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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