1 Introduction
2 Materials and methods
2.1 Study area and setting
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Decision a: In 2010 BaumInvest AG certified 150 ha of their reforestation sites with the CarbonFix standard. CarbonFix was purchased by the Gold Standard in 2012 (The Redd Desk 2014). At present, BaumInvest AG is considering the addition of another 375 ha within the already existing certification framework according to the “new area” scheme of the Gold Standard (The Gold Standard 2018). The area is reforested with different combinations of the native and naturalized tree species Dipteryx oleifera Benth. (tonka bean), Vochysia ferruginea Mart. (botarrama), Swietenia macrophylla King. (Honduran mahogany), Vochysia guatemalensis Donn. (cebo), Cedrela odorata L. (Spanish cedar), Hymenaea courbaril L. (West Indian locus), Cordia alliodora (Ruiz & Pav.) Oken (Spanish elm), Hieronyma alchorneoides Allemão (pilón), and Tectona grandis L. (teak).
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Decision b: PuroVerde eG plans to extend its currently small ginger (Zingiber officinale) production into a much larger agroforestry project. Certifying the agroforestry sites under the “Gold Standard A/R GHG Emissions Reduction & Sequestration Methodology” (The Gold Standard 2017), the same certification applied to BaumInvest AG’s reforestation sites, could offer additional benefits for PuroVerde eG. The agroforestry project will include ginger cultivation in combination with native and naturalized tree species, which have not yet been specified.
2.2 Decision Analysis approach
3 Results
3.1 Crediting period and project lifetime
3.2 Marketing strategies
3.3 Return on investment
3.3.1 Agroforestry project—marketing strategy (1) sale of carbon-neutral products
3.3.2 Agroforestry project—marketing strategy (2) direct sale of VER
3.3.3 Agroforestry project—marketing strategy (3) pass VER on to company shareholders
3.3.4 Agroforestry project—comparison of the three VER marketing strategies
3.3.5 Reforestation project
3.4 Sensitivity analysis
3.4.1 Agroforestry project—marketing strategy (1) sale of carbon-neutral products
3.4.2 Agroforestry project—marketing strategy (2) direct sale of VER
3.4.3 Agroforestry project—marketing strategy (3) pass VER on to company shareholders
Description | VIP Strategy 1 | VIP Strategy 2 | VIP Strategy 3 | Source |
---|---|---|---|---|
Salary of Querdenker employees | 0.005 | 0.066 | 0.087 | German project leader of agroforestry project |
Total cost of consultant in performance review years. In normal years: no consultant needed | 0.006 | 0.054 | 0.023 | Certification cost of initial certification of reforestation project |
Working hours of Querdenker for maintaining certification | 0.007 | 0.084 | 0.002 | German project leader of agroforestry project |
Total cost of consultant for initial certification | 0.010 | 0.060 | 0.007 | Certification cost of initial certification of reforestation project |
VER price | 0.011 | 0.378 | 0.020 | Übersicht Verfügbarkeit VER_gesamt_181031.xls |
Working hours of PuroVerde P.F. for maintaining certification | 0.014 | 0.004 | 0.046 | Costa Rican project coordinator of agroforestry project |
Carbon dioxide sequestration | 0.018 | 0.856 | 0.013 | Various literature (mainly “World potential of agroforestry systems,” Ram et. al 2016), multiplied with C to CO2 factor 44/12 |
Exchange rate to convert GS fees in USD to euro | 0.024 | 0.018 | 0.112 | |
Working hours of PuroVerde P.F. for initial certification | 0.028 | 0.093 | 0.005 | Costa Rican project coordinator of agroforestry project |
Chance of new area to be added | 0.032 | 0.091 | 0.031 | Costa Rican project leader of agroforestry project |
Working hours of Querdenker in performance certification years | 0.033 | 0.031 | 0.025 | German project leader of agroforestry project |
Working hours of Querdenker in performance certification years | 0.038 | 0.015 | 0.041 | Costa Rican project coordinator of agroforestry project |
Working hours of Querdenker for initial certification | 0.044 | 0.071 | 0.008 | German project leader of agroforestry project |
General coefficient of variation used throughout the Monte Carlo model | 0.053 | 0.010 | 0.077 | Various literature |
Salary of PuroVerde P.F. employees | 0.055 | 0.092 | 0.020 | German project leader of agroforestry project |
Marketing costs | 0.071 | 0.189 | 0.095 | Public Relations Officer of agroforestry project |
Size of new area to be added | 0.212 | 0.025 | 0.001 | Costa Rican project leader of agroforestry project |
Discount rate | 0.950 | 0.830 | 0.779 | Various literature |
Additional product sales | 1.172 | 0.062 | 0.037 | Literature/German project coordinator of agroforestry project |
Additional shares sold | 4.202 | 4.283 | 4.399 | German project leader of agroforestry project |
Gold Standard fee to certify new area | n.a. | n.a. | n.a. | |
Gold Standard compliance buffer | n.a. | n.a. | n.a. | The GS-Agriculture Requirements (2014) |
Recurrence of performance certification | n.a. | n.a. | n.a. | Afforestation/Reforestation GHG Emissions Reduction & Sequestration Methodology |
Lifetime of project | n.a. | n.a. | n.a. | Afforestation/Reforestation GHG Emissions Reduction & Sequestration Methodology |
Gold Standard registration fee | n.a. | n.a. | n.a. | |
Performance review fee, paid every 5 years | n.a. | n.a. | n.a. | |
Preliminary review for LUF carbon, paid once | n.a. | n.a. | n.a. | |
Price of company shares | n.a. | n.a. | n.a. | Charter of PuroVerde eG (Version July 2017) |
Sales commission from BaumInvest to Querdenker | n.a. | n.a. | n.a. | German project coordinator of agroforestry project |
Size of initial area of finca | n.a. | n.a. | n.a. | Maps provided by project coordinators |
Max of total area to be added | n.a. | n.a. | n.a. | Costa Rican project leader of agroforestry project |
3.4.4 Reforestation project
Description | VIP | Source |
---|---|---|
Total cost of consultant in normal years | 0.006 | Certification cost of initial certification of reforestation project |
Working hours of Querdenker for initial certification | 0.008 | German project coordinator of reforestation project |
Working hours of Querdenker in performance certification years | 0.033 | German project coordinator of reforestation project |
Exchange rate to convert Gold Standard fees in USD to Euro | 0.035 | |
Price of BaumInvest stocks | 0.037 | Board member BaumInvest AG/own analysis |
Total cost of consultant for initial certification | 0.050 | Certification cost of initial certification of reforestation project |
Working hours of Querdenker in performance certification years | 0.052 | Costa Rican project coordinator of reforestation project |
Working hours of PuroVerde P.F. for maintaining certification | 0.053 | Costa Rican project coordinator of reforestation project |
Salary of Querdenker employees | 0.061 | German project coordinator of reforestation project |
Working hours of PuroVerde P.F. for initial certification | 0.065 | Costa Rican project coordinator of reforestation project |
Marketing and communication costs for BaumInvest | 0.077 | Public Relations Officer reforestation project |
Working hours of Querdenker for maintaining certification | 0.121 | German project coordinator of reforestation project |
Salary of PuroVerde P.F. employees | 0.129 | German project coordinator of reforestation project |
General coefficient of variation used throughout the Monte Carlo model | 0.133 | Various literature |
Discount rate | 0.285 | Various literature |
Yield losses due to climate change | 0.639 | Nölte (2018), Multi-purpose forest management in the tropics: Incorporating values of carbon, biodiversity, and timber in managing Tectona grandis (teak) plantations in Costa Rica |
Additional stock sales (percentage) | 2.393 | Board member BaumInvest AG/own analysis |
VER price | 3.422 | Price of VER sold by reforestation project from 2010 to 2018 |
Gold Standard fee to certify new area | n.a. | |
Gold Standard performance review fee, paid every 5 years | n.a. | |
Gold Standard registration fee | n.a. | |
Crediting period of project (2021—2036, end of crediting period of BaumInvest) | n.a. | Afforestation/Reforestation GHG Emissions Reduction & Sequestration Methodology |
Recurrence of performance certification | n.a. | Afforestation/Reforestation GHG Emissions Reduction & Sequestration Methodology |
Sales commission from BaumInvest to Querdenker | n.a. | Project coordinator of Querdenker GmbH for BaumInvest AG |
Gold Standard compliance buffer | n.a. | The GS-Land Use & Forests Terms and Conditions (2013) |