Forestry & Development E-News: December 2009

 

Forestry & Development (F&D) is an online resource on sustainable forestry. It supports commercial forestry as a viable source of economic growth which is compatible with sustainability.

Contents

Has the World Bank learned anything on forestry?

Earlier in 2009 the World Bank announced the establishment of its Forest Investment Program (FIP).

Anti-Chinese sentiment still a threat

E-mails are still circulating in Papua New Guinea that threaten the lives of Asian-owned businesses in the country.

Greenpeace's own version of reality in Indonesia

Greenpeace recently claimed victory in Indonesia, stating that its protest actions there had resulted in one of the country's largest pulp and paper producers being dropped by a major European buyer.

FAO: forest industries are carbon positive

A new report from the Food and Agriculture Organization of the United Nations (FAO) demonstrates that the global forest industry overall has a beneficial impact on greenhouse gas emissions.

PNG dependent on agriculture

A new study published by the Australian National University (ANU) indicates that agriculture plays a vital role in everyday life in PNG – but its significance is not appreciated.

Medal given for forest credits debunk, but scams live on

Two journalists, Ilya Gridneff of AAP (Australian Associated Press) and Natasha Loder of The Economist, were recently honoured for their investigative reports into the scandal surrounding the issuing of carbon credits for forest areas in Papua New Guinea.

Has the World Bank learned anything on forestry?

December: Earlier in 2009 the World Bank announced the establishment of its Forest Investment Program (FIP). Yet a close look at the Bank's 'new' strategy on investing in forests reveals that it has learnt little from its previous experiences in developing countries.

One of the clearest failures of the Bank took place in Papua New Guinea. In 1997, the World Bank initiated a US$40 million loan to PNG. Its chief objective was to improve forest management in the country. But the goals of the project were not economic – they were environmental.

Forestry & Development recently came across the Bank's cancellation note on the project. Possibly the most revealing information in the document is a summary of the project's social assessment, in which it asked local communities what their development priorities were. The top three were: establishment of roads, hospital and medical staff, and a wholesale outlet. Other priorities included a portable sawmill, an FM radio and a coffee mill. Forest conservation did not appear anywhere on the list.

The disconnect between the local communities and World Bank staff was given as one the key reasons for the project's failure.

Is the FIP following the same path?

The FIP's design document gives very little indication that it is interested in the development priorities of local communities. Its chief aim is to assist developing countries prepare for the establishment of REDD (reduced emissions from deforestation and forest degradation). It refers very cautiously to forest products, does not mention timber or manufacturing, and skirts around production and economic benefits.

It is loaded with safeguards for high conservation value forests – an open-ended term developed by WWF and the Forest Stewardship Council (FSC) for forest certification. Under current World Bank lending criteria, virtually any commercial activity in tropical forests that is related to wood harvesting is prohibited.

A question for the World Bank is: has anyone actually asked PNG's local communities if they are actually interested in conserving the forests? Or would they actually prefer to take the monetary benefits and infrastructure developments associated with forestry operations?

It should also be noted that the World Bank seems to be forming a negative attitude toward the private sector throughout the process. While the FIP has stated that  it will engage with the private sector, the documents outlining how it will do so have not been made available through the Bank's website or through direct requests.

Anti-Chinese sentiment still a threat

10 December: E-mails are still circulating in Papua New Guinea that threaten the lives of Asian-owned businesses in the country.

The e-mails, which are not unlike those that were circulating at the beginning of the year that prompted a series of riots across PNG, call on the country's citizens to burn down Asian-owned businesses in Port Moresby.

A particular e-mail claims that the violent actions have the support of the country's main NGOs. Earlier this year the PNGFIA highlighted the fact that many of the anti-forestry reports published by CELCOR and Greenpeace in PNG contained a negative attitude towards Chinese and Malaysian-owned businesses operating in PNG. Greenpeace was very quick to deny any racist undertakings on their part.

The renewed activity from PNG's racist groups has been spurred by the recent inquiry into the anti-Asian riots. During the inquiry, which was itself surrounded by controversy, PNG's timber industry was accused of drug smuggling, arms dealing and human trafficking – claims that have been dismissed as baseless by well-documented and publicly available research.

The forest industry pointed out during the inquiry that increased foreign investment is a spur to raising living standards and a path to creating jobs and increasing both vocational and educational skills.  Moreover, lower levels of unemployment and higher education standards are a clear means to reducing social tension.

Greenpeace's own version of reality in Indonesia

1 December: Greenpeace recently claimed victory in Indonesia, stating that its protest actions there had resulted in one of the country's largest pulp and paper producers being dropped by a major European buyer. Yet a close look at a timeline of events shows that Greenpeace hijacked a regular supplier change for its own purposes.

UPM, a major Finnish paper producer, had been purchasing pulp supplies from Indonesia for close to five years. Yet the recent acquisition of a pulp plant in Uruguay meant that the company's pulp demand could be met from within the company. APRIL was informed of the new arrangement at the beginning of November following a business decision taken by UPM in October.

Despite this, 24 hours after the new supplier arrangement was made public, Greenpeace hijacked the new arrangement, stating that UPM had dropped the Indonesian supplier on environmental grounds – clearly not supported by the facts on the ground.

The incident harks back to events at the beginning of the year when a group of Greenpeace campaigners stormed a boat containing wood that it claimed was illegal and belonged to Rimbunan Hijau, when neither was the case.

Yet the truth has never stopped Greenpeace's very effective spin machine.

FAO: forest industries are carbon positive

7 December: A new report from the Food and Agriculture Organization of the United Nations (FAO) demonstrates that the global forest industry overall has a beneficial impact on greenhouse gas emissions.

The draft report, 'The effects of the global forest products industry on atmospheric greenhouse gases' was published by the FAO at the recent UNFCCC conference in Copenhagen.

The report looked closely at global emissions from the forest products industry across the board. It found that carbon sequestration in forest products offset 86 per cent of emissions from all timber-related manufacturing processes, and half of all processes along the value chain, including shipping and transport. Net emissions across the entire value chain are around 467 million tons of CO2 annually.

But when displaced emissions are taken into account, that is avoided emissions by using timber products instead of high emission building products such as concrete or aluminium, the forest industry actually goes into positive territory, becoming carbon positive by 16 million tons. The report concludes that there is potential to increase this figure by another 130 million tons.

PNG dependent on agriculture

1 December: A new study published by Australian National University (ANU) indicates that agriculture plays a vital role in everyday life in PNG – but its significance is not appreciated. The study, 'Food and Agriculture in Papua New Guinea', notes the disparity in decision-making between PNG's large rural population (81 per cent) and the urban centres, where most policy decisions are made.

According to the study, just four other nations in the world have a higher percentage of the population living in rural areas. The report authors also note that more than 1 million households are dependent upon non-market subsistence agriculture.

The report reaffirms two things. First, that much of the deforestation and forest degradation taking place in Papua New Guinea is due to subsistence agriculture. And, second, that any attempts to implement REDD in Papua New Guinea with any degree of success will have to take subsistence agriculture into account. This will be much easier said than done.

Medal given for forest credits debunk, but scams live on

December: Two journalists, Ilya Gridneff of AAP (Australian Associated Press) and Natasha Loder of The Economist, were recently honoured for their investigative reports into the scandal surrounding the issuing of carbon credits for forest areas in Papua New Guinea.

The pair received an award from The Prince Albert Foundation/United Nations Correspondents Association (UNCA) Global Prize for coverage of Climate Change.

Despite the international coverage of the incident in high-profile publications around the globe, the carbon scam in PNG's forests appears to be going on.

SBS Australia, one of the country's national broadcasters, recently ran a four-part investigative report by journalist Brian Thomson into the ongoing sale of carbon credits to developed world buyers. By Thomson's account, the main protagonists behind the scandal are still operating in PNG's forests.

And all of this is taking place while Kevin Conrad, PNG's climate envoy, is attempting to find potential funders for the nation's forests in at the UNFCCC meeting in Copenhagen.

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