Author: Abdulla Al Mamun.
Abstract
Almost half of the world-extracted wood from forests is used to generate energy. That energy mostly uses for cooking and heating in most of developing countries, even more, it uses to generate electricity in some of the Industrialized countries. In Africa as high as 90 percent of energy come from harvested wood, where in Asia it is more then 60 percent. It is estimated that the amount wood used as fuel all over the world just only 17 percent is converted to charcoal (Gilmour, D., 2016). However, there is an increase in demand seen in urban centres and by enterprises due to the absence of accessible alternative energy sources. In all aspects, global charcoal production is on rising in coming decades. However, the charcoal industries that largely consider as informal produce income for more than 40 million people. Out of any doubt lack of regulation will lead inefficiency and government forgo of billions of dollars in revenue. This report will present the contribution of charcoal production in economics and technological development as well as will consider the recent regional implications in terms of sustainable and green environment.
Introduction:
Charcoal has been the oldest source of energy still consider as a modern source of energy for cooking in both rural and urban areas. Half of the world’s population use biomass fuels for cooking and that in the 90s (Kammen and Lew 2005). Extensive use of charcoal is widely seen in Southeast Asia involving 16 countries, including India, Philippines, Indonesia, Nepal, Pakistan, and Myanmar. Also, most of the African country fully depends on charcoal in their daily livings by means these sectors contribute as earning source to them. The charcoal sector has largest potential to help alleviate poverty and contribute to domestic economics by implying an environment-friendly large number of people employed in this sector and its economic value (World Bank, 2011). However, under the Paris agreement, 2015 world leader confronts the urgency of climate change mitigation that applies to all regional environment-friendly Charcoal production to make sure the stability of economic success under charcoal production.
Methodology:
This paper generates based on the result of literature review, web studies, a progressive map of the charcoal value chain based on recorded data and consultation of experts and policymakers.
Industrial production of charcoal in the different region:
Expert has expected the demand for charcoal will grow in coming decades. The lack of alternative fuels mostly in low-income countries contributes to a dependence on charcoal (Sole et al, 2018). Appendix 1 shows wood charcoal production, worldwide and by region (Africa, Asia and South America) that has an increasing trend for Africa and the world for almost in every decade. However, Asia and South America have a slide flat trend contribution to the rising trend. Appendix 2 shows that topmost countries to produce charcoal in the then year 2015, Brazil lead the list by producing more than 6 million tens ahead of all other countries. Most countries listed on the top are from Africa where India has the highest production of almost 3 million tones ahead of China. Brazil only listed country in South Amthrough the total production of the country is more than two other top countries in Asia. FAO estimated that the global charcoal production rose by 19 percent in the year 2015 and by 46 percent in the last two decades (FAO, 2016). In Africa charcoal consumption outpaced population growth, study show that in Kenya national charcoal consumption grow by 5 percent per year in 2004 to 2013, which was higher than the rate of the urbanization (Iiyama et al., 2014) and recorded population growth was 2.7 percent in that period. As long as urbanization increase in that continent the consumption of charcoal increase tremendously. Apart from Africa annual charcoal production in India, Thailand, Indonesia and the Philippines in Asia has increased except China. According to FAO total increase recorded as 56 percent from the year 1990 to 2015. In the other hand, Latin America considered as second after Africa in total and par capital charcoal use (FAO, 2016). However, most of the charcoal is used in industry rather than household consumption like Africa. Only in Brazil more then 90 percent of wood-based charcoal is used in the industry, with metallurgical industry consuming more than 80 percent (GIZ, 2015).
Economic contribution of charcoal in different region:
The charcoal market valued 5.8 thousand million dollar in 2017 and is projected to grow. The growing demands driven by use of metallurgical fuel in the metal and mining industries. Globally, Latin America holds almost 45 percent share in terms of value in the total charcoal market in year 2017. Charcoal is widely used in the production of steel, ferroalloys, aluminum, lead, cast iron, tin, copper, and some other rare metals. Also technological development plays extensive influence in use of clean and renewable energy resources. Growing industrialization all over the world demands more use of charcoal. Also charcoal industry generates more jobs for women in the low-income countries, which play a vital role in the economy. However, women are paid more little than their male coworkers. That cash income from the industry helps low earned households to pay for basic needs such as food, medical care and education fees. A study in Uganda, for example, found that the involvement of households in charcoal production reduced the likelihood they would fall below the poverty line by about 14 percent (World Bank, 2011). According to SITC (Standard International trade classification) appendix 3 and 4 most countries listed in export-import are from Asia. The total export-import market valued at 1.27 billion US dollar. Indonesia tops the list with almost 17 percent of total export share following with China 12 percent, Malaysia and Vietnam with 4.2 and 3.2 percent of market share accordingly. In Europe Poland lead the list with 7.2 percent of total market share following the trend Ukraine and Belgium remain in the nest to the list with 4.3 and 2.3 total export market share. Even though Africa considered being most charcoal produce region they only contribute a little to the total world export market with listing Nigeria on the top of the list with only 4 percent of the market share where the whole region contributes only 11 percent. However, country like Japan, South Korea and Saudi Arabia lead the import charcoal industry. Japan and South Korea apparently import 9.3 percent and 8.2 percent of the total marked recorded of 1.27 billion in Appendix 4. In total Asia and Europe import 90 percent of the charcoal where United States of America holds most of import in North America. Africa just imports 1.5 percent of the rest where the rest divided in North and South America. With the export and import pattern draws a vital use trend of charcoal use in different region, most of African country charcoal users are high as it provides a reliable, convenient and accessible source of energy for cooking at a stable cost. While electricity and gas may be desire fuel of daily household cooking but most of the urban people cannot effort it widely, which lead them to depend on. As of the domestic use are so high they played a little role in world export industry. In Asian countries with low livelihood mostly depend on charcoal for they’re daily cooking. However, most develop country like Japan and South Korea, Brazil, and United States mostly use charcoal in their industries. Since the use of charcoal is vital to some region it is wise to have a sustainable production policy to wipe out the odds.
Socio-economic impact of charcoal:
The charcoal production phase operates in a multilayered, extreme regulatory environment. The needs of regulated government policy are obvious to attract the investments needed to manage improved charcoal production technologies, within the interface of national energy, forest and land use mechanisms. Upon the expected rise in the charcoal consumption in some countries in coming decades, charcoal and its integration with existing natural resources are extremely obvious. Potential government policy must take to reduce the carbon emission. Countries with a high level of charcoal uses must come up with greening the charcoal production in national level. Using the unsustainable charcoal production can increase climate change that could affect the productivity and sustainability of forest and woodlands. The absence of realistic and renewable alternatives to charcoal raises the importance of greening the charcoal production process to mitigate climate change. Since it is not an easy task in developing countries the greening process wood require applying policies, sustainable management of wood resouplanned use of lands as well as the green economy. Charcoal production system causes temporary and permanent deforestation in most urban cities all over the world. Only in Uganda, an estimated 80 thousand hector of private and protected forests are cleared annually for the unsustainable production of charcoal and timber, with related deforestation mainly observed close to major cities (UNDP, 2013). It is difficult to marge the actual deforestation causes by charcoal production as of deforestation not only cause by charcoal production. However few data exist to scale the actual scenario. It has estimated that charcoal production was responsible for 540 hectares of deforestation in Oceania in 2009, 39000 hectares in Central America, 240 thousand hectares in South America, 510000 hectares in Asia and 2976 thousand hectares in Africa (Chidumayo and Gumbo, 2013). The Africa itself responsible for 80 percent of the charcoal based deforestation. In other research it has assessed pan tropical wood fuel supply and demand and calculated that the degree to which wood fuel demand exceeds regrowth, based on various scenarios. They make an estimation of 27 to 34 percent of the wood fuel harvest was unsustainable, with around 275 million living hotspot that encompassed about 4 percent of the pantropic, almost 60 percent of this area was in Asia, 34 percent was in Africa and 6 percent was in Latin America (Bailis et al, 2015).