Protecting Global Forest Values

 

Forests cover 30-40 percent of the earth’s land area and provide several essential ecosystem services. For example, forests act as sinks for as much as 46 percent of the world's terrestrial carbon stores, absorbing the carbon dioxide that is contributing to climate change. Forests are the repository of the great bulk of terrestrial biodiversity - as much as 80%. Forests also regulate water cycles, maintain soil quality and reduce the risks of natural disasters such as floods and livelihoods.

While extremely difficult to quantify, the economic value of the ecosystem services of the world’s forests is vast. However, these values are not adequately considered in much of the land-use decision making that drives forest change, both within and outside the forest sector. The challenge for policy makers is to bring these values into markets, cross-sectoral decisions and macro-economic policy making and the development of the economy in general.

 

Finance for forest conservation and protection is essential to maintaining these essentaial ecosystem services. To this end, the Bank is engaged in the development of effective markets for the environmental services of forests such as for biodiversity, carbon sequestration and water shed protection. The World Bank's carbon finance initiatives are part of the larger global effort to combat climate change, and includes a Biocarbon Fund that aims to deliver cost-effective emission reductions, while promoting biodiversity conservation and poverty alleviation. The WB/WWF Alliance has played an active role in promoting the establishment of protected areas and dialogue on the development of payments for environmental services is supported by the PROFOR partnership.