ACCELERATING
SUSTAINABLE GROWTH

The tropics, a region encircling the Earth's equator, have long been perceived as lush rainforests with exotic animals and unchanging weather. However, they are also often associated with poverty, unstable governments, and environmental destruction. A new report, "The State of the Tropics," provides a deeper and more nuanced understanding of this diverse region.

Changing Perceptions

Historically, the tropics were misunderstood, with Aristotle even claiming that no civilization could thrive there. The report calls for a shift in perspective, urging recognition of the tropics from within and embracing local wisdom and experience. Compiled by 12 institutions, this comprehensive 400-page report delves into demographics, health, science, economics, biodiversity, and climate change..

Population Growth

Currently, the tropics are home to 40% of the world's population and 55% of children under five. Population growth is particularly rapid in Africa. By 2050, over half of the global population and 67% of young children will reside in the tropics. The region is expected to add 3 billion people by the end of the century, necessitating a rethinking of global priorities in aid, development, research, and education.

Economic and Social Challenges

A booming population drives increased demand for food, water, and resources. Tropical economies are growing 20% faster than those in temperate regions but still house two-thirds of the world's extreme poverty. While extreme poverty has decreased in Southeast Asia and Central America, it has doubled in Central and Southern Africa since the 1980s. Despite these challenges, there have been improvements, including a decline in undernourishment, rising life expectancy, and reduced maternal and child mortality.

Health Issues

The tropics face unique health challenges, with diseases like dengue fever and malaria remaining significant threats. These diseases are rarely found in temperate regions but are major health concerns in tropical countries.

Land and Environmental Struggles

Growing populations and consumption have led to land-use clashes. Indigenous groups struggle to maintain control over their lands as corporations seek resources for agriculture, livestock, and commodities. Conservationists are working to preserve vital ecosystems, as the tropics host 80% of Earth's terrestrial biodiversity and 95% of mangrove and coral reef biodiversity. Unfortunately, forest loss continues, especially in Oceania.

Oceanic Pressures

Marine resources in the tropics, including coral reefs and mangroves, face unprecedented pressures. Overfishing and destructive practices have depleted species. Mangroves, crucial for coastal protection and carbon storage, are being rapidly destroyed for aquaculture and development. Climate change and ocean acidification further threaten these ecosystems.

Future Challenges

Climate change poses significant challenges for the tropics, including extreme weather, rising seas, and changing precipitation patterns. These changes could impact agriculture and increase the number of refugees and regional conflicts. The tropics are expanding into temperate zones, which will have implications for water resource management and agricultural systems.

Conclusion

The future of the tropics is one of rising influence and wealth, alongside ongoing struggles with poverty, hunger, health standards, biodiversity, climate change, and resource conservation. The report emphasizes the importance of sustainable development and conservation to safeguard resources for future generations. The tropics hold great potential and influence, making it crucial to address these challenges thoughtfully and effectively.

Forest carbon credit considered as a non visible forest product” that can be a viable alternative source of income for forest landowners. It’s a metric ton of carbon dioxide equivalent (CO2e), of whichthe emission is newly sequestered and is purchased by GHG emitters as a cost-control measure to make up for emissions occurring elsewhere.

Managing forests for carbon emission offsetting gives the world the opportunity to reverse or at least sequestered the emissions that they have already made or they are about to make into the atmosphere. The total GHG emissions are increasing rapidly. Most of the GHG emissions of all time have been done in the last 40 years of our existence. More GHG emission mean climatic shifts which leads to intensive droughts somewhere and acute floods in other areas of the world. Because of those blindly done deforestation which hampers the smooth functioning of the forest and gets in the middle of the process of habitats having their share of biodiversity.

Researches around the world point to a fact that forests can play a vital role in mitigating the inimical effects of climate change and can help in putting a shackle on this ever-increasing global warming. Quality and Quantity of herbs, restoring the disbalances caused by humans in nature, water as a resource in quantity & quality, providing wildlife a habitat to call home and protecting biodiversity in that habitat.

Forest & Carbon Offset

To get an understanding of the carbon offset markets, we need to know how CO2 is measured and traded for various purposes. CO2 being the major contributor as the GHGs in the atmosphere, promoting global warming. All other gases are not actually come that much into consideration because CO2 is more easily measurable that others. The carbon unit in which it is measured is “metric tons of CO2 Equivalent” often seen written as MtCO2e or tCO2e & also called as “Carbon Credit or Carbon offset”. Currently sellers of carbon offsets are majorly forest landowners who are looking to opening up different forest-based revenue streams by helping out the GHG emitters in exchange of a handsome payday.

Carbon Marketplaces

There are two distinct types of carbon markets; voluntary and compliance markets

Carbon markets are divided into two subdivisions – voluntary &compliance markets.

Voluntary markets exist where companies or individuals buy carbon credits for purely a voluntary basis. Many companies voluntarily purchase carbon credits to demonstrate their commitment to protecting the environment and to demonstrate corporate social responsibility.

Voluntary markets are there for the individuals and companies so that they buy the credits for the sole purpose of showcasing their concern towards the environment, its well-being and their willingness to go above and beyond to correct it. It fulfils their commitment to live up to the corporate social responsibility they owe to the society.

Prices for the carbon offset in voluntary market, globally, can fall anywhere between a wide range.Forest authorities & land usage projects are somewhat larger voluntary carbon project categories than any other kind. There are numerous factors that influence the price determination of carbon credits at the very point in time for e.g.,the type & location of project that is put up against asking for the credits, additional deemed project benefits that will play out to be an influencing factor, marketing efforts & many others.

The emission stays within limit as it is cancelled out by the very nature of the deal and there is no margin left to betray the environment in any case.

Compliance Carbon Market

Compliance carbon markets are such marketplaces through which “regulated by the cap & trade” entities obtain & surrender emissions allowances or better known as ‘offsets’ in order to meet predetermined regulatory targets.

In case of cap & trade programs; participants i.e., both emitters and intermediaries such as financial institutions; both are allowed to trade allowances to make profit from the unused allowances or for meeting regulatory requirements.

Carbon emissions can be controlled in so many ways on any given level; be it organizational, industrial, or else; but only so many ways you can use to reach the desired threshold to enjoy the sweet zone of not needing any other organization to cancel out your exceeded margin. Carbon credits (the credits which an organization has that allow them a certain amount of carbon emission in a year) are used by either sticking to the emission allowances or providing funding for sustainable projects that actually create green energy.

If the equilibrium has to be maintained, this is commonly executed & achieved through an exchange, referred to as Carbon Financing. An annual payment cycle is started to fund your company’s project partner, be it public, private, NGO, etc for the greenhouse gases emission reductions created once the project is fully operational.

Carbon financing is a great way to boost the financial viability of cutting-edge projects to give them a longer life & less government interference. It can also generate an added revenue stream and gives an opportunity for the effective transfer of technologies, expertise & knowledge. It provides a medium of leveraging new public & private investments so that the investment kitty inflate & can help in projects to reduce greenhouse gas emissions allowing all to contribute.

But to leverage carbon financing to your advantage, organizations have to first file for a certification called CER (Certified Emissions Reduction Certificate) and get the audit done to pass for it.

A Certified Emissions Reduction Certificate, or a CER, is provided by the United Nations to member nations for averting one tonne of CO2 emissions by taking measures suitable for the environment. Countries with economies, both traditional & developed (as defined in the Kyoto Protocol) use CERs to help them reach their emission goals. These countries are able to reach their targets and are easily able to set future goals as it makes the endeavor of reducing greenhouse gases emissions more achievable.

Carbon Financing is a way to help organizations and help them out with their slab of emissions, at same the time for the government to be a watchdog over how much they are using or misusing the resources and abusing the limits they have to adhere to

Here are some facts regarding Climate Finance:

1) The UNFCCC, the Kyoto Protocol and the Paris Agreement call for financial assistance from countries with more financial resources to those that are less endowed and more vulnerable. (Drishti IAS - https://bit.ly/2Wy0CEb )

2) Under the Climate Change Action Plan for 2016-2020, the World Bank Group laid out a plan to increase climate finance from 21% to 28 % of the Bank’s total budget and has surpassed these targets for the second year in a row (Source – World Bank https://bit.ly/3kCj9aI)

3) The largest source of climate financing in India is public funding, which is routed through budgetary allocation and several funds and schemes related to climate change established by the Government of India such as National Clean Energy Fund (NCEF) and National Adaptation Fund (NAF). (Drishti IAS - https://bit.ly/2Wy0CEb )

It's necessary for the environment to have people who are taking care of it and helping it rest in the safest of embraces. The continuous industrial development and growth of infrastructure, new machines, and technology taking over the physical human efforts account for almost all the emissions. With this change, comes our responsibility to control or rather change altogether for the sake of this planet. Fortunately, or unfortunately, we can just do the former i.e. tending towards our responsibility to control.