Forests are central to the World Bank Group’s mission of sustainable development. People depend on forests for livelihoods, economic development and the provision of environmental services. The Bank is celebrating the 2011 International Year of Forests, along with the United Nations Forum on Forests and other partners, by supporting high-profile events such as an investment forum on mobilizing private investment in trees and landscape restoration in Africa and the upcoming Forest Day 5 in December in Durban, South Africa.  AT A GLANCE:  ·         Forests cover 25-30 percent of the earth’s land surface and contain about 80 percent of the world’s remaining terrestrial biodiversity. Forests help to maintain the fertility of the soil, protect watersheds, and reduce the risk of natural disasters, including floods and landslides. ·         About 13 million hectares of forests are lost worldwide each year. ·         An estimated one billion hectares of lost or degraded forest landscapes could be restored and rehabilitated. If those areas were to be restored to functional and productive ecosystems, they could help deliver a “triple win†by improving rural livelihoods and food security, increasing climate resilience, and helping mitigate green house gases (GHG) - while taking pressure off pristine forests. ·         Forests are an important safety net for rural populations in times of economic or agricultural stress. About 350 million people who live within or close to dense forests depend on them for subsistence and income. Of those, about 60 million people (especially indigenous communities) are wholly dependent on forests. ·         Forests represent a source of energy in many countries. If supplied sustainably, this renewable energy source could make a major contribution to climate change mitigation.  Our Impact  The World Bank Group is the largest source of multilateral financing for forests.  IBRD and the International Development Association (IDA), the Bank’s fund for the poorest, assistance to the forest sector has averaged $327 million a year during the last three years. The International Finance Corporation (IFC), the Bank’s private sector arm, invested $195 million in eight projects related to forest use in fiscal year 2011. With other multilateral development banks, the World Bank also serves as an implementing agency for the Global Environment Facility ($19.5 million for forests in FY11) and the Forest Investment Program (about $630 million pledged) under the Climate Investment Funds. The results of past investments include, in addition to many others: ·         Contributing to large-scale reforestation in China; ·         Certifying some 1.3 million hectares of forests in Bosnia and Herzegovina; ·         Completing and improving forest plans for 160 communities in Mexico; ·         Doubling the amount of Brazilian Amazon forest under strict protection; and ·         Promoting the restoration of degraded landscapes and land reform in Albania.  The Bank’s reach is further amplified through various forest partnerships such as the Growing Forest Partnerships initiative, bolstering grassroots alliances of forest-dependent people to ensure their voices and concerns are heard in climate change and forest policy decisions. The Bank conducts forest-related analytic work and provides technical assistance to support reforms in developing countries. Recent work has included Forest Governance 2.0, a primer on the use of Information and Communication Technologies (ICTs) in forest governance, an Assessment of the Risk of Amazon Dieback, and a look at the social and environmental impact of Bioenergy Development. The Bank also hosts the Program on Forests (PROFOR), a multi-donor partnership that supports analysis, knowledge sharing, and innovation focusing on forest livelihoods, forest governance, financing sustainable forest management, and coordinating forest policy across sectors.  Forest management  Despite growing attention and promising initiatives, forests remain one of the most mismanaged resources in many countries. Forests are seriously undervalued. Many of their environmental services are not represented in markets, and poor governance has fueled illegal activities that rob countries of revenues and natural resources.  Technical assistance in the area of forest law enforcement and governance supports the development of a more level playing field for legitimate forest sector enterprises and forest-dependent people. With other development partners, the Bank is developing criteria and indicators for governance in the forest sector, of critical importance for implementing REDD+ strategies. The Bank Group fosters responsible corporate investments across the forest products supply chain through the IFC. Work in this area also includes application of Bank safeguard policies and IFC performance requirements in projects that affect forests.  Climate change
Forests absorb about 15 percent of the planet’s greenhouse gas emissions. At the same time, deforestation and forest degradation contribute significantly to those same emissions. Yet efforts to reduce carbon emissions from deforestation and forest degradation (REDD) need to be grounded in a broad understanding of the social, economic, and environmental roles played by forests and trees, and the enormous pressures exerted on forests by other sectors.
 Well-managed forest enterprises are a source of jobs, public revenue, and valuable renewable goods. Policymakers are just beginning to recognize the important role that the sustainable use of timber and other forest products could play in substituting for non-renewable materials and energy to mitigate climate change. Forests, mangroves, and trees on farms also offer unique adaptation benefits (for example by increasing water retention in soils, protecting vital watersheds, or providing buffers against storms) that could help millions of households weather the impacts of climate change.  The Bank, therefore, supports the concept of “REDD+†which goes beyond avoiding deforestation and looks for ways to enhance forest carbon stocks – for example, by restoring degraded forest landscapes, creating sustainable agricultural practices through agroforestry, or investing in reforestation and afforestation.  The Bank Group helps countries balance productive forest uses with the protection of ecosystem services, such as watershed management, protection of biodiversity, and climate change mitigation. Through various partnership mechanisms, such as the BioCarbon Fund, the Forest Carbon Partnership Facility, the Forest Investment Program, and the Global Environment Facility, the Bank Group is exploring a wide range of REDD+ opportunities.  Media Contacts: Flore de Préneuf: (202) 473-5844, Email: fdepreneuf@worldbank.org Robert Bisset: (202) 458-5191, Email: rbisset@worldbank.org                    Updated August 2011  | 
