Tag Archives: Indonesia deforestation

How to Discover an Illegal Logger

Tropical forests nearly the size of India are set to be destroyed by 2050 if current trends continue causing species loss, displacement and a major increase in climate-changing greenhouse gas emissions.  Prior to the launch of the Global Land Analysis and Discovery (GLAD) alerts, researchers would have to manually track images of logging in specific areas.

The new process, developed by scientists at the University of Maryland and Google, uses an algorithm to analyze weekly updates of satellite images and sends automatic notifications about new logging activity.”This is a game changer,” said Matt Finer from the Amazon Conservation Association, an environmental group.

His organization tracks illegal logging in Peru, sending images of deforestation to policymakers, environmentalists and government officials to try and protect the Amazon rainforest.  In the past, he would rely on tips from local people about encroachment by loggers, then look at older satellite images to try and corroborate the claims.

“With this new data we can focus on getting actionable information to policy makers,” Finer told the Thomson Reuters Foundation.  “We have seen how powerful these images can be,” he said, citing a case where his group brought pictures of illegal gold miners cutting down trees to the Peruvian government, who then removed the miners.

Excerpt from  CHRIS ARSENAULT, New satellite program aims to cut down illegal logging in real time, Reuters, Mar. 2, 2016

Making a Fortune from Climate Change

Eleven years ago Dharsono Hartono, a former JPMorgan Chase & Co. banker, spotted what he thought was a new way to make a fortune: climate change.The plan was to snap up rainforest in Borneo, preserve it from logging and sell carbon credits to big polluting companies in the developed world. The earth’s temperature was rising, and this was a way to profit by confronting the problem.  Investors around the world have poured money into assets like once-frozen farmland in Canada and groundwater basins in California, betting that warming temperatures will raise their value.  Another bet has been on what some investors hope will be the most profitable outcome of a warming climate: government regulation of carbon emissions. Those who correctly anticipate future government responses to climate change are likely to reap profits.

Mr. Hartono went in big. His company’s rain forest, a humid and swampy expanse home to orangutans and clouded leopards, is twice the size of New York City and has one of the largest carbon stores of any such project in the world.  Mr. Hartono has sold just 20% of his credits to environmentally conscious corporations voluntarily buying credits, and has lost around $20 million, burning through $5 million to $10 million a year in recent years. Other investors in Indonesia and Latin America who made similar bets, including one backed by Australian bank Macquarie Group , failed to sell credits and abandoned their rain-forest projects…

Only after actor Harrison Ford visited the project to shoot a documentary on climate change, and raised the issue with Indonesia’s forestry minister, did final approval come for most of the concession in October 2013. For an initial payment of around $3 million to the Indonesian government, Mr. Hartono’s company gained the rights to the forestland for 60 years.  By then, however, some environmentalists were questioning private carbon-selling projects like Mr. Hartono’s. They argued that buying up and preserving rain forest to sell credits wouldn’t decrease net deforestation, since palm-oil barons would simply work around the few protected plots in the forest.  U.S. legislation that would have put a price on carbon failed during the Obama administration. The European Union’s carbon market doesn’t include tropical forests amid worry that low-cost credits generated there would make it affordable to pollute…

The Paris climate accords are expected to lead to an international carbon market after 2020, where countries that exceed emissions targets can purchase offset credits from countries that reduce emissions beyond their targets, potentially opening up new opportunities for Mr. Hartono.

Excerpts fom One Man’s Money Draining Bet on Climate Change, WSJ, Dec. 27, 2018

Forest Fires and Haze

In 2015 a dry spell caused by the El Niño weather pattern made Indonesia’s forest fires especially severe. Smoke settled over Singapore for months and even reached Cambodia, Vietnam and the Philippines. At least 2m hectares of forest were burned. Dozens of people were killed and hundreds of thousands sickened. For much of October 2015 greenhouse gases released by those fires exceeded the emissions of the entire American economy. The losses over five months of fires amounted to around 2% of the country’s GDP…[The event has labeled  the 2015 Southeast Asian haze]

Between 2001 and 2014, Indonesia lost 18.5m hectares of tree cover—an area more than twice the size of Ireland. In 2014 Indonesia overtook Brazil to become the world’s biggest deforester.

One of the reasons for those forest fires is economic. The country produces well over half the world’s palm oil, a commodity used in cooking and cosmetics, as a food additive and as a biofuel. It accounts for around 4.5% of Indonesia’s GDP, and demand is still rising. To meet it, Indonesian farmers set fires to clear forest and make way for new plantations. Often these forests grow on peatlands, which store carbon from decayed organic matter; in tropical regions these hold up to ten times as much carbon as surface soil. Draining peatlands releases all of that carbon. The peat also becomes a fuel, so it is not just felled trees that are burning but the ground itself.

But politics also plays a part. … The president declared a moratorium on peatland-development licences and called for peat forests to be restored, even as his agriculture minister pointed out that burned peatland can be used for corn and soyabean planting….

Civil-society groups have had some success. At least 188 Indonesian palm-oil companies have made some sort of sustainability pledge, including five large multinational firms that in 2014 signed the Indonesian Palm Oil Pledge (IPOP), which commits them to avoiding deforestation and planting oil palms on peatland. Together those five firms account for 80% of Indonesia’s palm-oil exports.All the same, deforestation continues. Perversely, it may even have increased temporarily, as companies cleared as much land as they could before the agreement took effect. Besides, opaque supply chains allow companies to buy palm oil from suppliers not bound by IPOP.

Forests: A world on fire, Economist Special Report on Indonesia, Feb. 27, 2016

Deforestation: mixed picture

In a new study of the Centre for Global Development (CGD), a Washington think-tank, Jonah Busch and Kalifi Ferretti-Gallon look at 117 cases of deforestation round the world. They find that two of the influences most closely correlated with the loss of forests are population and proximity to cities (the third is proximity to roads). Dramatic falls in fertility in Brazil, China and other well-forested nations therefore help explain why (after a lag) deforestation is slowing, too. Demography even helps account for what is happening in Congo, where fertility is high. Its people are flocking to cities, notably Kinshasa, with the result that the population in more distant, forested areas is thinning out.

Two of the countries that have done most to slow forest decline also have impressive agricultural records: Brazil, which became the biggest food exporter of all tropical countries over the past 20 years; and India, home of the green revolution. Brazil’s agricultural boom took place in the cerrado, the savannah-like region south and east of the Amazon (there is farming in the Amazon, too, but little by comparison). The green revolution took place mostly in India’s north-west and south, whereas its biggest forests are in the east and north.

But if population and agricultural prowess were the whole story, Indonesia, where fertility has fallen and farm output risen, would not be one of the worst failures. Figures published inNature Climate Change in June show that in the past decade it destroyed around 60,000 sq km of primary forests; its deforestation rate overtook Brazil’s in 2011. Policies matter, too—and the political will to implement them.

The central problem facing policymakers is that trees are usually worth more dead than alive; that is, land is worth more as pasture or cropland than as virgin forest. The benefits from forests, such as capturing carbon emissions, cleaning up water supplies and embodying biodiversity, are hard to price….The most successful policies therefore tend to be top-down bans, rather than incentives (though these have been tried, too). India’s national forest policy of 1988 explicitly rejects the idea of trying to make money from stewardship. “The derivation of direct economic benefit”, it says, “must be subordinated to this principal aim” (maintaining the health of the forest). In Brazil 44% of the Amazon is now national park, wildlife reserve or indigenous reserve, where farming is banned; much of that area was added recently. In Costa Rica half the forests are similarly protected. In India a third are managed jointly by local groups and state governments.

Top-down bans require more than just writing a law. Brazil’s regime developed over 15 years and involved tightening up its code on economic activity in forested areas, moratoriums on sales of food grown on cleared land, a new land registry, withholding government-subsidised credit from areas with the worst deforestation and strengthening law enforcement through the public prosecutor’s office. (The most draconian restriction, requiring 80% of any farm in the Amazon to be set aside as a wildlife reserve, is rarely enforced.)

Two developments make bans easier to impose. Cheaper, more detailed satellite imagery shows in real time where the violations are and who may be responsible. Brazil put the data from its system online, enabling green activists to help police the frontier between forest and farmland. Its moratoriums on soyabeans and beef from the Amazon, which require tracing where food is coming from, would not have worked without satellites…

The Forestry Ministry of Indonesia, [on the other hand] is rated the most corrupt among 20 government institutions by Indonesia’s Corruption Eradication Commission in 2012. Some within government are hostile to anti-deforestation schemes, which they see as “foreign”, says Ade Wahyudi of Katadata, an Indonesian firm of analysts. Perhaps the biggest problem is the lack of a single, unified map including all information on land tenure and forest licensing: efforts to create one have been slowed by unco-operative government ministries and difficulties created by overlapping land claims.

Excerpts from Tropical Forests: A Clearing in the Trees, Economist,  Aug. 23, 2014, at 56