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December 19, 2005

Africa Regional Katoomba Group Established
* A regional Eastern and Southern Africa Katoomba Group network was established based on the model of the international Katoomba Group. The long-term vision of this network is that PES will contribute significantly to realizing conservation and development outcomes in the region. To read more, click here.


Dear Friends,

As 2005 comes to an end, we at Forest Trends look back to a very busy and rewarding year. We incubated and hatched a new organization – the Rights and Resources Initiative – with our partners CIFOR and IUCN. We played the role of midwife to Ecoagriculture Partners, another newly formed organization, and we established the Katoomba Group's Ecosystem Marketplace. All part of our vision to build strategic coalitions to expand the value of forests to society; to promote sustainable forest management and conservation by creating and capturing market values for ecosystem services; to support innovative projects and companies that are developing these new markets; and to enhance the livelihoods of local communities living in and around those forests.

I wish you a safe and happy holiday season,

Michael Jenkins, President

New Initiatives


Rights and Resources Initiative
Forest Trends, along with partners CIFOR, IUCN and RECOFTC have just launched a new global initiative to advance forest tenure and policy reforms. The “Rights and Resources Initiative” aims to help communities, governments, private and civil organizations increase community and household ownership and control of forest lands and resources as part of the strategy to enhance forestry's contribution to local livelihoods. Ensuring secure community rights to own use and trade forest products and services will advance poverty alleviation, biodiversity conservation and forest-based economic growth. DFID, the Ford Foundation, IDRC, the US Forest Service and USAID are providing intellectual support and seed funding.

The Initiative builds on the work at Forest Trends engaging communities and markets and is the product of long-standing collaboration with IUCN and CIFOR. The Initiative has been incubated over the past couple of years by Forest Trends and will be coordinated by the Rights and Resources Group, a new, non-profit organization based in Washington D.C. and led by Andy White, Arvind Khare and Augusta Molnar. The Initiative involves community organizations and is expanding to include these as well as other development organizations promoting tenure and policy reforms. (Click here for concept note in English, French, Spanish) and contact Misty Jones ( for more information. The Initiative's website, will be up and running by January 1, 2006. We look forward to working with the coalition partners in bringing greater attention to these issues.

Africa Regional Katoomba Group
A regional Eastern and Southern Africa (including Madagascar ) Katoomba Group network was established based on the model of the international Katoomba Group. The long-term vision of this network is that PES will contribute significantly to realizing conservation and development outcomes in the region. Over the short term, the group plans to put in place the institutional framework, enabling environment and technical/ financial capacity to make sufficient contributions to environmental and developmental goals. The Regional Katoomba Group's priority objectives are: to establish at least one type of high quality PES project in each ecosystem functioning in each country; to establish a mechanism to mobilize international and national buyers of ecosystem services; and to influence national policies to include PES as an active tool to increase forest cover. The group will do this by serving as a network between country task forces, linking buyers and sellers, linking to the East and Southern African community, and establishing a rapid response team of technical expertise.

The Katoomba Group is a network of over 200 experts and practitioners in ecosystem market development and includes environmental research, finance, business, government and community representatives. Over the last six years it has held over eight global meetings and provides technical assistance to projects, organizations and government agencies around the world. In 2005 it established its own independent status as a non-profit organization in accordance with U.S. tax law. For more information on the regional Katoomba Group initiative, please contact Mira Inbar at


Upcoming Events:

BBOP Project Meeting – Brazil, March 2006
The Business and Biodiversity Offset Program (BBOP) will host its third Program Meeting in Curitiba , Brazil in parallel with the next Conference of the Parties (COP-8) to the United Nations Convention on Biological Diversity (CBD). The meeting will convene members of the BBOP pilot portfolio – a cluster of pilot biodiversity offset projects including leading companies in the oil and gas, mining, and tourism sectors involved in projects around the globe. The BBOP Advisory Committee, a group of individuals with expertise in science, law, policy, bioregional planning, and socio-economics, will also attend. In conjunction with the World Conservation Union (IUCN) and the International Council of Mining and Metals (ICMM), the BBOP will also hold a public meeting on the scientific, social, and policy issues of biodiversity offsets.

The BBOP is a new partnership of stakeholders across sectors that are testing, trialing, and promoting biodiversity offsets. The program is sponsored by Forest Trends and Conservation International. For more information on the meeting, please contact Mira Inbar at

International Tropical Forest Investment Forum – Mexico, April 2006
This Forum will be held from 25-27 April 2006, in Mexico . The Forum will be interactive, with the International Tropical Timber Organization (ITTO), Forest Trends, the Katoomba Group, Grupo Ecologico Sierra Gorda, and four branches of the Mexican Environment Ministry bringing together a wide range of stakeholders that can facilitate, access, and operate mechanisms for increased investment in natural forest-based enterprises, including community enterprises. For more information, contact: Paul Vantomme, ITTO Assistant Director for Forest Industry; tel:+81-45-223-1110; fax: +81-45-223-1111; e-mail:; Internet:

Regional Katoomba Conference – Portland , Oregon, June 2006
This conference, to be held from June 7-9, aims to further galvanize emerging efforts to form conservation banks, carbon markets, TMDL water quality trading schemes, and other attempts to improve environmental conditions through market mechanisms in the Pacific Northwest .  Sponsored primarily by Forest Trends and Ecotrust, the conference will focus on forest carbon, conservation banks, and water quality/quantity trading schemes relevant to the region. Optional field trips to carbon sequestration projects and wetland and conservation banks – as well as technical workshops on developing specific markets and instruments for ecosystem services – will follow the conference.

Recent Events:

Public Forest Reform: Issues and Future Directions – Beijing, China, September 2005
The Center for Chinese Agricultural Policy and Forest Trends co-organized a conference on “Public Forest Reform: Issues and Future Directions” on September 27 th in Beijing . While celebrating the first 10 years of CCAP (congratulations CCAP!), this conference aimed to assist Chinese policy makers to better understand the status of public forest reforms in China and in major forest countries around the world. It was followed by working sessions with Chinese policy leaders and a field trip to Northeast China . Key presentations were delivered by Sally Collins, Associate Chief, USFS, USA; Tasso Azevedo, Director of Forestry Program, Ministry of Environment, Brazil; Antonio Azuela, UNAM, Mexico; and Jintao Xu, Arvind Khare, and Andy White of Forest Trends.

See: for copies of presentations and powerpoints.

Katoomba Group Meetings – Kampala, Uganda, September 2005
The Eighth Private Katoomba Group Meeting took place in Southeastern Uganda, on the headwaters of the Nile River at the end of September. The meeting convened leading innovators and implementers of PES from Malawi , South Africa , Kenya , Tanzania , and Uganda along with international experts to provide input into Katoomba Group member activities and to discuss catalyzing Katoomba Group efforts in Africa , the direction of the Ecosystem Marketplace, and challenges/ opportunities in mobilizing buyers for ecosystem services.

Following the private meeting, Forest Trends, Ecotrust-Uganda, and the National Environment Management Authority (NEMA) convened a public plenary in Kampala for Ugandan policymakers, NGO's, the private sector, and members of the media. The focus of this event was to raise awareness of PES among high-level stakeholders in Uganda .

Prior to the meeting, partners in Kenya , Uganda , and South Africa produced national inventories on the status of PES in their countries. These inventories and other information on the regional Katoomba Group network can be found on the Eastern and Southern Africa Katoomba Group website:

United Nations Environment Programme Meeting on Ecosystem Services – London, October 2005
Amanda Hawn of Forest Trends participated in the UN Environment Programme (UNEP) meeting which gathered ecologists, economists, non-profit organizations and environmental conventions for a meeting at the London School of Economics from October 10-12. Their task: weaving ecosystem services such as water filtration, climate control and the benefits of biological diversity into the economics of sustainable development. The meeting focused on how to direct investments toward those ecosystem services that underlie the shared goals of Multilateral Environmental Agreements, the Millennium Project and UNEP's stewardship of the global environment. At the close of the meeting, UNEP announced a resolve to “take a lead in the field of ecosystem services” – the first step of which is to be a pilot project in East or Central Africa demonstrating the links between slowing biodiversity losses, supporting migratory species and developing a sustainable economy of conservation. For further information please contact Amanda Hawn at

China Inter-Agency Meetings in Preparation for ENA FLEG Ministerial Conference – St. Petersburg, Russia, October 2005
On October 27-28, 2005, the Chinese State Forest Administration and Forest Trends co-hosted an inter-agency meeting with representatives of the Ministry of Foreign Affairs, Ministry of Commerce and customs agencies to prepare for the Europe/North Asia Forest Law Enforcement and Governance Ministerial Conference. Forest Trends and international experts were invited to provide an overview of international and national perspectives on the international FLEG ministerial processes and issues related to forest governance, illegal logging and associated trade. Representatives from Chinese NGOs and academia were invited to participate in several sessions of the 2-day meeting, which included a detailed review of the official draft documents of the ENA FLEG Ministerial Conference. NGOs and academia representatives were able to hold parallel sessions to the closed inter-agency discussions. For further information please contact Kerstin Canby at

Integrated Management of Environmental Services in Human Dominated Tropical Landscapes – Turrialba, Costa Rica, November 2005
Sara J. Scherr of Forest Trends participated in the 4 th Henry A. Wallace Inter-American Scientific Conference on “Integrated Management of Environmental Services in Human Dominated Tropical Landscapes,” held November 1-3, 2005. The meeting was sponsored by The Tropical Agricultural Research and Higher Education Center (CATIE), in collaboration with the Foreign Agricultural Service of the United States Department of Agriculture (USDA/FAS). The Conference focused on Payments for Ecosystem Services in Latin America , with diverse cases presented and critically discussed in both agriculture and forest-dominated landscapes. Sara presented on “Ecosystem Services in Agricultural Landscapes: Assessing the Potentials of ‘Ecoagriculture.' Other Katoomba Group members participated in the Conference, including Herman Rosa of PRISMA, Gunars Platais of the World Bank, and Markku Konninen of CIFOR. For further information please contact Sara Scherr at

National Symposium on Nature Valuation and Financing – Ede , Netherlands, December 2005
Michael Jenkins presented at the Netherlands ' National Symposium on Nature Valuation and Financing, sponsored by various Dutch institutions, including the Ministry of Agriculture, Nature and Food Quality, and Wagenigen University . The symposium covered a range of issues including valuation and financing methods, and a discussion on the constraints and opportunities for private sector and government agencies to participate in ecosystem service payment schemes. For further information please contact Dolf de Groot at

New Publications

The Ecosystem Marketplace Matrix

The matrix, assembled by Forest Trends and the Ecosystem Marketplace with input from industry experts, practitioners and dozens of market players, assesses the impact of ecosystem services markets and payments schemes around the world, and in developing countries in particular. It provides valuable information related to the scope and depth of ecosystem services markets – in particular their current and estimated potential size, their potential impact on the environment and the various players involved in each market.

Forest Trends has identified 19 existing markets (or market sub-sections, e.g. regulated forestry carbon markets), ranging from compliance-driven cap-and-trade markets all the way to voluntary private payments for ecosystem services. Below each of these markets are estimates on the current size of the market, the potential size of the market in the mid and long-term, and the estimated impact of the market on the environment and on conservation. Below these, Forest Trends has included lists of the most relevant market participants, categorized in terms of Buyers, Sellers, Market Shapers, and Market service providers. All of this information has been categorized in the matrix, making it an accessible and useful tool for organizations who want to understand more about the various elements of ecosystem services markets and how they function. For more information on how to obtain a copy of the matrix, please contact Molly Loughney at

China and the Asia-Pacific Publication Series – Forest Markets for Sustainable Livelihoods and Forests:
Over the last year, Forest Trends and the Chinese Center for Agricultural Policy (CCAP) have created a series of documents looking at the impacts of forestry activity across the China and Asia Pacific region, focusing in particular on Chinese market trends and policies and the impacts thereof. By filling in information gaps and building a knowledge base of the industry, we hope to not only strengthen forest market and policy analyst networks across the region, but also to engage policy and market leaders in China and key supplying countries in East Asia to advance pro-poor policy and market reforms.

These papers can all be accessed at

1) The China forest products trade: Impacts and implications for Asia-Pacific supplying countries
Unsustainable harvesting practices, illegal logging and negative impacts on forest community livelihoods plague Asia-Pacific supplying countries. Aside from Russia , China 's top Asia-Pacific log suppliers could at best maintain current supply, with resources being depleted in less than 20 years. Resource limits also constrain expansion and long-term continuation of processed product export to China . Greater attention and action on the part of governments, market leaders, and international organizations is needed to 1) address the negative impacts on forests and livelihoods; 2) shift supply to a sustainable, legal and equitable basis; and 3) to determine China 's long-term forest-product supply source. (Available in English and Chinese).

2) China 's forest product exports: An overview of trends by segment and destinations
In only 7 years, China 's timber product exports have tripled in volume and increased fourfold in value, with timber product exports accounting for more than 75% of China 's total forest product exports each year. This paper provides an overview of these forest product trends, analyzing both product categories and major destination countries. This analysis reveals the critical role of developed countries – in particular the US and the EU and their growing demand for forest products – as key “drivers” in this global forest product commodity chain. For this reason, efforts to address illegal logging and associated trade – as well as the broader challenge of advancing sustainable forestry – will require complementary actions by both producer countries and major importers and consumers of processed forest products.

3) Chinese collective forests: Contributions and constraints
Collective forests form the majority of China 's forested area and have proven to be critical in maintaining the livelihoods of hundreds of millions of rural inhabitants, supplying wood and other forest products for China 's burgeoning demand and providing critical environmental services. This paper describes the distribution of collective forests, their key policy and institutional dimensions and how collective forest property rights are defined in both law and in practice. It concludes with policy reform recommendations that would strengthen the collective forest sector and increase their contribution to poverty alleviation, rural development and sustainable forest conservation.

4) Forest products exports from the Russian Far East and Eastern Siberia to China : Status and trends
This study focuses on the status and trends of Russian forest product exports to China . It includes summary statistics and a description of the volumes and values of forest product exports to China . Lankin concludes that the short and medium term outlook for Russian timber exports is dim, as exports continue to grow faster in volume than in value. In the long run, however, this can be remedied through a diversification of forest product exports, more coordinated efforts between Russian exporters to avoid selling below market value, and more active marketing by Russian exporters so that Russian forest products are more competitive in the international marketplace. (Available in English and Russian)

5) Siberian and RFE timber market for China : Criminal and official technologies, players and trends
Illegal logging and growing Chinese and domestic demand have led to resource exhaustion and a constant reduction of timber quality and price. This analysis reveals the extraordinarily low accuracy of official statistics and the ease with which major timber market players can avoid any administrative, economic and fiscal measures and barriers. Another important insight from this analysis is the awareness that some of what is termed “illegal logging” should not be convicted – but rather supported as selective community-based operations – because they are less destructive and more sustainable than much legal and large scale logging. (Available in English and Russian)

6) Strengthening forest management in Indonesia through land tenure reform: Issues and framework for action
Despite Indonesian government efforts to improve the management of their dwindling forest resources, deforestation caused by illegal logging is widespread, and large tracts of forest ecosystems remain under intense threat. Ownership uncertainty has caused poor forest management and will continue to create conflicts over who should control and manage the land and natural resources unless policy changes occur. This paper examines opportunities and challenges for addressing the tenure and land management questions that emerge from the skewed classification and management of the Forest Zone in Indonesia , and recommends a course of action to the Indonesian government.