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

WHAT THE BANK IS DOING TO ADDRESS THESE KEY ISSUES

7

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