A note from zemeunvalsts.lv. In assessing the global situation, a World Bank representative has indirectly and directly pointed out both the problems related to forests and the regions where these issues are pressing. It must be remembered that in most of Europe, including Latvia, many forest-related and forest-relevant issues are well-regulated from a legal perspective (often even “over-regulated”). It is important to remember and emphasise that a large portion of the forest-related problems mentioned by the author of the article are associated with regions close to the equator in various parts of the world, where large forest areas are being cleared for subsequent agricultural land use. It is sometimes important to remind ourselves of this fact, because both in Latvia and elsewhere in Europe, there is an occasional and obvious desire to “bring the problems of the Amazon or Congo basin to Latvia, unpack them and get worried”. The World Bank representative cites data, along with its accessibility and accuracy, as an important issue. This is something that is very important in Latvia as well!
Healthy forests are the foundation for the development of people, wildlife and ecosystems. Investment in forests benefits people, the economy and our planet. The forestry sector employs more than 33 million people, which is approximately 1% of the world's jobs. Forests not only provide jobs, but also timber, fibre, fodder and energy, thereby supporting the economy as a whole. They are also important for food security and rural communities, ensuring their social welfare.
Well-managed forests are an effective tool for helping to eradicate poverty on the planet, especially given that more than 90% of people living in extreme poverty depend on forests to ensure their livelihood. Forests also cover more than 80% of the territory inhabited by indigenous peoples of the respective regions (indigenous people); for many, forests are the basis for their livelihood, food production and procurement, and cultural identity.
Forests remain under threat
In parts of the world where forest management is still not properly legally and nationally regulated and where forest (and state) governance structures are weak, destructive deforestation is observed, often driven by the expansion of agricultural land. As a result of deforestation, the world has lost an area equivalent to Ethiopia since 2000.
This should be a warning sign. If we neglect our forests, we are giving up one of the most effective tools for combating climate change and the loss of nature, while simultaneously improving living conditions and developing the economy.
Degraded forest landscapes hinder action on climate change. Forests are the second-largest natural carbon sink on Earth, surpassed only by the ocean, helping to maintain the Earth's carbon balance and mitigate the impact of climate change. Approximately 12% of global greenhouse gas emissions are linked to deforestation and forest degradation.
The impact of deforestation on poverty is equally alarming, as it leads to the loss of livelihoods, food shortages, and often also military conflicts and population displacement. Deforestation and encroachment into natural areas also increase the frequency of contact between humans, livestock and wildlife, which, in turn, increases the risk of infectious diseases and pandemics, including SARS, Ebola and HIV.
Institutional and financial obstacles may arise along the way. There are four considerations that will help map the path to a nature-resilient future:
Better planning: A one-size-fits-all approach to development is not enough. Integrated land-use planning can help: this means systematically considering both nature and human needs in order to sustainably manage different types of land use. We use this approach when working on PROGREEN – a global partnership of the World Bank, Germany and Sweden that supports countries in developing such plans for forests, oases and savannas.
Better governance: This starts with establishing the regulatory framework for how countries can conserve and develop their forests and the ecosystem services they provide – ranging from clean air and drinking water to flood and erosion control.
Better business: If forests are managed sustainably, industries and the local economy flourish, including nature tourism. Global tourism volumes are increasing, with eight billion tourists visiting protected areas each year. Agroforestry is another industry that allows local communities to sustainably commercialise forest products, such as fodder for livestock, food products (fruits and nuts), as well as timber.
Engagement: Forest-dependent peoples, who are disproportionately underheard and underrepresented, often lack access to markets and public services. In the face of deepening climate and nature crises, deliberate efforts to expand the social safety net to include forest-dependent indigenous peoples can help them avoid poverty, especially in the short term.
There are two serious problems that could derail planned efforts and which must be overcome. Firstly, we need more accurate and freely available data to justify investments in forests as a means of achieving economic growth. Prioritising natural capital accounting – the systematic measurement, valuation and management of a country's natural resources and ecosystem services – can provide finance ministries with the necessary evidence and justification for specific action. For example, given the implementation of the European Union's Deforestation Regulation, companies and governments will need to be able to monitor, track and report data proving that exports of agricultural commodities and timber to the EU are deforestation-free.
Secondly, additional funding is needed to invest in forests. To achieve future goals in climate, biodiversity and land degradation prevention, public and private actors will need to at least quadruple annual investment over the next three decades. By 2050, the total volume of required investment could reach 8.4 trillion US dollars, which is roughly estimated at more than 536 billion US dollars per year. This funding can be partly sourced from existing domestic resources, including by repurposing “environmentally harmful” subsidies, which currently account for 8% of global GDP. This depends on creating a regulatory environment that supports strong small and medium-sized enterprises investing in the forestry sector.
The World Bank is committed to helping countries harness the planet's vast forest potential. We will continue to work to preserve a liveable planet for future generations.
About the author: Valerie Hickey, Global Director for Environment, Natural Resources and Blue Economy (ENB) at the World Bank
https://blogs.worldbank.org/voices/forests-healthy-people-economies-and-ecosystems