Weekly Newsletter | | Other topics

News articles on Environmental Economics

---

Mongabay.com news articles on environmental economics in blog format. Updated regularly.

Why Europe torpedoed the REDD forests-for-carbon credits initiative
(3/5/2008) Reducing emissions from deforestation and forest degradation (REDD) has been widely lauded as a mechanism that could fund forest conservation and poverty alleviation efforts while fighting climate change. At the December U.N. climate meeting in Bali, delegates agreed to include REDD in future discussions on a new global warming treaty — a move that could eventually lead to the transfer of billions of dollars from industrialized countries to tropical nations for the purpose of slowing greenhouse gas emissions by reducing deforestation rates. Conservationists and scientists applauded the decision.


Fighting illegal logging to be a top G8 priority in 2008
(3/5/2008) As it assumes the chair of the G8, Japan will make sustainable forest management a top priority, said a top Japanese government official.


Half the Amazon rainforest will be lost within 20 years
(2/27/2008) More than half the Amazon rainforest will be damaged or destroyed within 20 years if deforestation, forest fires, and climate trends continue apace, warns a study published in Philosophical Transactions of the Royal Society B. Reviewing recent trends in economic, ecological and climatic processes in Amazonia, Daniel Nepstad and colleagues forecast that 55 percent of Amazon forests will be "cleared, logged, damaged by drought, or burned" in the next 20 years. The damage will release 15-26 billion tons of carbon into the atmosphere, adding to a feedback cycle that will worsen both warming and forest degradation in the region. While the projections are bleak, the authors are hopeful that emerging trends could reduce the likelihood of a near-term die-back. These include the growing concern in commodity markets on the environmental performance of ranchers and farmers; greater investment in fire control mechanisms among owners of fire-sensitive investments; emergence of a carbon market for forest-based offsets; and the establishment of protected areas in regions where development is fast-expanding.


Carbon trading could protect forests, reduce rural poverty
(2/26/2008) Carbon trading from avoided deforestation (REDD) credits could yield billions of dollars for tropical countries, according to analysis by mongabay.com, a leading tropical forest web site.


Reducing deforestation rates 10% could generate $13B in carbon trading under REDD
(2/25/2008) Cutting global deforestation rates 10 percent could generate up to $13.5 billion in carbon credits under a reducing emissions from deforestation ("REDD") initiative approved at the U.N. climate talks in Bali this past December, estimate researchers writing in Philosophical Transactions of the Royal Society B. But the researchers caution there are still substantial obstacles to overcome before carbon-credits-for-rainforest-conservation becomes a reality.


Brazil's ecosystem payments system offers clues for REDD implementation
(2/24/2008) Brazil's existing system for environmental services payments could offer insight for implementing carbon-credits-for-forest-conservation (REDD) initiatives in the Amazon rainforest, argues a London School of Economics researcher in a new paper published in Philosophical Transactions of the Royal Society B.


Is Guyana's logging deal in its best interests?
(2/21/2008) In January Guyana awarded U.S. timber firm Simon & Shock International a 400,000-hectare (988,400-acre) logging concession near the Brazilian border. Final approval hinges on the completion of an environmental impact survey and a tree inventory. While Simon & Shock International says it plans to conduct selective logging, the firm has not announced whether it will seek Forest Stewardship Council certification, a mark for responsibly-harvested timber. Is there an alternative that can improve the lot for the average Guyanese? There may be. Last fall Guyana's President, Bharrat Jagdeo, hinted at the potential of using the country's forests as a giant carbon offset to counter climate change.


Carbon traders, not conservationists, could save Cameroon rainforest
(2/15/2008) The government of Cameroon is looking to lease 830,000 hectares of biodiverse tropical forest to conservationists for an annual sum of $1.6 million. The problem? No conservation groups are interested. Apparently the asking price is too high, according to The Economist.


First rainforest-for-carbon-credits deal becomes a reality
(2/7/2008) Villagers in Aceh, the Indonesian province that suffered through three decades of civil war and lost some 170,000 people to the 2004 Indian Ocean tsunami, could soon see $26 million in carbon credits for protecting rainforests from logging under a deal announced today between conservationists, carbon traders, and the Aceh government.


How much would it cost to end Amazon deforestation?
(1/27/2008) With Brazil last week announcing a significant jump in Amazon deforestation during the second half of 2007, the question emerges, how much would it cost to end the destruction of Earth's largest rainforest?


55% of the Amazon may be lost by 2030
(1/23/2008) Cattle ranching, industrial soy farming, and logging are three of the leading drivers of deforestation in the Brazilian Amazon. As commodity prices continue to rise, driven by surging demand for biofuels and grain for meat production, the economic incentives for developing the Amazon increase. Already the largest exporter of beef and the second largest producer of soy - with the largest expanse of "undeveloped" but arable land of any country - Brazil is well on its way to rivaling the U.S. as the world's agricultural superpower. The trend towards turning the Amazon into a giant breadbasket seems unstoppable. Nevertheless the decision at the U.N. climate talks in Bali to include "Reducing Emissions From Deforestation and Degradation" (REDD) in future climate treaty negotiations may preempt this fate, says Dr. Daniel Nepstad, a scientist at the Woods Hole Research Institute.


Rich countries grow at ecological expense of poor countries
(1/21/2008) The costs of environmental degradation caused by rich countries are disproportionately falling on the world's poorest countries, reports an analysis published in the journal Proceedings of the National Academy of Sciences.


Invasive species hurt developing world economies
(1/18/2008) The 'real' costs of invasive species are underestimated in developing countries, argues a new report that calls for more research into the environmental, social and economic impact of non-native plants and animals.


U.S. hijacks climate talks, kills rainforest conservation plan
(12/11/2007) The United States again wrought havoc at UN Climate Change talks. In the early morning hours of talks, as diplomats faced exhaustion, the United States pulled the equivalent of a diplomatic nuclear option, scuttling frantic global efforts to save tropical forests.


U.S. contributes $0 to World Bank's new $300m forest carbon fund
(12/11/2007) At U.N. climate talks in Bali, the World Bank officially unveiled its $300 million Forest Carbon Partnership Facility, a scheme that will offer tropical countries carbon offset credits to preserve forests.


10% of global CO2 emissions result from swamp destruction
(12/10/2007) More than 10 percent of annual carbon dioxide emissions result from the degradation and destruction of peat swamps, reports the first comprehensive global assessment on the links between peatland degradation and climate change.


REDD will fail if needs of forest communities aren't addressed
(12/7/2007) Initiatives to reduce emissions by reducing tropical deforestation (REDD) will fail unless policymakers adequately address the underlying drivers of forest degradation and destruction, argues a new report published by the Center for International Forestry Research (CIFOR).


Peatlands restoration is a cheap way to cut CO2 emissions
(12/7/2007) Rehabilitating damaged peatlands in Indonesia may be one of the most cost-effective ways to cut emissions of greenhouse gases, said an international NGO.


Conservation promotes larger fish stocks and higher profits for fishermen
(12/6/2007) Using conservation techniques can promote larger fish stocks and higher profits for fishermen, reports a study published in the journal Science. The research suggests that industry opposition to lower catches in the short term, may be misguided.


Merrill Lynch announces carbon credits-for-forest conservation partnership
(12/6/2007) Merrill Lynch is working with Carbon Conservation, an ecosystem services firms, to explore opportunities in avoided deforestation and integrated sustainable land management. The partnership was announced Thursday in Bali, Indonesia, where more than 10,000 policymakers, scientists, and activists are meeting to discuss a post-Kyoto framework on limiting climate change.


Returns from carbon offsets could beat palm oil in Congo DRC
(12/4/2007) A proposal to pay the Democratic of Congo (DRC) for reducing deforestation could add 15-50 percent to the amount of international aid given to the warn-torn country, reports a new study published by scientists at the Woods Hole Research Center (WHRC). The funds would help alleviate rural poverty while cutting emissions of greenhouse gases and protecting threatened biodiversity.


Amazon deforestation could be eliminated with carbon priced at $3
(12/4/2007) The Amazon rainforest could play a major part in reducing greenhouse gas emissions that result from deforestation, reports a new study published by scientists at the Woods Hole Research Center, the Instituto de Pesquisa Ambiental da Amazônia, and the Universidade Federal de Minas Gerais. At a carbon price of $3 per ton, protecting the Amazon for its carbon value could outweigh the opportunity costs of forgoing logging, cattle ranching, and soy expansion in the region. 2008 certified emission-reduction credits for carbon currently trade at more than $90 per ton ($25 per ton of CO2).


Can wildlife conservation banking generate investment returns?
(11/27/2007) A commercial venture in the Malaysian rainforest will seek to generate competitive returns on investment by protecting wildlife. The scheme -- signed by the Sabah government and Sydney-based New Forests Pty Ltd -- will establish a wildlife habitat conservation bank to manage the 34,000 ha Malua Forest Reserve on the island of Borneo.


Dutch bank arranges carbon-conservation deal in the Amazon rainforest
(11/27/2007) Dutch bank Rabobank will launch the first-ever carbon credits project in the Xingu region of the Brazilian Amazon, reports The Financial Times.


Is the oil-palm industry using global warming to mislead the public?
(11/23/2007) Members of the Indonesian Palm Oil Commission are distributing materials that misrepresent the carbon balance of oil-palm plantations, according to accounts from people who have seen presentations by commission members. These officials are apparently arguing that oil-palm plantations store and sequester many times the amount of CO2 as natural forests, and therefore that converting forests for plantations is the best way to fight climate change. In making such claims, these Indonesian representatives evidently are ignoring data that show the opposite, putting the credibility of the oil-palm industry at risk, and undermining efforts to slow deforestation and rein in greenhouse gas emissions.


Carbon offset returns beat forest conversion for agriculture in Indonesia
(11/21/2007) Conversion of forests and peatlands for agriculture in Indonesia has generated little economic benefit while releasing substantial amounts of greenhouse gases into the atmosphere, reports a new study from the the World Agroforestry Centre (ICRAF), the Center for International Forestry Research (CIFOR) and their Indonesian partners.


Oil palm does not store more carbon than forests
(11/8/2007) Officials from the Indonesian ministry of agriculture and the palm oil industry are distributing materials that misrepresent the carbon balance oil palm plantations, according to accounts from people who have seen presentations by members of the Indonesian Palm Oil Commission. Ministry of agricultural officials are apparently arguing that oil palm plantations store and sequester many times the amount of CO2 as natural forests and therefore converting forests for plantations is the best way to fight climate change. In making such claims, these Indonesian officials are ignoring data that show the opposite, putting the credibility of the oil palm industry at risk, and undermining efforts to slow deforestation and reign in greenhouse gas emissions.


Avoided deforestation beats timber, palm oil, in tax revenue for Indonesia
(10/29/2007) Indonesia could more than double its tax revenue by protecting forests and selling the resulting carbon emission credits instead of timber and palm oil, a University of Michigan researcher told Bloomberg.


Is the Amazon more valuable for carbon offsets than cattle or soy?
(10/17/2007) After a steep drop in deforestation rates since 2004, widespread fires in the Brazilian Amazon (September and October 2007) suggest that forest clearing may increase this year. All told, since 2000 Brazil has lost more than 60,000 square miles (150,000 square kilometers) of rainforest -- an area larger than the state of Georgia or the country of Bangladesh. Most of this destruction has been driven by clearing for cattle pasture and agriculture, often in association with infrastructure development and improvements. Higher commodity prices, especially for beef and soy, have further spurred forest conversion in the region. While drivers of Amazon deforestation are stronger than ever, mounting concerns over climate change and the effort to reign in greenhouse gas emissions may provide new economic incentives for landowners to preserve forest lands through a concept known as "avoided deforestation".


Climate change will impact U.S. economy
(10/16/2007) Climate change will have a significant economic impact on the United States, reports a new study published by researchers from the University of Maryland. The report, The U.S. Economic Impacts of Climate Change and the Costs of Inaction, aggregates and analyzes previous economic research in order to develop a better estimate of the costs of climate change.


World Bank offers $300M for forest conservation, emissions reductions
(10/15/2007) Tropical forest countries will be eligible for payments for preventing deforestation under a program unveiled last week by the World Bank.


Carbon for forests will help Aceh recover from war, tsunami
(9/18/2007) Carbon credits through forest conservation will play an important role in Aceh's recovery from decades of civil war and the devastating 2004 tsunami, which left more than 167,000 people dead and 500,000 homeless in the Indonesia province, said Aceh governor Irwandi Jusuf in meeting in San Francisco.


Do Costa Rica's payments for environmental services work?
(9/17/2007) While Costa Rica is now known as a world leader for conversation policies and ecotourism, the Central American country had some of the world's highest deforestation rates prior to establishing its reputation. Clearing for cattle pasture and agriculture destroyed much of the country's biodiverse rainforests in the 1960s and 1970s.


Australia puts $100M toward protecting forest in Borneo
(9/9/2007) Australian and Indonesian ministers signed a AU$100 million ($82M) deal to protect highly threatened forests on the island of Borneo, according to the Sydney Morning Herald. Funds will go towards conservation and rehabilitation of degraded forests and peatlands.


Education key to financial support for biodiversity
(9/6/2007) On the coast of south-western Spain, Coto Donana National Park posses a unique wealth of wildlife; its proximity to Africa has allowed for several African species to mix with a wide variety of European: Egyptian Mongooses and the Greater Flamingo live alongside wild boar and Spanish Red Deer. The coastal and wetland park provides a continual respite for hundreds of species of African and European birds. As well, the park is home to several endangered species including the Spanish Imperial Eagle, the Andalusian toothcarp, the Sabine (a variety of juniper pine), and the world's most endangered cat, the Iberian Lynx.


How private equity can profit from carbon offsets in Indonesia
(8/29/2007) The emerging carbon market for avoided deforestation presents unprecedented opportunities for private equity to make profitable investments that also help protect the environment. Indeed, for the first time, conservation may be associated with positive financial returns. Here's a brief look at how private equity and other investors can capitalize on this opportunity to earn attractive returns while fighting climate change, protecting ecosystem services, and safeguarding endangered species like orangutans.


Indonesia's peatlands may offer U.S. firms global warming offsets
(8/29/2007) The following is modified version of a letter I've used to pitch U.S. companies on the concept of carbon finance in Indonesia's peatlands. Discussions are slow and the critical December U.N. climate meeting is fast approaching, so I'm posting this as a tool to help you get American firms interested in avoided deforestation offsets. Please feel free to use, modify, and distribute this letter widely.


Could peatlands conservation be more profitable than palm oil?
(8/22/2007) This past June, World Bank published a report warning that climate change presents serious risks to Indonesia, including the possibility of losing 2,000 islands as sea levels rise. While this scenario is dire, proposed mechanisms for addressing climate change, notably carbon credits through avoided deforestation, offer a unique opportunity for Indonesia to strengthen its economy while demonstrating worldwide innovative political and environmental leadership. In a July 29th editorial we argued that in some cases, preserving ecosystems for carbon credits could be more valuable than conversion for oil palm plantations, providing higher tax revenue for the Indonesian treasury while at the same time offering attractive economic returns for investors.


Fines on bycatch could help make conservation groups, industry accountable
(7/18/2007) Assessing fines on illegal bycatch could help clean up the fishing industry, reports a new study published in the August issue of Frontiers in Ecology and the Environment.


Is peat swamp worth more than palm oil plantations?
(7/16/2007) Could peat swamp be worth more intact for their carbon value than palm oil plantations for their oil? Quick analysis suggests yes, though binding limits on emissions will be needed to trigger the largest ever flow of money from the industrialized world to developing countries. At stake: the bulk of the world's biodiversity.


Indonesia's peat swamps worth $39B/year
(7/11/2007) Indonesia's peat swamps are worth $39 billion in carbon credits per year, according to rough calculations by Bloomberg.


First U.S. test of ecological services payment underway
(6/27/2007) Farmers in Jamestown, R.I., are being paid by local residents to delay haying their fields until after birds have completed nesting in a unique test to establish investment markets for ecological services.


Can cattle ranchers and soy farmers save the Amazon?
(6/6/2007) John Cain Carter, a Texas rancher who moved to the heart of the Amazon 11 years ago and founded what is perhaps the most innovative organization working in the Amazon, Alianca da Terra, believes the only way to save the Amazon is through the market. Carter says that by giving producers incentives to reduce their impact on the forest, the market can succeed where conservation efforts have failed. What is most remarkable about Alianca's system is that it has the potential to be applied to any commodity anywhere in the world. That means palm oil in Borneo could be certified just as easily as sugar cane in Brazil or sheep in New Zealand. By addressing the supply chain, tracing agricultural products back to the specific fields where they were produced, the system offers perhaps the best market-based solution to combating deforestation. Combining these approaches with large-scale land conservation and scientific research offers what may be the best hope for saving the Amazon.


Globalization could save the Amazon rainforest
(6/3/2007) The Amazon basin is home to the world's largest rainforest, an ecosystem that supports perhaps 30 percent of the world's terrestrial species, stores vast amounts of carbon, and exerts considerable influence on global weather patterns and climate. Few would dispute that it is one of the planet's most important landscapes. Despite its scale, the Amazon is also one of the fastest changing ecosystems, largely as a result of human activities, including deforestation, forest fires, and, increasingly, climate change. Few people understand these impacts better than Dr. Daniel Nepstad, one of the world's foremost experts on the Amazon rainforest. Now head of the Woods Hole Research Center's Amazon program in Belem, Brazil, Nepstad has spent more than 23 years in the Amazon, studying subjects ranging from forest fires and forest management policy to sustainable development. Nepstad says the Amazon is presently at a point unlike any he's ever seen, one where there are unparalleled risks and opportunities. While he's hopeful about some of the trends, he knows the Amazon faces difficult and immediate challenges.


Ecosystems are capital assets argues report
(5/7/2007) Global ecosystems should be treated as capital assets argues a new report released today by the World Resources Institute (WRI). The new WRI report examines trends revealed in the 2005 Millennium Ecosystem Assessment (MA) by the U.N. and puts forth an agenda for business, governments, and civil society to reverse ecosystem degradation.


Cost of stabilizing climate 0.1% per year
(5/4/2007) The Intergovernmental Panel on Climate Change (IPCC) released its long awaiting installment on climate change mitigation, arguing that the costs of offsetting global warming will be much lower than some claim. The IPCC estimates that emissions can be reduced rapidly using existing technology at a cost of 3 percent of GDP, or 0.12 percent per year over the next 25 years, though new technologies could further reduce this cost. While the projections are encouraging, they may be conservative. Some analysts, including the well-respected Amory Lovins of the Rocky Mountain Institute, have calculated that emissions targets that would stabilize the climate could be achieved at no net cost and possibly even a profit. Even McKinsey & Company, a leading management consulting firm, agrees, putting the net cost of reducing emissions by 46 percent at zero.


Cleantech investment booms, but energy tech bubble looms
(4/30/2007) Investors are pouring money into clean technology, with spending on R&D rising to $48 billion in 2006, up 9% from 2005, reports a new study by Lux Research, an emerging technology research and advisory firm. However, the report warns that the energy technology sector is showing signs of a bubble, with initial public offering (IPO) values and venture capital deployments more than doubling last year.


Tradable biodiversity rights can help to conserve species richness
(3/2/2007) The decline in biodiversity compels us to look at the sustainable use of living resources in a different manner. To conserve biodiversity, the social and economic aspects of the use of biodiversity must be taken into account, in addition to the ecological aspects. From this perspective it then becomes clear, for example, that the portion of the world population that lives in poverty is incapable of contributing to the conservation of biodiversity. In their daily search for food, energy and shelter, they simply cannot pay attention to this aspect. Professor Steven De Bie made this point during his acceptance of the endowed chair in the Sustainable Use of Living Resources on 1 March at Wageningen University. To compensate for this decline in biodiversity in the poorer regions, De Bie proposes establishing tradable 'biodiversity rights'.


Human ecological footprint to grow 34% by 2015 finds study
(2/8/2007) Population size and affluence are driving environmental degradation according to a new study published in the current edition of the journal Frontiers in Ecology. The authors say other widely cited drivers of environmental stress -- urbanization, economic structure, age distribution -- actually have relatively little impact.


Global warming cap to cost U.S. 0.26% of GDP says Energy Department
(1/23/2007) A proposed cap-and-trade system to curb U.S. greenhouse-gas emissions will cost the U.S. economy 0.26 percent of annual GDP according to a new study by the Department of Energy's Energy Information Agency (EIA). The EIA says that the plan would lead to higher energy prices inlcuding a 5 percent rise in the price of gasoline, an 8 percent climb in the price of heating-oil an 11 percent increase in the price of natural gas and electricity.



Page 1 | Page 2 | Page 3

home | archives | news | XML / RSS feeds


XML / RSS / Syndication options

mongabay.com features more than 250 RSS feeds to meet your specific area of interest

All mongabay.com news
Only rainforest news
Only Brazil news
Only Biodiversity news
Only Climate Change news
Only Madagascar news

more XML feeds