| Environment |
Money Tree: Credit Himachal
By Rohit Roy
2012-03-26
It is a little difficult to highlight the subliminal negatives of a project that has such obvious positives on the face of it. For some time now a massive World Bank project has been doing the rounds of the hallowed grounds of India and UN bureaucracy, and finally it looks set to fly. Around 4000 hectares of land in the Siwalik Hills in Himachal Pradesh has been earmarked for reforestation. The intention behind the project is laudable, not least because of the sheer magnitude of it. The objective is that over next two decades, over 839,000 tons of carbon dioxide equivalents are likely to be sequestered into the reforested land. It is literally the largest project of its kind on the planet (there are 18 such World Bank projects around the world).
Under the conditions of the project, the tree density must not be less than 1100 plants per hectare. Felling or diversion of the trees will not be permitted for non-forestry purposes and land owners will not have rights to the timber of the trees during the period of the project. In return, the fiscal benefits for land owners would average around 2500 per hectare per year.
The benefits for such a project are unquestionable. Reforesting degraded forest and agricultural areas is, firstly, a clever use of land that is starting to lose some of its commercial sheen. This will be welcome news for the land owners/farmers of these areas. More importantly, the environmental benefits are massive. Reduction in atmospheric carbon as well as growth in forest areas is always a good thing. The resulting carbon credits accrued from the afforestation will be bought off by the World Bank thereby potentially earning landowners of approximately 177 panchayats anywhere from 4000 to 7000 per year per family. Replenished forests and confirmed income for rural families turns this into a win-win for everyone.
Yet there are certain niggling doubts worth mentioning. As part of the deal, 10 per cent of the total carbon revenue will be redirected to the Forest Department as overhead charges. This is not necessarily bad. After all, much needed revenue is heading into a largely ignored department. However, this also means that, vast amounts of international revenue, that should, by right, be reaching poor, rural farmers, are now being diverted through a corrupt bureaucracy. Surely we all know the precedent set by the Indian administration in such matters.
Moreover, although to these farmers the sum may seem high, the actual international converted payment boils down to around US $5 per ton of carbon dioxide sequestered – tuppenceha’penny compensation for cleaning up the massive emissions from the extravagant consumption patterns of the West.
And this brings us to a final point of contention – that of the farcical nature of carbon trading. Too easily, is the wasteful consumption of the West forgiven in exchange for payment. By virtue of the Kyoto Protocol, to reduce carbon emissions, the Carbon credit system was introduced, yet developing countries were exempted from such restrictions. This has therefore opened up an opportunity for developing countries to sell the carbon credits they do not require. Although the positive effect is, this economic opportunity provides an incentive for developing countries to be greener; the flip side is that rich conglomerates who find it cheaper to buy carbon credits than reduce their own emissions do exactly that.
And that seems to be the case with the World Bank project as well. It is already known that DNA of Spain is buying of the carbon credits accruing from the project and in essence the World Bank has merely brokered a deal between the Himachal Pradesh government and the Spanish company.
Yet, for this particular project it might be prudent to turn a blind eye to the ethical grey area that is carbon trading and converted rates of payment, for the sake of the environment and the people of Himachal Pradesh. The benefits may be too great not to.
It is a little difficult to highlight the subliminal negatives of a project that has such obvious positives on the face of it. For some time now a massive World Bank project has been doing the rounds of the hallowed grounds of India and UN bureaucracy, and finally it looks set to fly. Around 4000 hectares of land in the Siwalik Hills in Himachal Pradesh has been earmarked for reforestation. The intention behind the project is laudable, not least because of the sheer magnitude of it. The objective is that over next two decades, over 839,000 tons of carbon dioxide equivalents are likely to be sequestered into the reforested land. It is literally the largest project of its kind on the planet (there are 18 such World Bank projects around the world).
Under the conditions of the project, the tree density must not be less than 1100 plants per hectare. Felling or diversion of the trees will not be permitted for non-forestry purposes and land owners will not have rights to the timber of the trees during the period of the project. In return, the fiscal benefits for land owners would average around 2500 per hectare per year.
The benefits for such a project are unquestionable. Reforesting degraded forest and agricultural areas is, firstly, a clever use of land that is starting to lose some of its commercial sheen. This will be welcome news for the land owners/farmers of these areas. More importantly, the environmental benefits are massive. Reduction in atmospheric carbon as well as growth in forest areas is always a good thing. The resulting carbon credits accrued from the afforestation will be bought off by the World Bank thereby potentially earning landowners of approximately 177 panchayats anywhere from 4000 to 7000 per year per family. Replenished forests and confirmed income for rural families turns this into a win-win for everyone.
Yet there are certain niggling doubts worth mentioning. As part of the deal, 10 per cent of the total carbon revenue will be redirected to the Forest Department as overhead charges. This is not necessarily bad. After all, much needed revenue is heading into a largely ignored department. However, this also means that, vast amounts of international revenue, that should, by right, be reaching poor, rural farmers, are now being diverted through a corrupt bureaucracy. Surely we all know the precedent set by the Indian administration in such matters.
Moreover, although to these farmers the sum may seem high, the actual international converted payment boils down to around US $5 per ton of carbon dioxide sequestered – tuppenceha’penny compensation for cleaning up the massive emissions from the extravagant consumption patterns of the West.
And this brings us to a final point of contention – that of the farcical nature of carbon trading. Too easily, is the wasteful consumption of the West forgiven in exchange for payment. By virtue of the Kyoto Protocol, to reduce carbon emissions, the Carbon credit system was introduced, yet developing countries were exempted from such restrictions. This has therefore opened up an opportunity for developing countries to sell the carbon credits they do not require. Although the positive effect is, this economic opportunity provides an incentive for developing countries to be greener; the flip side is that rich conglomerates who find it cheaper to buy carbon credits than reduce their own emissions do exactly that.
And that seems to be the case with the World Bank project as well. It is already known that DNA of Spain is buying of the carbon credits accruing from the project and in essence the World Bank has merely brokered a deal between the Himachal Pradesh government and the Spanish company.
Yet, for this particular project it might be prudent to turn a blind eye to the ethical grey area that is carbon trading and converted rates of payment, for the sake of the environment and the people of Himachal Pradesh. The benefits may be too great not to.
