Daily Hot Topic
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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