Sustainable Forest Management and markets for environmental
servicesDavid Brand
Hancock Natural Resource Group (Australia)
SUMBER: www.fs.fed.us/.../Sustainable%20Forest%20...
Sustainable Management of Forests
Countries vary in their priorities and perceptions of the purpose of forests
Globalisation of forests—both markets and competing ideas about SFM
Private sector capital is increasingly important
No sustainable forestry without social capital
Could the environment become a profit centre in forest management?
SUMBER: www.fs.fed.us/.../Sustainable%20Forest%20...
Per Capita Income
Per Capita Natural Resources
Subsistence
Conservation andProtection
SustainableDevelopment
Economic Development
Perceptions of forests vary from country to country….
Source: Jag Maini, UN IPF
SUMBER: www.fs.fed.us/.../Sustainable%20Forest%20...
Sustainable Forest Management
Do we share a set of values related to forests?
Reducing conflict and addressing equity in wealth distribution—without an equitable society, social capital breaks down
Legal and institutional framework to address inter-generational issues
What do we sustain and how do we sustain it?
SUMBER: www.fs.fed.us/.../Sustainable%20Forest%20...
Forests
Biodiversity
Soil and Waterconservation
Ecosystem HealthAnd Productivity
The carbon cycle
Industry andTradeSocial Benefits
How do we conserve and enhance these critical values….
SUMBER: www.fs.fed.us/.../Sustainable%20Forest%20...
Forests and Agriculture Forests and agriculture have often
been seen as being in conflict Can we create an integrated
approach to sustainable land management?
Is there a win-win scenario?
SUMBER: www.fs.fed.us/.../Sustainable%20Forest%20...
SUMBER: www.fs.fed.us/.../Sustainable%20Forest%20...
Investment and Sustainable Forest Management
Forests have been a source of capital in the past, but sustainable management implies we invest back into the forest
Growing trend towards plantation forests as native forests are depleted
How do we attract capital flows into the forest sector and ensure that capital contributes to sustainable forest management?
SUMBER: www.fs.fed.us/.../Sustainable%20Forest%20...
A ‘natural infrastructure’ model
Forests provide both goods and servicesMany environmental services like carbon
sequestration, water purification and biodiversity conservation are unpriced, undervalued and therefore we under-invest in them
Emergence of market mechanisms and price signals for environment is an important trend
SUMBER: www.fs.fed.us/.../Sustainable%20Forest%20...
The concept of a commercial market for an environmental service..
SUMBER: www.fs.fed.us/.../Sustainable%20Forest%20...
Carbon Sequestration The threat of climate change is the first
global driver for an environmental service market
Forests grow by absorbing carbon dioxide from the atmosphere and storing it as wood
Many emissions regulations recognize reforestation of areas cleared in the past as a credit against emissions
Substantial work has occurred to operationalize this new product
SUMBER: www.fs.fed.us/.../Sustainable%20Forest%20...
There is a growingtechnical, legal and commercial basis forforest-based carbonmarkets…
SUMBER: www.fs.fed.us/.../Sustainable%20Forest%20...
SUMBER: www.fs.fed.us/.../Sustainable%20Forest%20...
Water Quality Forests are critical to regulation of
water quality, water yield and hydrological cycles
Often a disconnect between upstream land management and downstream water users—leads to inefficient capital allocation
Good example of dryland salinity in Australia
SUMBER: www.fs.fed.us/.../Sustainable%20Forest%20...
SUMBER: www.fs.fed.us/.../Sustainable%20Forest%20...
SUMBER: www.fs.fed.us/.../Sustainable%20Forest%20...
SUMBER: www.fs.fed.us/.../Sustainable%20Forest%20...
Biodiversity Global trend towards homogenization of
ecosystems and loss of diversity This can lead to unstable or unhealthy
systems—insect and disease outbreaks, spread of weeds, loss of services like pollination and waste decomposition
Growing number of instruments to use markets for both species and ecosystem conservation
SUMBER: www.fs.fed.us/.../Sustainable%20Forest%20...
SUMBER: www.fs.fed.us/.../Sustainable%20Forest%20...
SUMBER: www.fs.fed.us/.../Sustainable%20Forest%20...
Outlook and Conclusion
Sustainable Forest Management is leading to a different way of viewing the value of forests
A dis-functional society cannot manage its forests sustainably—need to address social issues before environmental
In a ‘sustainable society, forests will increasing be seen, and valued, as a key part of the natural infrastructure
SUMBER: www.fs.fed.us/.../Sustainable%20Forest%20...