Forests for People

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and insect and invasive species outbreaks. Countries with an inter-

connected and healthy natural capital base and a growing knowledge

of the traits of forest-based biodiversity and genetics stand to adapt

comparatively well to a world marked by climate change, increased

competition for resources and a changing global economy.

Forest products and services are often culturally accepted as

humans have been using them for millennia (for example biomass as

fuel and plants as medicine), providing a good foundation for forest-

based solutions. Further examples of socio-economic contributions

are the water regulating service forest ecosystems provide, including

its importance for relatively low-carbon-intensity river transportation

or for the prevention of coral reefs and hydrodam sedimentation.

Utilization of forest services and goods is often also labour-inten-

sive and targeted investments in forest-based natural capital are

believed to be able to generate millions of good quality jobs. Most

of the increase in employment would occur via small and medium-

sized enterprises, a segment that is considered effective in increasing

employment and reducing poverty.

UNEP’s Green Economy Report outlines that an annual additional

investment of US$40 billion is required to halve global deforestation

by 2030 and increase reforestation and afforestation by 140 per cent

by 2050, compared to business as usual. Due to the ongoing auster-

ity efforts in most developing countries, the additional investment at

this scale is highly unlikely to come from governments alone – to put

the figures into context, cumulatively available public funds from

donor countries for REDD+ stand to date at approximately US$7

billion (the annualized figures are much lower). Hence

investment from, and engagement of, the private sector,

including financial institutions and financial intermedi-

aries, is essential, particularly for implementation.

Public investments are, however, critical to foster

enabling conditions, transparency, longevity and

certainty and to lay the foundations that will stimulate

entrepreneurship and ‘de-risk’ investments.

Enabling conditions

Unfortunately past and current investments in connection

to forest ecosystems and their utilization have been more

extractive and short-term and have outweighed invest-

ments into the multifunctionality of forest ecosystems

and their underpinning role in our well-being. Forest

ecosystems have often been seen as a source of land and

a quick source of energy and raw material for both poor

rural communities and more influential and economically

independent individuals and organizations. This imbal-

ance has been at the expense of long-term environmental

and socio-economic benefits and, while it has provided

a short-term return, that may have contributed to the

national development, it has undermined the delivery of

the full set of services and goods for human well-being.

To support the correction of this imbalance and foster

a transformation of current forest management and

Exploitation of forests for short-term returns often jeopardizes their long-term viability