Forestry and Development E-News

 

Forestry and 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.

Forestry plays role in reducing poverty in rural PNG

October 10:  A new report from an Australian consulting firm reveals that private sector forestry investments play a vital role in reducing poverty in rural areas in Papua New Guinea.  The report, The Economic Contribution of Rimbunan Hijau's Operations in PNG', has found that forestry contributes significantly to economic and social development in rural areas.

The report, which was commissioned by forestry company Rimbunan Hijau (RH), details the private sector funding of roads, bridges, airstrips and services like health and education in rural areas. It found that RH's contributions in these areas exceeded government spending by as much as 80 per cent. 

Authored by Australian consulting firm ITS Global, the report indicates that the forestry industry contributed approximately 187 million kina ($US90 million) to the PNG economy in 2006; accounts for 5 per cent of PNG's exports and employs more than 9,000 people.

On its own, RH's forestry operations contributed just under 80 million kina (K) to the economy last year.  The company paid nearly K70 million last year in levies, royalties and duties. In addition, the company employs more than 4,000 forestry workers.

New PNG Forestry Minister Belden Namah said that he was "impressed" by the report, as it revealed the industry's positive contribution to the PNG economy.

The report comes at a time when the private sector is becoming a more significant player in aid delivery in PNG. RH is part of BAHA (Business Against HIV/AIDS), a private sector coalition that aims to deliver positive outcomes in the fight against HIV/AIDS. RH is the first forestry company in PNG to have a company-wide AIDS policy approved by BAHA.

Read the full report here.

APEC leaders make declaration on forests and climate

September 9:  The APEC Australia 2007 Conference was held on 2-9 September, and culminated with the 15th APEC Economic Leaders' Meeting.  At the conclusion of the meeting, the APEC Economic Leaders issued the Sydney APEC Leaders' Declaration on Climate Change, Energy Security and Clean Development, which included an Action Agenda on Forests.  The Declaration identifies the need for the promotion of sustainable forest management and combating illegal logging.  APEC Leaders also agreed to establish the Asia-Pacific Network for Sustainable Forest Management and Rehabilitation to strengthen capacity building and information sharing; and to work towards increasing forest cover in the APEC region by at least 20 million hectares by 2020.

In addition, Australia and Indonesia have signed the Kalimantan Forests and Climate Partnership agreement.  The partnership programme consists of preservation, restoration and reforestation works to which Australia will commit A$30 million. Australia also announced funding of A$15.7 million for the Asia-Pacific Forestry Skills and Capacity Building Programme.  The programme is aimed at assisting countries in the Asia-Pacific region to raise their level of forest management expertise and to improve their forests' carbon sequestration performance.

UN High-Level Event on Climate Change aims high

September 24: The UN-convened High-Level Event on Climate Change (HLECC) was held at the UN Headquarters in New York on September 24.  The meeting was aimed at building momentum for the UN Climate Change Conference, to be held on 3-14 December in Bali, at which negotiations are to take place for a post-2012 international climate change agreement.

The HLECC marked the first meeting of a newly-formed Coalition of Rainforest Nations. The coalition consists Brazil, Cameroon, Congo, Costa Rica, Gabon, Indonesia, Malaysia, Papua New Guinea, Colombia, the Democratic Republic of Congo and Peru. The group issued a Joint Statement which states that industrialized nations have "primary responsibility" for the "current atmospheric interference leading to global warming and its consequences". Consequently, the Coalition is seeking compensation payments for Reduced Emissions from Deforestation and Degradation (REDD).

Greenpeace and the World Conservation Union (IUCN) expressed their strong support for REDD incentives at the meeting.  Greenpeace stated a need for a 'Deforestation Reduction Mechanism' which would provide financing to end deforestation.  The IUCN has called for an encouragement of improved management of carbon rich wetlands and forests through economic incentives, as well as through the diffusion of knowledge of best practice.

 

Greens maintain unscrupulous attacks on PNG, ANZ

In more recent developments, Australian and New Zealand Greens campaigning against the proposed Gunns pulp mill in Tasmania are using the PNG forestry industry as a pawn in their campaign. The campaign is attacking Gunns' banker, ANZ. To gain further leverage on the bank, campaigners have unscrupulously dragged another ANZ client, Rimbunan Hijau, into the campaign.  All of Rimbunan Hijau's forestry operations in PNG are legal. The attacks are doubly unscrupulous, first relying on unsourced and unsubstantiated claims about levels of illegal logging in PNG, then drawing a link with a company that just happens to operate in that country. A recent ITTO draft report that has been eagerly flaunted by NGOs such as Greenpeace in their criticism of the industry did not at any point state that illegal logging was of concern in PNG. 

Earlier in October of this year, NZ Greens leader Russel Norman attempted to gain leverage on the forestry industry in PNG by making a formal complaint against ANZ to the New Zealand contact point of the OECD. He makes the claim that ANZ is violating its OECD responsibilities in developing countries by offering financial services to timber companies such as Rimbunan Hijau. These tactics have been tried previously in Australia by the Australian Conservation Foundation (ACF). The Australian OECD contact point considered the ACF case so lacking in merit that it was not forwarded to the OECD for a hearing. Again, this is a case of anti-forestry campaigners looking for headlines and attention rather than backing up their claims with facts about forestry in developing countries.

Greenpeace tactics hold little sway in developing countries

October 9: Greenpeace has come under pressure from local groups on both sides of the Pacific Ocean in relation to its anti-forestry activities. In Castelo dos Sonhos in Brazil, Greenpeace campaigners were ambushed by angry local residents and timber workers after they attempted to haul a tree trunk to Rio de Janeiro for an 'exhibition' on climate change. Locals were upset that the NGO did not ask locals for permission prior to removing the tree.

In Indonesia, Greenpeace has ignored the failure of its PNG-based Global Forest Rescue Station and established a 'Forest Defenders Camp' in Riau. In PNG, the Global Forest Rescue Station was designed to promote subsistence eco-forestry. It was an exercise that ultimately failed to bring sustainable development outcomes to the people of the region. Greenpeace's ongoing campaign against forestry and the oil palm industry across the region demonstrates that it has a very limited understanding of how to combat poverty in developing countries.

World Bank releases Forest Carbon Partnership Fund details

October 11: The World Bank has released details of the Forest Carbon Partnership Facility (FCPF). The FCPF is a market-based mechanism aimed at compensating developing countries for REDD.  It comprises a Readiness Fund, which aims at building carbon inventories for developing countries; and a Carbon Fund, which aims at piloting REDD payment schemes in approximately five countries. The target size for the Readiness fund is US$100 million; the target size for the Carbon Fund is $200 million. The World Bank has indicated that it will rely heavily on contributions from governments, the private sector and other public sector entities.  According to a World Bank presentation, the FCPF aims to have US$1 billion at its disposal for compensation payments by 2014. It has also stated in a concept note that it will work with the private sector in implementing programs.

 

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Forestry & Development E-News is published monthly by ITS Global (http://www.itsglobal.net/).

ITS Global are accredited assessors for the International Programme for the Endorsement of Forest Certification Schemes (PEFC)

 

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