Forests in a

June 2011

What is a Green Economy?

A Green Economy is one that results in
increased human well-being and social
equity, while significantly reducing
environmental risks and ecological
scarcities.

Why a Green Economy?

A Green Economy is an economic vehicle for sustainable
development.
A Green Economy has strategies to end the persistence
of poverty.
It is a central theme of Rio+20.
It is a new economic paradigm that can drive growth of
income and jobs, while reducing environmental risk and
scarcity.

Forests in a Green Economy

Forests are a critical link in the transition to a green
economy.
The International Year of Forests 2011 and World
Environment Day, are unprecedented opportunities for
governments, civil society and business to promote
forests as critical contributions to a green economy
transition via sustainable management, forest
conservation and payment schemes.

Forests in a Green Economy

The UNEP report:
Provides a roadmap for greening the forest sector that
will contribute to the discourse in the lead up to Rio+20.
Sets out options for policy makers to enable a
transformation of the forest sector.
Examines the conditions for significantly increasing
investments in forests and the underlying goods and
services forests provide.

Why Forests?
Forests generate income and
provide employment.
Forests provide nutrition,
reduce vulnerability and
diminish energy scarcity.
Trends in deforestation are
still alarmingly high.
The current approach to
management of forests is a
frontier approach.
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In a Green Economy
Public and private investments in forests are catalyzed
and supported by targeted policy reforms, regulation
changes and capacity building.
Forests are managed and invested in as an asset class
and are important factors of production.
International mechanisms increase investments in
forests.
Forest management hinges critically on an effective and
transparent accounting system.

Investments in the Forest Sector

The Green Economy Report

suggests that an average
annual additional investment of
US$ 40 billion is required to
halve global deforestation by
2030, and increase
reforestation and afforestation
by 140 per cent by 2050,
relative to business as usual
(BAU).

Investments in the Forest Sector

Targeted investments in forests

could generate about 10 million
new jobs around the world.
Most of this increase occurs via an
increase in small and medium sized
enterprises.
In the forest sector, 80-90 per cent
of the enterprises are small and
medium sized.
SMEs currently provide more than
50 per cent of forest sector
employment in many countries.

Enabling Conditions
Role of the International
community

Agree on an international
REDD+ scheme
Generate knowledge on forest
ecosystem services
Stimulate engagement from
the commercial financial sector
Re-invest income from
royalties and taxes into the
forest sector

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Enabling Conditions
Role of Governments

Guarantee adequate returns

on risk-adjusted investment
Devise transparent and
efficient procedures
Agree on a national vision for
ways and means in which
forests can contribute to
development
Employ market-based
instruments to promote green
investment and innovation

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Enabling Conditions
Role of Business and Financial
Institutions
Investing in forest projects
Providing independent, easily
accessible and verifiable risk
assessments
Leveraging resources and
providing debt finance
Insuring and guaranteeing
investment and risks particular to
the forest sector
Applying conventional financial
instruments to the forest sector

FSC Canada

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Success Stories

India The country recently approved a national mission for a

Green India.
Japan The Metropolitan Government Bureau of Waterworks in
Tokyo manages forests in the upper reaches of the Tama River to
increase recharge capacity.
Costa Rica Forest related interventions have led to economic
growth and a dramatic increase in forest cover. By 2010, it had
recovered up to 51 per cent of the countrys land area.
Vietnam - The restoration of natural mangrove forests at the cost of
US$ 1.1 million resulted in annual savings of US$ 7.3 million in sea
dyke maintenance.

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Payment for Ecosystem Services

Payment for Ecosystem Services (PES)
Voluntary transactions which compensate ecosystem
service providers (for instance forest landowners) for
providing watershed protection, carbon storage,
recreation, biodiversity or other ecosystem services.
Ecuador - The local government in the
town of Pimampiro pays US $6-$12 per
hectare per year to a small group of
farmers to conserve forest and natural
grassland in the area surrounding the
towns water source.

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REDD+
Reducing Emissions from Deforestation and Forest
Degradation (REDD+) recognizes the role of forest
degradation and deforestation in limiting GHG emissions
with conservation, sustainable management, and
enhancement of forest carbon stocks as eligible activities
Brazil The Amazon Fund receives
conditional funding from Norway to
achieve deforestation reduction
targets
Indonesia - In 2010, the country
received a US$ 1 billion from Norway
in return for agreed measures to
tackle deforestation and degradation.
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Conclusion
Forest management cannot be left entirely to markets.
Governments and the international community need to
undertake policy reforms to create incentives to
maintain and invest in forests.
Businesses and financial institutions need to be active in
promoting investments in the forest sector

Thank You
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