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May 13th, 2008 New InitiativesUpcoming and Recent ConveningsNew PublicationsGeneral Announcements

NEW! Pre-Registration Limited for Global Katoomba Meeting
June 9-10, 2008

The world's leading forum on ecosystem markets kicks off on June 9 at the Smithsonian Institution in Washington, DC, and participation is limited. If you haven't yet registered for the twelfth Global Katoomba Meeting, follow the link below.

Click here to read more!


Dear Friends,

As spring arrives here in Washington, we wanted to update you on new developments here at Forest Trends and the explosion of activity and interests in environmental markets at the global, national and local levels. The formation of a working group on Reduced Emissions from Deforestation and Degradation (REDD) at the UN Framework Convention on Climate Change in Bali this winter is the most recent wave of significant expansion of carbon markets and the role of forests. And just as the last couple of years witnessed the dramatic growth of these carbon markets, we believe the next set of environmental markets 'ready to bloom' are water markets and, in particular, water quality trading markets designed to address major nutrient pollution problems around the globe. This year, we will focus a spotlight on these emerging water market opportunities through our own Ecosystem Marketplace, the premier information service on environmental markets (www.ecosystemmarketplace.com). We are also engaged in designing an innovative voluntary water quality trading instrument to bring the power of market approaches to the challenge of cleaning up the Chesapeake Bay. This June 9-10, we will host the 12th Global Katoomba meeting here in Washington, DC that will provide in-depth analysis on the rapidly growing carbon markets, these emerging water markets, and innovations around biodiversity conservation.

I look forward to sharing more with you as these new initiatives develop.

Best wishes,


Michael Jenkins, President



New Initiatives


Katoomba Ecosystem Services Incubator

The Tropical America Katoomba Group finalized the design of a new Ecosystem Services Incubator in the fall of 2007. This initiative focuses on facilitating technical, financial and market assistance to projects that can secure a high social and environmental rate of return on investment. Based on funding from donors interested in enabling projects to attract investors for their PES offerings, in the first year, the Katoomba Incubator will test drive the process of providing technical and business support to help a few selected project get closer to market, developing tools and knowledge and sharing along the way. As this instrument proves its ability to create additional viable models of PES transactions, the project portfolio will be broadened to a larger set of project candidates. More information is available at http://www.katoombagroup.org/regions/tropicalAmerica/
initiatives.php

A Voluntary Nutrient Neutral Fund for the Chesapeake

To help catalyze innovative approaches to bring about markets for water quality or quantity, we are developing a voluntary Chesapeake Nutrient Neutral Fund (the Fund) in partnership with World Resources Institute, the Chesapeake Bay Foundation and the University of Maryland, as well as the Meridian Institute and Aspen Institute that will invest private dollars to offset nutrient pollution thereby improving water quality. Despite the compelling logic of water-quality trading, markets to date have remained locally based, experimental and small. Yet to capture the attention of private investors, these markets must demonstrate viability on a regional scale. We believe that if the viability of this market-based tool can be successfully demonstrated in a large, multi-state watershed like the Chesapeake Bay, then its absorption by other regions throughout the world will be rapid.

The Fund will apply the crediting, marketing, and monitoring lessons learned from voluntary carbon funds established to offset greenhouse gas emissions to pollution reduction in the Chesapeake Bay watershed.  Specifically, the Fund will operate across the entire Chesapeake Bay watershed; therefore, pollution reduction projects can be targeted to areas and sources that have the highest pollution loads regardless of jurisdictional boundaries. To further energize the potential for this regional, market-based Fund, we will host a Katoomba meeting on water quality trading in Washington, DC in June 2008. For further information on this initiative, please contact mjenkins@forest-trends.org.

State of the Voluntary Carbon Markets 2008

This spring Ecosystem Marketplace will be releasing its second annual State of the Voluntary Carbon Markets report. Our first report, Picking up Steam: The State of the Voluntary Carbon Markets 2007, was a landmark study in the development and quantitative analysis of the voluntary carbon markets, including both in-depth research and up-to-date data based on extensive interviews. The report answered fundamental questions about the voluntary markets, questions such as: How big is the market? How fast is the market growing? Who are the buyers? What are people trading and at what price?

The answers to these questions are increasingly important to market actors ranging from community land owners in the developing world to bankers and carbon traders in the world’s financial capitals. Since State of the Voluntary Carbon Markets 2007 was released, public feedback has been overwhelmingly positive. The report has received significant media attention in industry publications and by the mainstream media. In addition to this media attention, the report’s findings have also been cited at numerous conferences and presentations, and carbon market industry members recently presented the report’s findings to U.S. Congress. Visit www.ecosystemmarketplace.com for more information.



Convenings


UPCOMING EVENTS

FEATURE! Global Katoomba Meeting XII –Washington, DC

The Global Katoomba Group meeting, “Developing an Infrastructure Fund for the Plant” to be held in Washington, DC on June 9-10, is bringing together policy makers, major financial institutions, business leaders, the environmental community and local indigenous groups to discuss the current scope and potential of ecosystem markets – carbon, water, biodiversity – to address environmental problems. Climate change, water pollution, and biodiversity loss threatens the natural infrastructure of our planet and human well-being, but the time is ripe for a major event here in the U.S. to help drive action and bring together these different sectors to adopt strategies that will match the scale and urgency of the environmental issues we face today. We hope that Global Katoomba is another opportunity to find solutions that have a real, measurable impact on our political and economic systems in the U.S. and across the globe. We hope you are able to join us! Please visit www.katoombagroup.org/chesapeake for more information.  

BBOP side event at the Convention of Biological Diversity - Bonn, Germany

The ninth meeting of the Conference of the Parties to the Convention on Biological Diversity (CBD COP 9) will take place in Bonn, Germany, 19 – 30 May 2008.  BBOP will host a side event at this gathering (Monday, 26 May, 1:15pm).  The side event is intended to bring experts experienced in biodiversity offset design together with CBD government delegates to explore the potential of biodiversity offsets.

Katoomba Tanzania Meeting

The East and Southern Africa Katoomba Group will co-host a meeting with the CARE/WWF Equitable Payments for Watershed services Project, and the Natural Capital Project in Tanzania from September 17-20, 2008. The meeting will bring together the full range of actors interested in markets and payments for ecosystem services (PES), including potential buyers, sellers, and intermediaries from throughout the East and Southern Africa region. The event will enable an exchange of market information as well as ongoing learning about diverse PES policy and project models, and making of PES deals. The first day will offer an introduction to key existing markets and payments for ecosystem services as well as specific PES efforts underway in Tanzania. The second and third day will focus on addressing specific capacity building challenges associated with designing and implementing PES deals. In addition, participants will have the opportunity to visit a PES project site. Resource people will be available from the international Katoomba Group network, the Natural Capital Project, and the CARE/IIED payments for watershed services project. For more information about the meeting, please contact Alice Ruhweza aruhweza@forest-trends.org

RECENT EVENTS

The Business and Biodiversity Offsets Program Methodology Meeting – Rome, Italy

The Business and Biodiversity Offsets Program (BBOP) convened a methodology meeting on February 21-22, 2008 in Rome, Italy. The meeting was scheduled to coincide with the 13th meeting of the Subsidiary Body on Scientific, Technical and Technological Advice to the Convention on Biological Diversity, which was held at the FAO in Rome the same week. The BBOP meeting brought together 36 participants – Advisory Committee members including representatives from the pilot projects and members of the BBOP Secretariat. The meeting objectives were to: discuss the draft biodiversity offset methodology handbooks and how they should be put into the public domain; introduce the Dutch Biodiversity Balance methodology for supply-chain offsets; prepare for CBD COP-9; and discuss different models of policy frameworks to encourage biodiversity offsets and the forthcoming meeting of the CBD.

Potomac Forum on Illegal Logging and Associated Trade – Washington, DC

The 2nd annual Potomac Forum on Illegal Logging and Associated Trade was held on February 14th, 2008 in Washington D.C. More than 100 international participants representing government, industry and NGOs gathered to hear about new initiatives being undertaken to mitigate illegal logging, and to better understand the different perspectives related to illegal logging and associated trade. The day comprised of six sessions focusing on a wide range of topics: Wood Product Sourcing; Initiatives in Europe and Canada; U.S. Domestic Legislative Initiatives; Carbon and Finance Governance post Bali; Market Based Instruments and Trade Agreements. Speakers included Senator Ron Wyden (D-Oregon), representatives from the US Trade Representatives office, Department of Justice, the European Commission, the World Bank, and the US Congressional House Ways & Means Committee. Proceedings and presentations from the Forum will be made available at http://www.forest-trends.org.

Designing Payment and Compensation for Ecosystem Service Schemes and Reduced Emissions from Deforestation and Degradation (REDD) – Iquitos, Peru

Over 120 people from the local government, local, national and international NGOs, and communities, gathered in Iquitos, Peru from October 2-4, 2007 at a meeting hosted by the Instituto de Investigaciones de la Amazonia Peruana (IIAP), the Tropical America Katoomba Group, the Government of the Loreto and the Servicio Holandés de Cooperación al Desarrollo (SNV). The meeting underscored the opportunities and challenges of PES, creating a space for dialogue and interaction between various stakeholders, and demonstrating the high interest and commitment from government institutions, NGOs and communities to further develop PES in Peru. Participants noted the value of bringing together government entities with varied roles in environmental decision-making, making key connections, and strengthening existing and developing new Peruvian networks. Improving coordination and clarity among these institutions and developing concrete next actions were noted as benefits of the gathering. Utilizing and improving technologies and engaging communities in indigenous areas will clearly be critical to the success of PES in Peru. For more information on the meeting, visit http://www.katoombagroup.org/event_details.php?id=14



New Publications



Negotiating for Nature’s Services: A Primer for Seller’s of Ecosystem Services on Identifying and Approaching Private Sector Prospective Buyers­
Jackie Prince Roberts and Sissel Waage

This primer was written to help rural communities tap into these emerging markets for ecosystem services in order to fund local conservation and sustainable development. It is intended to be a reference tool for identifying, negotiating, and closing ecosystem service deals with private sector buyers. In issuing this primer, Forest Trends hopes to increase the number of conversations between potential sellers and prospective private sector buyers of ecosystem services. The Primer is available to download in English and Spanish at http://www.katoombagroup.org/learning_tools.php

Getting Started: An Introductory Primer to Assessing and Developing Payments for Ecosystem Services Deals
Carina Bracer, Sissel Waage and Mira Inbar

The primer details a step-by-step process for developing PES deals and includes an extensive list of resources and materials provided by Katoomba partners throughout the guide. The primer also provides an interactive interface for the Katoomba Group website’s PES Learning Tools page. In July 2007, the first edition of the Getting Started manual was published as a one of a kind tool for developing and implementing PES agreements, specifically for NGOs and communities or ‘sellers’. A second edition of the primer is planned for Spring 2008. (The primer is available to download in English and Spanish at http://www.katoombagroup.org/learning_tools.php)

Conservation and Biodiversity Banking: A Guide to Setting Up and Running Biodiversity Credit Trading Systems
Nathaniel Carroll, Jessica Fox and Ricardo Bayon

The Ecosystem Marketplace has released the second in a series of books on Environmental Market Insights published by Earthscan. The book, Conservation and Biodiversity Banking: A Guide to Setting up and Running Biodiversity Credit Trading Systems, is the first comprehensive book on species mitigation banking.  It provides practical guidance, tools, case studies, analysis, and insights into endangered species banking in the United States and abroad. We hope it will be used as a reference manual by a broad audience including private landowners, complying industries, regulating agencies, policy makers, bank developers, and interested general public. In writing this book, we hope to provide a foundation of knowledge on which the practice of banking conservation credits may grow in use and in its effectiveness for conservation and restoration.

To purchase the book, visit:
http://shop.earthscan.co.uk/ProductDetails/mcs/productID/802

Investment in the Liberian Forest Sector: A Roadmap to Legal Forest Operations in Liberia
John Woods, Arthur Blundell, Robert Simpson – February 2008

When the civil war in Liberia ended in 2003, the UN Security Council began to work with the Government of Liberia on forest sector reforms that would ensure that logging would no longer fuel conflict in Liberia or in neighboring countries. These efforts resulted in a reformed national forestry law in 2006; since then, Liberia has adopted new international standards on logging to increase accountability and transparency in the sector, including requirements for chain of custody timber tracking, and forest management plans. With UN sanctions against log exports lifted and concessions once again being awarded starting in early 2008, this report provides guidelines to industry wishing to engage in the Liberian forest sector - explaining why the reforms of Liberia's forestry law were necessary and explaining the new laws and regulations that govern the management of Liberia's forests. Visit http://www.forest-trends.org/index.php to download the report.

Forest Products Trade Between Russia and China: Potential Production, Processing, Consumption and Trade Scenarios
Steven Northway and Gary Bull – July 2007

A collaborative effort between Forest Trends, the Faculty of Forestry at the University of British Columbia, and the Rights and Resources Initiative, this report models future scenarios of forest products processing, consumption and trade between China and its main suppliers, with a particular focus on Siberia and the Russian Far East. Based on the findings of the International Forest and Forest Products (IFFP) trade model analysis, this report speculates how China’s demand for industrial roundwood will continue to increase while both China’s domestic supply and imported logs from Russia will fail to meet this demand. In order to improve regional supply, one solution proposed is to increase investment in infrastructure and sawmilling capacity in Eastern Russia, which could expand export volumes of both sawlogs and sawnwood for Chinese markets. Visit http://www.forest-trends.org/index.php to download the report.

Environmental Aspects of China’s Papermaking Fiber Supply
Brian Stafford – July 2007

This report by Brian Stafford for Forest Trends provides an analysis of the fiber sources for China’s papermaking industry of both domestic and international origin. In recent years China has accounted for over 50% of the world’s growth in paper and paperboard production – and the majority of this growth is fueled by the inputs of imported secondary fiber - in particular wastepaper from the US, Europe and Japan. While only a small percentage of the paper industry's fiber comes from virgin forest materials, concerns remain over the legality and sustainability of China’s imported pulp and pulpwood, especially from Indonesia and Russia. Visit http://www.forest-trends.org/index.php to download the report.

W.E.T. (Water/Environment/Trading) E-Newsletter Launched

The W.E.T. Newsletter reports from the frontlines of global attempts to use markets and market-like instruments to address environmental issues related to water. The newsletter cover everything from schemes that seek to ensure more predictable flows of water downstream by protecting forests upstream, all the way to larger and more elaborate markets designed to protect and enhance water quality in industrial areas. To sign up, visit http://ecosystemmarketplace.com/pages/static/signup.php 



Announcements

 

NEW FACES AT FOREST TRENDS:

Carl Lucerno joined Forest Trends in January 2008 under secondment from the Natural Resource Conservation Service, where he is Director of the water program. Carl will lead the water work of Forest Trends, including the design of a “Nutrient Neutral Fund” and upcoming Katoomba Chesapeake event.
 
Jordan Sauer joined Forest Trends in February 2008 as Program Associate of the Forest Trade and Finance program. Prior to joining Forest Trends, Jordan worked briefly with the International Institute for Environment and Development (IIED) in London, assisting with the consultation process on the Global Forest Partnership consultation. Jordan recently graduated from the School of Oriental and African Studies in London with an MA in International Studies and Diplomacy.

Tracy Stanton joined the Ecosystem Marketplace as Manager of the water programs in January 2008. Recently, she worked as a consultant for the National Academy of Public Administration where she collaborated on an assessment of US EPA’s delivery of environmental services using the Chesapeake Bay watershed as a learning platform. From 1995-2003, Tracy worked at the University of Maryland in the School of Public Policy and Center for International Economics developing programs aimed at improving the effectiveness of government policies and programs in the environment and financial management arenas. She holds a masters degree in Public and Environmental Policy from the University of Maryland and a BA from The Ohio State University.
 
Steve Zwick joined Ecosystem Marketplace as managing editor in January 2008.  Prior to that he was a contributing writer to the site, as well as to several other magazines and newspapers, including Time Magazine, Fortune Magazine, and the Wall Street Journal.  He also acts as rotating host of Newslink on Deutsche Welle Radio in Bonn, Germany, and as editor-at-large for Futures Magazine in Chicago.

 

 
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