About the Laguna De Bay Community Carbon Finance (Carbonshed) Project
The Laguna de Bay Community Carbon Finance Project (LCCFP) or the Carbonshed Project is a pioneering initiative of the LLDA to reduce greenhouse gas (GHG) emissions and to improve the environmental quality in the LDBR. It is an initiative parallel to and complementary with the Laguna de Bay Institutional Strengthening and Community Participation (LISCOP) Project.
The project is supported by a grant from the Japan Climate Change Initiatives, which is being administered by the World Bank. The grant will work out the development of Clean Development Mechanism (CDM) projects into LLDA. Under Article 12 of the Kyoto Protocol , CDM is a flexible financing instrument that enables developing countires to benefit from emission reduction. This will be done through project planning, emission reduction estimates, project design document preparation, and monitoring procedures. These activities will be mainstreamed through the Laguna de Bay Watershed Environmental Action Plan (LEAP) process.
The project will finance small-scale environmental projects with potential to reduce carbon emissions. This involves carbon trading; a mechanism where the amount of carbon sequestered by a project or activity such as piggery, tree farm, and land fill can be monetized. World Bank purchases these carbon credits through its Community Development Carbon Fund.
Another milestone in the history of LLDA was marked on June 30, 2006 through the signing of the CDCF and BioCF Emission Reduction Purchase Agreements (ERPA) with the World Bank. The agreements indicate that local governments and other groups in the LDBR will be paid over 10 years for the greenhouse gases they reduce as a result of the implementation of composting, wastewater management and reforestation projects.
The agreement includes the purchase of 90,341 tons of carbon dioxide equivalent (CO2 -e) of greenhouse emissions reductions between 2007 and 2017 with additional projects expected to be added to the purchase over time by the LLDA, which will act as an intermediary between the World Bank and the local project proponents.
- Develop and enabling environment for a carbon market for small-scale environment interventions in the Laguna de Bay watershed;
- Build the capacity of LLDA as an intermediary to enable small-scale environmental projects to result in certifiable emission reductions;
- Pilot the implementation of carbon emission reducing interventions that address priority environment issues such as waste management and erosion reduction; and
- Prepare a set of environmental projects from which carbon emission reduction credits could be purchased by the World Bank’s Community Development Carbon Fund (CDCF) and Biocarbon Fund (BioCF).