EXACT The Exante Appraisal CBalance Tool An example

EX-ACT The Exante Appraisal CBalance Tool An example from the “Accelerated Food Security Project” in Tanzania 1. 2. 3. 4. 5. Data requirements Model building Output of the tool Analysis of results Discussion

EX-ACT The Exante Appraisal CBalance Tool 1. DATA COLLECTION General project and area description Project title Accelerated Food Security Project Country Tanzania Project objectives To contribute to higher food production and productivity in targeted areas by improving farmers’ access to critical agricultural inputs. Relevant project component Improving access to agricultural inputs (fertilizer and seeds) Relevant project activities Provision of input vouchers to a cumulative total of 2. 5 million maize and rice producing farmers in 65 districts (Southern Highlands, Northern Highlands, and Western regions). Benefiting farmers will obtain an input package consisting of 3 vouchers: Nitrogen (urea); Phosphorus/Nitrogen synthetic fertilizers; seeds (hybrid/open-pollinated maize and rice varieties). Benefiting farmers will also improve agronomic and nutrient management and will abandon the practice of burning crop residues. N. beneficiaries 2, 5 million farmers (at full implementation) Duration Implementation phase: 7 years Capitalization phase: 13 years Climate Tropical Moisture regime Moist

EX-ACT The Exante Appraisal CBalance Tool 1. DATA COLLECTION Area cropped Maize total (conventional management) Hectares 972, 570 Maize conventional management, with project Hectares 260, 100 Maize improved management, with project Hectares 712, 470 Rice total (conventional management) Hectares 85, 815 Rice conventional management, with project Hectares 22, 950 Rice improved management, with project Hectares 62, 865 Input use Urea Tons/year 83, 820 Synthetic N fertilizers (maize) Tons/year 12, 824 Synthetic N fertilizers (non-upland rice) Tons/year 2, 263 Phosphorus synthetic fertilizer Tons/year 38, 557

EX-ACT The Exante Appraisal CBalance Tool 2. MODEL BUILDING Maize – Definition of cropping patterns and area cropped Rice – Definition of cropping patterns and area cropped

EX-ACT The Exante Appraisal CBalance Tool 2. MODEL BUILDING Fertilizer use

EX-ACT The Exante Appraisal CBalance Tool 3. OUTPUT OF THE TOOL Project C balance

EX-ACT The Exante Appraisal CBalance Tool 4. ANALYSIS OF RESULTS Environmental benefits in terms of climate change mitigation (total C sequestered) 20. 5 Mt of CO 2 eq. = 14 Mt (from maize) + 9 Mt (from rice). Project creates a C sink Total economic C benefits 307. 5 million US$ (at an average CO 2 eq. price of US$15/ton) Sensitivity analysis: 205 -410 million US$ (at CO 2 eq. price of US$10 and US$10/ton respectively). C “production” costs Total project costs/total C benefits = 299. 1 million US$/20, 5 Mt = 14. 5 US$/t CO 2 eq. Ratio Total benefits/total costs Economic C benefits/Project costs = 307. 5 million US$/299. 1 million US$ = 1. 02 C sequestered/ha 20. 5 Mt/775, 335 ha = 26. 4 t/ha Extra-revenue (from C)/ha 396 US$/ha corresponding to 19. 8 US$/ha/year (at an average CO 2 eq. price of 15 US$) Average farm size 0. 3 ha C sequestered/farm 8. 2 t Average extra-revenue (from C)/farm 123 US$ corresponding to 6. 15 US$/farm/year (at an average CO 2 eq. price of 15 US$)

EX-ACT The Exante Appraisal CBalance Tool THANK YOU

EX-ACT The Exante Appraisal CBalance Tool 5. DISCUSSION • How to implement the outputs from EX-ACT into the economic analysis of projects? – Project-scale level: compute measures of project worth (e. g. NPV and IRR) with/without C benefits – Micro-scale level (e. g. hectare or farm): select economic indicators (e. g. farm-income) • How to proceed with pre-testing? – Desk work: use existing project docs – Field work • How to deal with peer-review and certification of the tool?