Better Growth with Forests
Type of Publication: Research Report
Date of Publication: March 2016
Organizations: Tropical Forest Alliance 2020, put together by AlphaBeta
Tropical Forest Alliance 2020 published a Better Growth with Forest report that begins to show evidence that local economic development and forest protection is compatible and synergistic. Below are the key talking points of the report.
Meeting the rising demand for food and consumer goods has come at the expense of forests, with negative consequences for the climate, biodiversity, rainfall patterns and the livelihoods of local populations, among others. In response, an unprecedented level of commitment has been mobilised in the public, private, and social sector to removing deforestation from commodity supply chains.
A new study sponsored by the TFA2020 finds that these efforts don’t have to come at the expense of local economic growth and that indeed there is emerging evidence that local economic development and forest protection are both compatible and synergistic.
TFA 2020 Better Growth study finds that sustainable production processes are associated with a strongly positive economic impact, including local employment, incomes and wider economic growth.
These sustainable production processes represent a sizeable investment opportunity. Initial estimate suggests investment requirements to adopt a sustainable land use approach in tropical rainforest regions needs could be roughly $160 billion annually.
Yet to date sustainable land use approaches have relatively low visibility on the radars of investors. In many cases, there are attractive investment returns associated with these sustainable land use opportunities; past academic research has estimated that roughly 90 percent of opportunities are estimated to have returns with an IRR greater than 10 percent.