Conserving Canada’s Natural Capital: The Boreal Forest

Boreal Futures: Governance, Conservation and Development in Canada's Boreal

Canada’s Boreal region comprises 6 million square kilometers, stretching across the north in seven provinces and all three territories and contains the last natural, original forests remaining in the world. It is a vital part of Canada’s “green account” – the natural capital that makes the country one of the wealthiest in the world. In terms of its environmental importance – as a repository for biodiversity and a counterbalance for carbon emissions contributing to climate change – the Boreal forest compares with South America’s Amazon.

The goal of this program was to examine how to balance conservation with economic activity on lands allocated for resource development in Canada’s boreal forest through regulatory and fiscal policy reform.

The NRTEE’s research emphasized that this precious resource has been affected seriously in recent decades by logging, mining and energy extraction and global warming. Planned, measured, sustainable development of the Boreal is essential to enable these crucial economic activities to thrive while protecting the equally crucial natural environment.

In addition to its key recommendation – a national conference of leaders in 2006 to address the problems facing the Boreal – the NRTEE recommends a practical and effective approach using a variety of market-based economic instruments to promote conservation of the Boreal’s natural capital.

These market-based tools include: tax policy changes and incentives for good practice; “offsets” (requiring enhancement or protection of an area in exchange for development rights in another area); and, conservation easements (permitting third parties to negotiate directly for the right to manage Crown land in the interests of preserving vital biodiversity outputs , such as clean air, water, etc).

Released in October 2005, Boreal Futures: Governance, Conservation and Development in Canada’s Boreal – State of the Debate report is the result of extensive research and multistakeholder input and identifies opportunities for achieving the balance in the region through initiatives in four interrelated areas: leadership, education and information; ecological fiscal reform; innovations in planning and regulatory frameworks; and institution and capacity building.