World Trends Outlook: Climate Change Report Issue 9: Curbing Deforestation and Forest Fires - Companies Need to Face Forest Complexity (June 2025)

Overview

This article comprehensively analyzes the importance of forest conservation in climate change measures and specific actions companies should take. ## Main Points ### 1. Severe Current State of Deforestation - Annual forest loss area: 10 million hectares (about 1/4 of Japan's land area) - Contribution to CO2 emissions: 10-12% of global emissions (approximately 5.5 GtCO2) - Main causes: Agricultural conversion 80%, illegal logging 15%, forest fires 5% - 2010-2020 lost area equivalent to 65 times Tokyo's area ### 2. Intensification of Forest Fires - Frequency: 30% increase over the past 20 years - Affected area: Average 7.5 million hectares annually - Vicious cycle with climate change: Drying → Increased fires → CO2 emissions → Warming - Large-scale fires in Canada and Australia having global impact ### 3. Impact and Opportunities for Companies - Supply chain risks: Difficulty in procuring forest-related products - Strengthening regulations: EU Forest Due Diligence Regulation (implemented in 2024) - Carbon credit market: $10 billion annual scale for forest conservation - Investor pressure: Increased disclosure requirements for TNFD in addition to TCFD ### 4. Specific Corporate Response Measures - Establish traceability: Confirm zero deforestation using satellite data - Obtain certification: Third-party certification such as FSC, PEFC - Forest regeneration investment: Participation in nature-based solutions - Supplier cooperation: Support sustainable agriculture for small farmers ### 5. 2030 Roadmap - Zero deforestation target: 141 countries signed but only 23 showing progress - Required investment amount: $200 billion annually needed (currently $30 billion) - Technological innovation: Upgrade AI/satellite forest monitoring technology - Financial mechanisms: Expansion of green bonds and forest bonds The article recommends viewing forest conservation as an "investment" rather than a "cost," arguing that corporate value enhancement and global environmental protection can proceed in parallel.

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This article comprehensively analyzes the importance of forest conservation in climate change measures and specific actions companies should take.

Main Points

1. Severe Current State of Deforestation

  • Annual forest loss area: 10 million hectares (about 1/4 of Japan's land area)
  • Contribution to CO2 emissions: 10-12% of global emissions (approximately 5.5 GtCO2)
  • Main causes: Agricultural conversion 80%, illegal logging 15%, forest fires 5%
  • 2010-2020 lost area equivalent to 65 times Tokyo's area

2. Intensification of Forest Fires

  • Frequency: 30% increase over the past 20 years
  • Affected area: Average 7.5 million hectares annually
  • Vicious cycle with climate change: Drying → Increased fires → CO2 emissions → Warming
  • Large-scale fires in Canada and Australia having global impact

3. Impact and Opportunities for Companies

  • Supply chain risks: Difficulty in procuring forest-related products
  • Strengthening regulations: EU Forest Due Diligence Regulation (implemented in 2024)
  • Carbon credit market: $10 billion annual scale for forest conservation
  • Investor pressure: Increased disclosure requirements for TNFD in addition to TCFD

4. Specific Corporate Response Measures

  • Establish traceability: Confirm zero deforestation using satellite data
  • Obtain certification: Third-party certification such as FSC, PEFC
  • Forest regeneration investment: Participation in nature-based solutions
  • Supplier cooperation: Support sustainable agriculture for small farmers

5. 2030 Roadmap

  • Zero deforestation target: 141 countries signed but only 23 showing progress
  • Required investment amount: $200 billion annually needed (currently $30 billion)
  • Technological innovation: Upgrade AI/satellite forest monitoring technology
  • Financial mechanisms: Expansion of green bonds and forest bonds

The article recommends viewing forest conservation as an "investment" rather than a "cost," arguing that corporate value enhancement and global environmental protection can proceed in parallel.

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