How fiscal policy can help save forests - worldbank
The world is facing unprecedented economic and environmental challenges. While climate change increasingly poses risks to macroeconomic and fiscal stability, deforestation and forest degradation impair the ability of forests to act as carbon sinks and reduce the resiliency of local communities to climate damages. The loss and decay of forests also threaten global biodiversity, the provision of ecosystem services, and other core ecological functions that economies worldwide rely on.
A green recovery must include fiscal reforms for forest sustainability
Against this backdrop, the COVID-19 pandemic has presented governments across the world with a serious public health emergency and thrust the global economy into crisis. Recovery packages must immediately address the health and economic crises. Longer-term responses must also tackle the underlying causes of the pandemic, to reduce the chance of similar future predicaments.
Improving fiscal incentives helps align environmental and fiscal sustainability
Responding to these multiple challenges will require massive investments. For example, the estimated investment needed for countries to achieve their Nationally Determined Contributions to the Paris Agreement exceeds $1 trillion per year over the next 15 years. Governments must mobilize and channel these resources during a time of increasingly tight fiscal space, especially as most categories of government revenue decline and available funding is committed to recovery efforts.
"Fiscal policy reforms can greatly reduce the cost of achieving sustainability by improving incentives for private-sector stakeholders to co-invest in the sustainable use of resources."
Fiscal policies influence forest conservation and ecosystem health, for better or worse
Such fiscal instruments have so far been underutilized. However, there is growing interest among policy makers, who are responding to a developing body of evidence pointing to the effectiveness and urgency of green fiscal policies, including for forests and other sustainable land uses. This growing interest has coincided with the development of new fiscal instruments and policy combinations that can help policy makers better target and influence incentives to manage land use change and slow deforestation in a revenue-neutral or even revenue-raising manner.
In many countries, current tax rates on commodities fall short of the price signals needed to provide adequate incentives for the sustainable use of resource bases. Apart from raising these taxes, their environmental effectiveness can be significantly improved by letting tax rates vary according to the sustainability of production of commodities, alongside other reforms to the structure of forest-related tax systems such as enforcement using choke points such as ports where products are shipped.
Reducing distortionary agricultural subsidies is another way of modifying the balance of private incentives for land use change that can also free up additional revenues.
Ecological fiscal transfers are a revenue-neutral instrument that can influence the incentives of public actors to enforce forest laws within their jurisdictions.
Fiscal policies on forestry and other competing land use sectors often contradict each other. Reforming these sectoral policies with a whole-economy perspective can reduce the overall cost of achieving sustainability objectives effectively.
The report builds the case for reforming and implementing fiscal policies that reduce private and public incentives for deforestation, forest degradation, and land use change, and instead encourage forest conservation, sustainable management, and green global value chains. It is also an urgent call to action.
As the world races to mitigate global warming, agricultural expansion generally characterized by the practice of slash and burn has been identified as the topmost driver of deforestation that leads to carbon emission in the world’s largest carbon sink. In a new report titled Congo Basin Forests – State of the Forests 2021 produced by the Central Africa Forest Observatory (OFAC), experts say population growth puts fresh pressure on the forests of Central Africa and consequently reduce carbon stock as thousands of arrival of agrarian households into forest areas leads to clearing to establish farmlands. The experts also listed logging, territorial development, land use, governance and need for energy as other factors driving deforestation.
The Green Climate Fund (GCF) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH have signed an agreement with the Government of Lao People’s Democratic Republic (PDR) for a USD 79.3 million project (USD 35.2 million in GCF financing), to address a much-needed transition to the climate resilient management of forests and landscapes at scale.
GCF and the World Bank have signed an instrumental legal agreement to rapidly begin implementing the second phase of a renewable energy facility. It will support nine countries in meeting their NDC commitments while increasing access to electricity for the most vulnerable populations. The mitigation/adaptation cross-cutting Facility aims to also increase the reliability of the grid infrastructure, improving the country’s economic resilience, and the resilience of vulnerable households to better adapt to the devastating impacts of climate change.
On 5 January 2023, during the ceremony to present New Year’s greetings to the President of the Republic of Congo, Denis Sassou N’Guesso reiterated the announcement he had made at the 27th United Nations Climate Conference (COP27) in Egypt. In his capacity as president of the Congo Basin Climate Commission, he announced that the summit of the world’s three major forest basins would be held in Brazzaville in June 2023. The Congo Basin in Central Africa, the Amazon Basin in South America and the Borneo Mekong Basin in Southeast Asia.
As part of an effort to operationalize an integrated landscape approach in southern Zambia, the COLANDS (Collaborating to operationalize landscape approaches for nature, development, and sustainability) initiative has been developing and applying new tools and techniques designed to understand and integrate stakeholder visions for the Kalomo Hills Forest Reserve landscape.
The thirty-fifth meeting of the Green Climate Fund (GCF) Board has ended with the approval of USD 587.7 million in new climate finance for developing nations, as well as the selection of a new Executive Director. Mafalda Duarte has been selected as the next Executive Director of GCF, with Henry Gonzalez, GCF Deputy Executive Director, appointed to serve as interim Executive Director until Duarte starts her tenure with GCF. The outgoing Executive Director Yannick Glemarec is reaching the end of his four-year term and will leave GCF on 2 April 2023.
“Working on gender issues requires the ability to understand questions such as ‘why’ and ‘how’,” said Stibniati Atmadja, Ethiopia’s Country Lead for the International Fund for Agricultural Development (IFAD)’s Women’s Land Rights Initiative (WLR). “Qualitative data is key for this – but collecting and analyzing such data is a major skill gap in many countries.”
The Green Climate Fund (GCF) Board has selected Mafalda Duarte as its new Executive Director. Following an extensive global recruitment process, the Board made the selection during its thirty-fifth meeting at the GCF headquarters in Songdo, Incheon, Republic of Korea.
For developing countries who are part of the UN’s REDD+ scheme (to reduce emissions from deforestation and forest degradation, and foster conservation, sustainable management of forests, and enhancement of forest carbon stocks), establishing baseline forest reference emission levels (FREL) is essential obligation to track progress towards reducing greenhouse gas emissions. FREL covers emissions from deforestation and – in some countries – from forest degradation and peat decomposition. In countries like Indonesia, Peru, the Democratic Republic of Congo (DRC), and the Republic of Congo (RoC), that have large amounts of standing forest – and which can contribute significantly to a country’s emissions due to land-use change – these reference levels are particularly critical.
Ghana has become the second country in Africa after Mozambique to receive payments from a World Bank trust fund for reducing emissions from deforestation and forest degradation, commonly known as REDD+. The World Bank’s Forest Carbon Partnership Facility (FCPF) paid Ghana $4,862,280 for reducing 972,456 tons of carbon emissions for the first monitoring period under the program (June to December 2019).
Paris, 27 February 2023 – The One Forest Summit will be held in Libreville, Gabon, on 01-02 March, with the goal of making progress on climate action and protecting biodiversity by promoting solidarity between the three major forest basins of the world. Director General Audrey Azoulay will attend to highlight UNESCO’s unique mandate to protect forest areas and numerous conservation programs.
Mungu Amurinde Jeanne d’Arc, a resident of Rubavu District in the Western Province of Rwanda has expressed special gratitude to the President of Rwanda Paul Kagame for the positive impacts brought by the Sebeya Catchment conservation project.
Baroness Scotland is head of the Commonwealth Secretariat - the organisation's main intergovernmental agency. Getty Image. The Commonwealth Secretary-General, Rt Hon Patricia Scotland KC, will be in Gabon from Wednesday 1 March to highlight the importance of protecting global biodiversity at the One Forest Summit in Libreville on Thursday.
The SOF 2021 four-part report highlights facts and figures on the Congo basin forests recognized worldwide for their essential role in carbon sequestration and the conservation of biological diversity. It also provides considerations that will guide decisions on forest management.
Following an initial call for proposals launched in March 2022, the RESSAC coordination committee is calling on scientific and academic institutions from Central African and European countries, as well as on forest and environmental resource managers from Central Africa, to form a grouping and submit research proposals for RESSAC funding. For this second call for proposals, the RESSAC programme will favour research proposals relating to the social and/or economic sciences. Proposals should be sent by 15 April 2023 at the latest.
For decades, Lake Chad has remained a mainstay for the Basin’s 45-50 million people, most of whom are fishermen, farmers, herders, and petty traders who depend on the Lake for their livelihoods and economic well-being. However, over the years, the combined effects of the Lake’s shrinking and variability due to climate change has resulted in the increasing loss of livelihood for the region.
Niamey is hosting a high-level international conference on the Lake Chad Basin since 23 January 2023. Co-organized by Germany, Norway, the United Nations System (OCHA, UNDP) and Niger (host country), this two-day meeting brings together the governments of the region (Niger, Nigeria, Chad and Cameroon) as well as international donors and partners, multilateral and international organizations.
The commitment was made during the High-Level Conference on the Lake Chad Region held in Niamey from 23 – 24 January 2023. The two-day Conference brought together over 30 countries, international organisations, and more than 100 civil society organisations in the capital of Niger. The Conference aimed to ensure that the people of this hard-hit region have humanitarian assistance and protection and foster solutions for durable solutions, including the voluntary return, reintegration, and resettlement of returnees and displaced persons (refugees band internally displaced persons) in a dignified manner.
Should the international community pay tropical forest countries for services to humanity? The countries concerned frequently request such payments to compensate for their loss of revenue as a result of being unable to convert forest areas to farmland and mining operations. The authors of the latest IDDRI Issue Brief are calling for "payments for environmental services" schemes to be included in a broader co-investment for sustainable development approach.
Agroecology sets out to make use of biodiversity and boost soil health to make farming systems more resilient. How can we apply those principles to crop protection? Can we do without ? What sort of research is still needed? An international team of around 50 researchers gives some answers in a reference article in the journal Advances in Agronomy.
The Carbon & Biodiversity Commission regularly reviews relevant news and information on carbon and biodiversity and prepares a summary. We share with you here the main points of the 6th watch. The newsletter is available on request for ATIBT members.
The threshold of 10 million hectares certified as being under sustainable management should be crossed in 2025, according to the analysis of forest certification data in the Congo Basin carried out by the ATIBT Certification Commission. This is also an opportunity to look at the incentives for certification in the different countries.
Over a decade from the adoption of seven safeguard principles for REDD+ by the United Nations 2010 Climate Change Conference (UNFCCC COP16), the national implementation of two safeguards that address Indigenous Peoples and local communities (IPs and LCs) remains a work in progress.
Wild mammals, reptiles, birds and insects are eaten by people worldwide. But overhunting – driven mainly by the demand for wild meat in urban centres – is threatening hundreds of wildlife species with extinction. It also risks cutting off millions of families from a critical source of nutrition, especially Indigenous Peoples and local communities in tropical and subtropical regions. Widespread commercial trade further complicates the issue.
On 9 March 2023 representatives of the European Parliament’s Responsible Business Conduct (RBC) Working Group, the Greens/EFA and Fern will host an event “How Partnerships complement the EU Deforestation Regulation: A discussion on the EU Strategic Framework for Partnerships”. Speakers will include representatives from Tropical Forested countries, European Policymakers and civil society actors and the discussions will focus on the elements that would make Partnerships a success.
Caught between climate change and ever-growing global demand for wood, natural tropical forests are more vulnerable than ever. We urgently need to find new sources of timber, particularly since the current sustainability criteria are failing to guarantee stand renewal. Plinio Sist, Head of CIRAD's Forests and Societies research unit, looks at the alternatives.
After several decades in Cameroon, and despite their significant contribution to agricultural research and development in Cameroon, the CGIAR Centers and their achievements are still not well known in the country. The centers organized an open day in Yaoundé on 19 January to amplify CGIAR and its partners’ actions to transform food systems in Cameroon and beyond while enhancing environmental health and biodiversity, despite the ongoing climate crisis.
International Day of Women and Girls in Science, celebrated on 11 February, recognizes the often overlooked contributions of women scientists. Research shows that despite a shortage of skills in most technological areas, gender disparity still exists in the field. Women make up less than a third of the workforce across science, technology and engineering. Women scientists are typically given smaller research grants than their male colleagues, and their work tends to be underrepresented in high-profile journals.
Drought is one of nature's costliest disasters – across the globe, more frequent and prolonged droughts are up nearly by a third since 2000. No country or region is immune to their impacts, which cost the global economy billions of dollars each year and range from the loss of life, livelihoods and biodiversity to water and food insecurity, disruption in the energy, transportation and tourism sectors, as well as forced migration, displacement and conflicts over scarce resources.
Gracing every continent of the Earth, wetlands are essential to the planet’s health, often compared to its vital organs, acting as arteries that carry water and as kidneys that filter harmful substances. Wetlands serve as the watchful sentinels of our wellbeing: they form protective barriers against tsunamis and sponge up the excess rainfall to reduce flood surges.
Bonn, Germany, 10 February 2023 – Today, the United Nations Convention to Combat Desertification (UNCCD) and the Korea Forest Service of the Republic of Korea signed a new Memorandum of Understanding to further support Land Degradation Neutrality (LDN).
Addressing the UN General Assembly (UNGA), UN Secretary-General António Guterres highlighted his priorities for 2023. Describing 2023 as “a year of reckoning,” he urged Member States to change the mindset of decision making from near-term thinking to long-term thinking and develop a strategic vision to act decisively “in deep and systemic ways.”
The resumed first meeting of the ad hoc Open-ended Working Group on a Science-Policy Panel for Chemicals, Waste, and Pollution (OEWG 1.2) continued its task of developing a science-policy panel, which will help scientists and policymakers inform one another on these issues. Delegates agreed on capacity building as a new function of the panel.
Permanent Representatives of Ireland and Qatar to the UN convened an informal meeting to hear delegates’ preliminary views on the scope and substance of the political declaration to be adopted by the 2023 SDG Summit in September. The co-facilitators also outlined their approach to the consultation process and timing of future meetings.
Peru has recognized the role of Indigenous Amazonian Peoples for ensuring the sustainable use of one the world’s most biodiverse biomes and realising its climate and conservation plans. However, community forest management, or CFM, has struggled to deliver on its promise of environmental and livelihood improvements. In Peru, as in many other tropical forest countries, communities are often unable to comply with forestry regulations and are pushed to the informal sector, where unjust commercial relations and unsustainable practices predominate.