Presented by Isabelle Baltenweck at the Pilot project on the feasibility of generating carbon credit through dairy productivity gains Second Project Stakeholder Consultation Workshop, Nairobi, Kenya, 29 January 2013

1. Feasibility assessment of selected sites
for the pilot project on the feasibility of
generating carbon credit through dairy
productivity gains
Second Project Stakeholder
Consultation
Workshop, Nairobi, Kenya, 29
January 2013
Isabelle Baltenweck
International Livestock Research Institute
Nairobi

2. Overall objective
• To evaluate the viability of the project concept
and establish whether carbon finance is a
viable option
• Data used: literature survey, expert
interviews, household surveys etc..
• Focus on the selected site

3. Project location and boundaries
• Location, geophysical and ecological aspects, socio-
economic context, detailed description of production
systems, institutional set-up, access conditions, etc.
• Description of potential project participants in selected
project area; key actors engaged in the dairy sector in
selected site; document recent or currently ongoing
project interventions in the area (if any);
• Identification of a suitable and comparable reference
group
• Perform an evaluation of the cost, ease and practicality
of monitoring and evaluation of project activities
highlighting any constraints/ barriers

4. Technical feasibility
• Analysis of key factors or underlying drivers for low milk
productivity
• Evaluation of the potential for increases in milk yield
• Identification of possible technical packages to increase milk
productivity and assessment of risks and barriers associated with
uptake and to performance improvements;
• Evaluation of the rate of technology transfer and adoption and
identify any risks to the maintenance of improved practices and
technologies
• Identification of potential technology and other related service
providers
• Provide recommendation of viable technical strategies/activities
focusing on their cost and GHG emission implications;
• Assess the technical capacity to perform Measurement Reporting
and Verification (MRV) activities and develop relevant MRV
indicators.
• Propose a preliminary robust and practical MRV system including
mechanisms for coordination and regular reporting of
mitigation, approaches for verification, etc.

5. Financial feasibility
• Assess preliminary estimate of project costs
associated with the initial project development
e.g. costs related to technological transfer and
uptake, training costs; management costs i.e.
costs of administration, monitoring, extension
services/activities;
• Assess non-carbon revenues accruing from
project interventions, foregone benefits and
other costs for project participants;
• Assess need for complementary funding and
recommend financing alternatives that may be
pursued further by project developers.

6. Institutional feasibility
• Identification of crucial partners in implementing the
underlying project, define key areas of expertise, strengths
and capacities and analyzing the potential roles and
responsibilities that different stakeholders identified can
play in the project;
• Assess whether institutional capacity in project area is
sufficient to implement project;
• Evaluation of stakeholder interests relevant to project
objectives assessing the likely impact of the project on
these interests;
• Evaluate the institutional capacity of different stakeholders
to implement and monitor project interventions;
• Identify and evaluate key factors that will affect willingness
of farmers to participate in project;
• Propose a suitable institutional arrangement for the
implementation of the project.

7. Socio-economic impacts
• Conduct an analysis of socio-economic benefits and
risks to evaluate the likely impacts of the project
• Examine how project interventions will impact socio-
economic dynamics in project area and recommend
mechanisms that can be build into the project in order
to mitigate negative impacts or enhance the positive
ones;
• Conduct an assessment of the likely co-benefits the
project is likely to deliver and evaluate the possible
secondary effects on other sectors/industries
• Propose mechanisms for benefit and revenue-sharing
or compensation for participating farmers

8. Risk assessment
• Operational and technical risks (e.g. lack of implementation
support, risk of slower/limited uptake of technologies, time
lags in implementation, etc.);
• Regulatory risks (e.g. absence of financial/credit revenue
distribution mechanisms);
• Natural/biophysical risks that may undermine the ability of
participants to remain in project (e.g. likelihood of
unforeseen risks such as disease outbreaks, extreme
weather conditions, etc.);
• Risks to project sustainability and permanence of emission
reductions over lifetime of the project, etc.
• Legal risks: identify any potential issues with legal aspects
of project implementation, legislation relevant to planned
project

9. Workplan
• February and March:
– Tool development
– Analysis of secondary data/ information
– Key informants interviews
• April
– Data collection
• May
– Data analysis and reporting