Presentation by Zbig Karpowicz at VNN peatland workshop, Leeds 19th January 2012

1. Carbon Investment Opportunity:
Belarus Peatland Rewetting Project
Elnya Raised Bog – the largest Belarusian natural peatland

2. Why Belarus?
- Belarus is the country of
peatlands
- Peatlands cover 14.2% of
the territory of Belarus (2,9
mio ha)

3. BPR project – key features
• From 2012 onwards
• Additional area rewetted 2012-2015 – 9 440 ha
• Rewetted area managed: 18 020 ha
• TOTAL emission reductions 2011-2028 – 871000
tCO2e
• Finances using mechanisms of voluntary carbon
market
• Total project size: 4,5 mio euro

4. Map showing the location of Project sites
‘Old’ Project
sites – 9 sites
rewetted with
KfW funds in
2008- 2011
‘New’ Project
Sites – 5 sites
to be
rewetted with
HLG funds
starting 2012

5. Rewetting cycle
5. RESTORED 1. Selection of
PEATLAND degraded
peatland
2. Scientific
justification for
4. Construction peatland
works restoration
3. Design
documents for
construction
works

6. Current scenario description
From the proposed options the following "medium scenario“
foresees the following:
Additional area rewetted 2011-2015 – 9 440 ha
Additional area rewetted 2016-2020 – 0 ha
Emission reductions 2011 -2015 – 260 000 tCO2e
Emission reductions 2016 – 2020 – 365 000 tCO2e
Emission reductions 2021-2028 – 246 000 tCO2e
TOTAL reductions 2011-2028 – 871 000 tCO2e

7. National Carbon Project Cycle Conclusion of Initial
Memorandum of
Understanding
(MoU)* between
Ministry of
Environmental
Protection and
HLG/KfW
Conclusion of
Emission Reduction
Purchase
Agreement (ERPA)
between Project Entity
and HLG/KfW
• Submission of a Project
Idea Note (PIN) to the
Ministry for
Environmental
Protection for a Letter
of Endorsement.
• Submission of full
Project Design
Document (PDD) to the
Ministry. Issuance a
* Initial MoU becomes MoU after Letter of Approval is Letter of Approval
issued

8. Implementation Indicators
Preparation, Q3 2011-Q4 2011 Carbon, Q3 2011 – Q4 2015
• Letter of Endorsement (PIN)
• scientific justification
issued by the Ministry of
developed and approved Environment Q3 2011
• Letter of Approval (PDD) issued
by the Ministry of Environment Q4
2011
Contractual Q4 2011-Q3 2012 • PDD registered in VCS Q3 2012
• Positive Validation results Q3
2012
• Contracts with Design • Positive Verification results Q2
companies signed Q1 2012 2015
• Design documents approved
Q2 2012 Physical Q2-Q4 2012
• Contracts with Physical
Construction • Construction works
companies signed Q2 2012 performed/Rewetting
occurred

9. Carbon rights and contracts
According to Belarusian legislation (Presidential
Decree #625 and Provision of the Council of
Ministers #466)
– Project Entity (organization implementing emission
reduction project) has the right to the sell emission
reductions based on ERPA
– Ministry for the Environment based on confirmation
from independent verifying organization and MoU
transfers VERs to the buyer

10. Project entity in Belarus:
Limited company with foreign investments
Partners: APB-BirdLife Belarus (APB)
- largest environmental NGO in Belarus
- partner and/or implementing agency for all main peatland
related projects in BY
- 28 staff and over 150 service contracts, 1.3 mio euro / year
National centre for Biological Resources of
National Academy of Sciences of Belarus (NPC)
- leading national authority on biodiversity
- amalgamation of 4 academic institutes (Botany, Zoology,
Forest, Botanical Gardens)
- long-term partner in peatland restoration/conservation
projects
- over 300 staff, over 2 mio euro / year
Foreign Investor / Highly preferential
- the participation of HLG would properly positions of the Entity
within carbon cycle
- foreign investment company is the preference for APB and NPC

11. International carbon standards:
Double verification process
• World’s leading voluntary carbon - Voluntary Standard applied in addition
standard to VCS
• 2011 – amended to allow Peatland - Ascertains that projects:
Rewetting and Conservation Projects
(PRC) – in frames of KfW funded • minimize climate change
project • support sustainable development
• conserve biodiversity
• Approved monitoring and baseline
methodology is under development - in
frames of KfW funded project
completion in early 2012

12. International Carbon
Project Cycle Starts after finalization of
national carbon cycle and
receipt a Letter of Approval
from the Ministry of
Environment
Procedure
VCS Association
(Board and Secretariat) • Registration of the project
accredits appoints (PDD) and verification – i.e.
the process of auditing the
Project developer Validator & Verifier Registry Operator(s) emission reductions achieved.
Methodology Additionality Proof of title • Registration involves the
Validation
existing/new Test preparation of a validation
report report and its submission
Verification VCS registry VCU (together with other relevant
VCS PD Valid. & Verif.
report Serial No. Issuance documentation) to the VCS
Registry Operator.
Certification
statement • Verification involves the
preparation and submission of a
verification report. Once this
is approved, the VCS Registry
Operator will issue VCUs

13. Financial flows and ER estimation
assumptions
• Project starts 2011 with first advance payment in Q2-Q3 of
2011
• All rewetting works are finalized at the beginning of 2014
• Generation of ERs from the ‘new’ rewetted sites starts
2014

14. Project development beyond 2028
How much will be available:
• Balance at the Project end
(2028): c. 1 mio USD
Where the funds are to be directed:
• National regulation (Decree 466):
all income from carbon trade is to
be directed to further GHG
emission reductions activities
Project arrangements: MoU/ERPA will stipulate that surplus funds to be
directed to peatlands restoration/conservation
Beyond project decision – Project Entity Board will decide which sites to
be further rewetted or managed