Millions of CDM credits could be generated after the approval of a biodiesel/biofuel/bioenergy methodology.

This is about the most progressive CDM move for the past several years and for such a simple ideology it has taken many hours of debate, cajoling, table bashing and even flared tempers to get approval. The methodology implies land assessment partnerships with the CDM consultants within national offices, National and Regional land offices (Departments responsible for primary land assessment and recommendations for land us), local community partnerships and above all a clear value chain for project sponsors. KBC-JCL has always stressed the management of value chains and security for projects in terms of facilitators and owners of the projects value chains (which are by nature transparent) rather than ownership of land areas. We have also stressed that a % of any carbon credit value should be used to support the micro-finance required for indigenous owners (acquiring land resources for fuel crop development) to develop thier land asset and resource against off-take agreements for Biomass harvest values that are to be used for biofuel/energy production.



Published: 19 Oct 2009 16:04 CET

Millions of CDM credits could be generated after the approval of a biodiesel/biofuel/bioenergy methodology.

Last week, the executive board of the clean development mechanism (CDM) approved a methodology for the production of biodiesel for use as a fuel. This methodology can be extended to include any liquid biofuel or bio energy made from feedstock (biomass or oils) grown specifically as a fuel crop.

The use of biodiesel from waste oil and waste fats has already been approved (2007/8) by the board to generate carbon credits in a different methodology, but last week's go-ahead marks a step change in policy.

The new methodology will allow Biodiesel/Biofuels from crops that have specifically been grown for fuel, a move that has been controversial due to its potential competition with other land uses such as food crop
production.

However, the new methodology (ACM0017) dealt with concerns that developers may chop forests down to make room for planting vegetation for fuel, said First Climate, a carbon asset management company that
sponsored the methodology.

“The methodology only allows for generation of carbon credits through dedicated plantations that are established on degraded lands or lands degrading at the start of the project activity,” First Climate said in a
statement. This is a crucial point that must be addressed at the time of primary land assessment.

The CDM board’s approval paves the way for small and medium-sized projects with plantations of 1,000-5,000 hectares, Joachim Sell, head of forestry and biofuels at First Climate, told Point Carbon News.

He said projects approved under the methodology would compete against “critical large scale projects aimed at exportation and leading toland-use conflicts”. This is an important point for the promotion of Jatropha, Castor +++ lands as the opportunity to allow for community ownership in partnership with large scale project sponsors becomes viable when micro-finance can be made available for professional land resource development that embraces indigenous population ownership of the land being developed. Not least as a mechanism that ensures that a % of Carbon Credits from the over all agriculture and industry program actually is returned as value to the land owning, farming communities.

The methodology also addresses the issue of double counting, according to First Climate.

Double counting can take place whereby the emission reduction achieved is credited twice, in this case once to the grower of the biofuel and, if sold to a buyer with a carbon cap, again to the consumer. This is why there is an essential need for partnerships that address each part of the value chain why specifically not excluding local populations from primary land ownership.

“Only the producer of biodiesel is allowed to receive carbon credits. This is so, however; the methodology allows for correct distribution of credit values to the primary producers of certified biofuel feedstock.

Producer and consumer are contractually bound to each other to allow for adequate monitoring and to avoid double counting,” Essentially to preserve FAIRTRADE arrangements.

KBC-JCL's model reflects the ideology that ACM0017 brings to the table.

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