0882-B2

TRADING ENVIRONMENTAL BENEFITS IN DEVELOPING COUNTRIES.

HN Khajuria and Sanjeev Chauhan 1


ABSTRACT

Human activities have increased GHG and raised global temperature 0.5 degrees Celsius over the past 100 years, which may increase by 1-5 degrees during the next 100 years. This may result into catastrophic changes in climate with added evaporation and precipitation, and vegetation movement towards poles by 200 to 300 km. In biodiversity, of the 270,000 known species of higher plants, 34,000 are endangered. In the tropics, ecosystem destruction is so severe that some 60,000 species could be lost within next 25 years. About 5,200 species of animals are threatened with extinction. Today two of every three species are estimated to be on decline. About 1964 million hectare os land is faced with degradation, with 40 per cent of this in Asia alone. 56 per cent of soil degradation is on account of soil erosion, which is as severe as 80 tonnes per hectare in certain areas. Rhio Convention of December 1992 and the World Summit on Sustainable Development (WSSD) held in Johannesberg in Aug-Sept 2002, emphasise to focus on five key areas: Water, Energy, Health, Agriculture and Biodiversity to have the livable future. Action on war footing, therefore is required from all quarters including government non-government organizations, individuals or cooperatives. Since the benefits of environmental improvements are shared by all across the world, the contributers therefore deserve to be suitable compensated. The concept of Carbon Emission Credits to trade carbon sequestration has already gained some recognition. Imrovement in soil fertility, reduction in floods, water charging of the underground acquifers, protection from dust and other storms, value addition of touristic spots etc are some other benefits which accrue from various environmental improvement activities including afforestation, water-shed management etc which need to be identified and dually accounted for trading. The paper discusses the details there of.


Introduction:

Environmental security has become a serious concern across the globe. The recent meteorological records have shown significant increase in the environmental temperature referred to as `Global Warming'. A drastic effect on splitting of huge glacier in the Antatica has already been registered which has thrown a challenge to save the earth, lest the very survival of the mankind will be jeopardized. The other significant environmental degradations include: loss in biodiversity, degeneration in soil fertility, depletion/misbalancing in water as resource, soil erosion, desertification, salinization, land degradation following huge mining and coal burning for thermal power generation etc.

The developing countries, which primarily include Indian sub-continent and many countries in African and South American Continents, the problems of environmental degradation on ground are quite serious. The reasons being obvious. The huge population pressure unsatisfactory economic resources to take up remedial measures, lack of education, political instability are among the main factors responsible for the foresaid degradation.

Following international understanding on issues concerning global environmental security and eventual development of the concept of trading as envisaged under Kyoto Protocol, the initiative has already been exhibited in this direction in many countries. Historically, developed countries have been responsible for most Green House Gas (GHG) emissions and therefore bear much of the responsibility for the problems associated with climate change, nevertheless, Asia Pacific region is projected as one of the large contributors of GHG (WRI, 1994). The US Acid Rain Project, the US Emission Credit Trading Programme for criteria pollutants, the US Lead phase down and the Hunter River Salinity Trading Scheme of Australia, trading programmes for emitters of greenhouse gases in UK, Dutch Forests Absorbing CO2 Emissions (Stuart and Sekhran, 1966), Costa Rica Office for Joint Implementation to facilitate private companies in GHG mitigation (Tattenbach, 1996;Van Der Gaast, 1996) Denmark, Greenhouse Gas Emissions Trading Market in Chicago and National Carbon Accounting System in Australia etc.

Any activity that results in the improvement of the environment in any of its expressed form or perceived effect should be assigned some economic value, which has been missing till date. As a generality, only the direct benefits accruing in the form of materials and not in the form of services were assigned values and eventually these physical commodities were marketed. Afforestation programme for example, has been valued only with respect to the timber return. The resulting environmental amelioration was never assigned any value. Eventually these programmes could not be made more profitable or sustainable. Of the various environmental services, which have not been traded so far, especially in the developing countries include:

All these benefits however are resultant benefits. Nevertheless, they have potential to be marketed, both on international level as well as at national level depending upon the relevance of each one of them. Some of these like carbon dioxide have already been identified at global level, the others too may find their place in due course of time. Briefly, these factors are discussed keeping in view India as a reference and a representative country, as the discussion may hold true for other developing countries also.

Carbon sequestration:

Carbon dioxide is probably the one single most important component The Co2 and other green house gases (GHGs) have begun to affect the world's climate. Co2 is the largest single green house gas currently trapping about half of the total heat contributing to global warming. Combustion of fossil fuel is one of the main contributors of increase in carbon dioxide concentration in the earth's atmosphere. During the United Nations convention in Climate change held at Kyoto during 1997, a general alarm was sounded to control the emission of these greenhouse gases on one hand and to sequester them in plant and soil system so that the levels of these gases are reduced or at least buffered. It was also agreed, that as the developed countries have a major share in the emission of these gases, which are trapping the heat and then affecting the ozone layer also, these countries ought to adopt vigorously the reduction of the emissions of these greenhouse gases in the atmosphere in a phased manner. Simultaneously, the developing countries will strengthen their afforestation programme in addition to the steps to be taken to curb the emission of these gases. The international funding agencies and the Developed Countries will help the Developing countries to achieve the desired results in this direction. Commercial forestry plantations if covered under ERC financing might become a joint venture claiming a portion of downstream revenue as well as GHG benefits (FAO, 1992; Jones, 1996).

Trees have a great role to play in the socioeconomic setup of our society. They provide various goods to meet the material needs of the nation and services to take care of the ecological balance. However, owing to enhanced perception of the continual loss and degradation of natural forests, their consequent social, economic and ecological effects have necessitated their protection and conservation.

Keeping in view the present scenario of the forest cover, the status of needs of increasing population and for healthy environment to maintain ecological balance seems to be very bleak for the future generations. The demand of forest products sharply rises with economic growth. It is therefore time that active steps are taken to set the ecological balance right by large-scale plantation, if we wish to survive and enjoy the fruits of the civilization created by us. Presently with the great efforts of environmentalists and detrimental effect of the increasing population on the human health, has created an awareness among the masses about the utmost importance of planting trees. In addition, fast growing multipurpose trees compatible with the agricultural crops need to be introduced and the social inhibitions of people about tree growing should be eradicated through motivations, education and persuasion.

The role of forests (natural and plantations) in mitigating the climatic changes was felt during seventies but their potential was realized fully during late nineties and the collaboration at international level started with the concept that air pollution do not need any passport to cross over the border and ever one is affected with and every one should join hand for remedial measures. But in Buenos Aires (Argentina) Conference during 1998, the industrialized countries also pressed India and China to take the similar steps to reduce the emission level of these gases. India being a developing country, cannot afford to reduce its energy consumption therefore the option left is to mitigate the accumulation of Co2 in atmosphere is the enhanced cycling of Carbon through massive reforestation/afforestation programme. The fuel demand is increasing, bio-energy option through short rotation forestry will also open the avenues for employment in the rural areas and improve the socio-economic condition of the people. The vegetation beside sequestering the Co2, have a positive effect on the rainfall pattern, water recharging potential, soil conservation and thereby avoid nutrient loss.

There are two major areas, where tree cover can be increased/improved in the country. They are:

i. Afforestation of the degraded classified forest lands and other areas.

The country has 65 million hectares as classified forest area, which is being managed/mismanaged by the Ministry of Environment and Forests. Eventually, only 40 per cent of this land is under so-called optimum stocking level. Owing to serious consequences in future, the Hon'ble Supreme Court of India ordered a blanket ban on further logging of forest trees by the department. So this huge area is lying waste. This needs to be managed and afforested. The Govt should lease out these lands to cooperatives or to the approved plantation companies for a specific period.

ii. Agroforestry/farm forestry.

This is a potential viable option to add to the trees on the farmlands, alone or in association with crops. The farmers owing to the added economic returns have almost accepted this new land management concept. This helps in making the agriculture sustainable too. The annual rate of growth of the forest trees on farmlands or under various agroforestry systems is comparatively higher than that under forests due to better management practices. This accelerates the wood production per unit area in a unit time. The carbon sequestration potential of afforestation/reforestation is specific to the species, rate & management involved, and it is, therefore, variable. The carbon sequestration potential for agroforestry practices is even more variable, depending on the planting density and production objective of the system. It has been estimated that globally approximately 38 Gt of carbon could be sequestered over next 50 years i.e., 30.6 Gt by afforestation/reforestation and 7Gt through the increased adoption of agroforestry practices. The prominent role of forestry and agroforestry systems in carbon sequestration has increased global interest in these land use options to stabilize green house gases emission. Agroforestry system especially agri-silvicultural system can be carbon sinks and store carbon, while other systems (ruminant based) are purely green house gases emission systems. If the entire area of feasible land is used for forestry, the mean estimate of carbon sequestration by natural forests along with newly afforested plantation will be around 153 TG (teragram) carbon per year by 2030.

The extent and timing of Carbon sequestration is dependent on the individual growth characteristics of different woody and herbarious crops and management practices employed.

Identification of Carbon sequestration potential of Agroforestry/Forestry systems that are both ecologically viable and preferred by local farmers.

Agroforestry systems sustainably managed have substantial economic and carbon sequestration potential. The principal barrier to Agroforestry management appears to be socio-political and economic. Because forest management requires long term investment, good planning, selection of approximate species, management technique, technical guidance, legal constraints marketing structure need to be taken care-off. System assessment needs changes in four main carbon pools (above ground biomass, below ground biomass, soils and standing litter crop). Carbon monitoring requires specialized equipments and trained personnel's.

The procedure

Winrock International has conducted lot of studies during nineties on carbon sequestration in Australia, USA, Brazil, Guatemala, Philippines, New Zealand, etc. All the fast growing species proportionately conserve carbon in the system, and in India, Poplar, Eucalypts, Leucaena, Acacia, Melia, Dalbergia, Anthocephalus, bamboo, neem, paulonia, etc. can be incorporated in the agroforestry system.

The potential of farm forestry species to sequester `C' and remove Co2 from atmosphere.

Eucalyptus

Green weight (above ground): 100Kg
Dry weight (above ground): 60 Kg (wood density 600kg/m3)

Assumption: Assuming dry weight as polysaccharides (cellulose, hemicelluloses and lignin) consisting of CHO as elements. The above and belowground biomass are distributed in the ration of 60:40. The percentage distribution of dry weight is as under

Sr No

Particulars

Aboveground (Underbark timber)

Belowground (Roots)

Total

1.

Green weight (Kg)

100

66

166

2.

Dry weight (Kg)

60

40

100

3.

`C' sequestered as element (Kg)

26.6

17.7

44.3

4.

Co2 taken from atmosphere (Kg)

97.4

64.8

162.2

This shows that just a 100 kg of timber wood produced by the tree of eucalyptus will remove over 160 kgs of carbon dioxide from the atmosphere and eventually sequester over 44 kgs of actual carbon in the vegetative system.

Poplar

Green weight: 100Kg.
Dry weight: 40 Kg (wood density 400kg/m3)

Assumption: Assuming dry weight as polysaccharides (cellulose, hemicelluloses and lignin) consisting of CHO as elements. The above and below ground biomass are distributed in the ration of 60:40. The percentage distribution of dry weight is as under

Sr No

Particulars

Aboveground (Underbark timber)

Belowground (Roots)

Total

1.

Green weight (Kg)

100

66

166

2.

Dry weight (Kg)

40

26.7

67.7

3.

`C' sequestered as element (Kg)

17.3

11.8

29.1

4.

Co2 taken from atmosphere (Kg)

64.0

43.7

107.7

In poplars, owing to lower specific gravity, the figures are comparatively lower than those for Eucalyptus for the same given fresh weight. Nevertheless, poplars alone with 5 million plants in agroforestry as of today with average fresh weight of 200 kgs per plant has sequestered 3,000 tonnes of `C' and removed 107,000 tonnes of `Co2' from the atmosphere in Punjab only, with one fifth of these figures on an annual basis. Similar situation is expected in other parts of the country, where agroforestry is being taken up. It is here that the growers need to be paid for those sharing this benefit within or across the country.

Another significant effect of tree cultivation is fixing of `C' is through improvement in soil organic matter. In sub-tropical and tropical India, the soil carbon content is required to be improved on annual basis owing to depletion of the same due to high temperature which goes as high as 48 degree C in Summer. As per the estimate, 0.1 per cent improvement in the soil carbon content per h, fixes over two tonnes of carbon or removes over 5 tonnes of carbon dioxide. This contribution too should be paid for.

Organic farming:

It is another area being adopted by the farmers. No doubt the produce is sold at premium and the consumers pay for that. Nevertheless, there is scope to provide incentives to the growers as this brings environmental improvement by way of reducing the use of chemicals, especially the pesticides, the consumption of which is over 50,000 metric tonnes in the country.

Crop residue management:

The world summit on Sustainable Development, which was held at Johannesburg, South Africa in from Aug 26 to Sep 4, 2002 took stock of various aspects of environment. The burning of crop residue, which is about 15 million tonnes alone in Punjab only needs alternate management. Incentives, therefore are required for those opting for its conversion to organic manure or its use for fibre manufacture.

Soil conservation and rehabilitation of degraded lands:

Afforestation programmes in particular couple with other activities, which reduce the loss of top productive soil through erosion, too brings direct and indirect benefits, which can be assigned values for trading. As per the estimate, 188, 747 and 1964 million hectare of soil is degraded in India, Asia and in the world respectively. Water and wind erosion constitutes about 50 per cent of this damage in India. In certain areas, up to 80 tonnes of soil per hectare is lost on account of erosion (Tripathi and Singh, 1993). Further, the ash resulting from thermal power generation in India is expected to reach 170 million tonnes per year by 2012, which at present is about 80 million tonnes. This will require 40,000 h of land for the disposal. Proper incentives therefore are required to be worked out to encourage the use of the coal residue and to rehabilitate the dumping sites.

Improvement in biodiversity:

Biodiversity conservation has to be made a peoples' movement. This is going to be the key to future agriculture and maintenance of environmental balance. Food and ecological security for sustainability of life primarily depends upon biodiversity. The World Conservation Union warns that of 270,000 known species of higher plants; 34,000 species are endangered. As many as 5,200 species of animals are threatened with extinction. (Tuxill, 1998). In India alone, over 15,000 to 18,000 species of flowering plants with 800 of ethanobotanical interest are found; one third are native borne. Of these, 160 represent the domesticated crops. Any effort, therefore taken by any organization/individuals requires to be compensated.

Similarly, the other aspects relating to environment, which are directly or indirectly improved by any activity undertaken at any level, warrants compensation, and should be deemed tradable. These aspects include, improvement in the Soil reaction, checking desertification, reduction in dust/noise pollution, enhancement in recreational values, buffering/ moderation in the weather and reduction in drought incidence.

References:

1. FAO 1992. Mixed and pure forest plantations in the tropics and sub-tropics. FAO forestry paper 103. Food and Agriculture Organization of United Nations, Rome.

2. Jones DJ 1996. Criteria for AIJ Project Design in Forestry: The Private Sector Perspective. Paper presented at the 1996 USIJI AIJ Workshop, 25-27 June. Jakarta.

1. Stuart M and N Sekhran 1996. Developing externally financed greenhouse gas mitigation projects in Papua New Guinea's forestry sector: A review of concepts, opportunities and links to biodiversity conservation. PNG biodiversity conservation and resource management program/UNDP. Port Moresby.

2. Tattenbach F 1996. Certifiable, Tradable Offsets in Costa Rica. Joint Implementation Quarterly 2(2).

2 Tripathi RP and HP Singh 1993. SOIL EROSION AND CONSERVATION. Wiley Eastern Limited, New Delhi pp 305.

7. Tuxill, J. 1998. Losing Strands in the Web of Life: Vertebrate Declines and the Conservation of Biodiversity. Worldwatch Paper No. 141, Worldwatch Institute, Washington DC, USA.

3. WRI 1994. World resources 1994-95. A report by the World Resources Institute in collaboration with UNEP and UNDP. Oxford University Press, New York and Oxford.

4. Van Der Gaast W 1996. JI/AIJ Initiatives during the Pilot Phase. The Netherlands: Joint Implementation Network.


1 Department of Forestry and Natural Resources,
Punjab Agricultural University, Ludhiana - 141 004 (INDIA)