONAL LOGGING TO FOREST MANAGEMENT WITH REDUCED IMPACT LOGGING.
• Grantee: Thales Augusto Pupo West
• Support Opportunities: Scholarships in Brazil - Master