[Square] Urgent Need for Public-Private Cooperation in Forest Investment through REDD+ Strategy

Professor Lee Yohan, Department of Forest Resources, Yeungnam University

We are living in an era of climate crisis. Since the Industrial Revolution, greenhouse gas emissions caused by humans have resulted in a global temperature increase of about 1.1℃, and the worst scenarios of climate change are becoming a reality. If humanity continues its current activities, the average global temperature is expected to rise by more than 1.5℃ within the next 30 years. Based on this, the recent Sixth Assessment Report by the Intergovernmental Panel on Climate Change (IPCC) emphasized the need for immediate, rapid, and widespread efforts to reduce greenhouse gas emissions.

However, the astronomical costs required to prevent the climate crisis pose a significant problem. Renowned economist Nicolas Stern released a research report on the economic impacts of climate change. According to the report, preventing deforestation has a greater greenhouse gas reduction effect and is more cost-effective than paying technological costs in the transportation sector to reduce greenhouse gases. This is why we need to pay attention to the Reducing Emissions from Deforestation and forest Degradation plus (REDD+) system.

Forests are considered the most cost-efficient means of carbon reduction. At the same time, they are cited as an effective, nature-friendly method to achieve a carbon-neutral society. Humans inevitably emit carbon dioxide in daily life, but forests absorb atmospheric carbon dioxide emitted by humans through photosynthesis and store it within trees. Furthermore, the carbon stored in trees remains fixed in the forest as long as the trees grow and survive. The IPCC report also highlights this role of forests, defining them as natural ‘carbon sinks.’

Especially, REDD+ has emerged as a new approach to conserve the world’s forests, such as tropical forests, which are severely threatened by deforestation. At the 11th Conference of the Parties (COP 11) to the Climate Change Convention in 2005, Papua New Guinea and Costa Rica proposed the initial concept of Reducing Emissions from Deforestation (RED) in developing countries. Later, at COP 13 in 2007, the concept expanded to the current REDD+, which includes forest conservation, sustainable forest management, and enhancement of forest carbon stocks. Moreover, Article 5 of the Paris Agreement explicitly mentions the conservation and enhancement of greenhouse gas sinks, including forests, and promotes the implementation and support of REDD+ as a separate provision, establishing REDD+ as a key carbon reduction mechanism in the new climate regime.

The international community currently views the REDD+ program as the fastest solution to approach carbon neutrality. Many international organizations and developed countries are aggressively investing in REDD+, reflecting this perspective. Considering this global trend, South Korea also needs to actively engage in REDD+ projects as part of its national emission reduction goals. Above all, the government should activate REDD+ projects through public support and private sector participation. This means that public understanding is essential to enhance the effectiveness of greenhouse gas reduction projects through forests in response to the climate crisis.

It is encouraging that major domestic corporations have recently begun to show interest in REDD+ projects. These companies appear to be participating in REDD+ initiatives considering the growing emphasis on social responsibility and the fact that non-financial factors such as ESG (Environmental, Social, and Governance) have become important indicators for evaluating corporate value. In addition to corporate participation, the government should also establish an ‘ESG business model’ where the government and private sector cooperate on carbon neutrality and ESG management.

This is just the beginning. This is why the future of REDD+ projects is increasingly intriguing. Our past involved destroying forests and expanding human territories, leaving traces behind. The Earth’s night view from satellites is beautiful, but behind that brilliance, power plants must constantly operate, resulting in carbon emissions and their side effects. To resolve this, it is important to give the Earth rest and create more spaces for respite. Just as we seek forests for rest and healing, we hope more people, companies, and countries will join in returning forests to the Earth.

Professor Lee Yohan, Department of Forest Resources, Yeungnam University