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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
Resource rich country with arable land
PLUS
agric/industry link
 Education – unquestionably Mugabe legacy
 Real GDP growth not evident since 1990 with post
2009 recovery slowing down ( see index on next slide)
 Timber industry composition: BTL, ATZ & Wattle make
up 95% of commercial forestry: macroeconomic
difficulties, settlers (strain of disease)
 PICTURES STORY
Constraints – I refuse
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Volume of Manufacturing Index, 1990 = 100
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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 656,000m3
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 22,000m3. 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
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Introduction
Forestry in Zimbabwe at a glance
What is climate change?
Necessary Contradictions or Functional conflict?
Inconvenient Truths
Practical Climate Change Mitigation in Forestry
 Energy
 International supply networks
 CDM
 Creation of Champions
 Government Supply Chain and Regulations
What industry leaders must do
A Call for Action
 Supporting Climate change initiatives
 Enhancing current Mitigation
 Leading National Annual Agenda
 Dealing with intellectual noise
 Deepening Climate Change
 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 CO2, methane, nitrious oxide, flourinated gases)
 Climate consists of the statistics of temperature, rainfall, wind,
humidity, atmospheric pressure, and other meteorological
elemental measurements in a given region over long periods
 This is unlike weather, which is the present condition of these
elements and their variations over shorter periods.
 Climates can be classified according to the average and the
typical ranges of different variables, most commonly
precipitation and temperature.
1Muchaponda (2012) – Adopting business models to climate change and human development, University of Cape
town
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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
(2012) – Adopting business models to climate change and human development, University of Cape town
2Gwynne Dyer, Zimbabwe Independent, November 12 to 27, 2014
3Paulo Freire: Pedagogy of the Oppressed
1Muchaponda
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 THREAT TO
INDIGENOUS FORESTS: SAA WILL
NOT EVEN ADDRESS 10% OF THE
PROBLEM
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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
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
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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
ENHANCING CLIMATE CHANGE
COMMUNICATION
DEVELOPING SECTORIAL NATIONAL CLIMATE
CHANGE ANNUAL AGENDA
IMPROVING EFFICACY BY CUTTING
INTELLECTUAL CLIMATE CHANGE “NOISE”
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We desperately
need
Champions !!
ACTION 1:Supporting Climate Change Initiatives
It is a global phenomenon found everywhere
Climate change policy should be mainstreamed into all
government sector policies
Government must set up a national coordinating body for policy
implementation activities among ministries, departments, research
institutions, civic society, corporate sector and other stakeholders.
Government must develop a funding framework from the fiscus,
which is complemented by partnerships with other stakeholders.
Government 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.
Government should seriously move with speed to come up with a
policy that promotes the use of solar energy which is in abundance
Government 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.
Promotion 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
Promote 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.
Building blocks for policies must be market based
principles
Our fear of not expressing our views is
ACTION 2: Enhancing Current Climate Change initiatives
Free and open exchange
Avoid NGO curse of focussing on the weak; Create champions
who have experience and skills in the sector
Get business leaders to lead sectors
Colour 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
Used extensively in Australia in the Aviation industry
Government makes a policy framework (facilitative policy regime)
Business 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
Sectorial NAA committees become drivers and allow government to deal with
complexities by having the final say
Priority areas and focus will be set up
Utilise retired experts from the west to work in Zimbabwe
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Forestry Sustainability
Forest Plantation Area increase
Biomass power generation
Illegal settlements in plantations
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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”
 Monthly workshops
Comprehensive PR campaign involving business. government
and civil society on merits
QERCs must migrate into daily language like “liquidity”
Debug the myth this is corporate social responsibility and/or
“hesitant philanthropy” by saying climate change mitigation is an
imperative not an optional university thesis.
Enforce climate change mitigation within government to avoid
double standards that this is targeting private sector
Schemes must have anchor champions with skills in the sector
Publicise 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
 Technology transfer
Procurement and franchising
Ownership
Board composition
Red flagging for lucrative local SPB tenders
New ventures must not have exceptions
Using tax holidays for new ventures to fund climate change
mitigation
Colour coding to shoe compliance
Use of state enterprises to showcase climate change
ACTION 6: Financial Mobilisation
Urgent Workshop
Multi-lateral agencies
Money is not everything but do not lose sight of it
Government 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.
CONCLUSION
Building
blocks for policies must be market based
principles: Business and the oldest profession both
respond to the richest suitor not emotions only.
Focus on incentives rather than punitive measures
We need to conquer the minds first before
promoting climate change mitigation
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