Forests as Capital: Financial Mechanisms for Tropical Forest Conservation

Abstract

Tropical forest loss and degradation due to human activities have been persistent and intractable global problems. Model estimates suggest that current levels of finance for conservation and sustainable forest management (SFM) are insufficient and may need to increase by an order of magnitude in order to meet this challenge. This special issue presents select articles from the 2014 Yale International Society of Tropical Foresters (ISTF) Annual Conference, which explored diverse finance mechanisms such as REDD+, sustainability certification, ecological compensation, community forestry, and official development assistance. Each finance mechanism has advantages and disadvantages, which render them effective under specific circumstances. Comprehensive tropical forest conservation will require a diverse portfolio of finance strategies appropriate for local institutional and ecological conditions. Hybrid strategies combining elements of multiple schemes could bolster conservation and SFM efforts by leveraging their respective strengths. Clear and realistic targets and baselines, robust monitoring and measurement-reporting-verification, strong governance and institutions, and periodic evaluation can contribute to the successful application of forest conservation finance. Due to the potentially high damages, especially to the world's poorest communities from continuing current deforestation trends, substantially greater financing of tropical conservation and SFM is a sound global investment.

The potency of coffee plants in agroforestry system in Baringin Village, Agam Regency, West Sumatra to support social forestry program and its contribution to mitigate climate change

“…One approach is through Community Forest Enterprises (CFEs), where social forestry classifies CFEs as Social Forestry Enterprise Groups or KUPS [28]. CFEs easily adapt to the local community, increase their economic income, encourage investments, and create further job opportunities [29].…”

Topical themes in biodiversity financing

“…Payments for Ecosystem Services exemplify these endeavours. Connected to market-based mechanisms is the emergence of businesses as new players in biodiversity conservation as investors, financial experts and third-party partners: as investors the expectation is straightforward, injecting private finances into biodiversity conservation (Bos et al 2015;McFarland 2015); as financial experts providing much-needed knowledge and expertise required to manage market-based mechanisms (Bos et al 2015;Ando and Shah 2016;Dempsey and Suarez 2016); and as third-party partners in ensuring transparency, accountability and high standards are maintained (Bode et al 2011;Little et al 2014;Githiru et al 2015;Chow 2015). Some also see business as the new conservationists taking over management from government, and bringing improvements in productivity and efficiency.…”

Networks and flows of conservation finance: the case of World Wide Fund for Nature (WWF)

“…The third dominant theme in the reviewed literature is innovative financial mechanisms. ; as financial experts providing much needed knowledge and expertise required to manage market-based mechanisms ; and as third-party partners in ensuring transparency, accountability and high standards are maintained (Githiru et al, 2015;Little et al, 2014;Bode et al, 2011;Chow, 2015). Some also see business as the new conservationists taking over management from government, and bringing improvements in productivity and efficiency.…”