A ustralia Pacific - Illegal Logging Portal

Fi g u r e 1 : V a l u e o f W o o d P r o d u c t E x p o r t S c e n a r i o s - 2 0 0 8 t o 2 0 5 2 ( U S $ )3. COMPARATIVE FINANCIAL ANALYSIS - OF LOGGING FOR ROUND LOG EXPORTAND COMMUNITY ECOFORESTRY WITH SMALL-SCALE SAWMILLING.1 8 0 ,0 0 0 ,0 0 01 6 0 ,0 0 0 ,0 0 01 4 0 ,0 0 0 ,0 0 01 2 0 ,0 0 0 ,0 0 01 0 0 ,0 0 0 ,0 0 08 0 ,0 0 0 ,0 0 06 0 ,0 0 0 ,0 0 04 0 ,0 0 0 ,0 0 02 0 ,0 0 0 ,0 0 00Figure 1: Value of Wood Product Export Scenarios – 2008 to 2052 (US$)c u r r e n t e x p o r tr a te : 1 0 0 %r o u n d lo ge x p o r ts a tc u r r e n t r a tes u s ta in a b le r a te :1 0 0 % r o u n dlo g ss u s ta in a b le r a te :7 5 % r o u n d lo g s ,2 5 % s a w ntim b e rs u s ta in a b le r a te :1 0 0 % s a w ntim b e rs u s ta in a b le r a te :5 0 % s a w ntim b e r , 0 %r o u n d lo g s ,c a r b o n f in a n c eL a n d o w n e r / p r o d u c e r r e tu r nG o v t e x p o r t r e v e n u eLogs are tagged and ready to be shipped to Malaysia at a loggingcamp in Marovo Lagoon. © Greenpeace/BehringThis analysis calculates the Net Present Value (NPV)to the Solomon Islands Government (log tax andduties) and landowners (royalty and/or communityecoforestry profit) for both logging for roundlog export, and for a range of combinations withcommunity ecoforestry using portable sawmilling forsawn timber export and domestic use. Two differentresource harvest intensity scenarios were alsoanalysed – the current exhaustive ‘boom and bust’track of exploitation where commercial forests willbe logged out by 2015 and a ‘sustainable yield’ rateof harvest where there is an assumed non-declining248,000 m3/year 34 .All data for the analysis was sourced from the CentralBank of Solomon Islands 35 , the IMF (2007) and theMinistry of Forests, Environment and Conservation(2006), with supplementary data on communityecoforestry and small-scale sawmilling from VillageEcotimber Enterprises (VETE), Honiara.It is not a full economic analysis so the broaderflow-on socio-economic impacts – such as localemployment, housing, local services, and generalcontribution to the ‘quality of village life’ or the nationsGDP – of the two different tracks were not considered.The potential additional value of further processing ofand value adding to the sawn timber, or the broaderbenefits gained by Solomon Islanders controllingand managing their own resources were alsonot considered.While there are obvious short-term financial incentivesto liquidate the commercial forest resource as quicklyas possible, the greatest financial value (NPV) forthe nation is achieved through the substitution oflogging for round logs by community ecoforestry forsawn timber. For non-declining ‘sustainable rate’, thesubstitution of a quarter of the log production givesa 35% increase in value (see Fig 1). Any of the optionsthat involved the increased levels of local processingvia small-scale sawmilling and ecoforestry increasedthe value to the nation. The greatest financial valueis from the two scenarios that involved a ‘sustainable’rate of harvest and halting round log exports, eitherwith 100% community ecoforestry with sawn timberor the 50% community ecoforestry together with aforest carbon payment (see Fig. 1).1 8 ,0 0 0 ,0 0 01 6 ,0 0 0 ,0 0 01 4 ,0 0 0 ,0 0 01 2 ,0 0 0 ,0 0 01 0 ,0 0 0 ,0 0 0Fig u r e 2 : L a n d o w n e r r o y a y a n d c o m m u n i t y p r o d u c e r r e t u r n o n e x p o r t s s a w n t i m b e r ( US $ )Figure 2: SIG Landowner Royalty and Community Producer Returns on Sawn Timber (US$)8 ,0 0 0 ,0 0 06 ,0 0 0 ,0 0 04 ,0 0 0 ,0 0 02 ,0 0 0 ,0 0 002 0 0 8 2 0 1 2 2 0 1 6 2 0 2 0 2 0 2 4 2 0 2 8 2 0 3 2 2 0 3 6 2 0 4 0 2 0 4 4 2 0 4 8 2 0 5 2L a n d o w n e r r e tu r n o n c u r r e n t 'b o o m a n d b u s t' r o u n d lo g e xp o r t r a teL a n d o w n e r r e tu r n o n n o n - d e c lin i n g r o u n d lo g e xp o r t r a teL a n d o w n e r /c o m m u n ity p r o d u c e r r e tu r n o n n o n - d e c l in in g e xp o r t r a te w ith r o u n d lo g a n d 2 5 % s a w n tim b e r e xp o r tsA portable saw mill in action. Portable sawmills are carried intothe forest reducing environmental impact by eliminating the needfor damaging infrastructure like roads. © Greenpeace/Neaves8 Securing the Future: An Alternative Plan for Solomon Island Forests and Economy