Albania is contributing in carbon sequestration through forest regeneration This presentation was realised in World Bank workshop in Moldavia

1. .
. .
GOVER NMENT OF ALB ANIA THE WOR B
LD ANK
Ministry of ENVIR ONMENT FOR EST AND WATER ADMINISTRATION
Natural Resource Development Project
ALBANIA
Community – Based Carbon Sequestration
Prepared by: Dr.N.Collaku, H.Cani, P.Prenga, Gj.Fierza, H.Kola
Presented by Haki Kola, Moldavia 2006

4. Table of Contents
1. Project Description
2. Project benefits
3. Project management and
4. Institutional arrangements

5. Albanian Context
 Land degradation has been identified as a major
issue for the country, mainly due to uncontrolled
grazing
 Concerned communities have indicated that they
are keen to reverse this trend if some incentives
are made available
 This could be achieved if direct payments form
carbon credits would be made to local
communities in exchange for carbon
sequestration

6. Albanian experience
Before 1996…….
After 2004

7. Degradation can be
stopped through grazing
control and avoid human
negative impact

8. Pilot Carbon Project
The BioCarbon Fund (managed by the World
Bank) has expressed interest in purchasing
emission reductions from Albania, resulting
from a proposed afforestation/reforestation Pilot
carbon project which will be included in the
NRDP.

9. Activities Planned under NRDP
• Undertake a pilot carbon project through
afforestation and reforestation of
degraded land
• This will be done through setting aside
and protecting land to make natural re-
growth possible

10. Carbon sequestration project
1. Select the areas eligible under the CDM
2. Identify exactly the areas to be reforested-
Baseline study and carbon estimation
3. The BioCarbon Fund will enter an agreement
with the GOA to purchase the carbon
4. Undertake the reforestation activities on the lands
identified.
5. Report regularly to the BioCarbon Fund the state of the
afforestation and to obtain, upon the approval of the report
by the Fund, the carbon payments.

11. 5 Regions
Kukes
Shkoder
Dibra
Elbasan
Korce
Districts 10
Communes 24
Villages 107
N of Plots 200
Av_area 30 ha
Total project area: 6050 ha

12. N o . Of H a pe r
R e g io n D istrict Co mmune V illa g e s co mmune
DIBER Bulqize Ostren 2 105
DIBER Bulqize T rebisht 3 63.7
DIBER Bulqize Zerqan 3 80
DIBER Diber Maqellare 9 365
DIBER Diber Melan 8 434
DIBER Diber Sllove 8 319
DIBER Diber T omin 10 280
DIBER Mat B. Klos 6 1079
DIBER Mat Ulez 3 383
ELBASAN Elbasan Gjinar 6 282
ELBASAN Elbasan Labinot Mal 2 127.8
ELBASAN Elbasan Paper 4 311.3
ELBASAN Elbasan Shushice 1 147.5
ELBASAN Gramsh Pishaj 5 247.5
ELBASAN Librazhd Polis 2 170
KORCE Kolonje Barmash 3 265
KUKES Has Golaj 1 219.5
KUKES Kukes Bushtrice 5 260
KUKES Kukes Caje 3 167
KUKES Kukes Shishtavec 4 147.5
SHKODER Puke Qa-Mali 2 88.6
SHKODER Puke Qelez 9 175.3
SHKODER Puke Qerret 5 195
SHKODER Puke Rrape 3 138.75

13. Carbon sequestered by the
project
Estimate of Carbon Sequestered (tC)
180,000
Soil Carbon
160,000
Living Biomass
140,000
120,000
100,000
80,000
60,000
40,000
20,000
-
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20

14. YEAR
ERPA AGREEMENT
PERIOD ANNUAL AMOUNT OF CUMULATIVE AMOUNT OF REMAINDER ERS TO
CONTRACT ERS CONTRACT ERS BE SET ASIDE
1 2006 0 0 514
2 2007 5,137 5,137 1,280
3 2008 23,425 28,562 2,603
4 2009 22,876 51,438 2,542
5 2010 22,333 73,771 2,482
6 2011 26,561 100,332 2,951
7 2012 26,115 126,447 2,902
8 2013 21,781 148,228 2,420
9 2014 21,273 169,501 2,364
10 2015 20,775 190,276 2,308
11 2016 20,283 210,559 2,254
12 2017 19,801 230,360 2,200

15. Benefits
 Creation of high forest which is of more benefit than
shrub lands or bare land;
 Provision of employment to undertake necessary
silvicultural activities (within NRDP);
 Steady and guaranteed income from the sale of
carbon.

16. Carbon monitoring process and verification

17. Selected species
Area ha for afforestation for each year
Selected species Total USD/ha
1 2 3 4 5
Acer sp. 0,0 49,0 37,0 0,0 0,0 86,0 233
Castanea sativa 0,0 279,0 280,0 0,0 0,0 559,0 233
Cerasus avium 0,0 15,0 20,4 0,0 0,0 35,4 233
Fagus sylvatica 0,0 0,0 3,0 0,0 0,0 3,0 233
Fraxinus excelsior 0,0 0,0 10,0 0,0 0,0 10,0 233
Juglans regia 0,0 16,0 42,0 0,0 0,0 58,0 233
Quercus sp. 0,0 318,0 364,0 0,0 0,0 682,0 233
Betula verrucosa 198,0 186,0 60,0 0,0 0,0 447,0 289
Pinus sp. 0,0 176,0 183,0 0,0 0,0 359,0 300
Populus canadensis 0,0 62,0 66,0 0,0 0,0 128,0 228
Robinia pseudoacacia 467,0 432,0 18,0 0,0 0,0 917,0 273
665,0 1533,0 1083,4 0,0 0,0 3281,4

18. Main issues:
• Who does own the carbon sequestration
rights of this project?
• Who will manage the project?
• Who will receive the payments made from
selling carbon sequestration rights?
• How the World Bank will pay the money?
• How the local villages can benefit form the
carbon payments?

19. Who does own the carbon sequestration rights
of this project?
The state owns the tradeable rights in sequestered carbon
because it owns the sequestered carbon as part of the tree.

20. Who will manage the project?
The Carbon Sequestration project is based on Forest and
Pasture User Associations (FPUAs).
 An FPUA will make an agreement with a commune to
use a part of the communal forest land under the
management of the commune for the purposes of the
project
 FPUAs will be responsible for the planting and tending
of the trees
 FPUAs will be the recipients of the payments for
sequestered carbon received from the World Bank.

21. How will the money be transferred to the FPUAs?
1. The state would contract to sell those rights – carbon
credits – to the World Bank;
2. the World Bank would pay the price for the carbon
credits into the bank account which will be directly under
control and management of the FPUAs involved in the
project.
3. This can be done if the selected 24 FPUAs create an
association – a Communal Forests Users Carbon
Association (CFCUA) – with a bank account.

22. Albanian
BioCF
Gov.
Carbon Association
FUA FUA FUA FUA FUA FUA FUA
Village Village Village Village
Village Village
Village Village Village Village Village
Village Village
Village Village Village Village Village Village Village
Village Village Village Village Village Village

23. Institutional arrangements for carbon payements:
Benefit sharing
= Internal administrative arrangement
BioCF
= Contracts
= Cash flow
ERPA = Report Verification
5 DOE
Government 2 Carbon association
Carbon association 4 Monitoring Body
Of Albania
Bank account
Bank account (DGFP, commune,
Private consultant)
3 3 3
3 3 3
FUA FUA FUA FUA FUA FUA
Reinvestments Funds

24. Monitoring and reporting system
 The BioCF will pay the carbon credits upon the delivery of a
report
 The payments could be on annual basis or more (can vary
between 1 to 5 years)
 The payments delivery will depend on the agreement between the
GoA and the BioCF
 The report will be based on monitoring activities to be carried out
on the field
 The annual monitoring will be more general and it aims to
demostrate the permanence of the afforestation
 The every 5 year monitoring will be more accurated and it should
be carried out by skilled personnel

25. Monitoring and data transmission
Executive Board
World Bank
Albanian GOV
Data and report (After verification)
(on annual basis)
Data and report
Carbon Association (each 5 year period)
Data and report
DFOs, Regional federation FUAs
Communes, Private consultants
Monitoring
site1 site 2 site 3 site 4 Site ….

26. Carbon Association
 Small organization.
 Small staff (one official), paid for out of the monies received by the
project from the World Bank.
 The official would report quarterly to the management committee of
the Association which would consist of one representative of each of
the FPUAs involved in the project.
 If it were found convenient to do so, the management committee could
elect a smaller sub-committee which would meet monthly with the
official to discuss the management of the project, monitoring, the funds
of the project and any other issues that were being raised by the
constituent FPUAs.
 It would be better if the Association would be part of the National
Association of FPUAs, but always having a separate Bank Account.

27. This Carbon Association would be
responsible for:
 Receiving carbon payments from the World Bank and
providing a receipt therefore;
 Paying sums out for administrative expenses in connection
with the project; and to project FPUAs for environmental and
social improvement expenditure;
 Arranging for the monitoring of project forests for purposes
of certifying to the World Bank that the forests are being
managed satisfactorily, monies received are being spent
properly and carbon is being sequestered and stored in
accordance with the terms of the project.

28. How the local villages can benefit form the
carbon payments?
 The carbon payments will be transferred from the Carbon Association to
each commune in the FPUA account
 The amount of carbon payments will depend on the amount of ha of each
commune .
 The FPUA should produce a management plan for the expenditure of the
carbon payments on environmental and social improvements
(reinvestment fund) within the villages involved in the project
proportionally to the land made available to the project in each village.
 The activities implemented in each village shall employ preferably local
labor, thus persons in the villages most closely involved in the project
shall be the first to be offered employment in and about the project and the
project forest, including work on environmental and social improvements.
 The FUA should maintain proper accounts of any expenditure of Project
payments and will permit the Commune, the DFS and officers of the
CFCUA to check on and audit those accounts.

29. .
. .
GOVER NMENT OF ALB ANIA THE WOR B
LD ANK
Ministry of Environment, Forest and Water Administration
Natural Resource Development Project
THANK YOU FOR
ATTENTION
The presentation was based on study done by