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Saving Forests a Critical Step in Curbing Climate Change

Climate

World Wildlife Fund

It’s possible to reduce deforestation to near zero by 2020, but delaying action to save forests by even a decade means double the area of forests lost by 2030, says World Wildlife Fund (WWF).

According to the latest chapter of WWF’s Living Forests Report, "Forests and Climate," the world stands to lose 55.5 million hectares of forest between now and 2020, even if we take urgent action to reduce deforestation. If the world delays the necessary steps, we stand to lose 124.7 million hectares by 2030, according to the report.

These forests are not only vital to the well-being of people and wildlife, but also to the global climate, because deforestation releases greenhouse gases, says WWF. The report finds that reducing deforestation to near zero would also bring global emissions from forest destruction close to zero, but delaying this reduction until 2030 would mean sacrificing an additional 69 million hectares of forest worldwide and at least an additional 24GtCO2 into the atmosphere, not including losses from forest degradation or the carbon stored below ground. Currently, up to 20 percent of global carbon emissions come from deforestation and forest degradation—more than the total emissions from the global transportation sector.

The report further finds that new plantations are not the solution, as they will not begin to sequester enough carbon to offset emissions from deforestation until 2040 at the earliest.

“Our forests are disappearing while we sort out how to save them,” said Bruce Cabarle, leader of WWF’s Forest and Climate Initiative. “This continued loss of forests will have dire consequences for our global climate, for nature and for the livelihoods of billions of people. And we know we can’t plant our way out of the problem. The message is clear—we must act now to protect the world’s forests for good or we’ll lose them forever.”

According to WWF, United Nations climate talks, set to get underway this week in South Africa, provide a key opportunity for the world’s governments to unite on efforts to halt global forest loss. At these talks, details on a scheme in which developed countries pay developing countries not to cut down their forests will be agreed.

This effort, referred to as REDD+, is a unique opportunity to address both climate change and forest loss, and while considerable progress has been made on working out the details, governments must now commit to a global target for tackling deforestation at the scale and pace needed, said WWF. The Living Forests Report finds that achieving zero net forest loss by 2020 is highly unlikely without Reducing Emissions from Deforestation and Forest Degradation (REDD+).

“WWF understands that these climate negotiations are complex. But we must not let the opportunity that REDD+ presents slip through our fingers. If we get this right, we can safeguard our climate and help people overcome poverty. There is too much at stake to let these talks get mired down by technicalities,” said Gerald Steindlegger, policy director of WWF’s Forest and Climate Initiative.

WWF is asking global leaders to back an ambitious target of near zero forest loss by 2020. The Living Forests Report shows that this target is achievable through improved governance—sustainable land-use plans, law enforcement, improved land tenure systems, transparent and inclusive management, and markets that demand sustainable forestry and agriculture products.

Yet the report shows that in reaching this target, countries must adopt strong safeguards to protect the planet’s biodiversity and benefit local communities and indigenous peoples.

Given the urgency of halting forest loss, WWF is calling on governments to provide the needed finance to support REDD+ actions. Industrialized countries have a critical role to play in providing new and additional, adequate and predictable financing for REDD+. According to recent analysis by the International Institute for Applied Systems Analysis (IIASA), new and additional, predictable and adequate finance to achieve zero net deforestation and forest degradation (ZNDD) by 2020 lies in the range of US$30-53 billion per year. While public financing is essential, other sources of innovative financing, such as credit support for forest bonds, could be a way to leverage private-sector finance so that governments are not alone in efforts to scale up forest finance, according to WWF.

The Living Forests Report uses the Living Forests Model, developed for WWF by IIASA, to consider a range of different forest scenarios for the next half century, modified by changes in diet, biofuels, conservation policy and fuelwood and timber demand. The report concludes that achieving and sustaining ZNDD is possible if we act now. The report further finds that unless we act now to use REDD+ to successfully halt deforestation, the opportunity to keep global temperature rise well below 2oC will be lost. According to WWF, reaching an agreement on key elements of REDD+ is critical to saving forests and the climate, conserving biodiversity, and benefiting the well-being and livelihoods of people around the world.

To download the Living Forests Report, click here.

For more information, click here.

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Ola Elvestrun, Norway's environment minister, announced Thursday that it is freezing its contributions to the Amazon Fund, and will no longer be transferring €300 million ($33.2 million) to Brazil. In a press release, the Norwegian embassy in Brazil stated:

Given the present circumstances, Norway does not have either the legal or the technical basis for making its annual contribution to the Amazon Fund.

Brazilian President Jair Bolsonaro reacted with sarcasm to Norway's decision, which had been widely expected. After an official event, he commented: "Isn't Norway the country that kills whales at the North Pole? Doesn't it also produce oil? It has no basis for telling us what to do. It should give the money to Angela Merkel [the German Chancellor] to reforest Germany."

According to its website, the Amazon Fund is a "REDD+ mechanism created to raise donations for non-reimbursable investments in efforts to prevent, monitor and combat deforestation, as well as to promote the preservation and sustainable use in the Brazilian Amazon." The bulk of funding comes from Norway and Germany.

The annual transfer of funds from developed world donors to the Amazon Fund depends on a report from the Fund's technical committee. This committee meets after the National Institute of Space Research, which gathers official Amazon deforestation data, publishes its annual report with the definitive figures for deforestation in the previous year.

But this year the Amazon Fund's technical committee, along with its steering committee, COFA, were abolished by the Bolsonaro government on 11 April as part of a sweeping move to dissolve some 600 bodies, most of which had NGO involvement. The Bolsonaro government views NGO work in Brazil as a conspiracy to undermine Brazil's sovereignty.

The Brazilian government then demanded far-reaching changes in the way the fund is managed, as documented in a previous article. As a result, the Amazon Fund's technical committee has been unable to meet; Norway says it therefore cannot continue making donations without a favorable report from the committee.

Archer Daniels Midland soy silos in Mato Grosso along the BR-163 highway, where Amazon rainforest has largely been replaced by soy destined for the EU, UK, China and other international markets.

Thaís Borges.

An Uncertain Future

The Amazon Fund was announced during the 2007 United Nations Climate Change Conference in Bali, during a period when environmentalists were alarmed at the rocketing rate of deforestation in the Brazilian Amazon. It was created as a way of encouraging Brazil to continue bringing down the rate of forest conversion to pastures and croplands.

Government agencies, such as IBAMA, Brazil's environmental agency, and NGOs shared Amazon Fund donations. IBAMA used the money primarily to enforce deforestation laws, while the NGOs oversaw projects to support sustainable communities and livelihoods in the Amazon.

There has been some controversy as to whether the Fund has actually achieved its goals: in the three years before the deal, the rate of deforestation fell dramatically but, after money from the Fund started pouring into the Amazon, the rate remained fairly stationary until 2014, when it began to rise once again. But, in general, the international donors have been pleased with the Fund's performance, and until the Bolsonaro government came to office, the program was expected to continue indefinitely.

Norway has been the main donor (94 percent) to the Amazon Fund, followed by Germany (5 percent), and Brazil's state-owned oil company, Petrobrás (1 percent). Over the past 11 years, the Norwegians have made, by far, the biggest contribution: R$3.2 billion ($855 million) out of the total of R$3.4 billion ($903 million).

Up till now the Fund has approved 103 projects, with the dispersal of R$1.8 billion ($478 million). These projects will not be affected by Norway's funding freeze because the donors have already provided the funding and the Brazilian Development Bank is contractually obliged to disburse the money until the end of the projects. But there are another 54 projects, currently being analyzed, whose future is far less secure.

One of the projects left stranded by the dissolution of the Fund's committees is Projeto Frutificar, which should be a three-year project, with a budget of R$29 million ($7.3 million), for the production of açai and cacao by 1,000 small-scale farmers in the states of Amapá and Pará. The project was drawn up by the Brazilian NGO IPAM (Institute of Environmental research in Amazonia).

Paulo Moutinho, an IPAM researcher, told Globo newspaper: "Our program was ready to go when the [Brazilian] government asked for changes in the Fund. It's now stuck in the BNDES. Without funding from Norway, we don't know what will happen to it."

Norway is not the only European nation to be reconsidering the way it funds environmental projects in Brazil. Germany has many environmental projects in the Latin American country, apart from its small contribution to the Amazon Fund, and is deeply concerned about the way the rate of deforestation has been soaring this year.

The German environment ministry told Mongabay that its minister, Svenja Schulze, had decided to put financial support for forest and biodiversity projects in Brazil on hold, with €35 million ($39 million) for various projects now frozen.

The ministry explained why: "The Brazilian government's policy in the Amazon raises doubts whether a consistent reduction in deforestation rates is still being pursued. Only when clarity is restored, can project collaboration be continued."

Bauxite mines in Paragominas, Brazil. The Bolsonaro administration is urging new laws that would allow large-scale mining within Brazil's indigenous reserves.

Hydro / Halvor Molland / Flickr

Alternative Amazon Funding

Although there will certainly be disruption in the short-term as a result of the paralysis in the Amazon Fund, the governors of Brazil's Amazon states, which rely on international funding for their environmental projects, are already scrambling to create alternative channels.

In a press release issued yesterday Helder Barbalho, the governor of Pará, the state with the highest number of projects financed by the Fund, said that he will do all he can to maintain and increase his state partnership with Norway.

Barbalho had announced earlier that his state would be receiving €12.5 million ($11.1 million) to run deforestation monitoring centers in five regions of Pará. Barbalho said: "The state governments' monitoring systems are recording a high level of deforestation in Pará, as in the other Amazon states. The money will be made available to those who want to help [the Pará government reduce deforestation] without this being seen as international intervention."

Amazonas state has funding partnerships with Germany and is negotiating deals with France. "I am talking with countries, mainly European, that are interested in investing in projects in the Amazon," said Amazonas governor Wilson Miranda Lima. "It is important to look at Amazônia, not only from the point of view of conservation, but also — and this is even more important — from the point of view of its citizens. It's impossible to preserve Amazônia if its inhabitants are poor."

Signing of the EU-Mercusor Latin American trading agreement earlier this year. The pact still needs to be ratified.

Council of Hemispheric Affairs

Looming International Difficulties

The Bolsonaro government's perceived reluctance to take effective measures to curb deforestation may in the longer-term lead to a far more serious problem than the paralysis of the Amazon Fund.

In June, the European Union and Mercosur, the South American trade bloc, reached an agreement to create the largest trading bloc in the world. If all goes ahead as planned, the pact would account for a quarter of the world's economy, involving 780 million people, and remove import tariffs on 90 percent of the goods traded between the two blocs. The Brazilian government has predicted that the deal will lead to an increase of almost $100 billion in Brazilian exports, particularly agricultural products, by 2035.

But the huge surge this year in Amazon deforestation is leading some European countries to think twice about ratifying the deal. In an interview with Mongabay, the German environment ministry made it very clear that Germany is very worried about events in the Amazon: "We are deeply concerned given the pace of destruction in Brazil … The Amazon Forest is vital for the atmospheric circulation and considered as one of the tipping points of the climate system."

The ministry stated that, for the trade deal to go ahead, Brazil must carry out its commitment under the Paris Climate agreement to reduce its greenhouse gas emissions by 43 percent below the 2005 level by 2030. The German environment ministry said: If the trade deal is to go ahead, "It is necessary that Brazil is effectively implementing its climate change objectives adopted under the [Paris] Agreement. It is precisely this commitment that is expressly confirmed in the text of the EU-Mercosur Free Trade Agreement."

Blairo Maggi, Brazil agriculture minister under the Temer administration, and a major shareholder in Amaggi, the largest Brazilian-owned commodities trading company, has said very little in public since Bolsonaro came to power; he's been "in a voluntary retreat," as he puts it. But Maggi is so concerned about the damage Bolsonaro's off the cuff remarks and policies are doing to international relationships he decided to speak out earlier this week.

Former Brazil Agriculture Minister Blairo Maggi, who has broken a self-imposed silence to criticize the Bolsonaro government, saying that its rhetoric and policies could threaten Brazil's international commodities trade.

Senado Federal / Visualhunt / CC BY

Maggi, a ruralista who strongly supports agribusiness, told the newspaper, Valor Econômico, that, even if the European Union doesn't get to the point of tearing up a deal that has taken 20 years to negotiate, there could be long delays. "These environmental confusions could create a situation in which the EU says that Brazil isn't sticking to the rules." Maggi speculated. "France doesn't want the deal and perhaps it is taking advantage of the situation to tear it up. Or the deal could take much longer to ratify — three, five years."

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Maggi is worried about another, even more alarming, potential consequence of Bolsonaro's failure to stem illegal deforestation — Brazil could be hit by a boycott by its foreign customers. "I don't buy this idea that the world needs Brazil … We are only a player and, worse still, replaceable." Maggi warns, "As an exporter, I'm telling you: things are getting very difficult. Brazil has been saying for years that it is possible to produce and preserve, but with this [Bolsonaro administration] rhetoric, we are going back to square one … We could find markets closed to us."

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