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May 26th, 2006 New InitiativesUpcoming and Recent ConveningsNew PublicationsGeneral Announcements

Portland Katoomba
Making the Priceless Valuable: Jumpstarting Environmental Markets
June 7-9, 2006

For more information or to register click here:

On June 7-9 a unique gathering of development and conservation groups, international financiers, timber companies, carbon traders, and public agencies will convene in Portland, Oregon for the Katoomba Group's first domestic meeting: “Making the Priceless Valuable: Jumpstarting Environmental Markets.” This gathering of leaders in emerging markets for ecological services will stimulate and expand the development of robust markets in the Pacific Northwest for ecosystem services, such as carbon storage, habitat and biodiversity conservation, and water quality.


Dear Friends,

In 2006, we anticipate more significant growth at Forest Trends. We have grown our Forest Trends team and are expanding our programs. One highlight is a new set of regional Katoomba Groups for Tropical America and East and Southern Africa, developing capacity in those critical regions and engaging in these new environmental markets. We are also working on a regional Katoomba initiative for the Pacific Northwest to be launched this June 7-9 in Portland, Oregon. Join us if you can! For more information and to register, please visit

I look forward to reporting on the progress of these new initiatives and other developments at Forest Trends over the year.

Michael Jenkins, President

New Initiatives


The Regional Katoomba Group for Latin America

The Regional Katoomba Group for Latin America was launched with a strategy meeting in Ecuador in April 2006, bringing together 14 people from different sectors and countries. The group identified key gaps and issues that exist in PES across different regions like Central America, the Andes and Amazon today. Key objectives for the work of the new Tropical America Katoomba Group includes developing PES projects and initiatives which demonstrate new methodologies and models such as ‘bundled' projects- where land owners receive simultaneous payments for various different ecosystem services provided (water, carbon and biodiversity); Additionally, since a key factor limiting the development of PES initiatives today is weak or conflicting legislative and regulatory frameworks, a key role identified for the Tropical America Katoomba Group is supporting strategic PES-related political or legal developments in the region. Selected Katoomba Group members will attend workshops with government authorities developing or improving legal frameworks, or advise specific ministry or government representatives. Another focus of work will be mobilizing buyers in the private as well as public sector. The formal meeting to launch the Tropical America Katoomba Group will take place in early October 2006 in Sao Paolo, Brazil.


China Council for International Cooperation on Environment and Development (CCICED) Taskforce on Eco-Compensation

Building on Forest Trends' historical involvement with several Chinese institutions, we have been formally invited by the Chinese co-Chairs of the CCICED Taskforce on Eco-Compensation to provide technical support to the recently formed Taskforce on developing recommendations on ecosystem service payments for government policy. These recommendations will, in turn, be presented to the Council and finally to the Prime Minister in late 2006, providing an important opportunity to assist and influence the expansion of PES in China.  Partnering with the State Environment Protections Agency (SEPA), Forest Trends will support the Taskforce by engaging international experts to create a set of analytical tools on the issues facing PES systems in China and will co-host a 2-3 day training workshop designed to generate recommendations which the Taskforce can incorporate into their October report to the Council and the Prime Minister. Forest Trends will attend Taskforce meetings prior to the workshop and continue to provide technical support to the Taskforce throughout the process


Ecosystem Marketplace

The Ecosystem Marketplace has been working at a frenetic pace since the turn of the year. The site has launched three new focused newsletters in the past few months: V-Carbon News (about the voluntary carbon market); Mitigation Mail (about the U.S. wetland mitigation and conservation banking industry); and Community Forum (about community involvement in payment for ecosystem services schemes around the world). The Ecosystem Marketplace team has also criss-crossed the globe, covering forestry events in Latin America, carbon trading conferences in Europe and New York and new approaches to biodiversity conservation in the Pacific Northwest.

Visit the Ecosystem Marketplace web site for the latest news and information of the world's ever-changing marketplace for ecosystem services. To subscribe to one of the many free electronic newsletters provided by the Ecosystem Marketplace or specifically on conservation and mitigation banking, follow this link:


Biodiversity Offset Website Launched!

We are pleased to announce the launch of a new Business and Biodiversity Offset Program (BBOP) website, accessible through the Forest-Trends website or at The website provides the basics of biodiversity offsets, including types of offsets, the rational for and role of pilot projects, and a developing methodology toolkit that will serve as a guide for designing and implementing biodiversity offsets. The website also includes a listing of our Advisory Committee members and those within our larger Learning Network, plus a myriad of literature and resources focused on the discussion of biodiversity and offsets.



Upcoming Events:

Portland Katoomba Meeting, June 7-9, 2006

On June 7-9 a unique gathering of development and conservation groups, international financiers, timber companies, carbon traders, and public agencies will convene in Portland, Oregon for the Katoomba Group's first domestic meeting: “Making the Priceless Valuable: Jumpstarting Environmental Markets.” This gathering of leaders in emerging markets for ecological services will stimulate and expand the development of robust markets in the Pacific Northwest for ecosystem services, such as carbon storage, habitat and biodiversity conservation, and water quality. The Pacific Northwest is positioned to become a global leader in the development of ecosystem service markets, both because of the potential of the region's resources, but also because of its vulnerability to climate change and intractable challenges such as the recovery of Pacific salmon. Perhaps most importantly, this region is already brimming with innovative solutions, projects, and political leadership.

The Ecosystem Marketplace team will be providing daily coverage of the sessions, in print and on our website, and a compilation of regional relevant articles. For full event details including the agenda and to register, visit the web site:

Mobilizing PES in Africa: Cape Town, South Africa, 8-10 November, 2006

In South Africa, the Katoomba Group will convene the second meeting of its Eastern and Southern Africa regional network, gathering key stakeholders involved in designing and initiating ecosystem service payment systems, as well as service providers in Africa. These include policymakers, high-level management from national and international private firms, rural development and environmental NGO's, and low-income farming and forest communities. At this critical point in launching payments for ecosystem services (PES) throughout the world, it is essential to begin working to build capacity for stakeholders implementing PES in rural communities in Africa. The meeting will provide the opportunity to share lessons learned from PES around the world and to plan a systematic strategy for investment in pro-poor PES in Africa. For more information on the meeting, please visit

Recent Events:

The Business and Biodiversity Offset Program Meeting, Curitiba, Brazil, March 2006

The Business and Biodiversity Offsets Program (BBOP) (, shows through a portfolio of pilot projects in a range of industry sectors, that biodiversity offsets can help achieve significantly more, better and increasingly cost-effective conservation outcomes than normally occurs in infrastructure development. BBOP convened its third meeting in Brazil in March. The meeting brought together twenty-eight members of the BBOP Advisory Committee and pilot projects to review biodiversity offset methodologies and provide input into the current pilot project portfolio. The next meeting will be held in South Africa in September 2006.

Following the BBOP Program Meeting in Curitiba, The Business and Biodiversity Offset Program (BBOP), The Cambridge Centre for Conservation Policy (CCCP), Conservation International (CI), Fauna and Flora International (FFI), Forest Trends, The International Council on Mining and Metals (ICMM), The US National Fish and Wildlife Foundation, Rio Tinto, Shell International, The World Business Council for Sustainable Development, and The World Conservation Union (IUCN), organized a roundtable discussion with the goal of facilitating an exchange of information and continuing dialogue on Biodiversity Offsets and their role as conservation and sustainable development mechanisms. Discussion focused on the opportunities and challenges associated with offsets, the strengthening and tightening of regulatory frameworks, and the role of the offsets in creating and maintaining sustainable development. Thirty-six individuals, representing a wide range of sectors including government, NGO's, academia, companies, industry associations, and financial lending institutions, attended and participated.


“Ecosystem Services: Developing Products and Markets”— Queretaro, Mexico, May 25th and 26th, 2006

An International Workshop on Ecosystem Service Payments entitled “Ecosystem Services: Developing Products and Markets” will take place in Queretaro, Mexico on May 25th and 26th, in coordination with the Sierra Gorda Biosphere Reserve and Katoomba Group member Martha Ruiz Corzo. Over 100 Protected Area Managers and related parties from across Mexico will be in attendance. Key experts from the International Katoomba Group and Forest Trends will make presentations addressing how Biodiversity offsets, Water and Carbon payments can be leveraged by Protected Area managers in Mexico for all ecosystem types. Experts from the National Ecology Institute, the National Forestry Commission, and practitioners from PES projects in the country will provide input related to the state of Ecosystem Services in Mexico. The new Spanish version of the Ecosystem Marketplace will be launched at this event.

New Publications

The Community Forum

The Community Forum, an electronic PES newsletter of the Ecosystem Marketplace focused exclusively on providing capacity building content, tools and dialogue for local communities, indigenous groups, and sustained development organizations interested in PES and their partners, was launched in April 2006. An international Community Advisory Group for PES Katoomba Groups is being formulated to define key gaps and needs in capacity building for communities and related institutions interested in PES. For more information contact: Carina Bracer at To sign up for the newsletter click here:


China and the Global Market for Forest Products: Trends and Implications for Trade and Livelihoods
A. White, X. Sun, K. Canby, J. Xu, C. Barr, E. Katsigris, G. Bull, C. Cossalter and S. Nilsson

China is now in the world's spotlight, with governments, industry and development agencies eager to learn more about the global impact the country is having on forests and forest industries. This paper is an overview of the key findings from Forest Trends' China-East Asia Publication Series, and also presents a wake-up call for the global forestry community: one of our key findings is that domestic and export demand for Chinese manufactured wood products will continue to grow dramatically, at least over the medium term and probably well beyond. So, in turn, will the demand for both home-grown and imported timber. This will have important implications for forests, forest people and industry globally. This report is written for governments, industry and civil society to gain a clearer understanding of their respective roles in the global timber market. It is also hoped that it will help them to take an important leadership role in helping to transform the forest products market to one that not only ensures sustainable forestry and conservation, but to one that provides satisfactory livelihood opportunities for forest dependent communities, and promotes sustainable economic development for all nations. It is co-authored by CIFROR and the Chinese Center for Agricultural Production. Click here to view the full report:


Logging, Legality, and Livelihoods in Papua New Guinea

A new report on the commercial logging industry in Papua New Guinea (PNG) was released in March, 2006 by Forest Trends. The report, Logging, Legality, and Livelihoods in Papua New Guinea, summarizes the findings from five independent reviews of the timber harvesting industry conducted between 2000 and 2005. It shows that the overwhelming majority of current commercial industrial forestry operations in PNG are ecologically and economically unsustainable, and, in fact, illegal, as found by the government's own commissioned independent audits conducted between 2000 and 2005.

The reviews were initiated by the Papua New Guinea government in response to the widely held view that forest management in PNG was not providing long-term benefits to the country or its citizens. The Forest Trends report makes a series of recommendations to mitigate some of the key problems. These recommendations include: continued monitoring of activities in the region, the establishment of a legal fund to support legal challenges through the court system, raising awareness about land-owner rights, support to the Ombudsman Commission, best-practice reviews, and international assistance to investigate potential corruption and the relationship of the timber industry to political groups. The full reports (Volumes 1 and 2) can be downloaded from our publications page:


Banking on Conservation: Species and Wetland Banking in the U.S.

In April, The Ecosystem Marketplace launched its first booklet in the "EM Market Insight Series." The booklet compiles a number of informative articles and original reporting on mitigation and conservation banking. Conservation Banking is protecting a parcel of land containing natural resource values that are conserved and managed in perpetuity for specified listed species and used to offset impacts occurring elsewhere to the same resource values on non-bank lands. This collection of feature stories demonstrates the breadth and depth of issues covered at the Ecosystem Marketplace. It also gives a sense of the practical approach the EM team takes to reporting on wetland and species mitigation banking. Click here to download a copy of "Banking on Conservation: Species and Wetland Banking in the U.S. "



New Faces at Forest Trends

Please help us welcome Beto Borges who joins Forest Trends as the director of the Communities and Markets Program. He comes to Forest Trends with three decades of experience working with communities in Brazil and around the world as well as a strong business background. Sissel Waage has also joined Forest Trends as Senior Coordinator. Sissel will develop and manage content and strategies for Katoomba Group meetings and workshops worldwide. She will also assist in the preparation of grants for the Africa Katoomba Group network. We are very excited that they have joined the Forest Trends team.

We wish good luck to Sara Scherr, who this month began working full-time as the President and CEO of Ecoagriculture Partners, which she founded in 2002 and led part-time for the past several years ( Forest Trends was one of the early co-sponsors of Ecoagriculture Partners, and hosted EP's Secretariat during 2004 and early 2005. Sara has been with Forest Trends since 2002, serving as FT's Director of Ecosystem Services. Sara will continue collaborating closely with Forest Trends' Ecosystem Services program and to serve on the Board of the Katoomba Group.