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The Green Granite Proposal REDD+ applying the “Swedish Forestry Model” In Tropical Countries

TBLI NORDIC 2015 - Niels Otto Torp Madsen - Re-Inventing REDD and Forestry Investments? Innovative Approaches & Case Studies

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Page 1: TBLI NORDIC 2015 - Niels Otto Torp Madsen - Re-Inventing REDD and Forestry Investments? Innovative Approaches & Case Studies

The Green Granite Proposal

REDD+ applying the

“Swedish Forestry Model” In

Tropical Countries

Page 2: TBLI NORDIC 2015 - Niels Otto Torp Madsen - Re-Inventing REDD and Forestry Investments? Innovative Approaches & Case Studies
Page 3: TBLI NORDIC 2015 - Niels Otto Torp Madsen - Re-Inventing REDD and Forestry Investments? Innovative Approaches & Case Studies

October 2005

×

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Page 4: TBLI NORDIC 2015 - Niels Otto Torp Madsen - Re-Inventing REDD and Forestry Investments? Innovative Approaches & Case Studies
Page 5: TBLI NORDIC 2015 - Niels Otto Torp Madsen - Re-Inventing REDD and Forestry Investments? Innovative Approaches & Case Studies

based on 44GtCO2e/year

Emissions from Fossil Fuels and Deforestation/Degradation, 2000 Data derived from WRI/CAIT database

Page 6: TBLI NORDIC 2015 - Niels Otto Torp Madsen - Re-Inventing REDD and Forestry Investments? Innovative Approaches & Case Studies

Data derived from World Resources Institute CAIT Analysis Tool

GHG Emissions from Land Use, Land-Use Change and Forestry (LULUCF), 2000

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Page 8: TBLI NORDIC 2015 - Niels Otto Torp Madsen - Re-Inventing REDD and Forestry Investments? Innovative Approaches & Case Studies

Strategy – Aceh Green by Gov’t of Aceh

Draw against Letter of Credit

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Energy produced from Swedish wood use

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Annual growth and annual felling

Source: Skogsstyrelsen

Page 16: TBLI NORDIC 2015 - Niels Otto Torp Madsen - Re-Inventing REDD and Forestry Investments? Innovative Approaches & Case Studies

An active forest management with high levels of growth captures carbon dioxide. The volume of growing stock in the Swedish forests have almost doubled during the past 90 years while felling has doubled. The increase is continuing.

Opportunity

Page 17: TBLI NORDIC 2015 - Niels Otto Torp Madsen - Re-Inventing REDD and Forestry Investments? Innovative Approaches & Case Studies
Page 18: TBLI NORDIC 2015 - Niels Otto Torp Madsen - Re-Inventing REDD and Forestry Investments? Innovative Approaches & Case Studies

Share of final energy use in Sweden 2011

BIOENERGY 120,3 TWh;

31,6%

Oil 113,9 TWh;

30,0%

Hydro power 56,6 TWh;

14,9%

Nuclear power

49,8 TWh; 13,1%

Coal 19,1 TWh; 5,0%

Fossil gas 11,3 TWh; 3,0%

Wind power 5,3 TWh; 1,4% Heat pumps

3,8 TWh; 1,0%

Page 19: TBLI NORDIC 2015 - Niels Otto Torp Madsen - Re-Inventing REDD and Forestry Investments? Innovative Approaches & Case Studies

80

90

100

110

120

130

140

150

160

170

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200

210

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1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

Bioenergy GDP Growth Climate Gas Emissions

Increased GDP and reduced emissions with more bioenergy

Page 20: TBLI NORDIC 2015 - Niels Otto Torp Madsen - Re-Inventing REDD and Forestry Investments? Innovative Approaches & Case Studies

The global potential of the Swedish forestry model – an intellectual experiment

•  Total emissions + 7.2 •  Global forestry on the lines of

Swedish model - 2.3 •  Stop to deforestation - 0.6 •  Halving of damage to forests

- 1.1 •  Total - 4.0 •  Absorption in the seas and vegetation - 3.2 •  Total 0

All of the values shown relate to billions of tonnes of C

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Energy

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Page 24: TBLI NORDIC 2015 - Niels Otto Torp Madsen - Re-Inventing REDD and Forestry Investments? Innovative Approaches & Case Studies

The Sumatran Tiger There are an estimated 100-400 remaining.

Orangutans An estimated 7,300 orangutans remaining

Sumatran Rhino An estimated 300 remain

The Sumatran Elephant An estimated 7000 remain in the wild

The Bornean Clouded Leopard An estimated 3000-7000 remain in Sumatra

Page 25: TBLI NORDIC 2015 - Niels Otto Torp Madsen - Re-Inventing REDD and Forestry Investments? Innovative Approaches & Case Studies
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Page 27: TBLI NORDIC 2015 - Niels Otto Torp Madsen - Re-Inventing REDD and Forestry Investments? Innovative Approaches & Case Studies

“Copy Paste Swedish Forestry Model” adapted to local conditions

We can start in Indonesia Aceh!

Page 28: TBLI NORDIC 2015 - Niels Otto Torp Madsen - Re-Inventing REDD and Forestry Investments? Innovative Approaches & Case Studies
Page 29: TBLI NORDIC 2015 - Niels Otto Torp Madsen - Re-Inventing REDD and Forestry Investments? Innovative Approaches & Case Studies
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Support needed and $...

-  Norway fund -  EU fund -  GEF -  Ministry of Foreign Affairs / Sida -  M u l t i n a t i o n a l D o n o r Organizations - 

Page 31: TBLI NORDIC 2015 - Niels Otto Torp Madsen - Re-Inventing REDD and Forestry Investments? Innovative Approaches & Case Studies

Green Rainforest Bonds

Forestry is Capital Intensive

Profitability is Required

Low financing cost is a must