Analysis Of Leakage in Carbon Sequestration Projects in Forestry: A Case Study of Upper Magat Watershed, Philippines

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The role of forestry projects in carbon conservation and sequestration is receiving much attention because of their role in the mitigation of climate change. The main objective of the study is to analyze the potential of the Upper Magat Watershed for a carbon sequestration project. The three main development components of the project are forest conservation, tree plantations, and agroforestry farm development. At Year 30, the watershed can attain a net carbon benefit of 19.5 M tC at a cost of US$ 34.5 M. The potential leakage of the project is estimated using historical experience in technology adoption in watershed areas in the Philippines and a high adoption rate. Two leakage scenarios were used: baseline and project leakage scenarios. Most of the leakage occurs in the first 10 years of the project as displacement of livelihood occurs during this time. The carbon lost via leakage is estimated to be 3.7 M tC in the historical adoption scenario, and 8.1 M tC under the enhanced adoption scenario.

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