A blog about the future of the planet. Ecology, Environment, Development and Economy are put together and looked at critically.
Tuesday, December 12, 2017
Confused indeed
Thursday, November 3, 2011
Carbon Markets - a corporate Trojan Horse?
Carbon farmers
![]() |
| download report |
The Carbon Rights Act 2003 establishes a statutory basis for the ownership and protection of carbon rights, in order to facilitate trading. It enables a carbon right to be registered on the land title as a separate interest in that land. The Act provides that a carbon right may be registered with the consent of all parties having an interest in the relevant land.....Owning a carbon right is like owning land. The title guarantees who owns the land (or carbon right). The market will determine what the land (or carbon right) is worth, based on a wide range of factors including how the land is used.
Pay farmers 'to deposit carbon' says businessman
Africa’s pollution and land grab threat from UN carbon market
Biofuel demand and CO2 quotas drive violent land grabs in Honduras
Land grabbing in the neocolonial order
Land grabbing, corporate farming to deepen hunger, poverty, and unemployment: Moot
Forest carbon rights for poor at risk – study
It is your forest but my carbon
Thursday, October 20, 2011
Organic Agriculture A step towards the Green Economy in the Eastern Europe, Caucasus and Central Asia region
![]() |
| Download report |
• In the Eastern Europe, Caucasus and Central Asia (EECCA) region organic agriculture could play a catalyst role in green economy transformation by re-vitalizing the farm and food sector and creating employment that provides better returns on per unit of labour input all along the value chain. It could increase income and food security for rural communities; create business opportunities for investors and increase the contribution of
agriculture to the national economies by, inter alia, reducing import bills for farm inputs, boosting exports of organic products and reducing costs to society that result from the negative externalities of industrial farming.
• Conventional industrial agriculture produces high yields per hectare by using external inputs such as fossil fuel, synthetic fertilizers and pesticides that result in higher levels of greenhouse gas emissions, land degradation and depletion of natural capital. When externalities – such as soil erosion; reduced natural resistance of crops to pests; loss of human health and life (caused by pesticides and other chemicals); loss of biodiversity,
ecosystems and ecosystems services; contamination of water; and costs associated with climate change – are accounted for, the cost inflicted by intensive industrial farming on a country and its population outweigh its benefits.
• In contrast, organic agriculture offers the EECCA region the opportunity to maintain and enhance its natural capital stock by reducing emissions, creating carbon sinks, preserving soil organic matter and increasing biodiversity. The value of public benefits and services from organic production has been estimated at US$40 per hectare per year for carbon sequestration; and a further US$30 per hectare per year for other biodiversity services. In addition, by avoiding negative externalities, including soil erosion and pesticide contamination, organic agriculture saves in the range of US$150-200 per hectare per year compared to conventional production. In total, organic agriculture yields environmental advantages valued at US$220-270 per hectare per year. In addition, land value can increase substantially from better soil management.
• Organic agriculture requires significant investments in capacity and skills development of farmers and the whole value chain as well as institutional strengthening and infrastructure development. These investments provide good economic, social and environmental returns.
• The organic sector merits public sector support in terms of policy reforms and investment as many of the benefits of organic agriculture are passed on to society as a whole rather than staying with just the farmers and private investors.
• A mix of regulations and incentives can drive the growth of organic production. This can be seen in countries such as Moldova, which experienced a three-fold increase in the number of organic farmers between 2006 and 2009, and now 11 per cent of its agricultural export is organic produce.
• This report suggests that attaining an organically managed area in the range of 5 to 10 per cent of the region’s whole agriculture area is desirable and possible within a decade. EECCA governments can gradually stimulate organic production by setting ambitious growth targets, making organic action plans, adapting policies to support organic agriculture and facilitating public and private investments in the sector.
• Economic incentives to reward supply chains for responsible and green behaviour need to be put in place, including linking them with relevant international mechanisms such as international payments for ecosystem services, Reduced Emissions from Deforestation and Forest Degradation (REDD) and REDD+.
• Finally, governments need to implement “polluter pays” (e.g. for nutrient runoff) and “user pays” (e.g. for water) principles in agriculture. The first priority should be to remove distorting policies, such as subsidies for agrochemicals or policies that hinder long-term land tenure by farmers or farming communities.
Monday, April 25, 2011
carbon projects drives land grabbing and GMOs?
Carbon credits rarely deliver money to projects and communities on the ground. Out of a total carbon market volume of $144 billion in 2010, only 3,370 million (0.2%) was for project-based transactions, with only a very small proportion of that likely to reach the community level. Most of the money stays in the global North, even though projects themselves are in the South. Those that benefit most from carbon trading are financial speculators such as J.P.Morgan, Goldman Sachs and Merryl Lynch, who buy and sell carbon credits like they do any other internationally tradable commodity.
I can also recommend a paper by Sian Sullivan:
The environmentality of ‘Earth Incorporated’: on contemporary primitive accumulation and the financialisation of environmental conservation
Wednesday, April 6, 2011
Carbon prices will not drive innovations
It is commonly argued that a high carbon price will drive innovations. e.g the EU Climate Commissioner said that last year and famed Harvard University professor Michael Porter says "A carbon tax would lead to a rethinking of energy use, drive innovation in the green economy and yield profits for "first movers,"
This conventional wisdom is now contradicted:
A carbon price can be a useful tool to nudge the adoption of mature technologies, but it does little to pull forth disruptive new technology or stimulate the advance of basic knowledge upon which new technology is built."Says a recent report from the ITIF . The report shows by many examples that innovations of the kind and scale we need to cope with climate change, are beyond what markets can sort out.
In the current energy and climate debate, most advocates argue that putting a price on carbon emissions through either a carbon tax or a cap-and-trade program is the key to spurring breakthrough energy innovation. This conventional wisdom is based on the notion that higher dirty energy prices will provide the right market signals to entrepreneurs, who will then develop breakthrough clean alternatives. But advocates of the price approach provide little to no evidence for this notion, for the simple reason that there is little to no evidence for it. In fact, over the past century, in major innovation after major innovation, the pursuit of research and public support for early-stage technology and markets, and not price signals, have driven breakthrough innovation.Real break-through innovations originate in research-driven technological development. Markets drives innovations in mature technologies where market barriers apart from price are minimal. Apart from being valuable in developing strategies for climate change, and play down the value of carbon pricing for driving innovation, I think the research is also challenging the frequent claims of how superior markets are to drive innovations. Antibiotics, internet, most progress in aviation and nuclear industries have been results of public funded research, and certainly not by entrepreneurs.
The study does recognize that carbon pricing, whether cap and trade or tax or something else, can encourage saving by consumers and drive technologies oriented to that. Also uptake of existing technologies that are close to being competitive can be speed up by carbon pricing. Critically, the authors note that a carbon price could also be used to generate needed revenue for targeted investments in clean energy innovation.
Other articles on similar topic: the Greens in Australia
Australia should be spending $2.5 billion a year on new low-emissions technologies by 2017, a doubling of current expected expenditure, climate change adviser Ross Garnaut says. Prof Garnaut argues there's a case for "exceptionally large fiscal support for firms that invest in research, development and commercialisation of new low-emissions technologies" over the next decade. He says pricing carbon will drive innovation but "on its own it will not increase it by enough". reports thewest in Australia
Putting a price on carbon emissions will have limited environmental benefits and will not drive the level of technical innovation required to tackle climate change.That was the message for delegates at the close of the Tyndall Centre's inaugural conference on financing green technology earlier this week as Dr Jonathan "Jack" Frost of Johnson Matthey Fuel Cells argued that, regardless of more recent difficulties with emission trading schemes, carbon pricing initiatives had a history of failing to deliver environmental benefits.writes Businessgreen.A recent report about the EU carbon trading scheme confirms that the scheme is not sufficient to drive innovations.
But what of complimentary instruments such as performance or regulatory standards and carbon finance mechanisms which aim to create economic incentives? These instruments, while they have been shown to be effective at producing favorable environmental outcomes, do not necessarily drive innovation in the marketplace. For example, as in the prior cases of sulphur dioxide emissions and leaded gasoline, emitters were simply able to invest in “off-the-shelf” technologies to deal with the externalities. It is important to remember that regulatory certainty around these environmental pollutants did not result in new innovation because the technological alternatives were already in existence. Furthermore, the cost of removing sulfur or lead as an environmental practice was virtually invisible to consumers; a move that seems unlikely in the case of CO2 and manmade greenhouse gas. For greenhouse gas emissions, which can conceptually be treated as an environmental pollutant, the required off-the-shelf alternatives (for existing infrastructure) arguably do not yet exist or are not yet cost competitive ! Case in point: it is not yet possible to retrofit a coal burning power plant with a carbon capture and storage unit. writes carboninsights.
Putting a price on carbon dioxide emissions will not be enough to drive the innovation needed to clean up dirty energy systems, according to Bruegel, a think tank based in Brussels, and Harvard economists.Reinhilde Veugelers, a senior research fellow at Bruegel, warned on Monday that a “private green innovation machine has not yet taken off” and that private companies still were not making environmental innovations their core goal.Ms. Veugelers cited figures from the World Intellectual Property Organization showing that just 2.2 percent of all patent applications between 2000 and 2006 were for environmental applications. She said the global electricity sector “was almost absent” in terms of green innovation. Reported The New York Times in 2009.
Monday, March 28, 2011
Ecosystems: Invaluable and worthless
In the middle of the 1990s, a study estimated the value of ecosystem services to some US$ 33 trillion, double the size of the world Gross Domestic Product, GDP (Hall and Klitgaard 2006). MEA doesn’t try to assign values to ecosystems and ecosystem services, but it shows with numerous examples that if we did calculate such values, many things we consider to the profitable today would not be profitable and vice versa. This is because profit is calculated by the entrepreneurs running a company and as long as they can use ecosystem services for free and as long as the degradation of the services are not paid for, this will not appear in any economic calculations. Some examples of estimated values of ecosystem services are:
- In Belize, mangrove and corral reefs produce fisheries, tourism and coastal protection for a value between 395 million and 559 million dollars annually, according to studies of World Resource Institute and World Wildlife Fund. This can be contrasted to the whole Gross Domestic Product of Belize of 1.3 billion dollars (WRI 2008)
- The value of biodiversity in New Zealand was estimated 1997 to 152 billion dollars, which can be compared to the GDP of 56 billion dollars. The valuation didn’t include theoretically potential services but only those that are known (OECD 2001).
- ‘Business as usual’ deforestation and land-use changes cause annual losses of natural capital valued at between EUR 1.3 trillion and EUR 3.1 trillion, a sum exceeding the total financial losses of Wall Street and London City during 2008, their worst year ever (Arborvitae 2010).
Let it be
In October 1999, the state of Orissa in India was battered by a super cyclone that killed almost 10,000 people and caused a massive loss of livestock and property. A researcher found that mangroves do provide important storm protection to people, livestock, and buildings. Had the mangrove forests been intact, more than 90% of the deaths due to the 1999 cyclone would have been avoided. A hectare of mangrove forest land stopped damage worth $43,000 in the district during the super cyclone. Of course, such severe storms do not occur every year. But even allowing for the fact that mangroves have no storm protection value during non-storm years, the long-term protection value of about $8,700. At the time, a hectare of cleared land was fetching $5,000. Thus, leaving mangroves as storm buffers generates more value to society than clearing them for development (Glover 2010).
How Mexican farmers get paid by American blue chips to bind carbon
To an increasing extent, systems are developed for payment of maintenance or new production of ecosystem services. Already 1996, Costa Rica introduced a system where land owners could get compensation for carbon sequestration, biodiversity, water regulation and aesthetic values. Year 2001, the payments in this program had reached 30 million dollars for a total of 280,000 hectares. Farmers in the EU and the USA are paid for all kinds of environmental services to protect landscapes, water sources, maintain or re-create biodiversity[1]. The USA pays 1.4 billion dollars annually for 13 million hectares (FAO 2007).
The possibly best know market for environmental services is the market for reduction of emissions of green house gases. There are two markets. One is government controlled and is regulated under the Kyoto Protocol, the other is a voluntary market for companies, organizations or individuals wanting to reduce their environmental footprint or making themselves “carbon neutral”. The Clean Development Mechanism under the Kyoto protocol, the EU system for emission rights and the voluntary so called “carbon[2] market” was worth some US$ 143 billion market in 2009, an increase of US$48 billion just three years earlier, so this is now one of the fastest growing markets in the world (World Bank 2010b). In Brazil’s first so called REDD (Reducing Emissions from Deforestation and forest Degradation) project each family in the Juma Sustainable Development Reserve in the Amazon, each family receives US$ 28 per month if the forest remains uncut (UNEP 2010b). Farmers in the Scoltel Té-project in Chiapas (Mexico) sell carbon sequestration, in the soil and in the vegetation, for 3.30 dollar per ton. Of this 60 percent goes directly to the farmers, representing an increase of their income with between 300 dollars and 1,800 dollars, big sums for households where the average income is about 1000 dollars (World Bank 2007).
The city of New York gets the majority of its water from an area stretching 200 km north and west of the city. The authorities came to the conclusion that is was more efficient to manage the catchment area for good water quality instead of investing in a purification plant. Such a plant would cost between 6 and 8 billion dollars. The implementation of a catchment management program cost 1.5 billion. It includes measures such as purchase of some critical lands; education, support to farmers for reducing use of chemical fertilizers and synthetic pesticides according to FAO, the United National Food and Agriculture Organization (FAO 2007). Insurance and shipping companies are financing the reforestation of the Panama Canal Zone to restore freshwater flows and avoid increased costs caused by canal closures (TEEB 2010).
Global extortion or fair compensation?
The United States Treasury and Brazil have signed an agreement converting $21m of Brazilian debt into a fund to protect three tropical ecosystems. Brazil will use the money for activities to conserve protected areas, improve natural resource management and develop sustainable livelihoods for communities that rely on forests. The agreement comes under the Tropical Forest Conservation Act (TFCA) of 1998, which to date has generated $239 million to protect tropical forests in Bangladesh, Belize, Botswana, Colombia, Costa Rica, El Salvador, Guatemala, Indonesia, Jamaica, Panama, Paraguay, Peru, and the Philippines (ISEAL 2010).
Taking the idea of getting paid for not using a resource to new levels, the President of Ecuador, Rafael Correa, has said that his government is prepared not to extract nearly a billion barrels of oil from Yasuní National Park, a part of the Amazon rainforest of extraordinary but fragile ecological and cultural richness. To do so, however, Ecuador will need to be compensated by the international community for its loss of oil revenue – to the tune of US$350 million per annum for the next 10 years. A conservative estimate is that exploiting the oil would bring in US$5.7 billion in present value terms, or 10% of Ecuador's GDP. With abatement[3] cost for carbon dioxide at US$14 to US$20 per ton, the cost to the world to abate these emissions will be between US$1.7 billion and US$2.4 billion for the extraction and burning, and US$909 million for deforestation, for a total between US$2.6 billion and US$3.7 billion (The Guardian 2009b).
Like with other new programs, especially when they involve money, there are potential problems and side effects, some of which are not seen initially. There are examples from India, where poor landless people have been harmed of community forest management plans, because the plans limit their access to resources to which they before had unrestricted access. Other examples when communal land has been appropriated by private owners who suddenly see a commercial interest in these environmental services. In Guyana, a private equity firm has bought the rights to 20 percent of the value of environmental services from a 370,000 hectare rainforest reserve anticipating that its carbon storage, water storage, biodiversity maintenance and rainfall regulation services will become a valuable asset in the future (Arborvitae 2010).
Should the have a price or are they invaluable?
We have seen how important ecosystems and the services they can supply are. Mostly we are not aware of the services that are provided by nature to our benefit. Their composed value is very high, notwithstanding many of them are of such a character and importance for our survival that their value simply can’t be calculated; such as supply of oxygen. We can’t even imagine how to organize the same service if the current ecosystems collapse. Ecosystem services can be more efficient, we influence them all the time. Agriculture is of course the most prominent example where we over millennia has increased the value (for us, that is), the yield, from a certain area. But the example also highlights the dangers of looking at only one ecosystem service, in this case the supply of food. It is exactly that narrow perspective that has led us to degeneration of the agriculture landscape, to erosion, to pollution in the same time as it has given us the possibility to tenfold population.
Surprisingly, there is not a very strong critique against the privatization that payment of ecosystem services actually entail, not even from normally anti-capitalist groups. On the contrary, many of them express sympathy and support programs for programs to pay farmers for ecosystem services. Probably they don’t realize that payment of ecosystem services from taxes represents a giant privatization and a transformation of nature resources and commons into commodities. As we discussed the total value of the ecosystem services probably exceed the total value of the current economy. And as more and more services are threatened, their prices will increase, fully in line with the principles of market economy. This also means that the GDP will increase and increase more, the more we deplete our resources, until they ultimately collapse.
[1] The link between the payments and the supplied service is rather weak, in particular in the EU. The levels of compensation are not calculated in any scientific or economic way, but are rather just the results of horse-trading between farmer organizations and the EU member states.
[2] The real ”carbon market” is of course the coal, gas and oil market and not the carbon dioxide green house gas emission reduction market
[3] Abatement and mitigation are used interchangeably to describe the processes by which greenhouse gases emissions can be reduced or compensated for by some other mechanism, such as carbon sequestration, carbon sinks. Adaptation refers to the process of adapting to climate change, i.e. not change it or do anything about it, but learn how to live with it.

