Deforestation:Deforestation:

Why it happens and what to do Why it happens and what to do about itabout it

John Hudson, DFIDJohn Hudson, DFID

UNFCC Workshop on Reducing Emissions from Deforestation in Developing CountriesUNFCC Workshop on Reducing Emissions from Deforestation in Developing CountriesRome, 30 August to 1 September 2006Rome, 30 August to 1 September 2006

The presentation…The presentation…The presentation…The presentation…

Deforestation is not new It is complicated – many causes and

interrelationships Some specific examples What to do?

It’s not newIt’s not new

Changes in nature and extent of forests are not new Forests have ebbed and flowed during recorded and

geological history It is the speed of change in some countries that is

new As natural forests decline, managed forests,

plantations and trees on farms replace them (see next slide)

Changes in quality and quantity of forests over time

Area

Forests

Planted

Old forests Managed Forests

0 1850 2000 Time Source: Persson, R. 2003 Assistance to Forestry: Experiences & Potential for Improvement ISBN 979-3361-15-8

Many causes…Many causes…

Direct causes – e.g. shifting agriculture, commercial agriculture, plantations, infrastructure

Underlying causes – e.g. poverty; population pressure; market and policy distortions; insecure/unclear tenure, failures of governance

Predisposing factors – biophysical characteristics, social upheavals

Some crude generalisations

More people, less forest, but… Higher per capita income, greater deforestation,

but… Higher farm prices (trade liberalisation, subsidies,

devaluations) increase deforestation Higher off-farm employment and higher wages

decrease deforestation

More generalisations…More generalisations…

Greater access (more roads) increases deforestation

Mixed evidence about logging – but excess processing capacity drives over-harvesting

Deforestation is greater in open access regimes – property rights matter

Some specific examples: IndonesiaSome specific examples: Indonesia

24% of forest cover (28 m ha) lost 1990-2005 Direct causes: logging (much illegal); conversion to oil

palm, timber and coffee (planned & spontaneous); small scale agriculture; fire associated with land conversion

Underlying causes: population pressure and transmigration policy; contested land tenure; corruption; demand for timber and excess processing capacity; failures of capital markets (no due diligence); competition for power following decentralisation.

Some specific examples: BrazilSome specific examples: Brazil

26,000 km2 of Brazilian Amazon lost last yearDirect causes: conversion to agriculture (pasture, soya); colonisation and subsistence agriculture;Underlying causes: demand for commodities (beef, soya); unclear and contested property rights; spontaneous colonisation and planned settlements

Some specific examples: Africa

Accounts for about half of global deforestation Small-scale agriculture accounts for about 60% Dry forests being converted at a rate 50% higher

than rainforests Logging is an important factor in parts of West and

Central Africa Demand for wood rarely drives deforestation on

other than a local scale

What to do?

Multi-sectoral approach Clearer, more secure property rights Better governance and regulation Payments for environmental services

Multi-sectoral approach

External factors drive deforestation – narrow forest sector solutions won’t work

Need a multi-sectoral approach – lots of policies and actions that deal with the complexity

But these haven’t worked well in the past Sectoral entities don’t cooperate Economic policy makers rarely think about forests Politically unattractive – many small steps

Property rights

Unclear and contested property rights are a major underlying cause of deforestation in most places

Reforms challenge established power relations, are politically sensitive and usually slow to fix

But there have been enormous changes in some parts of the world in the last 15 years or so

Better governance and regulation

Forests often associated with deep seated systems of political patronage, corruption, inconsistent legal frameworks, weak law enforcement and poverty

Must be resolved by wider governance reforms as well as specific actions related to forests

Such actions more likely to succeed if reinforced by markets that discriminate in favour of products from legal and well managed sources

Payments for environmental services

Experience in market / compensation based approaches is growing – but still very limited in countries where deforestation is greatest

Lack of property rights and high transaction costs pose problems

Carbon is biggest potential market But how would payments to countries affect the

behaviour of individual farmers and companies?