MDG Carbon Sustainable Charcoal NAMA Study

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MDG Carbon Sustainable Charcoal NAMA Study

December 2, 2015

The charcoal sector currently provides one of the greatest opportunities to help to prevent emissions in least developed countries (LDCs) while fostering significant sustainable development benefits. However, despite recent improvements in the production sector, there have until now been few activities in CDM or general climate financing. However, the recent approval of a small-scale (SSC)  methodology for charcoal and the on-going approval of a charcoal standardized baseline (SB) should provide a strong basis for the future development of climate financed charcoal projects.

 

First developed at the 2007 United Nations Framework Convention on Climate Change (UNFCCC) Conference of the Parties, the concept of a nationally appropriate mitigation action (NAMA) has continually evolved although few have been designed and implemented. NAMAs are well suited to holistic programmes since success depends on considering all components of the value chain – forest management, production, transportation, retail and consumption.

 

This study focuses on the middle three components of the value chain – production, transportation and retail – and provides information about the Ugandan context of the value chain, the stakeholders involved, the relevant policies and the institutional framework. The core part of the study is the design of an improved value chain for Uganda, including, at the production level, the introduction of improved kilns. A major component of the NAMA would be
the creation and institutionalization of a charcoal unit at the district level that is charged with, among other activities, purchasing from producers, categorizing the type produced so producers can be paid a differentiated value based on whether or not the product is sustainable, and arranging transport from the districts to Government-created warehouses located outside urban areas. At the warehouses, the charcoal will be sold by retail associations.

 

A crucial component in the NAMA design is the incorporation of measuring, reporting and long-term verification. For this reason, the study includes a system that permits robust monitoring that is implementable in the Ugandan context in addition to parameters and recording and reporting procedures. It also presents the necessary next steps in the NAMA process that include two stages of development of a NAMA design document, which must be developed in close co-operation with stakeholders, and, eventually, implementation. Finally, the study includes a list of possible donors to fund both stages.