Moratorium on forest conversion in PNG?

What appear to be official PNG Government documents produced for the Cancun Climate Negotiations and calling for a moratorium on forest conversion, have surfaced online. The plans pose serious threats to agricultural expansion and economic development in PNG.

The documents detail PNG’s attempt to plan and implement REDD-readiness activities for the period 2011 – 2015. Aided by consultants McKinsey & Co., the government plan states that low carbon growth is compatible with a GDP growth of 6 – 7 percent in PNG. It also claims that the country is seeking to reduce emissions by approximately 17 percent by 2015 and will require up to USD 1 billion in international funds to do so.

The plan also contains recommendations for the PNG economy and two of its most important sectors, agriculture and forestry.

The ‘Interim Action Plan’ recommends that a review of all agricultural leases in PNG be pursued immediately with a ‘view to recommending a moratorium and full policy review.’  More specifically, the plan proposes that PNG’s immediate REDD actions include a Government revocation of agricultural leases it considers to have ‘questionable prospects.’

Agricultural leases are legally binding agreements for companies to convert forested land into land developed for more productive economic purposes. In PNG, this often means the development of important plantations such as cocoa, coffee, palm oil and rubber – all of which make meaningful contributions to the economic development of the country, particularly for smallholders

A retrospective moratorium on agricultural leases stands to impact more than 670, 000 ha of land already approved by relevant authorities for conversion to more productive economic activity.

McKinsey’s proposals are similar to recommendations that have been adopted in Indonesia.

They are effectively a call to halt the expansion of agriculture. This will be unpalatable for many developing nations seeking to feed growing populations or provide fuelwood for new households. World food prices are spiking beyond 2008’s record levels, yet NGOs are effectively calling for agriculture – now generally regarded as the major source of deforestation – to limit its growth.

The question for the McKinsey team that came up with this apparent win-win solution is this: who, precisely, is going to head to PNG’s highland areas and tell local land groups that their new agricultural lease has been voided? And, more importantly, who is going to try and stop them clearing land for fuel and food?