Coffee NAMA

NAMA – Coffee of Costa Rica Luis Zamora Q. National Coffee Manager Ministry of Agriculture and Livestock, Costa Rica

COSTA RICA OCTUBRE 2014

NAMA

Nationally appropriate mitigation action in the Costa Rican coffee sector

Pathway towards a low-carbon coffee sector

MINAT Ministerio de Ambiente, Energía y Telecomunicaciones

Keeping coffee growers and maintaining farming families in business through increasing eco-competitiveness of national coffee producers

NAMA Highlights

Payments for environmental services for agroforestry systems in the coffee sector

First NAMA in the coffee sector and one of the few NAMA´s in Agriculture

Increased adoption of mitigation and adaptation measures along the supply and value chain

Donor support may target: institution development, capacity building, evidence building, knowledge sharing and capital investments.

Coffee sector serving as a “NAMA laboratory” for other sectors and other Latin American coffee-growing countries

Coffee Sector Structure Coffee Sector

2002

2012

Number of Farmers

70 143

52 787

Number of Mills

93

184

Number of Exporters

56

93

Number of Roasters

34

57

Source: ICAFE.

NAMA affects 50,000 farming families and involves an area of approximately 93,000 hectares.

Background


At the heart of Country´s identity

There are already existing framework policies in place

Stakeholder involvement across sectors

Solid institutional, organizational and collaborative setting

Strong relationship (agencies, coffee growers and millers)

Our coffee sector is fertile ground for developing new approaches to a green economy: easily rolling out NAMA management models and scaling up

Support Requested


International funding

National funding

20.000.000 USD (equivalent to 40 USD/family/year) from 2014 to 2023.

Institution development

Capital development: investments in (NAMA-type technologies).

Evidence building: establishing a smart MRVsystem;

Capacity building

11.500.000 USD (equivalent to 23 USD/family/year) from 2014 to 2023.

Public extension system & Coffee growers Agriculture and and mills (risk) Livestock Ministry awards Coffee-shading National and reafforestation Development and PESBanking System qualifying

Costa Rican NAMA Coffee MAG

Coffee NAMA

ICAFE

(Framework Convention) MINAE

BID FOMIN (FUNDECOOPERACION)

FUNDECOOPERACION

NAMA FACILITY NAMA SUPPORT PROJECT (GIZ)

OTHERS

Coffee NAMA

FOMIN

Equivalent Funding in cash

Equivalent Funding in Kind

Total

$ 1.274.438

$ 348.250

$ 617.400

$ 2.240.088

5 components

Technical approval by BID FOMIN

Current barriers


Policy barriers:

Financial barriers:

Market barriers:

*Low regulatory incentives to capital investment and process innovation.

*Low and late return of investment

Insufficient access to market niches

*Cash flow problems of coffee growers and millers.

Weak market incentives for GHG – efficient fertilizers.

*The slide only presents the main barriers identified at the moment.

Financial Mechanism Payments for environmental services for agroforestry systems in the coffee sector How we will manage this? MINAET

MAG

ICAFE

Intergovernmental Panel

Special fee

Private Investors

Secretariat

Guaranties functionality

Contributions

National NAMA Coffee Fund through a special vehicle

Contributions

Bi- and multilateral, public, private donors

National and international carbon markets

Render future environmental benefits Transferes direct financing

Funds activities

Ejecuting

agency

Mills

Delivers services

Places environmental benefits Steering Committee NAMA-Café

Advices political agenda and changes in institutional settings

Advisory board & Stakeholders

Galvanices interests, advices tecnically, facilitates coordination, etc.

Atends farmers and millers

Farms

Fuente: GIZ, B. Krause (2013)

Expected outcomes


Livestock

Coffee

Sugar cane

Rice

Banana

Other

Co-benefits: 11% 8% *Eco-competitiveness 5% 11% growing (cost Agriculture and Reduction livestock; 37% potential: approx. 30.000 Ton of CO2/year.

Energy and Carbon sink Transportation; potential: approx. 46%of 90.000 Ton CO2/year.

coffee savings,

120,000 Ton The expected diversification, keep market CO2e/year until reductions over 20 25% 2024 at full and environmental years willimpact be access implementation. 1,850,000 Ton CO2e

reduced) *Resilience of 50.000 farming 40% families.

Industry ; 6%

Wastes ; 11%

We envision the NAMA that combines mitigation measures with climate adaptation practices

A road map for the NAMA in the Costa Rican coffee sector Carbon Neutral Coffee

NAMA Concept & Financial Pitch

C-Neutral CR

Cop 18

2012

Expansion

2013

NAMA Framework ready

2014

2016

NAMA Implementation

C-Neutral Roaster/exporter Pilots

2018

2020 2021 2022 2023

NAMA-Full Implementation

Key NAMA Elements


Coffee Farms

Fertilizer

Agroforestry systems

Coffee Mills

Reductions in methane emissions by the pulp.

Wastewater treatment

Coffee Farms


• Reductions in nitrous oxide emissions, by adoption of efficient practices and new technology of fertilizer application.

• Increased fixation and augmented carbon inventories by the spread of coffee agroforestry systems (intensified shading). • Promotion of affirmative climate change adaptation measures such as: soil conservation practices, introduction of coffee varieties adapted to climate change, increasing forest cover, risk management, etc., thus leveraging the synergies between adaptation and mitigation, being two sides of the same coin.

Coffee Mills


• Reductions in methane emissions by improved water management

systems and by introducing technologies for wastewater treatment. • Reductions in methane emissions through changing treatment plus savings in energy use by recycling pulp.

Impact on Cost Structure through Mitigation Payments for environmental services for agroforestry systems in the coffee sector Actions 100%

Insurance and tax Other Materials Waste treatment Fertlizing

50%

Materials

Other costs

Fire Wood

Labor

External services and transport Electricity

Harvest

Labor 0%

Costs atFarm farm level

Costs at mills Coffee Mill

We envision the NAMA as a business model not only for the coffee sector, but for the agricultural sector as a whole

Coffee Mils – Carbon Neutrality Five Coffee Mills were chosen to obtain the C Neutrality

Five Coffee Mils were chosen to measure their Carbon Footprint.

Advice and support for implementation of the guidelines.

Program concludes in early 2015

Contact information

Luis Zamora Quirós, National Coffee Manager Agriculture and Livestock Ministry of Costa Rica (MAG) Email: [email protected]

With the support of:

Thank you

Thank you