Forest Finance Risk NETWORK

 

Forests cover approximately 31% of the land surface area (MEA, 2005). Yet, we are loosing forests at a rapid rate. The global rate of deforestation (and of forest loss from natural causes) between the 1990 and 2000 period is estimated to be around 16 million hectares per year, approximately the size of England annually (FAO,2010).


Not only are we deforesting at a rapid rate, but we are also rapidly changing the nature of our forests globally. Seven percent of the world’s forests are now plantations, many of which are composed of introduced species (FAO, 2010). The need to halt deforestation and the global loss of biodiversity is therefore urgent.


Yet, halving deforestation by 2030 calls for significant financing, approximately $17-33 billion annually (Eliasch, 2008). The scale of financing required is unlikely to be met from public sources alone. Private investment is needed.


An international agreement, such as REDD+, would not only drastically change the scale of forest carbon investments, but also the type of investors (Davies and Patenaude, 2011). Hence, a better understanding of risks associated with forest propositions worldwide is needed.


The Forest Finance Risk Network


This network attempts to address this need, by providing a platform for knowledge exchange between the needs for investments, and the expertise available within the NERC research community and beyond.


Read more:


Davies, S. and Patenaude G. (2011). Addressing the forest science versus investment nexus: can a more holistic understanding of risks bridge the gap? Carbon Management 2(6), 613-616

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