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Mitigating Climate Change via Market-based Forest Conservation


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Presentation prepared for academic purposes. Provides an overview of market-based forest conservation and opportunities for mitigating climate change.

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Mitigating Climate Change via Market-based Forest Conservation

  1. 1. Mitigating Climate Change via Market-based Forest Conservation Stakeholders, Tactics, Risks and Rewards Andrew CourtneyThe George Washington University School of Business | SMPP298 | Summer 2010
  2. 2. About this Presentation• Summarizes findings from independent research and reading course.• Course is facilitated through The George Washington University, School of Business, Department of Strategic Management and Public Policy.• Slides are fully annotated and sources are fully cited in the “notes” pane of each slide.• Prepared by Andrew Courtney ( for academic purposes.
  3. 3. Executive Summary• Deforestation accounts for nearly 20%* of greenhouse gas (GHG) emissions annually. Meanwhile, standing forests remove 18%** of carbon dioxide from the atmosphere annually.• Thus, deforestation is accelerating climate change by 1. adding more GHG emissions than the entire transportation industry 2. removing vast quantities of forests that were cleaning carbon dioxide from the air.• Decreasing tropical deforestation rates must be part of global policy to mitigate climate change.• Market-based forest conservation can facilitate these reductions.• However, the process is complex and the stakeholders are many.• This presentation will analyze market-based forest conservation in terms of techniques, stakeholders, risks and rewards.
  4. 4. Contents
  5. 5. Climate Change and Global “Weirding”
  6. 6. 350 ppm • Considered safe upper limit of CO2 concentrations in atmosphere • Above 350 ppm, climate change accelerates via feedback effects
  7. 7. Climate SensitivityIf we double the Earth’s greenhouse gases, how muchwill the temperature change?
  8. 8. Greenhouse Gas Emissions by Sector
  9. 9. Forests and Climate Change
  10. 10. Deforestation
  11. 11. Forest Degradation
  12. 12. Areas of Net Forest Loss Amazon Basin Congo Basin Indonesia
  13. 13. Deforestation Tour (1990 – 2005) Click Image to play deforestation tour (30 seconds)
  14. 14. Drivers of Tropical Deforestation• Major Industries (industrial farming, mining and logging)• Subsistence farming• Inadequate governance and uncertain land ownership
  15. 15. Early Tropical Forest Conservation
  16. 16. Ecological Economics• Goods produced unsustainably benefit from a hidden subsidy, paidby the environment, community or future generations.• Thus they are usually cheaper than goods produced sustainably.
  17. 17. Payments for Ecosystem Services • Recognizes value of services provided by ecosystems –pollination –water filtration –carbon sequestration, etc • Estimated annual value of world’s ecosystem services: $33 trillion
  18. 18. Forest Ecosystem Services
  19. 19. Market Based Forest Conservation REDD: Reducing Emissions from Deforestation and Degradation
  20. 20. What is REDD?
  21. 21. Policy• Kyoto Protocol• Clean Development Mechanism (CDM)• United Nations Framework Convention on Climate Change (UNFCCC)• REDD+ adds provisions for – indigenous peoples and local communities – sustainable forest management/ conservation.
  22. 22. Financing• Market• Fund• Hybrid
  23. 23. Complementary Financing
  24. 24. Building Blocks of REDD
  25. 25. Baselines and Additionality
  26. 26. Measuring and Monitoring
  27. 27. Controlling Deforestation Leakages
  28. 28. Assuring Permanence• Projects must be around long enough to fulfill the mission of capturing and storing carbon.
  29. 29. Standards and Verification
  30. 30. Involving and Benefitting LocalCommunities and Indigenous Peoples• 400M+ people depend on tropical forests• Are often the best conservationists• Benefit-sharing programs provide alternative income / employment• Clarify Land Tenure and Governance
  31. 31. Assuring Environmental Co-Benefits• Overlap with biodiversity hot spots.• Co-benefits include: • Biodiversity conservation • Ecosystem services • Watershed Protection• Minimizes undesirable carbon-maximizing behaviors (monoculture plantations, exotic species)
  32. 32. Scale and Scope
  33. 33. Cost Effectiveness of REDD, 2007
  34. 34. REDD Opposition
  35. 35. REDD Alternatives
  36. 36. REDD Challenges
  37. 37. The Way Forward
  38. 38. The Way Forward
  39. 39. The Way Forward
  40. 40. THANK YOUContact: Andrew Courtney (
  41. 41. AcknowledgementsThanks are due to the following individuals for taking their time to meet inperson or via email and help inform the direction of this project: