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

2. Why are Forests Important 1
Forests are important for rural livelihoods and poverty reduction
Why are Forests Important 1
1.2 billion dependent on agroforestry resources
350 million highly forest dependent communities
60 million totally dependent (indigenous people)

3. Why are Forests Important 2
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 Why are Forests Important 3
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
per decade

5. Community participation in decision making and implementation
We know that 45% of forests are projected to have community involvement by 2015
Key Issues 4

6. Key Issues 5 Poverty Reduction
Forests are a source of livelihood and safety net
Forest Revenue
Forest revenue is often not property captured. Affecting sustainable production and resource use
$5 billion lost per year to Bank client countries because of uncollected royalties and taxes on legal logging operations
Several countries lack the macropolicy context for sustainable investment
Need a dual approach (both production and protection
Environmental Services
Forest environmental services are often undervalued
Forest Governance
Several countries lack enabling institutional, legal and policy frameworks
Key Issues 5

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

8. WHAT THE BANK IS DOING TO ADDRESS THESE KEY ISSUES7

9. 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
The Forest Strategy: the three equally important and interdependent pillars. The strategy integrates global, national, local and individual needs 8

10. 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
World Bank Instruments 9

11. 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.
Policy Loan: An example 10

12. 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.
Investment Loan: An example 11

13. 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.
Adaptable Program Loan: An example 12

14. Bank Partnership Programs 13
Poverty Alleviation
Economic Development
Conservation of Environmental Services
Creating an enabling environment for SFM
Implementing SFM
Improving Governance for SFM
Bank Partnership Programs 13
WB-WWF ALLIANCE

15. Governance: forest sector reform (i.e. Institutional and fiscal)
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)
Governance in a broad sense – including forest law enforcement
DPL = Development Policy Lending
Program on Forests 14

16. 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 Forests 15
Brazil
Cross-sectoral Cooperation (1)
Russia
Governance (1)
PROFOR became operational at the World Bank in January 2003 – since then, 23 projects have been included in the portfolio, 21 of which have been initiated. You will notice the breakdown
It is important to clarify that these projects are very diverse in nature, however the majority fall into the category of either country-level input to a national forest policy process, workshops for exchanging knowledge, and studies to assess the state of knowledge on key topics.
Regional are 2 in LAC and 1 in Africa
National are India, Kenya, Russia and Honduras (now China, (possibly Brazil and Guyana)
It is important to note that some of the global activities build on national level case studies.
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)

17. 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
WB-WWF Alliance Approach/ Achievements 16
funds provided by different bi-lateral donors (such as the Netherlands, Finland, Germany, Norway, Switzerland), WWF country programs and the Development Grant Facility).

18. WB-WWF Alliance Outlook 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 Alliance Outlook 17

19. 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
Forest Law Enforcement & Governance 18

20. 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
Forest Law Enforcement & Governance 19

21. 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
International efforts to sustain forests: Some examples 20

22. 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
Conclusion Priorities for Future Bank Involvement in the Forest Sector 21
Global nature of some forest problems requires complementary, innovative tools to traditional Bank project work
Innovative lending/non-lending products are: PES, carbon trade, mainstreaming of biodiversity in productive landscapes, integrated landscape based management of natural resources
CASs and PRSPs can not fully capture global dimension of forest problems
Illegal logging and trade demand cooperation across countries and regions. Additional BB for these purposes is well spent money