No more cut-price forests?

June 12, 2009

Many developing countries with significant forest cover are waiting with bated breath for the climate change meeting in Copenhagen in December. They will be trying to push for the inclusion of the REDD (Reduction of Emissions of Deforestation and Degradation) scheme into the new climate framework. This would mean that developed countries will pay them for ‘avoided deforesation’ and in exchange will be entitled to forest carbon credits to offset their emissions at home. Tropical forests are saved, global emissions fall, emission targets are met and guilt consciences assuaged. Everyone is a winner. Or so it seems…

A major spanner is this dream sequence is Brazil, the ‘Saudi Arabia of green assets’. Its President Lula, has announced an ambitious commitment to reduce deforestation in the Brazilian Amazon by 70% over a 10 year period (2006-2017). To pay for this, Brazil has set up the Amazon Fund, which seeks funding to the tune of $ 21 billion from developed countries. So what’s new, you ask? Well the big difference is that unlike REDD schemes, donors to the Amazon Fund WILL NOT BE ELIGIBLE for carbon credits from ‘avoided deforestation’. The message is clear; “If you are so concerned about deforestation in the Amazon, be prepared to pay for its role as  global carbon lifeline instead of a cheap source of carbon credits. An expert summed it up nicely, “Brazil is not interested in giving industrialized countries cheap carbon credits from protecting the Amazon if they are not going to stop building coal-fired power plants”. In short, you can’t have your cake and eat it too.

Brazil’s offer is not to be taken lightly. If it does manage to meet its 10 year commitment, it would reduce emissions equivalent to that of Canada and E.U (annual emissions) combined. The Amazon Fund also takes us back to pre-climate change enlightened times, when people were prepared to pay to protect forests without any payback in the form of emissions reductions. Must forests only be viewed through the narrow lens of carbon capture/finance providers?

One Response to “No more cut-price forests?”

  1. Laku said

    Carbon trading is a good way for all these banking traders to recycle their tricks into a new trade. They managed to crash themselves once, will they learn from their mistakes or just go on and make the communities (already suffering in many places from these dubious practices) pay for it?

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