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Presentation by Marco Boscolo, FAO; Kees van Dijk, Tropenbos International; Herman Savenije, Tropenbos International. Financing sustainable small-scale forestry: Issues and lessons from developing national forest financing strategies in Latin America. Oaxaca Workshop Forest Governance, Decentralisation and REDD+ in Latin America and the Caribbean, 31 August – 03 September 2010, Oaxaca, Mexico.
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Financing sustainable small-scale forestryIssues and lessons from developing national forest
financing strategies in Latin America
Marco Boscolo, FAOKees van Dijk, Tropenbos InternationalHerman Savenije, Tropenbos International
Context and Focus
Financing: a key issue in the forest debateDeforestation/degradation more attractive than SFMMany challenges, but …..also opportunities for improved forest financing
Focus of this presentationKey issues in broadening the financial basis for sfm
Some findings from Latin AmericaSpecial focus on small scale forestry, investment finance and REDD+
StructureBackground and historyFinancing of small scale forestryImportance of an enabling environmentCommunication and partnershipsIntegrated financing strategiesKey considerations in relation to REDD+
Background and history (1)
Project:“Estrategias y mecanismos financieros para la conservación y el uso sostenible de los bosques -Fase1: América Latina”.FAO – IUCN – CCAD – Netherlands
Project:“Uso Sostenible y Conservación de los Bosques y de la Biodiversidad en la Región Amazónica” Programa Amazonía OTCA – NL – Germany
NFP Facility Partnerships
Background and history (2)
Working in partnershipThe “project” is a collaborative effort between countries and their national forest programmes, sub-regional organizations and international organizations
Searching to collaborate with other parties
Background and history (3)
Products and resultsCountry inventories (situation & perspectives)National and sub-regional validation workshopsSynthesis document (Sp and En)Policy briefs, various articles and presentationsCapacity building module for in-country strategy development (by NFP Facility, FAO and Wageningen International): Strategy development and implementation processes in progress in Guatemala, El Salvador, Paraguay, Ecuador, Suriname, ACICAFOC; planned in Peru, Bolivia and others; also in Africa and AsiaAn informal network of Latin-American experts and organisations on FF
Websites:www.fao.org/forestry/mecanismosfinancieros
http://www.fao.org/forestry/finance/en/www.tropenbos.org
Financing of small scale forestry (1)
Diversity in local stakeholders: “One size does not fit all”
Financing of small scale forestry (2)
Start from existing people's livelihood strategies
Financing of small scale forestry (3)
Formal financing instruments are diverse, but suitability and access often limited (credit, project financing, aid, phylantropic, public incentives, private investment, funds, partnerships)
Informal financing important but not well known f.e. Habilito system
Potential of new instruments largely untapped (capital market, PES, Risk mitigation)
Enabling Environment
Is money availability the biggest problem?Framework conditions often major constraint and risk factor
Governance and institutions (competence, credibility, accountability, innovation and participation)Tenure security – necessary but not sufficient, “good enough tenure”, need for creative solutionsMeaningful participation – at all levels for all groups
Bridging the disconnects
Forest and financing sector: two worlds apart
Paraguay experience
Intersectoral policy, communication and cooperationPartnerships between “big” and “small”More strategic outreach skills and attitudes needed by forest sector
An integrated approach
National Forest Financing Strategies (multi-actor, multi-sector and multi-level)
Guatemala experienceBundling: combining a multiplicity of sources, instruments and forest ecosystem servicesConnecting to the “unusual suspects”, investing in new partnerships
Considerations for REDD+
The need for “community-readiness” of REDD+:Recognize diversity and local specificityStart from livelihood strategiesMeaningful participation at all levels
Integrate REDD+ financing within broader national (forest) financing strategiesBuild on existing structures, but be mindful of their strengths/weaknessesBe strategic
No blueprintsCross-sectoral partnerships
Promote innovation, learning and engagement across borders (incl. strengthening collaboration and exchange with other initiatives f.e. GFP, Forest Dialogue)
