Program Summary

The development objective of this activity is to increase knowledge and awareness about the impacts of forest fires in a changing climate and identify effective response strategies and actions to build the resilience of forests and communities.

Challenge

Forest fires degrade forest ecosystems and impair on their capacity to serve global development and poverty reduction objectives. Substantial and rapid shifts are projected for future fire activity across vast portions of the globe, including tropical and subtropical regions. Projections suggest that wildfires will become so frequent within this century that it will reach a “new normal.” Therefore, it is important to develop a better understanding of the interactions between climate change and forest fires in terms of their scale and intensity and identify forest management options for increased resilience. This activity aims to contribute toward filling this knowledge gap by taking stock of the state of knowledge on the key issues. Several studies have already been conducted by PROFOR and other teams at the Bank to highlight the importance of preventing and managing forest fires. This activity will build on the previous work and deepen the understanding of these impacts and the type and scale of investments required to tackle this challenge.

Approach

As the main activity, a Global Expert Workshop on Forest Fires and Climate Change would be held at the International Union of Forest Research Organizations (IUFRO) headquarters in June 2018 in Vienna, Austria. The expert workshop would be co-hosted by IUFRO and PROFOR. It would bring together leading scientific experts; government representatives from key countries in East Asia, Africa, and Latin America; and representatives from World Bank global practices and regional units.

The expert workshop would discuss (i) the spectrum of forest fire types and their contributions to global greenhouse gas emissions; (ii) future climate change scenarios and implications for forest fire as well as related environmental, social, and economic impacts and vulnerabilities; and (iii) options for adaptation with particular emphasis on forest landscape restoration as a forest-smart solution for increasing resilience in the face of climate change. The expert workshop would also be informed of relevant findings of the Global Forest Expert Panel (GFEP) scientific assessment on forests and water, coordinated by IUFRO on behalf of the Collaborative Partnership on Forests.

The expert workshop would result in an issue paper that comprised all the information presented during the workshop, including the main findings and conclusions, as well as a set of key messages for decision makers. The expert workshop would also identify limitations in current knowledge and outline potential future activities.

Results

This project has been completed.  The Global Expert Workshop on Forest Fires and Climate Change was conducted July 2-4 in Vienna, Austria. The three-day workshop brought together 32 scientists and governmental experts from around the globe and World Bank representatives to discuss the complex forest fire–climate change–restoration nexus.

The Occasional Paper 32 - Global Fire Challenges in a Warming World, Summary Note of a Global Expert Workshop on Fire and Climate Change, affirmed that the warming climate contributes significantly to the increase in the frequency and intensity of uncontrolled forest fires, thereby further degrading forest ecosystems and impairing their capacity to produce the forest goods and services that play an important part in global development and poverty reduction objectives. Climate change, particularly hotter and drier seasons, combined with environmental and demographic changes are exceeding traditional fire management approaches’ capacity to cope and are economically unsustainable.

The expert group concluded that fire and climate-related weather changes are strongly linked, leading to more severe fire events, and that there is a need to prepare for a “new normal” in which fires will occur outside the traditional fire seasons and risk zones, including agricultural areas. Government strategies will need to take on a different approach to effectively manage forest landscapes because this trend will only get worse.

The solution lies increasingly in more holistic land management and governance approaches including more active investments in fire prevention measures, fire-smart economic land uses, better informed and connected fire information and early warning systems, and community-based education, training, and mitigation activities in addition to traditional suppression measures.

Where tropical forests or peatlands already suffered substantial alterations, the workshop concluded that there is a need to think beyond those solutions. Restoration of ecological functions of degraded forests and peatlands, investment in fire-free perennial economic solutions in risk areas and strategic economic land uses will need to be an integral part of interventions.

Some of the presentations at the workshop, include knowledge that has informed, is informing, and will continue to inform policies, projects/ programs and data gathering/information/modelling globally.   

CHALLENGE

In India, some 100 million people live in and around forests and depend heavily on the collection and marketing of non-timber forest products. However, a lack of information on the links between poverty and forest dependence impedes meaningful interventions to reduce poverty and improve the overall well-being of this significant population.

APPROACH

The specific objectives of this work are to:

1. Shed light on the extent to which the poor in India depend on forests and their associated ecosystem services for their livelihoods;
2. Assess whether and how investing in sustainable forest management (SFM) could lead to poverty reduction and shared prosperity outcomes; and
3. Identify key forest-related policies that have the highest impact on poverty reduction and shared prosperity, and possible entry points for the World Bank and its development partners in India to engage on these issues.

RESULTS

A detailed literature review revealed that the rural poor in India have diverse livelihood strategies, but that even households engaged in farming depend heavily on local forests for firewood, grazing, and leaf fodder and other non-timber forest products (NTFPs). NTFPs may contribute up to 20% of a rural household’s cash income. Firewood and fodder collection appear to be the leading cause of most forest degradation

Given the paucity of useful data in India for determining the link between poverty and forest dependence, a primary survey was conducted among about 1,000 households in the state of Madhya Pradesh in central India. Preliminary findings were shared among World Bank teams, Government of India officials, and participants at the IUCN 2016 World Conservation Congress in Hawaii.

High-resolution spatial mapping was carried out to gauge India’s current forest cover, recent deforestation, and poverty incidence; this is the first such geospatial overlay of forest cover and poverty for India. A second overlay highlighting the pockets of indigenous communities was also completed.

The mapping exercise shows that highly forested areas do not always coincide with areas of high poverty, and similarly low forested areas. This finding debunks the myth that forests and poverty may be directly co-related, even though it is sufficiently proven that the poor households in the sample derive up to one third of their cash incomes from forests.

The study also found that women-headed households are more dependent on forests, and that many households turn to forests to augment their incomes during times of difficulty, such as drought. Another result was that villages located closer to roads derive higher incomes from forests due to their ability to access markets where they can sell forest products. Finally, the study revealed that out-of-poverty households use more forest resources in absolute terms, even though poor households use more of such resources in relative terms. This suggests that forests play a role in keeping households out of poverty.

These findings were made available in a synthesis report aimed at donors, development partners, and government representatives, as well as in a technical note focused on issues of methodology. A second technical paper was produced with the research community in mind, containing full details about the results and the analytical strengths and limitations.The main findings of the review will be used directly in finalizing the Himachal Pradesh Forests for Prosperity project preparation and design with regard to aspects related to marketing, NTFP value chains efficiency, and supportive institutional development.  

CHALLENGE

In India, some 100 million people live in and around forests and depend heavily on the collection and marketing of non-timber forest products. However, a lack of information on the links between poverty and forest dependence impedes meaningful interventions to reduce poverty and improve the overall well-being of this significant population.

APPROACH

The specific objectives of this work are to:

1. Shed light on the extent to which the poor in India depend on forests and their associated ecosystem services for their livelihoods;
2. Assess whether and how investing in sustainable forest management (SFM) could lead to poverty reduction and shared prosperity outcomes; and
3. Identify key forest-related policies that have the highest impact on poverty reduction and shared prosperity, and possible entry points for the World Bank and its development partners in India to engage on these issues.

RESULTS

A detailed literature review revealed that the rural poor in India have diverse livelihood strategies, but that even households engaged in farming depend heavily on local forests for firewood, grazing, and leaf fodder and other non-timber forest products (NTFPs). NTFPs may contribute up to 20% of a rural household’s cash income. Firewood and fodder collection appear to be the leading cause of most forest degradation

Given the paucity of useful data in India for determining the link between poverty and forest dependence, a primary survey was conducted among about 1,000 households in the state of Madhya Pradesh in central India. Preliminary findings were shared among World Bank teams, Government of India officials, and participants at the IUCN 2016 World Conservation Congress in Hawaii.

High-resolution spatial mapping was carried out to gauge India’s current forest cover, recent deforestation, and poverty incidence; this is the first such geospatial overlay of forest cover and poverty for India. A second overlay highlighting the pockets of indigenous communities was also completed.

The mapping exercise shows that highly forested areas do not always coincide with areas of high poverty, and similarly low forested areas. This finding debunks the myth that forests and poverty may be directly co-related, even though it is sufficiently proven that the poor households in the sample derive up to one third of their cash incomes from forests.

The study also found that women-headed households are more dependent on forests, and that many households turn to forests to augment their incomes during times of difficulty, such as drought. Another result was that villages located closer to roads derive higher incomes from forests due to their ability to access markets where they can sell forest products. Finally, the study revealed that out-of-poverty households use more forest resources in absolute terms, even though poor households use more of such resources in relative terms. This suggests that forests play a role in keeping households out of poverty.

These findings were made available in a synthesis report aimed at donors, development partners, and government representatives, as well as in a technical note focused on issues of methodology. A second technical paper was produced with the research community in mind, containing full details about the results and the analytical strengths and limitations.The main findings of the review will be used directly in finalizing the Himachal Pradesh Forests for Prosperity project preparation and design with regard to aspects related to marketing, NTFP value chains efficiency, and supportive institutional development.  

CHALLENGE

Tremendous progress has been made in reducing poverty over the past three decades. Nonetheless, more than 1 billion people worldwide still live in destitution. In addition, rising prosperity in many countries is accompanied by social exclusion and increasing inequality. The post-2015 Development Agenda has thus made reducing poverty its priority. The new World Bank strategy reinforces this objective, aiming to end extreme poverty in a generation and to promote shared prosperity for the bottom 40 percent. These goals will only be achieved if development is managed in an environmentally, socially, and fiscally sustainable manner.

The challenge for development is that the poor are often highly dependent on natural resources, such as forests. Although forests provide ecosystem services and safety nets for the livelihoods of the poor, forests are facing significant pressures from the range of sectors that are critical for economic growth, such as agriculture, transport and energy. Therefore, if sustainably managed, forests could play a significant role in achieving the twin goals of reducing poverty and building climate resilience. However, our understanding of this dual forest-poverty relationship is limited, which this study seeks to address..

APPROACH

This study focuses on the Philippines where, similar to many tropical countries, extensive deforestation and forest degradation have taken place over the last century due to logging, fires and other human disturbances, which are further aggravated by climate change. The country’s total forest cover has declined to merely 6.9 million hectares, or 23% of the total land area.

This study builds on the three primary roles that environmental income plays in supporting rural livelihoods: (i) supporting current consumption; (ii) providing safety nets to smooth income shocks or offset seasonal shortfalls, as well as impacts of climate change; and (iii) providing the opportunity to accumulate assets and exit poverty. Each of these roles is examined further in how they depend on and impact the ecosystem services provided by forests (including the impacts of climate change), and how they can help reduce extreme poverty and promote shared prosperity for the bottom 40%. Three case study sites were examined: the Upper Marikina RIver Basin Protected Landscape (UMRBPL), the Libmanan-Pulantuna Watershed (LPW), and the Umayam, Minor and Agusan Marsh Sub-basin (UMAM).

RESULTS

• Higher forest cover generates higher water yields during the driest months of the year. 
• If the water regulating services provided by forests were to be replaced by delivered water, the expected costs would be USD 419-1,064 per household per year, depending on the study site. These costs will be prohibitive to most households in the study sites as the majority subsist below the poverty line.
• Compared to a “no forest” scenario, forest reduce the volume of floodwater by 27% to 47% during the three wettest months of the year.  Forests on steep slopes (>30%) help mitigate the risk of erosion by 68% to 99% per hectare, and have the potential to reduce annual sediment outflows from watersheds by 7 to 100 times compared to bare soil. 
• Replacing erosion and sediment control services with manmade control measures will cost billions of pesos. Reforestation is a lower-cost alternative to securing erosion regulation ecosystem services over the medium term.
• Water was cited by poor upland communities as the most important subsistence benefit from the forest, which they use for domestic purposes and, in some instances, for irrigation. 

• Upland communities in UMRBPL reported that about 7% of their annual cash income comes from the sale of forest resources like bamboo products, charcoal, fish, and bush meat. Approximately 40% of their annual income comes from the sale of farm produce grown on forested land.
• Forests also provide fuelwood and wood for charcoal, which supplies most of the communities’ energy needs.
• Poorer households in upland communities rely more on forest resources for income and subsistence

The study concludes with a list of recommendations for landscape planning and forest management:

• Incorporate ecosystem service modeling and valuation, forest use analysis and scenarios in forest land use planning and forest management. 
• Improve access of upland and forest dwelling communities to forest resources.
• Enhance the value of forest assets by internalizing non-market values and adding value to the existing sources of income.

CHALLENGE

Tremendous progress has been made in reducing poverty over the past three decades. Nonetheless, more than 1 billion people worldwide still live in destitution. In addition, rising prosperity in many countries is accompanied by social exclusion and increasing inequality. The post-2015 Development Agenda has thus made reducing poverty its priority. The new World Bank strategy reinforces this objective, aiming to end extreme poverty in a generation and to promote shared prosperity for the bottom 40 percent. These goals will only be achieved if development is managed in an environmentally, socially, and fiscally sustainable manner.

The challenge for development is that the poor are often highly dependent on natural resources, such as forests. Although forests provide ecosystem services and safety nets for the livelihoods of the poor, forests are facing significant pressures from the range of sectors that are critical for economic growth, such as agriculture, transport and energy. Therefore, if sustainably managed, forests could play a significant role in achieving the twin goals of reducing poverty and building climate resilience. However, our understanding of this dual forest-poverty relationship is limited, which this study seeks to address..

APPROACH

This study focuses on the Philippines where, similar to many tropical countries, extensive deforestation and forest degradation have taken place over the last century due to logging, fires and other human disturbances, which are further aggravated by climate change. The country’s total forest cover has declined to merely 6.9 million hectares, or 23% of the total land area.

This study builds on the three primary roles that environmental income plays in supporting rural livelihoods: (i) supporting current consumption; (ii) providing safety nets to smooth income shocks or offset seasonal shortfalls, as well as impacts of climate change; and (iii) providing the opportunity to accumulate assets and exit poverty. Each of these roles is examined further in how they depend on and impact the ecosystem services provided by forests (including the impacts of climate change), and how they can help reduce extreme poverty and promote shared prosperity for the bottom 40%. Three case study sites were examined: the Upper Marikina RIver Basin Protected Landscape (UMRBPL), the Libmanan-Pulantuna Watershed (LPW), and the Umayam, Minor and Agusan Marsh Sub-basin (UMAM).

RESULTS

• Higher forest cover generates higher water yields during the driest months of the year. 
• If the water regulating services provided by forests were to be replaced by delivered water, the expected costs would be USD 419-1,064 per household per year, depending on the study site. These costs will be prohibitive to most households in the study sites as the majority subsist below the poverty line.
• Compared to a “no forest” scenario, forest reduce the volume of floodwater by 27% to 47% during the three wettest months of the year.  Forests on steep slopes (>30%) help mitigate the risk of erosion by 68% to 99% per hectare, and have the potential to reduce annual sediment outflows from watersheds by 7 to 100 times compared to bare soil. 
• Replacing erosion and sediment control services with manmade control measures will cost billions of pesos. Reforestation is a lower-cost alternative to securing erosion regulation ecosystem services over the medium term.
• Water was cited by poor upland communities as the most important subsistence benefit from the forest, which they use for domestic purposes and, in some instances, for irrigation. 

• Upland communities in UMRBPL reported that about 7% of their annual cash income comes from the sale of forest resources like bamboo products, charcoal, fish, and bush meat. Approximately 40% of their annual income comes from the sale of farm produce grown on forested land.
• Forests also provide fuelwood and wood for charcoal, which supplies most of the communities’ energy needs.
• Poorer households in upland communities rely more on forest resources for income and subsistence

The study concludes with a list of recommendations for landscape planning and forest management:

• Incorporate ecosystem service modeling and valuation, forest use analysis and scenarios in forest land use planning and forest management. 
• Improve access of upland and forest dwelling communities to forest resources.
• Enhance the value of forest assets by internalizing non-market values and adding value to the existing sources of income.

CHALLENGE

Tremendous progress has been made in reducing poverty over the past three decades. Nonetheless, more than 1 billion people worldwide still live in destitution. In addition, rising prosperity in many countries is accompanied by social exclusion and increasing inequality. The post-2015 Development Agenda has thus made reducing poverty its priority. The new World Bank strategy reinforces this objective, aiming to end extreme poverty in a generation and to promote shared prosperity for the bottom 40 percent. These goals will only be achieved if development is managed in an environmentally, socially, and fiscally sustainable manner.

The challenge for development is that the poor are often highly dependent on natural resources, such as forests. Although forests provide ecosystem services and safety nets for the livelihoods of the poor, forests are facing significant pressures from the range of sectors that are critical for economic growth, such as agriculture, transport and energy. Therefore, if sustainably managed, forests could play a significant role in achieving the twin goals of reducing poverty and building climate resilience. However, our understanding of this dual forest-poverty relationship is limited, which this study seeks to address..

APPROACH

This study focuses on the Philippines where, similar to many tropical countries, extensive deforestation and forest degradation have taken place over the last century due to logging, fires and other human disturbances, which are further aggravated by climate change. The country’s total forest cover has declined to merely 6.9 million hectares, or 23% of the total land area.

This study builds on the three primary roles that environmental income plays in supporting rural livelihoods: (i) supporting current consumption; (ii) providing safety nets to smooth income shocks or offset seasonal shortfalls, as well as impacts of climate change; and (iii) providing the opportunity to accumulate assets and exit poverty. Each of these roles is examined further in how they depend on and impact the ecosystem services provided by forests (including the impacts of climate change), and how they can help reduce extreme poverty and promote shared prosperity for the bottom 40%. Three case study sites were examined: the Upper Marikina RIver Basin Protected Landscape (UMRBPL), the Libmanan-Pulantuna Watershed (LPW), and the Umayam, Minor and Agusan Marsh Sub-basin (UMAM).

RESULTS

• Higher forest cover generates higher water yields during the driest months of the year. 
• If the water regulating services provided by forests were to be replaced by delivered water, the expected costs would be USD 419-1,064 per household per year, depending on the study site. These costs will be prohibitive to most households in the study sites as the majority subsist below the poverty line.
• Compared to a “no forest” scenario, forest reduce the volume of floodwater by 27% to 47% during the three wettest months of the year.  Forests on steep slopes (>30%) help mitigate the risk of erosion by 68% to 99% per hectare, and have the potential to reduce annual sediment outflows from watersheds by 7 to 100 times compared to bare soil. 
• Replacing erosion and sediment control services with manmade control measures will cost billions of pesos. Reforestation is a lower-cost alternative to securing erosion regulation ecosystem services over the medium term.
• Water was cited by poor upland communities as the most important subsistence benefit from the forest, which they use for domestic purposes and, in some instances, for irrigation. 

• Upland communities in UMRBPL reported that about 7% of their annual cash income comes from the sale of forest resources like bamboo products, charcoal, fish, and bush meat. Approximately 40% of their annual income comes from the sale of farm produce grown on forested land.
• Forests also provide fuelwood and wood for charcoal, which supplies most of the communities’ energy needs.
• Poorer households in upland communities rely more on forest resources for income and subsistence

The study concludes with a list of recommendations for landscape planning and forest management:

• Incorporate ecosystem service modeling and valuation, forest use analysis and scenarios in forest land use planning and forest management. 
• Improve access of upland and forest dwelling communities to forest resources.
• Enhance the value of forest assets by internalizing non-market values and adding value to the existing sources of income.

CHALLENGE

Tremendous progress has been made in reducing poverty over the past three decades. Nonetheless, more than 1 billion people worldwide still live in destitution. In addition, rising prosperity in many countries is accompanied by social exclusion and increasing inequality. The post-2015 Development Agenda has thus made reducing poverty its priority. The new World Bank strategy reinforces this objective, aiming to end extreme poverty in a generation and to promote shared prosperity for the bottom 40 percent. These goals will only be achieved if development is managed in an environmentally, socially, and fiscally sustainable manner.

The challenge for development is that the poor are often highly dependent on natural resources, such as forests. Although forests provide ecosystem services and safety nets for the livelihoods of the poor, forests are facing significant pressures from the range of sectors that are critical for economic growth, such as agriculture, transport and energy. Therefore, if sustainably managed, forests could play a significant role in achieving the twin goals of reducing poverty and building climate resilience. However, our understanding of this dual forest-poverty relationship is limited, which this study seeks to address..

APPROACH

This study focuses on the Philippines where, similar to many tropical countries, extensive deforestation and forest degradation have taken place over the last century due to logging, fires and other human disturbances, which are further aggravated by climate change. The country’s total forest cover has declined to merely 6.9 million hectares, or 23% of the total land area.

This study builds on the three primary roles that environmental income plays in supporting rural livelihoods: (i) supporting current consumption; (ii) providing safety nets to smooth income shocks or offset seasonal shortfalls, as well as impacts of climate change; and (iii) providing the opportunity to accumulate assets and exit poverty. Each of these roles is examined further in how they depend on and impact the ecosystem services provided by forests (including the impacts of climate change), and how they can help reduce extreme poverty and promote shared prosperity for the bottom 40%. Three case study sites were examined: the Upper Marikina RIver Basin Protected Landscape (UMRBPL), the Libmanan-Pulantuna Watershed (LPW), and the Umayam, Minor and Agusan Marsh Sub-basin (UMAM).

RESULTS

• Higher forest cover generates higher water yields during the driest months of the year. 
• If the water regulating services provided by forests were to be replaced by delivered water, the expected costs would be USD 419-1,064 per household per year, depending on the study site. These costs will be prohibitive to most households in the study sites as the majority subsist below the poverty line.
• Compared to a “no forest” scenario, forest reduce the volume of floodwater by 27% to 47% during the three wettest months of the year.  Forests on steep slopes (>30%) help mitigate the risk of erosion by 68% to 99% per hectare, and have the potential to reduce annual sediment outflows from watersheds by 7 to 100 times compared to bare soil. 
• Replacing erosion and sediment control services with manmade control measures will cost billions of pesos. Reforestation is a lower-cost alternative to securing erosion regulation ecosystem services over the medium term.
• Water was cited by poor upland communities as the most important subsistence benefit from the forest, which they use for domestic purposes and, in some instances, for irrigation. 

• Upland communities in UMRBPL reported that about 7% of their annual cash income comes from the sale of forest resources like bamboo products, charcoal, fish, and bush meat. Approximately 40% of their annual income comes from the sale of farm produce grown on forested land.
• Forests also provide fuelwood and wood for charcoal, which supplies most of the communities’ energy needs.
• Poorer households in upland communities rely more on forest resources for income and subsistence

The study concludes with a list of recommendations for landscape planning and forest management:

• Incorporate ecosystem service modeling and valuation, forest use analysis and scenarios in forest land use planning and forest management. 
• Improve access of upland and forest dwelling communities to forest resources.
• Enhance the value of forest assets by internalizing non-market values and adding value to the existing sources of income.

CHALLENGE

Tremendous progress has been made in reducing poverty over the past three decades. Nonetheless, more than 1 billion people worldwide still live in destitution. In addition, rising prosperity in many countries is accompanied by social exclusion and increasing inequality. The post-2015 Development Agenda has thus made reducing poverty its priority. The new World Bank strategy reinforces this objective, aiming to end extreme poverty in a generation and to promote shared prosperity for the bottom 40 percent. These goals will only be achieved if development is managed in an environmentally, socially, and fiscally sustainable manner.

The challenge for development is that the poor are often highly dependent on natural resources, such as forests. Although forests provide ecosystem services and safety nets for the livelihoods of the poor, forests are facing significant pressures from the range of sectors that are critical for economic growth, such as agriculture, transport and energy. Therefore, if sustainably managed, forests could play a significant role in achieving the twin goals of reducing poverty and building climate resilience. However, our understanding of this dual forest-poverty relationship is limited, which this study seeks to address..

APPROACH

This study focuses on the Philippines where, similar to many tropical countries, extensive deforestation and forest degradation have taken place over the last century due to logging, fires and other human disturbances, which are further aggravated by climate change. The country’s total forest cover has declined to merely 6.9 million hectares, or 23% of the total land area.

This study builds on the three primary roles that environmental income plays in supporting rural livelihoods: (i) supporting current consumption; (ii) providing safety nets to smooth income shocks or offset seasonal shortfalls, as well as impacts of climate change; and (iii) providing the opportunity to accumulate assets and exit poverty. Each of these roles is examined further in how they depend on and impact the ecosystem services provided by forests (including the impacts of climate change), and how they can help reduce extreme poverty and promote shared prosperity for the bottom 40%. Three case study sites were examined: the Upper Marikina RIver Basin Protected Landscape (UMRBPL), the Libmanan-Pulantuna Watershed (LPW), and the Umayam, Minor and Agusan Marsh Sub-basin (UMAM).

RESULTS

• Higher forest cover generates higher water yields during the driest months of the year. 
• If the water regulating services provided by forests were to be replaced by delivered water, the expected costs would be USD 419-1,064 per household per year, depending on the study site. These costs will be prohibitive to most households in the study sites as the majority subsist below the poverty line.
• Compared to a “no forest” scenario, forest reduce the volume of floodwater by 27% to 47% during the three wettest months of the year.  Forests on steep slopes (>30%) help mitigate the risk of erosion by 68% to 99% per hectare, and have the potential to reduce annual sediment outflows from watersheds by 7 to 100 times compared to bare soil. 
• Replacing erosion and sediment control services with manmade control measures will cost billions of pesos. Reforestation is a lower-cost alternative to securing erosion regulation ecosystem services over the medium term.
• Water was cited by poor upland communities as the most important subsistence benefit from the forest, which they use for domestic purposes and, in some instances, for irrigation. 

• Upland communities in UMRBPL reported that about 7% of their annual cash income comes from the sale of forest resources like bamboo products, charcoal, fish, and bush meat. Approximately 40% of their annual income comes from the sale of farm produce grown on forested land.
• Forests also provide fuelwood and wood for charcoal, which supplies most of the communities’ energy needs.
• Poorer households in upland communities rely more on forest resources for income and subsistence

The study concludes with a list of recommendations for landscape planning and forest management:

• Incorporate ecosystem service modeling and valuation, forest use analysis and scenarios in forest land use planning and forest management. 
• Improve access of upland and forest dwelling communities to forest resources.
• Enhance the value of forest assets by internalizing non-market values and adding value to the existing sources of income.

CHALLENGE

Tremendous progress has been made in reducing poverty over the past three decades. Nonetheless, more than 1 billion people worldwide still live in destitution. In addition, rising prosperity in many countries is accompanied by social exclusion and increasing inequality. The post-2015 Development Agenda has thus made reducing poverty its priority. The new World Bank strategy reinforces this objective, aiming to end extreme poverty in a generation and to promote shared prosperity for the bottom 40 percent. These goals will only be achieved if development is managed in an environmentally, socially, and fiscally sustainable manner.

The challenge for development is that the poor are often highly dependent on natural resources, such as forests. Although forests provide ecosystem services and safety nets for the livelihoods of the poor, forests are facing significant pressures from the range of sectors that are critical for economic growth, such as agriculture, transport and energy. Therefore, if sustainably managed, forests could play a significant role in achieving the twin goals of reducing poverty and building climate resilience. However, our understanding of this dual forest-poverty relationship is limited, which this study seeks to address..

APPROACH

This study focuses on the Philippines where, similar to many tropical countries, extensive deforestation and forest degradation have taken place over the last century due to logging, fires and other human disturbances, which are further aggravated by climate change. The country’s total forest cover has declined to merely 6.9 million hectares, or 23% of the total land area.

This study builds on the three primary roles that environmental income plays in supporting rural livelihoods: (i) supporting current consumption; (ii) providing safety nets to smooth income shocks or offset seasonal shortfalls, as well as impacts of climate change; and (iii) providing the opportunity to accumulate assets and exit poverty. Each of these roles is examined further in how they depend on and impact the ecosystem services provided by forests (including the impacts of climate change), and how they can help reduce extreme poverty and promote shared prosperity for the bottom 40%. Three case study sites were examined: the Upper Marikina RIver Basin Protected Landscape (UMRBPL), the Libmanan-Pulantuna Watershed (LPW), and the Umayam, Minor and Agusan Marsh Sub-basin (UMAM).

RESULTS

• Higher forest cover generates higher water yields during the driest months of the year. 
• If the water regulating services provided by forests were to be replaced by delivered water, the expected costs would be USD 419-1,064 per household per year, depending on the study site. These costs will be prohibitive to most households in the study sites as the majority subsist below the poverty line.
• Compared to a “no forest” scenario, forest reduce the volume of floodwater by 27% to 47% during the three wettest months of the year.  Forests on steep slopes (>30%) help mitigate the risk of erosion by 68% to 99% per hectare, and have the potential to reduce annual sediment outflows from watersheds by 7 to 100 times compared to bare soil. 
• Replacing erosion and sediment control services with manmade control measures will cost billions of pesos. Reforestation is a lower-cost alternative to securing erosion regulation ecosystem services over the medium term.
• Water was cited by poor upland communities as the most important subsistence benefit from the forest, which they use for domestic purposes and, in some instances, for irrigation. 

• Upland communities in UMRBPL reported that about 7% of their annual cash income comes from the sale of forest resources like bamboo products, charcoal, fish, and bush meat. Approximately 40% of their annual income comes from the sale of farm produce grown on forested land.
• Forests also provide fuelwood and wood for charcoal, which supplies most of the communities’ energy needs.
• Poorer households in upland communities rely more on forest resources for income and subsistence

The study concludes with a list of recommendations for landscape planning and forest management:

• Incorporate ecosystem service modeling and valuation, forest use analysis and scenarios in forest land use planning and forest management. 
• Improve access of upland and forest dwelling communities to forest resources.
• Enhance the value of forest assets by internalizing non-market values and adding value to the existing sources of income.

CHALLENGE

Tremendous progress has been made in reducing poverty over the past three decades. Nonetheless, more than 1 billion people worldwide still live in destitution. In addition, rising prosperity in many countries is accompanied by social exclusion and increasing inequality. The post-2015 Development Agenda has thus made reducing poverty its priority. The new World Bank strategy reinforces this objective, aiming to end extreme poverty in a generation and to promote shared prosperity for the bottom 40 percent. These goals will only be achieved if development is managed in an environmentally, socially, and fiscally sustainable manner.

The challenge for development is that the poor are often highly dependent on natural resources, such as forests. Although forests provide ecosystem services and safety nets for the livelihoods of the poor, forests are facing significant pressures from the range of sectors that are critical for economic growth, such as agriculture, transport and energy. Therefore, if sustainably managed, forests could play a significant role in achieving the twin goals of reducing poverty and building climate resilience. However, our understanding of this dual forest-poverty relationship is limited, which this study seeks to address..

APPROACH

This study focuses on the Philippines where, similar to many tropical countries, extensive deforestation and forest degradation have taken place over the last century due to logging, fires and other human disturbances, which are further aggravated by climate change. The country’s total forest cover has declined to merely 6.9 million hectares, or 23% of the total land area.

This study builds on the three primary roles that environmental income plays in supporting rural livelihoods: (i) supporting current consumption; (ii) providing safety nets to smooth income shocks or offset seasonal shortfalls, as well as impacts of climate change; and (iii) providing the opportunity to accumulate assets and exit poverty. Each of these roles is examined further in how they depend on and impact the ecosystem services provided by forests (including the impacts of climate change), and how they can help reduce extreme poverty and promote shared prosperity for the bottom 40%. Three case study sites were examined: the Upper Marikina RIver Basin Protected Landscape (UMRBPL), the Libmanan-Pulantuna Watershed (LPW), and the Umayam, Minor and Agusan Marsh Sub-basin (UMAM).

RESULTS

• Higher forest cover generates higher water yields during the driest months of the year. 
• If the water regulating services provided by forests were to be replaced by delivered water, the expected costs would be USD 419-1,064 per household per year, depending on the study site. These costs will be prohibitive to most households in the study sites as the majority subsist below the poverty line.
• Compared to a “no forest” scenario, forest reduce the volume of floodwater by 27% to 47% during the three wettest months of the year.  Forests on steep slopes (>30%) help mitigate the risk of erosion by 68% to 99% per hectare, and have the potential to reduce annual sediment outflows from watersheds by 7 to 100 times compared to bare soil. 
• Replacing erosion and sediment control services with manmade control measures will cost billions of pesos. Reforestation is a lower-cost alternative to securing erosion regulation ecosystem services over the medium term.
• Water was cited by poor upland communities as the most important subsistence benefit from the forest, which they use for domestic purposes and, in some instances, for irrigation. 

• Upland communities in UMRBPL reported that about 7% of their annual cash income comes from the sale of forest resources like bamboo products, charcoal, fish, and bush meat. Approximately 40% of their annual income comes from the sale of farm produce grown on forested land.
• Forests also provide fuelwood and wood for charcoal, which supplies most of the communities’ energy needs.
• Poorer households in upland communities rely more on forest resources for income and subsistence

The study concludes with a list of recommendations for landscape planning and forest management:

• Incorporate ecosystem service modeling and valuation, forest use analysis and scenarios in forest land use planning and forest management. 
• Improve access of upland and forest dwelling communities to forest resources.
• Enhance the value of forest assets by internalizing non-market values and adding value to the existing sources of income.