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Market-Based Forest Conservation 

GS-3 Mains : Environment 

Revision Notes

Study by International Union of Forest Research Organizations (IUFRO):

  • Market-based approaches have limited success in curbing deforestation or alleviating poverty.
  • Complex schemes prioritize short-term profits over long-term sustainability.
  • Green trade policies from wealthy nations may have unintended consequences.
  • Poverty and deforestation persist globally.

Market-based Instruments:

  • Carbon offsets: Businesses can invest in forest conservation projects to offset their carbon emissions.
  • Deforestation-free certification schemes: Promote products from sustainably managed forests.

Overall Concerns:

  • Focus on financial benefits may neglect long-term sustainability.
  • Green trade policies need to consider broader economic impacts.
  • Poverty reduction remains crucial for effective forest conservation.

Importance of Market-Based Forest Conservation

  • Cost-Effectiveness: Compared to traditional regulations, market approaches can achieve environmental goals at a lower cost by focusing on the most cost-efficient actions.
  • Economic Valuation: Assigns value to natural resources, enabling creation of markets where these values can be traded for conservation efforts.

Steps Taken in India:

  • Indian Forest & Wood Certification Scheme (MoEFCC):
    • Voluntary program promoting sustainable forest management and agroforestry.
    • Offers certifications for:
      • Forest Management
      • Trees Outside Forests
      • Chain of Custody

Need for Improvement:

  • Forest loss continues globally, highlighting limitations of current approaches.
  • Market-based solutions hold promise for tackling deforestation, climate change, and poverty, but require further development and implementation.

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