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Many forestry experts claim that the establishment of Tree plantations will reduce or eliminate the need to exploit natural forest for wood production. In principle this is true because due to the high productivity of plantations less land is needed. Many point to the example of New Zealand, where 19% of the forest area provides 99% of the supply of industrial round wood. It has been estimated that the world’s demand for fiber could be met by just 5% of the world forest (Sedjo & Botkin 1997). However, in practice, plantations are replacing natural forest, for example in Indonesia. According to the FAO, about 7% of the natural closed forest being lost in the tropics is land being converted to plantations. The remaining 93% of the loss is land being converted to agriculture and other uses. Worldwide, an estimated 15% of plantations in tropical countries are established on closed canopy natural forest.
In the Kyoto Protocol, there are proposals encouraging the use of plantations to reduce carbon dioxide levels (though this idea is being challenged by some groups on the grounds that the sequestered CO2 is eventually released after harvest).