Economic Development
livelihoods
Conservation
Forest values
Biodiversity
Protected areas
Poverty reductionSustaining Forests
Global Seminar Session on
Forests and Biodiversity
Gerhard Dieterle
Forest Adviser
ESSD Forests
Forests are important for rural livelihoods and poverty reduction
Why are Forests
Important 1
350 million highly forest dependent
communities
1.2 billion dependent on agroforestry
resources
60 million totally
dependent (indigenous
people)
ESSD Forests
Contribution to Economic Development
Global trade in wood products is approximately US$ 130 billion and for select non-wood forest products approximately US$ 19 billion
Private sector investment is 8 billion (compared to ODA 1.7 billion)
Small to medium wood-based enterprises are an important source of off-farm employment
Why are Forests
Important 2
ESSD Forests
Contribution to Environmental Protection
80% of biodiversity is found in tropical forests (deforestation results in the loss of 2-5% of global biodiversity per decade)
Forests act as a sink for as much as 46% of terrestrial carbon stores (annual forest loss contributes 20-30% of carbon emissions)
Forests protect watersheds and reduce risk of natural disasters
Why are Forests
Important
3
ESSD Forests
Key Issues
4
Community participation in decision making and implementation
We know that 45% of forests are projected to have community involvement by 2015
ESSD Forests
Rising global trade in forest products is creating opportunities and risks for SFM
Key Issues6
ESSD Forests
The Forest Strategy:
the three equally important and
interdependent pillars.
The strategy integrates global,
national, local and individual
needs
8
Harnessing the potential of forest to reduce poverty
• Improving livelihoods of 500 million people dependent on forest and tree resources
Integrating forest in sustainable economic development
• Improving forest concession management
• Reducing illegal logging.
• Increasing government revenues from forests by USD 2.5 billion per year
Protecting vital local and global environmental services and values
• Bringing 50 million hectares (ha) into new protected areas
• Improving management of 50 million ha of protected areas
• Improving management of 200 million ha of natural forest
ESSD Forests
World Bank Instruments
9
Loans Investment loans Policy Loans (DPLs) Adaptable Program Loans
Grants Global Environmental Facility
Analytical work Country Environmental Analyses Assessing the impact of policy reforms Policy Research Report on tropical deforestation
Knowledge Management Training Toolkits
ESSD Forests
Policy Loan: An example
10
Natural Resource Management Development Policy Loan in Gabon.
This loan supports the Government’s efforts to improve
transparency and law enforcement for NRM. Supports implementation of Gabon’s Forest,
Fisheries, Biodiversity and Environment Sector Program and Extractive Industries Transparency Initiative.
The DPL covers four policy areas: (1) forests; (2) biodiversity-environment; (3) fisheries; and (4) mining-oil.
With regard to forest and biodiversity, the DPL will capitalize on the recent wave of reforms to ensure that they take hold and are deepened.
This operation will help improve the investment climate by leveling the playing field and providing clear rules of the game in favor of more socially and environmentally responsible investors.
ESSD Forests
Investment Loan:
An example
11
Mexico Community Forestry Project (An Investment Loan that used a CDD approach)
This investment project assists communities in developing and marketing forest and non-forest resources in order to increase their income. It exemplifies several good practices such as a detailed social and cultural analysis of the project site, recognition of the importance of forest resources and diversification of income, and the strengthening of the private sector for efficient service delivery.
ESSD Forests
Adaptable Program
Loan: An example
12
The Forestry and Agroforestry Development Program (PROFORESTAL) in Nicaragua.
A two-phase program. During this program donor support will be increasingly coordinated and
pooled, critical institutional reforms will be completed, the forestry private sector will be strengthened, forest-related businesses will be developed, best practices in both use and conservation of forests
will be scaled up, biodiversity will be protected and significant
contributions will be made to alleviate poverty in the poorest rural areas of the country through income and employment generation.
ESSD Forests
Bank PartnershipPrograms
13
Poverty Alleviation
Economic Development
Conservation of Environmental
Services
Creating an enabling
environment for SFM
Implementing SFM
Improving Governance for
SFM
WB-WWF ALLIANCE
ESSD Forests
Program on Forests
14
A multi-donor trust fund established in 2002 to address these thematic areas:
Livelihoods: measuring forests’ contribution to poverty alleviation; promoting community ownership of forests
Governance: forest sector reform (i.e. Institutional and fiscal)
Innovative financing: responsible private sector investment and collaboration with small holders and communities; payments for environmental services
Cross Sectoral Co-operation: assessing the impact of DPL; integrated management of forests, agriculture and economic development (landscape or ecosystem approach)
ESSD ForestsBrazilCross-sectoral Cooperation (1)
IndiaLivelihoods (2)Governance (1)
RussiaGovernance (1)
ChinaFinancing SFM (1)
HondurasGovernance (1)
GuyanaCross-sectoral cooperation (1)
KenyaFinancing SFM (1)
Latin AmericaFinancing SFM (1)
Africa RegionFinancing SFM (1)
Program on Forests
15
Project Portfolio: 21 Projects with 10 in the pipelineCombination of global, regional and national levelDepicted below are the national and regional level activities
ESSD Forests
WB-WWF Alliance
Approach/Achievements
16
Phase I: April 1998 – December 2005
A strategic partnership designed to significantly reduce the rates of loss and degradation of the world’s forests working with governments, private sector and civil society.
Achievements to date: Establishing 50 million hectares of new protected areas Supporting improved management for 70 million hectares of
existing protected areas, Bringing 22 million hectares of commercially harvested forests
under credible third party certification systems Completion by QACC Mainstreaming HCVF
Funds provided by Netherlands, Finland, Germany, Norway, Switzerland, WWF donors and DGF
ESSD Forests
WB-WWF Alliance
Outlook17
Phase II : January 06 – December 2010
Targets to achieve a 10% reduction in the rate of global deforestation through: 25 million ha of new protected areas established to
closing gaps in representation of the World’s highly threatened forest types;
75 million ha of existing forest protected areas under demonstrably improving management; and
300 million ha of forest outside protected areas under improved forest management through a combination of independent forest certification, stepwise approaches.
Expected funding from GEF Secretariat, Foundations and bi-lateral donors and other WWF donors.
ESSD Forests
Forest Law Enforcement
& Governance
18
Approach: A coalition of gov’ts, int’l organizations, NGOs and
private sector in producer and consumer countries fostering collaboration for action against illegal logging, associated trade, and forest corruption
Link to broader governance programs of the WB and other donors, with impacts beyond the forest sector
Ongoing activities include: Ministerial Conferences resulting in a Ministerial
Declaration and Indicative Action Plan (East Asia 2001, Africa 2003, ENA 2005, LAC under discussion) to create political commitment
Follow-up actions at national, regional and international levels to address: Poverty related issues Trade related issues Forest law enforcement Broader governance failures
Development of a corporate approach for FLEG
ESSD Forests
Forest Law Enforcement
& Governance
19
Highlights of the ENA FLEG Declaration Accepted by acclamation by 45 countries Differentiates between poverty driven and commercial
illegal logging and addresses both in a balanced way Emphasis on development of national illegal logging
action plans
ESSD Forests
International efforts to sustain forests: Some
examples
20
International Dialogue on Forests (UNFF)
CPF: The collaborative partnership on forests
FAO: National Forest Programs
CIFOR: International Forestry Research
ITTO – working with producer and consumer countries
ICRAF – World Agroforestry Center
IUCN – landscape approaches
ESSD Forests
Conclusion
Priorities for Future Bank
Involvement in the Forest
Sector
21
Scale up successful models for community ownership and small-holder involvement.
Apply landscape-based approaches in improving rural livelihoods and addressing deforestation
Mainstream biodiversity conservation in productive landscapes
Address complex institutional, governance and land tenure issues in Bank operations
Work with producer, consumer and transitory countries across regions to achieve sustainable SFM and production
Mobilize responsible private sector investment