A Changing, Landscape Forests, Industry & UNFF
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1 A Changing, Landscape Forests, Industry & UNFF Timber Invest Europe 8 October, 2013 The UNFF context UN Forum on Forests an intergovernmental forum deliberating on a full range of SFM issues from economic development to climate change. Key political debates have centered on legal frameworks, and financing (including creating a global forest fund) Key stakeholders governments (forestry ministry officials, negotiators), IGOs, and stakeholders (major groups) However private sector & industry has been noticeably absent from these discussions 1
2 Outline of this Presentation Key issues discussed at UNFF10 Economic contributions of forests Growing recognition of cross-sectoral linkages Key challenges and opportunities Economic Contributions of Forests: Formal (monetary)/ Informal, Poverty Alleviation, Livelihoods 2
3 Cash/Formal Contributions $468 billion per year* ~1% of global GDP Employment: 60 million people in formal sector Non-wood Forest Products (NWFPs) Highly variable by tradable value Largely non-cash (directly used or bartered) * from formal industries, including roundwood production, wood processing and pulp and paper (FAO 2010) Non-Cash Contributions Forest products that are directly consumed E.g. NWFPs, ecosystem services, medicinal uses, tourism, & cultural benefits Difficult to quantify and monetize; invisible in GDP data and indicators 3 5 times of cash contributions Women & children: the most common consumers of forest foods 3
4 Poverty Alleviation Reduce the vulnerability of households Increase livelihood resilience In rural households, especially Direct consumption, in addition to cash. e.g. Energy security, shelter and furnishings, medicinal use, food, nutritional security, & health E.g. Uganda, the Comoros, Thailand water transport energy Forests Growing recognition of Cross-Sectoral linkages health agriculture climate change 8 4
5 Forests and Agriculture Increasingly urbanized consumption patterns large-scale commercial agricultural production conversion of forests to pastures for livestock and crops Opportunities increased agricultural productivity, landscape reforestation e.g. India, China and Vietnam Forests and Water 75% of freshwater is provided through forested catchements Payments for watershed service schemes have gained popularity to improve the efficiency of watershed management in some countries, e.g. Costa Rica, Mexico and China # of schemes worldwide: 8 (1999) 47 (2008) Total transacted value in 2008: $7.8 billion 5
6 Forests and Energy 3 billion+ people worldwide rely on fuelwood for cooking and heating ~90% of the consumption of fuelwood and charcoal is in developing countries Biofuel and its growth a wild card Key Challenges & Opportunities 6
7 Competing pressures on Forests Global economic growth is driving increased infrastructure development, especially in developing countries; Population increases, from a more urban, older population is putting greater pressure of forests; Climate Change is impacting forest biodiversity, forest health, and the productive and protective functions of forests Challenges invisible benefits Some benefits/values are hard to quantify e.g. Subsistence benefits, Ecosystem services Data gaps insufficient data on forest values not exchanged for cash in the informal sector not recognized by trade or finance authorities Working cross-sectorally is still in nascent stages institutions are still adapting 7
8 Lack of data on private-sector contributions beyond GDP indicators Private sectors organizations often directly provide social services including: Firms that provide schools, hospitals, and recreation facilities Forest entities provided financial support for health care, recreation, and even funerals Forest operations provided skills training and other capacity-building activities to its employees and the greater community. Long-term Challenges Capturing opportunities & risks Role of technology Public perception/reputational risks Impact of governance and conflicts Changing priorities in financing 8
9 There is light at the end of the tunnel.. Landscape level planning at a national and sub national level to balance competing needs Restoration 2 billion ha worldwide potential for restoration Agroforestry Data/info improvement Capturing NWFPs and ecosystem services values which can be larger than cash-based products 9
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