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Financing sustainable small-scale forestry Issues and lessons from developing national forest  financing strategies in Lat...
Context and Focus <ul><li>Financing: a key issue in the forest debate </li></ul><ul><ul><li>Deforestation/degradation more...
Background and history (1) Project: “ Estrategias y mecanismos financieros para la conservación y el uso sostenible de los...
Background and history (2) Working in partnership The “project” is a collaborative effort between countries and their nati...
Background and history (3) <ul><li>Products and results </li></ul><ul><li>Country inventories (situation & perspectives) <...
Financing of small scale forestry (1) <ul><li>Diversity in local stakeholders:  </li></ul><ul><li>“ One size does not fit ...
Financing of small scale forestry (2) <ul><li>Start from existing people's livelihood strategies </li></ul>
Financing of small scale forestry (3) <ul><li>Formal financing instruments are diverse, but suitability and access often l...
Enabling Environment <ul><li>Is money availability the biggest problem? </li></ul><ul><li>Framework conditions often major...
Bridging the disconnects <ul><li>Forest and financing sector: two worlds apart </li></ul><ul><ul><li>Paraguay experience <...
An integrated approach <ul><li>National Forest Financing Strategies (multi-actor, multi-sector and multi-level) </li></ul>...
Considerations for REDD+ <ul><li>The need for “community-readiness” of REDD+: </li></ul><ul><ul><li>Recognize diversity an...
Gracias - Thanks [email_address] [email_address] [email_address]
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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.
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.

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

  1. 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. 2. Context and Focus <ul><li>Financing: a key issue in the forest debate </li></ul><ul><ul><li>Deforestation/degradation more attractive than SFM </li></ul></ul><ul><ul><li>Many challenges, but …..also opportunities for improved forest financing </li></ul></ul><ul><li>Focus of this presentation </li></ul><ul><ul><li>Key issues in broadening the financial basis for sfm </li></ul></ul><ul><ul><ul><li>Some findings from Latin America </li></ul></ul></ul><ul><ul><ul><li>Special focus on small scale forestry, investment finance and REDD+ </li></ul></ul></ul><ul><li>Structure </li></ul><ul><ul><li>Background and history </li></ul></ul><ul><ul><li>Financing of small scale forestry </li></ul></ul><ul><ul><li>Importance of an enabling environment </li></ul></ul><ul><ul><li>Communication and partnerships </li></ul></ul><ul><ul><li>Integrated financing strategies </li></ul></ul><ul><ul><li>Key considerations in relation to REDD+ </li></ul></ul>
  3. 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. 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. 5. Background and history (3) <ul><li>Products and results </li></ul><ul><li>Country inventories (situation & perspectives) </li></ul><ul><li>National and sub-regional validation workshops </li></ul><ul><li>Synthesis document (Sp and En) </li></ul><ul><li>Policy briefs, various articles and presentations </li></ul><ul><li>Capacity building module for in-country strategy development (by NFP Facility, FAO and Wageningen International): </li></ul><ul><li>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 </li></ul><ul><li>An informal network of Latin-American experts and organisations on FF </li></ul><ul><li>Websites: </li></ul><ul><li>www.fao.org/forestry/mecanismosfinancieros </li></ul><ul><li>http://www.fao.org/forestry/finance/en/ </li></ul><ul><li>www.tropenbos.org </li></ul>
  6. 6. Financing of small scale forestry (1) <ul><li>Diversity in local stakeholders: </li></ul><ul><li>“ One size does not fit all” </li></ul>
  7. 7. Financing of small scale forestry (2) <ul><li>Start from existing people's livelihood strategies </li></ul>
  8. 8. Financing of small scale forestry (3) <ul><li>Formal financing instruments are diverse, but suitability and access often limited (credit, project financing, aid, phylantropic, public incentives, private investment, funds, partnerships) </li></ul><ul><li>Informal financing important but not well known f.e. Habilito system </li></ul><ul><li>Potential of new instruments largely untapped (capital market, PES, Risk mitigation) </li></ul>
  9. 9. Enabling Environment <ul><li>Is money availability the biggest problem? </li></ul><ul><li>Framework conditions often major constraint and risk factor </li></ul><ul><ul><li>Governance and institutions (competence, credibility, accountability, innovation and participation) </li></ul></ul><ul><ul><li>Tenure security – necessary but not sufficient, “good enough tenure”, need for creative solutions </li></ul></ul><ul><ul><li>Meaningful participation – at all levels for all groups </li></ul></ul>
  10. 10. Bridging the disconnects <ul><li>Forest and financing sector: two worlds apart </li></ul><ul><ul><li>Paraguay experience </li></ul></ul><ul><li>Intersectoral policy, communication and cooperation </li></ul><ul><li>Partnerships between “big” and “small” </li></ul><ul><li>More strategic outreach skills and attitudes needed by forest sector </li></ul>
  11. 11. An integrated approach <ul><li>National Forest Financing Strategies (multi-actor, multi-sector and multi-level) </li></ul><ul><ul><li>Guatemala experience </li></ul></ul><ul><li>Bundling: combining a multiplicity of sources, instruments and forest ecosystem services </li></ul><ul><li>Connecting to the “unusual suspects”, investing in new partnerships </li></ul>
  12. 12. Considerations for REDD+ <ul><li>The need for “community-readiness” of REDD+: </li></ul><ul><ul><li>Recognize diversity and local specificity </li></ul></ul><ul><ul><li>Start from livelihood strategies </li></ul></ul><ul><ul><li>Meaningful participation at all levels </li></ul></ul><ul><li>Integrate REDD+ financing within broader national (forest) financing strategies </li></ul><ul><li>Build on existing structures, but be mindful of their strengths/weaknesses </li></ul><ul><li>Be strategic </li></ul><ul><ul><li>No blueprints </li></ul></ul><ul><ul><li>Cross-sectoral partnerships </li></ul></ul><ul><li>Promote innovation, learning and engagement across borders ( incl. strengthening collaboration and exchange with other initiatives f.e. GFP, Forest Dialogue) </li></ul>
  13. 13. Gracias - Thanks [email_address] [email_address] [email_address]

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