Financing flows and needs to implement the non-legally binding instrument on all types of forests

Abstract

The study is intended to provide systematic and objective analysis of the funding sources and gaps vis-a-vis the Non-Legally Binding Instrument (NLBI). The study focuses on external sources because adequate information on domestic financing is not available. The purpose is to provide an overall picture of forest finance in the context of the NLBI, focusing primarily on external sources. In addition to clarifying the contribution of the existing sources, the study attempts to review existing, potential, and evolving sources/mechanisms of funding (in particular, new developments in the climate change regime relating to forest finance). The study is based on existing global-and regional-level sources and databases, as well as a survey among bilateral and multilateral sources of funding. Two concepts are used in discussing the results: forestry Official Development Assistance (ODA), referring to what has been classified by the Organisation for Economic Co-operation and Development/Development Assistance Committee (OECD/DAC) under support to the forestry sector, and forest ODA, which also includes support to forest conservation. Forest financing sources are classified into public and private, national and international. Domestic public funding may come from general government revenue and revenue from state-owned forests. Private sources consist of forest owners, communities and forest industry, philanthropic funds and donors, as well as Non-Governmental Organizations (NGOs) of various types.