Executive Summary
The 383,000 hectare Sierra Gorda Biosphere Reserve is located roughly 200 kilometers north of Mexico City on the east facing slopes of the Sierra Madre Oriental. A non-government organization (NGO), Grupo Ecológico Sierra Gorda, was recently granted the responsibility to manage the reserve. For the past ten years, this NGO has been improving environmental conditions in the Sierra Gorda through numerous programs including large scale afforestation and environmental education. Their ongoing activities and role as manager of the biosphere reserve means there is a unique opportunity for them to oversee carbon sequestering projects.
There are seven potential carbon sequestering or avoidance projects. Table 1 lists project type, amount of carbon, cost of carbon, and net present value (Cnpv) if carbon has a value, after 100 years. It assumes an initial investment of around US$500,000, a discount rate of 5%, and a carbon value of US$10/Mg.
Table 1: Summary of projects
| Project | Type | Carbon1 (MgC) | Cost1 ($/MgC) | Cnpv1,2 |
| Fire management - forest only (duration 10 years) | temporary avoidance | 14,753 | $37.96 | $489,569 |
| Fire management - forest & brush (duration 10 years) | temporary avoidance | 15,196 | $36.85 | $1,014,971 |
| Fire management trust (requires $1,010,000 investment) | permanent avoidance | 786,201 | $1.28 | $2,533,214 |
| Enlargement of protected areas (1,500 ha) | permanent avoidance | 255,697 | $1.86 | $(71,901) |
| Afforestation (500 ha) | sequestration | 221,119 | $2.37 | $59,568 |
| Agroforestry - existing program (750 ha) modified program (750 ha) | sequestration, harvest, and agriculture | 34,607 84,119 | $14.743 $6.063 | $(277,916)3 $(179,188)3 |
| Sustainable forestry (750 ha) | forest management | 23,850 | $21.383 | $(305,594)3 |
Of the seven projects, temporary fire management has the largest short-term emission savings, with zero total savings over the project lifetime. If carbon has value and discount rates are applied, these projects have significant value. A fire management trust has been included because it has the greatest potential emissions avoided, highest Cnpv, and lowest cost, but requires a much larger initial investment.
Of the more traditional projects - protection and afforestation - afforestation is more expensive for the same area but gains its carbon earlier than protection. If carbon has a value and discount rates are applied, protection has a negative NPV. Both these projects have potential for small areas, but larger more substantive projects will be difficult because of limited available land.
Finally, the last three projects try to work in cooperation with an existing program, and attempt to balance carbon sequestration or avoidance with landuse pressures. They all sequester a significantly lower amount of carbon but have a negotiable investor cost depending on the revenue sharing. The first program is similar to an existing program. The second, is a modification to this program to store more carbon. Finally, sustainable forestry has the advantage of producing a steady stream of income while maintaining an amount of carbon averaged over a harvest cycle. This is the project that requires both the greatest cooperation from landowners, and greatest technical assistance.
This feasibility study is based on published data, actual financial records of Grupo Ecológico Sierra Gorda and limited field measurements. Monitoring costs conservative. Acquisition of detailed data is required to confirm the potential of these projects.
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Last updated: 19-Jan-98
This webpage was written and designed by D. Neil Bird.
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