Carbon offsetting to sustainably Finance the System of Rice Intensification SRI in NepalJuna Shrestha, Benjamin Huber

Cornell University, 4 October 2016

Content

• Introduction to ClimateRe• Project ‘Reducing methane emission from rice farming in

Nepal’• Carbon offset for SRI projects

Our multidisciplinary team

JunaEnvironmental Science

BeniGeologist

PremAgronomist

DanieleAgro-economist

ThomasClimatologist

ClimateRe – Association for a climate resilient society

“Our vision is a climate resilient society where every person has equitable access to knowledge, technology and finance, enabling them to adequately deal with climate risks.”

Knowledge

TechnologyFinancial Services Climate resilient

society

Knowledge Financial servicesTechnology

Whatwe

offer

How you

benefit

Our assets

Translate scientific knowledge into simple understandable information

Transfer scientific knowledge to agricultural practices through extension services

Technical assistance for setting up micro-insurance programs

Raised awareness on the impacts of climate change and the associated risks and opportunities

Equipped with appropriate tools to mitigate climate risks lead to increased productivity and improved food security

Assistance in selecting credit and insurance services for better managing agricultural risks

•Strong track-record in climate modeling, nutrient cycle and soil water balance•Established links to universities and research institutes •Field experience in rural development sector

•Experience in developing and implementing agriculture projects •Strong network of NGOs, development agencies and governmental bodies in Nepal•Network of experts in South and South-East Asia

•Experience in design and pricing of insurance products •Network of experts in index based insurance•Network of insurance professionals in India and Thailand

What we offer

5

Reducing methane emission from rice cultivation in Nepal• 55,000 ha of rice field converted into SRI method• Abate 500,000 tCO2eq in a period of 10 years• After 10 years, the project area will reduce 99,000

tCO2eq/year methane

https://www.youtube.com/watch?v=gkQj4V8VsAY

• For this project we use a default value of 0.72 kgCH4/ha/day• For a rice growing period of 120 days, the project will reduce

2 tons of tCO2eq/ha/year• Estimated methane reduction potential of SRI is > 20% and

global methane emission from rice is estimated 50 to 100 Mt/year

• Even with most conservative estimate, the global methane emissions will be reduced by minimum 10 Mt/year (210 MtCO2eq).

Methane emission reduction potential of SRI

• The price of carbon credits depends on several factors such as quality/standard and project type, demand and regulation

• Because of its high socio-economical benefits in addition to the GHG reduction potential, we will develop a gold standard project.

• Established in 2003 by WWF and other international NGOs as a best practice benchmark for energy projects developed under the UN’s Clean Development Mechanism (CDM)

• Gold Standard was set up to ensure that projects delivered genuine emission reductions and long-term sustainable development.

• Based on the current prices of Gold Standard certificates we estimate an average price of 5 USD / ton CO2 (i.e. potential of 1 billion USD)

Potential revenues from CDM carbon offset

2011 CDM AMS-III.AU• Methane emission reduction by adjusted water management

practice in rice cultivation• Submitted by Bayer CropScience 16 November 2010• Projects Indonesia and Philippines

2013 Voluntary Emission Reductions in Rice Management Systems• Prepared by Terra Global Capital, LLC• With support from Environmental Defense Fund (EDF), California

Rice Commission, Applied Geosolutions, LLC

2012 – 2015 Vietnam Low Carbon Rice Project (VLCRP)• VLCRP seeks to significantly reduce GHG emissions from rice

cultivation

Carbon offset methodologies

• Scoping study (Rice cultivation practices, carbon offset programs and micro insurance)

• Partnership opportunities (Insurance companies, research institutions etc.)

• Grants and funding for project implementation

Next steps

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ClimateReSeehofstrasse 6B6330 ChamSwitzerlandEmail: info@climatere.orgPhone: +41 (0) 52 202 00 97

Our approach

We support the reduction of climate risks in the area of agriculture while providing new opportunities through our three-tier approach:• Risk mitigation of adverse impacts of climate change• Risk coping to withstand and manage events through ex-ante

and ex-post activities• Risk transfer through insurance products and solutions

3

AMS-III.AU Ex ante estimation of emission reductions

Methane emission reduction by adjusted water management practice in rice cultivation (AMS-III.AU)

Methodology key elements

Example Knowledge – Climate resilience toolbox

The toolbox transforms scientific knowledge into a tangible adaptation process. It links risks, opportunities and adaptation strategies into the agriculture system. Basis of the toolbox is:• Increase of agricultural productivity & income in a sustainable way• Strengthening of farmer’s resilience against climate change• Reduction of greenhouse gas emissions

Climate resilience toolbox

TargetTo help farmers understand how climate change impacts their crops and which mitigation measures should be taken to tackle risks and exploit opportunities.

Key activities

Prepare weather hazard maps for agriculture, exposure assessment of main crops and vulnerability for potential lossesRisk analysis

Development of operational

toolbox

Training Capacity building of agriculture technical officer to guide farmers on the use of the toolbox

Identification and description of sustainable and innovative measures of climate change adaptation & mitigation

Main benefits

20 to >100%

up to 90%

up to 50%

> 50%

increased yield water savings

reduced methane

production

reduced seed input

System of Rice Intensification – SRISRI is a scientifically proven alternative rice growing method. It is an agro-ecological methodology to increase yield of irrigated rice by changing the management of plants, soil, water & nutrients.

* Information & photos in this page is extracted from http://sri.cals.cornell.edu/index.html

SRI facts• SRI has been successfully implemented in 50 countries.• SRI methodology is a management approach and does

not require new varieties of seeds.• Some rice varieties respond better than others.

Other benefits and challenges+ Healthy robust plants+ Improved soil conditions- Increase in labor requirements e.g. weeding - Farmer’s resistance to change

Product design: Making use of big data & technology

Stage 1 winner of Climate-KIC

Semi-final of Echoing Green