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utilization patterns, governments have a range of policy tools that

can be employed to provide enabling conditions for private sector

(including individual and community) investments.

Knowledge

A first step in incorporating the full value of forests in decision-

making is a solid knowledge base on the services and goods forest

ecosystems provide. As an example of its support for generating

knowledge, the United Nations Environment Programme (UNEP)

is helping the Government of Kenya to conduct natural resource

accounting of its forest services and analysis of the cross-sectoral

linkages. This is supported by communication to key sectoral deci-

sion makers and pressure groups to generate awareness and political

support for a paradigm shift in the management and utilization of

forest ecosystems. Awareness and political support is crucial for

any reform, and finding the optimal contributions by forests to the

national economy and the well-being of people is no different.

Policy options and integration of forest into development agendas

Many of the drivers of deforestation and forest degradation lie

outside of the forest sector in factors such as agricultural and

urban expansion and energy consumption. In many developing

countries, for example, the expansion of agricultural land either

for subsistence farming or for industrial agriculture is the main

reason for the decrease in forest cover and is often fuelled by

subsidies or political interests. Target 3 under the Convention

on Biological Diversity Strategic Plan 2011-2020 addresses these

harmful subsidies and thereby also the need to main-

stream forest biodiversity and forest ecosystems into

the policies of other sectors and ministries to prevent

the development of perverse policies.

Financial tools

Governments can stimulate entrepreneurship and invest-

ments into forests by fiscal measures such as laws, norms,

subsidies and market-based instruments, such as taxes

and permits. Overseas development aid can also be an

effective way of supporting national efforts to reform and

transform the management of forest ecosystem services.

Sustainable public procurement provides govern-

ments with a means to provide a market signal of the

need for sustainably produced products and services.

Public expenditure of GDP varies widely but it is

substantial and ranges from 15-30 per cent in develop-

ing countries to 35-50 per cent in developed countries,

representing a noticeable market force.

The Marrakech Task Force on sustainable public

procurement, the Lacey Act and the EU Timber

Regulation are examples of efforts towards the

implementation of sustainable procurement. Other

examples of financial tools are private-public finan-

cial institutions such as pension funds, which have the

potential, with their equity, to influence investments

in forest-related sectors.

Politically motivated subsidies can be responsible for changes of use that lead to a reduction in forest cover

Image: © 2011 UNEP/GRID-Arendal