Alternative financing model for sustainable
forest management in San Nicolás –
Second Phase: Non-Kyoto rehabilitation areas
Colombia
CORNARE, EMPA and the Valle de San Nicolas community developed
a pilot project “Alternative Financing Model for Sustainable Forest Management
in San Nicolas” in the San Nicolas region with the objective of testing
an innovative financing method that combines sustainable management of tropical
forests with the potential that the Kyoto Protocol Clean Development Mechanism
(CDM) offers the forest sector. This first phase focused on the exploration
of the CDM potential for sustainable forest management. The respective carbon
flows and a finance method were determined in order to define the financing
potential of reforestation activities through the sale of Emission Reduction
Certificates (ERCs) derived from the launch of the Kyoto Protocol of the United
Nations Framework Convention on Climate Change (UNFCCC). As a result of this
project a Forest Management Plan was designed jointly with the community, which
includes eligible activities within the Clean Development Mechanism (CDM) and
others of equal importance for the region but which are not eligible under the
CDM (e.g. conservation, rehabilitation of forestlands and sustainable use of
non-traditional forest products). These outputs led to the establishment of
the Corporation for Sustainable Development of the San Nicolás Forests
(Corporación pará el Manejo Sostenible de los Bosques de San Nicolás),
that includes public and private sectors as well as representatives of civil
society and the sale structure of the carbon sequestration service through the
sale of ERCs.
The CDM component of the Forest Management Plan was submitted before various
investors. At the moment this component is being validated and registered with
the UNFCCC Secretariat and is being considered within the projects package of
the World Bank's BioCarbon Fund. However, management practices that do not comply
with CDM requirements are left without possibilities of finance via the sale
of carbon credits. In this case, in addition to reducing leakages risks for
the CDM component, such management practices would allow for the sustainable
use of non-timber products, restoration of biological corridors and rehabilitation
of important forest roles. These activities are very important not only because
of their technical potential, but also because the local communities see them
as a necessary alternative to generate new income in the region while lands
considered a conservation priority under land use plans are restored and rehabilitated.
The importance of environmental services, as well as the role of forest restoration,
rehabilitation and conservation in the generation of such services, is a priority
for swiss policy and interventions in international fora and has been recognized
at the international level. However, there is a lack of experience with projects
that allow the articulation of various aspects at the local level (silviculture,
involvement, business ventures, etc.) and emerging global markets for forest
services. This proposal for the second phase goes beyond the creation of finance
instruments and proposes the articulation of the above-mentioned elements in
an actual and concrete restoration and rehabilitation of forestlands and forest
conservation exercise that may be replicated in other regions: The lessons generated
by this project will be used both by other institutions in Colombia and by other
ITTO-members. The expected results and their respective indicators of success
are as follows:
Connection of natural corridors in the region has been completed. Indicator
of success: Area of forests connected (hectares).
Sustainable management practices targeted at the extraction of timber and
non-timber forest products for further commercialization have been made possible.
Indicator: Number of identified the species with potential in local, regional
or international markets.
Communities trained in strategic areas for the implementation of a management
plan. Indicator: Number of implemented training units for the projects agreed
in the forest management plan on the basis of training workshops; Number of
community groups established for the sustainable management of forests.
Proposal of a regional legal framework promoting restoration and rehabilitation
of forestlands and sustainable forest management submitted to competent authorities
and approved. Indicator: Supporting legal documents approved.
Financial instruments for the payment of environmental services provided
by conservation, restoration and rehabilitation forestlands have been developed.
Indicators: Value of each service provided; instruments designed and quantified;
which investors have been contacted; monitoring plan accepted/validated.
The project is innovative as far as the trade of forest services is concerned.
It seeks to find mechanisms of trading carbon credits as a means of supporting
sustainable forest management and delivering benefits to local communities.
It will also contribute to expansion of trade possibilities through research
on silviculture and use of new species, and trade of new products.
Implementing agency
Regional Autonomous Corporation of Rionegro-Nare CORNARE in cooperation
with the Swiss Federal Institute for Materials and Technology Research
and Testing (EMPA)
In its November 2008 Session, the Committee on Reforestation
and Forest Management took note that while most of the project's activities
are progressing satisfactorily, some have suffered delays, particularly
those related to the development of a legal framework, due mainly to the
unforeseen difficulties stemming from the unconstitutionality of the new
Forestry Law 1021. As such, the Executing Agency has applied for an extension
in time until July 2009 without additional funds, in order to successfully
complete the project and further submitted a formal request and a justification
for the aforementioned extension in time, together with the required budget
amendments and an updated Yearly Plan of operations in order to successfully
complete the project's activities, to the Secretariat.
The Secretariat reviewed the corresponding documents
and considered these to be justified. In this light, the Committee endorsed
an extension of the project until the end of July 2009, without additional
funds, as per the written request and justification, including an updated
Yearly Plan of Operations and budgetary modifications, submitted by the
Executing Agency. In addition, the Committee further took note of the
Executing Agency detailed account of the project's accomplishments to
date at this Session of the Committee.
December 2007
In accordance with the two most recent
progress reports submitted in February and August 2007, and the Project
Steering Committee meeting held in June 2007, progress in project implementation
can be summarized by major outputs as follows:
1. Establish connectivity between the biological
corridors in the region
An evaluation of the biotic connectivity as a function
of the level of forest degradation is currently was carrried out in
collaboration with the University of Medellin in order to determine
the priority areas for forest landscape restoration;
The design and biophysical and social characterization
of a biological corridor between the municipalities of San Vicente and
Guarne has been finalized in collaboration with the Catholic University
of the Orient;
A diagnostic study on the populations and inventory
of some species in danger of extinction in the Antioquian Highlands
and protocols for their propagation has been finalized;
Several research plots have been established as a basis
for forest landscape restoration in the region; and
The rehabilitation of degraded areas has been delayed
due to the unforeseen difficulty in finding seeds of the required native
species. However, at the onset of 2007 temporary communal nurseries
were set up in the municipalities of El Retiro, Guarne and San Vicente
and to date 245 ha have been rehabilitated.
2. Sustainable forest management practices in place
for harvesting timber and non-timber products
The diversity of non-timber
forest products has been researched; and
Sustainable use and management
practice trials of some specific products were carried out.
3. Communities trained in the implementation of
forest management plans and businesses
Communities have been trained in harvesting, processing
and commercializing specific NTFPs.
4. Regional legal framework structured so as to
promote the rehabilitation of degraded forests
The two activities related to this output have been affected
by the new forestry Law 1021 and the project is awaiting the related norms
so as to proceed.
5. Financial instruments for the payment of environmental
services in place
A report on the quantification and valorization of environmental
services to design and improve financial mechanisms was drafted;
A report on marketing the environmental services for
the San Nicolas Valley was finalized; and
The project has signed a contract with the World Bank
for the sale of 120,000 tons of CO2 from the reforestation activities
that are about to start, and 98,000 tons of CO2 from already existing
forests. In addition, it has also received US$ 498,000 from the bank
to fund activities such as the research and production of extinction–threatened
species used by the project.
While most of the project’s activities are progressing
satisfactorily, some have suffered delays, particularly those related
to the development of a legal framework, due mainly to the entry into
force of the new Forestry Law 1021. As such, the Executing Agency was
accorded an extension in time until December 2008 without additional funds.
