EN    EN EN 
 
EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 17.10.2008 
SEC(2008) 2620 
COMMISSION STAFF WORKING DOCUMENT 
 
accompanying the 
COMMUNICATION FROM THE CO MMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMI TTEE OF THE REGIONS 
 
Addressing the challenges of deforestatio n and forest degradation to tackle climate 
change and biodiversity loss 
  
SUMMARY OF THE IMPACT ASSESSMENT  
{COM(2008) 645 final} 
{SEC(2008) 2618} {SEC(2008) 2619} 
 
EN 2   EN During the last five years, between 11.8 and 13 million ha of forests have been lost annually. 
This is an alarming trend and in the past 20 years no significant decrease in the deforestation 
rate has been recorded.  
The causes of deforestation and degradation in clude a combination of direct and indirect 
economic, institutional, politic al, natural or social factor s: for example, demand for 
agriculture or infrastructure development, or  government failure to protect these valuable 
assets. The result is that forests are often lost or degraded even when it is not in the countries’ 
long-term interests.  
High rates of deforestation have severe conseque nces for climate change. Forests play a vital 
role in the global carbon cycle,  storing roughly half the world' s terrestrial carbon. In 2004 the 
forestry sector accounted for 17.4 % of global annual greenhouse gas emissions. This is why 
the targets set in the Commission's Communica tion “Limiting Global Climate Change to 2 
degrees Celsius - The way ahead for 2020 and beyond” are unlikely to be met without a 
reduction in greenhouse gas emissions from defore station and forest degradation, in addition 
to the other measures put forward. Tackling deforestation and degradation should also 
safeguard to the maximum extent possible biodi versity and the ecosystem goods and services 
it can provide. Doing so could support local popu lations, and contribute to tackling poverty.  
The target that needs to be met is to halt global forest cover loss by 2030 at the latest and to 
reduce gross tropical deforestation by at leas t 50% by 2020 compared to the current levels. A 
number of options are examined with this aim in mind.  
Business as usual would be unsa tisfactory on a number of count s. A first option of promoting 
a Multilateral Environmental Agreement on halting and reversing deforestation is discarded as 
unfeasible. A second option of strengthening exis ting policies/instruments is also analysed. 
The policies examined as part of this second option include improving po licy coherence at the 
EU level, strengthening institutional and govern ance systems in third countries and promoting 
effective multilateral responses. This could have  a positive effect but will fall well short of the 
target if not combined with additional measures. 
This is why a third option of raising new funds for halting deforestation and forest 
degradation is examined. This could be done, for example, by  
– setting up a new Global Forest Carbon Mechanism  
– testing  the inclusion of de forestation in carbon markets. 
A number of technical parameters related to  coverage, criteria, monitoring and payment 
mechanisms of such an option are also examined.  
The preferred option until 2020 is a co mbination of strengthening existing 
policies/instruments and creati ng the Global Forest Carbon Mechanism raising new funds 
through auctioning revenues. A direct link to the carbon market via forest emission reduction 
credits could be further tested . These options should become elements of the global climate 
change agreement in Copenhagen in 2009 to whic h the EU would contribute its fair share. 
This Impact Assessment is, though, only one step in a longer process.  The preferred option 
needs further details and elabor ation, particularly in relation to the designing of the Global 
Forest Carbon Mechanism. This will be done in a timely manner to inform the final UNFCCC 
negotiations in December 2009.