Low Income Community Mangrove Reforestation Project in Fiji

Global Environment Centre Foundation(GEC)

Reports of CDM/JI Feasibility Studies

Title of the researchLow Income Community Mangrove Reforestation Project in Fiji
FYFY 2006
Main research orgnisationTaishi Design Office Co. Ltd
Research partner(s)Pacific Consultants co. ltd,Peace International Association Fiji,Pacific Rim Cultural and Educational Exchange Foundation
Location of the projectFiji (Viti Levu)
Summary of the research report (PDF)Summary(PDF 354 KB)
Description of the projectThis project will be conducted at the coastal region near Lomawai village, south west of Viti Levu island, Fiji’s main island where erosion is progressing. Its objective is to conserve the environment by replanting mangroves. The expected area subject to plantation is 250 ha, and estimated amount of CO2 removal during the 30 years period for this project is 100,892 tons.
Moreover, there will be a park built accessible for ecotourism in the area in which mangrove plantation will be conducted, and low income class communities in host countries will become subjects for management. The targeted site for project will allow the scheme to develop which will contribute socioeconomically, such as creation of employment and stimulating the economy, and aim at increasing incentive towards continual preservation.
Sector of the projectAfforestation/Reforestation
Duration of the project activity/ crediting period30years/
Baseline methodology/additionalityIn this project activity, since net anthropogenic GHG removals by sinks are less than 8,000 t CO2/year, project design document will be developed in line with small-scale AR CDM project.
In the project activity, baseline net GHG removals by sinks are assumed to be zero. The project sites for the project activity have no vegetation and there would be no significant change of carbon pools as they had been constant over the decades.
The reforestation of mangroves would not occur in the absence of the proposed small-scale A/R CDM project activity because of the following reasons:

1) In the project area, there is no custom to plant mangroves. There would be customary barrier in terms of planting mangroves which no body in the area has done. At the same time, local people do not have knowledge for regeneration of mangrove forest.
2) There would be financial barrier to start the project activity. Planting mangroves would cost labor, time and money to the local people who live off subsistence economy. The local people would not have difficulty in obtaining loans for project activity which would not give them enough return to pay back the interest rates.
3) In addition, the Lomawai village is not connected to the grid system and most people engage in fishery and agriculture and would not be able to afford spending time and labor to planting mangroves which would not give them direct benefits in the short term.

For the small-scale A/R CDM project activity, project participants need to demonstrate that the project activity faces one barrier out of barriers listed in the Attachment B. Above barriers would satisfy the demonstration of additionality.
Without incentives to gain income from sales of lCERs, it would be impossible to implement project activity.
Estimation of GHG emissionsNet anthropogenic GHG removals can be derived from the formula below.〔Net anthropogenic GHG removals = actual net GHG removals by sinks– baseline net GHG removals – leakage〕
100,892 - 0 - 0 = 100,892 tCO2 (30 years)
The annual net anthropogenic GHG removals 3,363 tCO2/year.
Monitoring methodology<Ex post estimation of the actual net GHG removals by sinks>
Before performing the sampling to determine any changes in carbon stocks, project participants need to measure and monitor the area that has been planted. This can be performed through, for example, on-site visits, analysis of cadastral information, aerial photographs or satellite imagery of adequate resolution.

Once project participants have selected the method to monitor the area that has been planted, this method should be used to monitor the performance of the planted areas throughout the project activity. If significant underperformance is detected, changes in carbon stock from such areas shall be assessed as a separate stratum.

Carbon stocks shall be estimated through stratified random sampling procedures and the following equations:
P(t) = Σ((PA(t) i + PB(t) i) * Ai)
P(t) = Carbon stocks within the project boundary at time “t” achieved by the project activity (ton C)
PA(t) i = Carbon stocks in aboveground biomass at time “t” of stratum i achieved by the project activity during the monitoring interval (ton C/ha)
PB(t) i = Carbon stocks in belowground biomass at time “t” of stratum i achieved by the project activity during the monitoring interval (ton C/ha)
Ai = Project activity area of stratum i (ha)
GHG emissions from desiccation of soil shall be estimated through the following equations:
PE(t) =(EFdrain_C*44/12+EFdrain_N*(44/28)*310/1000)*Adrain(t)
PE(t) = GHG emissions from desiccation of soil at time t by the project activity (t CO2-e/yr)
EFdrain_C= C emission from desiccation of soil (t-C/ha/yr)
EFdrain_N= N emission as N2O from desiccation of soil (kg-N2O-N/ha/yr)
Adrain(t) = Desiccated project activity area at time t under the project scenario (ha)
Environmental impact(1) Preservation of coastal ecosystem (suitable supply of organic carbon), (2) The facilitatory effect of suspended particle subsidence in water due to mangrove root system (coral reef conservation effect), (3) purification of water quality and/or conservation effect due to removal of nutrient salts(phosphorous/nitrogen), (4) coastal conservation effect to erosion by waves, (5) prevention of soil erosion due to sea level rise (sediment deposition effect and/or breakwater effect)
Issues and tasks for project implementation<Profitability(IRR)>
Revenue source(Credit)
Revenue source
(Credit and Eco-tourism)

<Assessment of profitability>
Basis of investment judgment:(1) IRR is 10% or more.(2) IRR is more than "Ten year averages of the London Inter-Bank Offered Rate +2 %".(source/Business assessment by Sink-CDM investment model(JIFPRO 2005)
Revenue source(Credit)
Revenue source
(Credit and Eco-tourism)
(1) IRR10%
9.9 US$/t-CO2
5.2 US$/t-CO2
(2) IRR6.7%
7.4 US$/t-CO2
2.9 US$/t-CO2

<Cost-effectiveness>cost of CO2 1t reduction
4.3 US$/t-CO2
SS AR-CDM with Eco - tourism as supplementation plan
28.7 US$/t-CO2