Sustainable Forestry Management CDM forestry climate change mitigation

Sustainable Forestry Management CDM forestry: climate change mitigation and adaptation. Benefits for poor and vulnerable communities Ian Swingland iswingland@sfm. bm SUSTAINABLE FORESTRY MANAGEMENT November 2006

Stern Warnings • Action to preserve the remaining areas of natural forest is needed now. • Taking action to protect forests is therefore too important to wait until the next commitment period • The CDM in its current form is making only a small difference. CDM forestry: climate change mitigation and adaptation. Benefits for poor and vulnerable communities Source: Stern Review: The Economics of Climate Change, 2006

Tropical Deforestation Must be Dealt With Land-use change is more than 20% of the problem and almost all of that is tropical deforestation. In Africa, Indonesia and Brazil deforestation contributes approximately 70 percent of their GHG emissions. (1) Demand forest products will increase with growth in world population and wealth. Unless tropical countries are paid more to keep their remaining forests there will be no solution to global warming, And no forests by the end of the century. I CDM forestry: climate change mitigation and adaptation. Benefits for poor and vulnerable communities Source: (1) FAO, State of the Worlds Forests 2005 (2) FAO, 2004 a

Forests are Essential for the Poor Forests provide important goods and critical services including: Wood (for energy and building) Food Medicinal products Fresh water for 1. 2 billion people of whom approximately 90 percent live below the poverty line (less than $2/day). CDM forestry: climate change mitigation and adaptation. Benefits for poor and vulnerable communities

Good practice: partnering local people CDM forestry: climate change mitigation and adaptation. Benefits for poor and vulnerable communities

SFM and Communities-An African Example Current Situation: Remote community of 20, 000 people Dependent on diesel generators for energy Primary occupation: subsistence farming Obsolete ODA horticultural project Increasing encroachment on native forest SFM Community Carbon Project Biomass energy plant Community afforestation program Reforestation of forest boundary Low impact, high-quality ecotourism facility CDM forestry: climate change mitigation and adaptation. Benefits for poor and vulnerable communities

What We all stand to Lose Estimated Value of Biodiversity Services: Genetic Material - $205 -365 billion Bio-prospecting - $147 -900 billion Ecotourism - $200 billion The remaining forests are 60% of the Terrestrial Sink where 90% of carbon exchange between earth and the atmosphere occurs CDM forestry: climate change mitigation and adaptation. Benefits for poor and vulnerable communities 1. Ten Kate and Laird, “the Commercial Uses of Biodiversity, ” Earthscan Publications, London 2. Norman Myers and Jennifer Kent, “Perverse Subsidies, ” The International Institute for Sustainable Development 3. The Ecoutourism Statistical Fact Sheet, 2000; The International Ecotourism Society

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): $800 million CDM forestry: climate change mitigation and adaptation. Benefits for poor and vulnerable communities Source: At Loggerheads? Agricultural Expansion, Poverty Reduction and Environment in the Tropical Forests. The World Bank, October 2006

SFM: What we are doing to help Building Value from Emerging Environmental Markets Multilaterals, States, NGOs, Communities SFM & International/Regional Partners Land Ownership Land Use-Rights Timber & Agroforestry Products Renewable Energy • Biomass • Biodiesel Environmental Use Rights • CO 2 sequestration • Riparian • Bioprospecting CDM forestry: climate change mitigation and adaptation. Benefits for poor and vulnerable communities Redevelopment, Infrastructure & Leasing