Financing sustainable small-scale forestry: Issues and lessons from developing national forest financing strategies in Latin America.

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Presentation by Marco Boscolo, FAO; Kees van Dijk, Tropenbos International; Herman Savenije, Tropenbos International. …

Presentation by Marco Boscolo, FAO; Kees van Dijk, Tropenbos International; Herman Savenije, Tropenbos International.
Financing sustainable small-scale forestry: Issues and lessons from developing national forest financing strategies in Latin America.
Oaxaca Workshop Forest Governance, Decentralisation and REDD+ in Latin America and the Caribbean,
31 August – 03 September 2010, Oaxaca, Mexico.

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  • 1. Financing sustainable small-scale forestry Issues and lessons from developing national forest financing strategies in Latin America Marco Boscolo , FAO Kees van Dijk , Tropenbos International Herman Savenije , Tropenbos International
  • 2. Context and Focus
    • Financing: a key issue in the forest debate
      • Deforestation/degradation more attractive than SFM
      • Many challenges, but …..also opportunities for improved forest financing
    • Focus of this presentation
      • Key issues in broadening the financial basis for sfm
        • Some findings from Latin America
        • Special focus on small scale forestry, investment finance and REDD+
    • Structure
      • Background and history
      • Financing of small scale forestry
      • Importance of an enabling environment
      • Communication and partnerships
      • Integrated financing strategies
      • Key considerations in relation to REDD+
  • 3. Background and history (1) Project: “ Estrategias y mecanismos financieros para la conservación y el uso sostenible de los bosques -Fase1: América Latina”. FAO – IUCN – CCAD – Netherlands   Project: “ Uso Sostenible y Conservación de los Bosques y de la Biodiversidad en la Región Amazónica” Programa Amazonía OTCA – NL – Germany NFP Facility Partnerships
  • 4. Background and history (2) Working in partnership The “project” is a collaborative effort between countries and their national forest programmes, sub-regional organizations and international organizations  Searching to collaborate with other parties
  • 5. Background and history (3)
    • Products and results
    • Country inventories (situation & perspectives)
    • National and sub-regional validation workshops
    • Synthesis document (Sp and En)
    • Policy briefs, various articles and presentations
    • Capacity building module for in-country strategy development (by NFP Facility, FAO and Wageningen International):
    • Strategy development and implementation processes in progress in Guatemala, El Salvador, Paraguay, Ecuador, Suriname, ACICAFOC; planned in Peru, Bolivia and others; also in Africa and Asia
    • An informal network of Latin-American experts and organisations on FF
    • Websites:
    • www.fao.org/forestry/mecanismosfinancieros
    • http://www.fao.org/forestry/finance/en/
    • www.tropenbos.org
  • 6. Financing of small scale forestry (1)
    • Diversity in local stakeholders:
    • “ One size does not fit all”
  • 7. Financing of small scale forestry (2)
    • Start from existing people's livelihood strategies
  • 8. Financing of small scale forestry (3)
    • Formal financing instruments are diverse, but suitability and access often limited (credit, project financing, aid, phylantropic, public incentives, private investment, funds, partnerships)
    • Informal financing important but not well known f.e. Habilito system
    • Potential of new instruments largely untapped (capital market, PES, Risk mitigation)
  • 9. Enabling Environment
    • Is money availability the biggest problem?
    • Framework conditions often major constraint and risk factor
      • Governance and institutions (competence, credibility, accountability, innovation and participation)
      • Tenure security – necessary but not sufficient, “good enough tenure”, need for creative solutions
      • Meaningful participation – at all levels for all groups
  • 10. Bridging the disconnects
    • Forest and financing sector: two worlds apart
      • Paraguay experience
    • Intersectoral policy, communication and cooperation
    • Partnerships between “big” and “small”
    • More strategic outreach skills and attitudes needed by forest sector
  • 11. An integrated approach
    • National Forest Financing Strategies (multi-actor, multi-sector and multi-level)
      • Guatemala experience
    • Bundling: combining a multiplicity of sources, instruments and forest ecosystem services
    • Connecting to the “unusual suspects”, investing in new partnerships
  • 12. Considerations for REDD+
    • The need for “community-readiness” of REDD+:
      • Recognize diversity and local specificity
      • Start from livelihood strategies
      • Meaningful participation at all levels
    • Integrate REDD+ financing within broader national (forest) financing strategies
    • Build on existing structures, but be mindful of their strengths/weaknesses
    • Be strategic
      • No blueprints
      • Cross-sectoral partnerships
    • Promote innovation, learning and engagement across borders ( incl. strengthening collaboration and exchange with other initiatives f.e. GFP, Forest Dialogue)
  • 13. Gracias - Thanks [email_address] [email_address] [email_address]