This is a neat project that i am lucky enough to see in the structuring stages... it is still unclear whether it is profitable enough for investors to take note - but it is an innovative twist on the "payment for ecosystem conservation" model...
The tenasserim corridor itself is divided into 5 sections, 2 of which were mobilized 1 year ago (the northern and southermost sites). Each section contains 5 towns. We went to the southernmost one in Ratchaburi (2 hours drive).
Tenasserim is a corridor of jungle southeast of bangkok that has patchy deforestation, ranging from 20-80% deforested. The more continuous the forest, the better it is for wildlife.
Photo: one of the 600 semi-permanent dams built to help maximize the use of rainwater
Photo: Rungnapar w/ the tree she planted a year ago...
The "tenasserim" region is 1 of 5 reforestation projects in the Greater Mekong Subregion that is partially financed by the asian development bank, and looking for the rest of the financing though private investors, rather than a loan (which is where my dad's little web of finance people would come in).
Private investors have been successful in joining forces with public sector projects in the clean energy sector - where they can rely on profits from energy being sold to the grid as well as carbon credits (sold on the compliance market). However, in this case, the investors would make make their money primarily by selling carbon credits on the voluntary market (about $2 per credit, which equals 1 tonne of CO2). so it's still questionable whether this co-financing model will work for reforestation alone...
The tenasserim corridor itself is divided into 5 sections, 2 of which were mobilized 1 year ago (the northern and southermost sites). Each section contains 5 towns. We went to the southernmost one in Ratchaburi (2 hours drive).
Tenasserim is a corridor of jungle southeast of bangkok that has patchy deforestation, ranging from 20-80% deforested. The more continuous the forest, the better it is for wildlife.
This area, about 400 m above sea level, subsists mostly through pineapple plantations. The Dept. of National Parks (which has done very impressive land surveying) set the villages with a nursery and seedlings (provided by the Royal Project, which focuses on sustainable ), which the townspeople grew and planted in around 200 hectares of forest.
Photo: one of the 600 semi-permanent dams built to help maximize the use of rainwater
There is about 10,000 left to be planted throughout the corridor - 5,000 of which is up to 80% deforested, and 5,000 of which is less than 20% deforested. If it takes another US$10 million (on top of $3 mil. already gotten from the ADB and the thai govt.) to implement the reforestation plans, are the profits from carbon credits enough to entice private investors to put up that $10 mil?
Other factors in the carbon calculation: 12 tree species being planted; young trees (first 10 years) sequester more CO2 than old trees; about 150 seedlings were planted per "rai" (6.25 rai per hectare; 2.5 acres in a hectare) - CO2 analysis costs $US 30k a pop; after 10 years, credits are worth more because the risk goes down... so when to sell the credits could make a difference...
While townspeople here have not been paid for the replanting, there is funding allotted for each village (about 200,000 baht per village, which roughly translates to US$ 5,700) to stimulate the development of sustainable businesses from which they can profit - such as growing mushrooms in the forest, ecotourism, or using the nurseries for other plants after the reforestation seedlings are planted (we talked with local women, and they are most interested in growing orchids).
photo: local women involved in the nursery activities...
Photo: seed bags at a nursery
The villages won't necessarily see much of the funds from the carbon credits directly, but they will have access to more advanced funds, training programs (including schoolkids, who are also taught about seed gathering and sustainable growing practices), and incentives for building their own sustainable businesses. That is, after the banks are paid, and the investors make their profits...
In any case, the trip was really interesting. Two of our "guides" were women (Kantinan and Rungnapar) from the Dept. of National Parks. They were both pretty hardcore - Rungnapar is a bamboo expert (There are 80 kinds of bamboo in thailand, and they only shed seeds before they die). Both described their days at the University in the Forestry program - every student is required to run 12 km a day for six months out of the year (for 3 years)... They also have some pretty good camping recommendations that i will have to follow up someday...
Photo: village firetruck, stopped outside where we had lunch
Photo: Rungnapar w/ the tree she planted a year ago...
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