PIN – Including Avoided Deforestation
PROJECT IDEA NOTE
Name of Project:
From Frontier to Frontier: Avoided Deforestation and Community Sustainable Forest and
Natural Resources Management in Guatemala´s Biological Corridor
Date submitted: April 2010
A. Project description, type, location and schedule
General description
A.1 Project description and
proposed activities
The Project aim to the Conservation of the remaining Wet Tropical
Forests of a network of five (5) Protected Areas (PAs) totaling
more than 215,000ha in Guatemala´s Caribbean Biological
Corridor; for the first phase, the implementation of the initial
programs will protect Core Zone Forests and Community Forests
in two (2) Protected Areas of Guatemala´s Caribbean Biological
Corridor in the department of Izabal, Cerro San Gil Watershed
Protection Area and Sierra Santa Cruz Special Protection Area; a
second phase will be implemented in three (3) other Protected
Areas, Río Sarstún Multiple Use Protected Area, Sierra Caral
Water and Forestry Reserve and Punta de Manabique Wildlife
Reserve. The first phase covers a total area of 111,041ha,
encompassing 54,722ha of forests, while the second phase covers
an area of 104,018ha and 45,003ha of forests, for a total area of
215,059ha and a forest cover of 99,725ha.
In a period of 15 years, the first phase will avoid the deforestation
of 10,500ha of broadleaf forest, representing 4,803,750 t CO2e of
avoided emissions, while the equally 15 years second phase will
avoid the deforestation of 9,000ha, representing 4,117,500 t CO2e
of avoided emissions.
The first phase program will amount in 15 years to an additional
801,130 tCO2e sequestered and the second phase 658,844 t CO2e
The total for the first phase is 5,604,880 t CO2e and 4,776,334 t
CO2e for the second phase.
An historic deforestation baseline has been established, based on
a study of the forest cover dynamics 1991-2001 by the Forest
National Institute of Guatemala, and a cover analysis with 2009
and 2010 Landsat images by the Institutional Geographic
Information System with Imagine software, with a total stratification
of eight (8) different cover types and two (2) forest types (dense,
not dense including plantations). The future deforestation
projections without project were established based on historic
annual deforestation rates and an analysis of threats and
pressures in each protected Area.
The project include three strategic programs:
1) Core Zone and Community Forests protection
a) Creation and management of Institutional Protection
Reserves
b) Creation and management of Community Conservation
Reserves
Name of Project
FROM FRONTIER TO FRONTIER: AVOIDED DEFORESTATION AND COMMUNITY SUSTAINABLE FOREST AND NATURAL RESOURCES
MANAGEMENT IN GUATEMALA´S BIOLOGICAL CORRIDOR
c) Surveillance program
A.2 Technology to be employed
(mention if REDD will be undertaken)
LULUCF PIN Template October 8, 2007
2) Community Based Organizations Natural Resources
Sustainable management
a) Sustainable Forest Management
b) Natural Resources Sustainable Management
c) Social and Productive Diversification Program
3) Monitoring, administration and supervision
a) Monitoring program
b) Administration and supervision program
The project will implement thorough Conservation strategies in the
core zones and prioritized forest in the Multiple Use Zones of the
Protected Areas of Izabal; these include the design and creation of
Institutional Conservation Reserves, a land acquisition program,
normative implementation and enforcement and a patrolling and
surveillance program.
The project will also implement Private Reserves with the
Communities within the Protected Areas, and will establish
contractual programs for the conservation of their forests. This
includes a program of community land legalization and the
participation in the Forest Incentives Program managed by the
Forest National Institute. A program of Carbon benefits from
avoided deforestation will be established with the communities, as
a source of alternative income to incite them to protect the
remaining forests and compensate the opportunity costs from
plantations, grazing and annual crops.
The project will also implement a Forest and Natural Resources
Sustainable Management program with the communities in the
PAs of Izabal, in order to tackle the problem of poverty and the
threats that generate an increased pressure on the remaining
ecosystems in Izabal.
This includes Sustainable Forest Management techniques for
reforestation and community managed forests that will also
participate in the Forest National Incentives program, until its
ending in 2017.
Non timber forest products sustainable management programs
including pepper, xate ornamental leafs etc. that will provide an
additional income to the beneficiaries of the project.
The development of other productive projects, such as arts and
crafts and eco-tourism, in prioritized sites, with assistance,
capacitating and funding from the project will ensure the income
diversification necessary to the sustainability of the project.
Finally a monitoring and administrative component will ensure both
the biological and social impact of the project and the effectiveness
of the avoided deforestation activities implemented by the project.
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Name of Project
FROM FRONTIER TO FRONTIER: AVOIDED DEFORESTATION AND COMMUNITY SUSTAINABLE FOREST AND NATURAL RESOURCES
Project proponent submitting the PIN
A.3 Name
A.4 Organizational category
(choose one or more)
A.5 Other function(s) of the
project developer in the project
(choose one or more)
A.6 Summary of relevant
experience
LULUCF PIN Template October 8, 2007
MANAGEMENT IN GUATEMALA´S BIOLOGICAL CORRIDOR
An administrative and supervision project respecting the
international accounting standards as per FUNDAECO certification
will ensure the proper implementation of the activities and secure
the carbon benefits management.
The project will be implemented in two phases:
-the first phase beginning in 2012, for a period of 15 years will
include two (2) Protected Areas: Cerro San Gil and Sierra Santa
Cruz
-the second phase, for an equally 15 years period, will include
three (3) Protected Areas: Río Sarstún, Sierra Caral and Punta de
Manabique
Foundation for Eco-development and Conservation –
FUNDAECO
a. Government
b. Government agency
c. Municipality
d. Private company
e. Non Governmental Organization
a. Sponsor
b. Operational Entity under the CDM
c. Intermediary
d. Technical advisor
FUNDAECO is a legally registered NGO and a full-fledged
conservation organization with staff members, park-guards, full-
time volunteers and over 20 associated experts and consultants.
One of the top three organizations in Guatemala, FUNDAECO
administrates 9 Protected Areas the Metropolitan Area, the
Caribbean Rainforest Corridor and the Huehuetenango highlands.
Over the years FUNDAECO has consolidated its expertise in the
following fields:
-design and legal creation of Protected Areas
-co-administration of Protected Areas, and community participative
management structures
-Reforestation and Forest Subsidies programs for local
communities
-land acquisition for conservation purposes and conservation
easements enactments, including the registration of the first
conservation easement of the country, in Izabal
- Payment for Environmental Services mechanisms, including the
first Water Fee for Conservation of the country in Las Escobas
River, Cerro San Gil
-pioneering partnerships with local municipalities in the
establishment of Municipal Protected Reserves and consolidation
of Municipal Environmental Management capacities in Izabal
-Community Social and Productive Projects programs.
FUNDAECO is a member of the following networks: IUCN;
ASOREMA (the National Association of Environmental NGO´s);
Guatemalan Committee of IUCN; Tri-national Alliance for the Gulf
of Honduras (Founding Member and Secretariat); Comisión de la
Tierra; The Sarstún-Motagua Conservation Region – RECOSMO
Board of Directors; National Mesoamerican Reef Working Group;
National Mesoamerican Corridor working group; among others.
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Name of Project
FROM FRONTIER TO FRONTIER: AVOIDED DEFORESTATION AND COMMUNITY SUSTAINABLE FOREST AND NATURAL RESOURCES
MANAGEMENT IN GUATEMALA´S BIOLOGICAL CORRIDOR
In 2009 FUNDAECO received the certification by the Swiss
organization CGS for its NGO administration international
standard
FUNDAECO is building an integrated and systemic approach and
has developed and implemented a Protected Areas Integrated
Management model; FUNDAECO is also giving renewed priority to
the protection of Guatemala's Costal and Marine Resources, and
promotes the Design and Management of Protected Areas,
conceived as tools for sustainable Land Management that
simultaneously maximize the three objectives of Nature
Conservation, Well-being and Community Empowerment and
sustainable income generation.

A.7 Address 25 calle 2-39 Zona 1,

Ciudad Guatemala, Guatemala

A.8 Contact person Lic. Marco V. Cerezo Director

m.cerezo@fundaeco.org.gt
Inga. Karen Aguilar Institutional Development Director
k.aguilar@fundaeco.org.gt

A.9 Telephone / fax Telfax: (502) 22534991 & 94

A.10 E-mail and web address fundaeco@fundaeco.org.gt

www.fundaeco.org.gt

Project sponsor(s) financing the project

(List and provide the following information for all project sponsors)
A.11 Name BNP London
FUNDAECO
A.12 Organizational category f. Government
(choose one or more) g. Government agency
h. Municipality
i. Private company
j. Non Governmental Organization

A.13 Address London

(include web address)
Guatemala
A.14 Main activities Banking activities

Co-administration of Protected Areas

A.15 Summary of the financials
(total assets, revenues, profit,
etc.)
Conservation and sustainable projects implementation
-
-2008 revenues: 18,366,156 GTQ (2,425,417 US$)
Total Assets:

Type of project
A.16 Greenhouse gases targeted CO2 / CH4 / N2O

A.17 Type of activities Sequestration / Conservation (REDD)

A.18 Field of activities

(Select code(s) of project Forest protection and management for conservation and

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Name of Project
FROM FRONTIER TO FRONTIER: AVOIDED DEFORESTATION AND COMMUNITY SUSTAINABLE FOREST AND NATURAL RESOURCES
MANAGEMENT IN GUATEMALA´S BIOLOGICAL CORRIDOR
category(ies) from the list) sequestration

Location of the project

A.19 Country Guatemala

A.20 Nearest city Puerto Barrios

A.21 Precise location Livingston, Department of Izabal

Expected schedule
A.22 Earliest project start date 2012 for the first phase
(Year in which the project will be 2016 for the second phase
operational)

A.23 Estimate of time required Time required for financial commitments: 6 months
before becoming operational after Time required for legal matters: 6 months
approval of the PIN Time required for negotiations: 6 months
Time required for establishment: 18 months

A.24 Year of the first expected 2013

CER / ERU / RMU / VER delivery

A.25 Project lifetime 15 years (to be extended)

(Number of years)

A.26 Current status or phase of a. Identification and pre-selection phase

the project b. Opportunity study finished
c. Pre-feasibility study finished
d. Feasibility study finished
e. Negotiations phase
f. Contracting phase

A.27 Current status of the a. Letter of No Objection is available

acceptance of the project by the b. Letter of Endorsement is under discussion or available
Host Country (choose one) c. Letter of Approval is under discussion or available

A.28 Position of the Host Country The Host Country

with regard to the Kyoto Protocol a. Is a Party to the Kyoto Protocol (i.e. has ratified or otherwise
(choose one) acceded to the Kyoto Protocol)
b. Has signed the Kyoto Protocol and demonstrated a clear
interest in becoming a Party in due time
c. Has not signed the Kyoto Protocol

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Name of Project
FROM FRONTIER TO FRONTIER: AVOIDED DEFORESTATION AND COMMUNITY SUSTAINABLE FOREST AND NATURAL RESOURCES
MANAGEMENT IN GUATEMALA´S BIOLOGICAL CORRIDOR
B. Expected environmental and social benefits

Environmental benefits
B.1 Estimate of carbon
sequestered or conserved
(in metric tonnes of CO2
equivalent – t CO2e. Please
attach spreadsheet.)
Provide estimated from REDD
activities separately
Up to and including 2012:
320,250 t CO2e avoided emissions and 53,409 t CO2e sequestered
Up to and including 2017:
2,470,500 t CO2e avoided emissions and 408,299 t CO2e
sequestered
Up to and including 2030:
8,921,250 t CO2e avoided emissions and 1,459,974 t CO2e
sequestered, for a total of

B.2 Baseline scenario Baseline:

(What would the future look like
without the proposed project?
What would the estimated total
carbon sequestration /
conservation be without the
proposed project? Mention the
baseline methodology, as per the
CoP9 text.1 Also explain why the
project is additional referring to
the EB16 guidelines2).
If REDD activity, mention the
main drivers and agents for
deforestation and how the project
will address them3.
The department of Izabal is one of the principal fronts of
deforestation of Guatemala, with Petén (in the Mayan Biosphere
Reserve) and Huehuetenango, with an annual deforestation rate of
1.39% in 2006. The remaining wet tropical forests are located
essentially in the Protected Areas, which converts them into the
main objective of new farming and cattle breeding land use
conversions, increasing the pressures faced by Conservation
Programs.
According to an analysis of the forest cover in the Protected Areas
by FUNDAECO´s GIS, based on 2009 and 2010 Landsat images
between 2001 and 2010 45,335ha have been lost within the limits
of the Protected Areas of Izabal, for an annual deforestation rate of
5,325ha.
1.Izabal Protected Areas deforestation table 2001-2010

Forest Annual
loss deforesta
Total Forest 2001- tion
Protected Area Area cover 2001 2010 rate
ha ha ha ha
46,713.0
Cerro San Gil 0 27,835.74 4,351.17 483.46
Sierra Santa 64,327.0
Cruz 0 47,283.21 16,046.06 1,782.90
111,040 20,397.2
Total phase 1 .00 75,118.95 3 2,266.36
35,127.0
Río Sarstún 0 24,254.73 8,711.82 1,088.98
32,327.0
Sierra Caral 0 20,436.84 4,229.67 469.96
Punta de 36,564.0
Manabique 0 25,249.41 11,996.40 1,499.55
104,018 24,937.8
Total phase 2 .00 69,940.98 9 3,058.49
215,058 45,335.1
Total .00 145,059.93 2 5,324.85
The PAs of the first phase of the project, Cerro San Gil and Sierra
Santa Cruz have an annual deforestation rate of 2,266ha, while the
remaining PAs of the second phase of the project have a

1
http://cdm.unfccc.int/Reference/Documents/dec19_CP9/English/decisions_18_19_CP.9.pdf
2
http://cdm.unfccc.int/EB/Meetings/016/eb16repan1.pdf
3
The BioCF is developing a methodology for project activities reducing emissions from deforestation and forest
degradation, which should be fully adopted during project preparation. It will be available by November 2007.

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Name of Project
FROM FRONTIER TO FRONTIER: AVOIDED DEFORESTATION AND COMMUNITY SUSTAINABLE FOREST AND NATURAL RESOURCES
MANAGEMENT IN GUATEMALA´S BIOLOGICAL CORRIDOR
deforestation rate of 3,058ha per year.
In absence of the project deforestation will continue and carbon
stocks will further decrease.
Associated with this will be a loss of biodiversity and wildlife
habitats for endemic species.
The historical baseline approach will be used for the proposed
REDD project activity.
Data used to determine the baseline scenario:
• Satellite imagery
• Biomass potential estimated in the life zones according to the soil
use
A pondered average of Carbon per hectare, based on IPCC
Default value for above ground biomass tropical moist forest, table
4.7 and carbon fraction of above ground biomass (tropical and
subtropical), table 4.3, was determined for the estimates of avoided
deforestation, at 125 t C/ha for the two study forest types.
The project activities will ensure a reduced deforestation of a
minimum of 19,500ha.
The Carbon sequestration for plantations and natural regeneration
was estimated at 4 t C/ha.

Additionality:
The demonstration of additionality will follow the CDM-SSC-AR-
methodology. The project activity would not have occurred without
the carbon finance component due to the following barriers:
-Investment barriers
-Opportunity costs to plantations, grazing and annual crops
-Social conditions
-Ending of the Forest Incentives Program in 2017

Leakage:
Three types of leakage will be addressed: grazing, fire and wood
utilization

B.3 Existing vegetation and land 2. Izabal Protected Areas Cover table
use
(What is the current land cover Total Forest
and land use? Is the tree cover Area Forest Other cover
more or less than 30%?) Protected Area ha ha ha %
23,484.5
Cerro San Gil 46,713.00 7 23,228.43 50.27%
31,237.1
Sierra Santa Cruz 64,327.00 5 33,089.85 48.56%
111,040. 54,721. 56,318.2
Total phase 1 00 72 8 49.28%
15,542.9
Río Sarstún 35,127.00 1 19,584.09 44.25%
16,207.1
Sierra Caral 32,327.00 7 16,119.83 50.14%
Punta de 13,253.0
Manabique 36,564.00 1 23,310.99 36.25%
104,018. 45,003. 59,014.9
Total phase 2 00 09 1 43.26%
215,058. 99,724. 115,333.
Total 00 81 19 46.37%
B.4 Environmental benefits The project will reduce emissions from forest deforestation. The
project will also increase the asset value of the natural forests and

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Name of Project
FROM FRONTIER TO FRONTIER: AVOIDED DEFORESTATION AND COMMUNITY SUSTAINABLE FOREST AND NATURAL RESOURCES
MANAGEMENT IN GUATEMALA´S BIOLOGICAL CORRIDOR
B.4.a Local benefits
B.4.b Global benefits
B.5 Consistency between the
project and the environmental
priorities of the Host Country
Socio-economic benefits
B.6 How will the project improve
the welfare of the community
involved in it or surrounding it.
What are the direct effects which
can be attributed to the project
and which would not have
occurred in a comparable
situation without that project?
(e.g., employment creation,
poverty alleviation, foreign
exchange savings). Indicate the
number of communities and the
number of people that will benefit
from this project.
B.7 Are there other effects?
(e.g., training/education due to
the introduction of new
technologies and products,
replication in the country or the
region)
LULUCF PIN Template October 8, 2007
supports the survival its endemic fauna and flora.
Overall the project expects to create significant improvements to
biodiversity conservation by avoiding habitat loss and degradation
in Izabal PAs.
The project does not anticipate any off-site negative biodiversity
impacts. Most off-site impacts will be positive since larger habitat
and forest areas will improve the long-term viability of populations
off-site.
It is commonly expected that reducing deforestation in natural
forests will improve the water and soil resources in the area.
Forest related benefits for local communities increase as a result of
this project, and community rights and participation in natural
resources management will be strengthen. It is expected that with
the carbon revenues and income from non-timber forest products
people’s livelihoods will improve compared to the current situation,
in particular the poor and forest dependent population.
Avoided deforestation financial incentive schemes will provide
rewards or compensations through regular payments into
community funds or community projects. However, in certain cases
determined by identified needs, non-monetary benefits will be
implemented.
.
-Carbon sequestration and avoided emissions
-Regional climate regulation effects
-Reduction of local natural disaster prevalence (floods, mudslides,
fires, etc.)
The project is in line with the application of the U.N. Convention on
Biodiversity ratified by the state of Guatemala and the National
Environmental Strategy.
This project will ensure the sustainable development of the
communities of the protected areas of Izabal. In the present project
communities will benefit from capacity building on Sustainable
Forest Management and from increased income through emissions
reductions. The project will maintain environmental services for the
communities, such as water flow and quality and erosion
protection. These indirect benefits constitute an essential share of
the overall socio-economic benefits of the project.
The implementation of social programs and productive projects will
provide a permanent income source and contribute to the
improvement of livelihoods and income diversification.
The institutional structures and participative management
mechanisms guarantees community participation and benefits from
the sale of emission reductions. Communities will obtain exclusive
user rights to manage the forest and to generate income from the
sale of wood products and emission reductions.
The project will train communities to sustainable use and
conservation of the forest and will disseminate new income
generating activities.
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Name of Project
FROM FRONTIER TO FRONTIER: AVOIDED DEFORESTATION AND COMMUNITY SUSTAINABLE FOREST AND NATURAL RESOURCES
MANAGEMENT IN GUATEMALA´S BIOLOGICAL CORRIDOR

C. Finance

Project costs
C.1 Preparation costs US$ 0.2 – 0.4 million for the Project Design Document

C.2 Establishment costs
C.3 Other costs (explain)
US$ 0.5 – 1 million for the set up of institutional structures and
contracts
US$ 1 - 1.5 million for Protection and Surveillance
US$ 2 -2.5 million for Natural Resources Sustainable
Management
US$ 0.5 – 1 million for monitoring

C.4 Total project costs US$ 4.5 – 6.5 million

Sources of finance to be sought or already identified

C.5 Equity (Name of the
organizations and US$ million)

C.6 Debt – Long-term (Name of

the organizations and US$
million)

C.7 Debt – Short term

(Name of the organizations and
US$ million)

C.8 Grants

C.9 Not identified (US$ million)

C.10 Contribution sought from

the BioCarbon Fund
(US$ million)

C.11 Sources of carbon finance

(Has this project been submitted
to other carbon buyers? If so, say
which ones)

C.13 Indicative CER / ERU / US$ 5

RMU / VER price (subject to
negotiation and financial due
diligence)
Please discriminate VERs from
REDD activities.

C.14 Emission Reductions Value US$ 51,906,120

(= price per t CO2e * number of
tCO2e)
Please discriminate VERs from
REDD activities.
Until 2012 US$ 1,868,295

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Name of Project
FROM FRONTIER TO FRONTIER: AVOIDED DEFORESTATION AND COMMUNITY SUSTAINABLE FOREST AND NATURAL RESOURCES
MANAGEMENT IN GUATEMALA´S BIOLOGICAL CORRIDOR
Until 2017 US$ 14,393,995

C.15 Financial analysis FIRR without carbon: will be provided in the PDD
(If available for the proposed
CDM / JI activity, provide the FIRR with carbon: will be provided in the PDD
forecast financial internal rate of
return (FIRR) for the project with
and without the CER / ERU /
RMU / VER revenues. For
standardization purposes,
provide the financial rate of
return at the expected CER /
ERU / RMU / VER price above
and US$4/t CO2e and assume 20
years worth of carbon payments,
even though that price and
purchasing period may not be the
one offered by the BioCarbon
Fund. Please attach spreadsheet
if available.)

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