Economics, Trade and Incentive Measures

ID 8369
Submitting Entity United Nations Forum on Forests
Submitted for Tenth meeting of the Subsidiary Body on Scientific, Technical and Technological Advice (SBSTTA 10)
Main Information
Title Financing for Sustainable Forest Management: Current Challenges in the Changed Financial Environment.
Description The present note provides background information to assist the Ad Hoc Expert 
Group on the Finance and Transfer of Environmentally Sound Technologies in 
carrying out its tasks. 
Financing is a pervasive issue in the international development policy 
framework. Adequate financing for sustainable forest management is directly linked 
to poverty alleviation, improved food security, access to safe drinking water, 
affordable energy, changing unsustainable patterns of consumption and production 
and protecting and managing the natural resource base of economic and social 
Currently several market and policy failures decrease the profitability of 
sustainable forest management. Also, perverse incentives and higher profits in other 
economic sectors contribute to deforestation and forest degradation. Considering the 
decline in overseas development assistance, which has seriously affected the primary 
production sector in developing countries, it is difficult to build realistic financial 
strategies based on an increasing role of official development assistance flows. On 
the other hand, private investments have been increasing, but the investment climate 
in forestry is currently not competitive. Furthermore, most of the foreign direct 
investment goes to a very limited number of countries. For the vast majority of 
developing countries official development assistance remains the backbone of 
Web Link /doc/case-studies/inc/cs-inc-unff-02-en.pdf
Additional Information
Ecosystems Forest Biodiversity
Incentive Measures Reform of Perverse Incentives
Economic Valuation
Keywords Subsidy reform