Climate Change and Forests: Emerging Policy and Market Opportunities

Case Study: The Humbo Community-Based Natural Regeneration Project, Ethiopia

The Humbo Community-Based Natural Regeneration Project offers an opportunity to combine natural resource management, carbon sequestration, biodiversity , and poverty alleviation. The project is seeking registration as a CDM project activity. In 2005 the World Bank’s Biocarbon Fund indicated interest in purchasing the carbon offsets generated by the project, which was developed and is being implemented by World Vision Ethiopia and Australia (WV), a humanitarian development organization, with the support of the government of Ethiopia. Following is a summary of the project and the key lessons learned to date. Project activities include the restoration of indigenous, biodiverse forest species to a mountainous region of southwestern Ethiopia. These activities complement the natural resource management goals of the Ethiopian Ministry of Agricultural and Rural Development. The project offers significant social development outcomes in line with the goals of the government of Ethiopia and project proponent World Vision. It is expected that the project will sequester approximately 165,000 metric tons of atmospheric carbon dioxide by 2017 through the reforestation of 2,728 hectares of steep mountainside terrain that contribute to spring water recharge. The area has remained in its cleared state for more than two decades, and as a result, mudslides, floods, and erosion are common occurrences. Core project goals include carbon sequestration, biodiversity protection and enrichment, income generation, protection and increased recharge of drinking water supplies, and improved livelihoods for current land users. Seven cooperacase study The Humbo Community-Based Natural Regeneration Project, Ethiopia paul dettmann, tony rinaudo, and assefa tofu 86 tives have been established as nonprofit entities and have received land-use rights. All proceeds from carbon sales will be directed to projects benefiting all community members, such as projects in education, health, and agriculture, in accordance with group by-laws and constitutions. Lessons learned from developing this CDM carbon sequestration project include the following. First, investment in advocacy and capacity-building is required. When this project concept was first proposed, the government of Ethiopia had not ratified the Kyoto Protocol and there were no CDM projects in Ethiopia. Significant time was required to sensitize potential stakeholders to the issues and opportunities associated with carbon projects. This CDM capacitybuilding for key stakeholders and government agencies will benefit other carbon projects currently being prepared and implemented in Ethiopia. Second, small projects are costly to develop, implement, and manage. This project would be more cost-effective if it were larger; 20,000 hectares would be ideal. Under the current CDM framework, project development costs are substantial. As a result, small and medium-size projects (fewer than 5,000 hectares) without additional revenue streams (for example, from agroforestry, nontimber products, or tree crops) find it difficult to generate workable economies of scale. A conservative but simplified CDM methodology and monitoring process, if possible using remote sensing, would facilitate the replication of afforestation-reforestation (AR) projects. Implementation of many smaller projects with greater community ownership , by applying a more programmatic approach, might then also become feasible . In turn, the nonpermanence risk associated with AR projects would be spread over a larger number of communities and a greater geographical range. Third, an existing strong working relationship between the implementing agency and the community facilitates project implementation. WV has more than 1,200 staff members working in some sixty-four area development programs in Ethiopia and has worked in the Humbo region for eighteen years. Experience in providing development assistance in health, agriculture, emergency relief, education , and community empowerment has given WV considerable understanding of local needs and earned it respect as a development partner from both the community and the local government. Difficulties experienced during implementation could have derailed the project had it not been for the strong relationships in place. Land-use and ownership issues are volatile topics in Ethiopia, and there is suspicion of anyone who proposes changes to the status quo. The overriding response to surveys on the potential role of WV in developing this project was one of strong endorsement based on the trust relationship that had been built over time. Additionally, the establishment of community use and ownership rights through these types of projects can be a substantial contribution in itself. Fourth, afforestation projects can provide multiple benefits beyond carbon sequestration, and these should be recognized and rewarded. AR projects offer case study: ethiopia 87 many services in addition to carbon sequestration, including the protection and management of...