The Carbon Disclosure Project has arguably reduced greenhouse gas emissions by creating an incentive for companies to examine and disclose their carbon footprints – an act that often leads them to realize how easy and economical reductions can be. Can the Forest Footprint Disclosure Project do the same for deforestation?
On the opening day of the 18th Katoomba meeting in Beijing, the Asian Development Bank’s (ADB) Water Resources Specialist, Zhang Qingfeng, offers an update on new trends in Chinese eco-compensation– including early steps towards encouraging private-sector investments in China’s natural infrastructure.
We’ve all heard how China’s voracious economic growth is destroying its air, water, and forests – but few know of the country’s burgeoning market-based response, which aims to halt environmental degradation by incorporating the value of nature’s services into the production process. EM parent Forest Trends has published an exhaustive inventory of these efforts.
Rapid expansion of agriculture has led to the destruction of forested hills critical for regulating water flows. China’s expansion has been bigger and faster than most, and so are its problems. But the notoriously top-down government has responded with a centrally funded yet incredibly decentralized, flexible, and locally-administered solution.
Climate change will disrupt the global economy in ways none of us really know, and companies that properly adapt to it will survive and perhaps even thrive. But the tools for profiting currently lie in the countries that created the mess – not those that will suffer. Here’s how the Higher Ground Foundation and others hope to level the playing field.
The World Bank received good news recently with several of its climate initiatives moving into new phases starting with the first PoA in China to issue CERs along with 3,000 hectares of a valuable watershed reforested. Meanwhile, Costa Rica becomes the first country to access performance based payments through the Carbon Fund and developed nations funnel more funds toward the FCPF.
Forest communities stand to benefit tremendously from REDD+, but only if tenure rights are incorporated into the decision-making process and benefits are shared across the community. That’s why Fauna & Flora International is piloting Community Carbon Pools across Asia. Here’s a look at how the program works in Vietnam.
Vietnam’s REDD+ National Action Plan gives it plenty of flexibility in designing a nested approach to REDD+, and a recent report looks at three pilot projects in Dien Bien Province, Kon Tum Province and Lam Dong Province. All demonstrate both the opportunities and complexities of REDD+.
In order to measure the impact and success of climate change mitigation actions in terms of forestry and agriculture, researchers at CIFOR first weigh three options- the potential of emissions reductions, economic risks and implementation expenses. They find the best mitigation action is an integrated approach between land-use, land-use change and forestry.
The Rimba Raya REDD Project is on again – one year after being put on ice when Indonesia’s Ministry of Forestry promised half the project’s territory to a palm oil company. That decision has now been reversed, and the project is set to preserve an orangutan habitat the size of Singapore, generating millions of dollars in carbon income for local communities along the way.
Micronesia’s 2,100 islands and atolls are mere specs on the ocean upon which they depend, but activities on land are destroying the marine habitat that supports them. That’s prompted several environmental organizations to ask whether payments for ecosystem services can promote harmony among competing interests on land, sea, and stream.
As our Ecosystem Marketplace team prepares to join the (albeit downsized) mass of avid climate talk followers to Doha, we set out to find the “must attend” events – and bring them to you. Take a look below for our hand-picked list of promising events during COP 18, including where and when you can find the Forest Trends team in action!
Most take it as a given that payments for ecosystem services promote good land stewardship, but do they really? A massive project in Uganda aims to answer that by dividing 1400 households into two groups, each of which is being trained in sustainable land use, but only one of which is getting payments.
As China expands economically, one of the largest resource constraints is clean drinking water, a problem being addressed in part by “eco-compensation.” Now the central government is developing a nation Eco-Compensation ordinance. A new paper out today details recommendations on what this new ordinance should look like.
Indonesia has banned logging in primary forests and dredging in peatlands to unlock up to $1 billion in seed funding from the government of Norway that could help the country earn billions more by saving tropical rainforests and capturing carbon in trees. To earn a shot at that less-than-certain income, however, it will have to forego guaranteed billions from logging, pulp, and palm oil.
Cash-strapped governments around the world are turning to mechanisms that preserve endangered species by incorporating the cost of habitat destruction into the cost of development. The Environmental Law Roundtable of Australia and New Zealand is building policy from the ground-up by making sure everyone is involved.
Answering China’s call for intensified emissions targets, the nation yesterday saw its first transaction of voluntary carbon credits piloted under the domestic Panda Standard. The credits – purchased from a bamboo reforestation project by a large Chinese real estate firm – signal Chinese companies’ willingness to pay for (literally) home grown carbon reductions.
Mongolia’s GDP is set to surge as mining interest move into the country in a big way, but its agriculture sector is suffering in the wake of unsustainable practices that use up topsoil and contribute to climate change. One program aims harness the carbon markets–and the mines–to promote sustainable herding and reduce carbon emissions.
The government of Vietnam has spent two years piloting regional schemes that use economic incentives to preserve forests by getting businesses that benefit from them to pay people who preserve them. Now it’s taking the scheme nationwide.
In just a few short years, Vietnam has begun ramping up one of the world’s most aggressive schemes designed to preserve nature by embedding its value in the economy. Like Brazil, Vietnam’s programs are based on user fees with heavy government oversight, and they’re getting results. You can find out more by tuning in to this week’s Katoomba Meeting in Hanoi.
Like all countries, Vietnam is struggling to preserve nature in the face of economic growth. Biodiversity offsets may provide one part of the solution, and will certainly be a hot topic at the Seventeenth Katoomba Meeting there on June 23 and 24. Ecosystem Marketplace examines the legal status of biodiversity offsets in Vietnam and how the country hopes to get it right.
The Government of Norway has pledged up to US $1 billion for reducing greenhouse gas emissions from deforestation and forest degradation (REDD) in Indonesia, and Indonesian President Susilo Bambang Yudhoyono has reiterated his country’s support for REDD at the Oslo Climate and Forest Conference.
Cash-strapped governments around the world are experimenting with market-based schemes to preserve nature by recognizing its economic value. In June, Hanoi will host the 17th Katoomba Meeting to explore the role that ecosystem markets can play in Southeast Asia.
Schemes that promote payments for ecosystem services (PES) should, in theory, reduce poverty while preserving the environment by rewarding the rural poor for acting as guardians of the ecosystem. Most PES schemes even list poverty reduction as an explicit goal; but will too much emphasis on helping the poor detract from the environmental benefits?
As forests convert carbon dioxide in the air to carbon stored in woods, leaves and roots, a range of organizations are, in turn, working to convert forests into carbon offsets. The ‘exchange rate’ of this conversion — or the amount of value brought by intervention — is determined by specific standards’ methodologies, which are technical, but critical, tools shaping the rules of the game.
It’s expensive to develop carbon offset projects that reduce emissions by capturing carbon in trees, and one reason is that every project has to develop its own methodologies for measuring results. The UNFCCC is asking for help in streamlining that process.
If you want to sell carbon offsets in exchange for action that reduces greenhouse gas emissions, you first have to prove that the money you’re earning is what makes the action you’re taking possible. That, in a nutshell, is "additionality" – a simple concept, but one that’s proving difficult to put into practice.
When Ecosystem Marketplace launched in 2005, the idea of preserving nature by incorporating its value into our economic system was mostly an academic exercise. Today, it’s the cornerstone of a fast-moving and innovative branch of finance. To keep our readers up-to-speed on the latest developments, EM and EKO Asset Management Partners have launched the EKO-ECO blog.
Deforestation accounts for 20% of all greenhouse gas emissions, and the UN bodies charged with mapping out the role of forestry offsets in a post-Kyoto climate-change regime are meeting in Bonn, Germany, this week and next to continue the process of hammering out their differences. The groups will meet at least three more times before gathering in Copenhagen at the end of the year.
Palm oil is a natural biofuel that also supports the economies of several developing nations, but growing it means chopping down the rainforests. That also means more carbon in the atmosphere, more global warming, and less habitat for countless endangered species. Now an innovative project in the Malaysian state of Sabah is betting that endangered species are worth more than palm.
When not raiding illegal Indonesian logging operations with the Governor of Aceh or hanging ten off the Australian coast, Dorjee Sun is cutting carbon offset deals – among them the world’s largest avoided deforestation project to date. The Ecosystem Marketplace talks to one of the environmental movement’s true mavericks.
The once-radical concept of saving the environment by documenting the economic value of environmental services and then getting industry to pay is finally catching on – but how is one to keep track of all the new methodologies and concepts? The Ecosystem Marketplace presents The Matrix, a new tool for surveying the ecosystem services landscape.
Payments for Ecosystem Services encourage entities that benefit from ecosystem services to pay for maintaining those ecosystems – but how? At the Biodiversity Conference (COP 9) in Bonn, Germany, Forest Trends, the Katoomba Group and the United Nations Environment Programme (UNEP) have jointly unveiled a nuts-and-bolts primer designed to answer that question.
Water trading has been hailed as the "next carbon", and schemes for valuing and trading both water usage and water "inputs" are proliferating across North and South America, Asia, and Africa. The Ecosystem Marketplace reviews the fundamentals of this promising ecosystem market.
Mitigation Banking makes it possible for real estate developers to turn biodiversity into an asset instead of a liability – which ultimately makes it possible to preserve that biodiversity across the United States. But how do such mechanisms work? And what challenges do they face? The Worldwatch Institute’s 2008 State of the World Report tackles these and other issues – excerpted here in Ecosystem Marketplace.
In a major demonstration of confidence in the viability of voluntary carbon offsets as a strategic investment, Merrill Lynch is raising equity for a 100-million-ton, for-profit avoided deforestation project in Aceh, Indonesia. Tellingly for the future of the forestry market, the decision to take the plunge had more to do with the cultural and biodiversity benefits than with the carbon itself. The Ecosystem Marketplace examines the deal and its significance.
In late January, the European Union unveiled a proposed two-pronged scheme for reducing greenhouse gas emissions once the Kyoto Protocol expires at the end of 2012. The scheme is designed to bring the world on board a post-Kyoto emission reduction regime, but participants say it will kill off many clean development projects in poor countries and raise the cost of reducing emissions in Europe. The Ecosystem Marketplace examines the impact of these latest proposals on the future of the CDM.
The 13th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 13) is more than a month behind us, but plenty of debate lies ahead as advocates and opponents of using forestry to combat climate change air their opinions in the lead up to COP 14 later this year in Poland and COP 15 next year in Denmark. Jeff Horowitz and Robert O’Sullivan of Avoided Deforestation Partners take stock of the Bali Roadmap and what it means for avoided deforestation.
Most people attending the Climate Change Conference in Bali agree: avoided deforestation, often referred to as REDD (Reduced Emissions from Deforestation and Degradation), will play a role in whatever regime replaces the Kyoto Protocol once it expires in 2012. But as the Ecosystem Marketplace finds out, the devil – and debate – is in the details.
The first round of negotiations has ended here in Bali, and with civil servants hitting the beaches and ministers taking their place at the negotiating table, a clear line of scrimmage has emerged in the form of a draft text released on Saturday.
The 17th Katoomba Meeting will take place in Hanoi on June 22-23, bringing together policy-makers, farmers, financiers, and others whose lives and livelihoods depend on preserving the region’s living ecosystems. Building on the success of our previous meetings (most recently in Accra and Palo Alto), we’ll be using the internet to make this a truly global exchange of idea. We’d like to invite your participation.
As the host country of the Kyoto Protocol, Japan celebrated the treaty's entry into force with considerable fanfare. In the early months of trading, however, Japanese businesses have been noticeably absent in the world of carbon finance. The Ecosystem Marketplace asks why Japan's private sector has been slow to invest and considers whether the early efforts of the country's first carbon fund might soon shake things up a bit.
The Ecosystem Marketplace is happy to announce the second in an ongoing series of reports about the science of ecosystem services. Interested in hearing what the scientists have to say? Watch this space for our regular update on what you should know about the latest reported findings in journals around the world.
Land-use practices – including forestry and agriculture – are responsible for nearly 40% of all greenhouse gas emissions, which is why accounting for land use, land-use change, and forestry (LULUCF) is a key point of contention in climate-change talks leading up to December’s Conference of the Parties in Copenhagen, Denmark. Ecosystem Marketplace summarizes the latest findings.
A last-minute decision to put Reduced Emissions from Deforestation and Degradation (REDD) on the roadmap for future climate change talks opens the door to innovative financing schemes to reduce deforestation. Such schemes have long been advocated by investment banks and traders – who are expected to play an ever larger role in framing future climate change mitigation mechanisms. The Ecosystem Marketplace takes a closer look. (First of two parts)
Volume on the world’s voluntary carbon markets surged from 65 million tonnes in 2007 to 123 million tonnes in 2008, according to the most recent State of the Voluntary Carbon Market. The real news, however, isn’t the numbers – but the drivers. Ecosystem Marketplace asked market participants what the report means for them – and for the environment at large.
On the surface, the upcoming meeting of the United Nations Framework Convention on Climate Change seems like an ocean of acronyms. The Ecosystem Marketplace finds out why this particular book might prove more interesting than its cover would suggest.
With just four weeks of negotiating time scheduled before the year-end Climate Conference in Copenhagen, negotiators are scrambling to trim the 300-page negotiating text for a post-Kyoto accord down to a more manageable 80. Tony La Vina, who is overseeing the portion of negotiations dealing with reduced emissions from deforestation and degradation (REDD), has taken matters into his own hands.
We are pleased to announce the release of Conservation and Biodiversity Banking: a Guide to Setting up and Running Biodiversity Credit Trading Systems. Conservation and Biodiversity Banking is the first comprehensive book on species mitigation banking. It provides practical guidance, tools, case studies, analysis, and insights into endangered species banking in the United States and abroad, and serves a handbook for a broad audience including private landowners, complying industries, regulating agencies, policy makers, bank developers, and interested general public.