Influence Voluntary Carbon Credit Markets Foster Sustainable Livelihoods for Poor Communities 

Welcome to CENFACS’ Online Diary!

08 March 2023

 

Post No. 290

 

 

The Week’s Contents

 

• Climate Action 2: Influence Voluntary Carbon Credit Markets Foster Sustainable Livelihoods for Poor Communities 

• Nature Projects and Nature-based Solutions to Poverty – Activity for Week Beginning 06/03/2023: Participating to a Survey on Genetic Diversity

• Nature-based Solutions to Poverty and Technology-based Solutions to Poverty

 

… And much more!

 

 

 

Key Messages

 

• Climate Action 2: Influence Voluntary Carbon Credit Markets Foster Sustainable Livelihoods for Poor Communities 

 

Climate Action 2 will be held from 08 to 14/03/2023.  It is about trying to have an effect on  voluntary carbon credit markets so that they can promote means of living that are continued over the long term without adversely effecting poor communities.

Indeed, a voluntary carbon credit market as an exchange mechanism which brings together the sellers and buyers of carbon emission allowances can be influenced.  Influencing this type of market can pose two problems.

Firstly, this market is voluntary, that is sellers and buyers are acting by free choice/will, not by compulsion to reduce greenhouse gas emissions.  As specified in the Article 6 of the Paris Agreement (1), countries can voluntarily cooperate with each other to achieve emission reduction targets sets out in their nationally determined contributions.  If this is the case, then why influencing them.

Secondly, influence could mean having a power to have an effect over either sellers or buyers or the product or the result from this exchange mechanism.  This can raise the debate over free market or controlled market despite the fact that any market could be subject to influences anyway.

The kind of influence we are arguing about is different from the general market influences or factors like inflation, economic growth, currency exchange rate, market sentiment, geo-economic conflicts (e.g., Russia-Ukraine conflict), etc.  The kind of influence we are dealing with is more specific such as the pricing of carbon credits, the quality of credit costs of carbon credits, pricing of value delivered, etc.  The kind of influence we are looking for is for these markets to encourage the development of sustainable livelihoods, particularly but not exclusively for the poor communities.

The above is the first key message of this week’s post.  To find out more about this key message, please read under the Main Development section of this post.

 

 

• Nature Projects and Nature-based Solutions to Poverty – Activity for Week Beginning 06/03/2023: Participating to a Survey on Genetic Diversity

 

We are conducting a Survey on Genetic Diversity, as part of Nature Projects.  The purpose of this survey on Genetic Diversity is to collect information from a sample of our users  regarding the Maintenance of Genetic Diversity within population of wild and domesticated species.  Participation to this survey is voluntary.

To help participants take part in this survey, let us explain two key concepts of this survey, which are: genetic diversity and genetic resources.  To explain both concepts, we are going to refer to the Oxford Dictionary of Environment and Conservation by Chris Park (2).  In this dictionary, it says that

“Genetic diversity is the number of different types of genes in a species or population, which is a measure of biodiversity” (p. 187)

“Genetic resource is genetic material of plants, animals, or micro-organisms that is of actual or potential value as a resource for humans” (p. 188)

Knowing these two concepts, it is possible to respond to the questionnaire constituent of the survey.  Amongst the survey questions are the following three ones relating to the use of genetic resources, resources sharing and the protection of traditional knowledge:

 

a) What benefits do you find in using genetic resources?

b) What is your experience or view about fairly and equitably sharing resources with indigenous peoples and local communities?

c) What can be done to protect traditional knowledge associated with genetic resources?

 

You can answer and directly send your answer to CENFACS. 

 

• Nature-based Solutions to Poverty and Technology-based Solutions to Poverty

 

We are continuing to work on nature-based solutions to poverty.  As part of this continuation, we are putting two solutions together to help reduce poverty.  These two solutions are nature- and technology-based.

 

• • Nature-based Solutions to Poverty

 

Nature-based Solutions can be understood from the definition of ‘climatechampions.unfccc.int’ (3) as:

“Actions and policies that protect, manage and restore natural ecosystems, while addressing social challenges”.

Because we are arguing about Nature-based Solutions to Poverty, we are going to work with nature to address social challenges (like social poverty) while making sure that both our project beneficiaries and biodiversity benefit.

 

• • Technology-based Solutions to poverty

 

Technology-based Solutions are the process of finding answers to problems using scientific knowledge and technical skills.  This process can include the transfer of devices and the transmission of knowledge, know-how, skills, digital services, etc.

Technology-based Solutions to poverty are processes that use technologies to reduce or end poverty.  For example, one can use technologies like mobile phone, computer, laptop, tablet, and other electronics to help reduce technology poverty.  Likewise, one can provide renewable energy generation facilities in poor communities to help these communities benefit from clean energy.

 

• • Nature- and Technology-based Solutions to Poverty

 

This week, we are combining the two solutions (technology- and nature-based) in the efforts we are deploying together with the community and our Africa-based Sister Organisations to find solutions to the problems they are facing.  In this quest for two solutions, donating net-zero technologies can help to meet their needs.

For those members of our community and Africa-based Sister Organisations wanting to find out more and or work with us on Nature-based Solutions to Poverty and Technology-based Solutions to poverty, they can contact CENFACS.

 

Extra Messages

 

• Climate-induced Poverty and Poverty Caused by Natural Events in Africa

• All-year Round Projects Cycle (Triple Value Initiatives Cycle) –Step/Workshop 3: Conducting a Feasibility Study on your Play, Run and Vote Projects

• CENFACS’ be.Africa Forum Discusses Ways of Broadening Local Contribution to Local Charitable Causes

 

 

• Climate-induced Poverty and Poverty Caused by Natural Events in Africa

 

Climate action is also about taking steps to deal with the consequences of adverse climate change on other people’s lives.  One of these consequences could be the creation or exacerbation of climate poor because of treacherous weather events such as drought, torrential rains, floods, earthquakes, rise in sea levels, etc.  These situations or events can create situational/transitory poverty.

For example, assessing the crop prospects and food situation in the world, the Food and Agriculture Organisation of the United Nations (4) found that

“About 1.4 million people in Burundi were estimated to be facing acute food insecurity (Integrated Food Security Phase Classification 3 [crisis] and above between October and December 2022”. (p. 2)

This acute food insecurity was due to erratic February – May rains in some central and south-eastern areas which affected pulses production.  This is without forgetting the lingering socioeconomic impact of the COVID-19 pandemic and high food price.

Since situational/transitory poverty is one the seven goals of CENFACS’ 2020s Development Agenda and Poverty Reduction Programme (5), we are carrying on the work on this type of poverty.  This time, the focus on situational/transitory poverty will be on the one that is caused by climate change events.  Depending on the intensity and power of these events, they can seriously or less harm people.  These events can also lead to acute human insecurity and eventually push people to poverty line of all kinds (in food, health, education, housing, etc.

So, the need to take action against worsening poverty in Africa is at the same time an action against climate-induced poverty and poverty caused by natural events.  Reducing Climate-induced Poverty and Poverty Caused by Natural Events in Africa can be the goal to pursue this March 2023.

For those who may be interested in this action and would like to work with us to support climate-induced poor, they can contact CENFACS.

 

 

• All-year Round Projects Cycle (Triple Value Initiatives Cycle) –

Step/Workshop 3: Conducting a Feasibility Study on your Play, Run and Vote Projects

 

In this 3rd step or workshop, users will learn (for those users who are new to project planning) or revisit (for those who are familiar with project planning) the evaluation of the practicality of their chosen Play or Run or Vote project.  In project planning terms, it means they need to conduct feasibility study.  But, what is feasibility study?

 

• • Basic understanding of feasibility study

 

Feasibility study is a ‘go/no-go’ decision time for any project planner.  In other words, it is the time when an All-year-round project user will decide whether or not to continue with their proposed project.

As ‘simplilearn.com’ (6) puts it,

“A feasibility study is a comprehensive evaluation of a proposed project that evaluates all factors critical to its success in order to assess its likelihood of success”.

Referring to this definition or any suitable definition, All-year-round project users will look at the practicality of the Play, Run and Vote projects from the perspective of required cost and expected value.

 

• • Types of feasibility

 

Feasibility can cover many aspects of the project to be implemented; aspects like technical, economic, financial, operational, legal, etc.  To simplify the matter, we are going to limit in this workshop to the technical and economic aspects of feasibility study; leaving to those who would like to dive deeper into feasibility study to let us know what other aspects of feasibility study they may be interested in.

The technical feasibility of your Play, Run and Vote projects will include the technical resources and capacities to convert your idea of playing, running and voting into a workable or working project.  The economic feasibility will analyse the cost and benefit of the same projects.

 

• • Example of feasibility study: Your 2023 Vote for African Poverty Reduction and Development Manager

 

In order to conduct your feasibility study of your vote, you need to carry out the following tasks:

 

~ Evaluate if your Vote project is technically achievable by determining and steering the technical resources (like time, budget, technical skills, etc.) to be committed to drive you to the process of looking for your Poverty Reduction and Development Manager of the year and of voting him/her

~ Carry out a viability test in terms of the cost associated with your selection process and benefits linked with your Vote project

~ Financially work out the cost and benefit of your Vote project as you will do in the recruitment selection process of any personnel.

 

Feasibility study can be basic (simple) or complex depending on the type of your Vote project.  In the above example, we have simplified the matter.

For those who would like to dive deeper into feasibility study, including the tools, examples, skills and steps in feasibility study of their Play or Run or Vote project, they should not hesitate to contact CENFACS.

 

 

 

• CENFACS’ be.Africa Forum Discusses Ways of Broadening Local Contribution to Local Charitable Causes

 

The first discussion of March 2023 for CENFACSbe.Africa Forum is about Broadening the Contribution of Local Populations to their Charitable Causes without Impacting their Vulnerabilities and the Informal System in which they Live.

It is true that many local people are already contributing to their own local matters including local causes.  However, because of the intensity and continuity of the poly-crisis faced by many locals in Africa, we are discussing ways of increasing and improving local response in terms of their share regarding the contribution they are making towards the reduction or end of poverty in Africa.  We are discussing it while considering two constraints to this contribution, which are:

 

a) The vulnerability in which they are since we are dealing with people who are in need

b) Many of them live in informal system or economy in order to make ends meet.

 

Given these two constraints, how possibly can their contribution to their charitable cause be expanded by them without worsening their vulnerability and weakening the life-line informal system on which they depend?

Those who may be interested in this first March 2023 discussion can join in and or contribute by contacting CENFACS’ be.Africa, which is a forum for discussion on matters of poverty reduction and sustainable development in Africa and which acts on behalf of its members in making proposals or ideas for actions for a better Africa.

To communicate with CENFACS regarding this discussion, please use our usual contact details on this website.

 

 

Message in French (Message en français)

 

Le Forum d’idées et d’actions pour une meilleure Afrique du CENFACS discute des moyens d’élargir la contribution locale aux causes caritatives locales

La première discussion de mars 2023 pour le Forum d’idées et d’actions pour une meilleure Afrique du CENFACS vise à élargir la contribution des populations locales à leurs causes caritatives sans affecter leurs vulnérabilités et le système informel dans lequel elles vivent.

Il est vrai que de nombreuses populations locales contribuent déjà à leurs propres affaires locales, y compris les causes locales.  Cependant, en raison de l’intensité et de la continuité de la polycrise à laquelle sont confrontés de nombreux habitants en Afrique, nous discutons des moyens d’accroître la part relative locale concernant la contribution qu’ils apportent à la réduction ou à la fin de la pauvreté en Afrique.

Nous en discutons en considérant deux contraintes à cette contribution qui sont :

a) La vulnérabilité dans laquelle ils se trouvent puisque nous avons affaire à des personnes dans le besoin

b) Beaucoup d’entre eux vivent dans un système ou une économie informels afin de joindre les deux bouts du mois.

Compte tenu de ces deux contraintes, comment peut-on accroître leur contribution à leur cause caritative sans aggraver leur vulnérabilité et affaiblir le système informel vital dont ils dépendent?

Ceux/celles qui pourraient être intéressés par cette première discussion de mars 2023 peuvent rejoindre et / ou contribuer en contactant le Forum d’idées et d’actions pour une meilleure Afrique du CENFACS, qui est un forum de discussion sur les questions de réduction de la pauvreté et de développement durable en Afrique et qui agit au nom de ses membres en faisant des propositions ou des idées d’actions pour une Afrique meilleure.

Pour communiquer avec le CENFACS au sujet de cette discussion, veuillez utiliser nos coordonnées habituelles sur ce site.

 

 

 

Main Development

 

Climate Action 2: Influence Voluntary Carbon Credit Markets Foster Sustainable Livelihoods for Poor Communities 

 

The following notes will help to take Climate Action 2:

 

σ Key concepts to be used to influence voluntary carbon credit markets

σ What voluntary carbon credit markets (VCCM) provide

σ Putting poverty reduction value on what voluntary carbon credit markets provide

σ How CENFACS can work with the community and Africa-based Sister Organisations on natural climate solutions like VCCM.

 

Let us look at each of these notes or items.

 

• • Key concepts to be used to influence voluntary carbon credit markets

 

To influence voluntary carbon credit markets, one needs to understand the following terms: Voluntary Carbon Credit Markets (VCCM), sustainable livelihoods and market influences.

 

• • • Voluntary Carbon Credit Markets (VCCM)

 

Referring to the definitions provided by the glossary of Market Business News (7), it states in this glossary that

“Carbon credit is a financial unit of measurement. It represents the removal of one tCO2e from the atmosphere.  tCO2e stands for tonne of carbon dioxide equivalent.”

There are two types of credits in the voluntary market which are:

~ Avoidance credits for external projects that avoid or reduce emissions production (for example, building a wind farm)

~ Removal credits for projects that lower existing emissions.

Removal projects deploy either nature-based solutions such as afforestation or technology-based solutions such as renewable energy generation.

Knowing what is carbon credit, it is possible to define voluntary carbon market.  For instance, the ‘weforum.org’ (8) explains that

“The Voluntary Carbon Market (VCM) enables investors, governments, non-governmental organisations and businesses to voluntarily purchase verified emissions reductions in the form of carbon credits.  This is a crucial tool to unlock the full potential of natural climate solutions, which have traditionally been under-funded and under-valued”.

The ‘weforum.com’ further argues that

“The VCM is by no means the only solution for funding natural climate solutions  – but is a really important and tangible mechanism we can use right now”.

The VCM could also be a viable tool to foster sustainable livelihoods.

 

• • • Sustainable livelihoods

 

According to the Food and Agriculture Organisation of the United Nations (9),

“A livelihood is sustainable when it can cope with and recover from stresses and shocks and maintain or enhance its capabilities and assets both now and in the future, while not undermining natural resource bases… Livelihoods can therefore be affected by external factors which increase their resilience and consequently reduce their vulnerability”.

From this definition of sustainable livelihood, one can argue that fostering sustainable livelihood could be undertaking a variety of initiatives such as developing skills (like income-generating, financial literacy, agriculture-based skills, etc.) to enhance capacities.  It could as well be about women’s development and capacity building initiatives.  Additionally, to create sustainable livelihoods, it requires access to capital (particularly natural capital) and access to markets.

 

• • • Market influences

 

Market influences are the broad factors that affect the economy, industries and companies as a whole.  One can do a PESTLE analysis, that is a Political, Economic, Social, Technological, Legal and Environmental factors affecting the economy and industries.  These generic factors could be inflation, economic growth, market sentiment, international crisis like the Russia-Ukraine conflict, etc.

However, in the context of VCCM, we are focussing on specific factors like prices for voluntary carbon markets, the pricing of carbon credits, project cost, pricing of value delivered, quality of credit, costs of carbon credits, etc.  The influence we are looking for is to make these specific factors work for the poor as well.  We are further examining how VCCM can help in dealing with the factors of the PESTLE analysis that are crucial in poverty reduction.

 

• • What voluntary carbon credit markets provide

 

Voluntary credit markets allow organisations to offset their unavoidable emissions by purchasing carbon credits from projects targeted at removing or reducing greenhouse gas from the atmosphere.  These markets provide the opportunities listed below:

 

to store carbon

to filter water

to produce oxygen

to promote biodiversity

to unlock private capital

etc.

 

Because of these opportunities, the VCM is a solution for funding natural climate solutions.  As argued earlier, it will be good to see these opportunities trickle down to the poor.  In other words, poverty reduction value needs to be at the heart of these markets.  These opportunities do not trickle down by themselves unless one takes climate action and action against poverty.

 

• • Putting poverty reduction value on what voluntary carbon credit markets provide

 

Voluntary carbon markets tend to compensate for residual emissions.  It is good to have voluntary carbon credit markets that provide opportunities to voluntarily purchase verified emissions reductions in the form of carbon credits.  It will even be better if these markets put poverty reduction value at the centre of their dealings.

As Leo Peskett et al. (10) put it in their Forestry Briefing 11 that Making voluntary carbon markets work better for the poor is about the following:

 

shifting from prioritising concerns of investors and producers to focussing on wider development interests of the host countries

developing expertise in carbon finance

prioritising concerns of small producers

evaluating social impacts

etc.

 

So, putting poverty reduction value on what voluntary carbon credit markets provide is all about that.

 

• • How CENFACS can work with the community and Africa-based Sister Organisations (ASOs) on natural climate solutions like VCCM

 

Lifting people and ASOs beyond their everyday lives of poverty and helping them take stock of their difficult situation while connecting them to solutions to poverty will always be at the heart of CENFACS.  In this lifting mission, we can work with them on natural climate solutions like VCCM to help them reduce poverty and hardships.

Natural Climate Solutions will help to protect, restore and better manage forests, soils and wetlands, while assisting in reducing poverty.

For ASOs and those members of our community who are interested in the second action of our Climate Action Month, action which is Influence Voluntary Carbon Credit Markets Foster Sustainable Livelihoods for Poor Communities ; they are welcome to contact CENFACS.

For any other queries and enquiries about CENFACS‘ Climate Action Month, the theme of ‘Making Carbon Markets Work for the Poor and the second action; please do not hesitate to contact CENFACS.

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References

 

(1) https://unfccc.int/files/meetings/paris_nov_2015/application/pdf/paris_agreement_english_pdf (Accessed in March 2023)

(2) Park, C. (2011), Oxford Dictionary of Environment and Conservation, Oxford University Press, Oxford & New York

(3) https://climatechampions.unfccc.int/what-are-nature-based-solutions-and-how-can-we-finance-them/# (Accessed in February 2023)

(4) FAO (2023), Crop Prospects and Food Situation – Quarterly Global Report No. 1, March 2023, Rome (https://doi.org/10.4060/cc4665en (Accessed in March 2023)

(5) cenfacs.org.uk/2020/03/11/the-2020s-agenda-and-programme/ (Accessed in March 2023)

(6) https://www.simplilearn.com/feasibility-study-article (Accessed in March 2023)

(7) https://marketbusinessnews.com/financial-glossary/carbon-market/ (Accessed in February 2023)

(8) https://www.weforum.org/agenda/2022/03/voluntary-carbon-market-net-zero/ (Accessed in March 2023)

(9) https://www.fao.org/in-action/herramienta-administration-tierras/module-1/proposed-methdology/sustainable-livelihoods/en (Accessed in March 2023)

(10) Peskett, L., Luttrell, C. & Brown, D. (2006), Making voluntary carbon markets work better for the poor: the case of forestry offsets, Forestry Briefing 11, Overseas Development Institute at https://odi.org/about/our-work/voluntary-carbon-markets-and-the-poor/ (Accessed in March 2023)

 

_________

 

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