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Sustaining Forests

Sustaining Forests. Global Seminar Session on Forests and Biodiversity Gerhard Dieterle Forest Adviser. Forests are important for rural livelihoods and poverty reduction. Why are Forests Important 1. 1.2 billion dependent on agroforestry resources.

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Sustaining Forests

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  1. Sustaining Forests Global Seminar Session on Forests and Biodiversity Gerhard Dieterle Forest Adviser

  2. Forests are important for rural livelihoods and poverty reduction Why are Forests Important1 1.2 billion dependent on agroforestry resources 350 million highly forest dependent communities 60 million totally dependent (indigenous people)

  3. 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

  4. 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 Important3

  5. Community participation in decision making and implementation We know that 45% of forests are projected to have community involvement by 2015 Key Issues4

  6. Rising global trade in forest products is creating opportunities and risks for SFM Key Issues6

  7. WHAT THE BANK IS DOING TO ADDRESS THESE KEY ISSUES 7

  8. Harnessing the potential of forest to reduce poverty • Improving livelihoods of 500 million people dependent on forest and tree resources The Forest Strategy: the three equally important and interdependent pillars. The strategy integrates global, national, local and individual needs8 • 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

  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 World Bank Instruments9

  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. Policy Loan: An example10

  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. Investment Loan: An example11

  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. Adaptable Program Loan: An example12

  13. WB-WWF ALLIANCE Bank PartnershipPrograms13

  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) Program on Forests14

  15. Brazil Cross-sectoral Cooperation (1) Project Portfolio: 21 Projects with 10 in the pipeline Combination of global, regional and national level Depicted below are the national and regional level activities Program on Forests15 Russia Governance (1) India Livelihoods (2) Governance (1) Honduras Governance (1) China Financing SFM (1) Guyana Cross-sectoral cooperation (1) Kenya Financing SFM (1) Latin America Financing SFM (1) Africa Region Financing SFM (1)

  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 WB-WWF AllianceApproach/Achievements16

  17. 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. WB-WWF AllianceOutlook17

  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 Forest Law Enforcement & Governance18

  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 Forest Law Enforcement & Governance19

  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 International efforts to sustain forests: Some examples20

  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 ConclusionPriorities for Future Bank Involvement in the Forest Sector21

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