Dar es Salaam, 9 July 2015 – Deforestation in Tanzania could cost the national economy 5,588 billion Tanzanian Shillings (US$3.5 billion, based on 2013 exchange rates) between 2013 and 2033 on current trends, highlighting the importance of investing in the forestry sector to alleviate poverty and boost growth, according to a new report released today. 

 report-02Forest ecosystems in the transition to a green economy and the role of REDD+ in the United Republic of Tanzania took into account the market value of timber resources as benefits that arise from deforestation, and costs in terms of lost timber forest products in the future, as well as other forest ecosystem services that will be lost as a result of deforestation.

“Forests provide a whole host of ecosystem services to national economies that are not captured in national development planning, and this latest assessment, on Tanzania, provides further evidence of the economic damage that can be wrought when we do not appreciate the full value of nature,” said UN Under-Secretary-General and UNEP Executive Director Achim Steiner.

“Implementation of REDD+, which goes beyond deforestation and forest degradation to include the role of conservation, sustainable management and enhancement of forest carbon stocks, can be an important vehicle for Tanzania, and other nations, to transition to an economic model based on reduced deforestation and increased investment in the sustainable use of forest resources.”

Loss of forest ecosystem services such as water regulation can have adverse impacts on the value added of other sectors such as agriculture, tourism and energy. For example, more irregular water availability due to deforestation can impact agricultural output or lead to higher costs for hydroelectric utilities. These costs are not incurred by the forestry sector, but in the Gross Domestic Product (GDP) figures of other sectors. Other services, such as biodiversity, are currently not included in national accounts.

The report also looked at the costs and benefits of deforestation when taking into account only forest products compatible with the System of National Accounts (SNA). It found that the present value of net losses from deforestation for the value added of the forestry sector is estimated to be 273 billion shillings (US$171 million) over the next 20 years – calculated by comparing the one-off benefits of deforestation, which come in at 147 billion shillings, with actual economic costs, including linkages with other sectors, of 420 billion shillings.

This report – by the Tanzania Forest Services, in collaboration with the United Nations Environment Programme (UNEP) under the UN-REDD Programme to reduce deforestation and forest degradation, and the Centre for Environmental Economics and Policy in Africa – based its analyses on the annual deforestation rate of at 372,816 hectares per year between 1995 and 2010, an estimate provided by the National Forest Monitoring and Assessment 2014.

The report provides an economic rationale for Tanzania to invest in more sustainable use and conservation of its forest assets by showing that the one-off financial benefits of deforestation, mainly from the sale of timber, are outstripped by the long-term losses. Some of these losses are compatible with the SNA and can be reflected in GDP.

The report also shows that investments in the forestry sector to stimulate output lead to higher rural incomes than equal investments in the agricultural and wood paper printing sectors, with clear implications for poverty reduction. This presents a case for the government to tackle the direct and underlying drivers of deforestation, and transit to an economic model that stimulates sustainable use and conservation of forest ecosystems by implementing REDD+. 

The Tanzanian report is part of a range of activities by the UN-REDD Programme to support Tanzania by enabling it to build the economic case for sustainable management and conservation of the country’s forest ecosystems as part of REDD+ implementation.

The analysis provides insights and recommendations for government authorities on how to tackle the rising costs of deforestation, including:

Similar national forest valuation studies have been completed for Kenya, Panama and Zambia, and UNEP is currently working with the Governments of Nepal, Ethiopia and Indonesia. A synthesis combining the findings of this work will be released later this year. 


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About UN-REDD and REDD+

The UN-REDD Programme is the United Nations collaborative initiative on Reducing Emissions from Deforestation and forest Degradation (REDD) in developing countries. The Programme was launched in 2008 and builds on the convening role and technical expertise of the Food and Agriculture Organization of the United Nations (FAO), the United Nations Development Programme (UNDP) and the United Nations Environment Programme (UNEP). REDD is an effort to create a financial value for the carbon stored in forests, offering incentives for developing countries to reduce emissions from forested lands and invest in low-carbon paths to sustainable development. REDD+ goes beyond deforestation and forest degradation, and includes the role of conservation, sustainable management of forests and enhancement of forest carbon stocks. The Tanzania UN-REDD National Programme lasted from 2010 until December 2013, and assisted Tanzania in the preparation and implementation of its national REDD+ strategy. For more information, visit http://www.un-redd.org/

 


 

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