Economics of small-scale forest carbon projects in South Sumatra, Indonesia

The Clean Development Mechanism provides opportunities for land rehabilitation of degraded lands through afforestation and reforestation project activities in the effort to mitigate climate change. This study was conducted in a Pulai (Alstonia) plantation developed by PT. Xylo Indah Pratama, in Sout...

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Autor principal: Guillermo, I.A.
Formato: Libro
Lenguaje:Inglés
Publicado: University of the Philippines 2004
Materias:
Acceso en línea:https://hdl.handle.net/10568/19003
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author Guillermo, I.A.
author_browse Guillermo, I.A.
author_facet Guillermo, I.A.
author_sort Guillermo, I.A.
collection Repository of Agricultural Research Outputs (CGSpace)
description The Clean Development Mechanism provides opportunities for land rehabilitation of degraded lands through afforestation and reforestation project activities in the effort to mitigate climate change. This study was conducted in a Pulai (Alstonia) plantation developed by PT. Xylo Indah Pratama, in South Sumatra, Indonesia, in partnership with more than 1,749 smallholders of private lands. The actual costs incurred in plantation development were used to estimate the potential cost of forest carbon projects in the same area. The existing plantation is not eligible as a sink project under the current rules of the CDM. However, results show potential for new groups of smallholders to be eligible. Under the same rules mentioned, a project with a size of 104 ha to 250 ha would cost $3,121/ha to $1,254/ha respectively, and can produce 130 tC (476 tCERs) after a 10-year crediting period. In order to attract farmers/smallholders of land in Musi Rawis to plant trees to help in climate change mitigation in small-scale, carbon must be sold at $62/t. The project will still be feasible, or be able to absorb the huge amount of fixed costs, at the minimum size of 104 ha. The cost of production per ha of a 10,000-ha project is $571 with a unit cost of $3.98/tC. The suitable market price is $17/tC to attract farmers to plant trees for climate change mitigation purposes if operated on a large-scale. The results further imply that if C is bought at the current market price of $10/tC, forest carbon projects will not be able to compete with other land-uses that provide better socio-economic benefits. Therefore, credits earned by low-income communities in particular should be considered as “additional incentive”.
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spelling CGSpace190032025-01-24T14:12:50Z Economics of small-scale forest carbon projects in South Sumatra, Indonesia Guillermo, I.A. economic analysis carbon clean development mechanism projects costs forest plantations small farms credit incentives The Clean Development Mechanism provides opportunities for land rehabilitation of degraded lands through afforestation and reforestation project activities in the effort to mitigate climate change. This study was conducted in a Pulai (Alstonia) plantation developed by PT. Xylo Indah Pratama, in South Sumatra, Indonesia, in partnership with more than 1,749 smallholders of private lands. The actual costs incurred in plantation development were used to estimate the potential cost of forest carbon projects in the same area. The existing plantation is not eligible as a sink project under the current rules of the CDM. However, results show potential for new groups of smallholders to be eligible. Under the same rules mentioned, a project with a size of 104 ha to 250 ha would cost $3,121/ha to $1,254/ha respectively, and can produce 130 tC (476 tCERs) after a 10-year crediting period. In order to attract farmers/smallholders of land in Musi Rawis to plant trees to help in climate change mitigation in small-scale, carbon must be sold at $62/t. The project will still be feasible, or be able to absorb the huge amount of fixed costs, at the minimum size of 104 ha. The cost of production per ha of a 10,000-ha project is $571 with a unit cost of $3.98/tC. The suitable market price is $17/tC to attract farmers to plant trees for climate change mitigation purposes if operated on a large-scale. The results further imply that if C is bought at the current market price of $10/tC, forest carbon projects will not be able to compete with other land-uses that provide better socio-economic benefits. Therefore, credits earned by low-income communities in particular should be considered as “additional incentive”. 2004 2012-06-04T09:09:02Z 2012-06-04T09:09:02Z Book https://hdl.handle.net/10568/19003 en University of the Philippines Guillermo, I.A. 2004. Economics of small-scale forest carbon projects in South Sumatra, Indonesia . Los Banos, Philippines, University of the Philippines Los Banos. 96p.
spellingShingle economic analysis
carbon
clean development mechanism
projects
costs
forest plantations
small farms
credit
incentives
Guillermo, I.A.
Economics of small-scale forest carbon projects in South Sumatra, Indonesia
title Economics of small-scale forest carbon projects in South Sumatra, Indonesia
title_full Economics of small-scale forest carbon projects in South Sumatra, Indonesia
title_fullStr Economics of small-scale forest carbon projects in South Sumatra, Indonesia
title_full_unstemmed Economics of small-scale forest carbon projects in South Sumatra, Indonesia
title_short Economics of small-scale forest carbon projects in South Sumatra, Indonesia
title_sort economics of small scale forest carbon projects in south sumatra indonesia
topic economic analysis
carbon
clean development mechanism
projects
costs
forest plantations
small farms
credit
incentives
url https://hdl.handle.net/10568/19003
work_keys_str_mv AT guillermoia economicsofsmallscaleforestcarbonprojectsinsouthsumatraindonesia