Forests resources are valued from a variety of perspectives and for a variety of purposes. More than half a billion people living in extreme poverty depend on forests for their livelihoods. Forests are home to at least 80 percent of the worlds remaining terrestrial biodiversity and are a major carbon sink that regulates the global climate. 20 percent of global carbon emissions are attributable to deforestation. Forests also help to maintain the fertility of the soil, protect watersheds and reduce the risk of natural disasters such as floods and landslides. The forest product industry is a source of economic growth and employment, with global forest products traded internationally in the order of US$270 billion, of which developing countries account for 20 percent.

Forests are important to the World Bank’s mission because of their contribution to the livelihoods of the poor, the potential they offer for sustainable economic development, and the essential global environmental services they provide. The Bank’s Forests Strategy and Operational Policy  set a proactive course for the Bank’s engagement in the forest sector for these outcomes. The forest sector is complex, and is faced with multiple demands and pressures. Key issues such as forest governance, cross-sectoral impacts and forest sector finance must be tackled in order to maximize beneficial forest outcomes for the poor, economic development and the environment. Please explore the topics to the left to learn more about the Bank’s engagement in forests.

The Bank’s forest program is situated within both the Agriculture and Rural Development and Environment Departments, which form part of the Bank’s Sustainable Development Network.