News Issue 54 of European Tropical Forest Research Network (ETFRN) focuses on the tropical forest-finance chain and highlights the overall economic, social and environmental benefits that can be reaped from correctly targeted investment.
16 January 2013: The European Tropical Forest Research Network’s (ETFRN) has just released News Issue 54, which is titled “Good Business: Making Private Investments Work for Tropical Forests.”
The publication presents examples of various private actors operating along the tropical forest finance chain, such a forest entrepreneurs and advisory organizations, demonstrating that overall economic, social and environmental benefits can be reaped if investments are targeted correctly rather than following “business as usual.”
The issue provides an overview of large-scale forest investments, examines how small-scale forestry enterprises can help transform local livelihoods into viable ones and looks at the role of intermediaries in triggering private sector engagement in forestry activities. Readers are also given an assessment of the value of partnerships and coalitions between the private and public sectors in attracting private investment for responsible forestry and information on tools and approaches currently used in private forestry business and finance.
The synthesis section of the issue focuses on how to make private investment work in tropical forests and important considerations are identified for the private sector, namely managing risks, assessing returns and securing land tenure. It also calls for: bridging the gap between financial institutions and forest companies promoting small-scale forestry businesses; investing in commercial timber plantations; enhancing certification schemes; and building coalitions in the tropics. The synthesis appeals to the financial sector to, inter alia, build awareness of forestry opportunities, assess forest-related risks and have policies that deter investment in unsustainable practices and encourage investment in sustainable ones. It concludes by underscoring the vast potential that responsible forestry has to positively influence sustainable forest management.
The European Tropical Forest Research Network (ETFRN) aims to ensure that European research contributes to conservation and the sustainable use of forest and tree resources in tropical and subtropical countries. Since 1991, the Network has been producing periodic news bulletins covering a wide array of tropical forest issues such as forest management, forest governance, REDD+ and forest finance. [Publication: Good Business: Making Private Investments Work for Tropical Forests] [PROFOR]