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2	Background Uganda Forestry Sector Review Process recommended measures to encourage investment in forestry activities among others:- -Private sector involvement in tree planting - Favorable tax regulations for overseas developers -Long term land leases for tree planting on govt land -Permits to grow trees in forest reserves -Carbon Trading Financing Mechanism provided for under UNFCCC/Kyoto - CDM
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4	Why Carbon Trade? Land use based carbon trade contributes to ECOTRUST’s conservation objectives in particular the one that aims at promoting private land management for biodiversity conservation: Trees for timber, firewood etc. Soil improvement associated with trees on farm Biodiversity values – increase on-farm tree diversity. Nature based enterprises e.g bee keeping Positive effects on microclimate climate – climate change mitigation.
5	Project objectives Overall objective was to develop and operationalise a model for carbon trading with small scale land owners operational in Uganda. Institutional and technical capacity of participating institutions for implement carbon projects enhanced. Creation of baseline data for agroforesrty/forestry activities. Criteria and indicators for forestry projects developed. An institutional structure for administration of land use, land cover and forestry projects for carbon trading established. Technical specifications for different forestry systems developed and tested.
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7	Partner Roles in project execution cont’d CARE: Selection of farmers Conducting social/economic assessment Registering farmers Guiding Farmers to draw up Planting plans Assisting in initiating seed collecting and nursery operations. Note: These functions are now carried out by ECOTRUST since January 2004.
8	Partner Roles in project execution cont’d ICRAF / FORRI / NBS: Definition of the selected forestry/agro-forestry systems Specification of tree management requirements; Definition of baseline biomass conditions; Compilation of biomass data for specified forestry systems;
9	Partner Roles in project execution cont’d Edinburgh Centre for Carbon Management (ECCM). Assist with carbon modeling and carbon baseline specification. Train partners in carbon accounting, establishment of database, Plan Vivo documentation and general system support. Provide guidelines for project implementation. Marketing of carbon, Provide any technical backstopping
10	Achievements registered
11	Achievements cont’d Over 100 farmers have been registered – about 40 have already received first payment. Tree seedlings have been raised and farmers have planted – Some farmers are running tree nurseries as business Carbon buyers have been identified and have entered – additional sales are under negotiation. Additional funds have been leveraged for conducting a regional baseline – will help in expansion
12	On going/FutureActivities Received funds from START to work on specs for different species and different planting regimes – woodlots, boundary plantations, mixed species under agroforestry -data collection is underway Development of database of farmers capturing household set up and linking client info to buyer is underway Streamline monitoring plan and build farmer capacity to conduct monitoring. Development of additional marketing tools and establishing links with additional carbon buyers Expand program portfolio beyond tree planting to energy and waste management. Scaling up program beyond Bushenyi district
13	Challenges Negotiations in carbon trade and ensuring there is a fair deal & Power dynamics ensuring power balance Ensure that the farmers have control over the activity. Likewise ECOTRUST be the driver and have support from partners Participation in research and global negotiations in relation to climate change activities. Clarify right from the start land and tree products ownership by farmers Developing frame work of agreements, which are flexible and versatile to respond to global climate change debate. Capacity building among farmers and partners to respond to changes as a result of the shift in climate change debate
14	Lessons learned Carbon trade transactions need considerable investments - time & resources to accomplish. It is important that roles of different players are well negotiated and documented from the start – prefer a legal instrument (MoU?). It is important to develop systems that are appropriate to the local conditions – technical specifications and institutional framework. Carbon trade can bring in resources that will help poor farmers meet their development goals.
15	Lessons learned cont’d Policies and procedures to guide the private sector and NGOs in carbon transactions will ease work. Continuous capacity building is important for NGOs that intend to get involved in carbon trade. Both NGOs and government should complement one another government activities - NGOs are better placed to implement o the ground. Carbon trading requires long-term commitment on behalf of the NGO and should never be implemented under a project of short duration.