Papua New Guinea forests and carbon trading

From PAUL OATES in Queensland, Australia

There has been an announcement that carbon trading has commenced in PNG. This has been hailed by Mr Kirk Roberts, head of Nupan (PNG) Trading Co. who is quoted in the PNG Post Courier of 26th January 2010 as saying:  "This is a fantastic thing for PNG, who has chosen to take advantage of commercialised carbon trading while the rest of the world talks and talks. And the bottom line is PNG saves their rainforests from logging now, while providing a living and income for the landowners next 100 years." What Mr Roberts hasn't revealed however, is how his claim will be substantiated.

The claimed amount of around K200,000 that was distributed to the Incorporated Land Groups (ILG's) in East Pangia in PNG's Southern Highlands is remarkably similar to the reported K200,000 previously paid to a Mr James Kond, a business  associate of Mr Roberts and apparently for services that were never fully explained.

The article raises more questions than it answers. In any public business arrangement, there has to be transparency between those participating in the arrangement and public. Does the PNG government recognise this arrangement, given that the previous government Office responsible for these matters has recently been reorganised? Are the payments to be taxed or untaxed and who is responsible and accountable for the distribution of these public monies?

No details were provided as to where the funds originated or what those unnamed providers of this largesse expected in return for their contributions.  If K500 is to be distributed between the estimated thousands of people who were reported to be at the signing of the agreement it won't go far if everyone gets a cut. Speaking of cutting, it was claimed that these agreements will stop timber companies from cutting down the forests covered by the agreements yet exactly how this would be policed was not explained. The Southern Highlands reportedly contain regions that are virtually in a state of civil war with very limited government control. What happens when and if the initial payments are spent and a timber company then offers to buy the trees? Has there been a survey on which trees are in the area covered by the agreement and which trees are not covered? Has there been a full and independent examination of who are the rightful owners of the trees?

300 people signed up with Nupan (PNG) yet the details of what was apparently agreed to have not been provided. All this potentially nefarious agreement claims is it will; 'start a carbon trading project to prevent logging in the area and preserve their rainforests for future generations.'

An unnamed 'project scientist' is quoted as saying during the ceremonies that: "the people would need to actively work in the forests every month, to provide data and manage the condition of the trees." Exactly who the people would be reporting to and how this would be managed was not however revealed. The report then went on to claim: 'It is expected that thousands of jobs will be created by this process, which will provide employment for generations to come', but did not elaborate how this would happen.

For those who have seen these promises happen so many times before, without transparency and proper planning, the initial hype of a project such as this so often leads inevitable disappointment when the full details become known. Without further details, the potential for this to be revealed as yet another 'cargo cult' or 'win moni ikamap nating' is exceedingly great. If that does eventuate, it will only exacerbate the disappointment and frustration of the forest owners and further enhance the plans of the timber companies and their offers of buying and felling the trees. Where will Mr. Roberts be then I wonder?

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    News
   Tuesday 26th January, 2010


Landowners paid sitting fees

NEARLY K200,000 was paid to the Incorporated Land Groups (ILG) in East Pangia, Southern Highlands as the start of the proceeds they can expect from signing up for the carbon trading project.
The distribution, in the form of sitting fees, saw K500 paid to every participating ILG, an amount that was clearly significant given the tears and smiles as each ILG signing was celebrated by thousands of people at each Undiapu and Apanda villages.
The forests were recently under threat again, this time from a Madang-based logging company, who had requested that the Forestry Department revalidate the FMA issued some 17 years ago.
Upon consideration, the Forests Minister and the board set the application aside, so that the ILGs could have the opportunity to contribute to the discussion.
And that they did, with more than 300 signing with Nupan (PNG) Trading Corporation Limited last Saturday to start a carbon trading project to prevent logging in the area and preserve their rainforests for future generations.
A project scientist said during the ceremonies that the people would need to actively work in the forests every month, to provide data and manage the condition of the trees.
It is expected that thousands of jobs will be created by this process, which will provide employment for generations to come.
This is the second carbon trading project in PNG that has been facilitated by Nupan (PNG) Trading Corp.
The company's boss, Kirk William Roberts said: "Now we have two projects being developed to the VCS (voluntary carbon standards) verification standards, with Kamula Doso now moving to the PDD stage. Within the next five months, we expect to have at least another 30 projects being validated with credits issued in turn and then sold on the world markets.
"This is a fantastic thing for PNG, who has chosen to take advantage of commercialised carbon trading while the rest of the world talks and talks. And the bottom line is PNG saves their rainforests from logging now, while providing a living and income for the landowners next 100 years."