Forestry & Honey & Cacoa

Regional Information

Nicaragua is one of the most deforested countries in Latin America. The project “Sustainable Forest Plantations” is located around the town of Leon, North-West of Nicaragua.  Being the driest region of Nicaragua, Leon faces huge problems related to both deforestation and desertification. Due to a long history of intensified agriculture with cotton, sugarcane and peanut soil fertility is severely depleted. Combined with high inputs of pesticides, common to most monoculture cultivation, soil life is destroyed and water is polluted.  Strong winds blow away the last fertile soil particles. This was one of the main reasons to start a smallholder reforestation program. The program is strongly supported by local governments, acknowledging the need to take action against desertification and temperature rise in the region.

Description

The reforestation program started in 2011 with finance from the Municipality of Utrecht and LBSNN (Netherlands).  Our local partner is Fundacion DIA, which is the implementing organization. Besides combating desertification, the timber plantations will generate an alternative source of income for the farmers. Since 2014 the project obtained a GoldStandard certification and is linked to the carbon market.

The project is now ready for upscaling. A cocoa- and honey production chain is also being developed and integrated with the reforestation activities. Both commodities will generate additional short term income for the farmers. The integrated approach of timber plantations with honey and cocoa is a competitive landusemodel to the destructive monocultures (peanut/cotton/sugar cane) in the region.

Impact

At present, 101 hectares has been reforested with 39 smallholder farmers. From this 101 hectares, 63 hectares are certified for the carbon market (GoldStandard) generating 5,739 carbon credits. In 2015-2016 another 105 hectares have been planted. These areas will be added to the existing carbon certification in 2017, creating a total of 168 hectares of certified area. The objective is to have 600 hectares of certified area by 2021.

Since 2015, a honey production chain has been set up. At present, the project has 230 hives in production. By the end of 2016, a total of 416 hives will be in production. The aim is to have 1,500 hives in production by 2021.

Since 2015, Fundacion DIA started with the production of cocoa plants. By the end of 2016, 5,000 cocoa plants will be planted. By 2021, 50,000 cocoa plants will be planted. At this scale, the project must be commercially sustainable by 2021.

Due to linkage with the carbon market, revenues will be generated by the sale of carbon credits. Average carbon sequestration is about 4.3 tCO2 ha-1 year-1 during the 30 years crediting period, generating an average of 3 salable carbon credits ha-1 year-1 . The timber species used in the project are high values species (e.g. Mahogany, Ceiba, Cedrus, etc.), which will generate considerable mid- and long term revenues for the farmer (respectively 15 and 30 years).

At full project scale (year 2021), farmer revenues generated from timber, honey, cacoa and carbon credits are around 3,000 USD year-1 (discounted over 30 years) which is considerably higher than current prices farmers receive for cultivating monoculture crops such as cotton, peanut and sugar cane (at present only USD 250-300 ha-1 year-1). As such, the timber-carbon-cocoa-honey landuse model is an economically attractive and sustainable proposition to smallholder farmers in the region.

ProClimate is currently in discussion with various investors that are interested to invest in the upscaling of the project. Individuals and companies can purchase carbon credits (Goldstandard certified) from the project in order to offset their carbon footprint. The financial revenues from the sale of carbon credits will be reinvested in the project.

Contact

Angel Mario Martinez Garcia: angelmario@progreso.nl