1. 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

2. 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+

3. 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

4. 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

5. 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:

6. Financing of small scale forestry (1)
Diversity in local stakeholders:
“One size does not fit all”

7. Financing of small scale forestry (2)
Start from existing people's livelihood strategies

8. 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)

9. 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

10. 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

11. 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

12. 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)

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