NAMA proposal for the Costa Rican

coffee sector"
November22nd2011
[ working draft]!
Sols, H. hortensiasolis@co2.cr!
Jimnez, R. robertojimenez@co2.cr!
Bermdez, E. estebanbermudez@co2.cr!
Keymessages
Improve production security:!
110% increase in national coffee harvest!
"
Reduce GHG emissions:!
26 million metric tons of CO2e reductions *!
"
Adapt to climate change:!
40% of coffee plants renovation with resilient variety!
90% of crops with shade trees!
!
* preliminary data!
2
Central Americas economy is extremely vulnerable to climate
change. Adaptation in the agriculture sector is urgent.!
3
Source: CEPAL, 2010!
Our analysis demonstrates that climate change
is already having adverse impacts over the
production of some crops.


As a result accumulated losses will be
approx. 4% of 2007 GDP when using a
discount rate of 4%... however these grow to
8-12% when a 2% societal discount rate is
employed


It is fundamental to adopt measures to reduce
the causes of climate change, however perhaps
its more important that the countries
implement adaptation measures.
Today, Costa Ricas agriculture sector presents a signicant
opportunity for greenhouse gas mitigation.!
4
0!
100!
200!
300!
400!
500!
600!
700!
800!
900!
1,000!
1,100!
2002! 2003! 2004! 2005! 2006! 2007! 2008!
Fertilizer consumption "
(kilograms per hectare of arable land)!
Costa Rica! Latin America & Caribbean! World!
Energy 46%!
Industrial Processes 6%!
Agriculture
37%"
Waste 11%!
Source: IMN, 2008!
Greenhouse gas emissions"
(Percentage of national emissions, 2005)!
Source: World Bank, 2008!
To 2030, globally, largest abatement levers are in power and forestry.
However, Costa Ricas levers lie in transport, agriculture and waste.!
5
Source: McKinsey, 2010!
Global GHG abatement potential"
(in GtCO
2
e)!
National GHG emissions"
(in MtCO
2
e)!

We already have a low-CO

2
power and forestry sector!
Source: Ministry of Environment/INCAE/FUNDECOR, 2010!
Energy
(65% Transportation)!
Electricity!
2
0
1
0
!
2
0
1
2
!
2
0
1
4
!
2
0
1
6
!
2
0
1
8
!
2
0
2
0
!
2
0
2
2
!
2
0
2
4
!
2
0
2
6
!
2
0
2
8
!
2
0
3
0
!
2
0
0
8
!
Other!
Solid waste!
Agriculture!
Forestry!
0!
5,000!
10,000!
15,000!
20,000!
25,000!
30,000!
35,000!
In todays period of reduced budgets, agriculture and waste
NAMAs offer signicant opportunities at low capital intensities. !
6
Capital intensity by abatement measure"
Capital intensity by abatement measure"
Source: McKinsey, 2009!
Transport, our largest source of emissions,
is most capital intensive.
G
H
G

e
m
i
s
s
i
o
n
s

(
K
g

C
O
2
e
)
!
The coffee sector, with its high use of fertilizer, has the largest
emissions rate of N
2
O in the agriculture sector. !
7!
- !
500 !
1,000 !
1,500 !
2,000 !
2,500 !
3,000 !
3,500 !
4,000 !
4,500 !
5,000 !
G
H
G

e
m
i
s
s
i
o
n
s

(
K
g

C
O
2
e
)
!
Methane
(46%)"
Nitrous oxide
(54%)"
Sources: IMN, 2008; MAG, 2009!
-
500
1,000
1,500
2,000
2,500
Cattle (40%)"
G
H
G

e
m
i
s
s
i
o
n
s

(
K
g

C
O
2
e
)
!
-
500
1,000
1,500
2,000
2,500
Coffee (24%)"
Sugar cane (11%)!
Bananas (8%)!
Other (11%)!
Rice (5%)!
Other (<1%)!
CostaRicahasahistoryofbeingalaboratoryfortesCngnaConal
environmentalprograms
Agoodexampleisthe
PaymentforEnvironmentalServices(PSA)mechanism
8
Implementation of
1
st
generation of PSA!
Source:MINAET,2009.FONAFIFO,2011.
67%
77%
56%
63%
45%
59%
50%
31%
32%
21%
29%
42%
48%
53%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1940 1943 1950 1960 1961 1966 1970 1983 1986 1987 1991 1997 2000 2005
We would like to take a climate-smart approach for the coffee NAMA to
address interlinked issues of population, climate and food security.!
9!
Global need to
increase food
production 70%
by 2050 "
Climate change"
!
Temperature change!
!
Precipitation change!
Source: FAO, 2010!
Food security"
!
Quantity change!
!
Quality change!
Connected"
Decreased production!
Increased diseases!
Decreased crop viability!
Increased prices!
Increased fertilizer use!
Increased deforestation!
In our climate smart approach, we will optimize mitigation actions
by deriving co-benets for production and adaptation. !
10!
Mitigation! Production! Adaptation!
Current!
situation !
10% of CRs GHG
emissions come from
coffees N
2
O derived use!
2,2 million sacs in
90,000 Ha (2010-2011);
d,!
95% of the coffee
plants are have low
production, age
exceeds the shelf life!
On 2010-2011,
weather events
affected the coffee
production:
loss of 150,000 sacs !
Actions!
Accurate fertilization;!
Effective use of fertilizers;
Energy efciency;
Cogeneration; and
Wastewater management!
Coffee plants
renovation!
!
Management of the
shade trees; !
Genetic
improvements; and!
Plants renovation!
Results (2035)!
Potential reduction of
26 million tCO2e
(2015 2035)!
!
110% increase in
national coffee harvest
(compared to 10-11)"
40% of coffee plants
renovation with
resilient variety!
90% of crops with
shade trees !
We have indentied 7 mitigation actions focused on the highest
GHG-intensive stages of coffees life cycle: farms and mills. !
11!
A climate-smart coffee sector can serve as a model to transition the
Costa Rican agricultural sector towards national green economy goals.!
12!
1980! 1990! 2000! 2011! 2030! 2040! 2050"
Green
economy!
Socio-economic
development!
Time!
Emissions linked
to development"
Emissions independent
from development"
2021"
Peak
year!
eco-
competitiveness"
Transition"
towards"
Carbon neutral growth"
Coffee
NAMA"
Case study: Coopedota, R.L. achieved carbon neutrality for the
whole life cycle of the coffee it produced!
13 Source: Coopedota, 2011!
Farms! Mill! Transport! Roasting!
Consump-
tion!
Waste!
94%" 4%" 2%" Neutralized by consumers"
62%" 1%" 5%" 15%" 8%" 9%"
Methodology for quantifying products life cycle GHG emissions"
Export
20,000 fanegas!
National
500 fanegas!
1,800 tCO
2
e!
69 tCO
2
e!
1,869 tCO
2
e"
Case study: Dole has developed an integrated program to reduce
emissions from its fresh fruit exporting operations. !
14
Source:Dole,2010
OUseoftrain
toTransport
fruits
OGreen
containers
program
OFuelsaving
indocks
OReforestaCon
andforest
protecCon
OEciente
drivingtraining
OVortex
valvesfor
generators
O Fer)lizer
useop)-
miza)on
OSoil
conservaCon
program
ORefri-
gerants
reducCon
program
0
10
20
30
40
50
60
70
80
90
100
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
2005 2006 2007 2008est 2009est
R
e
f
r
i
g
e
r
a
n
t
s

(
t
o
n
s
)
!
t
C
O
2
e
!
Metric tons of CO2e from refrigerants
(2005-2009 estimate)"
tCO2e! Refrigerantes (TM)!
0!
5,000!
10,000!
15,000!
20,000!
Commercial! Optimized!
t
C
O
2
e
!
Fertilization Program!
Optimized Fertilization Program"
A number of organizations in the coffee sector have begun to
meet and coordinate activities to deliver a NAMA during 2012.!
15
Coee
sector
NAMA
R&Dcenters
Universi)es
Government
Industry
NGOs
We need technical and nancial support to develop a full-edged
NAMA by 2012, with implementation likely before 2015.!
16!

I
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Shortterm Mediumterm Longterm

2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034
N
a
)
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n
a
l

a
c
)
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n
s

COP16
Cancn !
Carbon neutral
coffee!
Agricultural policy!
COP17
Durban !
Financing of NAMA"
Rio+20"
Execution of NAMA"
Monitoring/reporting! Monitoring/reporting!
Monitoring/reporting! Monitoring/reporting!
Verication! Verication! Verication! Verication!
NAMA proposal!
NAMA for coffee sector"
Hortensia Sols "
hortensiasolis@co2.cr !
17
Contact us"
Roberto Jimnez"
robertojimenez@co2.cr !
Esteban Bermdez"
estebanbermudez@co2.cr !