Forest finance systems

finance pic

Adequate financing of national forest programme components is essential in order for implementation to proceed. This digest looks at material devoted to raising funds to enable the realisation of forest programmes


Traditionally, forest finance has been approached through government allocation to the sector and through revenue raised from sources such as tariffs and taxes on forest exploitation. In addition, many countries have relied on external aid for the implementation of programmes. Analyses of these financing systems have therefore looked to fiscal reform and increased aid effectiveness as ways to optimise the application and use of available funds.

More recently, the spotlight has also focussed on new and innovative financing mechanisms such as those offered by climate change mitigation instruments and by measures aimed at the realising intangible benefits of forests including biodiversity, protection and human use values.

Approaches that seek to improve the marketing of forest produce and the stimulation of new markets are also ultimately aiming to increase financial inflows to the sector.

Interfaces with other digests

The rural poor are frequently seen as the one stakeholder group most often marginalised in forest management decisions, for this reason there are many efforts underway to improve their participation

With forestry¿s shift towards participatory methods and decentralisation, there are strong links between these topics and the reform of financial systems

last updated:  Monday, August 14, 2006