BUSINESS FOR SUSTAINABLE DEVELOPMENT ZIMBABWE (BCSDZ) 2014 ANNUAL CONFERENCE WILD GEESE LOGDE, HARARE, ZIMBABWE (NOVEMEBR 24 & 25, 2014) The diverse roles of Forests including mitigating Climate Change By Dr Joseph Kanyekanye Chairman – Timber Producers Federation of Zimbabwe & Group Chief Executive Officer – Allied Timbers Holdings
Introduction q. Resource rich country with arable land PLUS agric/industry link q Education – unquestionably Mugabe legacy q Real GDP growth not evident since 1990 with post 2009 recovery slowing down ( see index on next slide) q Timber industry composition: BTL, ATZ & Wattle make up 95% of commercial forestry: macroeconomic difficulties, settlers (strain of disease) q PICTURES STORY q. Constraints – I refuse
0 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Volume of Manufacturing Index, 1990 = 100 60 50 40 30 20 10
Forestry in Zimbabwe at a Glance 1 Exotic plantations The exotic plantation forestry industry accounts for most of the 3% contributed by forestry sector to the GDP. It is highly vertically integrated into timber production, processing, packaging and marketing and employs and used to employ 16, 000 people. Average annual timber consumption in the sector was 656, 000 m 3 2. Indigenous forests and woodlands Commercial timber production from indigenous forests and woodlands is based on Pterocarpus angolensis and Baikiaea plurijuga. Forests with these species are 5% of the country’s total land area. The total demand for indigenous roundwood timber in has declined to less than 22, 000 m 3. A statutory instrument bans the export of indigenous timber in the “round”. The instrument is also meant to promote local timber processing and employment creation but it seems to have had the opposite effect.
Presentation Format u u u u u Introduction Forestry in Zimbabwe at a glance What is climate change? Necessary Contradictions or Functional conflict? Inconvenient Truths Practical Climate Change Mitigation in Forestry u Energy u International supply networks u CDM u Creation of Champions u Government Supply Chain and Regulations What industry leaders must do A Call for Action u Supporting Climate change initiatives u Enhancing current Mitigation u Leading National Annual Agenda u Dealing with intellectual noise u Deepening Climate Change u Financial Mobilization Conclusion
What is climate change? 1 The term climate change is currently used to refer to any long term (e. g. decadal) variation in climate especially due to anthropogenic causes (i. e. emission of greenhouse gases CO 2, methane, nitrious oxide, flourinated gases) u Climate consists of the statistics of temperature, rainfall, wind, humidity, atmospheric pressure, and other meteorological elemental measurements in a given region over long periods u This is unlike weather, which is the present condition of these elements and their variations over shorter periods. u Climates can be classified according to the average and the typical ranges of different variables, most commonly precipitation and temperature. 1 Muchaponda (2012) – Adopting business models to climate change and human development, University of Cape town u
Necessary contradictions or Functional Conflict? “Obama promised that the US will reduce its green house emissions to at least 26% below the 2005 level by 2025. Xi (Jingping) promised more vaguely that China’s emissions would peak by 2030 or earlier (and by implication then start to decline)” 2 ( A 2 DEGREE GLOBAL TEMPERATURE INCREASE COULD LEAD TO A 38% FOOD PRODUCTION LOSS = “SEMI PERMANENT FAMINE” IN CHINA) “Functionally, oppression (climate change impact) is domesticating. To no longer be prey to its force, one must emerge from it and turn upon it. This can be done only by means of the praxis: reflection and action upon the world in order to transform it. ” 3 If we live as if it matters when it does not matter, then it does not matter but If we live as if it does not matter when it matters, then it matters. (Precautionary Principle)1 1 Muchaponda (2012) – Adopting business models to climate change and human development, University of Cape town Dyer, Zimbabwe Independent, November 12 to 27, 2014 3 Paulo Freire: Pedagogy of the Oppressed 2 Gwynne
INCONVINIENT TRUTHS SET 1 1. CLIMATE CHANGE ADAPTATIONS COST MONEY WITH A LONG TERM BENEFIT OFTEN DIFFICULT TO QUANTIFY WHEN FIRMS NOW RARELY LAST 10 YEARS 2. QERCS (QUANTIFIED EMISSION REDUCTION COMMITMENTS ) SHOULD BE ESTABLISHED FOR ALL DEVELOPED COUNTRY PARTIES IN TERMS OF THE BALI ACTION PLAN. WE ARE NOT MEASURING GREENHOUSE GAS (GHG) EMISSIONS! 3. TOBACCO INDUSTRY IN ZIMBABWE IS THE GREATEST
u INCONVINIENT TRUTHS SET 2 4. Faced with a choice of sustainability versus company survival : not so funny choices done often done 5. Lack of awareness of the impacts of climate change on water availability, productivity and business operations 6. Insufficient resources and expertise, especially for smaller enterprises 7. timber sector in ddd mode
Practical Climate Change Mitigation Energy Mini energy generation systems which run on local biomass produced by timber producers; BTL at Charter, All sawmill boilers use wood chips at ATZ and Wattle Alternative sources of energy such as solar but limited to isolated institutions but plans underway in some firms Timber frame housing: thermal insulation and less heat. Possibility of solar powered pole treatment plants Provision of free firewood for adjoining communities thereby avoiding hardwood use for cooking and warmth
Practical Climate Change Mitigation – International Supply Chains Ought to be embraced; work with them to grow large enough for economy and other neighbours Forest Stewardship Council Sustainability & COC Certification: Principles fine but note derogation for poisoning babboons, Costs and Unviable exchnage rate, USA market seems to want this. Eco-labelling to use market instruments to weed out timber from unviable and or illegal sources: TPF tried and failed, Saligna shows failure, Tobacco merchants not including this as input schemes for contract milling
Practical Climate Change Mitigation CDM (CDM) is a project-based mechanism designed to promote investment in projects that reduce or sequester emissions of green house gases in developing countries. China has used carbon revenues beyond specific projects to finance future climate-friendly investments The CDM has the potential to provide funds but has not delivered for Zimbabwe? ? ? . Old and/or new firms in certain sub-sectors such as energy could potentially harness resources from the CDM: Charcoal as a biofuel that can substitute for oil; Biomass power generation ATZ has 2 PINs but EMA fees scared investors; or building “clean” mini hydro power generators CDM and GEF needs a clear national agenda setting and implementation. Government need to involve private sector.
Practical Climate Change Mitigation –Champions needed The concept words of the day are green growth and low-carbon economy. . . Bold decicive action and political will needed One small mechanism which has created whole industries and jobs in other countries is recycling of waste: scrap metal but sitting on tonnes of this, sawdut as growing media for mushrooms, sawdust as feed stock for animals, MDF, OSB and particleboard/hardboard No burn forest land preparation policy Outgrower fibre programmes underpinned by a pulp mill funded by Climate Funds
Practical Climate Change Mitigation – Government Supply chains and Requlations • Incorporate tender credits for green firms • EMA must not charge Forestry companies: Polluters pays principle implies the harvester of green houses must be paid. . . its the forests!!! • Need for a local basic third party certification for mitigating climate change: a template for each sector is needed • Start measuring GHG emmissions • Methyl bromide stopped in forestry • Government can BAN use of indigenous hardwoods for tobacco curing for sustainable sources such as wattle or gum
Other forest climate change mitigation realities u u u u u Changing rainfall patterns affecting agriculture and reducing food security; (TREE PLANTING/SEQUESTRATION OF GREE HOUSE GASES/SUSTAINABILITY/ LONG TERM VIEW/ ALTERNATIVE SOURCES OF ENERGY THROUGH WOOD FIRED BOILERS AND CHARCOAL PRODUCTION/ FREE COMMIUNITY FIREWOOD ACCESS AND GRAZING Worsening water security and rising water stress; (PROTECTING CATCHMENT AREAS/ NO SILTATION/ MUTARE BEST WATER/NO STREAMBANK CULTIVATION) Shifting vector-borne diseases; ( LIMITED INCIDENTS IN PLANTATIONS/ SOME LOCAL PATHOGENS DETEST PINUS AND EUCALYPTUS SPECIES) Decreasing fish resources in large lakes due to rising temperature; (INCREASED FOREST COVER Rising sea level affecting low-lying coastal areas with large populations; (FORESTRY)
What leaders must do on Climate Change (Few wildly important interventions)? SUPPORTING CLIMATE CHANGE INTIATIVES üENHANCING CLIMATE CHANGE COMMUNICATION üDEVELOPING SECTORIAL NATIONAL CLIMATE CHANGE ANNUAL AGENDA üIMPROVING EFFICACY BY CUTTING INTELLECTUAL CLIMATE CHANGE “NOISE” ü
We desperately need Champions !!
ACTION 1: Supporting Climate Change Initiatives üIt is a global phenomenon found everywhere üClimate change policy should be mainstreamed into all government sector policies üGovernment must set up a national coordinating body for policy implementation activities among ministries, departments, research institutions, civic society, corporate sector and other stakeholders. üGovernment must develop a funding framework from the fiscus, which is complemented by partnerships with other stakeholders. üGovernment should invest in systematic climatic observation. The department of Meteorological services is key in providing national climatic data. Investment in technology for data collections and dissemination is critical for Zimbabwe.
üGovernment should seriously move with speed to come up with a policy that promotes the use of solar energy which is in abundance üGovernment must put in place legislation for measurement of carbon foot print. Legislative measures are needed for the inclusion of environmental accounting in corporate financial reporting system. Government incentives for best performers are essential for supporting such innovations. üPromotion on the use of clean/green fuels. Zimbabwe now has a bio‐diesel plant whose purpose is to produce bio‐diesel. Its full productivity should be realised through the supply of input raw materials needed from the agriculture sector. Adapted from EMA
Supporting Climate change Implications üPromote measurement of carbon foot print. Institutions should put measures include environmental accounting in their corporate financial reporting system. This policy can also promote paperless offices as a way to reduce the carbon foot print by companies. üBuilding blocks for policies must be market based principles
ACTION 2: Enhancing Current Climate Change initiatives üFree and open exchange üAvoid NGO curse of focussing on the weak; Create champions who have experience and skills in the sector üGet business leaders to lead sectors üColour code firms; Green compliant, Yellow partially compliant and Red non-compliant. Integrate with tax credits, preferential treatment at tenders with exclusion for red and yellow in some cases The total stock value of indigenous woodlands can be crudely estimated 33% of overall GDP - Mabugu R & Chitiyo M (2002)
An alternative view of climate change initiatives
ACTION 3: Leading National Annual Agenda üUsed extensively in Australia in the Aviation industry üGovernment makes a policy framework (facilitative policy regime) üBusiness sets up sectorial committees to run Sectorial NAA co-ordinated by government: allows fewer errors like in land reform and uses experts in the field who also need to be empowered üSectorial NAA committees become drivers and allow government to deal with complexities by having the final say üPriority areas and focus will be set up üUtilise retired experts from the west to work in Zimbabwe u u Forestry Sustainability Forest Plantation Area increase Biomass power generation Illegal settlements in plantations u u FSC Compliance Eco-labelling Inclusive business models Measurement of emissions “ Change begins with you. Please bring change” Inscription on a Mbare Scotch Cart
ACTION 4: Dealing with Intellectual “noise” ü Monthly workshops üComprehensive PR campaign involving business. government and civil society on merits üQERCs must migrate into daily language like “liquidity” üDebug the myth this is corporate social responsibility and/or “hesitant philanthropy” by saying climate change mitigation is an imperative not an optional university thesis. üEnforce climate change mitigation within government to avoid double standards that this is targeting private sector üSchemes must have anchor champions with skills in the sector üPublicise nominated firms and individuals excelling in a particular sector to debunk myth this export purposes only or multi-national
ACTION 5: Deepening Climate Change Mitigation ü Technology transfer üProcurement and franchising üOwnership üBoard composition üRed flagging for lucrative local SPB tenders üNew ventures must not have exceptions üUsing tax holidays for new ventures to fund climate change mitigation üColour coding to shoe compliance üUse of state enterprises to showcase climate change
ACTION 6: Financial Mobilisation üUrgent Workshop üMulti-lateral agencies üMoney is not everything but do not lose sight of it üGovernment must do a workshop on accessing Global Funds on Climate Change issues e. g. REDD, CDM and GEF should be put in place for supporting local level mitigation and adaptation interventions.
u. CONCLUSION q. Building blocks for policies must be market based principles: Business and the oldest profession both respond to the richest suitor not emotions only. q. Focus on incentives rather than punitive measures q. We need to conquer the minds first before promoting climate change mitigation q. Governments have the mandate to rule but they must ideally lead by consensus on climate change as industry is battling with a myriad of issues.
‘I am not smart, I spend more time on the problem than other people" - Albert Einstein THANK YOU
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