Plantations, poverty and power - Critical Information Collective

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87 Pöyry is working on second generation biofuels such as ligno-cellulosic ethanol and biomass-to-liquid fuel. Pöyry is looking at ways of integrating liquid biofuels production into existing pulp and paper mills. The company is involved in several bioenergy projects for pulp and paper companies. “With its combined know-how in the areas of forest industry, energy, environment and infrastructure, Pöyry is uniquely equipped to serve clients pursuing biomass-based projects,” writes Pöyry’s Peter Fabritius. 446 Pöyry’s North American offices are benefiting from the agrofuel bonanza in North America, winning several contracts for engineering services for agrofuel projects using corn, wheat and oilseed rape as the raw material. Pöyry is also sending trainees from other parts of the world to work in the company’s North American offices. “Trainees will return to their home office fully capable of taking on biofuel projects in their region of the world,” write Pöyry’s Zennie Lamarre and Otto von Ubisch. 447 Pöyry is also looking forward to getting winning contracts on wood-based second generation biofuel projects. “The potential for the North American forest industry to become a prime producer of biofuel is promising,” note Lamarre and Ubisch. One of Pöyry’s “solutions” to climate change is hydropower. Since taking over Electrowatt-Ekono in 1999, Pöyry has become a major player in promoting and building dams worldwide. 448 Pöyry describes hydropower as “a renewable, emission-free, cost-efficient form of power generation,” 449 thus ignoring the impacts of dams on fisheries, local communities who must be evicted to make way for the reservoir, emissions from rotting biomass in the reservoir, siltation in reservoirs, cost overruns and massive subsidies. 450 In March 2004, Pöyry’s Canadian subsidiary, Jaakko Pöyry NLK Inc., organised an energy seminar for British Colombia’s pulp and paper industry. The seminar, which was jointly sponsored with BC Hydro, was held in BC Hydro’s Vancouver office. Pöyry presented Electrowatt-Ekono’s energy projects for the Nordic pulp and paper industry along with case studies and comparisons with the Canadian and US pulp and paper sectors. 451 Inevitably, Pöyry’s “solutions” to climate change also include large-scale industrial tree plantations. According to Pöyry, plantations “represent significant potential to . . . [a]bsorb carbon emissions and act as carbon sinks”. 452 Writing about the development of plantations in Australia, Pöyry’s Rob de Fégeley noted that although most plantations established in Australia are “primarily commercial”, there “is now increasing interest in dual commercial/environmental plantations which can assist Australia address some of its environmental concerns.” Australia’s “environmental concerns”, according to de Fégeley, include “salinity control, sequestering carbon and improving the biodiversity in rural regions where it has been 446 Peter Fabritius (2007) “Increased energy production based on biomass in the pulp and paper industry”, Know-How Wire, Pöyry Client Magazine, 2/2007. 447 Zennie Lamarre and Otto von Ubisch (2007) “Oil-dependence sparks bio-energy boom in North America”, Know- How Wire, Pöyry Client Magazine, 2/2007. 448 For more information on Electrowatt-Ekono’s record, see Chris Lang and Nick Hildyard (2003) “Dams Inc 2: Electrowatt-Ekono”, 21 January 2003. 449 Patrick von Essen (2007) “Services and solutions for the fight against climate change”, Know-How Wire, Pöyry Client Magazine, 2/2007. 450 See for example, Patrick McCully (1996) “Silenced Rivers: The Ecology and Politics of Large Dams”, Zed Books. For a critique of Electrowatt-Ekono’s involvement in the hydropower sector see: Chris Lang and Nick Hildyard (2003) “Dams Inc. 2: Electrowatt-Ekono”, available here: http://www.box.net/shared/lfgnckdi5q 451 Gordon Floe (2004) “Joint energy seminar by Jaakko Pöyry NLK and BC Hydro ”, Know-How Wire, Jaakko Pöyry Client Magazine, June 2004. 452 Hannu Hynnönen (2008) “Planting the future”, Know-How Wire, Pöyry Client Magazine, 1/2008. http://www.poyry.com/linked/en/press/KnowhowWire_1_2008.pdf
88 depleted as a result of agricultural development”. 453 Pöyry’s conflict of interest reaches new levels in its carbon services work. Through its partnership with IDEAcarbon, Pöyry is aiming to influence the carbon market, while advising companies on the “Optimisation of [their] carbon portfolio”. Pöyry is also “consulting both Governments and companies in various types of carbon projects worldwide”. 454 Nowhere in any of Pöyry’s documents that I have read about climate projects does Pöyry even begin to address the fact that there is a glaring conflict of interest in helping to shape the carbon market and simultaneously winning contracts advising companies on how to profit from carbon trading. Pöyry’s involvement in the carbon market will create more profits for the companies in the Pöyry Group. It will not produce benefits for the climate. Trading carbon, in particular through carbon offset projects, will not reduce greenhouse gas emissions, it simply moves them from one part of the planet to another. As George Monbiot points out, “Even if, through carbon offset schemes carried out in developing countries, every poor nation on the planet became carbon-free, we would still have to cut most of the carbon we produce at home. Buying and selling carbon offsets is like pushing the food around on your plate to create the impression that you have eaten it.” 455 453 Rob de Fégeley (2004) “Australian forestry coming of age”, Know-How Wire, Jaakko Pöyry Client Magazine, June 2004. 454 Sari Siitonen (2006) “Innovative Clean Energy Solutions in Practice , Carbon Consultancy and Emissions Reductions ”, Pöyry Energy Oy company presentation, Nairobi, 12 November 2006. 455 Goerge Monbiot (2006) “Selling Indulgences”, The Guardian, 18 October 2006. http://www.monbiot.com/archives/2006/10/19/selling-indulgences/
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1 Plantations, poverty and power: E
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3 CONTENTS Introduction 1. Plantati
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5 New investors have emerged recent
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7 1. Plantations do not plant thems
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9 plantations established on grassl
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11 Nations Food and Agriculture Org
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13 Another reason for the move to t
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15 In his book, “Khor Jor Kor, Fo
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17 Between 1991 and 2006, the numbe
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19 are asking for”, notes WWF. 60
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21 consume fewer goods. Less advert
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23 credit crunch, unstable oil pric
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25 Investment in plantations in the
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27 possible price. Subsidies, linke
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29 2. The anatomy of five pulp proj
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31 However, while the Bank confirme
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33 make way for its tree plantation
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35 In April 2004, about 2,000 famil
Page 38 and 39: 37 Sappi, Swaziland: 50 years of in
Page 40 and 41: 39 after an assessment by the Soil
Page 42 and 43: 41 impact of the plantations on wat
Page 44 and 45: 43 Advance Agro, Thailand: Deforest
Page 46 and 47: 45 confiscation and liquidation of
Page 48 and 49: 47 management was facing a bankrupt
Page 50 and 51: 49 Indah Kiat, Asia Pulp and Paper,
Page 52 and 53: 51 company owners want profits to b
Page 54 and 55: 53 • US$4.5 billion owed by APP i
Page 56 and 57: 55 explained that “association wi
Page 58 and 59: 57 Indah Kiat faces a series of lan
Page 60 and 61: 59 logging. While the investigation
Page 62 and 63: 61 experimental areas and not from
Page 64 and 65: 63 Staples and Office Depot in the
Page 66 and 67: 65 “the exhaustive studies have c
Page 68 and 69: 67 CEDHA has also filed complaints
Page 70 and 71: 69 of converting grasslands to indu
Page 72 and 73: 71 3. Pulp Inc. Profiles of seven p
Page 74 and 75: 73 Thailand, a power plant for a Ne
Page 76 and 77: 75 Management’s experts the possi
Page 78 and 79: 77 A year after Aracruz’s third p
Page 80 and 81: 79 In January 2003, Pöyry announce
Page 82 and 83: 81 Bank in the early 1990s. Groome
Page 84 and 85: 83 Pöyry’s role in the Baikal Pu
Page 86 and 87: 85 Under carbon financing, Pöyry o
Page 90 and 91: 89 The Confederation of European Pa
Page 92 and 93: 91 CEPI Eurokraft states that “it
Page 94 and 95: 93 sectors need to reduce by 21% co
Page 96 and 97: 95 The ADB’s report notes that th
Page 98 and 99: 97 Nepal In Nepal, the target area
Page 100 and 101: 99 loan for the second plantations
Page 102 and 103: 101 International Finance Corporati
Page 104 and 105: 103 •In December 2000, IFC approv
Page 106 and 107: 105 firm’s activities. After his
Page 108 and 109: 107 safeguards are in practice.
Page 110 and 111: 109 Bank projects are approved by a
Page 112 and 113: 111 •€80 million to Portucel to
Page 114 and 115: 113 The Food and Agriculture Organi
Page 116 and 117: 115 Nevertheless, Poore and Fries n
Page 118 and 119: 117 failure to define industrial tr
Page 120 and 121: 119 FAO’s guidelines recommend th
Page 122 and 123: 121 Rosengren did not reply to my e
Page 124 and 125: 123 Forest Stewardship Council: Mis
Page 126 and 127: 125 body that rubber stamps operati
Page 128 and 129: 127 Criterion 1.6, for example, sta
Page 130 and 131: 129 fast wood plantations have take
Page 132 and 133: 131 Principle 10.8 should prevent t
Page 134 and 135: 133 By April 2004, FSC had, at last
Page 136 and 137: 135 plantations, because it creates
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137 integrated set of common Princi
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139 for clearing areas of Atlantic
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141 Colombia were certified by SGS.
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143 The dissociation became necessa
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145 4. Future planned pulp mills As
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147 Planned pulp projects: 698 Comp
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149 UPM and Sveza Group Vologda Rus
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151 paper industry along ecological
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