Global Forest Resources
Assessment (FRA)
Concepts and
classifications related to
the valuation of forests
FRA - background
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FAO has a mandate to carry out periodic
assessments of the world’s forest resources
First assessment 1946, latest assessment 2005.
The scope has gradually become wider and
classification systems and definitions have evolved
over time
FRA covers both current status and recent trends
(FRA 2010 will cover the period 1990-2010)
Current classifications and definitions
that relate to valuation
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Forest, Other wooded land and Other land
Forest designation and management
Forest characteristics
Forest stocks (volume, biomass, carbon)
FRA covers both current status and
recent trends
Forest - definition
Land spanning more than 0.5 hectares with trees
higher than 5 meters and a canopy cover of more
than 10 percent, or trees able to reach these
thresholds in situ. It does not include land that is
predominantly under agricultural or urban land use.
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Current definition is a combination of tree cover
and land use. Definition has been stable since
2000 and is now globally accepted.
Note that there may be a considerable amount of
trees growing on land that is not classified as
forest.
Other wooded land
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Shrubs and bushes and sub-arctic and
mountain dwarf-tree formations
Not primarily used for agriculture (e.g.
grazing)
Do not produce timber, but in some areas
provides substantial amount of fuelwood
Other land
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Agricultural and urban areas, barren land
May have tree cover – when the tree cover
fulfils the threshold values in the Forest
definition, it is reported as Other land with
tree cover
Other land with tree cover may produce
timber, fuelwood and wood for other
purposes
Forest designation and management
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Designated for production
Designated for protection of soil and water
Designated for conservation of biodiversity
Designated for social services
Designated for multiple use
Area of Permanent Forest Estate
Forest area within protected areas
Forest area under sustainable forest management
Forest area with management plan
Forest characteristics
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Naturally regenerated forests
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Primary forests
Other (with signs of human impact)
...of which of introduced species
Planted forests
...of which of introduced species
NOTE, the concept of semi-natural forests have
been dropped, as it was mostly suited to European
conditions
Forest stocks
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Growing stock (volume of living trees)
Biomass stock (above- and below-ground)
Carbon stock
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in biomass
in dead organic matter
in soil
Carbon and biomass stock estimates based on 2006 IPCC
Guidelines
Specific issues
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Forest types
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has been discussed whether to include or not
difficult to establish a global classification scheme
Forest area available for wood supply
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was part of FRA 2000 and the European
assessments
discarded in FRA 2005 and FRA 2010 as it is very
difficult to apply in developing countries,
particularly in the tropics.
More information…
More information and documentation of
definitions, classifications, etc. can be found
at:
www.fao.org/forestry/fra
Forest Valuation Issues
Classification issues
Forest and other wooded land
Planted forest
Cultivated?
Yes
Naturally regenerated forest
- Other (with sign of human impact)
Yes
- Primary forest
No
Other wooded land
Mostly not relevant for timber value
Trees outside forest
Mostly, yes.
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Statistics on “Forest available for wood supply” are not collected
and are, anyway, largely irrelevant for valuation.
Any forest where there has been some human intervention is
essentially “cultivated” and should be treated as such.
Primary forest is not “cultivated” and, as such, currently has no
timber value.
What can be quantified?
Flows
Stock
Quantity
Value
Quantity
Value
Timber
Yes
Yes
Yes
Yes
(with care)
Carbon
Maybe
?
Yes
?
n.a.
n.a.
Maybe
(surrogates)
?
Yes (weak)
Yes (weak)
?
Probably not
n.a.
n.a.
Yes
Yes
(with care)
Biodiversity
NWFP (including wildlife)
Land
Valuation methodology
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Market value or expectation (NPV) approach:
- Value per ha x number of ha (“micro” approach)
- Will work for countries with good information,
developed forest economy, near full production
For others (Russia, Congo, Indonesia, Brazil):
- Must use a “macro” approach based on timber
harvesting scenarios (which are available)
- Vast areas of these forests have no foreseeable
timber value
Valuation of forest land is largely irrelevant