A recent report, titled “Cloud Forest Assets: Financing a Valuable Nature-based Solution” by Earth Security, has proposed a ‘Cloud Forest Bond’ to help governments achieve better finance terms in return for protecting valuable natural asset.
What is a cloud forest?
- Cloud forests are mountain (montane) tropical forests, constantly shrouded in clouds, which sit at the headwater of river basins.
- These forests capture moisture from the air providing fresh, clean water to communities and industries, including vital water flows to hydropower plants.
- Over 90 per cent of cloud forests are found in just 25 tropical developing countries which are also called “cloud forest countries”.
- These 25 countries are; Indonesia, Tanzania, Democratic Republic of Congo, Colombia, Peru, Venezuela, Mexico, Papua New Guinea, Brazil, Ethiopia, Ecuador, Cameroon, Bolivia, China, Laos, Kenya, Malaysia, Angola, Uganda, Madagascar, Philippines, Gabon, Vietnam, Republic of Congo and Myanmar.
Key findings of report
- The 979 hydropower dams currently operating in the 25 cloud forest countries, more than half depend on water from cloud forests, representing billions of dollars of electricity production that take nature’s ecosystem services for granted.
- Most of these forests remain unprotected and should be treated by countries as part of their strategic green infrastructure.
- Cloud forests are crucial assets in the net zero transition and should be protected.
- Many cloud forest countries are amongst the world’s poorest economies, facing the prospects of debt distress after the Covid-19 pandemic and the spiralling costs of food and energy imports.
- Without adequate finance, these countries will find it increasingly difficult to prioritise climate and biodiversity in the face of growing economic challenges.
