Potential of a forestry carbon project for the Magbukun Ayta of Bataan, Philippines

Issue Date

10-2015

Abstract

The paper discusses the potential of developing a forestry carbon project for the Magbukun Ayta, an indigenous cultural community in the Philippines. The feasibility of the forestry carbon project was evaluated based on technical, financial, and social aspects. The results of the feasibility analysis reveal that developing a forestry carbon project for the Magbuku Ayta of Kanawan, Morong, Bataan is technically and financially feasible.

The projected carbon loss in the ancestral domain due to the possible deforestation in the old growth forest is a lot higher than expanding second growth forests and brushlands, thus creating an excellent opportunity for the community to be engaged in a forestry carbon project. The NPV and IRR at the most conservative conditions (i.e., high scenario, price of USD 5t CO2-1, and 20% discount rate) are PhP70.728 million (about USD 1.61 million) and 27% respectively, which show that the forestry carbon project is financially viable.

The Magbukun Ayta have also expressed in a resolution that they are amenable to the possibility of being involved in a PES project, specifically on the carbon sequestration potential of their forests, making the forestry carbon project socially acceptable. Likewise, the community's experience with implementing projects and contracts and benefit-sharing and conflict resolution mechanisms plact the community in an advantageous position to implement this project. Thus, the project is socially feasible and acceptable. It is therefore recommended tha the Magbukun Ayta engage in a forestry carbon project under the voluntary carbon market mechanisms.

Source or Periodical Title

E&D Ecosystems and Development Journal

ISSN

2012-3612

Volume

15

Issue

3

Page

12-22

Document Type

Article

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