Carbon Dioxide Offset Investment in the Asia-Pacific Forestry Sector: Opportunities and Constraints












Table of Contents

by

Anthony DiNicola
Don Justin Jones
Gerald Gray

Edited by

Thomas Enters
Patrick B. Durst

RAP PUBLICATION: 1998/9
RWEDP Field Document No. 53

FAO Regional Office for Asia and the Pacific

Regional Wood Energy Development Programme in Asia

Food and Agriculture Organization of the United Nations
Bangkok, Thailand

The designations employed and the presentation of material in this publication do not imply the expression of any opinion on the part of the Food and Agriculture Organization of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

Photo Credits:

All photos were provided by Masakazu Kashio

ISBN: 974-86407-2-8

For copies write to:

Patrick B. Durst
Senior Forestry Officer
FAO Regional Office for Asia and the Pacific
39 Phra Atit Road
Bangkok 10200
Thailand
Phone: +66 (0) 2697-4000
Fax: +66 (0) 2697-4445

or

FAO Regional Wood Energy Development Programme in Asia
C/o FAO Regional Office for Asia and the Pacific
39 Phra Atit Road
Bangkok 10200
Thailand

Table of Contents

Foreword

Foreword

1. INTRODUCTION

1.1 The Asia-Pacific Region
1.2 The United Nations Framework Convention on Climate Change (FCCC)

1.2.1 The 1997 Kyoto Protocol
1.2.2. Policy Framework for Joint Implementation, Activities Implemented Jointly and the Clean Development Mechanism
1.2.3. The Future of the Protocol and Emission Reduction Credits (ERC)
1.2.4. The Kyoto Protocol and the Forestry Sector

1.3. Investment Patterns and Cost of CO2
1.4 Opportunities for Tangible Benefits in the Asia-Pacific Region

2. PERSPECTIVES AND RESPONSES

2.1 Developing Countries

2.1.1. The Asia-Pacific Region
2.1.2 Costa Rica and Central America

2.2 Developed Countries

2.2.1 The United States
2.2.2 The Netherlands
2.2.3 Australia
2.2.4 Canada
2.2.5 Japan

2.3 Private Sector Initiatives

2.3.1 Edison Electric Institute
2.3.2 The World Business Council for Sustainable Development (WBCSD)
2.3.3 Network For Expertise

3. OPPORTUNITIES AND CONSTRAINTS IN THE ASIA-PACIFIC FORESTRY SECTOR

3.1 Forestry Opportunities in the Asia-Pacific Region

3.1.1 Forest Conservation/Preservation
3.1.2 Forest Rehabilitation and Reforestation
3.1.3 Improved Forest Management/Reduced Impact Logging
3.1.4 Commercial Plantations and Community Forestry
3.1.5 Biomass Energy/Fuelwood
3.1.6 Urban Forestry

3.2 Forestry Examples from Other Regions

3.2.1 Rio Bravo (Belize)
3.2.2 Scolel Té (Mexico)

3.3 Forestry Examples in the Asia-Pacific Region

3.3.1 Indonesia: Reduced Impact Logging
3.3.2 Malaysia: Tropical Forest Rehabilitation
3.3.3 Malaysia: Reduced Impact Logging
3.3.4 Fiji: Community Forestry Pine Plantations and Sustainable Forest Management
3.3.5 Solomon Islands: Natural Forest Management
3.3.6 Papua New Guinea: Integrated Conservation and Development
3.3.7 Vanuatu

4. EMERGING PROSPECTS AND CHALLENGES FOR ERC PROJECTS IN THE ASIA-PACIFIC REGION

4.1 Increasing Receptivity toward ERC Projects in the Region
4.2 Forestry Sector Challenges

4.2.1 NGO Environmental Concerns
4.2.2 Bias Toward Energy Sector Proposals

5. RECOMMENDATIONS FOR FOREST SECTOR ERC INVESTMENT IN THE ASIA-PACIFIC REGION

5.1 Creating an International Framework for ERC
5.2 Building Policy and Institutional Frameworks in Developing Countries

5.2.1 Domestic Policies and Institutions
5.2.2 Domestic ERC Task Force and Program
5.2.3 Sectoral ERC Workshops
5.2.4 Building Awareness and Understanding of ERC Concepts
5.2.5 Estimating the Project Opportunities in the Region

6. FUTURE PROSPECTS FOR ERC PROJECTS IN THE REGION

7. REFERENCE LITERATURE