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The leader in land-use carbon analytics, finance and advisory Kulera Landscape REDD+ Program for Co-Managed Protected Areas, Malawi SUMMARY Project Location: Hectares: Target Standards: Project Type: Northern and Central Malawi 217,000 VCS, CCB REDD PROJECT PARTNERS Seller and Project • Department of National Proponent: Parks and Wildlife, Malawi • Community Associations Carbon Developer/ • Terra Global Capital Marketing Agent Implementing • Total LandCare, Malawi Organization(s): Project Design: • Total LandCare, Malawi Legal Advisor: • Dentons (International) Local Legal Council: • Sacranie , Gow & Company (SGOW) Funders: • US Agency for International Development Gross Project Life VCUs: Crediting Period: Project Start Date: 1st Verification: 7.2 million 30 Years October 2009 July 2014 PROJECT SUMMARY The Kulera Landscape REDD+ program was developed within the framework of the United States Agency for International Development (USAID) funded Kulera Biodiversity Project (KBP). The REDD+ project areas are located in a five kilometer zone inside the boundaries of three key protected areas in central and northern Malawi: Nyika National Park, Vwaza Wildlife Reserve, and Nkhotakota Wildlife Reserve. These parks are under increasing pressure of encroachment from local populations, which has exacerbated deforestation and forest degradation rates along the margins of the core protected zones. The overall goals of the Kulera REDD project are to reduce deforestation and degradation in these select protected areas, and to improve livelihoods by managing natural resources as an asset base so as to capture their long-term economic benefits. The project proponents, the Department of National Parks and Wildlife, the Nkhotakota Wildlife Reserve Association (NAWIRA), and Terra Global Capital have partnered with a Malawi-based NGO, Total LandCare, to prepare this REDD project and generate Verified Emission Reductions. One of the principal objectives of the project is to improve understanding of co-management agreements for protected areas and build the capacity of community associations to carry out park management and enforcement activities. In addition, within the five kilometer buffer zone surrounding each protected area, the project has introduced a number of interventions designed to provide alternatives income sources, improve food security, and reduce pressures on natural resources. These programs include agricultural intensification and crop diversification, installing woodlots on community-owned degraded lands as a means of reducing pressure on existing forest lands, and improving management of existing woodlands . Disclaimer: Although Terra Global has prepared this document with due care based on available information, it does not accept any liability whatsoever for the contents or the interpretation of the information provided herein. This document is being presented for information purposes only. The leader in land-use carbon analytics, finance and advisory Kulera Landscape REDD+ Program for Co-Managed Protected Areas, Malawi TENURE AND CARBON RIGHTS COMMUNITY BENEFITS The project reinforces land tenure by enhancing the capacity of community-based organizations to participate directly in natural resource management. This is in line with Malawi’s decentralization policy that provides for comanagement of Malawi’s national parks and wildlife reserves. The project has received high-level endorsement from the Republic of Malawi’s Department of National Parks and Wildlife (DNPW) under the Ministry of Tourism, Wildlife and Culture, which currently has a comanagement agreement covering the Nyika National Park and the Vwaza Marsh Wildlife Reserve with the NyikaVwaza Association (NVA) of local communities. The Kulera Biodiversity Project targets 45,000 households (225,000 people) living in rural communities in the border zone of the project protected areas. Most households are characterized by dire poverty, undertaking practices that are destructive to the resources upon which their livelihoods depend. In addition, many communities have limited access to support services because they reside in remote areas with poor roads and infrastructure. One of the primary aims of the project is to build the capacity of the NVA to co-manage the Nyika-Vwaza complex and build on this successful model by creating a similar community association in Nkhotakota. A carbon development agreement for the project will ensure that carbon revenues are used to strengthen co-management of protected areas and improve rural livelihood and natural resource management practices. A benefit management entity is being established to act on behalf of the government and the communities to sell carbon credits under an ERPA and aggregate on behalf of the government and the Associations. Communities are selected through a consultative participatory process based on defined criteria, which include assessments of resources, capabilities and interest, as well as the type and level of support needed. The entry point to identify beneficiaries begins with the leadership structure of communities and villages and established Community-Based Natural Resource Management (CBNRM) associations falling within the management zones of each protected area. In all cases, gender factors are taken into account to ensure participation and support of women, as well as youth. Given that many households are directly or indirectly affected by HIV/AIDs, the project ensures that interventions encompass opportunities to target these households. Special efforts are being made to target households engaged in illegal exploitation of reserve resources with the aim to understand and address this behavior by providing alternative options. BIODIVERSITY Malawi’s protected areas are a primary concern of the Government. Between 1972 and 2005, Malawi’s forest cover was cut in half from increasing demands for farmland and wood. Until recently, most of this occurred on customary land; however, encroachment into protected areas with exploitation of natural resources is now common because of weak Government policy enforcement. The project focuses on improved governance of three key protected areas uniquely important for biodiversity: Nyika National Park, Vwaza Marsh Wildlife Reserve, and Nkhotakota Wildlife Reserve. Nyika National Park is located in the northern region of Malawi, covers 3,200 km2 of montane grassland, miombo woodland and evergreen forest and is home to more than 95 mammals, 430 species of birds, 47 species of reptiles, and 34 species of amphibians. Vwaza Marsh Wildlife Reserve lies on the watershed between Lake Malawi and the Luangwa Valley on the Central African Plateau and supports a diverse vertebrate fauna that includes 326 species of birds, 10 species of fish and 50 mammal species, including rare and endangered species such as the African elephant and the African wild dog. Nkhotakota Wildlife Reserve supports a number of large mammals including the rare and endangered elephant, waterbuck, blue monkey, and 280 bird and 24 fish species. Disclaimer: Although Terra Global has prepared this document with due care based on available information, it does not accept any liability whatsoever for the contents or the interpretation of the information provided herein. This document is being presented for information purposes only. The leader in land-use carbon analytics, finance and advisory Kulera Landscape REDD+ Program for Co-Managed Protected Areas, Malawi KEY PROJECT MILESTONES Sept Tri-party agreement btw Terra, DNPW and community Associations establishing carbon rights signed PRAs and second round of biomass field data collection complete Insert timeline here Nov ESTIMATED GROSS VCUs BY VINTAGE VCU VCU YEAR YEAR [t CO2e] [t CO2e] June July First Issuance (VCS + CCB triple Gold) Sept 2014 Project validation and verification complete May 2013 Submission of VCS and CCB combined PDs for validation and monitoring reports for 1st verification June Workplan and 30-year project budget completed. Terra, DNPW and NVA agree on terms of carbon rights Nov 2012 Second validation of methodology complete 2011 TLC completes field sampling on first round of biomass plots and social assessments Jul Terra completes four feasibility studies for AFOLU projects in Malawi (REDD, ARR, ALM, IFM) USAID provides funding to Total LandCare to implement the Kulera Biodiversity Project Oct 2010 Terra submits new methodology “Carbon Accounting for Grouped Mosaic and Landscape-scale REDD Projects” to the VCS 2009 YEAR VCU [t CO2e] 2009 2010 2011 2012 2013 235,942 277,937 310,529 319,207 139,207 2019 2020 2021 2022 2023 199,999 205,761 214,922 224,601 225,624 2029 2030 2031 2032 2033 262,669 269,129 274,842 273,714 281,200 2014 2015 2016 152,958 161,252 164,012 2024 2025 2026 233,144 244,520 246,376 2034 2035 2036 283,250 289,054 287,187 2017 2018 180,340 183,132 2027 2028 252,165 256,418 2037 2038 290,266 294,325 Total 7,233,682 SUPPORTING DOCUMENTS AND AGREEMENTS VCS Project Document and 1st Monitoring Report – FINAL CCB Project Document 1st Project Implementation Report - FINAL Financial projections – Initial 30-year financial projections for the project which include all project-related costs and ex-ante carbon estimates Agreements between implementing and technical partners and communities – All agreements between project proponents and implementing partners governing implementation of project activities under development Government approvals – Co-management agreement between DNPW and other relevant government agencies pertaining to the Kulera Biodiversity Project under development Standard Operating Procedure for field sampling – Standardized SOP for collection of biomass field data by field teams Social appraisal reports – Reports compiled using the data gathered from the household surveys and PRAs Electronic shape files of project areas, leakage areas, reference regions – GIS boundary shape files used to delineate the project areas, leakage areas and reference regions Classified Landsat images – Used to determine land-use classes and forest strata within the project area and reference region Original data from biomass inventories and social assessments – Hard copies and electronic copies of data sheets used to record field data for biomass inventories and social assessments Disclaimer: Although Terra Global has prepared this document with due care based on available information, it does not accept any liability whatsoever for the contents or the interpretation of the information provided herein. This document is being presented for information purposes only. The leader in land-use carbon analytics, finance and advisory Kulera Landscape REDD+ Program for Co-Managed Protected Areas, Malawi TERRA GLOBAL COMPANY OVERVIEW Terra Global Capital, LLC was founded in 2006 to facilitate market and results-based payment approaches for forest and land-use emission reductions that provide community benefits. Terra is now the leader in forest and land-use analytics and finance, providing technical expertise and investment capital to their global client base in a collaborative and innovative manner. As a group, Terra has more global experience in the land-use sector than any other entity and is committed to working with its local partners to build capacity and support local communities and governments to sustainably manage their land. Terra has extensive developing country experience and is the leading developer of protocols and aggregation services for GHG emissions reductions from a full range of agricultural activities in the United States. For more information: www.terraglobalcapital.com 220 Montgomery Street San Francisco, CA 94104 [email protected] Phone +1.415.400.4491 Disclaimer: Although Terra Global has prepared this document with due care based on available information, it does not accept any liability whatsoever for the contents or the interpretation of the information provided herein. This document is being presented for information purposes only.