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Towards Effective National Forest Funds

FAO Forestry Paper no. 174












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    Book (stand-alone)
    Making national forest funds more effective 2015
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    This Policy Brief has been issued in conjunction with and partly as a summary of "Towards effective national forest funds", Forestry Paper no. 174. It aims to give a quick overview of the mechanism of financing sustainable forest management projects through national forest funds (NFFs) and on how this financing mechanism can be used in an effective way.
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    Book (stand-alone)
    National Forest Funds (NFFs)
    Towards a solid architecture and good financial governance
    2013
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    In recent years, National Forest Funds (NFFs) have regained international attention as potential solutions to improve financial governance and the administration of funds in the forestry sector. NFFs are financing mechanisms solely dedicated to improving the conservation and sustainable use of forest resources. They are usually established in order to pursue forest related activities independent from traditional budgetary allocation restrictions and are typically endowed with funds from national budgets, ODA and dedicated multior bilateral funding streams (e.g. REDD+ funding). If well-managed and administered, NFFs can be effective in meeting a number of challenges in the forest sector including: advancing long-term investment needs; supporting the decentralisation and devolution of forest management; leveraging additional sources of funding; encouraging private sector investments; promoting the production of forest ecosystem services; adapting forestry spending to the seasonality of operations (e.g. planting season); stimulating more effective forest management; and creating increased transparency and accountability. NFFs can vary significantly both in their stated purpose and the way in which they operate. Indeed, an NFF can function either as a transfer fund or catalytic fund, or perform both functions simultaneously. While a transfer fund can be defined as a distribution platform for funding streams from donors to beneficiaries (mainly from public sources), a catalyti c fund provides finance/support to overcome socio-economic obstacles/crises and to prepare future commercial development more and more independently from public sources.
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    Book (series)
    An Overview of National Forest Funds: Current Approaches and Future Opportunities 2001
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    This paper presents an overview of the various approaches that developed and developing countries have used in designing national forest funds. It is based on a study of legislation in over forty countries and a review of some of the few empirical studies of forest fund performance. The overview may serve as checklist of issues and options for policymakers who are designing funds. It also may illuminate ongoing discussions about appropriate international roles in forest financing. The paper p resents some of the common arguments for and against the use of dedicated funds. Understanding these may help improve fund design. Finally, this paper describes some likely future roles for funds to promote sustainable forest management.

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