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World Resources Institute Project POTICO
World Resources Institute World Resources Institute
World Resources Institute
World Resources Institute World Resources Institute
WRI’s approach ,[object Object],[object Object],[object Object],[object Object],[object Object],World Resources Institute
WRI has a diverse network of business partners
WRI’s corporate strategic relationships
Forests are important natural resources World Resources Institute
But they’ve been under pressure Source:  UNEP-WCMC; UMD-SDSU; WRI; Hansen et al. 2008 Croplands/ built-up areas Recent tropical deforestation Intact forests Managed/ fragmented forests Sparse managed/ fragmented forests 8,000 years ago Today World Resources Institute
Forests of Indonesia span ~225 million acres . . . World Resources Institute
. . . comprise 10% of world’s remaining tropical rainforests . . .
. . . are a biodiversity “hot spot” . . .  World Resources Institute
. . . and are home to indigenous peoples World Resources Institute
However, Indonesia is losing its forests . . .  World Resources Institute
. . . currently to plantations for palm oil. But what is palm oil? World Resources Institute
Oil palm plantations have grown dramatically in Indonesia 2007 Sources: “Indonesian Palm Oil Industry”, paper given by Derom Bangun, Executive Chairman, Indonesian Palm Oil Producers Association (GAPKI), at the National Institute of Oilseed Products Annual Convention, March 21-25, 2006, Phoenix, Arizona.  http://www.oilseed.org/pdf/am_2006_materials/Bangun_Text.pdf  .  “ Palm oil firms burning Indonesia forests-Greenpeace”, Reuters, July 12, 2007. http://www.alertnet.org/thenews/newsdesk/JAK23429.htm
You can see oil palm plantations expanding into forests . . .
. . . even from space 1991 2001 2004
This deforestation has significant consequences ,[object Object],[object Object],[object Object],[object Object],World Resources Institute
Palm oil expansion fuels illegal logging 5.7 15.0 Allowable cut Actual cut  Indonesia timber extraction (2004) Million cubic meters 9.3 Source:  Indonesian Ministry of Forestry World Resources Institute
Indonesia is a leading source of illegal logs and fiber Source:  Seneca Creek Associates, LLC and Wood Resources International, LLC.  “Illegal logging and Global Wood Markets: The Competitive Impacts on the U.S. Wood Products Industry”.  Prepared for American Forest & Paper Association.  November 2004. http://www.afandpa.org/Content/NavigationMenu/About_AFandPA/Public_Calendar_and_Industry_Events/Events_Calendar/AFPAIllegalLoggingReportFINAL2.pdf World Resources Institute
Indonesia, however, has ~35-50 million acres of degraded land  World Resources Institute
Why aren’t palm oil developers going there?  Years $/ha Palm oil Timber / fiber Net cash flow per year for “business as usual” oil palm plantation Source:  Adapted from oil palm production studies by Oil Palm Research Institute via the World Agroforestry Centre; Butler, R. “Is Peat Swamp Worth More than Palm Oil Plantations?” July 16, 2007 0 World Resources Institute
Project POTICO is addressing this challenge certified  P alm  O il certified  TI mber C arbon  O ffsets POTICO + + = World Resources Institute
How POTICO works ILLUSTRATIVE X World Resources Institute
. . . to tackle the underlying economics  Years $/ha Palm oil Illustrative net cash flow per year for a POTICO deal Source:  Adapted from oil palm production studies by Oil Palm Research Institute via the World Agroforestry Centre; Butler, R. “Is Peat Swamp Worth More than Palm Oil Plantations?” July 16, 2007 0 World Resources Institute
Years $/ha Certified palm oil Illustrative net cash flow per year for a POTICO deal Source:  Adapted from oil palm production studies by Oil Palm Research Institute via the World Agroforestry Centre; Butler, R. “Is Peat Swamp Worth More than Palm Oil Plantations?” July 16, 2007 0 Palm oil premium . . . to tackle the underlying economics  World Resources Institute
Years $/ha Certified palm oil Certified timber Illustrative net cash flow per year for a POTICO deal Source:  Adapted from oil palm production studies by Oil Palm Research Institute via the World Agroforestry Centre; Butler, R. “Is Peat Swamp Worth More than Palm Oil Plantations?” July 16, 2007 0 Palm oil premium . . . to tackle the underlying economics  World Resources Institute
Years $/ha Certified palm oil Certified timber Illustrative net cash flow per year for a POTICO deal Source:  Adapted from oil palm production studies by Oil Palm Research Institute via the World Agroforestry Centre; Butler, R. “Is Peat Swamp Worth More than Palm Oil Plantations?” July 16, 2007 0 Palm oil premium Carbon offsets . . . to tackle the underlying economics  World Resources Institute
Expected results ,[object Object],[object Object],[object Object],* 100,000 – 500,000 hectares World Resources Institute
Expected results:  Social & environmental improvements ,[object Object],[object Object],[object Object],[object Object],World Resources Institute ,[object Object],* Approximately 1 person per 5-10 hectares of oil palm plantation
Questions Craig Hanson 202-729-7624 [email_address] World Resources Institute

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Project Potico

  • 1. World Resources Institute Project POTICO
  • 2. World Resources Institute World Resources Institute
  • 4. World Resources Institute World Resources Institute
  • 5.
  • 6. WRI has a diverse network of business partners
  • 8. Forests are important natural resources World Resources Institute
  • 9. But they’ve been under pressure Source: UNEP-WCMC; UMD-SDSU; WRI; Hansen et al. 2008 Croplands/ built-up areas Recent tropical deforestation Intact forests Managed/ fragmented forests Sparse managed/ fragmented forests 8,000 years ago Today World Resources Institute
  • 10. Forests of Indonesia span ~225 million acres . . . World Resources Institute
  • 11. . . . comprise 10% of world’s remaining tropical rainforests . . .
  • 12. . . . are a biodiversity “hot spot” . . . World Resources Institute
  • 13. . . . and are home to indigenous peoples World Resources Institute
  • 14. However, Indonesia is losing its forests . . . World Resources Institute
  • 15. . . . currently to plantations for palm oil. But what is palm oil? World Resources Institute
  • 16. Oil palm plantations have grown dramatically in Indonesia 2007 Sources: “Indonesian Palm Oil Industry”, paper given by Derom Bangun, Executive Chairman, Indonesian Palm Oil Producers Association (GAPKI), at the National Institute of Oilseed Products Annual Convention, March 21-25, 2006, Phoenix, Arizona. http://www.oilseed.org/pdf/am_2006_materials/Bangun_Text.pdf . “ Palm oil firms burning Indonesia forests-Greenpeace”, Reuters, July 12, 2007. http://www.alertnet.org/thenews/newsdesk/JAK23429.htm
  • 17. You can see oil palm plantations expanding into forests . . .
  • 18. . . . even from space 1991 2001 2004
  • 19.
  • 20. Palm oil expansion fuels illegal logging 5.7 15.0 Allowable cut Actual cut Indonesia timber extraction (2004) Million cubic meters 9.3 Source: Indonesian Ministry of Forestry World Resources Institute
  • 21. Indonesia is a leading source of illegal logs and fiber Source: Seneca Creek Associates, LLC and Wood Resources International, LLC. “Illegal logging and Global Wood Markets: The Competitive Impacts on the U.S. Wood Products Industry”. Prepared for American Forest & Paper Association. November 2004. http://www.afandpa.org/Content/NavigationMenu/About_AFandPA/Public_Calendar_and_Industry_Events/Events_Calendar/AFPAIllegalLoggingReportFINAL2.pdf World Resources Institute
  • 22. Indonesia, however, has ~35-50 million acres of degraded land World Resources Institute
  • 23. Why aren’t palm oil developers going there? Years $/ha Palm oil Timber / fiber Net cash flow per year for “business as usual” oil palm plantation Source: Adapted from oil palm production studies by Oil Palm Research Institute via the World Agroforestry Centre; Butler, R. “Is Peat Swamp Worth More than Palm Oil Plantations?” July 16, 2007 0 World Resources Institute
  • 24. Project POTICO is addressing this challenge certified P alm O il certified TI mber C arbon O ffsets POTICO + + = World Resources Institute
  • 25. How POTICO works ILLUSTRATIVE X World Resources Institute
  • 26. . . . to tackle the underlying economics Years $/ha Palm oil Illustrative net cash flow per year for a POTICO deal Source: Adapted from oil palm production studies by Oil Palm Research Institute via the World Agroforestry Centre; Butler, R. “Is Peat Swamp Worth More than Palm Oil Plantations?” July 16, 2007 0 World Resources Institute
  • 27. Years $/ha Certified palm oil Illustrative net cash flow per year for a POTICO deal Source: Adapted from oil palm production studies by Oil Palm Research Institute via the World Agroforestry Centre; Butler, R. “Is Peat Swamp Worth More than Palm Oil Plantations?” July 16, 2007 0 Palm oil premium . . . to tackle the underlying economics World Resources Institute
  • 28. Years $/ha Certified palm oil Certified timber Illustrative net cash flow per year for a POTICO deal Source: Adapted from oil palm production studies by Oil Palm Research Institute via the World Agroforestry Centre; Butler, R. “Is Peat Swamp Worth More than Palm Oil Plantations?” July 16, 2007 0 Palm oil premium . . . to tackle the underlying economics World Resources Institute
  • 29. Years $/ha Certified palm oil Certified timber Illustrative net cash flow per year for a POTICO deal Source: Adapted from oil palm production studies by Oil Palm Research Institute via the World Agroforestry Centre; Butler, R. “Is Peat Swamp Worth More than Palm Oil Plantations?” July 16, 2007 0 Palm oil premium Carbon offsets . . . to tackle the underlying economics World Resources Institute
  • 30.
  • 31.
  • 32. Questions Craig Hanson 202-729-7624 [email_address] World Resources Institute