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October 5th, 2006 New InitiativesUpcoming and Recent ConveningsNew PublicationsGeneral Announcements

Baikal Economic Forum
August 17-18, 2006,
Lake Baikal, Russia

Stakeholders representing Russian, Chinese and international leaders in business, international investment, government, environment and academia convened in Lystryanka, Russia near Lake Baikal to discuss the forest products trade between Russia and China and its long-term impact on the economy, environment and society on both sides of the border. Recognizing the influence of global forest products demand on the situation with respect to the forest sector development in Russian – Chinese border regions, the meeting, convened by Forest Trends, aimed to identify how responsible trade and investment policies can foster sustainable forest sector development on both sides of the border -- with positive contributions to local economies and livelihoods.

Dear Friends,

As we enter fall here in Washington, I report with excitement on many developments here at Forest Trends including the formal launching of the Rights and Resources Initiative (RRI), a new collaboration with Forest Trends, IUCN, CIFOR, RECOFTC, World Agroforestry Centre, ACICAFOC, Foundation for People and Community Development, and Intercooperation. Born of our work over the last four years on identifying the contributions of local communities to global conservation as well as the large obstacles ahead of us (establishing land and resource tenure, developing pro-poor policies), RRI is dedicated to ensuring that community partners benefit from their stewardship to improve their livelihoods.

On a more somber note, I also report of the tragic helicopter accident this past week in Nepal which killed all 24 aboard including two close friends, Mingma Sherpa and Chandra Gurung. It is a devastating loss of the conservation leadership in Nepal and Bhutan . We will never forget their contributions and I will miss their company.

Michael Jenkins, President


New Initiatives


Forest Products Trade Between Russia and China: Encouraging Responsible Enterprise through a Solid Investment Climate, Burguduz, Russia

Forest Trends collaborated with Greenpeace Russia, World Bank, and IUCN to hold a workshop on the Sino-Russian timber trade in Lystryanka, Russia near the shores of Lake Baikal . Stakeholders representing Chinese, Russian and international leaders in business, international investment, government, environment and academia convened to identify responsible trade and investment policies to foster a sustainable forest sector on both sides of the border. The trade in forest products between Russia and China is booming: China has become the number one importer of timber products in the world over the past seven years, and Russia has become its number one supplier. However, unsustainable harvesting methods, illegal logging, and limited value-added processing within Russia itself threaten the long-term trade relationship between the two countries. The workshop issued a statement which was distributed at the Baikal Economic Forum. Presentations and agenda, in English and Russian, will soon be available from

The statement spells out a vision of how responsible trade and investment policies can foster sustainable forest sector development for China and Russia - with positive contributions to local economies and livelihoods. It calls for the establishment of a broad-based working group and dialogue process including Russian and Chinese officials, business and civil society to develop an Action Plan for long-term sustainable development of trade and investments for the socioeconomic benefit of the people of both countries and preservation of global and regional environmental values of North-East Asia 's key ecosystems


Launching Tropical America Katoomba Group, Sao Paulo, Brazil

The Katoomba Network is designed to create an enabling environment for local actors to take critical steps towards the development and improvement of payments for ecosystem services – (PES) initiatives and policies, critical for restoring and improving ecosystems.

At this first regional meeting of the Tropical America Katoomba Group (TAKG), we build on years of International Katoomba Group experience and aim to create a platform for active and direct learning about PES, while stimulating efficient and equitable development of ecosystem service markets in Tropical America.

The gathering of the network will be held in Brazil, a key actor in the international and regional discussion of evolving carbon markets and avoided deforestation. It is also a model country to develop and apply community based schemes for ecosystem services sales and to drive relationships with the private sector. Over 500 people have registered to attend the public event, which will introduce global experiences and advances on ecosystem services from leaders around the world, describe examples drawn from Brazilian federal and state PES initiatives, and address opportunities on economic development specifically through emerging carbon opportunities. We will also engage more thoroughly on specific challenges such as the utility of PES for the agriculture forestry frontier, the opportunities for communities to benefit from PES, and concrete proposals such as avoided deforestation.

For full event details including the agenda, visit the web site:


The Regional Katoomba Group for East and Southern Africa

In Uganda in September 2005, the Africa-based regional Katoomba group was initiated to bring together expertise in the region, to provide support to new and existing PES projects and to address the obstacles unique to the region. The East and Southern Africa (ESA) Katoomba Group will undertake a series of activities aimed at building foundations for information sharing, coordinated planning and implementation support that will enable a substantial scaling up of pro-poor PES in East and Southern Africa. National networks have been formed in the participating countries currently participating including, Uganda, Kenya, Tanzania, Malawi, Madagascar and South Africa.

The formal launch meeting of the Regional Katoomba Group for East and Southern Africa will take place in Cape Town in November 2006. Over the last year consultative meetings have taken place in Uganda, Kenya, Tanzania and Malawi hosted by national partner institutions to formalize the network; take stock of the current applications of PES in the regions; identify key gaps and opportunities for using the network to scale up PES; and develop an action plan to address issues such as building technical capacity for proper valuation of ecosystem services; developing PES projects and initiatives that demonstrate new methodologies including ‘bundled' projects (where land owners receive payments for ecosystem services provided simultaneously, such as water, carbon and biodiversity); supporting strategic PES-related regulation and policy in the region, and; mobilizing buyers in the private and public sectors. For more information on this work, please visit



Recent Events:

Portland Katoomba Meeting, June 7-9, 2006

A unique gathering of development and conservation groups, international financiers, timber companies, carbon traders, and public agencies convened in Portland, Oregon last June 2006. The Katoomba Group's first domestic meeting: “Making the Priceless Valuable: Jumpstarting Environmental Markets,” co-sponsored by Ecotrust, a leading sustainable development group based in Portland, brought together leaders in emerging markets for ecological services and explored ways to 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, because of the potential of the region's resources, its vulnerability to climate change and intractable challenges it faces such as the recovery of the Pacific salmon. Perhaps most importantly, this region is already brimming with innovative solutions, projects it faces and political leadership. Longer term program activities are being designed with Ecotrust.

The Ecosystem Marketplace (EM) team provided daily coverage of the sessions, in print and at The team also provided a compilation of regional relevant articles on the EM site. To view the full agenda, download presentations and to view the daily coverage for the event, visit the web site:


BBOP Meets with Madagascar President to Discuss Offsets, June 22, 2006

The Business and Biodiversity Offset Program (BBOP) is a new partnership between companies, governments and conservation experts to explore biodiversity offsets that demonstrate conservation and livelihood outcomes in a portfolio of biodiversity offset pilot projects. Last June the BBOP team attended a meeting in Madagascar in conjunction with Conservation International's Global Symposium. Members from BBOP were invited to meet with the President of Madagascar, Marc Ravalomanana, who expressed interest in establishing policy for offsets in Madagascar . The President encouraged BBOP to collaborate with the government of Madagascar on a national workshop on biodiversity offsets with companies, government departments and conservation experts. He recommended that regional and national government should be involved, to include mining, agriculture and forestry companies, and other sectors whose management of land has a bearing on Madagascar 's biodiversity. He stressed poverty and deforestation as key threats to biodiversity conservation in Africa, stressing the importance of working with local communities.


Business and Biodiversity Offsets Program Meet in South Africa - September 26-28, 2006

The Business and Biodiversity Offset Program (BBOP) hosted its 4th Program Meeting in South Africa from September 26-28, 2006. On September 29 there was a one day Learning Network meeting at the South African National Biodiversity Institute. The meeting focused on technical and socioeconomic aspects of offset design and implementation and discussed the conservation and business risks and opportunities of biodiversity offsets. It also enabled a forum to share experiences of biodiversity offsets in Southern Africa . For more information:

New Publications

Going Carbon Neutral, How the Retail Carbon Offsets Market Can Further Climate Change Mitigation Goals

This booklet profiles the retail carbon offsets market and explores key technical challenges facing the market. It helps illustrate what needs to happen in the carbon market to assure consumers that they are receiving a quality product that provides climate change mitigation benefits.

This publication is part of the Ecosystem Marketplace's new Market Insights Series -

Developing Future Ecosystem Service Payments in China: Lessons Learned From International Experience

This report was prepared for the China Council for International Cooperation of Environment and Development (CCICED) Taskforce on Ecocompensation. The paper captures the international evolution and current status of major types of Payments for Ecosystem Services (PES). It summarizes the lessons that international experience provides regarding how best to design and implement PES schemes, and synthesizes findings especially relevant for China . The CCICED Task Force reports to the Ministers and the Premiere later this year with recommendations for long-term policy. While China has employed the world's largest public payment schemes for PES, they have been poorly targeted and have delivered little result.

International experience suggests that by bringing in local communities and governments more closely into all aspects and stages of PES design and implementation, China will be able to significantly improve equity and efficiency issues in current and future PES schemes. The process of building and revising PES instruments will stimulate the ongoing dialogue, capacity-building and the institutional and legal reforms needed to better identify and align the social costs and benefits of environmental protection and ecosystem service provision. The report is available at: Taskforce Report v105 Aug 8 2006.pdf


Voluntary Carbon Markets, An International Business Guide to What They Are and How They Work

Expected release: January, 2007
This business book, published by Earthscan, is written and edited by the Ecosystem Marketplace's Ricardo Bayon and Amanda Hawn, draws together all of the key information on international voluntary carbon markets with commentary from leading practitioners and business people. While maturing quickly, the voluntary market is complex, fragmented and multi-layered, but it is beginning to consolidate around a few guiding practices and business models from which conclusions can be drawn about market direction and opportunities. It covers all aspects of voluntary carbon markets around the world including the US, Europe, Australia, Canada, and Asia: what they are, how they work and, most critically, their business potential to help slow climate change. For more information or to pre order the book:


IDRC Poverty and Payment for Ecosystem Services (PES)

Forest Trends, in partnership with the Rights and Resources Initiative and Ecoagriculture Partners, are collaborating with the Global Scoping Study on Pro-Poor Compensation for Ecosystem Services (CES) to produce two papers: “Organization and Governance for Fostering Pro-Poor CES,” and, “How Important will Different types of CES be in Shaping Poverty and Ecosystem Services over the Next 2 decades.” These papers define some of the key activities that donors and different stakeholders should engage in to strengthen the poverty alleviation potential of ecosystem service compensation mechanisms around the world. For more information, contact Carina Bracer, Manager Tropical America Katoomba Group or see


Northwestern Lights, Regional Leadership in Environmental Markets

This publication focuses on the leadership in the Pacific Northwest to spur the development of the markets for ecosystem services. The premise is that the region's unique geography, history, and social fabric make it especially fertile ground for the development of environmental markets. Articles include an analysis of the initiative in Portland, Oregon to become the first city in the U.S. to adopt a greenhouse gas reduction plan in 1993, Conservation Banking efforts in California to conserve over 40,000 acres of habitat, and a new multi-million dollar private equity fund created by the non-profit organization, Ecotrust, to help investors make money from selling the forest's “ecosystem services” such as carbon, clean water and recreational values. This publication was created to serve as a catalyst for the Pacific Northwest Katoomba group launched in Portland, Oregon on June 7-9, 2006.

Katoomba Newsletters:

Ecosystem Marketplace Publications

The Ecosystem Marketplace distributes four free electronic newsletters and will release a fifth very soon.

  • V-Carbon News – what's new and exciting involving the voluntary carbon market
  • Mitigation Mail – the latest on the U.S. wetland mitigation and conservation banking industry
  • Community Forum – spotlighting community involvement in payment for ecosystem services schemes around the world
  • Monthly Update – a regular update on the latest with the Ecosystem Marketplace

For a free subscription to any or all of these electronic updates, visit



Board Development

Mr. Ole Petenya Yusuf has recently joined the Board of Directors at Forest Trends. Mr. Petenya is a Kenyan Maasai Conservationist who serves as the Secretary for the Shompole Community Trust, a legal body in charge of all Biodiversity Conservation, Eco-Tourism and other social development activities within the Shompole community. We welcome Mr. Petenya to our Board and look forward to his leadership.

New Faces at Forest Trends:

Frank Hicks joins Forest Trends as the Director of the Business Development Facility. Frank has over 20 years of International Development experience, with more than 16 years based in developing countries. He has most recently worked as Vice President of Organic Commodity Products, an organic chocolate company, based in Costa Rica, as well as the Rainforest Alliance bringing sustainable forest commodities to market.

Alice Ruhweza joins the Forest Trends team as the East and Southern Africa Coordinator of the Katoomba Group. During the last several years she has worked in trade, telecommunications and environment and health and has recently worked with the National Environmental Management Authority where she was involved with exploring the potential for ecosystem services as a tool for increasing funding for conservation and environmental management in Uganda.