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Livestock NAMAs in Kenya, Mongolia and Kyrgyzstan
Science-policy-livelihood progress through livestock-related
NAMAs in Costa Rica, Kenya and Mongolia
Timm Tennigkeit,
SBSTA 42 Side Event
Friday June 5 2015, Bonn
© UNIQUE forestry and land use GmbH
Livestock NAMA – Global potential
1. Impact
• Mitigation: Sector accounts for 14.5% ~ 7.1 GtCO2-eq p.a. ; emission reduction
potential 30% ~ 2.1 GtCO2-eq p.a.
• Adaptation: Restoring grasslands – ecosystem based adaptation –, enhancing
resilience of 600 M livestock-based livelihoods
2. Paradigm shift (impact beyond the project): High momentum of sustainability issues
in a rapidly growing sector can be addressed by shifting consumption, reducing waste
and investing in the competitiveness of sustainable and low emission production
3. Sustainable development: Ecosystem resilience; social benefits e.g. improved
livelihoods and nutrition; economic benefits e.g. increased income, employment i.e.
1,000 l milk production generating on average over 70 direct jobs at farm level and
30 jobs in the value chain (smallholder production).
4. Needs of the recipient: Targeting rural poor engaged in livestock-based livelihoods
5. Country ownership: National development and INDC priority in many countries
6. Efficiency and effectiveness: Livestock sector, in particular dairy, often has already
relatively well established institutions, value chains and can leveraging private
sector finance, innovations and expertise
2
© UNIQUE forestry and land use GmbH
Dairy NAMA development in Kenya , with CCAFs support
Theory of change
 The NAMA will address systematic barriers (e.g. lack of supporting services and
market access, fragmented value chains) to transform the sector
 Key interventions contribute to the achievement of national development strategies
and encourage private sector participation by providing market-led opportunities
and incentives, increasing the efficiency and competitiveness of the dairy value
chain and supporting stable milk supply to dairy processors
 Implementation will be through regional private and public financed initiatives
Financing and resource leverage
 Private sector investments in technology and extension to increase long-term milk
supply and improve milk quality
 Public support from County Development Funds and development partner
3
© UNIQUE forestry and land use GmbH
Dairy NAMA development in Kenya (cont.)
 Impact: Mitigation potential of 2 MtCO2-eq p.a. in 2025,
representing 3.3% of Kenya’s 2010 GHG emissions;
food & nutrition security for 30 million consumers
 Paradigm shift: Africa as a whole has a milk deficit resulting in
increasing imports and child malnutrition. Even Kenya with the most
advanced dairy industry outside SSA is facing this problem.
Considering that 80% of smallholder farms are engaged in
dairy and that the sector is relatively well organized a dairy
NAMA can be scaled to 1.8M households in Kenya and lessons
learned adopted across Sub-Saharan Africa.
 Sustainable development: Dairy is a dynamic and well
organized industry in Kenya, contributing 4% to GDP or
more than US$ 1 Billion to the economy, sustaining
700,000 families & generating 180,000 jobs in the value chain.
 Efficiency and effectiveness: Linking smallholder dairy
producer to the market can increase income by
US$ 1,000-2,000 per farmer per year.
4
© UNIQUE forestry and land use GmbH
Mongolia‘s livestock NAMA, with ADB support 5
 Impact: Grassland restoration has a technical mitigation potential of
29 MtCO2-eq p.a. This is 1/3 of energy sector technical potential and
18 times larger than industry potential, but there are more barriers
to adoption in grassland management. Livestock interventions, i.e.
changing heard size and structure, improved breeding has a technical
mitigation potential of 457,000 tCO2e p.a. Both interventions increase
climate resilience and livelihoods.
 Paradigm shift: Interventions will be catalytic for developing markets
for quality meat and cashmere. A number of other Central Asian
countries will benefit from lessons learned.
 Sustainable development: Alignment with National Livestock
programme ensures policy coherence and leverage resources
 Efficiency and effectiveness: Grassland restoration and livestock
interventions (except fodder production) are financially
viable and result in internal rate of returns of between 15 and 30%.
Abatement costs are quite attractive compared with the energy and
industry sector. In addition to the economic gains they generate
environmental and social benefits.
© UNIQUE forestry and land use GmbH
Beef NAMA development in Kyrgyzstan, with GIZ support
 Impact: Mitigation potential of 90,000 tCO2-eq p.a. when only 30 % of the beef is
produced more efficient i.e. better feeding and animal health resulting in lower
emissions per product unit. In addition, 160,000 tCO2-eq p.a. from soil carbon
sequestration on sustainably managed pasture. Efficient beef production will
increase resilience of smallholder production, generate rural employment and
improve livelihoods.
 Paradigm shift: Ongoing livestock investments focus on pasture management. Beef
value chains based on more efficient and quality production will strengthen
adoption of sustainable pasture management.
 Sustainable development: Economic development and sustainable land use can go
hand in hand. Joining the Eurasian Customs Union will provide huge beef export
opportunities to Kazakhstan and Russia linked to employment and tax revenues.
Currently 50 % (9.2 M ha) of pasture is degraded resulting in insufficient grazing
opportunities and reduced water holding capacity. Introducing animal health control
& incentives for quality and efficiency livestock production will generate economic,
environmental and social returns.
 Efficiency and effectiveness: € 10 M investment in
animal health control system will leverage € 100-200 M
p.a. in beef export revenues and related private sector
investments, employment opportunities and tax
revenues
6
© UNIQUE forestry and land use GmbH
Way forward 7
 Livestock is globally emerging as a sweet spot for climate-smart agricultural
investments.
 Respective investments can have strong mitigation and adaptation impacts, but
require a value chain approach to deliver related environmental and poverty
reduction benefits as demonstrated in all three Livestock NAMA case studies.
 NAMAs are a flexible instrument for supporting the implementation of Intended
Nationally Determined Contributions (INDCs). Hence they are well aligned with
country and sector specific needs while leveraging and integrating different
private and public resources.
 The Green Climate Fund is expected to be the main financing mechanism for
Livestock NAMAs. Assessment criteria for the NAMA Facility and the Green
Climate Fund are similar. Therefore, project developer may consider both
options together with eligible/accredited financing partner.
 Participation of the private sector is key for any Livestock NAMA considering
their operational experience, innovation and to ensure long-term sustainability
 CCAFS together with its public and private partners is providing the science base
and support for Livestock NAMA design and implementation across regions.
KONTAKT
CONTACT
CONTACTO
UNIQUE forestry and land use GmbH
Schnewlinstr. 10
79098 Freiburg, Germany
Tel: +49 - 761 20 85 34 - 0
Fax: +49 - 761 20 85 34 - 10
unique@unique-landuse.de
www.unique-landuse.de
Timm Tennigkeit
Timm.Tennigkeit@unique-landuse.de
+49 761 20 85 34 27

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SBSTA Side Event presentation: Livestock NAMAs in Kenya, Mongolia, and Kyrgyzstan by Timm Tennigkeit, UNIQUE Forestry and Land Use

  • 1. Livestock NAMAs in Kenya, Mongolia and Kyrgyzstan Science-policy-livelihood progress through livestock-related NAMAs in Costa Rica, Kenya and Mongolia Timm Tennigkeit, SBSTA 42 Side Event Friday June 5 2015, Bonn
  • 2. © UNIQUE forestry and land use GmbH Livestock NAMA – Global potential 1. Impact • Mitigation: Sector accounts for 14.5% ~ 7.1 GtCO2-eq p.a. ; emission reduction potential 30% ~ 2.1 GtCO2-eq p.a. • Adaptation: Restoring grasslands – ecosystem based adaptation –, enhancing resilience of 600 M livestock-based livelihoods 2. Paradigm shift (impact beyond the project): High momentum of sustainability issues in a rapidly growing sector can be addressed by shifting consumption, reducing waste and investing in the competitiveness of sustainable and low emission production 3. Sustainable development: Ecosystem resilience; social benefits e.g. improved livelihoods and nutrition; economic benefits e.g. increased income, employment i.e. 1,000 l milk production generating on average over 70 direct jobs at farm level and 30 jobs in the value chain (smallholder production). 4. Needs of the recipient: Targeting rural poor engaged in livestock-based livelihoods 5. Country ownership: National development and INDC priority in many countries 6. Efficiency and effectiveness: Livestock sector, in particular dairy, often has already relatively well established institutions, value chains and can leveraging private sector finance, innovations and expertise 2
  • 3. © UNIQUE forestry and land use GmbH Dairy NAMA development in Kenya , with CCAFs support Theory of change  The NAMA will address systematic barriers (e.g. lack of supporting services and market access, fragmented value chains) to transform the sector  Key interventions contribute to the achievement of national development strategies and encourage private sector participation by providing market-led opportunities and incentives, increasing the efficiency and competitiveness of the dairy value chain and supporting stable milk supply to dairy processors  Implementation will be through regional private and public financed initiatives Financing and resource leverage  Private sector investments in technology and extension to increase long-term milk supply and improve milk quality  Public support from County Development Funds and development partner 3
  • 4. © UNIQUE forestry and land use GmbH Dairy NAMA development in Kenya (cont.)  Impact: Mitigation potential of 2 MtCO2-eq p.a. in 2025, representing 3.3% of Kenya’s 2010 GHG emissions; food & nutrition security for 30 million consumers  Paradigm shift: Africa as a whole has a milk deficit resulting in increasing imports and child malnutrition. Even Kenya with the most advanced dairy industry outside SSA is facing this problem. Considering that 80% of smallholder farms are engaged in dairy and that the sector is relatively well organized a dairy NAMA can be scaled to 1.8M households in Kenya and lessons learned adopted across Sub-Saharan Africa.  Sustainable development: Dairy is a dynamic and well organized industry in Kenya, contributing 4% to GDP or more than US$ 1 Billion to the economy, sustaining 700,000 families & generating 180,000 jobs in the value chain.  Efficiency and effectiveness: Linking smallholder dairy producer to the market can increase income by US$ 1,000-2,000 per farmer per year. 4
  • 5. © UNIQUE forestry and land use GmbH Mongolia‘s livestock NAMA, with ADB support 5  Impact: Grassland restoration has a technical mitigation potential of 29 MtCO2-eq p.a. This is 1/3 of energy sector technical potential and 18 times larger than industry potential, but there are more barriers to adoption in grassland management. Livestock interventions, i.e. changing heard size and structure, improved breeding has a technical mitigation potential of 457,000 tCO2e p.a. Both interventions increase climate resilience and livelihoods.  Paradigm shift: Interventions will be catalytic for developing markets for quality meat and cashmere. A number of other Central Asian countries will benefit from lessons learned.  Sustainable development: Alignment with National Livestock programme ensures policy coherence and leverage resources  Efficiency and effectiveness: Grassland restoration and livestock interventions (except fodder production) are financially viable and result in internal rate of returns of between 15 and 30%. Abatement costs are quite attractive compared with the energy and industry sector. In addition to the economic gains they generate environmental and social benefits.
  • 6. © UNIQUE forestry and land use GmbH Beef NAMA development in Kyrgyzstan, with GIZ support  Impact: Mitigation potential of 90,000 tCO2-eq p.a. when only 30 % of the beef is produced more efficient i.e. better feeding and animal health resulting in lower emissions per product unit. In addition, 160,000 tCO2-eq p.a. from soil carbon sequestration on sustainably managed pasture. Efficient beef production will increase resilience of smallholder production, generate rural employment and improve livelihoods.  Paradigm shift: Ongoing livestock investments focus on pasture management. Beef value chains based on more efficient and quality production will strengthen adoption of sustainable pasture management.  Sustainable development: Economic development and sustainable land use can go hand in hand. Joining the Eurasian Customs Union will provide huge beef export opportunities to Kazakhstan and Russia linked to employment and tax revenues. Currently 50 % (9.2 M ha) of pasture is degraded resulting in insufficient grazing opportunities and reduced water holding capacity. Introducing animal health control & incentives for quality and efficiency livestock production will generate economic, environmental and social returns.  Efficiency and effectiveness: € 10 M investment in animal health control system will leverage € 100-200 M p.a. in beef export revenues and related private sector investments, employment opportunities and tax revenues 6
  • 7. © UNIQUE forestry and land use GmbH Way forward 7  Livestock is globally emerging as a sweet spot for climate-smart agricultural investments.  Respective investments can have strong mitigation and adaptation impacts, but require a value chain approach to deliver related environmental and poverty reduction benefits as demonstrated in all three Livestock NAMA case studies.  NAMAs are a flexible instrument for supporting the implementation of Intended Nationally Determined Contributions (INDCs). Hence they are well aligned with country and sector specific needs while leveraging and integrating different private and public resources.  The Green Climate Fund is expected to be the main financing mechanism for Livestock NAMAs. Assessment criteria for the NAMA Facility and the Green Climate Fund are similar. Therefore, project developer may consider both options together with eligible/accredited financing partner.  Participation of the private sector is key for any Livestock NAMA considering their operational experience, innovation and to ensure long-term sustainability  CCAFS together with its public and private partners is providing the science base and support for Livestock NAMA design and implementation across regions.
  • 8. KONTAKT CONTACT CONTACTO UNIQUE forestry and land use GmbH Schnewlinstr. 10 79098 Freiburg, Germany Tel: +49 - 761 20 85 34 - 0 Fax: +49 - 761 20 85 34 - 10 unique@unique-landuse.de www.unique-landuse.de Timm Tennigkeit Timm.Tennigkeit@unique-landuse.de +49 761 20 85 34 27