INTERNATIONAL TROPICAL TIMBER ORGANISATION ITTO

PROJECT COMPLETION REPORT

PD 337/05 Rev. 3 (F)

“INTERNATIONAL WORKSHOP ON CLEAN DEVELOPMENT MECHANISM – OPPORTUNITIES AND CHALLENGES FOR THE FOREST INDUSTRY SECTOR IN SUB-SAHARAN TROPICAL AFRICA”

ACCRA, GHANA

FUNDING AGENCIES

Project Identification

Title: “International Workshop On Clean Development Mechanism – Opportunities And Challenges For The Forest Industry Sector In Sub-Saharan Tropical Africa”

Serial Number: PD 337/05 Rev. 3 (F)

Executing Agency: Forestry Commission

Host Government: Government of Ghana

Starting Date: March 2006

Actual Duration (Months): Fourteen Months

Actual Project Costs (US $): 279,160.00

1 TABLE OF CONTENTS

PART I: EXECUTIVE SUMMARY ...... 3 1.0 Background Information ...... 3 1.1 Specific Objective And Outputs ...... 4 1.2 Project Duration And Overall Cost ...... 5 2.0 Project Achievements ...... 5 2.1 Outputs Achieved ...... 5 2.2 Specific Objective(s) Achieved ...... 7 2.3 Contribution to the Achievement of the Development Objective ...... 7 2.4 Situation after Project Completion ...... 7 3.0 Lessons Learned ...... 8 3.1 Operational Lessons ...... 8 3.2 Post-workshop Lessons ...... 8 4.0 Recommendations ...... 8 PART II: MAIN TEXT ...... 9 1.0 Project (Workshop) Results ...... 9 1.1 Workshop Results ...... 9 1.2 Workshop Conclusion and Recommendation ...... 10 1.3 Pre-Project Situation ...... 12 1.4 Post-workshop Situation ...... 12 1.5 Project Sustainability after Project Completion ...... 13 2.0 SYNTHESIS OF THE ANALYSIS ...... 13 PART III: CONCLUSIONS AND RECOMMENDATIONS ...... 14 3.0 Conclusions ...... 14 3.1 Recommendations for future Projects ...... 14

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PART I: EXECUTIVE SUMMARY

1.0 Background Information The Kyoto Protocol signed in 1997 provides opportunities for the forest and wood products industries to make a significant contribution to the mitigation of global warming because of the ability of sustainably managed forests and plantations to sequester large quantities of atmospheric carbon.

The Clean Development Mechanism (CDM) involving joint activities between Annex 1 parties (developed countries) and non-Annex 1 parties (mainly developing countries) provides one of cost-effective mechanisms for Annex 1 parties to meet their obligations under the Kyoto Protocol.

For the purposes of the Workshop, CDM is defined as outlined in Article 12 of the Kyoto Protocol i.e. a project-based mechanism that allows public and private entities to invest in greenhouse gas (GHG) mitigating activities in developing countries and earn abatement credits, which can be applied against their own GHG emissions or sold on the open market. In addition to reducing emissions, CDM projects have the dual objective of contributing to the sustainable development of the host country.

Although Africa’s forest and wood products industry sector can make a significant contribution through mitigating global warming, very little activity has taken place on the continent to explore this potential. Indeed, Africa is the only continent where there are currently no CDM projects. In November 2005, the International Tropical Timber Council (ITTC) approved and financed Project PD 337/05 Rev.3 (F), submitted by the Government of Ghana to be executed by the Ghana Forestry Commission (GFC) on organizing an international workshop on Clean Development Mechanism – Opportunities and Challenges for the Forest Industry Sector in Sub-Saharan Tropical Africa.

The CDM workshop took place in Ghana, from the 2nd to 5th of October 2006, at Cresta Royale Hotel, Motorway Extension, North Dzorwulu, Accra – Ghana.

The Workshop was organized under the auspices of the International Tropical Timber Organisation (ITTO) with funding from the Swiss, Finnish and Ghana Governments and the Common Fund for Commodities (CFC) with the Forestry Commission as the Executing Agency.

Fifty (50) delegates were invited as participants to attend the CDM Workshop. The invited delegates were from ten (10) ITTO member countries in Africa and twenty- nine (29) CFC African member countries. Two (2) delegates each from ITTO member countries [one (1) forestry and one (1) from Designated National Authority

3 (DNA)] and one (1) delegate from each CFC African member country were invited to attend the workshop.

Invited International Speakers who are experienced in CDM programmes were invited to make presentations on various topics at the workshop.

1.1 Specific Objective And Outputs

.The specific objectives of the CDM Workshop Project among others were to:  create awareness in Clean Development Mechanism opportunities for Africa  identify current trends and potential impacts of carbon forestry on the global forest sector, with an emphasis on Sub-Saharan African tropical timber producing countries;  explore opportunities and challenges for the effective participation of Sub- Saharan African tropical timber producing countries in CDM projects and other carbon forestry activities;  develop carbon accounting models for sub-Saharan African tropical forest ecosystems and other carbon credits verification and certification systems;  explore the potential for establishing carbon emissions trading markets for Africa; and  consider emerging issues such as reducing carbon emissions from deforestation.

The major outcome expected from the Workshop was to create awareness for CDM projects in Africa, as well as an analysis and understanding of the opportunities and challenges for the effective participation of Sub-Saharan African tropical timber producing countries in CDM projects and carbon forestry activities, including building appropriate capacity and strategic alliances with energy producing and ethical investment companies in northern countries.

The project had two specific outputs which is as follows:

1. Output 1: Planning and organising the International Workshop on Climate Change – Opportunities for the forest and wood products industries in tropical Sub-Saharan Africa

2. Output 2: Prepare and disseminate workshop proceedings

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1.2 Project Duration And Overall Cost

The planned duration of the project was 14 months (1 year 2months). The project overall cost was US $279,160. ITTO contributed an amount of US $179,160.00 (United States dollars one hundred and seventy-nine thousand one hundred and sixty only) being 64.18% of the total cost. CFC the second major contributor provided US$100,000.00 (United States dollars one hundred thousand only) being 35.82% of the total cost.

The government of Ghana provided US$14,875.00 (United States fourteen thousand hundred and seventy-five only) in the form of project personnel, office accommodation and utilities to support the project.

2.0 Project Achievements

The project made significant achievements toward the realisation of the project objectives. Among the achievements are the following;

2.1 Outputs Achieved

Output 1: Planning And Organising The International Workshop All the activities under output 1 have been completed which led to the establishment of a Project Steering Committee, the appointment of Consultants for the workshop and development of the workshop programme.

Keynote speakers and other presenters were identified and invited to submit Papers for review prior to the workshop. Under this output, a Website was created for the workshop under the name www.carbontradinginafrica.com . The venue for the workshop was selected after negotiating with various hotels in Accra which was posted on website. This was followed by inviting delegates for the workshop and the making of appropriate travel arrangements through a Travel Agency.

The National Designated Authority in Ghana i.e. Environmental Protection Agency (EPA) was invited to be present at the Project Sub-committee meetings.

Selection of field sites was completed with the Assistance of Forestry Research Institute of Ghana (FORIG) and also the appropriate local contractors to assist in various aspects of organising the workshop were identified and their contracts signed.

5 Below is the summary of activities executed under output 1: Activities Percentage Completion Executed Date OUTPUT 1: Planning And Organising The International Workshop

Activity 1.1 100 March 2006 Establish a Project Steering Committee for the Workshop

100 March 2006 Activity 1.2 Appoint consultants for the Workshop

100 May 2006 Activity 1.3 Finalise and Circulate Notification and Provisional Workshop Programme

100 August 2006 Activity 1.4 Identify and Approach Keynote and Plenary Speakers

Activity 1.5 100 August 2006 Invite and Review Papers from Keynote Speakers and other Presenters

Activity 1.6 100 August 2006 Create a website for the Workshop

Activity 1.7 100 October 2006 Workshop Organisation Activity 1.8 100 2nd -5th October Hold the International Workshop 2006 Activity 1.9 100 October 2006 Field Visits by Delegates

Output 2: Prepare And Disseminate Workshop Proceedings Activities under this output are: 1. Activity 2.1 - Workshop Evaluation by Participants 2. Activity 2.2 - Edit and Publish Workshop Proceedings 3. Activity 2.3 - Disseminate the Workshop Proceedings and 4. Activity 2.4 - Promote and Maintain an Internet Homepage for African CDM Forestry Activities.

The EA sent an Evaluation Form (French and English versions) in May 2007 to all participants that attended the workshop but received two (2) responses from Liberia and Cameroon. A reminder was sent as recommended at the Special Project Monitoring Meeting held on April 27, 2007 in Accra Ghana but no response was received.

Therefore Activity 2.1 - Workshop Evaluation by Participants could not be evaluated appropriately. The Workshop Proceedings have been edited but not published and therefore could not be disseminated making Activity 2.2 and Activity 2.3 incomplete.

6 The Workshop Internet website was transferred to and kept by Dr. Kwame Asumadu after April 2007 as agreed at the second project steering committee meeting held on Thursday, October 5, 2006 in Accra Ghana.

Below is the summary of activities executed under output 2: Activities Percentage Completion Executed Date OUTPUT 2: Prepare And Disseminate Workshop Proceedings

Activity 2.1 5 Discarded Workshop Evaluation by Participants

Activity 2.2 100 April 2008 Edit Workshop Proceedings

Activity 2.3 0 May 2008 Publish and Disseminate the Workshop Proceedings

Activity 2.4 100 February 2007 Promote and Maintain an Internet Homepage for African CDM Forestry Activities

2.2 Specific Objective(s) Achieved The project overall specific objective, which was to create awareness for CDM projects in Africa, as well as an analysis and understanding of the opportunities and challenges for the effective participation of Sub-Saharan African tropical timber producing countries in CDM projects and carbon forestry activities, was achieved to a greater extent.

However, the objective of building appropriate capacity and strategic alliances with energy producing and ethical investment companies in northern countries has not been realised.

2.3 Contribution to the Achievement of the Development Objective The conclusions and recommendations of the workshop raised a lot of issues and questions that need to be addressed and pursued for strategic options to be taken regarding development of CDM projects in Africa. The workshop recommendations were produced on CD ROM which was made available to participants during the workshop.

2.4 Situation after Project Completion The situation after project completion was difficult to assess since evaluation of the Workshop was unsuccessful. The evaluation was done after participants had returned to their home countries. An evaluation form (both in French and English) was sent to all participants by email but only two responded. The second attempt also yielded no response from participants.

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3.0 Lessons Learned Some lessons were learnt during project implementation. Among the lessons learnt are the following:

3.1 Operational Lessons

Workshop Evaluation Evaluation of the project was done through an evaluation form (French and English). The forms were sent electronically by email to all participants after they had left to their home countries but received only two responded.

The evaluation of the workshop should have been the last item on the agenda before closing the workshop. This would have yielded much response to enable the project organizers evaluate the workshop.

3.2 Post-workshop Lessons Abstracts from Presenters and Speakers should have been requested for and collated prior to or during the workshop to avoid delays in putting the workshop proceedings together.

4.0 Recommendations

To improve the effectiveness and efficiency of future projects the project staff recommends the following:

 Honorarium should be tied to submission of report to ensure early completion of work.

 Executing institution should mobilize funds to prefinance activities to forestall slow down of project activities due to unavailability of funds.

 ITTO should expedite release of funds to forestall delay in execution of project activities.

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PART II: MAIN TEXT

1.0 Project (Workshop) Results

1.1 Workshop Results A four-day intensive programme was used for the workshop (see Appendix D for detailed Workshop Programme). Participants were initially welcomed by the Honourable Deputy Minister for Lands, Forestry & Mines (MLFM). In addition the participants were addressed by representatives of the funding Agencies including: . International Tropical Timber Organisation (ITTO) . Food and Agriculture Organisation (FAO) . Common Fund for Commodities (CFC) . SECO

The workshop programme had three (3) sessions. The first, second and half-day of the third days were used for PowerPoint presentations by the invited Speakers.

On the second half of the third day, participants were grouped into six working groups to brainstorm and identify financial, legal and administrative constraints for developing CDM projects in Africa and make recommendations for consideration. This was followed by group presentations on proposed recommendations to the entire plenary session.

The fourth day was used for a field trip to Akosombo in the Eastern Region of Ghana to a proposed CDM site. The purpose of the visit was to familiarize participants with sites that are likely to qualify under the criteria for selection of CDM sites.

Workshop Methodology PowerPoint Presentations with interactive and participatory methods were used throughout the workshop period. Facilitators for the workshop were: 1. Dr. Kwame Asumadu – International Workshop Consultant 2. Dr. Robledo Carmenza - International Workshop Adviser

Worksop Participation Participants were mainly drawn from the International Tropical Timber Organisation (ITTO) member countries in Africa and CFC member countries in Africa. There were in addition observers including NGOs and other representations the private sector.

In all Forty-One (41) delegates from twenty-nine (29) countries participated in the CDM Workshop. Six (6) ITTO and CFC member countries who were invited could not participate in the workshop. These countries are Ethiopia, Gabon, Djibouti, Sierra Leone, Guinea and Madagascar.

9 1.2 Workshop Conclusion and Recommendation

The following are the recommendations from the working groups:

Work Group 1: Policy, Legal And Institutional Constrains To CDM: 1. Multilateral institutions are encouraged to explore options for facilitating the participation of the African francophone communities in the preparation of PDD’s for A/R CDM project activities. This should especially consider the possibility of translating the approved methodologies and tools into French. 2. Promote synergies to other environmental agreements 3. Integrate climate change issues into government policies, laws and framework as well as departmental policies and framework 4. There is the need for awareness creation among relevant institutions and policy makers 5. There should be inter-ministerial coordination (from Presidency) on CDM and climate change issues 6. Where language is a barrier, documents should be translated into French 7. Establishment of expert networks on CDM and Climate change issues 8. There is the need for community involvement in project acceptance 9. Capacity building at the top and at the bottom 10. There should be dedicated personnel for CDM projects. For example two specialist in the Forest Service

Work Group 2: Attracting Investments Into CDM Projects In Africa: 1. European Union is encouraged to consider the inclusion of forestry CERs in EU’s Emissions Trading Scheme post 2012. 2. Multilateral institutions should simplified procedures for accessing funding for the preparation of A/R CDM project activities 3. Efficient national approval systems (DNA) need to be in place or establish them to allow the processing of projects 4. Foster partnership between local CDM project developers and international partners 5. Identify existing projects/programmes in the forestry and land use sector and involve carbon credits (e.g. Cameroon) 6. Prepare guidelines and criteria to attract investors (carbon and financial due diligence) 7. Identify the products of your project and their markets aside from carbon 8. Identify investor conditionality before project investments (investment climate, large areas of land, land tenure, proximity to port) 9. Identify investors that take the higher risks in Africa – overseas and within Africa (e.g. China, Japan, South Africa) 10. Involve financial institutions/banks into production & pricing of CERs as bonds for long-term investments (eg Zimbabwe) 11. Provide technical and financial assistance to prepare CDM projects (eg. CFC) 12. Make financial institutions aware of potential CDM investments based on proper investment offers 13. Establish committees or secretariat to build capacity in CER generation/CDM 14. Target international investors who look out for social commitments to rural development (social corporate sustainability, e.g. Japan)

10 Work Group 3: Capacity Building For Africa In CDM Projects 1. African countries need support in building up capacities in the appropriate use of approved methodologies and other tools with regard of A/R CDM project activities 2. African countries should be better supported to build capacity and to enhance their knowledge in forestry issues in the climate change negotiations especially on reducing emissions from deforestation and forest degradation and afforestation and deforestation in the CDM to ensure that their priorities and needs are addressed. 3. Sufficient training of local staff for increase capacity to formulate A/R CDM projects

Work Group 4: Project Ideas – Formulating CDM Forestry Projects For Africa 1. Multilateral institutions and potential CERs buyers are strongly encouraged to organize a workshop to consider potential project ideas from African countries 2. African countries should address the issue of land tenure and property rights so as to facilitate the investments in Africa, including trade of CERs from forestry projects. 3. Multilateral institutions should jointly explore with national partners the potential that the Programmatic CDM can offer order to facilitate and reduce transaction costs for A/.R CDM projects in Africa. The programmatic CDM allows non-Annex I countries to formulate national level programmes that include CDM activities in specific sectors. 4. Balance community needs/requirements with investor needs 5. Develop capacity for tapping CDM opportunities; technical expertise e.g. carbon/biomass calculations, project design, understanding of procedures etc. 6. Multi-sectoral cooperation e.g. Ministries of Lands, Environment, Forestry, Trade, etc. 7. Platform/network for information sharing on CDM e.g. models, best practice showpiece etc. 8. Production of manuals/guidelines and samples of approved CDM projects in various project activities.

Work Group 5: Reducing Emissions from Deforestation 1. Serious consideration should be given to developing further the concept of “committed forest as carbon reservoir” as well as an appropriated trading mechanism. 2. Raise awareness in Annex-1 countries of their role in providing a ‘market for deforestation’. 3. Introduce international market instruments to modify demand 4. Raise awareness of avoided deforestation concept in non-Annex 1 countries. 5. Promote the development of collaborative resource management regimes that ensure direct benefit at the local level.

Work Group 6: CDM & Poverty Alleviation 1. Simplify modalities and categories to participate in CDM projects 2. Better definition of ownership of CER 3. Poverty Impact Assessment tool/requirement 4. Empowerment of target group

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1.3 Pre-Project Situation There was considerable delay in the implementation of the project due to uncertainty of the in-kind contribution by ADB. The project implementation only started when ITTO recommended the Executing Agency (EA) to proceed with the arrangements based on the approved project document and detailed implementation work plan on 26th June 2006.

There were some delays in receiving responses from the invited delegates from both ITTO member countries and the Designated National Authorities (DNA) for CFC African member countries. Invitation to delegates according to the work plan was scheduled to be sent by the end of June 2006.

ITTO member countries in Africa are ten (10) and CFC African member countries are also twenty-eight (28) in number. Two (2) delegates each from ITTO member countries and one (1) delegate each from DNA of CFC African member countries were expected to attend the workshop.

However, the invitation letters to ITTO member countries were sent on early July, 2006 to all ITTO member countries. The delay was due to inability to have access to the contact details of the ITTO member countries as planned. Out of the ten (10) ITTO member countries in Africa, only Nigeria, Liberia, Ghana Gabon and republic of Congo had responded to the invitation letters by August 10, 2006.

In addressing the situation, Mr. Masupa-Kambale of ITTO, facilitated the contact with non-responsive Francophone countries (Central African Republic, Cameroon, Cote d’Ivoire, Togo and DR Congo).

Invitation letters to DNA of CFC African member countries were sent by courier, fax and email. Responses were received from Angola, Swaziland and Sierra Leone. This was followed up by telephone calls and although unable to get through most of the telephone numbers, some headway was made.

Designated National Authorities delegates from CFC African member countries in Africa were the critical success factor during the international workshop. They form a majority of the participants that was needed for the success of the workshop. In this regard, all efforts were made to contact these national authorities for their representation and participation.

1.4 Post-workshop Situation Professional editing, printing and dissemination of the workshop proceedings delayed considerably due to the:  inability of workshop organisers to collate abstracts from Presenters/ Speakers after the workshop. The workshop proceedings were received in May 2007 relative to completion of the workshop on October 5, 2006.  failure of the Editorial Committee that was put in place by the Project Steering Committee to edit the workshop proceedings.

Negotiations for procuring the services of a professional editor by Swiss Intercooperation of Switzerland started in October 2007 after recommendations from

12 the 4th Project Steering Committee meeting held in October 11, 2007 in Kumasi Ghana, asked the Executing Agency (EA) to contact Dr. R. Carmenza of Swiss Intercooperation to facilitate the process.

Contract for editing of the workshop proceedings between Swiss Intercooperation and the Editor, Dr. Patrick Robinson was signed January in 2008. The editing was completed in February 2008 but could not be sent to the Executing Agency (EA) on time due to gaps in the workshop proceedings that needed to be filled and clarified by the Presenters / Speakers. After unsuccessful attempts from February 2008 to April 2008 by the Editor through Swiss Intercooperation to get the gaps filled by the Presenters / Speakers, the workshop proceedings were then sent to the EA with instructions and recommendations for the way forward.

1.5 Project Sustainability after Project Completion Other follow up activities such as capacity building in developing CDM projects an analysis and understanding of the opportunities and challenges for the effective participation of Sub-Saharan African tropical timber producing countries in CDM projects and carbon forestry activities could not be sustained due to the delays in editing the workshop proceedings.

2.0 SYNTHESIS OF THE ANALYSIS

Item Analysis a. Specific Objective(s) Achievement Realised b. Outputs i. Output 1 Realised ii. Output 2 Not completely Realised (about 50% complete) c. Schedule Realised d. Actual Expenditures Realised e. Potential for Replication Significant potential f. Potential for Scaling-up Significant potential

13 PART III: CONCLUSIONS AND RECOMMENDATIONS

3.0 Conclusions

The project was executed as scheduled in the project document. However, implementation of post project activities exceeded the project deadline.

Issues raised and recommendations made during the workshop should be pursued to enable the project achieve its full impact.

The workshop made significant contribution to the analysis and understanding of the opportunities and challenges for the effective participation of Sub-Saharan African tropical timber producing countries in CDM projects and carbon forestry activities, judging from the recommendations that emanated. a) Development Lessons

The objective of the workshop was appropriate. The participatory nature of the workshop brought an excellent cooperation among all the participants and speakers.

3.1 Recommendations for future Projects

 Recommendations from the workshop shop be vigorously pursued

 Honorarium should be tied to submission of report to ensure early completion of work.

 Project activities should be prefinance by the executing agency to forestall delays in the execution of some of project activities due to unavailability of funds.

 The Unencumbered Fund Balance of $22,165 should be transferred back to the ITTO to enable it pursue the recommendations from the workshop.

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Responsible for the Report

Name: Joe Appiah-Gyapong Position Held: Assistant Project Coordinator

Signature:

Date:

PROJECT PERSONNEL

Name Position Institution Mr. Ben Gyamfi Project Coordinator FC Mr. Joe Appiah-Gyapong Assistant Project Coordinator FC

EXECUTING INSTITUTION Forestry Commission (FC)

P. O. Box 434 Accra TEL: 233-21 7010033 FAX: 233- E-Mail: [email protected]

COLLABORATING INSTITUTION

Forestry Research Institute of Ghana

Environmental protection Agency

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