Planting Tree Project

Small-Scale AR-CDM
AR-CDM: Afforestation & Reforestation Clean Development Mechanism
Main Content
1) Honda Vietnam Background
2) Honda Vietnam with Tree Planting Project
Cao Phong District – Hoa Binh Province
Background:
Background:

- Environment pollution is big concern of Vietnam GO & society

- Environment protection is highly appreciated

Honda Vietnam:
- Contribute to the society is our philosophy ->Want to be a company that society
want to exist

- Most of environmental activities are within the factory => We want to expand to
nationwide.

- We know that there are so many mountains that need to be reforested => We
want to focus on planting tree

- We know some big planting projects without full information and detail program

- We tried by ourselves but we don’t have know – how

=> We can not do in the big scale

JICA proposes a tree planting project (AR – CDM)

1) Big scale project

Planting tree in Farmer Safety Riding
2) Suitable with HVN’s desire contest in Ben Tre
Site Checking of HVN

Purpose: - Visit selected areas -> Study the situation Site 1 Site 2
- Work with Cao Phong PC (Hoa Binh Province)
- Meet local people
=> Practical for mastering feasibility of the project

Fact: Many green mountains but need to be afforested

Site 3 Site 4

Meeting with local people

- All people agreed with the project and actively support

- Wish the project should be implemented soon to:

+ Create employment for local people Site 5

+ Create income for local communities soon

+ Protect the degraded soil and environment

=> Highly appreciate practical meaning of the project

With the local people’s passion+ local Government

encouragement + Technical guidance of MARD,
JICA, VFU + HVN financial support

The project will successful

Survey to know people’s ideas
Project Location: Map within 320 ha needed to be afforested

④
⑤

This is pilot project -> If it is carried out successfully –> It can be expanded nationwide
=> Suitable with Honda Viet Nam desire
Our understanding of AR-CDM (1)

Effects of AR-CDM Research Result

- Contribute to the environmental protection Land kind Obsorbability Equivalent to

(ton-carbon/ha) (ton-CO2/ha)
+ Combat global warming
+ Avoid abnormal weather Grass land 4.3 15.8
+ Reduce greenhouse gas Shrub land 7.3 26.8
- Reduce poverty in developing country Forest 45.0 165.0
- Acquire necessary carbon credit
Soil erosion ratio Rate (ton/km2)

Forest 2 - 10
VN and Japan GO cooperate to materialize the
1st AR-CDM project in the world in Cao Phong
Grass or bush 10 - 50

district, Hoa Binh Province Crop land 50 - 100

Crop land in very steep slope 500 - 3,000
Project effectiveness:
1, Keep the forest from early selling wood product
2, Increases income for local people
3, Restore biodiversity
4, Increase water retention capacity of watershed
5, Improve living standard of communities in mountain areas
 Join effort of VN GO, local GO, communities and JP firms in VN
 GO and ODA Fund is limited => Need support from other
companies (JP firms operating in VN)
Our understanding of AR – CDM (2)
I- Partners:
1) JICA -> Technical support
2) MARD (Ministry of Agricultural and Rural Development )
-> General management
3) DOF (Provincial Department of Forest)
&
4) RCFEE ( Research Center for Forest Ecology and Environment) Planting tree on selected areas

-> Prepare plan for AR - CDM

5) VUF ( Vietnam University of Forestry)
-> Work with local government to carry out the project

1. Main Activity: Afforesting in areas of the project

2. Location: 5 sites in Xuan Phong & Bac Phong communes (Hoa Binh)
3. Area: 320 ha
Discuss about the project
4. Rotation: 17 years ( Afforestation will officially start from May 09)
5. Effectiveness:
+ Long - term: * Combating global warming
* Contribution to the environmental protection and
poverty reduction
+ Short – term: * Improve and restore environment and forestry
* Increase income for local people Local people are listening to project explanation
 Honda Vietnam – Memorial Tree Planting Day
Proposal
Back ground: Purpose:
• We don’t want to be a sponsor only Raise awareness of HVN associates and local
people for environment protection
• We want all the associates can take real
contribution to environment

Hold our own environment activity every year

- Planting area: 5 ha (in Thu Phong commune) Cao Phong
district – Hoa Binh province

- Time: Sunday 20 April, 2008

Plant tree together with VFU student
- Organizer: HVN, VFU, Cao Phong town
- Activity: Cutting bush, digging hole and planting tree
- Participant: No Name Quantity
1 HVN (included JP) 607
MARD 6
2 JICA 7
Plant tree in Cao Phong 2008
3 AR - CDM project 5
3 VFU students and teachers 160
4 Hanoi Department of Environtment Police 30
5 Local 50
Total 865

- Highly appreciated by local people, Government

- HVN associates join interested Good chance for exchanges
Overall Implementation Schedule
2008 2024
2008 (Year0) 2009 (Year 1) 2010 (Year 2) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
A ctivity
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (Y3) (Y4) (Y5) (Y6) (Y7) (Y8) (Y9) (Y10) (Y11) (Y12) (Y13) (Y14) (Y15) (Y16)

1- Complete draft plan of the project

2- Complete final plan of the project
3- Establishing a Social Fund
HVN’s Support
3.1 Set up fund founding board
3.2 Prepare application documents
3.3 A pplicatin to Hoa Binh PPC
2007-2008: Preparation
3.4 Permission for establishment
3.5 Set up managment boar and control board
3.6 Set up rules and norms
2009-2011: Start planting tree
4- Stakeholders meetings
5- Organize groups of participants
6- Signing contract
3 ha Sun HVN
7- Participatory preparation off detail work plan 5 ha Sun
8- Green fodder production (Planting) 19Apr activity
9- Plantation establishment at Year 1 20 Apr
<Acacia mangium : 146.5 ha - 16 year rotation>
- Land clearing and preparation for planting
- Planting
- Tending
- Protection
- Thinning
- Harvesting
- Replanting (2nd cycle)
10- Plantation establishment at Year 2
<Acacia mangium : 146.5 ha - 16 year rotation>
- Land clearing and preparation for planting
- Planting
- Tending
- Protection
- Thinning
- Harvesting
- Replanting (2nd cycle)
<Acacia auricuformis: 27.2 ha - 15 year rotation>
- Land clearing and preparation for planting
- Planting
- Tending
- Protection
- Thinning
- Harvesting
- Replanting (2nd cycle)
11- Extension activities
12- Project management and supervision
13- Validation of A R-CDM project by DOE
14- Verification by DOE

HVN try to harmonize this project with our own activity

Project Cost

Social fund Unit: Million VND

(A) O&M Cost (million VND) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Total
A1. Reforestation Cost
Subsidy for labor cost (30%) 242 389 189 131 52 293 356 183 1,835
Subsidy for material cost (100%) 249 307 307 249 1,112
A2. Subsidy for Green Fodder
Production 95 210 116 421
A3. Cost for Extension &
Demonstration 17 17 12 12 12 70
A4. CDM related expenses 240 32 32 32 32 288 16 16 16 16 272 16 16 16 16 272 16 16 16 16 32 1,424
A5. Management Cost of Social Fund 117 115 115 115 115 115 115 115 115 115 115 115 115 115 115 115 115 115 115 115 115 2,417
A6. Contingency (5% of O&M Cost) 18 37 53 23 15 23 7 7 7 7 19 7 7 7 7 19 7 7 37 37 16 367
Total (A) 375 787 1,123 487 305 490 138 138 138 138 406 138 138 138 138 406 138 138 768 773 346 7,646
(B) Revenue (million VND)
B1. Share of Benefits from Forest
Products 311 311 33 2,954 2,531 6,140
B2. Shared benefits from the Sales
of CERs 112 312 603 1,027

B3. Capital/Donation (Mil VND) 500 1,000 1,000 1,000 3,500

B4. Support/Subsidy from Gov.
Program and/or Others 240 240
B5. Other Income -
B6. Interest of Deposit (5.0%) 18 30 25 52 39 22 17 11 4 13 25 19 13 7 2 12 6 147 242 216 920
Total (B) 740 1,018 1,030 1,025 52 151 22 17 11 315 636 25 19 13 40 605 12 2,960 2,678 242 216 11,827
CASH FLOW 365 231 (93) 538 (253) (339) (116) (121) (127) 177 230 (113) (119) (125) (98) 199 (126) 2,822 1,910 (531) (130) 4,181
Cash Flow (end of year) 365 596 503 1,041 788 449 333 212 85 262 492 379 260 135 37 236 110 2,932 4,842 4,311 4,181

2008 :$ 30,211
Financial proposal to HVN
2009 :$ 60,423
$ 216,049 (In 4 years)
2010 :$ 60,423
2011 :$ 60,423
Total : $ 211,480

To start up this project our support is necessary

Thank you very much
Implementation of AR-CDM in VN

Effects of AR-CDM Research Result

- Contribute to the environmental protection Land kind Obsorbability Equivalent to

(ton-carbon/ha) (ton-CO2/ha)
+ Combat global warming Grass land 4.3 15.8
+ Avoid abnormal weather
Shrub land 7.3 26.8
+ Reduce greenhouse gas
Forest 45.0 165.0
- Reduce poverty in developing country
- Acquire necessary carbon credit Soil erosion ratio Rate (ton/km2)

Forest 2 - 10
Grass or bush 10 - 50
VN and Japan GO cooperate to materialize the Crop land 50 - 100
1st AR-CDM project in the world in Cao Phong Crop land in very steep slope 500 - 3,000
district, Hoa Binh Province

Project effectiveness:
1) Restore biodiversity
2) Increase water retention capacity of watershed
3) Improve living standard of communities in mountain areas
 Join effort of VN GO, local GO, communities and JP firms in VN
 GO and ODA Fund is limited => Need support from other
companies (JP firms operating in VN)
Project Implementation

Activity Main activity Supporting activity

No
Tree Planting -Afforestation Grass planting
Items
* Improve and restore environment (Produce more O2 and
1 Purpose reduce CO2) & Foresty * To prevent Cattle from ruining/eating small trees
*Increase income for local people

2 Place 5 selected areas (in Xuan Phong & Bac Phong commune) Garden or bad land of local /In local families' hamlets

3 Area 320 ha 30 ha
1) Acacia mangium & Acacia auriculiformis
+ 8 or 15 years rotation: Keo la Cham - Co voi: Grass of Pennisetum purpuneum
4 Type of trees - Co sua: Grass of Pannicum maximum
2) Indigenous species - Co Ruzi: Grass of Brachiaria ruziziensis
+ 30 years rotation: Keo Tai tuong

5 Implementer Local people (which has been organized in separated groups) All families in the communes of the project

I- Products of project
1) Forestry products: Wood and wood chip
2) Non-timber forestry products (NTFP): Honey, rattan, medicinal plants
3) Carbon Credit
Estimated: carbon credit from 2013 – 2018 is about 13,200 to 60,000 CO2 tons
(Assuming 3US$/ton of CO2 price => Total is about $ 39,600 to $ 180,000)

II- Other effects of the project

1) Restore natural environment through reforestation 1) Suitable with HVN’s desire

2) Improve living standard local communities through 2) Good to promote for environment image
Overall Implementation Schedule
2008 2024
2008 (Year0) 2009 (Year 1) 2010 (Year 2) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
A ctivity
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (Y3) (Y4) (Y5) (Y6) (Y7) (Y8) (Y9) (Y10) (Y11) (Y12) (Y13) (Y14) (Y15) (Y16)

1- Complete draft plan of the project

2- Complete final plan of the project
3- Establishing a Social Fund
3.1 Set up fund founding board
HVN’s Support
3.2 Prepare application documents
3.3 A pplicatin to Hoa Binh PPC 2007-2008: Preparation
3.4 Permission for establishment
3.5 Set up managment boar and control board
3.6 Set up rules and norms 2009-2011: Start planting tree
4- Stakeholders meetings
5- Organize groups of participants
6- Signing contract
3 ha Sun HVN
7- Participatory preparation off detail work plan 5 ha Sun
8- Green fodder production (Planting) 19Apr activity
9- Plantation establishment at Year 1 20 Apr
<Acacia mangium : 146.5 ha - 16 year rotation>
- Land clearing and preparation for planting
- Planting
- Tending
- Protection
- Thinning
- Harvesting
- Replanting (2nd cycle)
10- Plantation establishment at Year 2
<Acacia mangium : 146.5 ha - 16 year rotation>
- Land clearing and preparation for planting
- Planting
- Tending
- Protection
- Thinning
- Harvesting
- Replanting (2nd cycle)
<Acacia auricuformis: 27.2 ha - 15 year rotation>
- Land clearing and preparation for planting
- Planting
- Tending
- Protection
- Thinning
- Harvesting
- Replanting (2nd cycle)
11- Extension activities
12- Project management and supervision
13- Validation of A R-CDM project by DOE
14- Verification by DOE
Thank you very much