Posted on July, 20 2011

Anna van Paddenburg, Sustainable Finance and Policy Leader of the Heart of Borneo (HoB), was one of the panel members during the celebration of the 2011 World Environment Day (WED) held at the Asian Development Bank (ADB) Headquarters in Manila on June 3, 2011.

In line with this year’s WED theme, ‘Forests: Nature at Your Service’, in support of the United Nation’s International Year of Forests, these activities aimed at drawing attention to the crucial environmental, economic and social roles played by the world's forests. The Heart of Borneo is one of these important tropical rainforests which provide valuable ecosystem services benefits.

The two day celebration saw a donation of seedlings made to the Manila Water Company, the inauguration of collection bins for cellphone and battery waste, a panel discussion on options for financing forests and eco-systems and the planting of trees during a field trip to La Mesa Dam.

During the panel discussion on ‘Financing forests and ecosystem services – What options do we have?”, van Paddenburg, together with leading experts in the environmental field in the Asia-Pacific region, stressed the significance of a Green Economy (GE).

Rapid economic growth had come with environmental and social costs not featured in national accounting systems. While businesses contribute towards economic development, government and society often pay the price of water pollution, dredging of rivers, infrastructure repair due to flooding to degraded fisheries and forests, all of which affect prosperity and human well-being. To tackle this, there needs to be a move toward an alternative economy where stakeholders include the values of forests and ecosystem services in economic decision making. A Green Economy pursues equitable growth while sustaining natural capital to provide for food, water, climate, and resource security.

There needs to be an investment in transforming incentive systems including the reform of subsidy and fiscal incentives and economic diversification. Forests contribute significantly to local, national and global economies and this needs to be recognized through investments in forest conservation and sustainable forest management. This is, however, a challenge, as it means competing with lucrative income generating opportunities such as in forestry and agriculture.

Investments could be in the form of governments creating incentives to encourage the private sector to be innovative in greening their respective economic sectors, or by the private sector and financial institutions supporting governments by mobilizing investment for the protection of forests. Investments need to also be directed to set up market mechanisms to encourage certified products (for example, FSC timber) as well as payment systems for the use of ecosystem services (e.g. PES, REDD+).

It may still be some time  before the Green Economy model becomes ‘business as usual’. “Mainstreaming natural capital and climate change into decision making processes within the Heart of Borneo requires a commitment by governments, businesses and communities to ensure that the Heart of Borneo is conserved and sustainably managed, “ van Paddenburg said.

“Taking the steps to enable this transition to a Green Economy indicates recognition of the value of ecosystem services which ultimately leads to zero net deforestation, biodiversity conservation, reduced green house gases (GHG) emissions, and equitable livelihood.”