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News articles on carbon finance
Mongabay.com news articles on carbon finance in blog format. Updated regularly.
(12/06/2011) How to finance a means to reduce deforestation, which contributes emissions equivalent to the entire transport sector combined, has had some encouragement at the UN Climate meeting in Durban this week. An à la carte approach, where no source is ruled out, is emerging, leaving the door open to private sector finance for the first time. And with progress imminent in two other crucial areas of safeguards and reference levels, REDD+, a novel mechanism to halt deforestation, is once more likely to be the biggest winner.
REDD project gets initial go-ahead in Cameroon
(12/05/2011) The government of Cameroon approved a feasibility assessment for the first REDD+ project in the Central African nation, reports the Global Green Carbon Corporation, which is developing the project.
Protections for indigenous rights, biodiversity weakened in latest REDD+ text
(12/04/2011) Safeguards to ensure forest carbon projects protect biodiversity and respect the rights of local and indigenous communities were weakened in the latest draft text on REDD+ at climate talks in Durban, reports CIFOR, a forest policy and research institution. The draft text, which will now move forward to a plenary session for approval, also dropped any decision on financing of REDD+ projects.
Global map of REDD+ projects released
(12/03/2011) The Center for International Forestry Research (CIFOR) on Saturday released a comprehensive map of the world's REDD+ programs. The map includes 340 REDD+ projects, programs, and policies in 52 countries.
REDD+ text for saving forests released in Durban
(12/03/2011) An initial draft text on REDD+ — a proposed mechanism to compensate tropical countries for reducing emissions from deforestation and degradation — has moved forward for discussion and approval at climate talks in Durban.
Sierra Leone creates rainforest park
(12/03/2011) Sierra Leone, one of Africa's poorest countries, today announced the establishment of Gola Rainforest National Park (GRNP), an area of forest home to chimpanzees, a key population of pygmy hippo, and hundreds of bird species, reports the Royal Society for the Protection of Birds (RSPB).
Carbon piracy, lack of recognition of indigenous rights undermining REDD in Peru, alleges report
(11/30/2011) Lack of meaningful consultation with indigenous communities over forest carbon projects is causing social conflict and undermining efforts to responsibly reduce emissions from deforestation and forest degradation in Peru under the REDD mechanism, argues a new report released during international climate talks in Durban.
California finalizes cap-and-trade program
(10/24/2011) Bucking long-stalled efforts in the US to combat global climate change, California has approved final rules for a cap-and-trade program set to go into effect in 2013. The program will require large polluters in California to reduce emissions or to 'trade' emissions on the carbon market with another company or initiative that is sequestering carbon. The rules even allow companies outside the state to participate, creating clean energy incentives across the US.
New study: price carbon at the point of fossil fuel extraction
(10/17/2011) Global carbon emissions are a complicated matter. Currently, officials estimate national fossil fuel-related emissions by what is burned (known as production) within a nation, but this approach underestimates the emissions contributions from countries that extract oil and oil for export. Is there a better way to account for a country's total climate change footprint?
Australia's carbon tax moves closer to reality
(10/12/2011) By a margin of just two votes (74-72), Australia's plan to put a price on carbon passed its toughest hurdle today. It is now expected that the Australian legislator will moved forward to put the carbon tax into law. The carbon tax, pushed aggressively by Australian Prime Minister Julia Gillard, was just as ferociously opposed by business leaders and opposition party leader, Tony Abbott.
Should public or private money finance efforts to save forests?
(10/11/2011) The 11th Rights and Resources Initiative Dialogue on Forests, Governance and Climate Change in London, which will focus on The Status and Role of Public and Private Finance to Reduce Forest Loss and Degradation. The goal of the RRI Dialogue is to examine the current state of public and private financial mechanisms for REDD+ and adaptation and contribute to developing an updated vision for the optimal design and deployment of finance to reduce forest loss and degradation - while respecting the rights and development needs of local people. RRI has partnered with Mongabay.com to present two diverging viewpoints on issues to be discussed at length at the dialogue, featuring Vicky Tauli-Corpuz (Executive Director, Tebtebba) and Scott Poynton (Executive Director, The Forest Trust).
Forest carbon projects rake in $178 million in 2010
(09/29/2011) Investors funneled $178 million into forest carbon projects intended to mitigate global climate change last year, according to a new report by Forest Trends' Ecosystem Marketplace. By trading a record 30.1 million tons of carbon dioxide equivalent (MtC02e), the market saw a 48 percent rise over 2009—including a rise in private investors over non-profits as well as greater support for the global program Reduced Emissions from Deforestation and forest Degradation (REDD)—shows that the burgeoning market may be beginning to make good on its promise to provide funds to save forests for their ecosystem services with an initial focus on carbon.
Panama canal drives forest conservation, offers insight on value of ecosystems
(09/26/2011) As demonstrated by growing enthusiasm for conserving forests and the rise of the Reducing Emissions from Deforestation and Degradation (REDD+) program, the public is increasingly aware of the role forests play in delivering ecosystems services — like clean air and water — that benefit mankind. Yet, science still lags conventional wisdom — researchers have yet to fully quantify much of what healthy forests provide. Bridging this gap is key to unlocking the full value of protecting and restoring tropical forests. The ambitious Agua Salud Project in Panama is attempting to do just that.
Conservationists renew push for 'rainforest bonds'
(09/19/2011) Conservationists are renewing a push for a special class of 'rainforest bonds' to fund efforts to conserve tropical forests.
Biodiversity and Social Carbon: Sustainable Development and the Carbon Market - Book Review
(09/18/2011) Our 21st century economy faces to twin challenges - biodiversity loss and climate change - and in Biodiversity and Social Carbon, authors Divaldo Rezende and Stefano Merlin, describe the Social Carbon methodology and its approach to protecting and enhancing biodiversity while mitigating climate change. Moreover, the authors also provide numerous case studies on how the Social Carbon methodology functions.
Germany backs out of Yasuni deal
(06/13/2011) Germany has backed out of a pledge to commit $50 million a year to Ecuador's Yasuni ITT Initiative, reports Science Insider. The move by Germany potentially upsets an innovative program hailed by environmentalists and scientists alike. This one-of-a-kind initiative would protect a 200,000 hectare bloc in Yasuni National Park from oil drilling in return for a trust fund of $3.6 billion, or about half the market value of the nearly billion barrels of oil lying underneath the area. The plan is meant to mitigate climate change, protect biodiversity, and safeguard the rights of indigenous people.
Environment versus economy: local communities find economic benefits from living next to conservation areas
(06/12/2011) While few would question that conserving a certain percentage of land or water is good for society overall, it has long been believed that protected areas economically impoverish, rather than enrich, communities living adjacent to them. Many communities worldwide have protested against the establishment of conservation areas near them, fearing that less access and increased regulations would imperil their livelihoods. However, a surprising study overturns the common wisdom: showing that, at least in Thailand and Costa Rica, protected areas actually boost local economies and decrease poverty.
Despite setbacks, voluntary carbon markets booming
(06/06/2011) The voluntary carbon market posted a 34 percent gain in 2010, trading a record 131 million tons of carbon dioxide equivalent (MtC02e). While the US accounted for the majority of trading activity, worth $424 million in total, market growth was strongest in developing countries.
Is Indonesia losing its most valuable assets?
(05/16/2011) Deep in the rainforests of Malaysian Borneo in the late 1980s, researchers made an incredible discovery: the bark of a species of peat swamp tree yielded an extract with potent anti-HIV activity. An anti-HIV drug made from the compound is now nearing clinical trials. It could be worth hundreds of millions of dollars a year and help improve the lives of millions of people. This story is significant for Indonesia because its forests house a similar species. In fact, Indonesia's forests probably contain many other potentially valuable species, although our understanding of these is poor. Given Indonesia's biological richness — Indonesia has the highest number of plant and animal species of any country on the planet — shouldn't policymakers and businesses be giving priority to protecting and understanding rainforests, peatlands, mountains, coral reefs, and mangrove ecosystems, rather than destroying them for commodities?
Tropical countries aim for global forest pact
(04/18/2011) Representatives from more than 30 countries are expected to hammer out a formal agreement for future discussions on forest and climate issues when they meet next month in the Republic of Congo, reports the Wildlife Conservation Society (WCS).
Greenpeace says McKinsey's REDD+ work could encourage deforestation
(04/07/2011) One of the world's top consultancies, McKinsey & Co., is providing advice to governments developing 'Reducing Emissions from Deforestation and Degradation' (REDD+) programs that could increase risks to tropical forests, claims a new report published by Greenpeace. The report, Bad Influence – how McKinsey-inspired plans lead to rainforest destruction, says that McKinsey’s REDD+ cost curve and baseline scenarios are being used to justify expansion of industrial capacity in Indonesia, Papua New Guinea, Democratic Republic of Congo, and Guyana.
What is the current status of REDD+?
(03/23/2011) The Reducing Emissions from Deforestation and Degradation (REDD) mechanism is supposed to be the great hope for saving the world's forests. Advocates say REDD — now known as REDD+ — could finally create financial incentives for keeping forests standing instead of chopping them down for timber, pulp and paper, cattle, palm oil, and rubber. At the same time, REDD could generate benefits for the rural poor, while safeguarding biodiversity and other ecosystem services. But the devil is in the details. Ensuring that REDD is properly designed, funded, and implemented means that progress has been slower than some supporters have hoped. A poorly designed REDD may be worse than no REDD at all. So where does that leave REDD now? Mongabay asked John-O Niles, the Director of the Tropical Forest Group, for his thoughts on the current status of REDD policy.
PUMA goes carbon neutral by protecting lions in Kenya
(03/23/2011) PUMA, the sporting goods brand, and its parent company PPR will offset their 2010 carbon dioxide emissions by purchasing carbon credits generated through conservation of wildlife habitat in Kenya.
Regulators Learning From Voluntary Carbon Markets
(03/14/2011) The global carbon markets began quietly in the late 1980s as part of a voluntary effort to save rainforests, but these small, voluntary efforts were quickly eclipsed – and often dismissed – when the Kyoto Protocol ushered in compliance markets a decade later. Now, however, it’s the compliance markets that are turning to the voluntary markets for guidance as regulators and voluntary market players rush to meet halfway.
Where is REDD heading? Forest carbon week in review
(03/08/2011) REDD may still be at a standstill in Indonesia, but there is positive news coming out of the United Nations REDD Program. UN-REDD released its five-year strategic plan, and Nigeria is finalizing its readiness proposal to submit to the UN-REDD policy. More news inside this week's Forest Carbon news.
Nigeria moving forward on REDD to protect last remaining forests
(02/19/2011) The tiny state of Cross River, Nigeria, has managed to preserve large swathes of endangered rainforest despite lucrative – and often intimidating – offers from loggers and other interests. It's also laid the groundwork for a state-wide program designed to earn international carbon credits by saving trees, thus securing its spot in an elite network of states that are moving forward as UN talks stall.
Can 'water footprinting' help cut the 500 liters of H2O needed to produce a carton of OJ?
(02/11/2011) Carbon trading promotes good behavior by creating a standardized currency representing a verifiable environmental benefit. Payments for watershed services do the same for cutbacks in water pollution, albeit on a smaller scale. Now, the Nature Conservancy and the Coca-Cola Company are experimenting with a new method of “water footprinting” that could do the same for total water use – a key component in the development of a market-based scheme that would promote responsible water usage.
Zambia building a carbon exchange
(02/11/2011) Carbon finance can help rural Africans establish more sustainable ways of doing business, and several efforts are underway to build carbon exchanges that can help project developers identify prices and manage risk. These efforts will only generate meaningful change, however, if the rural poor understand carbon markets and how to access them. The African Carbon Credit Exchange aims to build that understanding.
With REDD, could financial markets become species' extinction risk?
(01/06/2011) The emergence of a Reducing Emissions from Deforestation and Degradation (REDD) mechanism for protecting forests could introduce new risks for biodiversity by linking conservation finance to exotic financial derivatives, warn researchers writing in the journal Conservation Letters. Jacob Phelps, Edward L. Webb, and Lian P. Koh argue that REDD could effectively link the fate of some species to the short-term whims of the carbon market. Conservation projects funded primarily by REDD are most at risk of being undermined by declining in carbon prices or changing investor preference. The authors add that the short-term nature of REDD—which is seen as a stop gap measure of at most 30 years—may fail deliver benefits over the time-scale need to safeguard biodiversity.
New data shows REDD+ is succeeding
(12/15/2010) Amid the whirlwind of climate change news before and after the Cancún climate conference, including a landmark agreement on REDD+ (reducing emissions from deforestation, and related pro-forest actions), an important story seems to have passed by with little notice. Over the past two months, several new analyses have given clear evidence that deforestation has gone down over the past several years. In fact, the drop is quite impressive, and shows that of all the approaches to avoiding the worst consequences of global warming, reducing tropical deforestation is the one that has contributed by far the most to date.
Rainforest protection should focus on boosting resilience to climate change
(12/02/2010) Efforts to protect tropical forests under the proposed reducing emissions from deforestation and degradation (REDD) program should focus on conserving large-scale moisture gradients and areas that provide connectivity between major ecozones in order to reduce the impacts of climate change on ecosystem function and the compounding effects of deforestation, argue scientists writing in the journal Nature.
Leading model undervalues true cost of reducing deforestation, says report
(11/25/2010) A widely used representation of greenhouse gas emissions abatement costs doesn't reflect the true costs of forest conservation, making the proposed reducing emissions from deforestation and degradation (REDD) mechanism seem cheaper than it actually is, argues a new report from the Rainforest Foundation UK.
Indonesia's forest protection plan at risk, says report
(11/25/2010) Industrial interests are threatening to undermine Norway's billion dollar partnership with Indonesia, potentially turning the forest conservation deal into a scheme that subsidizes conversion of rainforests and peatlands for oil palm and pulp and paper plantations, logging concessions, and energy production, claims a new report from Greenpeace.
Oil, indigenous people, and Ecuador's big idea
(11/23/2010) Ecuador's big idea—potentially Earth-rattling—goes something like this: the international community pays the small South American nation not to drill for nearly a billion barrels of oil in a massive block of Yasuni National Park. While Ecuador receives hundred of millions in an UN-backed fund, what does the international community receive? Arguably the world's most biodiverse rainforest is saved from oil extraction, two indigenous tribes' requests to be left uncontacted are respected, and some 400 million metric tons of CO2 is not emitted from burning the oil. In other words, the international community is being asked to put money where its mouth is on climate change, indigenous rights, and biodiversity loss. David Romo Vallejo, professor at the University of San Francisco Quito and co-director of Tiputini research station in Yasuni, recently told mongabay.com in an interview that this is "the best proposal so far made to ensure the protection of this incredible site."
Former Indonesian REDD+ negotiator arrested on corruption charge
(10/30/2010) Wandojo Siswanto, one of the lead negotiators for Indonesia's delegation at last year's climate talks in Copenhagen and a key architect of its Reduced Emissions from Deforestation and Degradation (REDD) program, has been arrested and charged with receiving bribes.
California puts fate of tropical rainforests up for vote
(10/27/2010) When you vote on Nov. 2, remember that Peru is planning to save all of its rain forest. To reach the zero deforestation goal, a new environmental policy put in place last year calls for innovative payments to indigenous people and peasants, who control around a quarter of the forest, and a mosaic of protected areas and sustainable timber production for much of the rest. Environmental costs are being rolled into environmental impact assessments, and the country is formulating new ways to mitigate and compensate for the effects of big development projects, such as roads and dams. Meanwhile, California is poised to make a headlong leap in the other direction. Proposition 23 on the Nov. 2 ballot would kill the state's 2006 climate law by permitting it to kick in only if California becomes a full-employment economic utopia of a sort not yet seen on this continent. While much of the Proposition 23 debate revolves around the important effects here, this policy U-turn could thwart budding environmental efforts around the world, such as those in Peru.
Foreign corporations devastating Papua New Guinea rainforests
(10/21/2010) A letter in Nature from seven top scientists warns that Papua New Guinea's accessible forest will be lost or heavily logged in just ten to twenty years if swift action isn't taken. A potent mix of poor governance, corruption, and corporate disregard is leading to the rapid loss of Papua New Guinea's much-heralded rainforests, home to a vast array of species found no-where else in the world. "Papua New Guinea has some of the world's most biologically and culturally rich forests, and they’re vanishing before our eyes," author William Laurance of James Cook University in Cairns, Australia, said in a statement.
Pulp and paper firm signs carbon deal in Sumatra
(10/05/2010) Indonesian pulp and paper firm Asia Pulp and Paper (APP) has signed a deal to protect 15,640 hectares of peat forest in Sumatra in exchange for carbon payments, reports Reuters.
Conserving nature with economics
(09/29/2010) While many factors come into consideration when the fate of forests are being determined, economics often play a key role in land use decisions. When the perceived value of forest land is higher as cattle pasture, cropland, or plantation, then trees fall. But what happens when economic assumptions underlying these decisions are wrong? Forests, including the services they provide and the biodiversity they shelter, are lost in vain, much to the detriment of society and the planet. Working to avoid these costly outcomes is the Conservation Strategy Fund (CSF), a California-based nonprofit that trains conservationists to use economics and strategic thinking as assets to conserve natural ecosystems in countries around the globe. CSF runs training programs that help emerging conservation leaders build and strengthen parks, influence policies, and avert damage from infrastructure projects.
Oil palm plantations on peatlands won't get carbon credits under CDM
(09/19/2010) Plantations on peatlands will no longer be supported by the Clean Development Mechanism (CDM), a framework for industrialized countries to reduce their emissions via projects in developing countries, reports Wetlands International.
Indonesia's forest carbon negotiator named as corruption suspect
(09/17/2010) Wandojo Siswanto, one of the lead negotiators for Indonesia's climate delegation in Copenhagen and a key architect of its Reduced Emissions from Deforestation and Degradation (REDD) program, has been named as a corruption suspect by the country's anti-corruption agency, KPK, reports Reuters.
A look at Ecuador's agreement to leave 846 million barrels of oil in the ground
(09/13/2010) Ecuador's pioneering initiative to voluntarily leave nearly a billion barrels of oil under Yasuní National Park, an Amazonian reserve that is arguably the most biodiverse spot on Earth, took a major step forward in early August when the government signed an accord with the United Nations Development Programme (UNDP) for the long-awaited establishment of a trust fund. The signing event generated a wave of international media attention, but there has been very little scrutiny of what was actually signed. Here we present an initial analysis of the signed agreement, along with a brief discussion of some of the potential caveats. Due to the precedent-setting nature of this agreement, attention to the details is now of the utmost importance.
Could forest conservation payments undermine organic agriculture?
(09/07/2010) Forest carbon payment programs like the proposed reducing emissions from deforestation and degradation (REDD) mechanism could put pressure on wildlife-friendly farming techniques by increasing the need to intensify agricultural production, warns a paper published this June in Conservation Biology. The paper, written by Jaboury Ghazoul and Lian Pin Koh of ETH Zurich and myself in September 2009, posits that by increasing the opportunity cost of conversion of forest land for agriculture, REDD will potentially constrain the amount of land available to meet growing demand for food. Because organic agriculture and other biodiversity-friendly farming practices generally have lower yields than industrial agriculture, REDD will therefore encourage a shift toward from more productive forms of food production.
Peru's rainforest highway triggers surge in deforestation, according to new 3D forest mapping
(09/06/2010) Scientists using a combination of satellite imagery, airborne-laser technology, and ground-based plot surveys to create three-dimensional high resolution carbon maps of the Amazon rainforest have documented a surge in emissions from deforestation and selective logging following the paving of the Trans-Oceanic Highway in Peru. The study, published this week in the early edition of the Proceedings of the National Academy of Sciences, reveals that selective logging and other forms of forest degradation in Peru account for nearly a third of emissions compared to deforestation alone.
How best to balance economic growth and protection of the environment?
(08/30/2010) When people are hungry for an uncertain income, they will destroy everything. When people become poor due to a poor decision they were excluded from making, who should be responsible for that? Development is seen as the answer to poverty. However, many controversial developments have actually increased poverty, and while the investors in such schemes may benefit, the local people pay the price. This happened in Tundai, a fishing village in the ex-mega rice area near Palangkaraya, Central Kalimantan. When central government in the 1990s decided to convert the peat swamp forests into rice fields, the community had no voice or involvement in the decision. The project failed. Now over a million hectares of former lush forests have become a wasteland, and the people of Tundai have been thrust into poverty.
Indonesia's forest conservation plan may not sufficiently reduce emissions
(08/25/2010) One third of Indonesia's greenhouse gas emissions from deforestation originate from areas not officially defined as 'forest' suggesting that efforts to reduce emissions from deforestation and degradation (REDD+) may fail unless they account for carbon across the country's entire landscape, warns a new report published by the World Agroforestry Centre (CGIAR). The policy brief finds that up to 600 million tons of Indonesia's carbon emissions 'occur outside institutionally defined forests' and are therefore not accounted for under the current national REDD+ policy, which, if implemented, would enable Indonesia to win compensation from industrialized countries for protecting its carbon-dense forests and peatlands as a climate change mechanism.
Gazprom, Shell and Clinton Foundation back rainforest carbon deal in Borneo
(08/24/2010) A forest conservation project backed by Shell, Gazprom Market and Trading and the Clinton Foundation on the island of Borneo has won approval under a carbon accounting standard, reports Reuters.
$28 billion pledged by rich nations to fight climate change
(08/24/2010) $27.9 billion in "fast-start" funding has so far been pledged by industrialized countries to help developing countries mitigate and adapt to climate change, according to a new climate finance tracking tool released by the World Resources Institute (WRI). The tool aims to create transparency around climate change funds to ensure that rich countries follow through on their commitments and that the money is not wasted or "lost."
Indonesia gets first $30M from Norway under $1B forest deal
(08/19/2010) Norway has agreed to transfer an initial $30 million to Indonesia under its $1 billion REDD+ (reducing emissions from deforestation and forest degradation) partnership with the Southeast Asian country.
Reforestation of rainforests sequesters more carbon than plantations
(08/03/2010) A new study in Ecological Management & Restoration has found that reforesting rainforest captures more carbon than monoculture plantation and even mixed species plantations. The research tested three projects in north-eastern Australia: a rainforest reforesting project using a variety of native trees, a mixed species plantation, and a monoculture plantation of conifers.
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