!5?=B;F5GG@5B8G 'IGH5=B56@9=B!CB;C@=5 GG9GGA9BHC:9M@9A9BHGC:"5H=CB5@@MDDFCDF=5H9 !=H=;5H=CB7H=CBG:CFF5GG@5B85B8 =J9GHC7?!5B5;9A9BH Making Grasslands Sustainable in Mongolia Assessment of Key Elements of Nationally Appropriate Mitigation Actions for Grassland and Livestock Management © 2014 Asian Development Bank All rights reserved. Published in 2014. Printed in the Philippines ISBN 978-92-9254-417-1 (Print), 978-92-9254-418-8 (PDF) Publication Stock No. RPT136182 Cataloging-in-Publication Data Asian Development Bank. Making grasslands sustainable in Mongolia: Assessment of key elements of nationally appropriate mitigation actions for grassland and livestock management. Mandaluyong City, Philippines: Asian Development Bank, 2014. 1. Mitigation. 2. Grassland management. 3. Mongolia. I. Asian Development Bank. The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. ADB encourages printing or copying information exclusively for personal and noncommercial use with proper acknowledgment of ADB. Users are restricted from reselling, redistributing, or creating derivative works for commercial purposes without the express, written consent of ADB. Unless otherwise stated, boxes, figures and tables without explicit sources were prepared by the authors. Note: In this publication, “$” refers to US dollars. 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines Tel +63 2 632 4444 Fax +63 2 636 2444 www.adb.org For orders, please contact: Public Information Center Fax +63 2 636 2584 [email protected] Printed on recycled paper Contents Tables, Figures, and Boxes iv Foreword vi Acknowledgments vii Abbreviations viii Glossary ix Executive Summary x Introduction 1 Background 1 The Nationally Appropriate Mitigation Action Concept 2 Approach Used in This Study 4 Key Elements for a Nationally Appropriate Mitigation Action in the Grassland and Livestock Sector 7 Technical Dimensions 7 Institutional Dimensions 33 Policy Dimensions 37 Key Elements for Nationally Appropriate Mitigation Actions at the National Level 42 Institutional Arrangements for Coordination of Nationally Appropriate Mitigation Actions 42 Domestic Approval Procedures 43 National Measurement, Reporting, and Verification Arrangements 43 Securing and Managing Climate Finance 44 Nationally Appropriate Mitigation Action Readiness and a Pathway to Implementation 47 Summary of Readiness 47 Pathway to Nationally Appropriate Mitigation Action Implementation 47 Conclusions 52 Appendixes 1 Origin and Evolution of Nationally Appropriate Mitigation Actions 54 2 Climate Benefits of the Mongolian National Livestock Program 57 3 Baseline Indicators of the Current National Livestock Program Monitoring and Evaluation System 59 iii Tables, Figures, and Boxes Tables 1 Analytical Categories for Climate-Smartness: Adaptation and Mitigation 9 2 Climate-Smart Components of the National Livestock Program 11 3 National Livestock Program Activities Selected for In-Depth Analysis 11 4 Baseline and Nationally Appropriate Mitigation Action Scenario Greenhouse Gas Emission Indicators per Activity 15 5 Cumulative Mitigation Potential of Nationally Appropriate Mitigation Action Activities per Aimag and at Nationally Appropriate Mitigation Action Level, 2013–2020 15 6 Greenhouse Gas Abatement Costs and Financial Internal Rate of Return for Each Nationally Appropriate Mitigation Action Activity, 2013–2020 16 7 Livestock Mortality Rates at Which Selected Nationally Appropriate Mitigation Action Activities Are No Longer Financially Viable 17 8 Proportion of Herders Surveyed Citing Reasons for Not Rotating Use of Summer Pastures 18 9 Activity Data Required to Quantify Baseline Emissions 22 10 Default Values Required to Quantify Baseline Enteric Fermentation Emissions 22 11 Default Values Required to Quantify Baseline Manure Management Emissions 23 12 Comparison of Nationally Appropriate Mitigation Action Activity Types 26 13 Financial Characteristics of Each Nationally Appropriate Mitigation Action Activity Type and Corresponding Financing Measures 30 14 Total Nationally Appropriate Mitigation Action Investment Requirements and Financing Mechanisms ($) 31 15 Estimating Greenhouse Gas Benefits through a Results-Based Monitoring Framework 36 16 National Livestock Program Indicators 39 iv Tables, Figures, and Boxes Figures 1 Key Elements for Nationally Appropriate Mitigation Action Development at Sector and National Levels 6 2 Contribution of Activities of the National Livestock Program to Adaptation and Mitigation by Objective 10 3 Procedures for Planning and Monitoring Grazing Management 25 4 Arrangements for Grazing Activity Monitoring 25 5 Forms of Public Finance to Leverage Private Investment 32 6 Assessment of Nationally Appropriate Mitigation Action Readiness by Key Element 48 Boxes 1 Outline of the National Livestock Program 8 2 Description of National Livestock Program Activity Types Analyzed 12 3 Examples of Direct and Facilitating Finance for Agriculture in Mongolia 32 4 Management Structures in Mongolia’s National Livestock Program 33 5 Current Monitoring, Reporting, and Verification Arrangements in the National Livestock Program 35 6 Summary of Relevant Development Strategies 38 v Foreword ongolia is severely impacted by desertification and climate change. The Gobi Desert continues to expand northward, with over 70% of Mongolia’s land M degraded through overgrazing, deforestation, and climate change. Degradation is a downward spiral, as degraded lands are less resilient to climate change impacts. Average mean temperature increases are more than 2°C. Climate models indicate that temperatures will continue to rise, and more than 80% of the country’s territory is defined as highly vulnerable to climate extremes. Climate-related disasters, including droughts, severe storms, and flash floods, with high social and economic costs (particularly for herders), have doubled in frequency. The Asian Development Bank (ADB) supports regional cooperation among the countries of Northeast Asia to combat dust and sandstorms resulting from desertification. ADB is strengthening the capacity of the governments of Mongolia and the People’s Republic of China in accessing carbon financing to sustainably manage grasslands. ADB recognizes that healthy ecosystems are more productive, more resilient, and provide valuable ecosystem services such as carbon sequestration. Healthy ecosystems form the firm foundation for herders’ natural-resource-based livelihoods. In close cooperation with Government of Mongolia’s Climate Change Coordination Office under the Ministry of Environment and Green Development, this knowledge product was prepared for the Ministry of Environment and Green Development to provide information and analyses of selected aspects of grasslands and livestock management as inputs for an agriculture sector nationally appropriate mitigation action. This publication aims to move the country’s climate change policy agenda forward, and attract donor support for grassland and livestock mitigation activities through the development of an official nationally appropriate mitigation action. The threats posed by climate change have significant impacts on Mongolia’s grassland ecosystems and herders’ livelihoods. This publication identifies sustainable management practices that will boost community resilience to climate change, improve environmental quality, and increase local revenue. Ayumi Konishi Director General East Asia Department Asian Development Bank vi Acknowledgments his report is one of a number of published reports by the Asian Development Bank (ADB) regional technical assistance project, Strengthening Carbon Financing for T Regional Grassland Management in Northeast Asia, with additional funding from the Regional Cooperation and Integration Trust Fund. This report was prepared by Timm Tennigkeit and Andreas Wilkes with inputs from Damdin Dagvadorj, special climate envoy from the Ministry of Environment and Green Development of the Government of Mongolia, and Ian Hannam, ADB consultant. The report was revised and technically edited by Carey Yeager, task manager and climate change specialist from the Environment, Natural Resources, and Agriculture Division (EAER) of ADB’s East Asia Department (EARD). Leadership and inspiration were provided by the staff of the Mongolian Climate Change Coordination Office of the Ministry of Environment and Green Development. Community members and local government staff were a vital component of the project, and their participation and insights were essential. ADB management, technical, and administrative staff, particularly Yue-Lang Feng, Frank Radstake, and Karen Chua, provided valuable guidance and support during the project. Lauren Sorkin, Vidhisha Samarasekara, Casper Van der Tak, Oyumaa Purev, and Takeshi Ueda provided substantive comments that improved the quality of the document. Joy Quitazol-Gonzalez and Heidee Luna supported the entire process from initial formatting and compilation of technical reviews through to final publication. Publication support