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PresentationInnovative financial instruments for risk management - Global case studies from WFP's climate risk management programmes 2023
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DocumentEconomic analysis of adaptation options toward drought-induced risk in forest: financial balance and/or carbon balance
XV World Forestry Congress, 2-6 May 2022
2022Also available in:
No results found.Forests provide ecosystem services that contribute to human well-being and reduce social vulnerability. Nowadays, the pace of changes induced by climate change is being too fast for a natural and spontaneous forest adaptation.
Drought is a natural phenomenon affecting forest productivity and health especially when its intensity is extreme. In Europe, trees are suffering from severe water shortage occurring particularly in early summer. While drought is considered as one of the main damaging abiotic risks, its induced impacts on forest health have been underestimated for a very long time due to inconspicuous damage at first sight.
In this context, forests need adaptation to reduce vulnerability to drought-induced dieback and to anticipate and cope with this increasing risk.
Different adaptation strategies were tested and combined through forest-management-based and market-based adaptations using original methods.
This thesis provided the following main results for the considered case studies and under some assumptions. First, the results proved that adaptation is relevant to face drought-induced risk of dieback: Adaptation, both forest-management-based and market-based, provides always the best scenario as opposed to the baseline or the “do-nothing” scenario from an economic perspective. Second, combining forest-management-based adaptation strategies appeared as a relevant way to adapt forests in view of a drought-induced risk of forest dieback. The combination of different strategies was therefore more beneficial for the forest owner than each strategy separately (synergy vs. additionality). However, not all adaptation options appear relevant (i.e. maladaptation). In the same vein, while forest insurance against drought-induced risk can be an option, the low gain of current contracts cannot provide enough incentive for forest owners to adopt these insurance contracts. Keywords: Adaptive and integrated management, Climate change, Research, Sustainable forest management ID: 3482552
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