Role of Brazilian Amazon protected areas in climate change mitigation.

Protected areas (PAs) now shelter 54% of the remaining forests of the Brazilian Amazon and contain 56% of its forest carbon. However, the role of these PAs in reducing carbon fluxes to the atmosphere from deforestation and their associated costs are still uncertain. To fill this gap, we analyzed the effect of each of 595 Brazilian Amazon PAs on deforestation using a metric that accounts for differences in probability of deforestation in areas of pairwise comparison. We found that the three major categories of PA (indigenous land, strictly protected, and sustainable use) showed an inhibitory effect, on average, between 1997 and 2008. Of 206 PAs created after the year 1999, 115 showed increased effectiveness after their designation as protected. The recent expansion of PAs in the Brazilian Amazon was responsible for 37% of the region's total reduction in deforestation between 2004 and 2006 without provoking leakage. All PAs, if fully implemented, have the potential to avoid 8.0 +/- 2.8 Pg of carbon emissions by 2050. Effectively implementing PAs in zones under high current or future anthropogenic threat offers high payoffs for reducing carbon emissions, and as a result should receive special attention in planning investments for regional conservation. Nevertheless, this strategy demands prompt and predictable resource streams. The Amazon PA network represents a cost of US$147 +/- 53 billion (net present value) for Brazil in terms of forgone profits and investments needed for their consolidation. These costs could be partially compensated by an international climate accord that includes economic incentives for tropical countries that reduce their carbon emissions from deforestation and forest degradation.

Balancing conservation and economic sustainability: the future of the Amazon timber industry.

Logging has been a much maligned feature of frontier development in the Amazon. Most discussions ignore the fact that logging can be part of a renewable, environmentally benign, and broadly equitable economic activity in these remote places. We estimate there to be some 4.5 +/- 1.35 billion m(3) of commercial timber volume in the Brazilian Amazon today, of which 1.2 billion m(3) is currently profitable to harvest, with a total potential stumpage value of $15.4 billion. A successful forest sector in the Brazilian Amazon will integrate timber harvesting on private lands and on unprotected and unsettled government lands with timber concessions on public lands. If a legal, productive, timber industry can be established outside of protected areas, it will deliver environmental benefits in synergy with those provided by the region's network of protected areas, the latter of which we estimate to have an opportunity cost from lost timber revenues of $2.3 billion over 30 years. Indeed, on all land accessible to harvesting, the timber industry could produce an average of more than 16 million m(3) per year over a 30-year harvest cycle-entirely outside of current protected areas-providing $4.8 billion in returns to landowners and generating $1.8 billion in sawnwood sales tax revenue. This level of harvest could be profitably complemented with an additional 10% from logging concessions on National Forests. This advance, however, should be realized only through widespread adoption of reduced impact logging techniques.

Illegal logging as a disincentive to the establishment of a sustainable forest sector in the Amazon.

Brazil recently began granting timber concessions in public forests to promote sustainable forest use. The effectiveness of this strategy hinges on the design and implementation of the concessions themselves as well as their competitive position within the logging sector as a whole. There is, however, a lack of information on the competitive interaction between legal and illegal logging and its effects on concessions profits. We address this knowledge gap by using a spatially explicit simulation model of the Amazon timber industry to examine the potential impact of illegal logging on timber concessions allocation and profits in a 30-year harvest cycle. In a scenario in which illegal logging takes place outside concessions, including private and public "undesignated" lands, concession harvested area would decrease by 59% due to competition with illegal logging. Moreover, 29 out of 39 National Forests (≈74%) would experience a decrease in harvested area. This "leakage" effect could reduce concession net rents by up to USD 1.3 Billion after 30 years. Federal and State "undesignated" lands, if not adequately protected, could have 40% of their total volume illegally harvested in 30 years. Our results reinforce the need to invest in tackling illegal logging, if the government wants the forest concessions program to be successful.

Brazil's Market for Trading Forest Certificates.

Brazil faces an enormous challenge to implement its revised Forest Code. Despite big losses for the environment, the law introduces new mechanisms to facilitate compliance and foster payment for ecosystem services (PES). The most promising of these is a market for trading forest certificates (CRAs) that allows landowners to offset their restoration obligations by paying for maintaining native vegetation elsewhere. We analyzed the economic potential for the emerging CRA market in Brazil and its implications for PES programs. Results indicate a potential market for trading 4.2 Mha of CRAs with a gross value of US$ 9.2±2.4 billion, with main regional markets forming in the states of Mato Grosso and São Paulo. This would be the largest market for trading forests in the world. Overall, the potential supply of CRAs in Brazilian states exceeds demand, creating an opportunity for additional PES programs to use the CRA market. This expanded market could provide not only monetary incentives to conserve native vegetation, but also environmental co-benefits by fostering PES programs focused on biodiversity, water conservation, and climate regulation. Effective implementation of the Forest Code will be vital to the success of this market and this hurdle brings uncertainty into the market. Long-term commitment, both within Brazil and abroad, will be essential to overcome the many challenges ahead.

Interactions among Amazon land use, forests and climate: prospects for a near-term forest tipping point.

Some model experiments predict a large-scale substitution of Amazon forest by savannah-like vegetation by the end of the twenty-first century. Expanding global demands for biofuels and grains, positive feedbacks in the Amazon forest fire regime and drought may drive a faster process of forest degradation that could lead to a near-term forest dieback. Rising worldwide demands for biofuel and meat are creating powerful new incentives for agro-industrial expansion into Amazon forest regions. Forest fires, drought and logging increase susceptibility to further burning while deforestation and smoke can inhibit rainfall, exacerbating fire risk. If sea surface temperature anomalies (such as El Niño episodes) and associated Amazon droughts of the last decade continue into the future, approximately 55% of the forests of the Amazon will be cleared, logged, damaged by drought or burned over the next 20 years, emitting 15-26Pg of carbon to the atmosphere. Several important trends could prevent a near-term dieback. As fire-sensitive investments accumulate in the landscape, property holders use less fire and invest more in fire control. Commodity markets are demanding higher environmental performance from farmers and cattle ranchers. Protected areas have been established in the pathway of expanding agricultural frontiers. Finally, emerging carbon market incentives for reductions in deforestation could support these trends.