Safeguarding Forests & Forest Peoples World Bank Annual Meetings October 11, 2013 Korinna Horta, Ph.D.

WBG: Key Influence in Forest Sector The World Bank Group is the largest source of multilateral funding for forests. Between 2005 and 2009, the Bank accounted for 72% percent of multilateral funding, and 31% percent all multilateral and bilateral financing for forests (Source: WBG, Forests and Trees in Sustainable Landscapes, Action Plan 14-16, Concept Note, May 20, 2013).

WBG Lending to Forest Sector not trivial. FY IFC alone committed US$ 1 billion to forestry projects catalyzing investments of US$ 4 billion (more than half of it for pulp & paper)

Development Policy Lending 40% of the Bank’s forest sector lending is supported by DPLs (Source: WBG, Forests and Trees in Sustainable Landscapes, Action Plan 14-16, Concept Note, May 20, 2013). As currently framed, Safeguards will only apply to project finance.

WBG Support for Industrial-Scale Logging/ Tropical Timber Concessions 1991 Forest Policy Paper Included a ban on WB support for commercial logging in primary moist tropical forests. Focus: Poverty reduction & environmental protection

WBG Support for Industrial Logging 2002 World Bank Forest Strategy Lifted the ban on WB support for commercial logging in primary moist tropical forests Logging would be subject to certification Certification regime to be picked by each project, where none existed, commitment for one to be in place in the future was sufficient

Mid-term evaluation of 2002 Forest Strategy – published in 2007  Called for independent, transparent and participatory review of existing certification schemes;  Emphasized poor implementation of safeguard policies on environmental assessment, natural habitats & indigenous peoples.

IEG Evaluation of 2002 Forest Strategy (January 2013) Bank support for Industrial timber concession reform in tropical moist forest: No Evidence it has led to sustainable & inclusive development (countries w/weak governance); No evidence that concessions of natural forests are managed in a sustainable way; Certification continues to be a challenge No attention to rural poverty. Recommendation: Carry out comprehensive study of environmental, social and economic impacts.

Forests and Trees in Sustainable Landscapes Action Plan, FY 14 to FY16 (Concept Note) The proposed Action Plan will build on the 2002 Strategy, but will take account of the evolving global context. The Action Plan will describe how Bank support will contribute to meeting the 2015 Millennium Development Goals on environmental sustainability, and will lay out how the actions of the WBG will contribute to building resilient and sustainable landscapes. The Action Plan will build on the priorities for supporting inclusive and green growth which are outlined in the World Bank’s Environment Strategy , Toward a Green, Clean, and Resilient World for All as well as the WBG Agricultural Action Plan (FY13-15)…

Action Plan The core issues are largely missing Land rights of indigenous peoples and local communities; Forest Governance; Causes of deforestation outside of the forest sector: - inter-sectoral impacts - drivers of deforestation

Adopt recommendations of World Bank studies Justice for Forests Study (2012) (M. Pereira Gonçalves,M.Panjer, T.S. Greenberg, W. Magrath): Combat illegal logging by attacking corruption Protected Area Effectiveness in Reducing Tropical Deforestation (2009) (Andrew Nelson, Kenneth Chomitz): Protected areas that permit sustainable use are effective in preventing deforestation, indigenous areas are even more effective (Latin America)