Transcript Forests in a Steven Stone Economics and Trade Branch, Geneva 6th June 2011 What is a Green Economy? A Green Economy is one that results.

Forests in a
Steven Stone
Economics and Trade Branch,
Geneva
6th June 2011
What is a Green Economy?
A Green Economy is one that results in
increased human well-being and social
equity, while significantly reducing
environmental risks and ecological
scarcities.
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Why Forests?
• Forests generate income and
provide employment.
• Forests provide nutrition,
reduce vulnerability and
diminish energy scarcity.
• Trends in deforestation are
still alarmingly high.
• The current approach to
management of forests is a
‘frontier’ approach.
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Forest cover
At present, forests occupy 31% of the
world’s land area, of which 1/3 are primary
and relatively undisturbed forests.
Trends
• Forest cover is being rapidly lost; 13 million
hectares of forests
• Reforestation on an upwards trend
• Net loss still 5.2 million hectares per year (FAO
2010)
• 13.5% of the world’s forests are in protected areas
(IUCN categories I-VI) (Schmitt et al. 2009).
• Just 7% of tropical forests are managed in a
sustainable way (ITTO 2006)
In a Green Economy…
• Full value of forests recognized and invested in as a
source of natural capital and environmental services
• Public and private investments in forests are catalyzed
and supported by targeted policy reforms, regulation
changes and capacity building.
• Forests are managed and invested in as an asset class
and are important factors of production.
• International mechanisms increase investments in
forests.
• Forest management hinges critically on an effective and
transparent accounting system.
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Investments in the Forest Sector
• The Green Economy Report
suggests that an average
annual additional investment of
US$ 40 billion is required to
halve global deforestation by
2030, and increase
reforestation and afforestation
by 140 per cent by 2050,
relative to business as usual
(BAU).
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Investments in the Forest Sector
• Targeted investments in forests
could generate about 10 million
new jobs around the world.
• Most of this increase occurs via an
increase in small and medium sized
enterprises.
• In the forest sector, 80-90 per cent
of the enterprises are small and
medium sized.
• SMEs currently provide more than
50 per cent of forest sector
employment in many countries.
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Enabling Conditions
Role of Governments
• Create markets and employ
market-based instruments to
promote green investment and
innovation
• Guarantee adequate returns
on risk-adjusted investment
• Devise transparent and
efficient procedures
• Agree on a national vision for
ways and means in which
forests can contribute to
development
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Enabling Conditions
Role of Business and Financial
Institutions
• Investing in forest projects
• Providing independent, easily
accessible and verifiable risk
assessments
• Leveraging resources and
providing finance
• Insuring and guaranteeing
investment and risks particular to
the forest sector
FSC Canada
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Enabling Conditions
Role of the International
community
• Agree on an international
REDD+ scheme
• Generate knowledge on forest
ecosystem services
• Capacity building and
technological transfer
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Success Stories
• India – The country recently approved a national mission for a
Green India.
• Japan – The Metropolitan Government Bureau of Waterworks in
Tokyo manages forests in the upper reaches of the Tama River to
increase recharge capacity.
• Costa Rica – Forest related interventions have led to economic
growth and a dramatic increase in forest cover. By 2010, it had
recovered up to 51 per cent of the country’s land area.
• Vietnam - The restoration of natural mangrove forests at the cost of
US$ 1.1 million resulted in annual savings of US$ 7.3 million in sea
dyke maintenance.
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Costa Rica
GDP 3,574
GDP 8,719
Conclusion
• Forest management cannot be left entirely to markets.
• Governments and the international community need to
undertake policy reforms to create incentives to
maintain and invest in forests.
• Businesses and financial institutions need to be active in
promoting investments in the forest sector
• www.unep.org/forests
Thank You
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