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Project Progress Report

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Section A: To be completed for all projects

 

1.      Project Details   (1)                                                                                    (FCO Use Only)

Project Title:

Enhancing capacity for the Kyoto Protocol carbon emission trading and JI projects implementation in Russia

PRISM Project No.

 

Programme/Fund

SPF (Low Carbon - High Growth)

Lead Post

 

Countries Covered

Russia

Date of Report

02.03.2009

Completed by:

Project Coordinator Dr. A.Stetsenko

 

 

1.      Programme Fund Officer (3)                                                 (FCO Use Only)

Name, position and unit

 

Date Completed

 

Comment

 

Action

 

 

 

2.      Post Project Officer   (2)                                                         (FCO Use Only)

Name, position and unit

 

Date Completed

 

Comment on Project Progress

 

 

Issue/Risk

 

Action

 

 

 

 

 

3.      Project Progress Summary (4)

Overall summary of project progress in relation to project purpose

 

 

 

 

 

 

 

 

 

 

The general project purpose is to facilitate wide-scale carbon investments into the forestry carbon sequestration projects in Russia using the Kyoto Protocol mechanisms.

 

During the 2nd stage of project implementation (January-March 2009) we have implemented the following activities:

 

1.      Elaboration of the methodological guidelines for preparation of forestry JI projects in Russia:

a.       The methodology for forestry JI project development has been elaborated based on the UNFCCC methodological guidelines, Russian approaches to carbon sequestration estimation and monitoring, international experience in CDM forestry projects. Relevant data has been collected from different sources, including the UNFCCC, IPCC, and RAS sources.

b.      We continued extensive consultations on the requirements to forestry project documentation and financing with the Federal Forestry Service, Ministry of Economic Development, JISC experts and project developers

2.      Project Design Document (PDD) for a pilot forestry JI project:

a.       As a pilot project we have selected a small-scale afforestation project in Altai Kray. The project will cover 7,000 hectares of non-forested land in different parts of the region. The regional Forestry Management Unit of Altai Kray has specified the land areas to be afforested with the focus on further expansion of project activities up to 25,000 hectares that are available for the near-term afforestation.

b.      We have collected all information relevant for elaboration of the Project Idea Note (PIN) for this small-scale pilot project;

c.       We continue extensive consultations with the Federal Forestry Service, Altai regional forestry and economic authorities with regards to the pilot project development and implementation. There is a strong support of the project from the regional Administration.

3.      Workshop:

a.       The first regional workshop and a series of working meetings on the project have been held in Barnaul in early January 2009 for presentation of project idea, discussion of the best practical ways for PDD development and implementation of forestry JI project with regional authorities, NGOs, businesses, including carbon investors.
There have been 24 publications and 2 video programs on the workshop and project implementation, highlighting the need for such JI forestry activities in Russia and, specifically, in Altai region. Totally about 2 748 700 people have been covered by these media in Russia and Belarus.
In Annex to the report we attach materials on the workshop and its mass media coverage analysis.

4.      Web-based portal on Kyoto forestry projects:

a.       We have been collecting information, methodological, analytical materials for the web-portal on forestry JI projects aimed at dissemination of Kyoto forestry JI information and our experience, facilitation of carbon investment inflow into the Russian forestry sector. In the next quarter we plan to put the web-portal in operation.

In addition, we undertook extensive consultations with the carbon investors interested in participation in our pilot forestry JI project in Altai. By now, we contacted with 6 potential investors and discussed possible terms of cooperation. This work will be continued in the next quarter.

 

By now, we have been doing the project in full compliance with the planned schedule.

 

 

Section B: To be completed only for projects in excess of £30k

 

4.      Progress by Output and Indicators (5)

Output

Indicators

Progress during Quarter

(Include quantitative information and any problems or issues)

Plan for Next Quarter

1. Russia-specific methodological guidelines for development of forestry JI projects are developed and approved by the Russian Forestry Service

Methodological guidelines are developed and presented to  the Russian Forestry Service for approval by April-May 2009.

 

Feedback from relevant Russian authorities that guidelines fit-for-purpose.

 

Comments received and incorporated into guidelines.

 

The methodological guidelines has been drafted and currently are discussed with the Russian forestry experts.

Further discussion of the guidelines is planned for the next quarter, when we aim to finalize the guidelines and send them to Rosleskhoz with recommendation for adoption.

2.  Project Design Document for one pilot forestry JI project in Altai region to be developed,  discussed with Russian Federal Forestry Service and submitted to MED

Pilot project design document (PDD) is elaborated in full compliance with the international and national requirements and submitted for approval by the Russian Interagency Commission by June-July 2009.

Investors identified for the pilot project,

Feedback from relevant Russian authorities that PDD fit-for-purpose.

 

Comments received and incorporated into PDD.

 

 

The pilot small-scale afforestation project will be implemented in Altai Kray. The project will cover 7,000 hectares of non-forested land in different parts of the region. The regional Forestry Management Unit of Altai Kray has specified the land areas to be afforested with the focus on further expansion of project activities up to 25,000 hectares that are available for the near-term afforestation;

We have collected all information relevant for elaboration of the Project Idea Note (PIN) as a first stage of PDD development;

We continue extensive consultations with the Federal Forestry Service, Altai regional forestry and economic authorities with regards to the pilot project development and implementation. There is a strong support of the project from the regional Administration.

 

We will continue working on the PDD for Altai pilot project through April-June 2009.

The PIN will be finalized in the end of March. We will use it for negotiations with the carbon investors.

3. Demonstration of practical experience of JI forestry activities to the authorized federal governmental bodies (Russian Forestry Service , Ministry of Economic Development), the administrations of 5-10 regions with carbon forestry project potential, as well as 10-20 carbon investors and project developers on forestry JI mechanism in Russia

Raising awareness and capacity building in the key policy makers responsible for JI in the forestry sector;

Involvement of 5-10 leading Russian forestry regions in the sectoral JI project activities;

Improvement of expertise of project developers and carbon investors in the forestry JI in Russia

Seminar to present key project findings attract key  Russian stakeholders (at least 40 participants)

2-5 further carbon investment projects under development with total carbon absorption potential of 5-10 min t CO2 by 2020

We continued consultations with the representatives of federal Forestry Service and a number of Russian regions on organization of forestry JI projects. There is substantial interest in such projects and even some progress by now:

·        Samara region has initiated work on the JI project for implementing their regional afforestation program (about 140,00 hectares until 2015). However the economic crisis may affect the project development;

·        Novosibirsk region has considered a regional program on Kyoto Protocol and expressed interest in the forestry JI projects on its territory;

·        We continue consultations with Sakhalin Regional Administration (Economic Development Department) on the forestry JI activities;

·        Novgorod region has expressed interest in forestry JI as a mechanism for investment inflow in the sector. We continue consultations with the regional administration, forestry management division, local experts.

We have participated in the Forestry Forum in Novosibirsk in the end of January 2009 where we presented the project idea and discussed the issues related to its implementation, including concerns of local environmental NGOs, regional authorities, businesses.

In the next quarter we plan to mostly finalize the work on PDD development and start implementation of the pilot afforestation project in Altai Kray, which will demonstrate how such projects can be done in Russian circumstances.

We will also expand our consultations and collaboration with the forestry authorities on both federal and regional levels, as well as companies, experts, NGOs.

4. Wider opportunities to carbon investment identified. Organizational and financial schemes for carbon investments in forestry projects are developed and presented for approval by Rosleskhoz and Ministry of Economic Development to be used under JI, Green Investment Scheme or other mechanisms

Consideration and approval of the carbon financing schemes for forestry carbon sequestration projects.

Inclusion of the forestry sector in potential Green Investment Scheme in Russia under special regime

Feedback from the Russian Forestry Service, the MED, potential investors and the World Bank on alternative schemes incorporated into recommendations.

This work has been schedules for the quarter of April-June 2009 and on, when the PDD and other documentation will be done.

However, we have started consultations with the potential carbon investors already. By now, we contacted with 6 potential investors and discussed possible terms of cooperation. This work will be continued in the next quarter.

This work has been schedules for the quarter of April-June 2009 and on, when the PDD and other documentation will be done.

5. Pilot project results effectively disseminated, including 5-10 other priority forestry regions.

 

5-10 other forestry regional authorities expressed interest or committed to implementing forest carbon investment projects.

At least 5-10 potential investors in forestry projects identified.

This work has been schedules for the quarter of April-June 2009 and on, when the PDD and other documentation will be done. We have started consultations with the interested regional partners in 4-5 locations already.

This work has been schedules for the quarter of April-June 2009 and on, when the PDD and other documentation will be done.

6. The web-based portal on the forestry JI in Russia for exchange of information and promotion of forestry carbon projects is developed.

Web-site launched by February-March 2009

Web-site operates  since April 2009

100-200 visits of the web-site a week

Web-site links with other main forestry and carbon web-sites (Roshydromet, International forest institute, etc)

We have been completing design of the web-portal and have been collecting information, methodological, analytical materials for the web-portal on forestry JI projects.

We will finalize design of the web-portal and upload our materials in it in the next quarter.

 

 

5.      Progress on Activities against Activity Schedule (6)

All activities are implemented according to the project schedule agreed.

 

 

6.      Financial Progress (7)

 

(a) Summary

Total Project Budget

Total Expenditure to Date

Expenditure during Quarter

£ 78 500

£ 31 550

£ 19 456,40

 

 

 

7.      Project Implementation Approach  (8)

Any changes in project implementation approach?

No changes

 

 

9. Timing (9)

Is the project still on course to complete on the projected date?

The project is on the course of implementation, as it was planned in the proposal

 

 

10. Problems and Risks (10)

Problems or issues(risks) which may effect success of project

Action Planned/ Taken

No risks are envisaged for the project at this moment

 

-

 

11. Promotional Activity (11)

The representatives of regional TV, radio, electronic and printed media have been attending the meetings undertaken under this project. Detailed report (in Russian) on the media coverage is in Annex to this report.

 

 

12. Other  Notes(12)

 

 

 

 

 

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