The recent 70% decline in deforestation in the Brazilian Amazon suggests that it is possible to manage the advance of a vast agricultural frontier. Enforcement of laws, interventions in soy and beef supply chains, restrictions on access to credit, and expansion of protected areas appear to have contributed to this decline, as did a decline in the demand for new deforestation. The supply chain interventions that fed into this deceleration are precariously dependent on corporate risk management, and public policies have relied excessively on punitive measures. Systems for delivering positive incentives for farmers to forgo deforestation have been designed but not fully implemented. Territorial approaches to deforestation have been effective and could consolidate progress in slowing deforestation while providing a framework for addressing other important dimensions of sustainable development.

From 2006 to 2010, deforestation in the Amazon frontier state of Mato Grosso decreased to 30% of its historical average (1996–2005) whereas agricultural production reached an all-time high. This study combines satellite data with government deforestation and production statistics to assess land-use transitions and potential market and policy drivers associated with these trends. In the forested region of the state, increased soy production from 2001 to 2005 was entirely due to cropland expansion into previously cleared pasture areas (74%) or forests (26%). From 2006 to 2010, 78% of production increases were due to expansion (22% to yield increases), with 91% on previously cleared land. Cropland expansion fell from 10 to 2% of deforestation between the two periods, with pasture expansion accounting for most remaining deforestation. Declining deforestation coincided with a collapse of commodity markets and implementation of policy measures to reduce deforestation. Soybean profitability has since increased to pre-2006 levels whereas deforestation continued to decline, suggesting that antideforestation measures may have influenced the agricultural sector. We found little evidence of direct leakage of soy expansion into cerrado in Mato Grosso during the late 2000s, although indirect land-use changes and leakage to more distant regions are possible. This study provides evidence that reduced deforestation and increased agricultural production can occur simultaneously in tropical forest frontiers, provided that land is available and policies promote the efficient use of already-cleared lands (intensification) while restricting deforestation. It remains uncertain whether government- and industry-led policies can contain deforestation if future market conditions favor another boom in agricultural expansion.

Some model experiments predict a large-scale substitution of Amazon forest by savannah-like vegetation by the end of the twenty-first century. Expanding global demands for biofuels and grains, positive feedbacks in the Amazon forest fire regime and drought may drive a faster process of forest degradation that could lead to a near-term forest dieback. Rising worldwide demands for biofuel and meat are creating powerful new incentives for agro-industrial expansion into Amazon forest regions. Forest fires, drought and logging increase susceptibility to further burning while deforestation and smoke can inhibit rainfall, exacerbating fire risk. If sea surface temperature anomalies (such as El Niñ o episodes) and associated Amazon droughts of the last decade continue into the future, approximately 55% of the forests of the Amazon will be cleared, logged, damaged by drought or burned over the next 20 years, emitting 15-26 Pg of carbon to the atmosphere. Several important trends could prevent a near-term dieback. As fire-sensitive investments accumulate in the landscape, property holders use less fire and invest more in fire control. Commodity markets are demanding higher environmental performance from farmers and cattle ranchers. Protected areas have been established in the pathway of expanding agricultural frontiers. Finally, emerging carbon market incentives for reductions in deforestation could support these trends.

Amazon beef and soybean industries, the primary drivers of Amazon deforestation, are increasingly responsive to economic signals emanating from around the world, such as those associated with bovine spongiform encephalopathy (BSE, "mad cow disease") outbreaks and China's economic growth. The expanding role of these economic "teleconnections" (coupled phenomena that take place in distant places on the planet) led to a 3-year period (2002-2004) of historically high deforestation rates. But it also increases the potential for large-scale conservation in the region as markets and finance institutions demand better environmental and social performance of beef and soy producers. Cattle ranchers and soy farmers who have generally opposed ambitious government regulations that require forest reserves on private property are realizing that good land stewardship-including compliance with legislation-may increase their access to expanding domestic and international markets and to credit and lower the risk of "losing" their land to agrarian reform. The realization of this potential depends on the successful negotiation of social and environmental performance criteria and an associated system of certification that are acceptable to both the industries and civil society. The foot-and-mouth eradication system, in which geographic zones win permission to export beef, may provide an important model for the design of a low-cost, peer-enforced, socioenvironmental certification system that becomes the mechanism by which beef and soy industries gain access to markets outside the Amazon.

Government commitments and market transitions lay the foundation for an effort to save the forest and reduce carbon emission.

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Tropical rainforest regions have large hydropower generation potential that figures prominently in many nations' energy growth strategies. Feasibility studies of hydropower plants typically ignore the effect of future deforestation or assume that deforestation will have a positive effect on river discharge and energy generation resulting from declines in evapotranspiration (ET) associated with forest conversion. Forest loss can also reduce river discharge, however, by inhibiting rainfall. We used land use, hydrological, and climate models to examine the local "direct" effects (through changes in ET within the watershed) and the potential regional "indirect" effects (through changes in rainfall) of deforestation on river discharge and energy generation potential for the Belo Monte energy complex, one of the world's largest hydropower plants that is currently under construction on the Xingu River in the eastern Amazon. In the absence of indirect effects of deforestation, simulated deforestation of 20% and 40% within the Xingu River basin increased discharge by 4-8% and 10-12%, with similar increases in energy generation. When indirect effects were considered, deforestation of the Amazon region inhibited rainfall within the Xingu Basin, counterbalancing declines in ET and decreasing discharge by 6-36%. Under business-as-usual projections of forest loss for 2050 (40%), simulated power generation declined to only 25% of maximum plant output and 60% of the industry's own projections. Like other energy sources, hydropower plants present large social and environmental costs. Their reliability as energy sources, however, must take into account their dependence on forests.climate change | land-use planning | electricity | climate policy | forest policy T ropical rainforests are globally significant because of their cultural and biological diversity (1), their productivity (2), and their enormous carbon pools (3). The abundant rainfall that has allowed these ecosystems to develop is also associated with large volumes of river water flow and high potential for the generation of electricity through hydropower dams. As a result of this confluence of rainforests and hydropower potential, many nations with large areas of tropical rainforest-including Brazil, Peru, Colombia, the Democratic Republic of the Congo, Vietnam, and Malaysia-plan to expand their hydropower energy capacity over the next 20 y (4, 5).Hydropower is an attractive energy option for many reasons. It is cheaper than thermoelectric power and most other renewable forms of electricity (6), can provide energy at scale more easily and with fewer disruptions than wind or solar (6), and can potentially provide electrical energy with lower levels of greenhouse gas (GHG) emissions than thermoelectric energy (7), although its effect on methane production could counteract this benefit (8). As with any energy source, hydropower also brings important social and ecological costs. Dam construction and flooding that often accompanies reservoir establishment can negatively affe...

The United Nations climate treaty may soon include a mechanism for compensating tropical nations that succeed in reducing carbon emissions from deforestation and forest degradation, source of nearly one fifth of global carbon emissions. We review the potential for this mechanism [reducing emissions from deforestation and degradation (REDD)] to provoke ecological damages and promote ecological cobenefits. Nations could potentially participate in REDD by slowing clear-cutting of mature tropical forest, slowing or decreasing the impact of selective logging, promoting forest regeneration and restoration, and expanding tree plantations. REDD could also foster efforts to reduce the incidence of forest fire. Potential ecological costs include the accelerated loss (through displaced agricultural expansion) of low-biomass, high-conservation-value ecosystems, and substitution of low-biomass vegetation by monoculture tree plantations. These costs could be avoided through measures that protect low-biomass native ecosystems. Substantial ecological cobenefits should be conferred under most circumstances, and include the maintenance or restoration of (1) watershed functions, (2) local and regional climate regimes, (3) soils and biogeochemical processes, (4) water quality and aquatic habitat, and (5) terrestrial habitat. Some tools already being developed to monitor, report and verify (MRV) carbon emissions performance can also be used to measure other elements of ecosystem function, making development of MRV systems for ecological cobenefits a concrete possibility. Analysis of possible REDD program interventions in a large-scale Amazon landscape indicates that even modest flows of forest carbon funding can provide substantial cobenefits for aquatic ecosystems, but that the functional integrity of the landscape's myriad small watersheds would be best protected under a more even spatial distribution of forests. Because of its focus on an ecosystem service with global benefits, REDD could access a large pool of global stakeholders willing to pay to maintain carbon in forests, thereby providing a potential cascade of ecosystem services to local stakeholders who would otherwise be unable to afford them.