More and more, developing countries are asking to be compensated to preserve their remaining forests. Indonesia follows on the heels of a similar recent proposal from Brazil – if the developed world believes their forests are valuable, then it’s time for us to pay for them.
Indonesia is asking for US$5-$20 per hectare – the first country to specify a cost that rich nations should pay to protect rainforests and reduce carbon emissions in developing nations. Environment Minister Rachmat Witoelar’s proposal is part of a lead-up to December’s UN-led global climate summit in Bali, where delegates from participating countries will hear a report on Reduced Emissions from Deforestation (RED) – a new proposal to make emission cuts from forest areas eligible for global carbon trading.
This international initiative, which is gaining wide support, could trigger a tremendous flow of money into tropical conservation, paying countries like Indonesia and Brazil to protect forests that would otherwise be cleared for agriculture or population spread.
The first phase of the Kyoto Protocal, which concludes in 2012, focused on reducing emissions from industry and capturing greenhouse gasses, but did not address emissions from forestry or protecting existing forests, which could reduce global emissions by 20%.
Indonesia contains 60% of the world’s threatened tropical peatlands, which release massive amounts of carbon dioxide when burned or drained to plant crops. When peat emissions are included, Indonesia is one of the world’s top three carbon emitters, according to a report co-sponsored by the World Bank.
Brazil encompasses the largest portion of the Amazon rainforest, an ecosystem that stores vast amounts of carbon and influences global weather patterns and climate. Since 2004, deforestation rates in Brazil have dropped by more than half due to government intervention, creating more than 20 million hectares of protected areas in threatened regions of the Amazon and costing the nation millions in direct payments and lost opportunity costs.
Experts contend that such protections are critical in reducing billions of tons of carbon from being transferred to the atmosphere through deforestation.
However, some critics are skeptical that funds will be used effectively.
The price proposed by Indonesia is for a payment from rich countries like the United States and those in the European Union, separate from any carbon-trading scheme. The price tag could draw as much as US$1.8 billion for preserving the a total forest area of 91 million hectares (225 million acres). Witoelar stated in an interview that the amount equals the cost needed for preservation efforts and alternative employment for the local communities.
He also said Indonesia will negotiate a fixed price for other forms of biodiversity, including coral reefs.
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