Forests & The Resource Curse The Anatomy of A Forest Destruction 1.

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Presentation transcript:

Forests & The Resource Curse The Anatomy of A Forest Destruction 1

2 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.

Crucial Info for the Class The following is based upon the United Nations Environment Programme A review of its website will help everyone work on their projects UNEP WEBSITE 3

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 new economic paradigm that can drive growth of income and jobs, while reducing environmental risk and scarcity. 4

Forests in a Green Economy Forests are a critical link in the transition to a green economy. The provide a vast source of sought-after services and goods. It is essential that governments, civil society and business to promote forests as critical contributions to a green economy transition via sustainable management and forest conservation. 5

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. 6

In a (future) 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. 7

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). 8

Investments in the Forest Sector Targeted investments in forests could generate about 10 million new jobs around the world. In the forest sector, 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. 9

Enabling Conditions Role of the International Community Agree on an international Generate knowledge on forest ecosystem services Stimulate engagement from the commercial financial sector Re-invest income from royalties and taxes into the forest sector 10

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 11

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 12 FSC Canada

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. 13

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. 14 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.

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 15 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.

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 16