He said this to an audience at the Lowy Institute of International Policy in Sydney last Friday during his address on Climate Change.
Sir Michael said deforestation was caused by market forces and demand. He said governments must empower rural communities to develop without deforesting or destroying their natural environment but create sustainable wealth for themselves and future generations.
Sir Michael said the latest estimate globally now was that around $20 billion a year would be needed to halve carbon emissions from deforestation. He said according to the IPCC, forests might sequester more than 3.3 billion tons of CO2 annually.
“So, with today’s carbon prices around $33/tCO2, the rural communities owning most of them are effectively subsidizing the rich by A$100 billion ($69 billion) per year. In fact, this is more than total world ODA, which is around A$80 billion ($55 billion) per year!” he said.
“Some companies are now valued in billions simply for advertising trinkets while we surf the internet. Some countries make billions selling fossil fuels that pollute our atmosphere, others for producing low-cost consumer products that humanity does not require. Google is worth $A150 billion ($103 billion) while the world’s last great tropical forests, left standing, are worth nothing. How can this be right?” he asked.
Sir Michael said climate change was real and happening in Australia and PNG.
He said carbon sequestration must only be the first step to address climate change. “This must be followed by valuations for biodiversity, water purification, waste disposal, crop pollination,” he said.
Sir Michael said countries like PNG, rich in biodiversity must now transform our natural environment into “environmental capital.”
“These valuable ecosystem services must be harnessed as engines for wealth-creation for those rural communities that have traditionally cared for these assets,” Sir Michael said.
