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Why reforestation efforts are necessary for vulnerable communities: Deforestation led by human activities is an imminent threat to the environment and the global carbon cycle. The destruction can disrupt water cycles, leading to decreased precipitation and reduced river flow. The Amazon rainforest is particularly vulnerable, with research indicating that at least 80% of its trees are needed to maintain the hydrological cycle. Deforestation in the tropics has already led to a 10% reduction in precipitation over the Amazon and an even higher reduction in the South Asian Monsoon region.
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Reforestation could help reverse the impact: Reforestation can benefit climate-vulnerable areas by enhancing their resilience to natural disasters and mitigating climate change impacts. Trees play a role in stabilizing soil, reducing erosion, and preventing landslides, which are common issues in vulnerable regions. Their root systems help anchor the soil, while their canopies slow down rainfall, reducing runoff and the risk of floods.
And more: Reforestation can also create natural barriers against strong winds and storms. Replanting trees could reduce greenhouse gas concentration which mitigates global warming in climate-vulnerable areas that are more susceptible to rising temperatures and extreme weather events.
In perspective: The Amazon rainforest — the world’s largest — is home to an estimated 15k tree species, 3k fish species, and 1.3k bird species. Despite this incredible richness, deforestation has claimed around 17% of its area. Preserving the rainforest could help bring in USD 8.2 bn annually with revenue, including returns from sustainable industries operating within the rainforest, like rubber and timber. This is against an annual loss of USD 422 mn if deforestation continues in the rainforest.
Tropical rainforests are significantly more efficient at capturing carbon dioxide than boreal and temperate forests combined, according to the 2023 Atlas of Sustainable Development Goals by the World Bank. Deforestation caused by factors like logging and wildfires has released an average of 8.1 bn tons of CO2 annually over the past two decades — nearly half the CO2 that forests remove from the atmosphere, severely undermining the forests’ ability to remove CO2, according to the data.
There’s more than one path to regeneration: While tree-planting initiatives have gained popularity, they can sometimes do more harm than good, according to a study (pdf) published in Nature Journal. Monocultures, or planting only one type of tree, can cause ecosystem imbalances, reducing biodiversity and making forests more susceptible to diseases. A more informed approach that considers the deep connections between trees, people, animals, and microbes is needed. Some call this approach “natural regeneration,” where forests are allowed to regrow as naturally as possible. This includes using local knowledge and ensuring that tree-planting efforts are well-researched and implemented.
But no clear golden rule: Scientists explored the cost-effectiveness and climate benefits of two reforestation methods, tree plantations, and natural regeneration, according to research (pdf) published in Nature. Tree plantations involve planting and later harvesting trees, generating revenue from timber sales, while natural regeneration allows forests to regrow naturally, with revenue primarily from carbon credits. The study found no clear winner between the two methods, suggesting a mix of both is necessary for optimal climate benefits.
Some efforts are underway: The Great Green Wall project aims to reforest a belt of land across the Sahara Desert, potentially preventing desert expansion and increasing arable land. Another project — Western Australia’s Gondwana Link — reconnects small patches of forest to minimize species’ risk of extinction.
The Tropical Mountain Alliance (TMA) has successfully restored 427 acres of forest in coastal Ecuador since 2008, utilizing a variety of reforestation methodologies that integrate mixes between the above two main approaches. These methods range from Natural Regeneration (NR), which includes no human intervention, relying on the ecosystem’s innate ability to heal itself, to Assisted Natural Regeneration (ANR), where minimal human intervention helps accelerate forest recovery. TMA’s efforts have also included Enrichment Planting (EP), which includes selectively planting certain trees to fill in spatial gaps or replenish threatened species, and Plantation-style reforestation (PS), which is the most aggressive and expensive intervention for severely degraded sites.
Delayed planting is better for cattle pastures: Another approach highlighted is Delayed Planting (DP), in which planting the native trees is postponed after an initial period of native vegetation that creates the needed soil and microclimate conditions for reforestation. This method has proven particularly effective in reforesting cattle pastures, significantly reducing labor costs and increasing seedling survival rates.
ALSO- Nurse Cropping (NC) is also another method that attempts to “hack nature” to create long-term favorable conditions, and it involves planting fast-growing pioneer species alongside slower-growing target species.
Biodiversity is also being tackled: TMA’s reforestation strategies also incorporate Applied Nucleation (AN), which plants small clusters of trees to serve as focal points for natural forest succession while depending on insects and animals as seed dispersers and pollinators, and Farmer Managed Natural Regeneration (FMNR), a sustainable land restoration technique. These methods, along with Permaculture and Regenerative Agroforestry, aim to restore ecosystems, increase biodiversity, and achieve sustainable food production. TMA’s comprehensive approach demonstrates the potential for innovative reforestation techniques to combat deforestation and promote environmental sustainability.
Funding reforestation programs has come a long way: Traditional financial institutions have long deemed reforestation projects unbankable, said the Green Fund Alliance’s co-founder Tai Aracen. The primary challenges include long time horizons for tree maturity, high upfront costs, perceived high risks from factors like forest fires and pests, and the complexity of measuring ecosystem impacts. These hurdles created a significant funding gap, making it difficult for reforestation projects to attract necessary investments. Blended finance models address that by combining public, private, and philanthropic capital. These models reduce risks and enhance the attractiveness of reforestation projects for commercial investors.
The World Bank is financing reforestation efforts: The World Bank also partnered with HSBC to structure a USD 200 mn outcome bond for Mombak’s – a Brazilian company focused on large-scale native reforestation projects – efforts of re-establishing around 25 forests in the Brazilian Amazon region. The project will plant over 30 mn trees of over 100 native species, covering 70k acres. The carbon credits generated by these projects will be sold through spot market sales and offtake agreements, partially linking the bond’s financial returns to measurable environmental outcomes.
Rolling out outcome bonds: The lender also launched the USD 225 mn Amazon reforestation-linked outcome bond to support reforestation efforts in the Amazon. Maturing in 2033, this 9-year bond links investors’ returns to measurable reforestation outcomes. The bond also mobilized approximately USD 36 mn in additional capital for Mombak. The bond guarantees a lower return than regular World Bank issuances with the differential supporting reforestation projects, the bank said.
Oman + Iraq have their own reforestation plans: Oman completed 90% of the first phase of the Oman Green Belt Project — which aims to plant 45k trees in Dhofar by the end of the year. The reforestation efforts — which come as part of a bigger plan to plant 10 mn wild trees in the country — target areas already affected by desertification and low vegetation with plans to expand to new sites in future phases. Iraq is seeking to raise international aid of around USD 100 mn to launch reforestation efforts and bolster food security.
There are other global efforts to address deforestation: The European Commission sealed a provisional agreement in 2022 to reject products that come from deforested lands. This includes coffee, beef, palm oil, timber, cocoa, rubber, charcoal and soy — generally in their pure form, but also including their derivatives. The commodities and products that fall under this category will no longer be imported or sold in the EU.
