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World Resources Institute Project POTICO
World Resources Institute World Resources Institute
World Resources Institute
World Resources Institute World Resources Institute
WRI’s approach <ul><li>Non-partisan </li></ul><ul><li>Analytical excellence </li></ul><ul><li>Ideas into action </li></ul>...
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 tro...
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 Der...
You can see oil palm plantations expanding into forests . . .
. . . even from space 1991 2001 2004
This deforestation has significant consequences <ul><li>Loss of biodiversity </li></ul><ul><li>Greenhouse gas emissions </...
Palm oil expansion fuels illegal logging 5.7 15.0 Allowable cut Actual cut  Indonesia timber extraction (2004) Million cub...
Indonesia is a leading source of illegal logs and fiber Source:  Seneca Creek Associates, LLC and Wood Resources Internati...
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 us...
Project POTICO is addressing this challenge certified  P alm  O il certified  TI mber C arbon  O ffsets POTICO + + = World...
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...
Years $/ha Certified palm oil Illustrative net cash flow per year for a POTICO deal Source:  Adapted from oil palm product...
Years $/ha Certified palm oil Certified timber Illustrative net cash flow per year for a POTICO deal Source:  Adapted from...
Years $/ha Certified palm oil Certified timber Illustrative net cash flow per year for a POTICO deal Source:  Adapted from...
Expected results <ul><li>0.25 – 1.25 million acres of virgin forest previously slated for oil palm plantations remain stan...
Expected results:  Social & environmental improvements <ul><li>Biodiversity conserved </li></ul><ul><li>Greenhouse gas emi...
Questions Craig Hanson 202-729-7624 [email_address] World Resources Institute
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Project Potico

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Project Potico

  1. 1. World Resources Institute Project POTICO
  2. 2. World Resources Institute World Resources Institute
  3. 3. World Resources Institute
  4. 4. World Resources Institute World Resources Institute
  5. 5. WRI’s approach <ul><li>Non-partisan </li></ul><ul><li>Analytical excellence </li></ul><ul><li>Ideas into action </li></ul><ul><li>Practical solutions </li></ul><ul><li>Partnerships </li></ul>World Resources Institute
  6. 6. WRI has a diverse network of business partners
  7. 7. WRI’s corporate strategic relationships
  8. 8. Forests are important natural resources World Resources Institute
  9. 9. 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
  10. 10. Forests of Indonesia span ~225 million acres . . . World Resources Institute
  11. 11. . . . comprise 10% of world’s remaining tropical rainforests . . .
  12. 12. . . . are a biodiversity “hot spot” . . . World Resources Institute
  13. 13. . . . and are home to indigenous peoples World Resources Institute
  14. 14. However, Indonesia is losing its forests . . . World Resources Institute
  15. 15. . . . currently to plantations for palm oil. But what is palm oil? World Resources Institute
  16. 16. 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
  17. 17. You can see oil palm plantations expanding into forests . . .
  18. 18. . . . even from space 1991 2001 2004
  19. 19. This deforestation has significant consequences <ul><li>Loss of biodiversity </li></ul><ul><li>Greenhouse gas emissions </li></ul><ul><li>Disrupted communities </li></ul><ul><li>Illegal logging </li></ul>World Resources Institute
  20. 20. 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
  21. 21. 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
  22. 22. Indonesia, however, has ~35-50 million acres of degraded land World Resources Institute
  23. 23. 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
  24. 24. Project POTICO is addressing this challenge certified P alm O il certified TI mber C arbon O ffsets POTICO + + = World Resources Institute
  25. 25. How POTICO works ILLUSTRATIVE X World Resources Institute
  26. 26. . . . 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
  27. 27. 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
  28. 28. 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
  29. 29. 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
  30. 30. Expected results <ul><li>0.25 – 1.25 million acres of virgin forest previously slated for oil palm plantations remain standing and managed sustainably </li></ul><ul><li>Series of POTICO deals </li></ul><ul><li>0.25 – 1.25 million acres* of degraded land converted to oil palm plantations </li></ul>* 100,000 – 500,000 hectares World Resources Institute
  31. 31. Expected results: Social & environmental improvements <ul><li>Biodiversity conserved </li></ul><ul><li>Greenhouse gas emissions avoided </li></ul><ul><li>Illegal logging reduced </li></ul><ul><li>Pressure on virgin forests reduced </li></ul>World Resources Institute <ul><li>Local jobs created* </li></ul>* Approximately 1 person per 5-10 hectares of oil palm plantation
  32. 32. Questions Craig Hanson 202-729-7624 [email_address] World Resources Institute

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