in business through increasing eco-competitiveness of national coffee ... economy: easily rolling out NAMA management mo
NAMA – Coffee of Costa Rica Luis Zamora Q. National Coffee Manager Ministry of Agriculture and Livestock, Costa Rica
COSTA RICA OCTUBRE 2014
NAMA
Nationally appropriate mitigation action in the Costa Rican coffee sector
Pathway towards a low-carbon coffee sector
MINAT Ministerio de Ambiente, Energía y Telecomunicaciones
Keeping coffee growers and maintaining farming families in business through increasing eco-competitiveness of national coffee producers
NAMA Highlights
Payments for environmental services for agroforestry systems in the coffee sector
First NAMA in the coffee sector and one of the few NAMA´s in Agriculture
Increased adoption of mitigation and adaptation measures along the supply and value chain
Donor support may target: institution development, capacity building, evidence building, knowledge sharing and capital investments.
Coffee sector serving as a “NAMA laboratory” for other sectors and other Latin American coffee-growing countries
Coffee Sector Structure Coffee Sector
2002
2012
Number of Farmers
70 143
52 787
Number of Mills
93
184
Number of Exporters
56
93
Number of Roasters
34
57
Source: ICAFE.
NAMA affects 50,000 farming families and involves an area of approximately 93,000 hectares.
Background
Payments for environmental services for agroforestry systems in the coffee sector
At the heart of Country´s identity
There are already existing framework policies in place
Stakeholder involvement across sectors
Solid institutional, organizational and collaborative setting
Strong relationship (agencies, coffee growers and millers)
Our coffee sector is fertile ground for developing new approaches to a green economy: easily rolling out NAMA management models and scaling up
Support Requested
Payments for environmental services for agroforestry systems in the coffee sector
International funding
National funding
20.000.000 USD (equivalent to 40 USD/family/year) from 2014 to 2023.
Institution development
Capital development: investments in (NAMA-type technologies).
Evidence building: establishing a smart MRVsystem;
Capacity building
11.500.000 USD (equivalent to 23 USD/family/year) from 2014 to 2023.
Public extension system & Coffee growers Agriculture and and mills (risk) Livestock Ministry awards Coffee-shading National and reafforestation Development and PESBanking System qualifying
Costa Rican NAMA Coffee MAG
Coffee NAMA
ICAFE
(Framework Convention) MINAE
BID FOMIN (FUNDECOOPERACION)
FUNDECOOPERACION
NAMA FACILITY NAMA SUPPORT PROJECT (GIZ)
OTHERS
Coffee NAMA
FOMIN
Equivalent Funding in cash
Equivalent Funding in Kind
Total
$ 1.274.438
$ 348.250
$ 617.400
$ 2.240.088
5 components
Technical approval by BID FOMIN
Current barriers
Payments for environmental services for agroforestry systems in the coffee sector
Policy barriers:
Financial barriers:
Market barriers:
*Low regulatory incentives to capital investment and process innovation.
*Low and late return of investment
Insufficient access to market niches
*Cash flow problems of coffee growers and millers.
Weak market incentives for GHG – efficient fertilizers.
*The slide only presents the main barriers identified at the moment.
Financial Mechanism Payments for environmental services for agroforestry systems in the coffee sector How we will manage this? MINAET
MAG
ICAFE
Intergovernmental Panel
Special fee
Private Investors
Secretariat
Guaranties functionality
Contributions
National NAMA Coffee Fund through a special vehicle
Contributions
Bi- and multilateral, public, private donors
National and international carbon markets
Render future environmental benefits Transferes direct financing
Funds activities
Ejecuting
agency
Mills
Delivers services
Places environmental benefits Steering Committee NAMA-Café
Advices political agenda and changes in institutional settings
Advisory board & Stakeholders
Galvanices interests, advices tecnically, facilitates coordination, etc.
Atends farmers and millers
Farms
Fuente: GIZ, B. Krause (2013)
Expected outcomes
Payments for environmental services for agroforestry systems in the coffee sector
Livestock
Coffee
Sugar cane
Rice
Banana
Other
Co-benefits: 11% 8% *Eco-competitiveness 5% 11% growing (cost Agriculture and Reduction livestock; 37% potential: approx. 30.000 Ton of CO2/year.
Energy and Carbon sink Transportation; potential: approx. 46%of 90.000 Ton CO2/year.
coffee savings,
120,000 Ton The expected diversification, keep market CO2e/year until reductions over 20 25% 2024 at full and environmental years willimpact be access implementation. 1,850,000 Ton CO2e
reduced) *Resilience of 50.000 farming 40% families.
Industry ; 6%
Wastes ; 11%
We envision the NAMA that combines mitigation measures with climate adaptation practices
A road map for the NAMA in the Costa Rican coffee sector Carbon Neutral Coffee
NAMA Concept & Financial Pitch
C-Neutral CR
Cop 18
2012
Expansion
2013
NAMA Framework ready
2014
2016
NAMA Implementation
C-Neutral Roaster/exporter Pilots
2018
2020 2021 2022 2023
NAMA-Full Implementation
Key NAMA Elements
Payments for environmental services for agroforestry systems in the coffee sector
Coffee Farms
Fertilizer
Agroforestry systems
Coffee Mills
Reductions in methane emissions by the pulp.
Wastewater treatment
Coffee Farms
Payments for environmental services for agroforestry systems in the coffee sector
• Reductions in nitrous oxide emissions, by adoption of efficient practices and new technology of fertilizer application.
• Increased fixation and augmented carbon inventories by the spread of coffee agroforestry systems (intensified shading). • Promotion of affirmative climate change adaptation measures such as: soil conservation practices, introduction of coffee varieties adapted to climate change, increasing forest cover, risk management, etc., thus leveraging the synergies between adaptation and mitigation, being two sides of the same coin.
Coffee Mills
Payments for environmental services for agroforestry systems in the coffee sector
• Reductions in methane emissions by improved water management
systems and by introducing technologies for wastewater treatment. • Reductions in methane emissions through changing treatment plus savings in energy use by recycling pulp.
Impact on Cost Structure through Mitigation Payments for environmental services for agroforestry systems in the coffee sector Actions 100%
Insurance and tax Other Materials Waste treatment Fertlizing
50%
Materials
Other costs
Fire Wood
Labor
External services and transport Electricity
Harvest
Labor 0%
Costs atFarm farm level
Costs at mills Coffee Mill
We envision the NAMA as a business model not only for the coffee sector, but for the agricultural sector as a whole
Coffee Mils – Carbon Neutrality Five Coffee Mills were chosen to obtain the C Neutrality
Five Coffee Mils were chosen to measure their Carbon Footprint.
Advice and support for implementation of the guidelines.
Program concludes in early 2015
Contact information
Luis Zamora Quirós, National Coffee Manager Agriculture and Livestock Ministry of Costa Rica (MAG) Email:
[email protected]
With the support of:
Thank you
Thank you