SFM CORPORATE MISSION

1
Sustainable Forestry Management
Climate and forests the case for action now Ian
Swingland iswingland_at_sfm.bm November 2006
SUSTAINABLE FORESTRY MANAGEMENT
2
Tropical Deforestation 16 of Global CO2
Emissions
Global GHG 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
  storage4,000-10,000 per hectare (_at_20 per
  MTCO2)
• 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
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