Community Forestry in the Agricultural Frontier Evolution of a Sustainable Forestry Supply Chain. Peter Pinchot

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1 Reducing Emissions from Deforestation and Forest Degradation Community Forestry in the Agricultural Frontier Evolution of a Sustainable Forestry Supply Chain Peter Pinchot Tropical deforestation: 15% global carbon emissions

2 EcoMadera

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4 Watershed in the midst of deforestation Roads, settlement, Illegal logging and conversion to pasture and crops

5 Opportunity Cost of Forest Conservation with Roads Annual revenues per hectare, smallholder management Cattle pasture: $60 - $100 /ha/yr Cacao: $600 - $1,200 African palm: $1,200 - $2,000 Legal forestry $30 - $60 (15 yr harvest cycle) Exploitation harvest $250 to $500 (one time)

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8 Sustainable forestry value chain to make native forests competitive Community forest enterprise conservation + livelihoods Secure land tenure and forest governance Silvicultural knowledge of majority of forest species Low impact and efficient timber harvest Innovation of wood products that use many species Local manufacturing to provide jobs Selling to higher value markets Providing diverse benefits to forest owners

9 Balsa plantations, local maufacturing, end market wind turbine blades

10 Sustainable forestry and low impact timber harvest

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12 Land Tenure and Forest Governance -- Location Specific Context: colonist families, 50 ha parcels, little community governance EcoMadera collaboration with Ministry of Environment to implement contracts with landowners to support sustainable management Legal land titles Government ecological services payment for reserves Government subsidy for forest plantations EcoMadera lease payments for native forest for management EcoMadera support for agroforestry -- cacao EcoMadera provides 55 jobs in forestry, manufacturing, and administration.

13 Family Land Revenue Model Year 50 ha parcel Ha Contract annual payment Forest reserve 8.75 $263 $263 $263 $263 $263 Restoration reserve 3.75 $56 $56 $56 $56 $56 Production primary forest $341 $341 $512 $695 $695 Production degraded forest 9.19 $74 $74 $74 $74 $74 Landowner labor plus sales Cacao 5.06 $2,020 $1,590 $1,549 $1,276 $3,081 Balsa 1.13 $567 $270 $189 $189 $162 Hardwoods 5.06 $3,119 $1,485 $1,040 $1,040 $891 Total Revenues $6,439 $4,078 $3,682 $3,591 $5,220 Ecuador median household income $4,500

14 Key Lessons Learned 1. Land tenure and community forest governance are essential to reverse deforestation and implement sustainable forestry. 2. Competing in the agricultural frontier with high opportunity costs requires a robust business structure. Company-Community Enterprise partnerships can achieve this. 3. High diversity forests (300+ tree species) require intensive silviculture study to develop basic forestry knowledge species, growth rates, silvics, etc. 4. Diverse forests often have low value because only a few species commercial value. Product innovation is essential to connect the forest to good markets that justify conservation. 5. Local manufacturing which generates many local jobs helps establish a strong local economy that competes with illegal logging. 6. Building a forest products enterprise requires considerable capital investment. A Company-Community partnership with professional management makes it easier to raise capital.

15 Next Steps -- Relevance of EcoMadera Experience 1. Partnering with Ministry of Environment to help them define a new sustainable forestry incentive program. 2. Partnering with Ecuadorian universities to establish a research agenda in forestry, wood products, and markets, to help strengthen sustainable forestry value chain. 3. Developing a training center to share lessons learned with other communities, and with foresters and forest products companies that want to work with forest communities. 4. Exploring other regions in Ecuador and in Peru to establish a similar business and conservation partnership with communities in the midst of deforestation. 5. Potential to be a replicable and scalable business and conservation model, with large companies partnering with community organizations.

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