combating climate change and reducing poverty through forestry
TRANSCRIPT
NICARAGUA Combating climate change and reducing poverty
through forestry
Global Landscape Forum Paris, France
05 Diciembre 2015
NICARAGUA
THE SOCIO-ECONOMIC CONTEXT
Paris, July, 2015
Investment record: More than 5 times 2006
Economic growth with macroeconomic stability
1-digit inflation and decreasing
5% average growth 2011-2013
Highest Economic Growth in Central America
Exports doubled between 2006 and 2012
Investment Boom
High International Reserves: 2.8 times the monetary base, allows free exchange and
currency stability
Export DinamismGDP Growth Rate 2007-2T 2014(Variation)
Central America Economic Growth(Percent change)
Hurrican Mitch
Foreign Direct Investment 1995-2014(Million of dollars)
Consumer Price Index 2012 - 2015(Accumulated Percentage Change)
Before GRUN
GRUN
Total Exports 2000-2016(Million of dollars)
4
Fewer unemploymentMore work: 41.3% more than in 2006
Formal employment growth: 72.5% more people
registered than in 2006
Fiscal StabilityIncreased work
Sustainable fiscal deficit Constant reduction of national debt
2014/2006: +72.5% (304,698 people)
Working people in 2006:2 089,800
2014/2006: +41.3%(+863,703 people)
Sustainable fiscal deficit at -1.5 in 2014
Fiscal Deficit, 2000-2014(Percentage of GDP)
Balance of Total Public Debt, 2005-2014(Percentage of GDP)
5
2001 2005 2009
45.8%
48.3%
42.5%
Extreme poverty measured by consumptionGeneral poverty measured by consumption
Poverty measured by income, poverty fell -10.6 percentage points and -15.7 in rural areas
-2.64
-2.05 -1.99
-1.30 -1.24 -1.17-1.07 -1.03
-0.91-0.79 -0.74 -0.72
-0.47-0.39
-0.20-0.10
0.61
-0.95
2.12
0.82 0.770.40
Declining income inequality in Latin America, by country: 2000-2011Annual % change in the Gini coefficient
Source: World Bank, 2013.
GINI income Nicaragua
2005 0.51
2009 0.46
GINI consumption Nicaragua
2005 0.41*
2009 0.37*
2010 0.35**
2011 0.34**
2001 2005 2009
15.1%
17.2%
14.6%
POVERTY AND INEQUALITY REDUCTION
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INVESTMENT BOOM
Nicaragua Honduras Costa Rica Guatemala El Salvador0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0 12.3
5.6 5.4
2.40.6
Ratio FDI/GDP in Central Amer-ica, 2013 (%)
2006 2007 2008 2009 2010 2011 2012 20132.0
4.0
6.0
8.0
10.0
12.0
14.0
4.25.1
7.6
5.3 5.9
10.0
12.2 12.3
Ratio FDI/GDP, 2006 to 2013 (%)
Investment PortfolioUS$ 10.9 billions by 2014
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THE GRAND INTEROCEANIC CANAL OF NICARAGUA
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GRAND INTEROCEANIC CANAL
MAIN OBJECTIVES
Overcome extreme poverty
Adaptation to climate change
by mass reforestation for ecosystem
resilience
Economic independence
Stretch Length
West Section (Rivas) 25.9 Km
Caribbean Coast (mainland)
90.8 Km
Length by land 116.7 Km
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Stretch LengthWest section 25.9 Km
East section 126.7 Km
Lake Nicaragua 106.8 Km
Stretches Pacífic and Caribbean 16.1Km
Total Length 275.5 Km
Stretch LengthLake Atlanta 35.9 Km
Lake Nicaragua 106.8 Km
Pacífic stretch 1.7 Km
Caribbean stretch 14.4 Km
Length by water 158.8 Km
Choice of route 4: It has superior economic cost, but it is the route with the lowest environmental and social impact
275.5Km Length, 280 m wide base, 30-33m depth
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DELIMITING AND TITLING OF INDIGENOUS TERRITORIES
Delimiting and titling of 23 indigenous territories:• 314 Communities• 37,657 Km2
• El Salvador= 21,040 km2• Belgium =30,528 km2• Holanda= 41,526 km2• +35,000 families• +200,000 people• 31% of the national territory
and +55% of the territory of the Caribbean Coast
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SETTLING THE AGRICULTURAL FRONTIER
BORDER TO BORDEER :• 50,000 TO 70,000 hectares deforested
annually • Followed by extensive cattlemen who
buy the land from the colonos• Reforestation in 2014 22,000 hectares• 400,000 volunteers inluding 350,000
high school students undertaking Ecology Course Field Work
• GOAL: HISTORICAL INFLECTION POINT IN WHICH MORE FOREST COVER AT LEAST PLANTED THAN FOREST COVER THE PREVIOUS YEAR
NICARAGUA
Paris, July, 2015
FORESTRY AND BAMBOO
INVESTMENT
Nicaragua Forestry ProgramBackground/Context
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3.9Mha forests lands – one third of country’s total land area63% forest lands within indigenous peoples’ territories3.7% historical average deforestation rate (2000-10)68 ecosystems threatened (20,000 flora and fauna species)1.1M highly vulnerable forest-dependent people
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FOREST INDUSTRY IN NICARAGUA
until 2002
20032004
20052006
20072008
20092010
20112012
0
5,000
10,000
15,000
20,000
25,000
30,000Evolution of forest plantation areas in
Nicaragua, 2003-2012(Hectares)
Cumulative area
2009 2010 2011 2012 20130.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
Exports (US$ millions)
Source: National Reforestation Chamber.
FOREST SECTOR INVESTMENT• MLR-FORESTAL PROJECT
(FORMER HEMCO FORESTRY).• NORTEAK PROJECT• PONSON • ECOPLANET BAMBOO• STAINABLE FOREST INDUSTRY
UTILIZATION OF CARIBBEAN PINE• PAISAN-CARIBBEAN COAST FOOD SECURITY
PROJECT• NICACARIBE• ENDE-REDD+ WITH FCPF• OTHERS- WB, IADB, SWISS COOPERATION, GEF,
ADAPTATION FUND
Establecimiento de Obras de Conservación de Suelo y agua
Establecimiento de Frutales
Establecimientode café
Plantación de café ecoforestal
Árboles en potrero
Establecimiento de Pasturas Mejoradas
(pasto de corte)
Sistemas Agroforestales
Árboles con cultivos limpios. Café Eco forestal Silvo pastoriles
Sistemas de Restauración Ambiental para el manejo del paisaje.
Manejo de bosques.
Obras de prevención mitigación de desastres naturales.
Establecimiento de Plantación energética
Manejo de Bosque de Pino
Manejo de la Regeneración Natural del bosque de Pino
Diques de MaderaDiques de Piedra
Program highlights
• Great commitment to emission reductions– The program will reduce deforestation from 3.27% to 1.6% (historic
level of the deforestation rate between 2000-2010)
• Contributes to forest-based adaptation– Nicaragua is the 4rd country in the world most affected by extreme
climate events between 1994 and 2014 (German Watch)
• Supports development in poor rural areas– Integrates existing investments in rural development– Supports the economy of the historically neglected Caribbean Coast
Regions (RACCN and RACCS)
• Builds on legally recognized indigenous & afrodescendent territories and existing institutions– Indigenous & Afrodecendant territories– Regional Autonomous Assembies– Territorial Governments – Forest Development Fund (FONADEFO)
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20
Nicaragua Forestry Emission Reductions
Actions Area under Mngt. (Mha)
Annual area (Mha)
Type of projection
Cumulative ERs in 10
years (MtCO2e)
Cumulative ERs in 5 years
(MtCO2e)
Cumulative ERs in 5
years(70% effect.)
(MtCO2e)Actions to avoid deforestation
0.8 0.10 Accumulated 21,61 12,27 8,58
Annual 2,16 2,45 1,71
Actions to improve carbon reserves
0.4 0.04 Accumulated 28,3 7,41 5,18
Annual 2,83 1,48 1,03
Total Actions of ER-P
1,2 0.14 Accumulated 50,06 19,68 13,77
Annual 5,00 3,93 2,75
Total offered to the Carbon Fund after 20% discount 11,02
The ER-Program will reduce by half the annual historic rate of deforestationwith a 70 percent effectiveness
Total ERs offered to the Carbon Fund after 20% uncertainty discount: 11.02MtCO2e
• Watersheds management– Program activities will be located in 13/21 priority
watersheds, with coverage of 117,420 km², 90% of national territory.
– Existing arrangements for watershed management will be strengthened
• Increased resilience of the rural poor’s livelihoods – Natural and financial capital will be strengthened,
which will contribute to poverty alleviation– Capacity for natural resource management will be
strengthened
• Biodiversity conservation– The-Program will strengthen existing efforts to
monitor key threatened flora and fauna species. 21
Non-carbon benefits
The prioritizes three non-carbon benefits
• Reduction of 11 million tons of CO2 eq: in 5 years in 7 million hectares of tropical rainforest of the Caribbean Coast of Nicaragua.
• Payments for results in the forestry sector for CO2 sequestration up to US$55 million, benefiting a population of one million people; mostly indigenous in the rural sector.
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Forest Carbon Partnership Facility
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Thanks
All pictures in this presentation are courtesy of Bruno Locatelli