Past efforts

Limited resources

Forces behind rainforest loss

Addressing deforestation

Poor farmers:
Poor farmers are simply trying to put food on the table for their families. A better approach to addressing the needs of the rural poor may be improving and intensifying currently existing agricultural projects and promoting alternative cultivation techniques—notably permaculture. Permaculture adds a mix of crops to the farmer's palette that both enables the farm to diversify his or her income stream and enhance degraded soils by restoring nutrients. An added benefit of such techniques is that they maintain forest systems, soils, and biological diversity at a far higher level than do conventional agricultural approaches. As long as such fields are adjacent to secondary and old-growth forest, many species will continue to thrive.

One promising area of research looks at ancient societies that lived in the Amazon rainforest before the arrival of Europeans in the 15th century. Apparently these populations were able to enrich the rainforest soil, which is usually quite poor, using charcoal and animal bones. By improving soil quality, large areas of the Amazon that have been deforested could be used to support agriculture. This could help reduce pressure on rainforest areas for agricultural land. Further, the "terra preta" soil could be used to help fight global warming since it sequesters carbon that would otherwise contribute to global warming.

A second important part of aiding poor farmers is helping them gain formal title to their land. Right now, in places where it is difficult to gain ownership rights to land and where land is relatively open and abundant, there is little incentive to maintain or improve holdings. Once local people have a stake in the land they are farming, they will have an interest in using it efficiently instead of moving on to a new area of forest once soils are prematurely exhausted.

The creation of credit facilities for poor farmers to both save their earnings and borrow in times of need is also important to improving their quality of life. Micro-credit facilities can provide significant economic benefits to the local economy while bringing dignity to and promoting entrepreneurship among local people.

Finally, improved access to markets is important in enabling farmers to get their agricultural products. Improved access can be a doubled-edged sword if it means increased road-building, which often spurs further deforestation. Any infrastructure improvements should be carefully planned to minimize the future impact on remaining ecosystems.

Industrial/commercial developers:
Thus far it has proved difficult to apply the same permaculture agricultural techniques mentioned above to industrial operations. As currently practiced, large-scale agriculture is typically quite destructive of native ecosystems and does not maintain biodiversity at levels commensurate with adjacent forest areas. Incremental steps like the use of natural pest control and fertilizers can help reduce pollution caused by agricultural operations, while leaving strips of forest as corridors linking sections of forest helps moderate biodiversity losses.

Sustainable logging, while possible, has met resistance from the timber industry for its lack of efficiency relative to traditional harvesting methods, and it remains controversial among conservationists as to its impact on the environment. Illegal logging and counterfeit labeling are major obstacles facing sustainable forest management for timber, but in time the development of higher yielding timber plantations established on degraded non-forest lands will help alleviate pressures on natural forests.

Restoring and rehabilitating ecosystems

Funding rainforest conservation efforts

• Payments for ecosystem services—Hope for avoiding the worst outcomes in the tropics increasingly rests on the belief that people will soon pay for the services provided by healthy rainforests. These services—which include biodiversity maintenance, rainfall generation, carbon sequestration, and soil stabilization, among others—have traditionally been undervalued by markets, but there are signs that the situation is changing. In recent years the idea of compensating tropical countries for the carbon stored in their forests has gained traction. Known as REDD+ (Reducing Emissions from Deforestation and Degradation), the approach is being pushed by entities ranching from the World Bank, to the U.N., to conservation groups, to states and municipalities. Even indigenous groups are experimenting with REDD+ projects. At a conceptual level, REDD+ operates as follows: tropical countries receive payments for reducing deforestation and forest degradation rates below a historic, mutually agreed-upon baseline. The payments go toward activities that reduce deforestation, whether its creating alternative livelihoods to slash-and-burn agriculture, subsidizing industrial agricultural expansion on degraded grasslands instead of forests, or providing health care to communities that normally depend on illegal logging to pay for medicine. While the idea sounds simple, in reality it is rather complex due to uncertainties on land rights, concerns that stopping deforestation in one place will only drive it elsewhere, worries about fairness and corruption, and controversies over the origin of the funds. Some believe that carbon offsets — whereby instead of reducing its own greenhouse gas emissions emissions, a polluter (e.g. a power company) pays another entity (e.g. a collective of poor farmers) to reduce its emissions (e.g. halting deforestation for small-scale agriculture) — should fund REDD+. Others balk at this approach and instead REDD+ should be funded by traditionally aid models, under which taxpayers in countries like Australia, Germany, and the United States foot the bill for rainforest conservation in places like Papua New Guinea, Congo, and Ecuador. Some argue for something in between known as hybrid models. Of course carbon is just one of many services afforded by forests. Some analysts believe water generated by rainforests may have an even higher value than carbon. In fact, Brazil has started valuing parts of the Amazon based on the rainfall it generates for agricultural region and the contribution to hydroelectric dams.
• Commodity roundtables—In a similar vein, pricing carbon emissions into agricultural production could generate funds for conservation while discouraging deforestation. The idea is that agricultural producers who abide by certain standards that reduce carbon emissions — like avoiding deforestation — would see higher prices for their products or receive preferential market access, like reduced tariffs. Meanwhile producers who continue to clear forests would be charged for the associated emissions. The approach is not without precedent — several countries, including Indonesia, have deforestation charges.
• Ecotourism—Ecotourism can fund efforts both through park entrance fees and employing locals as guides and in the handicraft and service sectors (hotels, restaurants, drivers, boat drivers, porters, cooks). Many lodges in and around protected areas charge a daily fee to visitors which goes toward supporting the forest.
• Bio-prospecting fees—Rainforest countries can earn revenue by allowing scientists to develop products from a country's native plant and animal species. The pioneer in this area was Costa Rica, which entered into an agreement with the American pharmaceutical company, Merck, to look for plants with potential pharmaceutical applications. Under the agreement, a portion of the proceeds from compounds that do prove commercially valuable will go to the Costa Rican government, which has guaranteed that some of the royalties will be set aside for conservation projects. Similarly, in 2001 Givaudan, a Swiss fragrance and flavor company, sent a team to look for new exotic smells and flavors in Madagascar. Following their survey, Givaudan researchers "reconstituted" 40 aromas that could be used in commercial products. The company has agreed to share a portion of the profits from these products with local communities through conservation and development initiatives. However such approaches have been challenged by questions over intellectual property and compensation for native communities. The market has also proved smaller than originally hoped.
• Corporate sponsorship—Corporations have been a bit slow in "adopting" parks, but they have the money and a marketing-driven interest in taking a closer look at such schemes. One possible approach was proposed in 2004 Eugene Linden, Thomas Lovejoy, and J. Daniel Phillips in a commentary for Foreign Affairs. In the editorial, they call for dividing tropical rainforests into blocks and then soliciting funding commitments from international environmental groups, development institutions, corporations, and other credible donors. There would be a bidding process, after which an entity would take responsibility for maintaining forest cover and forest health in each block of the entire forest system. This plan could be a road for corporations to become involved in conservation as a public-relations/marketing tool. A given percentage of the proceeds could be put into a trust fund with the payout ear-marked for ongoing conservation and sustainable development programs.

Further steps once funding is in place

• Expand protected areas—As many areas should be protected as soon as possible. If protected areas can be developed in such a manner to generate income for local communities, an increasing number of parks should theoretically create more economic benefits for a greater share of the population.
• Increase surveillance of and patrols in protected areas—This can be done at a reduced cost if local communities benefit from the success of the park. If locals have a vested interest (i.e. are compensated via entrance fees, hired as guides, make handicrafts to sell to tourists, and recognize the value of ecosystem services), they will want to watch the park so that the source of their income is not diminished. Community surveillance is the most effective way to patrol a protected area, though it will probably be necessary to have park staff conduct patrols as well. Guides should be trained as well to keep watch for activities that are damaging to the ecosystem and report suspicious activities.
• Build research facilities for training local scientists and guides—Boosting intellectual capital can introduce a new dynamic to an economy, especially one based on resource extraction. Unlocking the value of forests provides a great opportunity for a country to capitalize on its natural assets. For example, rainforests are home to many plants with potential medicinal value, yet it is usually American or European companies that develop drugs based on these natural compounds. Why can't it be local scientists unlocking the value of these natural treasures and local companies turning them into commercial products? Beyond medicine, there are opportunities to improve crop yields, reduce fertilizer and pesticide use, and mitigate soil erosion.
• Establish programs that promote sustainable use—Programs that promote sustainable use are key to elevating the standard of living for people living around protected areas. Not all members of a community will see the direct benefits from employment in the service or production sector, and many people will still rely on traditional use of the natural resources around them. These resources must be used in a more effective manner to maximize productivity and minimize the impact on the environment.
• Compensate displaced people—The establishment of protected areas has often displaced local people, making them enemies of conservation and depriving them of their basis human rights. Therefore it is critical that new protected areas involve a process of "free prior informed consent" (FPIC) with stakeholders that could be affected. In cases where local communities decide to move, it is important that they are fairly compensated for abandoning their existing livelihood and homes. While direct cash payouts is an option, a better strategy may be to provide these displaced people with long-term income possibilities through training in improved agricultural techniques or alternative crops.
• Involve indigenous people, where they still exist, in park management. Indigenous people know more about the forest than anyone and have an interest in safeguarding it as a productive ecosystem that provides them food, shelter, and clean water. Research has found that in some cases, "indigenous reserves" may actually protect rainforest better than national parks in the Amazon. [More in our interview with Mark Plotkin and the Conservation Corridors Project.]
• Promote ecotourism—Ecotourism is perhaps the best long-term approach for sustaining some tropical economies. Planners should seek to minimize the environmental impact and maximize the benefits for local communities.
• Ensure economic success does not result in increased deforestation—As rural populations begin to reap benefits from conservation-related activities, it is important that they not reinvest this income in activities that result in further deforestation. Traditionally, in many villages, the more money someone made, the more money was put back into land clearing. Rural banks and savings institutions are virtually unknown in many parts of the developing world. Such facilities, which would enable both saving and lending, could rapidly change the lives of millions through increased entrepreneurship and the ability to put away money for the future.
• Encourage entrepreneurship—Encouraging entrepreneurship through such a micro-credit strategy could pay significant dividends for a country's economy as a whole. Studies in developing countries have found that entrepreneurial skills among the poor are actually quite high when people are given access to capital. Stimulating entrepreneurship through small, low-cost loans is possibly a better approach than handouts, which may do little more than breed dependency and reduce human dignity.

Looking toward the future, tough choices