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Greening supply chains: Engaging the private sector to address deforestation

  1. 1. Marisa Camargo 1 Auth0o3r/1 n2/a20m14e Date Marisa Camargo 03/12/2014 Greening Supply Chains: engaging the private sector to address deforestation Marisa Camargo (Isilda Nhamtumbo) Lima, 3 December 2014
  2. 2. Marisa Camargo 03/12/2014 2 Source: UN Population Division(2012) World Population
  3. 3. Marisa Camargo 03/12/2014 The context 3 • Rising consumption • Chocolate: 10% increase 2002-2010 and cont.. • Enough land? Competition • Forest resources? Livelihoods?
  4. 4. Marisa Camargo 03/12/2014 REDD+ 4 IIED study on REDD+ 115 projects • Private sector engagement is marginal and not connected to core business • Not addressing major drivers of deforestation • gap on for-profit private sector led projects aiming to tackle drivers associated with large-scale businesses in agriculture commodity chains
  5. 5. Marisa Camargo 03/12/2014 Agriculture commodities 5 • Drivers ~ 80% of deforestation • Beef and leather, cocoa, palm oil, rubber, soy NY Declaration on Forests • Zero deforestation supply chain • What does it mean? • Safeguards?
  6. 6. Marisa Camargo 03/12/2014 Ghana: from cocoa to chocolate 6
  7. 7. Marisa Camargo 03/12/2014 Ghana - cocoa 7 • ~21% of global production • ~22% of the export earnings • Small holders • 800 000 farmers • < 4 ha • Expanding farms • Low productivity • Set price
  8. 8. Marisa Camargo 03/12/2014 Cocoa in the landscape 8 Competing land uses Several stakeholders Concerns • Food security • Diversification • Tenure • Resilience
  9. 9. Marisa Camargo 03/12/2014 9 Everything is connected: tagxedo.com/copyright 2014
  10. 10. Marisa Camargo 03/12/2014 Missing “+” 10 • From REDD to REDD+ • Zero-deforestation ‘+’? • Degradation, restoration, SFM, conservation… • Lessons from Safeguards: • FPIC • Tenure • Benefit sharing • ….
  11. 11. Marisa Camargo 03/12/2014 From cocoa to chocolate 11 • Burden only at farm level? • Sharing benefits and costs along the supply chain • Emissions along the value chain: in-setting? Local buyer Farmer Cer fica on Exporter Processing Manufacture Retail Consumer NGOs Investors Seed and fer lizer producers Governments Packaging
  12. 12. Marisa Camargo 03/12/2014 12 Thank you! Marisa.camargo@helsinki.fi

Editor's Notes

  • Any guesses of what this is?
    Population growth
  • Rising consumption of basic commodities: soy, palm oil, cocoa to make your precious chocolate.
    E.g. Consumption of chocolate products increased by 10% between 2002 and 2010 in selected countries
    Chocolate is likely to increase not only in the main markets of Europe, America and other developed countries but also in the fast growing economies like the BRICS and also the growing urban middle class in less developed countries

    Where is the land going to come from?
    Are forests going to be jeopardised? Livelihoods?

    But we need to highlight that there is no production without resilient ecosystem to sustain it – Forests provide that

  • The REDD mechanism was created to address these challenges and a number of demonstration projects are being implemented on the ground
    Curious about the impacts of these REDD+ demonstration projects so far, IIED conducted a study on 115 projects. It revealed that:
    Drivers of deforestation only marginally addressed
    Projects seem to be concentrated in areas where small-scale agriculture and biomass energy production are the main threats to the forest. There is still a large gap on for-profit private sector led projects aiming to tackle drivers associated with large-scale businesses in agriculture commodity chains and other sectors.

    PS support projects that are not linked to its core business strategies

  • private sector must take deforestation out of commodity supply chains.
  • Efforts to green SC cannot ignore that commodities are inserted in the landscape
    Cocoa does not grow in isolation, it is inserted in a broader landscape.
    Efforts to address deforestation of this commodity should look at the dynamics of the landscape where there are competing land uses and several stakeholders
    Need to manage resources in an integrative manner
    Should avoid intensifying production to reduce risks – diversify to also address food security
  • All is connected in the landscape – need to manage resources thinking about several aspects
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