ITC breaks into global green big league with its large scale Social Forestry ProjectOne of India’s foremost private sector multi business corporation, ITC, has entered the global green portal in a big way. Its social reforestation scheme in the severely degraded areas of Khammam in Andhra Pradesh has earned it a retrospective credit of 57792 certified emission reductions. The CDM (Clean Development Mechanism) executive board of the United Nations framework convention on climate change has now registered the world’s first large scale afforestation project, the entire benefit being passed on to the local tribals. Consequently, the tribals will effortlessly link into the large pool of carbon credits traded across the world. Thus private degraded wastelands owned by tribals and the rural poor will now contribute to the livelihoods of the disadvantaged sections in 193 villages in Khammam. The project also makes a very significant contribution by creating a carbon sink of 3070.19 hectares, which not only helps in sequestration of greenhouse gases such as CO2, but also creates multiple benefits including a large green cover, groundwater recharge, conserving in-situ moisture and increase in soil fertility. As a corollary, the project will also help improve soil and water erosion control measures in the river Godavari catchment area. And hopefully restore the dwindling fauna and birds of the region. It should also prove a case for hope as well as a test case for corporate as well as self help groups working with marginal farmers and tribals to make use of forest resources. ITC is providing farmers with financial and technical assistance to implement this Reforestation project. This is ITC's 8th registered CDM (Clean Development Mechanism) project, and contributes to its achievement of being the only company in the world to attain the major global environmental milestones of being carbon positive, water positive and solid waste recycling positive. Social forestry in the global sense Suddenly, all over the world social forestry is being seen as the new hope on the horizon, a panacea, as a harbinger of millions of green jobs. According to the FAO, the good news is that smarter approaches to forest management could create millions of green jobs that have been lost in the downturn. India has been at the forefront of this movement with the UN asking other countries to follow the lead of India for its forest management. Silviculture or forest management leads to creation of green sinks that tackle carbon emissions and rebalance disturbed ecosystems brought about by reckless land-use change and land clearings. The carbon emission reductions market has doubled in volume in the last one year alone but few of its benefits are reaching the developing countries. By converting these wastelands into productive and renewable agro-forestry resources.Increased investment in forestry could provide jobs in forest management. restoring degraded forests and planting new ones. Carbon credits and global scenario The global carbon bazaar is perking up. estimated to be over 15 million hectares. but more by its huge tracts of plantation land. to buy credits from other firms that meet their targets. but contributes merely 1 % of GDP. In the new regime. This points to the dormant potential of this sector. India could emerge as one of the largest beneficiaries accounting for 25 per cent of the total world carbon trade. India’s dominance in carbon trading is expected to be driven. Trading carbon credits is a new mechanism designed to allow firms that fail to meet emission standards set by the 1997 Kyoto Protocol. Social forestry in India Forestry represents the second-largest land use in India after agriculture. out of which 33 million hectares constitute degraded forest lands. not so much by the domestic industry. As well as economic benefits. India is now getting aggressive with corporate like ITC leading the pack. Degraded wastelands in the country are estimated at 60 million hectares by the Planning Commission. expansion of urban green spaces. development and management of trails and recreation sites. agro forestry and farm forestry. much larger than Australia which aims to be a major player in emission trading by adding 2 million hectare plantation by 2020. strong economic multipliers can be unleashed to significantly mitigate the challenges of . capital investments in projects aimed at reducing carbon emissions. CERs can be used to acquire technology. improved fire management. Which is why India has included forestry in its economic stimulus plans to spur rural employment. There is a great opportunity awaiting India in carbon credit trading which could climb to an estimated $100 billion by 2010. The Kyoto Protocol envisages carbon credit trade between countries with ‘carbon sinks’ (planted forests) and others that produce higher levels of pollution. Certified emissions reductions (CERs) are the currency of the clean development mechanism (CDM). A concerted effort to promote wood plantations in degraded wastelands in India could potentially change the fortunes of small and marginal farmers and consequently the opportunities in rural India. better forest management could have a larger positive impact on climate change than any other initiative currently being planned or considered by world leaders. The multitude of benefits that social and farm forestry can bring in are directed translated into sustainable livelihoods across a variety of geographical regions with low costs. Social forestry from ITC has had a strong transformational agenda in aiming to tap into value-chain based agricultural growth. Today however India imports over US$ 1 billion of wood. The Mission will be taken up on degraded forest lands with an initial corpus of Rs 6000 crores. the case for agro-forestry is obvious. One of the most important is in its role as an instrument of climate change mitigation. the National Mission for a Green India envisages the afforestation of 6 million hectares to enhance forest and tree cover to 33 %. also lends itself to medicinal and herbal applications. As part of the 8 Missions announced. Certainly. Clearly. by greening even 10 million hectares of degraded forest lands. and in its allied areas across the entire wood-based value chain. Non-Timber Forest Produce. Trees are also a valuable source of bio-chemicals. the societal benefits of agro-forestry outweigh that of many other sectors. India is likely to face a wood deficit of 20 to 70 million cubic metres by 2020. providing economically vulnerable households with an assured income and source of nutrition during the gestation period.livelihood. nearly 500 million MT of carbon dioxide can be sequestered. Bio mass creation can be the transformational game changer that could impact the lives of the lowliest marginal farmer. The Prime Minister’s Council on Climate Change recently unveiled its National Action Plan. while loppings and toppings meet their fuel wood requirements. It is estimated that over 75 % of forest export revenue comes from these sources. while restoring ecological balance. Intercropping is encouraged. ITC’s Social and Farm Forestry Programme Afforestation on private wastelands generates significantly higher incomes and employment in rural and tribal hinterlands. One of the most powerful means of bringing about transformational change in rural India lies in the relatively untapped agro-forestry sector. Potentially. grow faster. and is a very important source of sustenance for forest dependent population. Depending on the regeneration of wood and the changing demand profile. ITC invested significantly in research & development to create clonal saplings which are disease-resistant. have higher survival rates and provided these to . energy and environmental security. ITC’s Forestry Programme currently covers a total area of 90. . particularly tribals and marginal farmers.681 hectares with 365 million saplings planted and has so far provided 40 million person-days of employment among the disadvantaged.small farmers to grow in private wastelands. rising incomes and consequent demand for energy. Second. What is important is to ensure such wood pulp is from renewable plantations which contribute to creating a green cover and sustainable livelihoods. As the primary resource for paper based industry. Trees. For example. energy. so crucial for developing economies like ours. agro forestry is a very large source of sustainable livelihoods. commercial and economic activities as well as to meet the needs of convenience. This strategy implied longer gestation. With India struggling to cope with the core issues of food. not only helps mitigate the problems of global warming but also conserves top soil. Paper and Paper Product Manufacture From Renewable Plantations It is abundantly clear that use of paper and paper products will necessarily increase as a result of the spread of education. Agro forestry has multiple benefits. in wood . substantial investment and considerable management attention in managing uncertainty and risk. it enabled poor and marginalized farmers to convert their wastelands to pulpwood plantations. the agro-forestry value chain has the rare distinction of being able to contribute to augmenting energy capacity and ecological wealth besides supporting the core needs of food and housing. as a carbon sink. The use of wood pulp for the production of paper and paper products will therefore be necessary.Significance of ITC's social forestry initiative to the community and to the environment Making Markets Work for CSR Has Been the ITC mantra ITC. chose to take on the more difficult route of mobilising marginal farmers and tribals to plant trees on their private wastelands rather than importing paper pulp. the wood-based value chain is well poised not only as a profitable economic activity but also as a catalyst sector that promotes sustainability and inclusive growth. However. it supports the spread of education. First as a green cover which is one of the best ways of sequestering carbon and combating the ill effects of climate change. sustainable livelihood and environmental security as ITC has shown a quantum impact on the lives of the poor through its innovative sustainability initiatives. education and housing including home lifestyle products. creating a sustained source of income for themselves. ITC took a hard look at a simple expedient like biomass creation for wood pulp that barely uses 4 % of the total wood consumed in India. an innovative and socially conscious corporate. In addition. Trees lend themselves to multiple commercial applications and are therefore a major potential source of livelihood creation. With increasing population. retains water and adds to bio diversity. This entire situation could be reversed in favour of Indian farmers and the Indian economy if policies are designed to support renewable plantations. The low tariff rates for importing wood pulp has led to large scale imports of this raw material for paper manufacture and in this process has not only led to an outflow of foreign exchange but have created opportunities for farmers in foreign lands instead of supporting marginal farmers in India. What is important is to have policies that encourage the growing of trees through commercial plantations rather than just restricting the felling of trees. Therefore. the environment benefits of commercial and renewable plantations will be manifold and emerge as a meaningful action to combat climate change. In addition.000 hectares of land but also created more than 40 million person days of employment besides providing a competitive source of woodpulp for the Paperboards and Specialty Papers Division of ITC *** . every hectare of plantation creates approximately 450 person days of employment. the multiple benefits of agro forestry makes it imperative that renewable plantations are encouraged to meet the needs of the paper industry. including plantations. has the potential to create sustainable livelihoods for nearly 100 million people. The policy framework of restricting felling of trees in India together with the low customs duties on wood pulp have ensured that the paper industry is dependent on imports.pulp based plantations. It would not only create sustainable livelihoods for tribals and small farmers. but make wastelands productive and add to economic growth. ITC’s Social and Farm Forestry initiatives for renewable plantations have not only greened over 90. The wood-based value chain.