Commission staff working document accompanying the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions - Addressing the challenges of deforestation 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}
Date: 2008-10-17
Institutions: European Commission
Subjects: EU action, EU environmental policy, climate change, deforestation, environmental monitoring, forest conservation

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 17.10.2008 
SEC(2008) 2620 

COMMISSION STAFF WORKING DOCUMENT 

accompanying the 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

Addressing the challenges of deforestation 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} 

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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  include  a  combination  of  direct  and  indirect 
economic,  institutional,  political,  natural  or  social  factors:  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 consequences 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  Communication  “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 deforestation and forest degradation, in addition 
to  the  other  measures  put  forward.  Tackling  deforestation  and  degradation  should  also 
safeguard to the maximum extent possible biodiversity and the ecosystem goods and services 
it can provide. Doing so could support local populations, 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 least 50% by 2020 compared to the current levels. A 
number of options are examined with this aim in mind.  

Business as usual would be unsatisfactory on a number of counts. A first option of promoting 
a Multilateral Environmental Agreement on halting and reversing deforestation is discarded as 
unfeasible.  A  second  option  of  strengthening  existing  policies/instruments  is  also  analysed. 
The policies examined as part of this second option include improving policy coherence at the 
EU level, strengthening institutional and governance 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  

– 

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setting up a new Global Forest Carbon Mechanism  

testing  the inclusion of deforestation 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 
strengthening  existing 
policies/instruments  and  creating  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 which the EU would contribute its fair share. 

is  a  combination  of 

This Impact Assessment is, though, only one step in a longer process.  The preferred option 
needs  further  details  and  elaboration,  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. 

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