Rainforests could be more profitable standing, says research

The Indonesian rainforest is worth more to businesses standing than if it was felled, according to new research.

A study published in the journal Conservation Letters shows that a scheme that would give palm oil companies – largely responsible for deforestation in the region – carbon credits for protecting rainforests would make them more money than clearing land to grow plants for palm oil.

Palm oil is used in a number of cosmetic products as well as man biofuels.

The scheme, called Reduced Emissions from Deforestation and Degradation (Redd), could go a long way towards protecting rainforests, Oscar Venter from the University of Queensland told the BBC.

"If Redd does become part of the next international climate agreement, it will have the potential to fund forest protection in areas slated for oil palm conversion," said Dr Venter, who led the research.

Venter looked at the financial reports of palm oil companies to see how much money they earned from oil production and selling timber.

They compared these earnings with the predicted carbon emissions from planned palm oil projects, and calculated that if carbon credits could be sold for $10 (£6) per tonne, conserving the forest could be more profitable than clearing land for oil palm.

"This is the break-even price if oil palm can only be grown in areas that are at least moderately suitable, or if some oil palm can be relocated to already [deforested] areas. Any price over [that] means Redd becomes more profitable than oil palm," said Venter.

Redd is a UN scheme, introduced in 2005, to create a practical financial system to protect the rainforests.

It could potentially be included in the Copenhagen climate agreement that will replace the Kyoto accord later this year.

"If Redd does become part of the next international climate agreement, it will have the potential to fund forest protection in areas slated for oil palm conversion," said Venter.