Transcript Forests in a June 2011 What is a Green Economy? A Green Economy is one that results in increased human well-being and social equity,

Forests in a
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 a Green Economy?
• A Green Economy is an economic vehicle for sustainable
development.
• A Green Economy has strategies to end the persistence
of poverty.
• It is a central theme of Rio+20.
• It is a new economic paradigm that can drive growth of
income and jobs, while reducing environmental risk and
scarcity.
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Forests in a Green Economy
• Forests are a critical link in the transition to a green
economy.
• The International Year of Forests 2011 and World
Environment Day, are unprecedented opportunities for
governments, civil society and business to promote
forests as critical contributions to a green economy
transition via sustainable management, forest
conservation and payment schemes.
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Forests in a Green Economy
The UNEP report:
• Provides a roadmap for “greening” the forest sector that
will contribute to the discourse in the lead up to Rio+20.
• Sets out options for policy makers to enable a
transformation of the forest sector.
• Examines the conditions for significantly increasing
investments in forests and the underlying goods and
services forests provide.
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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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In a Green Economy…
• 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 the International
community
• Agree on an international
REDD+ scheme
• Generate knowledge on forest
ecosystem services
• Stimulate engagement from
the commercial financial sector
• Re-invest income from
royalties and taxes into the
forest sector
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Enabling Conditions
Role of Governments
• 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
• Employ market-based
instruments to promote green
investment and innovation
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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 debt finance
• Insuring and guaranteeing
investment and risks particular to
the forest sector
• Applying conventional financial
instruments to the forest sector
FSC Canada
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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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Payment for Ecosystem Services
Payment for Ecosystem Services (PES)
• Voluntary transactions which compensate ecosystem
service providers (for instance forest landowners) for
providing watershed protection, carbon storage,
recreation, biodiversity or other ecosystem services.
Ecuador - The local government in the
town of Pimampiro pays US $6-$12 per
hectare per year to a small group of
farmers to conserve forest and natural
grassland in the area surrounding the
town’s water source.
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REDD+
• Reducing Emissions from Deforestation and Forest
Degradation (REDD+) recognizes the role of forest
degradation and deforestation in limiting GHG emissions
with conservation, sustainable management, and
enhancement of forest carbon stocks as eligible activities
Brazil – The Amazon Fund receives
conditional funding from Norway to
achieve deforestation reduction
targets
Indonesia - In 2010, the country
received a US$ 1 billion from Norway
in return for agreed measures to
tackle deforestation and degradation.
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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
Thank You
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