Funding scheme to reduce rainforest destruction

Efforts to reduce the destruction of tropical rainforests have received a boost following the creation of a five-year emergency funding scheme backed by 35 governments around the world.

The plan was announced by the Prince of Wales at a meeting in St James’ Palace, London and the aim is to seek initial financing of between £13.5bn and £22bn by 2014 from participating administrations.

The US has already pledged to contribute $275m (£165m) towards the initiative next year and the goal is to achieve a targeted 25 per cent cut in annual global deforestation rates by 2015. The felling of forests generates almost one fifth of global carbon emissions.

The move follows the creation of an Informal Working Group by world leaders after attending a convention in April also convened by Prince Charles. The body examined financial proposals made by the Prince’s Rainforest Projects initiative, which was set up two years ago to find a way to make the forests worth more to developing countries alive than dead.

The current problem is that activities such as logging, cattle grazing and palm oil farming are lucrative and there has to date been no mechanism for tackling the mainly economic reasons behind deforestation.

But under the new scheme, developing countries would be rewarded for cutting the amount of trees they destroy, with funds paid out when agreed targets are met. An example of how such an initiative might work is the deal signed between Guyana and Norway last week.

Norway intends to invest up to $250m in the South American nation by 2015 in line with the government’s success in halting the destruction of trees and limiting carbon emissions.