Abstract

Article 3 paragraph 3 and paragraph 4 of the Kyoto Protocol (KP) allow parties to use credits from land-based activities for offsetting their emission reduction/limitation target committed in the KP. Forest management (FM) is the dominant activity accounted by Annex I parties of the United Nation Framework Convention on Climate Change in the first commitment period of KP (2008–2012). Data reported for 2008 and 2009 indicate that over half of the emission reduction target of 24 Annex I parties that expect to use FM removals can be offset by FM credits in the first commitment period. Especially the majority of the emission reduction target of Slovenia, Sweden, Latvia, Finland, Japan, and Croatia may be achieved through FM credits. The total FM CAP as contained in decision 16/CMP.1 in the first commitment period was over-estimated significantly by 50% for all KP parties and 36% for parties that elected FM. Some parties such as Russia, Japan, Italy, Germany, and Switzerland that elected FM activity may benefit largely from the over-estimated CAP. Presuming a significant increase of the harvest rate, the FM reference level (FMRL) for 2013–2020 is only 1/5 of the historical mean value of FM removals even though most parties show an increasing or a steady trend of net removals from 1990 to 2009. As a result Annex I parties would be able to use FM credits in the future that are over 4 times of FM CAP in the first commitment period. This potential FM credit would account for 7.7% of total emissions by sources without land use, land-use change and forestry activities (LULUCF) in the base year or 1990, and more Annex I parties would share the “benefit” from the FMRL accounting approach. Zhang, X., 2011: Contribution of forest management credits in Kyoto Protocol compliance and future perspectives. Adv. Clim. Change Res., 2 (4), doi: 10.3724/SP.J.1248.2011.00171.

Abstract

This paper presents a methodology for a financial and sustainable valuation of business forest management that also allows to improve the incentives to enhance public policies for prevention and conservation, with the case study of the Catalan Aleppo pine forests.

 

Every summer and more recently due to the long drought, the situation of Catalan forests is news, with criticism for the results of public policies and the abandonment or bad exploitation of forests because there is a low proportion of this 41% of the Catalan area planned or certified for both environmental and economic sustainability, despite its economic and political importance.

 

A paradigmatic case could be the Aleppo pine forests, one of the most representative of Catalonia, both for being a Mediterranean variety and for its extension, since it spreads easily through the open areas and its pyrophilic characteristic makes the fire also facilitates its "colonization". It is a type of forest that tends to be unmanaged and unexploited, despite its representativeness (almost 30% of the Catalan private forest area), although there are studies to help the sustainable management of these forests (Beltrán et al., 2011) and detected its potential benefit (Melo et al., 2017; and ICEA, 2019). However, the economic conclusions of these studies and the private maximization of public subsidies have led to a preference for non-exploitation, with perverse effects on fire prevention policies and protection and conservation of mature forests.  However, with a broader view, especially from a financial analysis perspective (Ceballos and Perramon, 2021), it is possible to show both the economic viability of its business management, not only in contexts of very favorable prices, as well as the improvement of the effectiveness of public policies with stimuli is feasible if it is not based on the concept of immediate economic utility and other elements linked to sustainable finance are taken into account (Begemann, 2023). However, the results could be more ambitious in the recommendations of public instruments if there were a greater detail of the type of private forest owners in Catalonia as in other European cases (Ficko et al., 2019).

Abstract

This paper presents a methodology for a financial and sustainable valuation of business forest management that also allows to improve the incentives to enhance public policies for prevention and conservation, with the case study of the Catalan Aleppo pine forests.

Every summer and more recently due to the long drought, the situation of Catalan forests is news, with criticism for the results of public policies and the abandonment or bad exploitation of forests because there is a low proportion of this 41% of the Catalan area planned or certified for both environmental and economic sustainability, despite its economic and political importance.

A paradigmatic case could be the Aleppo pine forests, one of the most representative of Catalonia, both for being a Mediterranean variety and for its extension, since it spreads easily through the open areas and its pyrophilic characteristic makes the fire also facilitates its "colonization". It is a type of forest that tends to be unmanaged and unexploited, despite its representativeness (almost 30% of the Catalan private forest area), although there are studies to help the sustainable management of these forests (Beltrán et al., 2011) and detected its potential benefit (Melo et al., 2017; and ICEA, 2019). However, the economic conclusions of these studies and the private maximization of public subsidies have led to a preference for non-exploitation, with perverse effects on fire prevention policies and protection and conservation of mature forests. However, with a broader view, especially from a financial analysis perspective (Ceballos and Perramon, 2021), it is possible to show both the economic viability of its business management, not only in contexts of very favorable prices, as well as the improvement of the effectiveness of public policies with stimuli is feasible if it is not based on the concept of immediate economic utility and other elements linked to sustainable finance are taken into account (Begemann, 2023). However, the results could be more ambitious in the recommendations of public instruments if there were a greater detail of the type of private forest owners in Catalonia as in other European cases (Ficko et al., 2019).