1. SUSTAINABLE FORESTRY MANAGEMENT Sustainable Forestry Management Climate and forests: the case for action now Ian Swingland iswingland@sfm.bm November 2006

2. Climate and Forests : the case for action now Tropical Deforestation = 16% of Global CO 2 Emissions 90% of Land use change emissions in the tropics, primarily deforestation Sources: Stern Report - The Economics of Climate Change; Intergovernmental Panel on Climate Change: Land Use, Land-Use Change, and Forestry: 2000 Global GHG EmissionsLand Use Change Emissions

3. Climate and Forests : the case for action now Who is Going to Pay ? Tropical forest value cleared to pasture: $200-500 per hectare Tropical forest value left for carbon storage:$4,000-10,000 per hectare (@$20 per MTCO 2 ) Annual Rate of Destruction: 12 million hectares Annual Required Payment (min. $4,000/hectare): $48 billion Total OECD Annual ODA: $80 billion Avg. Annual GEF (Biodiversity + Climate Change):$800million Source: At Loggerheads? Agricultural Expansion, Poverty Reduction and Environment in the Tropical Forests. The World Bank, October 2006

4. Climate and Forests : the case for action now Flood the Market? Not Likely. Source: UNFCCC: The Role of Forestry Sinks in the CDM - Analysing the Effects of Policy Decisions on the Carbon Market, Hamburg Institute of International Economics, 2003 Est. Global Carbon Market 2006:1362 MtCO 2 /yr Afforestation & Reforestation 2008-2012 1% Cap on A/R under CDM: 120 MtCO 2 /yr (8.0%) Actual A/R Potential (Low Case): 7.3 MtCO 2 /yr (.053%) (High Case): 14.2 MtCO 2 /yr (1.04%) Avoided Deforestation Theoretical Upper Bound: 3 billion MtCO 2 /yr Realistic Target (1% reduction): 30MtCO 2 /yr (2.2%)

5. Climate and Forests : the case for action now Perverse Incentives Cause: JI – Forest sinks “count” in Annex 1 countries CDM – Arbitrary restraints on A/R, high regulatory costs A/R banned from EU trading system No credits for avoided deforestation Result: Conserve temperate forests Destroy tropical forests

6. Climate and Forests : the case for action now What Must be Done Require deeper, faster cuts in global emissions Admit Avoided Deforestation credits to the Kyoto Market. Reform CDM to encourage reforestation and afforestation. Repeal the EU ban on CDM afforestation & reforestation credits. Admit credits for Avoided Deforestation to EU carbon market.

7. Climate and Forests : the case for action now Land Use-Rights SFM & International/Regional Partners Timber & Agroforestry Products Environmental Use Rights CO 2 sequestration Riparian Bioprospecting Renewable Energy Biomass Biodiesel Redevelopment, Infrastructure & Leasing SFM: What we are doing to help Building Value from Emerging Environmental Markets Multilaterals, States, NGOs, Communities Land Ownership