With ecosystem at stake, the nation's approach to monetising and restoring nature demands careful evaluation and sustainable strategies write BKP Sinha and Arvind Kumar Jha
Compensatory Afforestation (CA) relates to the mitigation of environmental damage caused by the diversion of forest land for non-forestry purposes and is a mandatory requirement for obtaining clearances under the Forest Conservation Act, 1980; now Van (Sanrakshanevam Samvardhan) Adhiniyam (VSSA) 1980 and Rules. The Government of India guidelines state that normally CA must be carried out on a suitable non-forest land equal to the forest area proposed for diversion and for minimizing the adverse impact on the micro-ecology, such land should be located as near as possible to the diverted area. If suitable non-forest land is unavailable, CA may be carried out on degraded forest land equal to twice the area of the diverted forest land. The unavailability of non-forest land in a district is certified by the District Collector and in the exceptional case of its unavailability in the whole state/union territory (UT), the chief secretary has to certify accordingly and CA land may be identified preferably in a neighbouring state/ UT.As regards CA, the Government of India guidelines of 2017 and 2019 emphasised compensation for loss of land by land and that of trees by trees.
They indicate that at least 1000 plants are to be planted in one hectare and in case 1000 plants are not possible to be accommodated, the balance may be planted in some other government forest identified by the state government. The states having more than 75% forest cover, however, are exempted from the task of procuring non-forest land for CA. Their CA can be taken up in states with deficient forest land/cover. As regards size, lands smaller than 5 hectares can also be accepted for CA if it is contiguous to a wildlife conservation area like National Parks and Wildlife Sanctuaries.Area equivalence criterion often leads to an understanding that any forest can be equated with tree plantations of any kind but the concept of Net Present Value (NPV) is additionally used to calculate the worth of diverted forests by attaching a monetary value to a whole range of goods and services provided by them. This amount is recovered from the project proponent.
The World Bank’s 2002 strategy elaborates the NPV to include goods and services like wood and non-wood items, ecosystem services, support to wildlife, climate regulation, soil & water conservation and flood prevention, carbon sequestration, nutrient cycling, health support systems and non-material benefits which may be spiritual, inspirational, recreational, aesthetic, educational etc. Its value thus extends far beyond economics and considering the interest of different stakeholders, the values of different components may also vary, such as the cultural significance of a tree species versus its commercial value as timber.
The January 2022 guidelines of the Ministry of Environment, Forest and Climate Change (MoEFCC) have clubbed the forests of India into six Eco-classes to realize NPV instead of diverted forest land. Out of them, class I includes Tropical Wet Evergreen Forests, Tropical Semi Evergreen Forests, and Tropical Moist Deciduous Forests, while class II contains Littoral and Swamp Forests.
Interestingly, the per hectare value of NPV for both these classes has been kept the same, an equality that appears surprising.It is crucial to arrive at a monetized figure for a unit of Nature/biodiversity and ensure that investing in it will offset the loss caused by diversion. Simultaneous sustainable development of biodiversity is of course a formidable challenge. Accordingly, any oversimplification of biodiversity assessment can lead to inaccuracies and undermine genuine conservation efforts.
The limitations faced in offsetting losses just through CA are amply covered by CAG reports. Unfortunately, the resource position at the world level also, despite the wrath of climate change being faced globally, shows an annual funding gap of about USD 700 billion in nature conservation. Against the above background, the proposed CA and NPV to mitigate the diversion of forest land in the "Holistic Development of Great Nicobar Island" (GNI) project is worth a look. The Rs72,000 crore investment will divert 130.75 sq. km. of forest land for infrastructure development that includes a trans-shipment port, an airport, a power plant, a defence base, an industrial park, and a township.
The project involves the felling of an estimated one million trees with habitat destruction that would also impact the life, livelihood, and forest rights of the Shompen; a particularly vulnerable hunter-and-gatherer tribal group. The MoEFCC claims to have incorporated into the project some exemplary mitigation measures, including compensatory afforestation, into the project in compliance with the provisions of the VSSA 1980 while securing India’s strategic national and defence interests.
Out of the total CA area of 26,000 hectares, locating 24,354 hectares in Haryana is justified by highlighting that planting native species in arid landscapes and near urban areas is of greater ecological value. Talks are said to be on with the Madhya Pradesh government for situating the balanced CA area.The CA in Aravali’s arid/semi-arid region, approximately 2,400 kilometres away, to compensate for the loss of pristine rainforests of Great Nicobar is a significant departure from the guideline regarding the positioning of CA land. Reportedly, the CA with ?3000 crore’s investment is expected to be mostly a revival plan to improve the soil texture and fertility and to make stone boundary walls since the proposed area already has root stock requiring just protection and supplemental planting wherever required.
Indicative of the natural limits imposed by edaphic, geographical, and climatic factors, the Forest Survey of India (FSI) 2021 report on forest status shows that the carbon stock per hectare in A&N forests is fourth highest in the country; next only to Himachal, Sikkim, and J&K while Haryana has the second lowest; next only to Delhi.
This fact does raise questions regarding the possibility and efficacy of compensating adequately Nicobar’s loss of carbon stock and biomass by investing CA money in Haryana. Considering the aspect of NPV, it is worth noting that Nicobar Island forests are more like that of Malaysia and Indonesia while the Andaman Islands' flora is more akin to the species found in Myanmar, Thailand, and Northeast India. FSI’s rapid biodiversity assessment in A&N islands in 2018-19 found that shrubs and herbs together were more than double the number of trees. Many species found there do not occur in mainland India. The understory and emergent layers with profuse regeneration, herbs, and shrubs indicate a vibrant ecosystem wherein approximately half of the mammals, a third of the birds, a quarter of the reptiles, and over a tenth of flowering plants are endemic. A crucible for the habitat rights of the Shompen tribe notwithstanding, it is home to the endangered Nicobar Megapode and Leatherback Turtle, and has over twenty thousand coral reefs in its vicinity. In 1989. The UNESCO declared a significant portion of the island as a biosphere reserve. Despite such uniqueness, distinctive parameters, and ecological significance; its NPV per hectare is exactly equal to the forests in Eco-classes I and II. GIN is just one project.
An in-depth analysis of forest land diversion cases can provide, in addition to actionable issues related to limitations and risks in offsetting just through the prevalent CA and NPV model, important insights into ways to minimize harm to Nature, redeemability of loss to forest ecosystems, correct determination of NPV, efficient investments in Nature recovery and restoration initiatives, handling of habitat rights of the primitive tribes and pre-agricultural communities, and regulations needed to ensure accountability.
Nature’s monetization and biodiversity markets are fast emerging as potential funding sources for conservation. Their effectiveness demands an honest valuation of diverted forests and a strict implementation of conservation strategies. The outcomes depend on those having the power to decide. Only time will tell, but the decisions made today will echo through the annals of history shaping the destiny of our country and of humanity itself.
(The writers are former PCCFs of U.P. and Maharashtra; views are personal)