Small and medium forest enterprises (SMFEs) are the norm in most developing countries. They often represent 80-90% of all forest enterprises and more than 50% of formal forest jobs -- plus many more of an informal and seasonal nature. They accrue wealth locally, empower local entrepreneurship, strengthen social networks and engender local social and environmental accountability. But in least developed countries, structures that connect with and support SMFEs and their associations are weak.
PROFOR and the BioCarbon Fund are co-financing a study designed to identify institutional and financial arrangements required to mainstream forest plantation business models and promote the potential development of CDM projects aimed at reducing GHG emissions in the forestry and iron supply chains in the state of Minas Gerais, Brazil.
The experience of payments for environmental services (PES) systems set up in Costa Rica, Mexico, and Ecuador in the last decade provides valuable insights for shaping REDD+ strategies in participating countries in the Latin America and Caribbean region. Between them, these programs are currently helping to conserve over 3 million hectares of forests. Their experience shows how to make PES work, but also -- problems to avoid.
Are land-based carbon projects good for local people, biodiversity, and ecosystem services? This PROFOR-supported activity produced a user-friendly Manual on how to conduct cost-effective and credible social and biodiversity impact assessments. Background case studies and toolkits are available on this page.
Despite the very considerable body of on-farm experience which has been gained in testing agroforestry and other tree-based technologies for their impact on increasing productivity and on rural income generation, investment in agroforestry, tree planting and landscape restoration has been lagging. This activity aimed to shed light on potential private investment opportunities and identify policy, regulatory and institutional constraints that could be lifted to help tap this potential.
In assessing the ways in which public expenditures are allocated, two questions are relevant: what is money being spent on, and how well is money being spent? PROFOR financed an effort to develop guidelines for carrying out public expenditure reviews in the forest sector. Credible public expenditure reviews should help policymakers and donors better align forest policy and public spending at a time when carbon finance raises the prospect of increased financial flows.
Chile is one of the most developed countries in the southern hemisphere and relies heavily on its natural resource base for employment and exports. Yet, despite its natural assets and economic prowess, the country is plagued by serious land degradation problems including desertification, accelerated soil erosion, and forest degradation. This activity will provide knowledge to the Chilean Government and other stakeholders on best practices and guidance for restoration of degraded lands through forestry applications suitable for the Chilean context.
This activity aims to develop consensus, through a stakeholder-driven process, on a course of action required to position Mexico’s community forestry sector as a high-value provider to niche markets from sustainably managed community forests, delivering both income and biodiversity protection. It has produced a guide in Spanish top evaluating economic and financial returns in community forest projects.
In light of Mexico’s changing circumstances and needs, CONAFOR and the World Bank propose to collaborate to redesign the Forest Fund so that it becomes a state-of-the art, best-practice financial mechanism.
PROFOR supported an effort to analyze the forests sector in five countries (Cote d’Ivoire, Ghana, Guinea (Conakry), Liberia and Sierra Leone) and define elements toward an effective West African forests strategy to ensure conservation and sustainable use of forests, the maintenance of forest ecosystem services, and the fair and equitable allocation of revenues and benefits from forest resources.
