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Project Potico Project Potico Presentation Transcript

  • World Resources Institute Project POTICO
  • World Resources Institute World Resources Institute
  • World Resources Institute
  • World Resources Institute World Resources Institute
  • WRI’s approach
    • Non-partisan
    • Analytical excellence
    • Ideas into action
    • Practical solutions
    • Partnerships
    World Resources Institute
  • WRI has a diverse network of business partners
  • WRI’s corporate strategic relationships
  • Forests are important natural resources World Resources Institute
  • But they’ve been under pressure Source: UNEP-WCMC; UMD-SDSU; WRI; Hansen et al. 2008 Croplands/ built-up areas Recent tropical deforestation Intact forests Managed/ fragmented forests Sparse managed/ fragmented forests 8,000 years ago Today World Resources Institute
  • Forests of Indonesia span ~225 million acres . . . World Resources Institute
  • . . . comprise 10% of world’s remaining tropical rainforests . . .
  • . . . are a biodiversity “hot spot” . . . World Resources Institute
  • . . . and are home to indigenous peoples World Resources Institute
  • However, Indonesia is losing its forests . . . World Resources Institute
  • . . . currently to plantations for palm oil. But what is palm oil? World Resources Institute
  • Oil palm plantations have grown dramatically in Indonesia 2007 Sources: “Indonesian Palm Oil Industry”, paper given by Derom Bangun, Executive Chairman, Indonesian Palm Oil Producers Association (GAPKI), at the National Institute of Oilseed Products Annual Convention, March 21-25, 2006, Phoenix, Arizona. http://www.oilseed.org/pdf/am_2006_materials/Bangun_Text.pdf . “ Palm oil firms burning Indonesia forests-Greenpeace”, Reuters, July 12, 2007. http://www.alertnet.org/thenews/newsdesk/JAK23429.htm
  • You can see oil palm plantations expanding into forests . . .
  • . . . even from space 1991 2001 2004
  • This deforestation has significant consequences
    • Loss of biodiversity
    • Greenhouse gas emissions
    • Disrupted communities
    • Illegal logging
    World Resources Institute
  • Palm oil expansion fuels illegal logging 5.7 15.0 Allowable cut Actual cut Indonesia timber extraction (2004) Million cubic meters 9.3 Source: Indonesian Ministry of Forestry World Resources Institute
  • Indonesia is a leading source of illegal logs and fiber Source: Seneca Creek Associates, LLC and Wood Resources International, LLC. “Illegal logging and Global Wood Markets: The Competitive Impacts on the U.S. Wood Products Industry”. Prepared for American Forest & Paper Association. November 2004. http://www.afandpa.org/Content/NavigationMenu/About_AFandPA/Public_Calendar_and_Industry_Events/Events_Calendar/AFPAIllegalLoggingReportFINAL2.pdf World Resources Institute
  • Indonesia, however, has ~35-50 million acres of degraded land World Resources Institute
  • Why aren’t palm oil developers going there? Years $/ha Palm oil Timber / fiber Net cash flow per year for “business as usual” oil palm plantation Source: Adapted from oil palm production studies by Oil Palm Research Institute via the World Agroforestry Centre; Butler, R. “Is Peat Swamp Worth More than Palm Oil Plantations?” July 16, 2007 0 World Resources Institute
  • Project POTICO is addressing this challenge certified P alm O il certified TI mber C arbon O ffsets POTICO + + = World Resources Institute
  • How POTICO works ILLUSTRATIVE X World Resources Institute
  • . . . to tackle the underlying economics Years $/ha Palm oil Illustrative net cash flow per year for a POTICO deal Source: Adapted from oil palm production studies by Oil Palm Research Institute via the World Agroforestry Centre; Butler, R. “Is Peat Swamp Worth More than Palm Oil Plantations?” July 16, 2007 0 World Resources Institute
  • Years $/ha Certified palm oil Illustrative net cash flow per year for a POTICO deal Source: Adapted from oil palm production studies by Oil Palm Research Institute via the World Agroforestry Centre; Butler, R. “Is Peat Swamp Worth More than Palm Oil Plantations?” July 16, 2007 0 Palm oil premium . . . to tackle the underlying economics World Resources Institute
  • Years $/ha Certified palm oil Certified timber Illustrative net cash flow per year for a POTICO deal Source: Adapted from oil palm production studies by Oil Palm Research Institute via the World Agroforestry Centre; Butler, R. “Is Peat Swamp Worth More than Palm Oil Plantations?” July 16, 2007 0 Palm oil premium . . . to tackle the underlying economics World Resources Institute
  • Years $/ha Certified palm oil Certified timber Illustrative net cash flow per year for a POTICO deal Source: Adapted from oil palm production studies by Oil Palm Research Institute via the World Agroforestry Centre; Butler, R. “Is Peat Swamp Worth More than Palm Oil Plantations?” July 16, 2007 0 Palm oil premium Carbon offsets . . . to tackle the underlying economics World Resources Institute
  • Expected results
    • 0.25 – 1.25 million acres of virgin forest previously slated for oil palm plantations remain standing and managed sustainably
    • Series of POTICO deals
    • 0.25 – 1.25 million acres* of degraded land converted to oil palm plantations
    * 100,000 – 500,000 hectares World Resources Institute
  • Expected results: Social & environmental improvements
    • Biodiversity conserved
    • Greenhouse gas emissions avoided
    • Illegal logging reduced
    • Pressure on virgin forests reduced
    World Resources Institute
    • Local jobs created*
    * Approximately 1 person per 5-10 hectares of oil palm plantation
  • Questions Craig Hanson 202-729-7624 [email_address] World Resources Institute