Carbon Sequestration as a Vehicle for Multi-Stakeholder Participation in Realizing the

Millennium Development Goals

JP Leous Neal Parry Lyndon Valicenti Nicole CosmannKate FaulhaberMario Lopez-AlcalaArmando Rodriguez

World Bank Institute Washington D.C., 22 May 2006

Overview

• Background• Carbon Sequestration Projects• Participating Parties• Case Studies

1. Geologic Sequestration in Algeria2. Reforestation in Uganda3. Soil Sequestration in Sub-Saharan Africa

• Multinational Corporations (MNCs) as Drivers• Conclusion

Background

“The impacts of climate change will fall disproportionately upon developing countries and the poor persons of all countries, and thereby exacerbate inequities in health status and access to adequate food, clean water, and other resources.” Intergovernmental Panel on Climate Change, 2001

Africa and the Millennium Development Goals (MDGs)

Carbon Sequestration

• Kyoto Protocol’s Clean Development Mechanism

• Sequestration Methodologies– Geologic– Forestry– Soil Organic Carbon

• Potential Co-benefits

Our Hypothesis: (1) Carbon Sequestration as a Vehicle

Carbon sequestration

projects can be a vehicle to

bring MNCs and host

countries into collaboration

with the benefit of moving

toward the MDGs and

environmental protection.

Reasons Behind Participation

Multinational Corporations Host Countries• Near and Long-term Returns

– Carbon markets– Anticipation of future regulations

• Corporate Social Responsibility

• Millennium Development Goals

– Socio-economic development– Ecosystem services– Public-private partnerships

Our Hypothesis: (2) MNCs as Drivers

MNCs can drive improvements in the various stages of sequestration project development.

Case Studies

1. Geologic Sequestration in Algeria

2. Reforestation in Uganda

3. Soil Sequestration in Sub-Saharan Africa

Registered Projects under the CDM

by Region (UNFCCC, 2006)

Africa

Asia & the Pacific

Other

Latin America &the Caribbean

Geologic Sequestration in Algeria

BP in Algeria, Carbon Capture and Storage• Leader in geo-sequestration technology • Non-exclusive: Profits & Corporate Social Responsibility• Limited Direct Co-benefits

Reforestation in Uganda

Clean Air Action Corporation in Uganda, Small Group Tree Planting • Leader in building local capacity for agro-forestry• Co-benefits:

• Increased income of local farmers • Increased ecosystem services• Technology transfer

Soil Sequestration in Sub-Saharan Africa

• Emerging methodology• Potential Co-benefits:

• Increased soil fertility and productivity• Increased food security• Decreased desertification

Discussion

MNCs can be drivers for:

1. The improvement of carbon sequestration mechanisms

2. Building the capacities of African host countries

3. Paving the way for additional firms to participate in

development-focused sequestration projects

The Potential of MNC Leadership

Conclusion

Climate Change Will Hinder Efforts Made to Alleviate Poverty.

The Scope of Issues Necessitate Leadership.

MNCs have the Resources and Expertise to Lead.

Time to Act is Now!

Diagram by Rick Valicenti THIRST

Photo Credits

1. http://www.earthinstitute.columbia.edu/mvp/news/sauriwater32806.html2. http://www.friendlyplanet.com/images/serengeti-sunset.jpg3. http://www.telegraph.co.uk/news/graphics/2005/06/02/waus02.jpg4. http://earthobservatory.nasa.gov/Laboratory/Aerosol/Images/anthro_smokestack.jpg5. http://www.tist.org/6. http://www.dosima.org/home.pages/anand.madhvani/south.africa/zimbabwe/tree_planting/7. http://www.rbgkew.org.uk/places/images274/africandnabank.jpg 8. http://www.friendlyplanet.com/images/serengeti-sunset.jpg 9. http://www.bp.com/sectiongenericarticle.do?categoryId=9007626&contentId=701449310. http://www.dosima.org/home.pages/anand.madhvani/south.africa/zimbabwe/tree_planting/

213_1314.jpg11. http://africa.eduprojects

.net/agriculture/media/MY%20PHOTOS/My%20New%20Hulbam/Big%20eggplant%20harvest-highres.jpg

12. http://www.dosima.org/home.pages/anand.madhvani/south.africa/zimbabwe/tree_planting/13. http://www.rbgkew.org.uk/places/images274/africandnabank.jpg14. http://www.sei.se/graphics/mdg2.jpg, http://www.ozspirit.info/2004/_img/78boys-of-orissa.jpg