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TABLE OF CONTENTS PREFACE …………………………………………………………………………………… vii ACKNOWLEDGEMENTS …………………………………………………………………. ix EDITORIAL …………………………………………………………………………………. xi THE ROLE OF FORESTS IN ADDRESSING GLOBAL PROBLEMS: WHAT ECONOMIC VALUATION METHODS WON’T TELL US ……………………………. 1 David Kaimowitz THE DYNAMIC RAINFOREST ECOSYSTEM ON GEOLOGICAL, QUATERNARY AND HUMAN TIME SCALES ………………………………………….. 7 Henry Hooghiemstra THE DYNAMIC FOREST LANDSCAPES OF WEST AFRICA. THEIR SHAPING IN RELATION TO NATURAL AND ANTHROPOGENIC PROCESSES ………………… 21 James Fairhead and Melissa Leach THE ROLE OF TROPICAL FORESTS AS MAJOR SOURCES OF BIOLOGICAL DIVERSITY …………………………………………………………………………………. 37 Brian M. Boom AMAZONIAN TROPICAL FORESTS: CARBON SOURCE OR SINK? ……………… 43 Carlos A. Nobre FOREST VALUATION AND WATER – THE NEED TO RECONCILE PUBLIC AND SCIENCE PERCEPTIONS ………………………………………………………………… 49 Ian R. Calder TROPICAL FORESTS AND POVERTY ALLEVIATION – HOW CAN BENEFITS BE CAPTURED? ……………………………………………………………………………….. 63 Roger A. Sedjo RAIN FORESTS AND THE POOR. EXAMPLES FROM SIERRA LEONE …………. 67 Paul Richards v THE ECONOMIC VALUE OF TROPICAL FORESTS ………………………………… 73 Camille Bann REPORT OF THE SEMINAR DISCUSSIONS …………………………………………... 77 Mirjam Ros CONSERVATION CONCESSIONS - CONCEPT DESCRIPTION ……………………. 83 Richard Rice SILVER BULLET OR FOOLS’ GOLD? A GLOBAL REVIEW OF MARKETS FOR FOREST ENVIRONMENTAL SERVICES AND THEIR IMPACTS FOR THE POOR ………………………………………………………………………………………… 89 Natasha Landell-Mills and Ina Porras TESTING A NEW FINANCIAL METHOD FOR SUSTAINABLE FOREST MANAGEMENT IN COLOMBIA ………………………………………………………… 93 Carmenza Robledo A. FISCAL POLICIES IN SUPPORT OF THE FORESTRY SECTOR IN AFRICA ……. 97 Adrian Whiteman VALUATION OF HYDROLOGICAL SERVICES PROVIDED BY FORESTS IN COSTA RICA ……………………………………………………………………………… 101 Virginia Reyes, Olman Segura& Pita Verweij INNOVATIVE FINANCING MECHANISMS FOR CONSERVATION AND SUSTAINABLE MANAGEMENT OF TROPICAL FORESTS - ISSUES AND PERSPECTIVES …………………………………………………………………………... 107 Pita Verweij POLICY RECOMMENDATIONS ………………………………………………………. 119 APPENDICES …………………………………………………………………………….... 125 Programme of the Seminar ……………………………………………………………….. 127 List of participants ………………………………………………………………………… 131 vi TABLE OF CONTENTS PREFACE …………………………………………………………………………………… vii ACKNOWLEDGEMENTS …………………………………………………………………. ix EDITORIAL …………………………………………………………………………………. xi THE ROLE OF FORESTS IN ADDRESSING GLOBAL PROBLEMS: WHAT ECONOMIC VALUATION METHODS WON’T TELL US ……………………………. 1 David Kaimowitz THE DYNAMIC RAINFOREST ECOSYSTEM ON GEOLOGICAL, QUATERNARY AND HUMAN TIME SCALES ………………………………………….. 7 Henry Hooghiemstra THE DYNAMIC FOREST LANDSCAPES OF WEST AFRICA. THEIR SHAPING IN RELATION TO NATURAL AND ANTHROPOGENIC PROCESSES ………………… 21 James Fairhead and Melissa Leach THE ROLE OF TROPICAL FORESTS AS MAJOR SOURCES OF BIOLOGICAL DIVERSITY …………………………………………………………………………………. 37 Brian M. Boom AMAZONIAN TROPICAL FORESTS: CARBON SOURCE OR SINK? ……………… 43 Carlos A. Nobre FOREST VALUATION AND WATER – THE NEED TO RECONCILE PUBLIC AND SCIENCE PERCEPTIONS ………………………………………………………………… 49 Ian R. Calder TROPICAL FORESTS AND POVERTY ALLEVIATION – HOW CAN BENEFITS BE CAPTURED? ……………………………………………………………………………….. 63 Roger A. Sedjo RAIN FORESTS AND THE POOR. EXAMPLES FROM SIERRA LEONE …………. 67 Paul Richards v THE ECONOMIC VALUE OF TROPICAL FORESTS ………………………………… 73 Camille Bann REPORT OF THE SEMINAR DISCUSSIONS …………………………………………... 77 Mirjam Ros CONSERVATION CONCESSIONS - CONCEPT DESCRIPTION ……………………. 83 Richard Rice SILVER BULLET OR FOOLS’ GOLD? A GLOBAL REVIEW OF MARKETS FOR FOREST ENVIRONMENTAL SERVICES AND THEIR IMPACTS FOR THE POOR ………………………………………………………………………………………… 89 Natasha Landell-Mills and Ina Porras TESTING A NEW FINANCIAL METHOD FOR SUSTAINABLE FOREST MANAGEMENT IN COLOMBIA ………………………………………………………… 93 Carmenza Robledo A. FISCAL POLICIES IN SUPPORT OF THE FORESTRY SECTOR IN AFRICA ……. 97 Adrian Whiteman VALUATION OF HYDROLOGICAL SERVICES PROVIDED BY FORESTS IN COSTA RICA ……………………………………………………………………………… 101 Virginia Reyes, Olman Segura& Pita Verweij INNOVATIVE FINANCING MECHANISMS FOR CONSERVATION AND SUSTAINABLE MANAGEMENT OF TROPICAL FORESTS - ISSUES AND PERSPECTIVES …………………………………………………………………………... 107 Pita Verweij POLICY RECOMMENDATIONS ………………………………………………………. 119 APPENDICES …………………………………………………………………………….... 125 Programme of the Seminar ……………………………………………………………….. 127 List of participants ………………………………………………………………………… 131 vi Understanding and Capturing the Multiple values of Tropical Forests PREFACE Tropical forests for many years have been subject of debate at all levels of society, ranging from environmental NGO’s, scientists and policy makers, to high level politicians. Global warming, depletion of natural resources, violation of indigenous people’s rights, biodiversity loss and soil degradation all are major threats affecting tropical forests. It is the policy of the government of the Netherlands to do everything in its power to achieve the conservation and sustainable management of all types of forests. There is general consensus that tropical forests, as well as all other forests, should be properly protected because of their great value, but the debate on what exactly is this value of tropical forests is still going on at full strength. Tropical forests sustain a wealth of biodiversity, provide a wide range of ecosystems, services and products, and support livelihoods for millions of people. If these biological, economic and social values are acknowledged, then why is the destruction and degradation of forests still continuing? To what extent have appropriate valuation and market mechanisms been developed and implemented? Could they help revert destructive practises? Tropenbos International organised a two-day seminar on the 20th and 21st of March, 2002, to discuss forest values, and to support the development and implementation of appropriate financing mechanisms for the conservation and sustainable use of tropical forests. During this seminar a bridge between policy, management and research was constructed through debate. Science stated facts, interpretation by the different societal players differed and concepts were challenged. Over 250 scientists, managers and policy makers from 41 countries participated in the seminar and came up with recommendations. These recommendations were presented at the sixth Meeting of the Conference of Parties (CoP 6) of the Convention on Biological Diversity (The Hague, The Netherlands, April 2002) and the World Summit on Sustainable Development (WSSD, Johannesburg, South Africa, August 2002). The seminar made it clear that new financing mechanisms are rapidly emerging and have potential role to play in forest conservation and management. Payments for carbon sequestration, in particular, appear to be a potentially economically attractive option. Also water funds, like taxes on drinking water and large industrial water users, represent promising financial mechanisms for the conservation of the hydrological function of forests. Another important outcome was that financing mechanisms for biodiversity conservation should generate revenues for local forest users and forest owners. Without their participation and measures for poverty reduction, financing mechanisms for forest conservation cannot be effective. This seminar was, in my view, a constructive element in the process of achieving the goal of the conservation and sustainable management of all types of forests. The proceedings of the seminar that you will find in this publication are a useful tool for us all in the development of policy to address the challenges of tropical rain forests. Giuseppe B. Raaphorst Director Nature Management Ministry of Agriculture, Nature Management and Fisheries vii Tropenbos International, Wageningen, the Netherlands viii Understanding and Capturing the Multiple values of Tropical Forests ACKNOWLEDGEMENTS The Tropenbos International (TBI) Seminar ‘Forest valuation and innovative financing mechanisms for conservation and sustainable management of tropical forests’ could only become a success with the support and dedication of many persons, to whom the organisers are very much indebted. We wish to express our gratitude to all involved in some way or another in the organisation, implementation and successful completion of the seminar. We trust that those not specifically mentioned will accept our thanks for their involvement in the seminar. The idea of organising the seminar started in March 2001 during a meeting of the Steering Committee of the European Tropical Forest Research Network (ETFRN) in Sweden. The director of Tropenbos International, Mr. Erik Lammerts van Bueren, expressed his interest to organise a seminar preceding the sixth meeting of the Conference of Parties of the Convention on Biological Diversity in The Hague. This seminar would be in close conjunction with the Meeting of the ETFRN Steering Committee and a meeting of the TBI General Board. The seminar would not have been possible without the generous contributions of the The Dutch Directorate General for Development Cooperation (DGIS) Dutch Ministry of Agriculture, Nature Management and Fisheries, The Netherlands Organisation for Scientific Research (NWO), The Forest Research Programme of the Department for International Development (DfID-FRP), The Food and Agricultural Organisation of the United Nations (FAO) and the European Tropical Forest Research Network (ETFRN). Ms. Dr. Pita Verweij was responsible for the coordination of the contents of the seminar (background document) editing