Preparation of cloves in Madagascar. (Photo by R. Butler)
SUSTAINABLE USE OF LARGE-SCALE FOREST PRODUCTS
By Rhett Butler
| Last updated July 22, 2012
More than half of rainforest deforestation today is caused by commercial interests: logging, cattle ranching, industrial agriculture,
mining, power generation and energy production. With few exceptions, these activities degrade the long-term health of rainforest ecosystems and, in so doing, deplete natural assets.
Historically natural capital loss was rarely accounted. Today that is changing to a degree, but in many countries environmental degradation is still a secondary or tertiary factor in land use decisions. As such, tropical governments often subsidize short-term gains with little thought to the long-term consequences — natural resources are mined without consideration of future harvests.
In promoting raw resource extraction over stewardship of their unique natural assets, governments may be ignoring the best path for future economic growth. Wealth collected from extractive industries—essentially rent earned not from hard work or ingenuity, but from the particular qualities of the land—is not necessarily a solid foundation for an economy. Leveraging natural assets, like traditional knowledge, biodiversity and services afforded by ecosystems, can contribute to the long-term health of an economy, spurring the development of new technology and industries.
The Corporate Sector
Saving rainforests will hinge partly on finding ways for companies to remain profitable without devastating the environment. If we value forests, these industries will need to provide jobs that save the environment and not destroy it. We cannot reasonably expect local people to shun employment with these companies if they are the only form of work available to feed, house, and clothe their families.
There are many challenges facing industries that exploit forest resources, and difficult decisions and compromises
will have to be made. These challenges stem from the differing opinions of the value of forest products and the
services that forests provide. Developers must find a means to satisfy the growing demand for forest products and
resources, while protecting forests and the environmental services they provide.
- Why is it important to promote sustainable use of forest resources?
- Why are extractive industries like logging generally not the best for long-term economic growth?
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Accounting for natural capital on financial exchanges
(01/26/2015) Last month, Norway's stock exchange, the Oslo Børs, introduced a way for investors to use their money to promote sustainability. A new list by the stock exchange highlights green bonds, financial products issued by companies to raise capital for environmentally friendly projects. Notably, the list requires that issuing companies obtain and publicize outside opinions on the projects' environmental features.
Initiative to restore 50M acres of degraded Latin American ecosystems by 2020
(12/07/2014) A coalition of governments and organizations today pledged to restore 20 million hectares (50 million acres) of degraded forests and ecosystems across Latin America by 2020 under an initiative that aims to curb boost rural incomes, fight climate change, and increase agricultural production. The effort is backed by $365 million from five impact investors.
Central Kalimantan to set up palm oil monitoring system to in bid cut deforestation 80%
(10/05/2014) The Indonesian province of Central Kalimantan is moving forward on an oil palm plantation monitoring system it hopes will help meet a commitment to reduce deforestation 80 percent by 2020. The online monitoring system will include "information on the performance of plantation concessions such as productivity, the number of smallholder farmers, deforestation and other land cover change, and fire occurrence," according to Earth Innovation Institute which designed and is helping the provincial government implement the system.
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