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SUSTAINABLE FORESTRY MANAGEMENT

Sustainable Forestry Management. Climate and forests: the case for action now Ian Swingland iswingland@sfm.bm November 2006. SUSTAINABLE FORESTRY MANAGEMENT. Tropical Deforestation = 16% of Global CO 2 Emissions. Global GHG Emissions. Land Use Change Emissions. 90% of Land use change

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SUSTAINABLE FORESTRY MANAGEMENT

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

  2. Tropical Deforestation = 16% of Global CO2 Emissions GlobalGHG Emissions Land Use Change 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

  3. 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 MTCO2) • Annual Rate of Destruction: 12 million hectares • AnnualRequiredPayment (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. Flood the Market? Not Likely. • Est. Global Carbon Market 2006: 1362 MtCO2 /yr • Afforestation & Reforestation 2008-2012 • 1% Cap on A/R under CDM: 120 MtCO2 /yr (8.0%) • Actual A/R Potential (Low Case): 7.3 MtCO2 /yr(.053%) • (High Case): 14.2 MtCO2 /yr (1.04%) • Avoided Deforestation • Theoretical Upper Bound: 3 billion MtCO2 /yr • Realistic Target (1% reduction): 30MtCO2 /yr (2.2%) 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

  5. 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. 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. SFM: What we are doing to help Building Value from Emerging Environmental Markets SFM & International/Regional Partners Multilaterals, States, NGOs, Communities Land Ownership Land Use-Rights Timber & Agroforestry Products Redevelopment, Infrastructure & Leasing • Environmental Use Rights • CO2 sequestration • Riparian • Bioprospecting • Renewable Energy • Biomass • Biodiesel

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