Sustaining Forests A Development Imperative Forests Matter Three

Sustaining Forests: A Development Imperative Forests Matter -------Three Pillars of the WB Forest Strategy SDN Forests Over 400 million people depend on forests for income, food, energy, medicines and shelter. Global trade in primary wood products is about US$ 186 billion/yr. Total trade in all wood products is several multiples higher. 20% of global carbon emissions come from deforestation and degradation. 80% of global biodiversity is in forest

Forests and Climate Change SDN Forests Opportunities Challenges § Inclusion of forests in Bali roadmap § Forests at the center of international attention § New financing mechanisms for PES (carbon) § Significant new ODA funding § Significant new private sector investments in forest plantations, agro-business, biofuels § Decentralization and local ownership § Linking climate change and development agenda: addressing underlying causes of deforestation § Improve coordination between donors and funding agencies § Linking needs and demand in developing countries to global forest agenda § Overcome governance and institutional capacity bottlenecks § Improve absorption capacities for new funds § Address competition for land (land grab; food crisis; biofuels) § Getting equity, inclusion, and poverty focus right

m § “Potsdam Mandate” to establish a FIP under the SCF: Forest Investment Program “It is proposed that within the framework of the SCF a Forest Investment Fund/Program should be established by the end of 2008 to mobilize significantly increased funds to reduce deforestations and forest degradation and to promote improved sustainable forest management, leading to emission reductions and the protection of carbon reservoirs. This Forest Investment Fund/Program will be developed based on a broad and transparent consultative process. That process will take into accountry led priority strategies for the containment of deforestation and degradation and build upon complementarities between existing forest initiatives. ” § Mandate includes sustainable forest management and protection of carbon reservoirs § Informal Consultations underway § Planned Design Workshops - October 16 -17, 2008 - November 19 -20, 2008 - January 22 -23, 2009 SDN Forests

FIP within the CIF Contributors $ $ Climate Investment Funds Partnership Forum Clean Technology Fund $ Clean Technology Fund Trust Fund Committee Promote transformational (5 contributors/ 5 recipients) technologies for transformational change at scale; Unleash potential of public and private sectors to achieve GHG reductions SDN Forests Contributors $ $ $ Strategic Climate Fund $ Programs Pilot Program for Climate Resilience FIP $$ … other SCF Forest Investment Programs Program

REDD Afforestation, Reforestation Restoration SFM REDD CDM Carbon Bio. CF Payments Filling the Investment Gap Under REDD (FCPF) Forest Investment Program REDD Readiness SDN Forests (FCPF, UNREDD) Forest Investment Program ? ? ? Adaptation

Addressing the Challenges World Bank Response SDN Forests Targeted Initiatives and Programs Poverty, social inclusion, country ownership § Global Forest Partnership § The Forest Dialogue Climate change and forest environmental services § Forest Carbon Partnership Facility (FCPF) § Other PES schemes Catalytic Investments § Forest Investment Program (FIP) Governance, legal and institutional framework § Forest law Enforcement and Governance (FLEG) Creating and sharing knowledge § PROFOR § Bio-Energy Study

Objective: Facilitate creation of multistakeholder, bottom-up processes to anchor forest-relevant investment and capacity-building. Role of the Program: Global Forest Program implementation § Give marginalized groups a say in decision-making processes § Increase country ownership of forest–related investment § Coordinate countries’ access to financing from all sources, anchored in informed nationally-led processes How: § Facilitate programmatic foundation for FCPF and FIP, et al. § Ensure that all stakeholders are part of the programming process § Strengthen partnerships among stakeholder and across sectors to create shared ownership of outcomes SDN Forests

How it all fits World Bank Assistance to Forestry Benefits for Developin Technical Assistance Investment Support Programs Countries Forest Law Enforcement and Governance (FLEG) Program on Forests (PROFOR) Strategic Partnerships IBRD IDA Private Sector (IFC) GEF Ongoing World Bank Operations Innovative World Bank Operations Readiness Fund under FCPF New Concessional Sustainable Forest Finance (Forest Investment Program) Global Forest Partnership SDN Forests Sustainable Forest Mgmt. Livelihoods Good Governance Ecosystem Services C arbon Payments WB Pilots: FCPF, Bio. CF

World Bank Assistance to Forestry How it all fits Technical Assistance Programs Investment Support Benefits for Developing Countries Forest Law Enforcement and Governance (FLEG) Program on Forests (PROFOR) Strategic Partnerships IBRD IDA Private Sector (IFC) GEF Sustainable Forest Mgmt. Livelihoods Good Governance Ecosystem Services Readiness Fund under FCPF Forest Investment Program arbon Payments FCPF, Bio. CF Global Forest Partnership SDN Forests C

§ Key Questions Arising from initial Consultations Questions from initial Consultations SDN Forests § Focus: Limited to countries with tropical forests or will it be open to all types of forest § Scope: focus on REDD or broader range of investment activities addressing SFM and CC mitigation and adaptation? § Approach: Pilot countries or open to all client countries? § What selection criteria for pilot countries? § What type of financing: grants? concessional loans? Risk mitigation instruments for private sector? § How bottom-up processes be built into the FIP design, programming and implementation? Can the GFP play a catalyzing role? § How does the FIP relate to other