MINISTRY FOR FOREIGN AFFAIRS OF FINLAND
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1 Development Policy Guidelines for Forest Sector MINISTRY FOR FOREIGN AFFAIRS OF FINLAND
2 Table of contents Covering note 3 The forest sector in Finland s development policy and development cooperation 4 Framework for forest sector cooperation 4 Objective 5 Themes and instruments of forest sector development policy and cooperation 6 Target countries and organisations 6 Forest cooperation themes 7 Aid instruments 12 Appendix 1 13 Appendix 2 17 Abbreviations 19
3 Covering note Finnish development policy guidelines for forest sector supporting the operationalisation of Finland s Development Policy Programme (Government Resolution 2007) The forest sector policy guidelines comprises three sections: The policy framework that describes the principles and key themes of forest cooperation Appendix 1. The Finnish Initiative for Sustainable Forest Management and REDD, which is a five-year ( ) action plan prepared in cooperation with the regional departments (close cooperation with partner countries and organisations). Appendix 2. The Code of Conduct describing the operating principles, in other words the rules on cooperation. The policy guidelines describes the essential principles of our forest sector development policy and cooperation that supports the operationalisation of the Development Policy Programme. The policy guidelines has been prepared through a participative process, and the experiences from Finland s previous forest cooperation have been capitalised on in its formulation. The action plan (Appendix 1) is a flexible tool that can be modified as required, which helps in identifying the diverse nature of our forest sector cooperation and supports the linking of multilateral and bilateral cooperation. The action plan is reviewed annually. Appendix 2 describes the operating principles of forest sector development cooperation and cooperation with other aid donors. The Code of Conduct guides the implementation of the forest sector development policy and the action plan in the partner countries. DEVELOPMENT POLICY GUIDELINES FOR FOREST SECTOR 3
4 The forest sector in Finland s development policy and development cooperation This Finnish development policy guidelines for forest sector supports the operationalisation of Finland s Development Policy Programme (Government Resolution 2007). This millennium has marked a transition from development cooperation policy to a comprehensive development policy. At the same time, it has been acknowledged that changes are also required in other policy sectors that impact on the position of the developing countries. The most important objective of development policy is to eradicate poverty and to promote sustainable development in accordance with the Millennium Development Goals set out by the UN in The starting basis for Finland is that the principles of sustainable development are consistently followed in all operations that have an impact on development and the environment. The eradication of poverty can only be possible if development in developing countries is ecologically, economically and socially sustainable. Sustainable use of forests can reduce poverty, and it contributes to the implementation of several UN environmental treaties. Finland and developing countries share common objectives to promote the sustainable use and protection of forests. Forests can provide economic, social and environmental benefits. Besides wood, forests provide food, medicinal plants and bioenergy, and are a source of income and employment. Forests are the living environments of indigenous peoples, but they also have cultural, health and recreational impacts on the local residents and other user groups. Forests sustain the functions of ecosystems, act as carbon sinks and promote the protection of biodiversity. Forests also have an important role in soil and watershed protection. All these aspects may be of local, national and global significance. The role of Finland as an important actor both in the EU and in the wider world is based on the exceptionally important role that the forest sector has in our national economy. Finland s national well-being is based on the sustainable use of forests and other natural resources, a high level of science and technology, good governance and strong democracy. The EU and Finland have played a crucial role in the establishment of the United Nations Forum on Forests and the Collaborative Partnership on Forests (CPF) 1. Framework for forest sector cooperation Forests are an important part of the rural economy. This forest sector policy guidelines supplements the Ministry for Foreign Affairs rural development policy, which supports the rural economy through national programmes to strengthen the position of the poor and especially women in rural areas as well as research and guidance promoting rural development and food production. The forest sector policy guidelines supports the EU s objective of the sustainable and fair use of forest resources in order to reduce poverty. The EU s most important tools in development 1 A partnership (chaired by FAO) of fourteen international organisations 4 DEVELOPMENT POLICY GUIDELINES FOR FOREST SECTOR
5 cooperation include: i) Forests and Development Policy, ii) the Environment and Natural Resources Thematic Programme, iii) the EU Action Plan for Forest Law Enforcement Governance and Trade (FLEGT), and new measures to encourage forest management and avoid deforestation in frame of reference of climate change policy. International commitments play a role in Finland s development policy and cooperation. The United Nations Conference on Environment and Development that took place in Rio de Janeiro in 1992 launched the UN forest process, which has continued as the United Nations Forum on Forests (UNFF) since In 2007, a legally non-binding international cooperation instrument applying to all forests was drawn up to establish the conditions for continuing the work of the Forum on Forests in In 2006, the UNFF agreed on four shared Global Objectives on Forests, providing clear guidance on the future work of the international arrangement on forests. The Four Global Objectives on Forests set out by the UNFF act as the starting point for cooperation in the Finnish forest sector. The four Global Objectives seek to: Objective Finland will from now on aim to exploit its competence and focus its forest sector cooperation on producing Finnish added value in international development processes relating to forest and environmental policies and the forest sector. The objective is to strengthen the conditions for sustainable forest management and thus achieve fair economic growth, reduce poverty and prevent environmental hazards. Reverse the loss of forest cover worldwide through sustainable forest management (SFM), including protection, restoration, afforestation and reforestation, and increase efforts to prevent forest degradation; Enhance forest-based economic, social and environmental benefits, including by improving the livelihoods of forestdependent people; Increase significantly the area of sustainably managed forests, including protected forests, and increase the proportion of forest products derived from sustainably managed forests; and Reverse the decline in official development assistance for sustainable forest management and mobilize significantly-increased new and additional financial resources from all sources for the implementation of SFM. DEVELOPMENT POLICY GUIDELINES FOR FOREST SECTOR 5
6 Themes and instruments of forest sector development policy and cooperation Target countries and organisations Over the last few years, the forest sector has carried out cooperation in six long-term partner countries (Kenya, Tanzania, Zambia, Mozambique, Vietnam and Nicaragua). Finland also engages in bilateral cooperation with Laos, Peru and the West Balkans region. The action plan (Appendix 1) shows recent plans for cooperation in Nepal, Indonesia, Central America, Andean region and in West Africa. Multilateral cooperation has been carried out with the GEF, the FAO (NFP Facility and forest resource assessments) and the World Bank (PROFOR). Finland has supported forest-related environmental treaties, agreements and conventions of the UN. In addition to Finnish actors, forest research has been supported by the Center for International Forestry Research, CIFOR and the International Union of Forest Research Organizations, IUFRO. Of international NGOs, the most important operators in the forest sector have included the International Union for Conservation of Nature (IUCN) and WWF. The forest sector development cooperation is targeted regionally according to the needs and demand at the country or regional level. More attention will be paid to the implementation of international forest related policy processes at the country level. In this work, regional thematic cooperation will play an even more significant role. Thematic cooperation will be focused in line with Finland s Development Policy Programme above all to promote sustainable development. This cooperation aims to achieve efficiency and effectiveness by focusing on fields in which Finland has special expertise, such as the pro- 6 DEVELOPMENT POLICY GUIDELINES FOR FOREST SECTOR
7 motion of sustainable forest management and responsible forest industry. This will strengthen the complementarity of multilateral and bilateral cooperation, as well as bring Finnish added value to multilateral cooperation. Forest cooperation themes Sustainable forest management demands a broad understanding of the social, economic, environmental and cultural importance of forests and of the roles played by the state, communities and the private sector. Challenging issues in most developing countries include rights on land ownership and use, the good governance of the forest sector and natural resources, and the relationships between production sectors that compete for land and scarce resources. More understanding is needed of the environmental services offered by forests and their links to other production sectors. In developing countries, women and girls obtain firewood for households. Collecting wood needed for cooking and heating takes up a large part of the day for women. In addition, women contribute to the family s housekeeping by going into forests to gather animal fodder, medicinal plants and foodstuffs, which often provide a significant additional source of nutrition to poor families and supply income during dry seasons, for example. Despite their key role, women do not have equal rights to own and use forests, trees and forest products. The right of women to own land and participate in decision-making concerning the use of forests is essential. The types of forest use and forest products that are important for women must be taken into account in forest policy and in planning the use of forests. Finland supports its partners countries and international forest policy processes through the following means: 1. Support for national forest programmes: National forest programmes are part of national poverty reduction programmes. DEVELOPMENT POLICY GUIDELINES FOR FOREST SECTOR 7
8 The participatory preparation and coordinated implementation of national forest programmes improve the capacity of forestdependent communities and the private sector and promote the fair distribution of benefits obtained from forests (gender and generational equality, minorities). The government provides the framework for the private sector s production activities, while ensuring that the principles of sustainable forestry are implemented. National forest programmes and the policies and legislation supporting them are futile unless they are implemented in practice. Good governance is a key feature in implementation work. Well-functioning monitoring and control systems as well as up-to-date legislation and policies are essential tools for good governance. Deforestation cannot be prevented and the Millennium Development Goals cannot be attained unless the objectives and methods are integrated with good governance objectives across thematic and sector boundaries. Developing countries compete for international investments. From the investor s viewpoint, it is important that there are clear and jointly approved rules on good governance promoting sustainable forestry. The significance of social responsibility is highlighted to a greater extent as forest industry companies and the forest product business become more international. 2. Strengthening the importance of the forest sector in combating climate change and adapting to it: It has been estimated that almost 20% of global carbon dioxide emissions are caused by deforestation. Stopping deforestation and the sustainable use of forest resources will mitigate climate change, which is something developing countries have brought up in international climate policy negotiations. Finland supports strengthening the role of developing countries in adapting to and mitigating climate change. It is important to develop financial incentives that support this adaptation process and slow down deforestation and the degradation of forests (REDD and avoided deforestation). Forests and trees provide other rural livelihoods with essential environmental services 8 DEVELOPMENT POLICY GUIDELINES FOR FOREST SECTOR
9 (binding water, soil and nutrients), act as carbon sinks and produce renewable energy and building material. The importance of forests and trees in adapting to extreme phenomena (storms, floods, droughts) caused by climate change may be considerable. Finland supports the inclusion of the forest sector in national energy strategies and climate change adaptation programmes. Particular attention should be paid to programmes with direct impact to land use planning, such as plantation programmes (agriculture, reforestation/afforestation), the production of biofuels, REDD programmes, and the prevention of forest fires. National forest programmes, and climate change adaptation strategies are based on reliable, up-to-date national information on forest and wood resources and their development (changes in the amount of carbon stored in forests and soil). The importance of mapping national forest and natural resources is emphasised when countries have to report their actions to control deforestation. 3. To integrate forest sector development into rural development, national land allocation processes and agriculture policy: In many developing countries, unfair land ownership conditions and land use rights result in the uncontrolled use of land. Ineffective agriculture and livestock farming require additional land, which causes deforestation. Unclear land ownership conditions prevent long-term forest sector investments to develop forests. The entire production chain and forest resources management must be examined with a view to public and private investments. Forestry should be an economic activity with its profitability dependent on natural conditions, and the processing and marketing of products. Forests and forest resources should DEVELOPMENT POLICY GUIDELINES FOR FOREST SECTOR 9
10 have an owner or a manager who benefits from the use of the forests. Forest sector support should be linked to sustainable rural, land use, energy and business policy so that it is possible to address the reasons behind deforestation, improve the profitability of investments and promote sustainable forest management. The forest sector should also be taken into account in processes focusing on general rural development so that the role of forests as a business and economic function is recognised both at the political and household level. At the same time, the aim is to ensure that rural development and land use policies support the sustainable use of forests. 4. Supporting international forest policy processes: Finland considers the implementation of the global objectives to be important. This will be promoted by continuing to support the United Nations Forum on Forests, and the CPF Partnership. Besides the UN Forum on Forests, Finland will continue its active contribution to the development and implementation of environmental treaties, agreements and conventions under the UN. Finland particularly aims to strengthen the synergy of the Rio environmental conventions with regard to forests. The prevention of illegal logging and trading in timber is one of the European Commission s most important follow-up measures to the Johannesburg Summit (WSSD). Finland supports the EU FLEGT Action Plan, which sets out a range of policies and measures to improve forest governance and reduce illegal logging. 5. Finland will establish strategic partnerships with institutions funding and implementing research and development. The partnerships aim to increase cooperation and improve communication between financial and research institutions and forest administration organisations. Finn- 10 DEVELOPMENT POLICY GUIDELINES FOR FOREST SECTOR
11 ish research, education and expert organisations, the private sector and NGOs play a key role. Finland has know-how and technology that meet the needs of developing countries. Of the international actors, Finland s strategic partners include the Food and Agriculture Organization of the United Nations (FAO; forest resource assessments and national forest programmes), the World Bank (WB; good governance, financing mechanism for sustainable forest management, carbon financing), CIFOR and IUFRO (applied research on forestry, wood technology and forest policy), the Global Environment Facility (GEF; financing mechanisms), the World Agroforestry Centre (ICRAF) and CATIE (strong regional operators in agroforestry and watershed planning and management), the International Tropical Timber Organization (ITTO; trade and development, reducing the illegal timber trade) and the European Forest Institute (EFI). Through the partnerships, Finland supports international education and research in the forest sector together with the sector s networks, organisations and universities. The development of education will focus on global issues which require genuine and global cooperation. Examples of such issues include climate change and its impacts, protecting biodiversity, desertification, the forest product trade, HIV and AIDS as well as new energy solutions. The importance of forest policy, management systems and the management institution is particularly emphasised. The national forest programmes of different countries and their objectives should also be considered in developing education. DEVELOPMENT POLICY GUIDELINES FOR FOREST SECTOR 11
12 Aid instruments The aim is to select inter-sectoral forms of cooperation and aid instruments so that multilateral and bilateral forest cooperation incorporates traditional administrative sectors (rural development, agriculture, education, energy, the environment, water, trade, natural disasters) and development cooperation instruments (budget and sector support, technical assistance, institutional cooperation, NGO cooperation, cooperation programmes on research and education, as well as support for developing sustainable financing mechanisms) according to national, regional and international needs. Open coordination and communication mechanisms supported by the technological applications and national policies are an important part of forest sector cooperation. The availability of information on the use and management of natural resources is very important for democratic decision-making. Forest sector cooperation supports the implementation of the Development Policy Programme of the Finnish Government. Development cooperation carried out within the EU also constitutes an important framework and channel for cooperation by the Finnish forest sector. Appendix 1 contains an action plan which describes the implementation of this policy guidelines. The Code of Conduct (Appendix 2) sets out guidelines on the selection of the instruments and operating methods used in cooperation. 12 DEVELOPMENT POLICY GUIDELINES FOR FOREST SECTOR
13 Appendix 1 Finnish Initiative to Support Sustainable forest management and REDD in developing countries It is our strong belief that poverty especially in rural areas can be reduced only by sustainably managing natural resources both for the income they generate and for the environmental services they provide. Together, we must find more sustainable ways of fostering development, but based on low carbon dioxide emissions and ecological and environmental sustainability. Finland s development policy is built on the three dimensions of sustainability and on the consensus that emerged at the United Nations Conference on Environment and Development in Rio in 1992, according to which all development must be ecologically sustainable. Our present needs must be met in such a way that the potential of future generations to meet their needs is not compromised. The world s forests are one of its most important natural resources. Finnish forest sector cooperation comprises three main topics: 1. Support for national forest programmes (nfp); 2. Strengthening the importance of the forest sector in combating climate change and adapting to it (REDD); 3. To integrate forest sector development into rural development, national land allocation processes and agriculture policy To meet these thematic priorities, forest sector cooperation must focus on people and institutions as well as trees. It must participate in bringing local, national, and international stakeholders together to make decisions on how forests should be managed and protected. In practice, Finland s forest sector cooperation integrates national-level development in our partner countries with multilateral agreements and institutions. Addressing the issues of reducing emissions from deforestation and forest degradation can be done most effectively and cost-efficiently by designing a national policy framework in a way that incorporates the mitigation and adaptation of climate change objectives within the forest policy paradigm and framework. This must simultaneously involve incorporating biodiversity objectives in a consistent way in the same policy framework. The same goes for addressing sustainable land management and the prevention of land degradation and desertification. These are the most relevant mutually supportive policy objectives that sustainable forest management can deliver. The implementation of these objectives is possible if there is a participatory programmatic framework in place that fully recognises national and local stakeholders rights and potential to function as resource managers who can achieve the objectives. NFP/REDD implementation should be based on the unique role that local forest-dependent people and communities have as stakeholders and managers. Therefore, SFM/ REDD financing instruments can only deliver on the ground if they are designed so that a just proportion of the benefits from achieving SFM/REDD objectives goes to local forest-dependent people. Under this initiative, the Government of Finland will implement the jointly agreed Global Objectives on Forests of the UNFF. Objective 1 Objective 2 Objective 3 Objective 4 Reverse the loss of forest cover worldwide through sustainable forest management, including protection, restoration, afforestation and reforestation, and increase efforts to prevent forest degradation; Enhance forest-based economic, social and environmental benefits, including by improving the livelihoods of forestdependent people; Increase significantly the area of protected forests worldwide and other areas of sustainably managed forests, as well as the proportion of forest products from sustainably managed forests; Reverse the decline in offi cial development assistance for sustainable forest management and mobilize significantly increased, new and additional financial resources from all sources for the implementation of sustainable forest management. This initiative has evolved through cooperation with our partner countries and institutions. There will be a continuous process of dialogue on the activities and priorities as well as on further developing the country-specific measures of this action plan. DEVELOPMENT POLICY GUIDELINES FOR FOREST SECTOR 13
14 Regions and themes in forest cooperation Inter-institutional development cooperation Mozambique, Tanzania, Kenya, Nepal, Vietnam, Sudan, Ethiopia, Cantral- and South-America Regional Central America The Mesoamerican Agroenvironmental Programme (MAP/CATIE) Policies for agroforestry and silvopastoral systems; smallholder timber production and forest plantation; integrated forest landscape management; Regional FLEG and REDD support is under planning Bilateral partner countries Regional cooperation countries Inter-institutional cooperation countries Andean regional cooperation (Planning on-going) Implementing new incentives for Sustainable Forest Management and forest conservation: PES, REDD, CDM. Support will cover Columbia, Ecuador, Peru and Bolivia. Regional West Balkans Forest Policy, Economics Education and Research (FOPER/EFI) Regional Africa IUCN/ Climate change and development Recognising the role of forest and water in climate change adaptation (Mozambique, Tanzania and Zambia) Regional planning is on-going, with possible themes: CC/PES/SFM; cross-boundary forest fires (link to REDD); East African FLEG(t) support; user rights and tenure in West Africa Zambia Joint forest management/community-based management; support to sector reform processes (Zambia Forest Commission); bioenergy and charcoal production, PPP; Forest resource assessments (FAO cooperation, REDD monitoring) Mozambique Support to the National Forest Programme in Mozambique: policy and regulatory work; FLEG; research and training; support to communitybased businesses 14 DEVELOPMENT POLICY GUIDELINES FOR FOREST SECTOR
15 Laos (SUFORD project) Improving the policy, legal and incentive framework enabling the expansion of Participatory Sustainable Forest Management; benefit sharing mechanisms and participation; support to REDD piloting Nepal Forest Resource Assessment; support to Leasehold Forest and Livestock Development project (IFAD/FAO) Vietnam Support for the implementation of Forest Development Strategy (key projects are WB s FSDP and ADB s FLITCH); support to Forest sector information system (including REDD monitoring); national REDD and FLEGT strategies Kenya Support to policy implementation and the Kenya Forest Service institutional change processes; management of gazetted forest reserves; farm and community forestry in dry areas; bioenergy production Indonesia (Planning on-going) Key themes are peatland-specific management and monitoring issues (REDD), support for forest restoration and reforestation. Tanzania National forest and ecosystem assessment (FAO cooperation, REDD monitoring); participatory forest management; support to policy and regulatory work; research and education; publicprivate partnerships activities (PPP) Mekong regional (Planning on-going) Key themes are FLEG and REDD activities (potential partners RECOFTC, WB, EFI) Bilateral development cooperation in the forest sector. The key projects and programmes underway in bilateral cooperation are described on the map. DEVELOPMENT POLICY GUIDELINES FOR FOREST SECTOR 15
16 Action plan ( million ) Multilateral 24% Africa 37% Asia 26% Latin America 12% West Balkans 2% Multilateral cooperation World Bank FAO EU Research International conventions NGOs Forest Carbon Partnership Facility: Support to readiness fund to assist developing countries to reach a capacity level at which they will be ready to participate in a future system for positive incentives to REDD. PROFOR and FLEG programs: Gore and project support to sound policies and measures that take a holistic approach to forest conservation and management, and good governance. Forest Invetment Program (FIP): to pilot and demonstrate new approaches to forest management that lead to major impacts in reducing greenhouse gas emissions from forests Global Forest Resources Assessment (FRA) Technical expertise for NFA (National Forest Assessments) and FRA processes. Sustainable Forest Management in a Changing Climate: Support to FAO's methodology development and capacity building in developing countries. Aim to enhance forests and trees role in mitigation of, and adaptation to, Climate Change. NFP Facility: Gore support to facilitation of nfp processes in developing countries. EU FLEGT Facility: Support to policies and measures to improve forest governance and reduce illegal logging. REDD support (discussion on-going). Gore Support to CGIAR institutes (CIFOR, IGRAF) Thematic support: i) Forests and Climate Change (CIFOR), ii) World Forest Society and Environment (IUFRO), iii) CPF's special themes Support to International Conventions (forest related): UNCCD, UNFCCC, GEF, UNFF, ITTA WWF, IUCN, MTK, Siemenpuu foundation 16 DEVELOPMENT POLICY GUIDELINES FOR FOREST SECTOR
17 Appendix 2 Code of Conduct for Finnish Forest Sector Development Cooperation (based on the Draft Code of Conduct for Forest Sector Development Cooperation of the European Commission and the EU Member States) The Code aims to help donors engage more effectively with the institutional and policy contexts affecting forests, and to shift the governance agenda from conditionality to positive incentives for change. The donor commits to the following principles in their forest sector development cooperation with partner countries, on the understanding that the principles will be flexibly applied, taking into account the realities of each country situation. The Code of Conduct should be understood as an aspirational rather than strictly normative document. Ideally it should serve as a basis for dialogue on improving the effectiveness of forest sector development cooperation with partner countries, as well as within the donor development cooperation institutions. 1. The importance of ownership by partner countries of joint development efforts in the forest sector is emphasised. Where credible national forest programmes 1 exist, forest sector programmes and projects financed by the donor will be embedded in and be fully compatible with them. The term national forest programmes is understood as a generic term for a process towards a comprehensive forest policy framework and programme for the achievement of sustainable forest management, integrated into wider programmes for sustainable land use. The IPF/IFF conclusions and recommendations on national forest programmes, as well as the further deliberations of the UNFF, will be used to assess whether or not a specific country has a credible forest programme. 2. Sound national policies and the institutional and management capacity for their implementation are preconditions for aid effectiveness. The donor will support countries to build the capacity to put these enabling conditions in place. In cases where the partner government is not committed to developing national policies and institutional structures in line with the internationally agreed principles, support for forest sector development will be focused towards promoting information generation, consultation, and advocacy for policy reform within civil society, including generating pilot-scale field-level experiences. 3. Sector wide approaches are used to improve the effectiveness and effi ciency of aid. The donor will support and promote the efforts of partner countries to establish this type of approach to channel support to national forest programme and policy implementation. Sector wide approaches are viewed as processes which ultimately aim at achieving the following characteristics: (i) significant funding supports a single national sector policy and expenditure programme, (ii) the partner government leads and owns the process and implementation, (iii) common procedures are adopted across the sector by government and donors, and (iv) government procedures are used to disburse and account for all funds. It is, however, recognised that a fully-fledged sector approach requires a high level of macroeconomic and budget management, accountability and transparency from the government. Until such capacity exists, sector support may need to be channelled through (i) earmarked funding within a sector programme, or (ii) project-type support within the national forest programme. Furthermore, even within a fully developed sectoral programme there may remain certain types of activity that may not be appropriate for financing through government budgets. 4. It is recognised that civil society and the private sector have an important and increasing role in the implementation of forest-related development activities, both as regards productive forestry and forest conservation. Traditional sector support programmes, e.g. those used in health and education, are designed mainly for improving the service delivery capacity of government institutions at various levels. In the case of the forest sector, many of the key actors in the delivery of sustainable forest management are nongovernmental. Therefore, an important element of sector wide approaches for the forest sector will be the establishment of national financing mechanisms and instruments 2 aimed at fostering civil society and private sector participation in forest development and conservation. 5. Effective coordination of and information sharing between all development interventions are vital to ensure the maximum sectoral impact of aid. The donor will actively promote and support the concept of national coordination of all interventions in the context of national forest programmes, and the strengthening of national networks for information sharing. DEVELOPMENT POLICY GUIDELINES FOR FOREST SECTOR 17
18 The primary aim of both coordination and information sharing will be to increase the effectiveness of development interventions and improve intersectoral collaboration. In general, the partner country should take the lead for such coordination and information sharing - only in cases where it is specifically requested by the partner government is the concept of donor-led coordination and information dissemination (e.g. chef de file) supported. Coordination can also be extended to such areas as joint evaluations of projects and programmes as well as common monitoring and reporting formats. Beyond coordination of development assistance, both donors and partner countries should seek to ensure coordination and policy coherence within and outside the forest sector. 6. Certain practical measures will be taken to increase the efficiency, effectiveness and sustainability of forest sector support regardless of which modality of support (project or programme) is used for delivering aid. The donor will actively ensure that: (i) development interventions are based on the initiative of the partner government and/or civil society stakeholders, so that the partner institutions (including both governmental and non-governmental partners) have the lead role in the planning of all development interventions, (ii) uniform standards and norms are agreed for remuneration and allowances of local personnel and the buying out of government employees for projects is avoided. In addition, particularly where sector wide approaches are applicable, that (iii) government planning and budgeting cycles are used as the basis for aid programming, (iv) joint monitoring, reporting and auditing systems for all donor supported interventions are developed and used and (v) joint evaluations of projects and programmes are carried out with a focus on their sectoral impacts. 7. To ensure that technical assistance contracted to support forest sector projects and programmes produces the greatest value for the partner countries, the donor will ensure that: (i) the contracting of technical assistance personnel is driven by the needs and priorities of the partner institutions and takes into account their absorption capacity, (ii) the primary function of technical assistance personnel is to build the capacity of the staff of the partner institutions in their respective fields, and to fill essential gaps, (iii) the partner institutions are fully involved in the drafting of ToRs and in the selection of technical assistance personnel, (iv) technical assistance personnel are accountable to partner country institutions and their ToRs should not restrict them to a single donor project or intervention but enable them to contribute to the broader needs of the partner country, (v) the increasing use of qualified local and regional technical assistance personnel is encouraged, and (vi) expatriate technical assistance personnel from the donor countries are used in a way that is complementary to existing local and regional expertise, and contributes to the further development of such expertise. 8. For transparency and effective implementation the above principles need to be communicated to and discussed with partner governments. On the basis of this Code of Conduct, the donor may agree country-specifi c partnership arrangements for forest sector development cooperation. An incremental approach is suggested, building on existing achievements, taking realistic stock of weaknesses and the need for change among all partners, identifying viable objectives and milestones for their achievement, and maintaining a climate of transparency, openness and accountability in these negotiations. 1 The IPF (Intergovernmental Panel on Forests) and the IFF (Intergovernmental Forum on Forests) have agreed on the concept of national forest programmes (nfps) as a viable framework for addressing forest sector issues in a holistic, comprehensive and multisectoral manner in the context of wider strategies and programmes for sustainable development. Nfps are understood as a generic expression for a wide range of policy and planning approaches leading towards sustainable forest management and conservation, applicable at national and sub-national levels. The IPF/IFF defined inter alia the following principles for nfps: (i) national sovereignty and country leadership, (ii) consistency with the constitutional and legal frameworks of each country as well as with international commitments, (iii) partnership and participation of all interested parties in the process (with special regard for indigenous people and local communities), (v) promoting secure land tenure arrangements, and (v) being based on ecosystems approaches that integrate the conservation of biodiversity with its sustainable use. Nfps are seen as a continuous cycle of planning, implementation and monitoring. The UNFF (United Nations Forum on Forests) has a mandate to monitor the development and implementation of nfps. 2 The concept of national financing mechanisms and instruments is understood to include both mechanisms and instruments set up by the public sector in a given country to promote and facilitate the participation of the private sector in sustainable forest management and conservation (e.g. government incentives for reforestation or forest management etc.), as well as mechanisms and instruments which are set up by the private sector and/or civil society directly (e.g. conservation funds, foundations to promote NGO activities etc.) or even combinations of these approaches. They also include a variety of mechanisms and instruments aimed at internalising the environmental values of forests (e.g. carbon sequestration, protection of watersheds etc.). Although the term national fi nancing mechanisms and instruments is used, it is understood that they may include mechanisms and instruments set up at the national, state, region or local level. The term national is used to clarify that they are not donor-specific but country-owned. 18 DEVELOPMENT POLICY GUIDELINES FOR FOREST SECTOR
19 Abbreviations ADB CATIE CC CDM CGIAR Asian Development Bank Centro Agronómico Tropical de Investigación y Enseñanza Climate Change Clean Development Mechanism Consultative Group on International Agricultural Research IUFRO MAP MTK NFA International Union of Forestry Research Organizations Mesoamerican Agroenvironmental Programme The Finnish Farmers' and Forest Owners' Union National Forest Assessment CIFOR Center for International Forestry Research NFP National Forest Program CPF EFI EU FAO FCPF FIP FLEG(t) FLITCH FOPER FRA FSDP GEF ICRAF IFAD ITTA ITTO IUCN Collaborative Partnership on Forests European Forest Institute European Union Food and Agriculture Organization of the United Nations Forest Carbon Partnership Facility Forest Investment Program Forest Law Enforcement Governance (and Trade) Forests for Livelihood Improvement in the Central Highlands Forest Policy and Economics Education and Research Forest Resources Assessment Forest Sector Development Project Global Environment Facility World Agroforestry Centre International Fund for Agricultural Development International Tropical Timber Agreement International Tropical Timber Organization International Union for Conservation of Nature NGO PES PPP PROFOR RECOFTC REDD SFM SUFORD UN UNCCD UNFCCC UNFF WB WFSE WSSD WWF Non-governmental Organization Payment for Environmental Services Public-Private Partnership Program on Forests Regional Community Forestry Training Center for Asia and the Pacific Reducing Emissions from Deforestation and Forest Degradation Sustainable Forest Management Sustainable Forestry for Rural Development United Nations United Nations Convention to Combat Desertification United Nations Framework Convention on Climate Change United Nations Forum on Forests World Bank World Forests, Society and Environment World Summit on Sustainable Development World Wide Fund For Nature Photos: Matti Nummelin, Marja-Leena Kultanen, Satu Santala and Vesa Kaarakka. Layout: Innocorp Oy Printing by: Erweko Painotuote Oy, 2009
20 Development Communication PO BOX 456 FI GOVERNMENT, FINLAND Telephone: Telefax: Exchange: Internet: formin.finland.fi keoinfo@formin.fi ULKOASIAINMINISTERIÖ
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