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Local Sustainable Development Effects of Forest Carbon Projects in Brazil and Bolivia

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Local Sustainable Development Effects of Forest Carbon Projects in Brazil and Bolivia Local sustainable development effects of forest carbon projects in Brazil and Bolivia A view from the field Peter H May Emily Boyd Fernando Veiga Manyu Chang ENVIRONMENTAL ECONOMICS PROGRAMME January 2004 International Institute for Environment and Development (IIED) IIED is an independent, non-profit research institute working in the field of sustainable development. IIED aims to provide expertise and leadership in researching and achieving sustainable development at local, national, regional, and global levels. In alliance with others we seek to help shape a future that ends global poverty and delivers and sustains efficient and equitable management of the world’s natural resources. Environmental Economics Programme The Environmental Economics Programme (EEP) seeks to develop and promote the application of economics to environmental issues in developing countries. This is achieved through research and policy analysis on the role of the environment and natural resources in economic development and poverty alleviation. Forestry and Land Use Programme IIED’s Forestry and Land Use (FLU) Programme has the goal of improving people’s livelihoods from forest and land use on the basis of equity, efficiency and sustainability, focusing on key arenas where the decision-making that matters for better forestry and land use actually takes place. Citation: May, P.H., E. Boyd, F. Veiga and M. Chang. 2004. Local sustainable development effects of forest carbon projects in Brazil and Bolivi.a A view from the field. International Institute for Environment and Development, London. Cover photo: Peter H. May. Permissions: The material in this paper may be reproduced for non-commercial purposes provided full credit is given to the authors and to IIED. Copies of this paper are available from: Earthprint Limited, Orders Department, P.O. Box 119, Stevenage, Hertfordshire SG1 4TP, UK; Email: [email protected]. www.earthprint.com. Enquiries: tel +44 (0)1438 748111; fax +44 (0)1438 748844; Email [email protected]. This report and its appendixes, and an executive summary in Portuguese are available in pdf format from [email protected] or can be downloaded at http://www.iied.org/eep/pubs/MarketsforEnvironmentalServicesseries.html. Contents 1. Study background ..........................................................................................................1 1.1 The global context: countering climate change .........................................................1 1.2 Global environmental services – incentives for conservation and development.......1 1.3 Official and NGO positions regarding forests in the Climate Convention................2 1.4 Key stakeholders........................................................................................................3 2. Study Objectives and Methodology...............................................................................5 2.1 Objectives ..................................................................................................................5 2.2 Conceptual basis........................................................................................................5 2.2.1 Sustainable development or sustainable livelihoods?..............................................5 2.2.2 Impact assessment....................................................................................................8 2.2.3 Stakeholder consultation and data collection techniques.........................................8 2.2.4 The Kyoto context analysis......................................................................................9 3. Forest carbon sequestration projects in Brazil and Bolivia .........................................10 3.1 Typology of carbon sequestration projects...............................................................10 3.2 Carbon sequestration case studies in Brazil and Bolivia ..........................................11 4. Description and analysis of the Plantar project............................................................15 4.1 Project background ..................................................................................................15 4.1.1 Project objectives...................................................................................................15 4.1.2 Pig-iron production background ............................................................................15 4.1.3 Project location ......................................................................................................16 4.1.4 Plantar SA ..............................................................................................................18 4.1.5 Project components................................................................................................19 4.2 Project funding.........................................................................................................21 4.3 Sustainability impact assessment of the Plantar project ..........................................23 4.3.1 Environmental impacts ..........................................................................................23 4.3.2 Social impacts ........................................................................................................25 4.3.3 Economic impacts..................................................................................................27 4.4 The Plantar project in the Kyoto context .................................................................29 4.5 Conclusions: lessons learned and recommendations ..............................................31 5. Description and analysis of the Peugeot project..........................................................37 5.1 Project background ..................................................................................................37 5.2 Peugeot project sustainability impact assessment....................................................43 5.2.1 Environmental impacts ..........................................................................................43 5.2.2 Social impacts ........................................................................................................44 5.2.3 Economic impacts..................................................................................................47 5.3 The Peugeot project in the Kyoto context................................................................48 5.4 Conclusions: lessons learned and policy recommendations ....................................49 6. Description and analysis of the Ilha do Bananal project..............................................52 6.1 Project background ..................................................................................................52 6.1.1 Project location ......................................................................................................52 6.1.2 Project objective.....................................................................................................53 6.1.3 Project components................................................................................................54 6.1.4 Project partnerships................................................................................................55 6.1.5 Project phases and intervention areas ....................................................................56 6.1.6 Project funding.......................................................................................................56 6.1.7 Project beneficiaries...............................................................................................57 6.2 Bananal project sustainability impact assessment ...................................................57 6.2.1 Environmental impacts ..........................................................................................57 6.2.2 Social impacts ........................................................................................................59 6.2.3 Economic impacts..................................................................................................62 6.3 Bananal project in the Kyoto context.......................................................................64 6.4 Conclusions: lessons learned and policy recommendations ....................................66 7. Description and analysis of the Noel Kempff Mercado Climate Action project.........71 7.1 Project background .................................................................................................71 7.1.1 History of the Park.................................................................................................72 7.1.2 Characteristics of the region ..................................................................................75 7.1.3 Role of the local population in the project.............................................................76 7.1.4 Project design.........................................................................................................79 7.2 Sustainability impact assessment of the Climate Action project.............................79 7.2.1 Environmental impacts ..........................................................................................79 7.2.2 Social and political impacts ...................................................................................81 7.2.3 Economic (developmental) impacts.......................................................................83 7.2.4 Equity impacts: carbon benefit distribution...........................................................85
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