U.S. Markets open in 4 hrs 49 mins

Paying countries not to chop down forests works, study shows

La forêt amazonienne au Guyana, le 20 octobre 2006 (AFP Photo/JODY AMIET)

Washington (AFP) - When Norway decided a decade ago to pay Guyana, a small jungle-covered country in South America, to reduce its rate of deforestation, no one was sure how much effect the move would have.

Now they know it does work, according to a study published Monday in the United States.

This type of international program -- money for forests -- has appeared in numerous forms since 2000, and is generally known by the acronym REDD+, standing for Reducing Emissions from Deforestation and Forest Degradation.

Since forests are carbon sinks, owing to the process of photosynthesis, cutting down a tree is the equivalent of emitting harmful greenhouse gases.

These days, thanks to satellite imaging, it is possible to count with fine resolution the number of acres being cut down in a specific region.

In 2009, Norway pledged $250 million if Guyana limited its annual deforestation rate to 0.056 percent between the years 2010 and 2015. The study shows that the tiny country succeeded in achieving that goal.

The target rate was in fact higher than the deforestation observed in the previous decade (0.036 percent) but the observers calculated that the Norwegian contract had, in reality, permitted the country to reduce tree loss by 35 percent against what could have been expected had the deal not existed.

That amounted to a saving of 12.8 million tons of carbon emissions, according to the report carried out by Boise State University researchers and published in the Proceedings of the National Academy of Sciences.

The researchers calculated that without the Norwegian pledge, the rate of deforestation would have greatly increased thanks to an explosion in the price of gold, whose mining is the main cause of tree-clearance in Guyana.

The researchers created a "counter-factual" scenario basing deforestation rates on what went on in other comparable countries, such as neighboring Surinam.

The government in Guyana had more financial incentives to control the activity of gold prospectors who would otherwise have cleared forests, because the Norwegian payment was worth more than what it might have expected from the gold trade, the authors of the study said.

Another proof for the efficacy of the project was that after the contract ended in 2015, deforestation in Guyana rapidly increased. While the deal was in force in Guyana, deforestation across the border in Surinam went up as gold-prospectors went there instead.

In September, Norway signed a new type of deal with Gabon: under this more stringent contract, the African state will be paid for the number of tons of carbon it does not emit, compared to a recent average. Gabon will receive $10 for every ton of carbon it does not release into the atmosphere, and will only be paid based on the results.

icon/AB/jh/dw

  • The Northern Technologies International (NASDAQ:NTIC) Share Price Is Up 102% And Shareholders Are Boasting About It
    Business
    Simply Wall St.

    The Northern Technologies International (NASDAQ:NTIC) Share Price Is Up 102% And Shareholders Are Boasting About It

    For example, the Northern Technologies International Corporation (NASDAQ:NTIC) share price has soared 102% in the last three years. Also pleasing for shareholders was the 15% gain in the last three months. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report.

  • Hedge Funds Are Crazy About ResMed Inc. (RMD)
    Business
    Insider Monkey

    Hedge Funds Are Crazy About ResMed Inc. (RMD)

    A couple of the most useful methods are hedge fund and insider trading signals. We have shown that, historically, those who follow the best picks of the top money managers can outclass their index-focused peers by a healthy margin (see the details here). Unlike the largest US hedge funds that are convinced Dow will soar past 40,000 or the world's most bearish hedge fund that's more convinced than ever that a crash is coming, our long-short investment strategy doesn't rely on bull or bear markets to deliver double digit returns.

  • Here's Why I Think Ping An Insurance (Group) Company of China (HKG:2318) Might Deserve Your Attention Today
    Business
    Simply Wall St.

    Here's Why I Think Ping An Insurance (Group) Company of China (HKG:2318) Might Deserve Your Attention Today

    In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Ping An Insurance (Group) Company of China (HKG:2318). How Quickly Is Ping An Insurance (Group) Company of China Increasing Earnings Per Share? Impressively, Ping An Insurance (Group) Company of China has grown EPS by 36% per year, compound, in the last three years.

  • 'It's really over': Corporate pensions head for extinction as nature of retirement plans changes
    Business
    USA TODAY

    'It's really over': Corporate pensions head for extinction as nature of retirement plans changes

    The practice of companies sending monthly retirement checks to their former workers is headed for extinction, and remaining pension funds are in tough financial shape. Nearly two-thirds of pension funds are considering dropping guaranteed benefits to new workers within the next five years, according to a human resources consulting firm that studied the matter. Despite gains in the stock market this year, U.S. pension plans are near their worst financial state in two years, according to the new report by Mercer, which casts a spotlight on the escalating cost of past promises to employees.

  • Pentair plc (PNR): Are Hedge Funds Right About This Stock?
    Business
    Insider Monkey

    Pentair plc (PNR): Are Hedge Funds Right About This Stock?

    That's why we believe it isn't a waste of time to check out hedge fund sentiment before you invest in a stock like Pentair plc (NYSE:PNR). Is Pentair plc (NYSE:PNR) an excellent investment now? Hedge funds are in an optimistic mood.

  • Here’s What Hedge Funds Think About MDU Resources Group Inc (MDU)
    Business
    Insider Monkey

    Here’s What Hedge Funds Think About MDU Resources Group Inc (MDU)

    Is MDU Resources Group Inc (NYSE:MDU) a good bet right now? There is not a shortage of news stories covering failed hedge fund investments and it is a fact that hedge funds' picks don't beat the market 100% of the time, but their consensus picks have historically done very well and have outperformed the market after adjusting for risk. MDU Resources Group Inc (NYSE:MDU) shares haven't seen a lot of action during the third quarter.

  • Business
    Financial Times

    Deutsche Bank raises revenue target for investment bank

    Deutsche Bank chief executive Christian Sewing has raised the medium-term revenue target for his struggling investment bank and now targets an average growth of 2 per cent over the coming three years, a presentation for the lender's capital markets day shows. In July, Mr Sewing warned that investment bank revenue would remain flat between 2018 and 2022 and argued that less volatile businesses such as retail banking and asset management over time would become more important. Deutsche Bank's capital markets day will kick off at noon, but the lender in the morning published the presentation on its website.

  • Target COO John Mulligan reflects on how change led to company's 2019 success
    Business
    Yahoo Finance Video

    Target COO John Mulligan reflects on how change led to company's 2019 success

    Target is Yahoo Finance's 2019 Company of the Year. Yahoo Finance Editor-in-Large Brian Sozzi sat down with COO John Mulligan.

  • Here is What Hedge Funds Think About Check Point Software Technologies Ltd. (CHKP)
    Business
    Insider Monkey

    Here is What Hedge Funds Think About Check Point Software Technologies Ltd. (CHKP)

    We at Insider Monkey have gone over 752 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of September 30th. In this article, we look at what those funds think of Check Point Software Technologies Ltd. (NASDAQ:CHKP) based on that data. Check Point Software Technologies Ltd. (NASDAQ:CHKP) was in 20 hedge funds' portfolios at the end of the third quarter of 2019.

  • Here’s how much stock you should own when you retire
    Business
    MarketWatch

    Here’s how much stock you should own when you retire

    But once you get there, the only certainty is that you'll have to draw down the assets you've accumulated in your traditional IRAs and 401(k)s through required minimum distributions (RMDs) starting the year after you turn 70½. Before you retire, you should see a reputable financial planner to sort it all out, but many investment advisers are stuck in old thinking and conventional wisdom about how to invest it. So, I'm going to suggest how you can do it yourself.

  • Business
    Reuters

    Constellation tightens grip on Canopy with CEO appointment

    Constellation Brands Inc finance head David Klein will take over in January as chief executive officer of pot producer Canopy Growth Corp , hardening up the Corona beer maker's control of a company into which it has sunk $4 billion. Klein was appointed Canopy chairman in October after Constellation booked a $430 million net loss related to the company. He replaces Mark Zekulin, who became the company's sole head after co-CEO Bruce Linton resigned in July.

  • Why Donald Trump Could Still Resign
    Politics
    Time

    Why Donald Trump Could Still Resign

    Resignation has always been a small-odds proposition for this egocentric President, but today the stars are more aligned for that result than ever before. Like in the Nixon case, the primer to the resignation bullet is in the hands of the Supreme Court. In Nixon, the President's lawyers defended against a subpoena for Oval Office tapes on the grounds of executive privilege.

  • Pizzeria Locale restarts growth with 1st new Colorado store since 2014
    Business
    American City Business Journals

    Pizzeria Locale restarts growth with 1st new Colorado store since 2014

    But brand director Chris Donato believes that the restaurant has nailed its successful formula when it comes to food and operations, even if it didn't have the infrastructure set up to grow as fast as it wanted to outside the borders of Colorado. And so, patrons who meander into the new store at 7505 E. 29th Place are going to recognize the exact same menu as its other two Denver locations and a similar commitment to serving local beer and spirits, along with a newfound focus on pick-up and delivery orders that's necessitated just a couple of workflow changes.

  • Saudi Arabia Isn’t Getting Bullish About Oil for 2020 Budget
    Business
    Bloomberg

    Saudi Arabia Isn’t Getting Bullish About Oil for 2020 Budget

    A year after a rare bullish call on oil, Saudi Arabia isn't counting on much of an uplift from crude prices in 2020. The world's biggest oil exporter has designed next year's budget under the assumption that Brent will average about $65 per barrel, according to calculations by Ziad Daoud, Bloomberg's chief economist in the Middle East. EFG Hermes puts the budget's assumed oil price at $60 to $62, while Capital Economics has it between $55 and $60.

  • Global ETFs accumulate a record $6T in assets under management
    Business
    Yahoo Finance Video

    Global ETFs accumulate a record $6T in assets under management

    Global ETFs have accumulated a record $6T in assets under management. Yahoo Finance's Seana Smith and ETF Trends CEO Tom Lydon discuss.

  • Hedge Funds Have Never Been This Bullish On Castlight Health Inc (CSLT)
    Business
    Insider Monkey

    Hedge Funds Have Never Been This Bullish On Castlight Health Inc (CSLT)

    Castlight Health Inc (NYSE:CSLT) investors should be aware of an increase in hedge fund interest of late. Our calculations also showed that CSLT isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video below for Q2 rankings). Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.

  • Is There An Opportunity With Constellation Brands, Inc.'s (NYSE:STZ) 42% Undervaluation?
    Business
    Simply Wall St.

    Is There An Opportunity With Constellation Brands, Inc.'s (NYSE:STZ) 42% Undervaluation?

    Today we will run through one way of estimating the intrinsic value of Constellation Brands, Inc. (NYSE:STZ) by estimating the company's future cash flows and discounting them to their present value. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

  • Hedge Funds Have Never Been This Bullish On Pan American Silver Corp. (PAAS)
    Business
    Insider Monkey

    Hedge Funds Have Never Been This Bullish On Pan American Silver Corp. (PAAS)

    That's why we believe it would be worthwhile to take a look at the hedge fund sentiment on Pan American Silver Corp. NASDAQ:PAAS) in order to identify whether reputable and successful top money managers continue to believe in its potential. Is Pan American Silver Corp.

  • U.K. Election Is One Pit Stop in Long Brexit Road for Pound, Markets
    Business
    Bloomberg

    U.K. Election Is One Pit Stop in Long Brexit Road for Pound, Markets

    Sterling's rally will be limited even if U.K. Prime Minister Boris Johnson wins a parliamentary majority in the general election and finds a way to pass the withdrawal bill by Jan. 31. Any longer-term economic and Brexit uncertainty can increase the chance of a Bank of England rate cut next year, which would weigh on the currency and prop up gilts.

  • Tullow Fails Corporate Governance 101
    Business
    Bloomberg

    Tullow Fails Corporate Governance 101

    Oil and gas production in 2020 and beyond will be much lower than previously forecast, Tullow says. Free cash flow will be around $150 million annually, against previous expectations of $500 million. The company's chair, Dorothy Thompson, will now run things temporarily.

  • With Heineken and others ceasing production, Minnesota’s 3.2% beer supply is running dry
    Business
    American City Business Journals

    With Heineken and others ceasing production, Minnesota’s 3.2% beer supply is running dry

    Two major beer producers recently announced they will stop making 3.2% alcohol beer now that Minnesota is the only state with a 3.2 beer law still on the books. Since mid-October, both Heineken USA and Constellation Brands, which produces Corona, have announced the immediate end of 3.2 beer production for the U.S. market. The companies shared the news in separate letters to the Minnesota Grocers Association.

  • 'Stuff happens': What Disney did when Disney+ rollout struggled
    Business
    American City Business Journals

    'Stuff happens': What Disney did when Disney+ rollout struggled

    When Disney+ launched four weeks ago, The Walt Disney Co. wasn't the happiest place on Earth as widespread reports of problems logging onto and using the new streaming service marred the launch of the direct-to-consumer platform. Disney+ Vice President of Product Michael Cerda got grilled a little bit on the rollout at Variety's Innovate Summit last week, not so much about what happened — Kevin Mayer, chairman of direct-to-consumer and international for Disney, had already addressed that — but whether it was avoidable and what to do when problems arise. It was those 10 million sign-ups, plus a "coding issue," that led to Disney+'s troubled launch, Mayer said last month.

  • 6 Companies With High Dividend Yields
    Business
    GuruFocus.com

    6 Companies With High Dividend Yields

    Its financial strength is rated 3 out of 10. The equity-asset ratio of 0.27 is underperforming 70% of competitors. The company's largest guru shareholder is Hotchkis & Wiley with 1.94% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.79% and Pioneer Investments (Trades, Portfolio) with 0.12%.

  • Hedge Funds Aren’t Crazy About Arista Networks Inc (ANET) Anymore
    Business
    Insider Monkey

    Hedge Funds Aren’t Crazy About Arista Networks Inc (ANET) Anymore

    It seems that the masses and most of the financial media hate hedge funds and what they do, but why is this hatred of hedge funds so prominent? Truth be told, most hedge fund managers and other smaller players within this industry are very smart and skilled investors. Conversely, hedge funds' top 20 large-cap stock picks generated a return of 37.4% during the same 11-month period, with the majority of these stock picks outperforming the broader market benchmark.

  • Lidl doubles down on regional expansion with acquisition of Shoppers stores
    Business
    American City Business Journals

    Lidl doubles down on regional expansion with acquisition of Shoppers stores

    Lidl is looking to fill the void being left by Shoppers. While Shoppers' parent company United Natural Foods Inc. (NYSE: UNFI) continues its effort to shed its retail portfolio, German discount grocer Lidl is expanding its presence in the region — and the United States more broadly — with plans to acquire six properties in Maryland and Virginia. Greater Washington has an extremely competitive grocery market, said Ray Schupp, principal at Bethesda-based H&R Retail.