Corporations driving deforestation

Jeremy Hance, mongabay.com
August 5, 2008

The major drivers of tropical deforestation have changed in recent decades. According to a forthcoming article, deforestation has shifted from poverty-driven subsistence farming to major corporations razing forests for large-scale projects in mining, logging, oil and gas development, and agriculture. While this change makes many scientists and conservationists uneasy, it may allow for more effective action against deforestation.

Rhett A. Butler of Mongabay.com, a leading environmental science website focusing on tropical forests, and William F. Laurance of the Smithsonian Tropical Research Institute in Panama believe that the shift to deforestation by large corporations gives environmentalists and concerned governments a clear, identifiable target that may prove more responsive to environmental concerns.

“Rather than being dominated by rural farmers, tropical deforestation now is substantially driven by major industries—especially large-scale farming, mining, and logging,” explained Laurance. “Although this trend is pretty scary, it’s also much easier to target a handful of globalized corporations than many millions of poor farmers living on the frontier.”

Thirteen million hectares (33 million acres) of tropical forest are destroyed every year according to the United Nations. Although the number hasn’t changed much over recent decades, the forces behind the destruction has. Butler and Laurance write that globalization of the financial market and a worldwide commodity boom have created a perfect storm for corporate exploitation of tropical forests. In addition, increasing demand for grain, edible oils, and meats, driven by a thirst for biofuels and rising standards of living in developing countries, are also factors in the destruction. At the same time many governments have allowed international corporations to clear forests due to pressures to develop locally.

Environmental organizations have already increased their pressure on corporations recently with some positive effects.

“Green groups are learning to use public boycotts and embarrassment to target the corporate bad guys,” said Butler. “And it works—we’re already seeing the global soy, palm oil, and timber industries beginning to change their approach. They’re realizing they can’t run roughshod over the environment—it’s just too risky for them.”

“In addition, some massive financial firms, including Goldman Sachs, JP Morgan Chase, Citigroup, and Bank of America, have altered their lending practices after coming under fire from environmentalists,” Butler added.

 But shaming corporations who participate in large-scale deforestation is not enough argues Laurance. “Environmental groups are using carrots as well as sticks. Many multinational corporations are developing greener products because they’re more profitable. For example, the market for eco-friendly timber products is expected to be worth tens of billions of dollars in the U.S. by 2010.”

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