TENTH PLENARY MEETING OF THE LEADING GROUP ON INNOVATIVE FINANCING FOR DEVELOPMENT

MADRID, FEBRUARY 27, 2012

The Yasuni ITT Initiative and Net Avoided Emissions

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Yasuni National Park

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Management Alternatives for Yasuni National Park: Multicriteria Analysis Results

Análisis Multicriterio de la Iniciativa Yasuní ITT. María Cristina Vallejo et Al. (Programa Yasuní) DOWNLOAD PDF: http://www.ambiente.gob.ec/sites/default/files/users/dvelalcazar/ANALISIS_MULTICRITERIO_YITT.pdf

Ranking of Alternatives:A= Yasuni ITTBTT= Exploitation Scenario 1BITT= Exploitation Scenario 2

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Management Alternatives for Yasuni National Park: Multicriteria Analysis Results

Análisis Multicriterio de la Iniciativa Yasuní ITT. María Cristina Vallejo et Al. (Programa Yasuní) http://www.ambiente.gob.ec/sites/default/files/users/dvelalcazar/ANALISIS_MULTICRITERIO_YITT.pdf

Opportunity Cost:

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The Yasuni – ITT Initiative

• Biodiversity protection• Respect of the Rights of

Indigenous Peoples • Transition to «good-

living» (buen vivir) and Rights of Nature

• Support Yasuni (UNDP Fund): mdtf.undp.org/yasuni

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What is Net Avoided Emissions (NAE)?

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«Net Avoided Emissions» (NAE) Objectives: Establishment of Synergies

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NAE at the United Nations Framework Convention on Climate Change (UNFCCC)

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Mechanism design: Governance

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Mechanism design: Cost-effectiveness

The Yasuni-ITT Initiative: enhancing cost-effectiveness of, and promoting, mitigation actions, Document for UNFCCC: -Views on the evaluation of various approaches in enhancing the cost-effectiveness of, and promoting, mitigation actions Submissions from Parties (7 April 2011) - Submission from Ecuador

Mitigation actions in Ecuador

(Land-use sector)

Region/Country

Cost (USD/CO2eq

ton)Source

Yasuni-ITT Ecuador $0,015 – $0,02Submissions Form Parties (07/April/11) Yasuni ITT Cost-Effectiveness (Ecuador), UNFCCC

Socio Bosque (sim. REDD) Ecuador $0,24 Ortega-Pacheco et al. (2010)

PROFAFOR (sim. MDL) Ecuador $1,42 Wunder and Alban (2008)

Offsets Forests Ecuador $1,22 Antinori and Sathaye (2007)

Offsets Forests Global $0,38 Antinori and Sathaye (2007)

1,4% cost/CDM ton CO2eq

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Mechanism design: Safeguards

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Mechanism design: Advantages with regards to existing mechanisms

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Mechanism design: Environmental Integrity (efficacy)

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Expected Outcomes for 2012

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THANK YOU

Analiz Vergara Environment and Climate Change Division

Ministry of Foreign Affairs, Trade and IntegrationQuito, Ecuador

t-avergara@mmrree.gob.ecmedioambiente@mmrree.gob.ec

Ecuadorian Embassy in Spainembajada@mecuador.es

Min. Germán Espinoza: ministro@mecuador.es

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Annex 1: The Yasuni ITT Initiative - Deforestation Component

The Yasuni-ITT Initiative: enhancing cost-effectiveness of, and promoting, mitigation actions, Document for UNFCCC: -Views on the evaluation of various approaches in enhancing the cost-effectiveness of, and promoting, mitigation actions Submissions from Parties (7 April 2011) - Submission from Ecuador

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Anex 2: Cost-effectiveness of mitigation actions in Ecuador (Land-use sector)

NPV (desc. Rate 6%)

NPV (desc. Rate 12%)

Type ActivityEmissions

(millon ton CO2eq)

Cost (million USD)

Cost (USD/ton CO2eq)

Cost (million

USD)

Cost (USD/ton CO2eq)

Yasuni-ITT Programmatic/avoidance

Oil extration 407 20,78 0,017 18,38 0,015Deforestation (máx.) 820 24,53 0,02 21,85 0,018

Socio-Bosque Proyects/ secuestration Deforestation 26,9 7,9 0,24 7,9 0,24

PROFAFOR CDM-like Reforestation 2,23 6,54 0,58 6,54 0,58

The Yasuni-ITT Initiative: enhancing cost-effectiveness of, and promoting, mitigation actions, Document for UNFCCC: -Views on the evaluation of various approaches in enhancing the cost-effectiveness of, and promoting, mitigation actions Submissions from Parties (7 April 2011) - Submission from Ecuador