PROJECT DESIGN DOCUMENT FORM (CDM-SSC-AR-PDD) - Version 02 ____________________________________________________________________________________ CDM – Executive Board Page 1 CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM FOR SMALL-SCALE AFFORESTATION AND REFORESTATION PROJECT ACTIVITIES (CDM-SSC-AR-PDD) (Version 02) Version for validation under Climate, Community and Biodiversity Project Standards CONTENTS A. General description of the proposed small-scale A/R CDM project activity B. Application of a baseline and monitoring methodology C. Estimation of the net anthropogenic GHG removals by sinks D. Environmental impacts of the proposed small-scale A/R CDM project activity E. Socio-economic impacts of the proposed small-scale A/R CDM project activity F. Stakeholders’ comments Annexes Annex 1: Contact information on participants in the proposed small-scale A/R CDM project activity Annex 2: Declaration on low-income communities Annex 3: Inventory and projections (CONFIDENTIAL) Annex 4: Sample contract (CONFIDENTIAL) Annex 5: Sample forms Annex 6: Additional information for CCB validation Annex 7: AFOLU Non-Permanence Risk Analysis and Buffer Determination Annex 8: Risk Prevention and Mitigation Plan for Project Personnel (Spanish) Annex 9: Biodiversity Monitoring Plan PROJECT DESIGN DOCUMENT FORM (CDM-SSC-AR-PDD) - Version 02 ____________________________________________________________________________________ CDM – Executive Board Page 2 Note This PDD for the Sierra Gorda Reforestation Project is following the CDM-SSC-AR-PDD Template and the Clean Development Mechanism (CDM) methodology AR-AMS0001 / Version 06. The reason behind this choice is that CDM methodologies are accepted as the highest standard of afforestation / reforestation projects. The use of the template and methodology does not mean that the project will be submitted as a CDM project. CDM methodologies are approved under the Verified Carbon Standard (VCS) and also meet the requirements of the Climate, Community and Biodiversity Project Standards (CCB). PROJECT DESIGN DOCUMENT FORM (CDM-SSC-AR-PDD) - Version 02 ____________________________________________________________________________________ CDM – Executive Board Page 3 SECTION A. General description of the proposed small-scale A/R CDM project activity: A.1. Title of the proposed small-scale A/R CDM project activity: >> Carbon Sequestration in Communities of Extreme Poverty in the Sierra Gorda of Mexico A.2. Description of the proposed small-scale A/R CDM project activity: >> In 1987, Grupo Ecológico Sierra Gorda (Grupo Ecológico) began reforesting degraded lands in the Sierra Gorda Queretana in eastern-central Mexico. Between 1997 and 2001, Grupo Ecológico planted 52.6 hectares, in parcels greater than 0.5 hectares, with the intention of using the revenues from the sale of the carbon sequestered to support landholders and the organization’s environmental activities. Following restructuring of Grupo Ecológico in 2001, Bosque Sustentable A.C. has continued as the partner organization of Grupo Ecológico focusing on reforestation and the sale of carbon credits. Since the restructuring, Bosque Sustentable has planted an additional 93.2 hectares through 2009 in parcels greater than 0.5 hectares, with the expressed goal of using the revenues from the sale of the carbon sequestered to support landholders and the organization’s activities in forest management and biodiversity protection. Bosque Sustentable has a target to plant an additional 40 hectares per year from 2010 to 2013 for this project activity. The purpose of the project is to reforest areas that require restoration while providing an alternative productive activity to hundreds of landowners and landholders in conditions of severe poverty while capturing carbon at the same time. The project is primarily designed to overcome the financial barrier to landholder participation. Bosque Sustentable provides the landholders with incentives to follow the forest management plan proposed by Bosque Sustentable. A.3. Project participants: >>Please list project participants and Party(ies) involved and provide contact information in Annex 1. Information shall be indicated using the following tabular format. Indicate if the Party Private and/or public Name of Party involved (*) involved wishes to be entity(ies) project ((host) indicates a host considered as a participants Party) project participant (as applicable) (Yes/No) Bosque Sustentable A.C. Mexico No Various landowners and landholders PROJECT DESIGN DOCUMENT FORM (CDM-SSC-AR-PDD) - Version 02 ____________________________________________________________________________________ CDM – Executive Board Page 4 A.4. Description of location and boundary of the small-scale A/R CDM project activity: >> A.4.1. Location of the proposed small-scale A/R CDM project activity: >> Please see Annex 3 for a detailed inventory of reforestations established from 1997-2009. A.4.1.1. Host Party(ies): >>Mexico A.4.1.2. Region/State/Province etc.: >> Querétaro and San Luis Potosí A.4.1.3. City/Town/Community etc: >> Zone 1: Sierra Gorda Biosphere Reserve (SGBR) Municipalities of Pinal de Amoles, Jalpan de Serra, Landa de Matamoros and Arroyo Seco in the state of Querétaro Zone 2: San Luis Potosí Municipalities of Xilitla and Aquismón in the state of San Luis Potosí A.4.2. Detail of geographical location and project boundary, including information allowing the unique identification(s) of the proposed small-scale A/R CDM project activity: >> The project boundary includes 138 reforestations totaling 145.7 hectares established from 1997-2009 and is projected to increase by approximately 40 hectares each year from 2010-2013. Please see Annex 3 for a detailed inventory of existing plantings. The locations of the plantings have been mapped (see Figures 4-11, KML file and Assessment of Land Condition/Suitability Sheets). The project proponent will demonstrate that communities that enter the project after the validation of the PDD have roughly the same social, economic and environmental conditions (i.e. in the same region, with the same social and economic indicators). These lands will not affect the additionality of the project and will have the same baseline as presented in the PDD. VCS provisions regarding control of project area The VCS Guidance for AFOLU Projects states that in cases where project validation occurs before verification, as is the case with this project, the project boundary encompasses the area under the control or to become under the control of the project participants as defined in the Project Document. The entire area is to be validated as if it were under control and ready to be implemented. For validations where less than 80% of the total proposed area of the project is under current control, certain requirements must be met. In this project, 160 of the total hectares have not yet been identified. In addition, as part of the project operator’s procedures to reduce financial and plantation survival risks, contracts between the project operator and the reforesters are not signed until the plantation shows adequate survival rates and until a corresponding donation is received from the user of the emissions PROJECT DESIGN DOCUMENT FORM (CDM-SSC-AR-PDD) - Version 02 ____________________________________________________________________________________ CDM – Executive Board Page 5 offsets. Therefore, because less than 80% of the total proposed area of the project is under current control, the following four requirements must be met. A. Demonstrate that the differing area (i.e., whether under control now or in the future) does not affect the outcome of the additionality test. The project proponent has established clear participation requirements that ensure that areas entering the project in the future do not affect the outcome of the additionality test. These include a geographic requirement that ensures the participants in the project will be from communities with similar social, economic and environmental conditions; a requirement that lands are in agriculture or livestock use prior to the establishment of the plantation and thus would not regenerate naturally; and a requirement that any individual who would establish a plantation without the administrative and technical assistance of the project proponent or its key partners is not eligible. Please see Annex 5 for more details on participation requirements. B. Assure that if the area is eventually smaller than intended, there are provisions that increased emissions attributable to the project activity in the areas that at verification have not come under control of project shall be considered as leakage. This requires the selection of the appropriate methodology beforehand for the eventuality that this may happen. Under the selected methodology, ―project emissions are considered insignificant and therefore neglected.‖ C. Design a monitoring plan that is flexible enough to deal with changes in the size of the Project. The monitoring plan includes a leakage survey and calculation methodology that will be applied to all new areas entering the plan and that will operate regardless of any changes in the size of the project. D. Verify the project within five years of validation. The project proponent plans to seek verification within five years and has included its cost in the project’s financial projections. PROJECT DESIGN DOCUMENT FORM (CDM-SSC-AR-PDD) - Version 02 ____________________________________________________________________________________ CDM – Executive Board