Publications

Linking FLEGT and REDD+ to Improve Forest Governance

The great potential for synergies between FLEGT and REDD+ has yet to be achieved in practice. This is the conclusion of the ETFRN News “Linking FLEGT and REDD+ to Improve Forest Governance”. The publication presents 22 experiences and viewpoints from around the world about the linkages between FLEGT, REDD+ and other international forest management initiatives.

In recent years, FLEGT and REDD+ have emerged as the two most prominent international processes to conserve tropical forests. Avoiding overlap and duplication, and better still, creating synergies is important to make sure that these two promising initiatives achieve their ambitious goals. Increased cooperation between the initiatives at the national level could advance forest governance reforms, strengthen stakeholder engagement and balance competing interests, such as using forests for local development, generating revenue and income, biodiversity conservation and carbon sequestration.

FLEGT and REDD+ both aim to address the drivers of forest loss in tropical countries, although with different approaches and methods: FLEGT focuses on combating illegal logging and REDD+ aims to reduce deforestation and forest degradation and enhance carbon stocks. Both initiatives are relatively new and still evolving. They are expected to demonstrate their potential in the next few years and may well foster real change in the land-use sector. As FLEGT and REDD+ initiatives continue to develop and accumulate experience, it is vital to learn from this and share the lessons learned.

Also, interactions between FLEGT and REDD+ are starting to emerge. As described in the 22 articles in this ETFRN News, there is a great potential for synergies between various initiatives, but translating this potential into practice seems challenging. To maximize synergies between FLEGT and REDD+ good communication and continued collaboration between all stakeholders needs to be ensured. Better integration and coordination of the FLEGT and REDD+ processes into national forest policy planning as well as better consideration of the strengths and limitations of both processes can be a way to promote the establishment of effective linkages.

This issue of ETFRN News contributes to a better understanding of the existing and potential linkages between various forest initiatives, and of how synergies can be fostered to improve land use governance and promote more efficient implementation FLEGT and REDD+. This will benefit both the forests and the people who depend on them.

Good Business Making Private Investments Work for Tropical Forests

Private finance is currently the most significant source of investment for forestry. Estimated to total around US $ 15 billion per year in developing countries and countries in transition, private-sector investment in the forestry sector far outstrips the combined investments of governments and development agencies. Although broad sectoral investment parameters are generally well understood, the exact shape and weight of domestic and international flows remain to a large extent unclear. The United Nations Forum on Forests, among others, has called for better mapping of the forest finance landscape to create a clearer understanding of the types and potential impacts of complementary public and private investment on future forests. With growing needs for forest products, there is increasing agreement that there is a significant gap between the levels of financing which are available from both public and private sources and the funding required to meet expected future demands.

The private sector is well positioned to help fill this gap, and private flows are expected to continue to grow as investors explore new investment frontiers. The challenge for entrepreneurs will be to manage both the impact and long-term viability of their supply chains as competition over forest land for food, fibre and fuel production becomes increasingly critical. While the availability of private money is good news, particularly when official development assistance is coming under increasing pressure, there is also cause for concern. Private-sector interests are often misaligned with local and global public interests, and social and environmental concerns are sometimes far less important to investors than their primary interest in profitability. A crucial challenge for policymakers will be to somehow reorient, increase and incentivize private finance to make it flow in adequate amounts towards sustainable, environmentally sound, and competitive forest management practices that can support responsible and profitable forest entrepreneurship. Partnerships between public and private actors, various types of investors, communities and intermediaries can make a big difference by creating synergies that build on shared interests.

This issue of ETFRN News brings together 23 articles that present and analyze concrete examples of various private actors along the tropical forest-finance chain (small, medium and large forest entrepreneurs and intermediary and advisory organizations). The experience of these frontrunners presents a compelling case for revisiting business as usual. As policy-makers and private actors refine their strategy for seizing opportunities and managing the risks associated with emerging forest-related markets, these articles demonstrate that overall economic, social and environmental benefits can be reaped if investments are targeted correctly.

Moving Forward with Forest Governance

It is widely acknowledged that improving forest governance is an important prerequisite for sustainable forest management and reducing deforestation and forest degradation. Making governance work better for people and forests is not an easy task. Divergent interests, imbalanced power relations and unequal access to information, decision-making, resources and benefits all contribute to this challenge. The 29 articles in this issue of ETFRN News showcase a rich diversity of examples of how forest governance has been addressed in various settings. The issue brings together experiences from a wide range of forest governance reform initiatives. Some relate to new lessons from well-established approaches to forest governance reform, such as community forestry; others relate to more recently developed initiatives, such as FLEGT. The articles show that international instruments — such as Voluntary Partnership Agreements, forest certification and more recently, REDD+ — are important drivers to address governance in the forest sector. Experiences described in the articles demonstrate that forest governance challenges do not have "one-size-fits-all" solutions. They also show that regardless of the entry point to initiate forest governance reform, there is always a set of underlying inter-related governance issues. Therefore, an integrated process approach is essential to successfully address forest governance reform. The participatory processes of "good" forest governance create the capacity for continuous learning and enhance the ability to adapt to lessons learned. The articles reveal that transparency, communication and access to information, and multi-stakeholder engagement in deliberative processes, particularly the meaningful participation of disadvantaged groups, are essential ingredients in moving forward with forest governance.