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Financing the World’s Forests:  Integrating Markets and Stakeholders   Imperial College - 3 Aug 2009
Stepping up to Copenhagen Options for Forests Financing the World’s Forests: Integrating Markets and Stakeholders - Imperial College - 3 Aug 2009 Andrew W. Mitchell Founder & Director Global Canopy Programme Research Associate Zoology Dept University of Oxford
Core Areas ,[object Object],finance policy A Crisis of Values
 
“ There will be no solution to climate change, without a solution to deforestation”  (Nobel Laureates Symposium, 2009) Aircraft Emissions = 2% Energy Emissions = 25 % Forest Emissions = 18% Forest emissions are equivalent to flying   12.5 million people from London to New York  every day!
SOURCE:  Pathways to a Low Carbon Economy , McKinsey report, Feb 2009 20% of the Problem - 40% of the Solution
Emerging  Frameworks  for Forests UNFCCC -  CDM  >  REDD  > 2012 EU ETS > 2013 US Market - Waxman-Markey Bill Australia/Others Voluntary Markets  - CCX CBD  - PINC? CBD  - Green Development Mechanism
CDM > REDD >  REDD +  >  PINC ? (Pro-active Investment in Natural Capital) Tradable Currency  =  1t/CO2  >  1 ha/forest? Figure 2: Three complementary and reinforcing mechanisms for conserving and restoring forest and mitigating and adapting to climate change
Sources of $ US$ 17-33 Billion /yr International Auctioning (AAUs)  National Auctioning of Allowances REDD Markets ODA Interim Financing Mechanism
Interim Funding for REDD ,[object Object],[object Object],[object Object],[object Object],[object Object],Meeting at St James’s Palace, 1 April’09
Timing of payments (IWGIFR)
Fund flows Tropical  Forests Facility Rainforest Bond Rainforest Nations Direct Funding Private Investors Payments OECD Govts Guarantees/ Repayments Carbon Permit Auctions Special  Levies (e.g. fuel) Earmarking  Taxes World Bank Technical Support Issuer/ Advisor
Business Drives Deforestation  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Beyond Copenhagen?
Emerging Earnings Risks - Reputational - Regulatory - Environmental
“ Are we creating wealth that’s worth having?” Clinton Global Initiative, New York, October 2007
Natural Capital & Financial Capital A Tale of Two Economies? Could Water become the  new Oil?
Valuing Forest as Global Eco-Utilities? ,[object Object]
 
Utility to Business ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],The Amazon’s Rainfall Service
Natural Capital -  A New Asset Class?
Don’t Bank on Copenhagen  Forests - Natural CCS we can’t afford to do without….  GDP > Gross Destructive Potential!  TEEB - will drive recognition of Natural Capital values.
www.globalcanopy.org www.littlereddbook.org www.forestdisclosure.org
 
Why should Forests matter to Investors?
Forests are ‘Eco-utilities’ of immense value   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
“ Are we creating wealth that’s worth having?” Clinton Global Initiative, New York, October 2007
Forest Footprint Disclosure ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
We can’t do this without you!  We cant’ afford to wait!

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Financing the World's Forests: integrating markets and stakeholders1

  • 1. Financing the World’s Forests: Integrating Markets and Stakeholders Imperial College - 3 Aug 2009
  • 2. Stepping up to Copenhagen Options for Forests Financing the World’s Forests: Integrating Markets and Stakeholders - Imperial College - 3 Aug 2009 Andrew W. Mitchell Founder & Director Global Canopy Programme Research Associate Zoology Dept University of Oxford
  • 3.
  • 4.  
  • 5. “ There will be no solution to climate change, without a solution to deforestation” (Nobel Laureates Symposium, 2009) Aircraft Emissions = 2% Energy Emissions = 25 % Forest Emissions = 18% Forest emissions are equivalent to flying 12.5 million people from London to New York every day!
  • 6. SOURCE: Pathways to a Low Carbon Economy , McKinsey report, Feb 2009 20% of the Problem - 40% of the Solution
  • 7. Emerging Frameworks for Forests UNFCCC - CDM > REDD > 2012 EU ETS > 2013 US Market - Waxman-Markey Bill Australia/Others Voluntary Markets - CCX CBD - PINC? CBD - Green Development Mechanism
  • 8. CDM > REDD > REDD + > PINC ? (Pro-active Investment in Natural Capital) Tradable Currency = 1t/CO2 > 1 ha/forest? Figure 2: Three complementary and reinforcing mechanisms for conserving and restoring forest and mitigating and adapting to climate change
  • 9. Sources of $ US$ 17-33 Billion /yr International Auctioning (AAUs) National Auctioning of Allowances REDD Markets ODA Interim Financing Mechanism
  • 10.
  • 11. Timing of payments (IWGIFR)
  • 12. Fund flows Tropical Forests Facility Rainforest Bond Rainforest Nations Direct Funding Private Investors Payments OECD Govts Guarantees/ Repayments Carbon Permit Auctions Special Levies (e.g. fuel) Earmarking Taxes World Bank Technical Support Issuer/ Advisor
  • 13.
  • 14. Emerging Earnings Risks - Reputational - Regulatory - Environmental
  • 15. “ Are we creating wealth that’s worth having?” Clinton Global Initiative, New York, October 2007
  • 16. Natural Capital & Financial Capital A Tale of Two Economies? Could Water become the new Oil?
  • 17.
  • 18.  
  • 19.
  • 20. Natural Capital - A New Asset Class?
  • 21. Don’t Bank on Copenhagen Forests - Natural CCS we can’t afford to do without…. GDP > Gross Destructive Potential! TEEB - will drive recognition of Natural Capital values.
  • 23.  
  • 24. Why should Forests matter to Investors?
  • 25.
  • 26. “ Are we creating wealth that’s worth having?” Clinton Global Initiative, New York, October 2007
  • 27.
  • 28. We can’t do this without you! We cant’ afford to wait!