Reversing Deforestation: Local Resource Ownership Drives Environmental Improvement

Latin American forests have inflected away from losses and toward recovery due to reduced population growth and improved agricultural yields. However, the transition from deforestation to reforestation will rely on local resource ownership, which is a crucial prerequisite for financing carbon sequestration and other ecosystem services provided by forests.

Key Takeaways:

• Latin American forests have receded by 350 million hectares since 1850, but trends are now shifting toward recovery due to reduced population growth and improved agricultural yields.
• Local resource ownership is a critical factor in the transition from deforestation to reforestation, as it enables financing of carbon sequestration and other ecosystem services provided by forests.
• In Costa Rica, private property rights have led to the recovery of forests on many holdings, with landowners now earning income from carbon sequestration, biodiversity conservation, and water protection.
• Traditional holdings belonging to rural communities in Mexico are also enrolled in a national program of payments for environmental services, providing a viable alternative to private property ownership.
• The environmental consequences of open access, where governmental authorities cannot control access to natural resources, can be disastrous, as seen in Nepal where tree cover has spread from 26% in 1992 to 45% in 2016 after the reinstatement of village forests.

Statistics:

• Latin American forests have receded by 350 million hectares since 1850.
• Human population in Latin America grew from 30 million to 650 million or more between 1850 and 2024.
• Annual natural increase in Latin America declined from nearly 3% to less than 1% due to falling fertility rates.
• Soybean yields in Brazil increased by 1.7% annually since 1961, while harvested area grew by 9.1% per year up until 2005.
• Costa Rica's national system of payment for environmental services was established in 1997 and has led to private property owners earning income from carbon sequestration, biodiversity conservation, and water protection.
• Tree cover in Nepal increased from 26% in 1992 to 45% in 2016 after the reinstatement of village forests.

Sources:

• Douglas Southgate and Brent Sohngen, authors of the book "Reversing Deforestation: How Market Forces and Local Ownership Are Saving Forests in Latin America".
• Mongabay.
• World Wildlife Fund (WWF).