August  2014

Volume: 6 Issue: 8

 
The Last Stand
Amakahi
 These birds can be found is right here on the slopes of Mauna Kea.
Photo courtesy of Jack Jeffrey
 
 
Help provide a home for our native birds. Adopt a Koa Legacy Tree today.
 
Entreeprenuer Corner     Jeff Dunster A
By Jeff Dunster, CEO    

Photograph of legacy forest after the storm

Tree Update:

 

 

Saviva Research Review

Global Tropical Hardwoods Market

 

Saviva Research  
March, 2013

 

The Sustainable Forestry Investment Space

 

For a value investor sustainable forest, products, pose  number of interesting opportunities. Much of the world's temperate forest plantations are already owned by large pension funds seeking to match long-dated liabilities with long-dated income as reliable as tree growth. For smaller investors seeking productive assets with higher return profiles, appearance grade hardwood used in flooring, furniture, cabinetry framing, boats, musical instruments and a variety of other consumer facing products represents the most valuable segment of the lumber industry. This is particularly true for premium tropical hardwoods such as African mahogany, teak and Brazilian cherry (aka Jatoba). This report will explore the various macro drivers influencing forest product demand, supply, and pricing and will focus on the most valuable market segment; tropical sawn hardwood.

 

Seeing the forest through the Trees

 

The global demand for wood, in all of its myriad forms, amounts to approximately 3.8bn cubic meters per annum. For the sake of visualization, the "average" person in the world will use enough wood to fill a small living room of 35 cubic meters throughout their lifetime. Of course such a per capita statistic can be tremendously skewed by global income and consumption distributions. In dollar terms, this gross wood demand amounts to an estimated $600bn per annum - a contribution towards global PDP of around 0.8%-1%.

 

When it comes to climate impacts however, the forestry sector plays a more central role. According to the Food ad Agriculture Organization of the United Nations (UNFAO), deforestation and unsustainable forest management practices currently contribute to roughly one-sixth of global carbon emissions. Additionally, forests have the potential to absorb ten percent of projected carbon emissions in the first half of the century. Thus, proper forest management combined with the sequestration  of carbon in long-lived wood products and building materials may be a favored tool of policymakers to substantially combat climate change. This implies negative policy risk and favored tool of policymakers to substantially combat climate change. This implies negative policy risk and favorable long-term secular trends for investors in the sustainable forestry space.

 

Click here for full article:Saviva Research Review

 

             From The Field         Darrell Fox A1 

By Darrell Fox, COO        

.

DEEP ECOLOGY

Multi-species Reforestation, Stability and Complexity

In a recent discussion the topic of Deep Ecology came up.  This concept focuses our attention on the fact that humans are not outside observers of the natural world, but are very much a part of it.  The goal of this type of thought is to accept the intrinsic value of all species in an ecosystem, not just those of immediate economic value.  It also focuses our awareness on how human actions, both individual and collective, impact the natural world every species depends on.  In the field of physics this concept is embodied in the uncertainty principle or the observer effect.  In the field of ecology we are participating components not just observers.

Much of human progress has hinged on our ability to select economically valuable species for cultivation and grow them at high densities in mono-crop environments.  My formal education was in marine microbial ecology.  At the time I was in graduate school there was much interest in growing oil rich algae at commercial densities.  The oil shortages of the 1970's were in full swing.  Interest continued even after that particular oil crisis abated since the ability to grow algae as a crop suggested other applications such as commercial culture of clams and oysters.  Anyone who has done this type of work has dealt with the inherent instability of simple biological systems.  In short, population levels tend to oscillate and crash.  Aquaculture has battled this demon since its inception.  We would joke about the old adage that you can recognize a pioneer because he is the one with the arrows sticking out of his back.  In its pioneering days, commercial agriculture spent thousands of years trying to resolve the problem of mono-crop stability and to this day relies heavily on chemical fertilizers, pesticides and herbicides to manage unstable situations.

This brings us to the question of why we would bother with planting dozens of indigenous and endemic species in our reforestation effort when they have little or no economic value.  The centerpiece of the HLH model is koa, a tree of high economic value.  One could argue that sandalwood may have future economic value, but you would be hard pressed to put a dollar value on most of the shrubs and ground covers that are being established throughout the Legacy Forest. To my mind, their value is intrinsic in the complexity they bring to the environment.  Many of these plants provide forage for native birds, but other roles they may have in the environment are not as easily catalogued. 

A lot of research has supported the idea that more complex ecosystems are inherently more stable.  The reasons for this are not always clear.  It is easy to understand why a system with one prey species and one predator species would be unstable, but why would this be true for plants alone?  In a climax forest the relative numbers of the different plant species change very little with time.  These systems tend to be more resistant to pests and catastrophic collapse.  In a way, the mix of native species is sort of an insurance policy or safety net.  Ultimately we are not building a native ecosystem, it is self-assembling.  By planting a wide variety of plants that once were found on the site, we are providing raw materials for natural selection to find its way to a complex and stable ecosystem.  Historical records give us some guidance as to what was here in the past, but what will be here in the future is harder to predict.  Climate change will continue to change what the new balance of species will be.  The only thing we can do as stewards of the land is to provide a diverse pallet of species for the environment to work on.  Now we get to see what nature will do with them.

A couple of books were key in articulating these concepts.  The earliest was Alfred J. Lotka in "Elements of Mathematical Biology" published in 1925.  In 1973 Robert M. May explored the question further in "Stability and Complexity in Model Ecosystems".   

Weathering the Storm

Hawaii Island has stood in the path of tropical storms for a half a million years.  The diverse ecology found in its native forests evolved with the backdrop of those storms exerting its relentless selective pressure.  Early in August we had a tropical storm make landfall on Hawaii Island.  Within our project area we had only minor signs of the storm's passing.  The high rainfall was a welcome addition to what are normally dry summer months. 

Eucalyptus photo taken after the storm Iselle August 26, 2014

The wind damage was primarily to non-native trees such as Eucalyptus.  Eucalyptus trees were blown onto roads and power lines creating more inconvenience than catastrophe.  In other parts of the island, the story was the same.  Native forests have the composition they have because they can withstand occasional brushes with tropical cyclones.

This has been a great year to be a tree.  Over the years we have found that established koa trees can withstand considerable drought conditions.  We've also discovered that given even moderate rainfall during the summer months they will grow before your very eyes.  This has been that kind of year.  Some crew members, like the nursery crew, only get out into the field once in a while.  Every one of them has been amazed at the changes from visit to visit.

Koa photo taken after storm Iselle August 26, 2014

If you haven't been here in a while, you also will be amazed at the growth.  Book a tour and bring a raincoat.

http://www.hawaiianlegacytours.com 

dfox@hlh.co 

Gold Standard Says It Can Now Value The Co-Benefits Of Your Carbon Buck
 
Ecosystem Market Place
By: Kelly Hamrick
May 15, 2014
The Gold Standard has always touted the social and environmental "co-benefits" of its certified carbon mitigation projects, which are key in obtaining above-average offset pricing. Now it claims to have the numbers to back that up - which it hopes will strengthen the value proposition for voluntary offset buyers while influencing policy discussions at the global scale.

15 May 2014 | Last year, a study unveiled in Nature made a seemingly simple connection: switching away from fossil fuels can reduce air pollution and save lives. Instead of rehashing familiar ground, the research took this proposition one step further. Using a statistic called the "Value of Statistical Life," which measured how much individuals would pay to reduce fatal risks, the study found that every tonne of CO2 not emitted was worth an average $50-$380. In this way, switching away from fossil fuels not only saves lives - it can also save money.

When The Gold Standard came across this study, they immediately thought of the applications to their work, given that carbon mitigation projects seeking The Gold Standard certification must demonstrate their "co-benefits" - the additional environmental, social (e.g. health), or economic benefits accompanying a carbon project. In fact, The Gold Standard was created over ten years ago in response to the Clean Development Mechanism's lack of sustainable development criteria for certifying international carbon offset projects under its jurisdiction.

Fast forward to today, as the Gold Standard just unveiled their new study The Real Value of Robust Climate Action: Impact Investment far Greater than Previously Understood. The study, published by NetBalance and commissioned by the Gold Standard, examined 109 projects certified to the standard - and found that their co-benefits contributed an estimated $686 million in additional annual value tied to their environmental, economic and social initiatives. 
 
 

Click here for full article:Gold Standard Says
Miss Hawaii Stephanie Steuri 
 On Her Way To 
Miss America 2015 
Miss Hawaii 2014 "Stephanie Steuri" continues the tradition of planting a koa legacy tree for each state contestant participating in the Miss America pageant
Miss Hawaii 2014 Stephanie Steuri Plants Legacy Tree
Miss Hawaii 2014 Stephanie Steuri
Plants The "Miss Hawaii Legacy Tree"
Please take a moment to support Stephanie as she represents Hawaii in Atlanta. Vote for Stephanie to be in the top 15 at the Miss America 2015.

Click here to vote Miss Hawaii for Miss America


Tune in to ABC live September 14th to watch the new
 Miss America 2015

 
In This Issue
Entreepreneur Corner
Saviva Research Review Global Tropical Hardwoods Market
From The Field
Gold Standard Says It Can Now Value The Co-Benefits Of Your Carbon Buck
Miss Hawaii Stephanie Steuri On Her Way To Miss America 2015
 MONTHLY  
QUOTE:
  
"So neither the one who plants nor the one who waters is anything, but only God, who makes things grow.."

1 Corinthians 3:7 
 ____________


 

Fun Facts:

August, this year, had 5 Fridays, 5 Saturdays and 5 Sundays.  
This happens only once every 823 years. The Chinese call it "Silver pockets full."

HLH crew calls it 

"Half a month off Hooray!"

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