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Combining Natural
Savings and Parallel
Planting in Kenya
A Green Currency to Support
Indigenous Forest Stewardship
Joel Thompson [email protected]
Tesla Conference, Split, July 2012
Introduction
Policy
Green CCs
Natural Savings
Parallel Planting
PP-CC
Conclusion
Combining Natural Savings and Parallel Planting in
Kenya
A Green Currency to Support Indigenous Forest Stewardship
Natural Savings = A green CC concept designed by Lietaer and Hudon
Parallel Planting = ‘Planet Positive’ - methodology developed by African Forest
to grow indigenous tree varieties alongside exotic varieties in Kenya  agroforestry investment products.
Green Currency = Complementary currency backed by renewable energy or an
organic growth process.
Indigenous Forest Stewardship = Protection and advancement of closed canopy
forest cover.
Instrument to unite the conceptual nature of natural savings with the practical
success of the parallel planting methodology to realise investor-friendly and
policy-friendly indigenous forest stewardship and advancement.
Introduction
Policy
Green CCs
Natural Savings
Parallel Planting
PP-CC
Conclusion
The state of Kenya’s forests: impacts and trends
Environmental
• Endemic biodiversity, crucial climatic and watershed services to the Kenyan
population.
• Indigenous closed canopy forests declined by 8% from 1990 to 2010, sinking
Kenya’s indigenous forest cover to 1.96% of total land area.
Societal
NCCRS acknowledges climate change in Kenya as ‘unmistakeable and
intensifying at an alarming rate’. 2011 cumulative failure of annual rains.
Political
Environmental degradation and the ensuing fight for diminishing resources
strongly contributed to the 2008 post-election violence.
Introduction
Policy
Green CCs
Natural Savings
Parallel Planting
PP-CC
Conclusion
Government Policy
The Forests Act of 2005
GoK Forest Policy 2007 – ‘enhance the contribution of the forest sector…’
‘Rehabilitation and Protection of Indigenous Forests in Five Water Towers’ is one
of Kenya Vision 2030’s ‘flagship projects’.
International Conventions
Convention on Biological Diversity
UN Framework Convention on Climate Change
UN Convention to Combat Desertification
Introduction
Policy
Green CCs
Natural Savings
Parallel Planting
PP-CC
Conclusion
Decoupling of money supply from ‘natural’ limits
• Money can and must grow indefinitely regardless of the ability of the
biosphere to replenish its stocks.
• Limitations of REDD, eco-tourism and other industries.
A micro money supply tethered to the growth of Kenya’s indigenous forests?
• Complementary currencies (CCs) could bypass this system to find a solution for
Kenya’s indigenous forests.
• Green CC design considerations: unit of value, eco-mimicry, anthropology,
sustainability.
Introduction
Policy
Green CCs
Natural Savings
Parallel Planting
PP-CC
Conclusion
Natural Savings
• Microsavings tool and medium of exchange for marginalised communities in
inflationary and environmentally degraded environments.
• Backed by an organic growth process, e.g. in return for labour on a tree
plantation, labourers earn shares which grow in value over time as the trees
mature and come closer to the time of harvesting for timber. Once harvested,
the shares return a monetary profit.
• The shares may also act as a medium of exchange among community
members and, hence, as a complementary currency.
 A type of payment issued in anticipation of future revenue.
Introduction
Policy
Green CCs
Natural Savings
Parallel Planting
PP-CC
Conclusion
Parallel Planting/Planet Positive
Plant indigenous tree varieties alongside fast-growing exotic varieties (presently
grown for firewood and charcoal manufacture). The indigenous trees mature
into standing trees harvested for non-timber forest products, such as medicinal
compounds and essences.
Indigenous tree plantations generate revenue and long-term individual and
corporate investment instruments from the non-timber products, including
carbon offsetting.
Farmers, land owners and community forest associations can profit while larger
socioeconomic and environmental benefits accrue to society.
Investor funded; multiple revenue streams.
Introduction
Policy
Green CCs
Natural Savings
Parallel Planting
PP-CC
Conclusion
Parallel Planting Complementary Currency
Combined, natural savings and parallel planting could operationalise a
formidable tool to realise the advancement of indigenous forest cover and
stewardship.
Parallel Planting Complementary Currency (PP-CC) provides a variety
of favourable returns for forest community residents, land owners and farmers:
a) Short term: issuance of PP-CC in return for growing indigenous trees and
protecting extant (standing) indigenous trees.
b) Medium term: planting, growing and felling of fast-growing exotic tree
varieties selectively planted in parallel with indigenous varieties.
c) Long term: issuance of PP-CC in return for the sowing, cultivation and
conservation of indigenous trees harvested for non-timber products.
Functions: micro-savings, micro-finance and micro-currency.
Introduction
Policy
Green CCs
Natural Savings
Parallel Planting
PP-CC
Conclusion
Conclusion
Environmental – Reduction in forest fragmentation; climate regulation and
watershed management.
Socioeconomic – Injects additional purchasing power through circulation;
encourages savings; longer-term horizons; profitability and scaling up of PP
projects; resilience in diversifying currencies.
Political – Tackles a lack of economic incentives for land owners to participate in
SFM; long-term impact on environmental refugees and resource conflicts.
PP-CC could (a) improve profitability through integration with existing parallel
planting projects, (b) improve economic security in rural communities
dependent on Kenya’s forests for their livelihoods and (c) appeal to investors by
boosting the financial resilience of PP projects.
Introduction
Policy
Green CCs
Natural Savings
Combining Natural Savings and Parallel Planting in Kenya
Parallel Planting
PP-CC
Conclusion
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