Offsetting CO2 Emissions Tree Planting on the Prairies Prepared by the International Institute for Sustainable Development I TABLE OF CONTENTS LIST OF TABLES................................................................................................................................................................................. IV INTRODUCTION....................................................................................................................................................................................1 STUDY ASSUMPTIONS.............................................................................................................................................................................1 BACKGROUND ........................................................................................................................................................................................1 CONTROLLING RISING CO2 LEVELS..............................................................................................................................................5 SUBSTITUTION OF LOWER CARBON ENERGY SOURCES ..........................................................................................................................5 REDUCTION OF THE ACTIVITY CAUSING THE EMISSIONS ........................................................................................................................5 SEQUESTRATION OF CO2 ........................................................................................................................................................................5 INTERNATIONAL POLICIES..............................................................................................................................................................6 COMMITMENTS AND GOALS ...................................................................................................................................................................6 THE EUROPEAN UNION ..........................................................................................................................................................................7 THE UNITED STATES ............................................................................................................................................................................10 CANADA ...............................................................................................................................................................................................12 Practices .........................................................................................................................................................................................20 FEASIBILITY OF TREE PLANTING AS AN ACTION...................................................................................................................25 BENEFITS..............................................................................................................................................................................................25 Environmental ................................................................................................................................................................................26 Economic ........................................................................................................................................................................................27 Social ..............................................................................................................................................................................................28 COSTS AND COST MITIGATION OF TREE PLANTING...............................................................................................................................28 The Cost of Inaction........................................................................................................................................................................28 Direct Costs ....................................................................................................................................................................................29 Opportunity Costs...........................................................................................................................................................................30 Cost Recovery Schemes ..................................................................................................................................................................30 Carbon Credits ...............................................................................................................................................................................33 Cost Structures................................................................................................................................................................................34 CONCLUSIONS AND RECOMMENDATIONS................................................................................................................................37 CONCLUSIONS ......................................................................................................................................................................................37 RECOMMENDATIONS ............................................................................................................................................................................38 GLOSSARY............................................................................................................................................................................................39 BIBLIOGRAPHY ..................................................................................................................................................................................40 APPENDICES ........................................................................................................................................................................................45 APPENDIX A. ABOVE GROUND BIOMASS IN KG/TREE BY SPECIES AND SOIL ZONE...............................................................................45 APPENDIX B. ALBERTA NATURAL UNMANAGED STANDS. ...................................................................................................................46 APPENDIX C. SASKATCHEWAN MIXED WOOD FOREST.........................................................................................................................49 APPENDIX D. MANITOBA UNMANAGED STANDS (EXCEPT SCOTCH PINE).............................................................................................50 II LIST OF FIGURES FIGURE 1. GREENHOUSE EFFECT. ................................................................................................................................................................2 FIGURE 2: THE GENERALIZED CARBON CYCLE...........................................................................................................................................3 FIGURE 3. PLANT-SOIL-ATMOSPHERE CARBON CYCLE...............................................................................................................................4 III LIST OF TABLES TABLE 1. MAJOR GREENHOUSE GAS EMISSIONS BY SECTOR FOR CANADA IN 1990 (KILOTONNES)..........................................................14 TABLE 2. SUMMARY OF CARBON DIOXIDE EMISSIONS BY SECTOR, PROVINCE AND TERRITORY IN 1990 (KILOTONNES)..........................15 TABLE 3. PROJECTED REDUCTIONS IN NET GHG EMISSIONS....................................................................................................................23 TABLE 4. A TAXONOMY OF INTERVENTIONS IN THE ENERGY SECTOR......................................................................................................35 TABLE 5. COSTS AND BENEFITS OF CARBON OFFSET PROJECTS AT EIGHT LOCATIONS WORLDWIDE............................................................36 IV Introduction The nations of the world agreed in 1992 at the Earth Summit in Rio de Janeiro to take steps to stabilize and reduce the net emissions of carbon dioxide. Trees have often been discussed in this context since, by fixing carbon, they offset carbon emissions by fossil fuels and can be used as an alternative renewable biofuel, replacing the use of fossil fuels. The degree to which tree-planting in the Prairie Provinces will be adopted as a carbon offset in the coming years will depend on technology, programs, policies and legislation. Canada has agreed to reduce carbon emissions to 1990 levels by the year 2000. Tree planting can be seen as one of the ways of achieving this goal. The ability of trees on the Canadian prairies to offset rising levels of carbon dioxide in the atmosphere is the topic of this report. In this report a brief discussion on what the current levels of carbon emissions are for the prairies and for Canada as a whole is provided. Policies and practices in the European Union, the United States, and Canada will be reviewed to determine the feasibility of tree- planting as well as the best strategy to employ. For Canada this will include policies which have an indirect effect on the tree population and alternative energy sources through incentives or disincentives. This information is important in determining the economic and political feasibility of implementing a tree planting initiative. The benefits