177 177 FAO FORESTRY PAPER Forestry for a low-carbon future Forestry for a low-carbon future Forestry for a low-carbon future Integrating forests and wood products Integrating forests and wood products in climate change strategies in climate change strategie s Forests are critical to mitigation, having a dual role; they function globally as a net carbon sink but are also responsible for about 10 to 12 percent of global emissions. Forests and forest products offer both – developed and developing countries a wide range of Integrating forests and wood products in climate change strategies options for timely and cost-effective mitigation. Afforestation/reforestation offers the best option because of its short timescale and ease of implementation. Reducing deforestation, forest management and forest restoration also offer good mitigation potential, especially because of the possibility for immediate action. Yet forest contributions to mitigation also go beyond forest activities. Wood products and wood energy can replace fossil-intense products in other sectors, creating a virtuous cycle towards low-carbon economies. The mitigation potential and costs of the various options differ greatly by activity, region, system boundaries and time horizon. Policymakers must decide on the optimal mix of options, adapted to local circumstances, for meeting national climate change and development goals. This publication assesses the options and highlights the enabling conditions, opportunities and potential bottlenecks to be considered in making apt choices. Aimed at policymakers, investors and all those committed to transition to low-carbon economies, it will support countries in using forests and wood products effectively in their climate strategies. ISSN 0258-6150 ISBN 978-92-5-109312-2 ISSN 0258-6150 FAO FORESTRY FAO FAO 9 7 8 9 2 5 1 0 9 312 2 PAPER I5857E/1/07.16 177 Cover photos: © FAO/Joan Manuel Baliellas (wood products) © Kate Evans (natural forest) © FAO/Roberto Faidutti (forest plantation) FAO FORESTRY Forestry for a low-carbon PAPER future 177 Integrating forests and wood products in climate change strategies FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS Rome, 2016 The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO in preference to others of a similar nature that are not mentioned. The views expressed in this information product are those of the author(s) and do not necessarily r the views or policies of FAO. This product is the result of a free, open collaborative process, edited by FAO. ISBN 978-92-5-109312-2 © FAO, 2016 FAO encourages the use, reproduction and dissemination of material in this information product. Except where otherwise indicated, material may be copied, downloaded and printed for private study, research and teaching purposes, or for use in non-commercial products or services, provided that appropriate acknowledgement of FAO as the source and copyright holder is given and that FAO’s endorsement of users’ views, products or services is not implied in any way. All requests for translation and adaptation rights, and for resale and other commercial use rights should be made via www.fao.org/contact-us/licence-request or addressed to [email protected]. FAO information products are available on the FAO website (www.fao.org/publications) and can be purchased through [email protected]. iii Contents Foreword ix Acknowledgements x Acronyms and abbreviations xi Executive summary xiii Key messages xvii 1. Introduction 1 Options for mitigation in the forest sector: Encouraging a multiple-use perspective 3 About this publication 4 Key messages: overview 7 2. Mitigation in the forest sector 9 Forestry in the climate change framework 9 Mitigation potential in the forest sector 18 Finance options for forest-sector mitigation 26 Key messages: forest-sector mitigation 27 3. Expanding forest and tree cover 29 Mitigation potential of afforestation and reforestation and trees outside forests 29 Economic feasibility 31 Bottlenecks in harnessing potentials 34 Embracing opportunities 37 Key messages: expanding forest and tree cover 39 4. Reducing deforestation and preventing forest loss through REDD+ 41 Mitigation potential of reducing forest loss 41 Economic feasibility 42 Bottlenecks in harnessing potentials 47 Embracing opportunities 47 Key messages: REDD+ 49 5. Changing forest management practices 51 Improved harvesting 51 Rotation length and mitigation 52 Better management of pests and diseases 55 iv Improving fire management 57 Management of the soil carbon pool 61 Key messages: forest management 67 6. Improving and using wood energy 69 From traditional use to biorefineries 70 Potential of using wood energy for mitigation 72 Economic feasibility 76 Bottlenecks in harnessing potentials 80 Embracing opportunities 82 Key messages: wood energy 85 7. Promoting the use of wood for greener building and furnishing 87 Trends in wood use 88 Mitigation potential of wood use in building and furnishing 91 Bottlenecks in harnessing potentials 94 Embracing opportunities 96 Key messages: wood in green building and furnishing 101 8. How to make it happen 103 Deciding among mitigation options 103 Capitalizing on co-benefits for sustainable development 105 Sustainable wood budget: securing sustainable wood sources for the advancing bioeconomy 110 Financing forest mitigation 114 Key messages: making it happen 122 9. Conclusion 123 References 125 Contributors 147 Expert reviewers 151 v Tables 1 Key forest-sector mitigation options assessed in this publication 5 2 Economic potential for forest-based mitigation options in 2030, from global models 21 3 Economic potential for forest-based options in 2040, from regional bottom-up estimates 21 4 Country examples of A/R cost assessments 32 5 Abatement costs of some REDD+ activities in the Near East and North Africa 43 6 CO2 emissions from wood energy compared with total carbon emissions, 2010 70 7 Comparison of wood pellets with fossil fuels in India 77 8 Share of wood-based construction of one- and two-family houses in selected countries 89 9 Apparent lifetime for wood products in the French forest sector 104 10 Some key co-benefits of the mitigation options presented in this publication 106 11 Global market potentials for different bio-products from forest biomass 111 12 Forest carbon market snapshot, 2013 119 13 Transacted volume and value of offsets for forest-based mitigation options 119 14 Comparison of compliance and voluntary carbon markets in terms of forestry offsets, 2013 and 2014 120 15 Existing national and subnational jurisdictions with a direct carbon tax 121 Figures 1 Global carbon emissions budget by sector, 2010 2 2 Influence of the cap on incentive for mitigation through forest management 11 3 Accounted removals: ARD net removals plus ARD offsets from FM plus FM net removals up to the cap (% of total), 2008−2012 13 4 Status of A/R projects in the CDM: (A) trends in A/R project registration; (B) geographical distribution of registered A/R projects 14 5 Emission-reduction success of CDM A/R projects: projected CO2 mitigation potential against actual achievements from 24 projects that submitted monitoring reports 15 6 Example of a Forest Reference Level using only historical data 17 7 Mention of forestry in submitted INDCs, by region 19 vi 8 Economic potentials of forestry relative to other supply-side mitigation options in the agriculture, forestry and other land use (AFOLU) sector by region by 2030 20 9 Global technical potential of bioenergy, 2050 22 10 Global carbon stock in harvested wood products 24 11 Annual change in carbon stock in harvested wood products 24 12 Development of the global carbon pool in harvested wood products, 1990−2013 25 13 Annual global carbon stock changes in harvested wood products in use 25 14 Status of A/R projects registered in VCS: (A) trends in A/R project registration; (B) geographical distribution 35 15 Projected mitigation potential and achievements of 27 VCS A/R projects 36 16 Mitigation cost curve for the conversion of forest to permanent agriculture 44 17 Regional mitigation cost curves for reductions in land-use change 45 18 Emissions from crop expansion at different carbon values, by crop type 46 19 Total ecosystem carbon stock change for three scenarios 56 20 Decadal forest areas burnt in Canada, 1971−2014 59 21 Total forest fire management costs in Canada, 1970−2013 60 22 Global carbon stocks in vegetation and soil carbon pools to a depth of 1 m 61 23 Total carbon stock in forests by region, 2005 62 24 Carbon under four Eucalyptus species at two sites in Western Australia with Mediterranean climate having typical cool, wet winters and warm, dry summers 63 25 Effects of different forest management strategies on soil carbon stocks 64 26 Percentage of roundwood used as woodfuel, 2014 69 27 Consumption of fuelwood in comparison with wood pellets and charcoal, 2014 70 28 Net potential for annual emission reductions from the use of improved cookstoves 79 29 Top ten furniture producers, 2009 and 2014 91 30 Impact of maximized timber use