Financing sustainable small-scale forestry Issues and lessons from developing national forest financing strategies in Latin America Marco Boscolo, FAO Kees van Dijk, Tropenbos International Herman Savenije, Tropenbos International

Context and Focus Financing: a key issue in the forest debate Deforestation/degradation more attractive than SFM Many challenges, but …..also opportunities for improved forest financing Focus of this presentation Key issues in broadening the financial basis for sfm Some findings from Latin America Special focus on small scale forestry, investment finance and REDD+ Structure Background and history Financing of small scale forestry Importance of an enabling environment Communication and partnerships Integrated financing strategies Key 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   “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 partnership The “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 results Country inventories (situation & perspectives) National and sub-regional validation workshops Synthesis document (Sp and En) Policy briefs, various articles and presentations Capacity 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 Asia An 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 solutions Meaningful participation – at all levels for all groups

Bridging the disconnects Forest and financing sector: two worlds apart Paraguay experience Intersectoral policy, communication and cooperation Partnerships 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 experience Bundling: combining a multiplicity of sources, instruments and forest ecosystem services Connecting to the “unusual suspects”, investing in new partnerships

Considerations for REDD+ The need for “community-readiness” of REDD+: Recognize diversity and local specificity Start from livelihood strategies Meaningful participation at all levels Integrate REDD+ financing within broader national (forest) financing strategies Build on existing structures, but be mindful of their strengths/weaknesses Be strategic No blueprints Cross-sectoral partnerships Promote innovation, learning and engagement across borders (incl. strengthening collaboration and exchange with other initiatives f.e. GFP, Forest Dialogue)

Gracias - Thanks marco.boscolo@fao.org kees.vandijk@tropenbos.org herman.savenije@tropenbos.org