33094 WORLDBANKWWFALLIANCE PROGRESS THROUGHPARTNERSHIP ANNUALREPORTFY01­02 THE WORLD BANK / WWF ALLIANCE FOR FOREST CONSERVATION AND SUSTAINABLE USE PROGRESS THROUGH PARTNERSHIP CATALYZING CHANGE IN FOREST POLICY AND PRACTICE THE WORLD BANK 3 MISSION STATEMENT The World Bank/WWF Alliance for Forest Conservation and The Alliance works to achieve these targets across a broad Sustainable Use is a response to a crisis: the continued deple- range of forest types and geographic regions. tion of the world's forest biodiversity and of forest-based By combining the World Bank's access to policy dialogue, con- goods and services essential to sustainable development. vening power, analytical capacity, and financing operations The goal of the Alliance is a significantly reduced rate of loss with WWF's field presence, private sector partnerships, and and degradation of all forest types. forest conservation expertise, the Alliance can address In pursuit of this goal the Alliance works with governments, the forest management issues on a broad front. Working with private sector, and civil society to achieve three targets by 2005: a diverse group of partners--from government, private sector, and civil society--the Alliance creates a ripple effect that 4 50 million hectares (125 million acres) of new forest broadens and deepens its impact. protected areas; 4 50 million hectares (125 million acres) of existing but highly threatened forest protected areas secured under effective management; and 4 200 million hectares (495 million acres) of production forests under independently certified sustainable management. 4 05 MESSAGE FROM JAMES D. WOLFENSOHN & DR. CLAUDE MARTIN 06 INTRODUCTION 10 THE ALLIANCE IN ACTION 19 PROGRESS THROUGH PARTNERSHIP 20 ACTIVITIES SUPPORTED IN 2001 AND 2002 23 FINANCIAL REPORT 25 ABBREVIATIONS & ACRONYMS 27 MANAGEMENT TEAM 28 REGIONAL PROGRAM MAP 5 MESSAGE FROM JAMES D. WOLFENSOHN & DR. CLAUDE MARTIN This year marks the midpoint in the Alliance's term. Taking stock of environment first needs to be created in many countries. The Alliance how far we have come, it is clear that the Alliance has achieved consid- approach has therefore evolved to help build the human capacity, insti- erable progress over the past four years. However, much still remains to tutional policies, and fiscal regimes that form the foundations for sound be accomplished. Forests around the world continue to face a variety of stewardship of forest resources. threats. Their depletion at current rates poses grave consequences for Another key concern of the Alliance has been to help combat the wide- the biodiversity and ecological values they hold, as well as for the liveli- spread problem of illegal logging. Workshops supported by the Alliance hoods of millions of forest-dependent people. highlighted the seriousness of the problem and explored possible Highlights of the Alliance's impact over the past 18 months include regional and national solutions to strengthen law enforcement in the announcement at the World Summit on Sustainable Development Southeast Asia. This approach helped to stimulate efforts that led to (WSSD) in September 2002 by the government of Brazil, the Global a key regional ministerial meeting in September 2001 on forest law Environment Facility, the World Bank, and WWF of the most com- enforcement and governance. The meeting issued a strong political dec- prehensive tropical forest conservation initiative in history. The Amazon laration and adopted a regional plan of action in unprecedented public Region Protected Areas (ARPA) program commits 50 million hectares, acknowledgment of the seriousness of these issues. Together, the decla- or 12 percent of the Brazilian Amazon, to various types of protected ration and the plan promise continued high-level political attention to areas. Encompassing an area comparable to that of Spain, these addi- the problem. A similar process is now also under way in the Africa and tions to Brazil's system of protected areas will exceed the land estate of Madagascar region. the United States National Park Service and will help protect represen- These groundbreaking efforts are prime examples of the ability of the tative samples of all 23 Amazonian ecoregions with their respective Alliance to move major opportunities forward. They demonstrate our flora, fauna, and ecological processes. The joint declaration expresses belief that a relatively small force, effectively and creatively applied, the strong support of the partners to ARPA's goals and secures a finan- can leverage weighty outcomes for conservation and sustainable forest cial commitment of U.S.$81.5 million for the first phase of this decade- management. Essentially country-owned, the efforts are buttressed by long, U.S.$400 million program. The Alliance's catalytic role--providing support from powerful partners, with a broad range of stakeholders technical know-how and seed funding and facilitating political com- interested in the programs. mitments during the four-year gestation period--helped realize this visionary and ambitious idea. Much more remains to be done, however, to turn the tide against the continued onslaught on the world's tropical, temperate, and boreal Conserving the forests of the Congo Basin is another important forests. In a race against time, partnerships like ours are ever more initiative championed by the Alliance. This effort also received a big critical to galvanizing concerted action. Our eyes remain fixed firmly boost at the WSSD with the announcement of the Congo Basin Forest on a better future for the world's forests and their dependent people. Partnership. The initiative seeks to support a network of up to 10 mil- We invite you to be a part of this important work. lion hectares of effectively managed parks and protected areas and up to 20 million hectares of effectively managed forest concessions in six African countries: Cameroon, Central African Republic, Democratic Republic of the Congo, Equatorial Guinea, Gabon, and the Republic of the Congo. The Congo Basin Forest Partnership will build on the operational framework and political commitment of the Yaoundé pro- James D. Wolfensohn cess. The Alliance was a key supporter of the initial Yaoundé Summit President in 1999 and has acted as a facilitator in the implementation process The World Bank that followed. These successes, together with Alliance activities elsewhere in the world, are reflected in the Alliance's promising performance on its protected area targets. The target for new protected areas has been all but met, and the Alliance is well on its way to meeting its target for improved Dr. Claude Martin management of protected areas, with activities supporting incremental Director General improvements in the management of more than 72 million hectares. WWF International Alliance efforts to meet its target for certification are less immediately visible, though the growth in the area of certified production forest has been rapid both globally and in Bank client countries, where there are now more than 11 million hectares of certified production forests. For wide-scale adoption of certification to occur, however, a more enabling INTRODUCTION 6 Current rates of deforestation--estimated at 28 hectares per minute-- worldwide. The two organizations came together in search of a solution add up annually to an area the size of Nepal. The continuing loss of and found that their respective missions--poverty alleviation and bio- the world's forests results from human-induced threats such as climate diversity conservation--are in fact closely interrelated. On the one hand, change, illegal logging, forest fires, and conversion to agricultural use. forests provide essential environmental services, such as carbon storage At the same time, there is a growing global awareness that our forest and water filtration, and are rich in biodiversity. On the other, they hold resources are finite. Measures to ensure that forest conservation prac- vital importance for the billions of people who depend directly on them tices take hold are increasingly recognized as a top environmental for their livelihoods through medicinal plants, food, fuel, and income. priority. The World Bank/WWF Alliance for Forest Conservation and The World Bank Group is the largest provider of development assis- Sustainable Use continues to make strategic inroads and achieve tacti- tance in the world. The Bank's engagement in the forest sector is guided cal goals in forest conservation. Working independently and as partners by the recently adopted forest strategy and operational policy developed in the Alliance, the World Bank (the Bank) and World Wide Fund for in consultation with stakeholders in the Bank's client countries. The Nature (WWF, known in North America as World Wildlife Fund), have revised approach harnesses the potential of forests to reduce poverty, played an important role in placing issues of forest protection and sus- integrates forests into sustainable economic development, and seeks tainable forest management on the global conservation agenda. to protect vital global forest values. Currently, the Bank's total lending portfolio consists of some 1,900 active projects, representing annual dis- THE ALLIANCE bursements of approximately U.S.$19.5 billion. A Catalyst for Change WWF is the world's largest and most experienced independent con- servation organization, with 5 million supporters and a global network The Alliance was born of a shared recognition by the Bank and WWF active in 95 countries. WWF launched its Forests for Life strategy in of the scale, complexity, and urgency of the crisis threatening forests PROGRESS THROUGH PARTNERSHIP Building on the Strengths of the Alliance THE WORLD BANK'S GLOBAL REACH COMPETITIVE ADVANTAGE Global Reach PUBLIC TRUST Access to Policy Dialogue ACCESS TO POLICY DIALOGUE Policy Reform and POLICY REFORM AND Project Financing WWF'S COMPETITIVE PROJECT FINANCING Convening Power ADVANTAGE CONVENING POWER Economic and Sector Global Reach Analysis ECONOMIC AND SECTOR ANALYSIS Public Trust Large Technical Skill Base LARGE TECHNICAL SKILL BASE Local Knowledge LOCAL KNOWLEDGE Convening Power CONSERVATION SCIENCE Conservation Science MARKET INFLUENCE THE WORLD BANK Market Influence 7 1996 to ensure the protection, management, and restoration of the Since 1998, the Alliance has worked with diverse stakeholders--govern- world's forests. Working at all levels--internationally, regionally, nation- ment policy makers, forest managers, private sector representatives--to ally, and locally--and with a wide range of partners, WWF combines introduce innovative ideas for forest conservation. It has acted as facili- fieldwork with education and advocacy to bring about the changes that tator and catalyst, leveraging funds to turn these ideas into working, will ensure a sustainable future for the world's forests. country-owned forest conservation and management practices. The Alliance has mobilized approximately U.S.$4.5 million in new funding WWF and the World Bank forged the Alliance so that the collective to support close to 100 forest conservation and research projects. strengths of the two organizations could more effectively address the The funding has helped secure more than U.S.$100 million in Global linkages between poverty reduction and forest conservation. The syn- Environment Facility (GEF) grants and U.S.$120 million in World ergy is reflected in the alignment between the Bank's revised forest Bank loans for forest sector programs. The Alliance has also leveraged policy and WWF's Forests for Life program. With its analytical capacity, funds from public and private sources for forest conservation programs: economic development expertise, financing operations, convening More than U.S.$50 million of the U.S.$81.5 million for the first phase power, and access to policy dialogue, the Bank complements WWF's of the Amazon Region Protected Areas initiative comes from the presence and expertise in the field, scientific grounding, public trust, governments of Brazil and Germany and from private foundations, and private sector partnerships. By harnessing these complementary augmenting initial funding from the GEF. strengths, the Alliance has achieved results at a scale larger than either the Bank or WWF could achieve working alone. VALUING OUR FORESTS Benefits, Goods, and Services Forests provide irreplaceable environmental, economic, and cultural benefits. Covering roughly 25 percent of the Earth's land surface, they harbor as much as 90 percent of terrestrial biodiversity, including countless endangered species. Forests contribute directly to the livelihoods of 90 percent of the 1.2 billion people living in extreme poverty, with 50 percent of the annual global timber harvest used as fuelwood. Forests provide environmental services estimated at a value in the trillions of dollars; they do this by supporting the ecological pro- cesses that form soil, recycle nutrients, cleanse air and water, and maintain climatic cycles. Forests also provide billions of dollars in raw materials each year for products such as pharmaceuticals, paper, and building supplies. Because forest goods and services are generally undervalued in economic and policy decision making, they are often not managed in a sustainable fashion. In its work to promote effective protection and sustainable management of the world's forests, the Alliance seeks to incor- porate the interests of the people who depend on forests for their livelihoods. Photo: Bruce Bunting/WWF 8 PAST ACCOMPLISHMENTS, or committed through direct Alliance efforts and partnerships. The Alliance has also supported critical improvements in the management FUTURE CHALLENGES of existing but ineffectively managed protected areas covering over 72 million hectares. This progress was achieved in each of the Alliance's A fundamental benchmark for measuring the effectiveness of the focal regions, with notable large-scale programs in the Amazon Region, Alliance is progress toward its three targets for 2005: the Congo Basin, and the Terai Arc. 4 50 million hectares* (125 million acres) of new forest protected The Alliance discovered early on that progress toward certification areas; requires a long-term, sustained effort to build awareness and establish 4 50 million hectares (125 million acres) of existing but highly the conditions necessary for sustainable forest management. Therefore, threatened forest protected areas secured under effective manage- the Alliance takes a stepwise approach to this target, concentrating its ment; and efforts on the interventions that lay the foundation for certification. As a result, sustainable forest management and independent certification 4 200 million hectares (495 million acres) of production forests are starting to gain ground. When the Alliance was initiated, only a under independently certified sustainable management. handful of forests worldwide were certified. Since then, the area of for- The Alliance made significant progress over the past two years toward est under independent certification has grown dramatically. For exam- meeting the targets for creating and managing protected areas. Just ple, the area certified under the Forest Stewardship Council has grown under 47 million hectares of new protected areas have been created to 28 million hectares, including 11.5 million in Bank client countries as of autumn 2002. Accelerated growth in the area under certification * 1 hectare = 2.471 acres FACING THE THREATS Four Major Threats to Forests WWF has identified four major threats to forests: climate change, illegal logging, forest fires, and conversion to agriculture. Each of these threats is either caused or exacerbated by human activity and the threats are often intertwined in a downward cycle of degradation result- ing in the destruction of forest resources. Climate Change Forest Fires Greenhouse gas levels continue to rise and are now at their highest Fire can be either an essential factor in the ecological cycle of the atmospheric concentrations in 400,000 years. Consumption of fossil forested landscape or a destructive, unnatural threat. Humans energy drives this trend, with land disturbance activities--burning, cause major disturbances to natural fire control regimes around loss, and degradation of forests, rangeland, and soils--accounting the world either by setting fires in forests that would seldom burn for most of the rest. Climate change can cause fluctuations in rain- under natural conditions or by suppressing natural fires, leading to fall and temperature patterns. The fluctuations in turn affect forests catastrophic fires fueled by a buildup of flammable material. The through drought-and flood-induced dieback; conversion to grass- result: ecological and economic damage of significant and lasting land, steppe, or desert; and increased vulnerability to pests, fire, proportions. and invasive species. Conversion to Agriculture Illegal Logging In the last two decades of the twentieth century, 300 million The global trade in illegally extracted timber is a multimillion dollar hectares of tropical forests were converted to nonforest land uses, industry. Illegal logging activities have a particularly devastating primarily agriculture, worldwide. In the absence of controls, forest impact on biodiversity because they often target pristine forests, conversion can advance at a rapid rate, posing a major threat not including protected areas, which contain the highly valuable only to vital forests but also to freshwater ecosystems, livelihoods species that have been logged out elsewhere. Illegal logging also of forest-dependent peoples, and habitats of endangered species. affects human communities by depriving them of access to the natural forest resources upon which their livelihoods depend. 9 can be expected with the implementation of the Bank's new forest evaluate target-driven progress in the context of the headway the policy, which requires that the Bank use independent certification to Alliance has made in deepening partnerships, broadening coalitions, monitor its investments in the forest sector. and raising awareness. The Alliance founders set the three 2005 targets to serve mainly as mile- Alliance programs during the current reporting period, FY2001 and stones on the path to securing the world's forest biodiversity and the FY2002, reflect this evolution in emphasis. The past 18 months have livelihoods of the people who depend on forests. At the midpoint of its been a period during which the Alliance has made strides in terms of term, while the Alliance assessed progress toward the targets, we also new ideas and practices adopted, dialogues initiated, policies approved, took stock of lessons learned to appropriately direct resources in the and resources invested. While not explicit in our quantifiable progress coming years. toward the targets, these dimensions of our work are an appropriate counterbalance to the underlying forces that cause the destruction and Progress toward the targets clearly demonstrates achievements in forest misuse of the world's forests. conservation and the resulting benefits to biodiversity and people. Our experience, however, also signals a need to broaden our focus so we can have an even greater impact on the effectiveness of forest conserva- tion. In particular, the Alliance has realized that it must play a more important role in influencing the global forest conservation agenda in order to improve the enabling environment for certification. To assess progress in this area requires increased emphasis on qualitative mea- sures in pursuit of the original quantitative goals. As such, we need to PROGRESS TOWARD TARGETS 46.9 New Protected Areas 50 72.4 Protected Area Management 50 ACTUAL (September 2002) TARGET (for 2005) 11.5 Independent Certification* 200 0 50 100 150 200 * FSC, World Bank client countries only Million Hectares THE ALLIANCE IN ACTION 10 In FY2001 and FY2002, the Alliance focused on two courses of action: of loss or degradation owing to poor management and governance. regional programs and learning and capacity-building initiatives. In Because these poorly managed areas are protected in concept only, they five regions of the world--Africa and Madagascar, East Asia and Pacific, are sometimes referred to as "paper parks." Europe and Central Asia, Latin America and Caribbean, and South The recent creation of Tumucumaque National Park in Brazil's Amazon Asia--coordinators representing WWF and the World Bank applied rain forest brings the total area of protected areas established with Alliance resources to effectively address issues and challenges to forest Alliance support to just under 47 million hectares. With other promising conservation and sustainable use. In counterpoint to the regional work, large-scale, Alliance-supported initiatives also under way in the Congo the Alliance management team sponsored the development of analyti- Basin and the Terai Arc, fulfillment of the Alliance's target of creating 50 cal tools to address crosscutting, globally significant issues. These learn- million hectares of new forest protected areas by 2005 looks likely. ing and capacity-building initiatives helped shape the agenda of the international forest conservation dialogue and add value to the efforts Creating protected areas by law or decree is only one step in the process of stakeholders working on protected areas and sustainable forest man- of ensuring that the designated areas are well-managed. The Alliance agement initiatives in all regions. also has a target of establishing effective management for 50 million hectares of existing but highly threatened forest protected areas. With A look at the regional programs and the learning and capacity- the Alliance having supported improved management on over 72 million building initiatives illustrates the dynamics of the Alliance's methods hectares, success on this target can be claimed. This success is tempered, and partnerships and shows how progress is made. however, by an understanding that improving management for pro- While the targets serve mainly as milestones to guide the Alliance on tected areas is an incremental process; it requires the establishment the path to secure the world's forest bio-diversity and the livelihoods of of clear baseline levels of activity, management assessments, and the the people who depend on forests, representative examples of Alliance mobilization of resources. Reaching successively more effective levels programs, discussed in this section, illustrate the Alliance's evolution of management will require continued work extending long past the since the last report. The Alliance has grown from reliance solely on time frame of the Alliance's existence. quantitative, hectare-based measures to an increased focus on testing Projects supported by the Alliance and its partners in the current methodologies that lay the groundwork for long-term, systemic sup- reporting period have helped establish new protected areas and made port for forest conservation. For a more inclusive listing of Alliance incremental improvements in protected area management that are programs, see the annex of this report and www.forest-alliance.org, significant when tallied up and measured against the targets. What is the Alliance Web site. equally important is that the Alliance-supported programs described here have resulted in new methodologies and tools that will be tested PROTECTED AREAS for their ability to achieve results far into the future. Beyond Paper Parks Management Effectiveness in West and Central Africa Each year, a growing body of evidence makes it clear that human activity is having a detrimental impact on the world's ecosystems. Governments and stakeholders working in West and Central Africa These impacts place forests under increasing pressure. Many species agree that establishing and effectively managing an ecologically rep- can exist only in the specialized conditions found in natural forest resentative network of protected forest areas will help maintain the ecosystems. Forest protected areas are, therefore, a crucial element in region's environmental resources and improve the livelihoods of local preventing irreversible damage to the world's biodiversity. But on their communities. Though regional agreements and programs already in own, they are not enough. place are meant to safeguard the region's ecosystems, serious threats such as illegal logging and destructive mining continue to jeopardize Protected areas must be incorporated into larger systems, or networks, protected areas. that are both ecologically representative of the full range of forest types and large enough to contain and support viable populations of threat- To improve understanding of these persistent threats and the efficacy ened or endangered species, maintain natural ecological processes, and of responses, the Alliance supported the Workshop on Protected Area adapt to the climatic variations. Where such a contiguous network is Management Effectiveness in West and Central Africa in June 2002. absent, a fragmented patchwork of forest areas cannot fulfill these The objectives of the workshop were to requirements or safeguard biodiversity. 4 raise awareness of the topic of management effectiveness, Currently, just over 10 percent of the world's forests lie within legally protected areas. Within this 10 percent, some of the world's most 4 discuss the World Commission on Protected Areas (WCPA) management effectiveness framework, biologically important forest zones are either missing or underrepre- sented. Furthermore, even some existing protected areas remain at risk 4 introduce a range of assessment tools, and 4 secure government commitment to initiate assessment processes. 11 Gathered in Kribi, Cameroon, the workshop participants agreed to Here are the key aspects of the study: a number of strategies and recommendations designed to harmonize their activities and create an institutional, policy, and public climate 4 It analyzes opportunities and constraints for introducing new financing mechanisms at both national and regional levels in sup- conducive to effective management of protected areas. These out- port of forest conservation activities. comes and recommendations were subsequently endorsed at the Second Ministerial Meeting of the Conference of Ministers in Charge 4 It matches priority activities with specialized financing mechanisms of Forests of Central Africa (COMIFAC) in Yaoundé, Cameroon, in such as environmental trust funds; debt-relief mechanisms; June 2002. It is expected that the successful adaptation and implemen- forestry-based carbon-offset projects; user fees, charges, and taxes; tation of the workshop's outcomes will contribute to the establishment and private sector initiatives. and long-term viability of protected areas in West and Central Africa. 4 It concludes that sustainable financing for Central African forests Alliance contributions to the workshop and other programs in West will require the combined implementation of an ensemble of financ- and Central Africa are part of its ongoing support for comprehensive ing mechanisms. solutions such as the Yaoundé Declaration and the recently announced Congo Basin Initiative. 4 It concludes that the effectiveness of many of the financing mecha- nisms will depend largely on the region's improvement of its gover- Protected Area Funding Mechanisms nance and the creation of an institutional setting favorable to for Central Africa private sector investment. To complement the management effectiveness workshop, the Yaoundé When the financial mechanisms study was presented at the second Declaration signatories commissioned from the Alliance a feasibility COMIFAC ministerial meeting, it prompted delegates to support the study on financing mechanisms for conservation and sustainable man- idea of developing a trust fund for the Sangha Tri-national protected agement of Central African forests. Because protected areas require area complex straddling the borders of Cameroon, Central African sustained and reliable funding for effective management, developing Republic, and the Republic of the Congo. The fund would help the financial mechanisms that support them is paramount. A lack of secure the unique biodiversity values of the tri-border area while sufficient funding will doom even the best plans for protected area providing a model of innovative financial mechanisms that could be management. The study, which draws on experience with specific fund- replicated elsewhere in the region. ing challenges faced in projects like ARPA and others around the world, will assist efforts to develop funding mechanisms for protected areas systems in Central Africa. PROTECTING THE CONGO BASIN The Yaoundé Declaration and ensuing process of implementation have brought forest conservation and sustainable management to The Yaoundé Declaration the forefront of the regional agenda and marked a watershed in the level of political commitment to forest conservation in the Congo The importance of protecting the Congo Basin--the world's second Basin. The Yaoundé process has also established the political frame- largest tropical rain forest area and an important reserve of old growth work guiding forest conservation and sustainable use in the Congo forest, biodiversity, and ecological services--was first formally rec- Basin. In September 2002, at the World Summit on Sustainable ognized at the Yaoundé Forest Summit held in 1999 in Cameroon. Development in Johannesburg, South Africa, the Yaoundé process The heads of state of six Central African countries took part in the received a significant boost when U.S. Secretary of State Colin Powell Alliance-supported summit and signed what is now referred to as announced the pledge of the United States to contribute U.S.$36 the Yaoundé Declaration. The declaration was a 12-point resolution million over the next three years to the Congo Basin Forest Partnership, that promised significant conservation efforts for the Congo Basin's a U.S. government initiative to promote conservation and responsible forest resources including the creation of transboundary protected management of the region's forests. areas, the establishment of national forest policies and harmonized regional forest taxation policies, and measures against harmful Alliance partners have contributed technical, scientific, and policy practices like poaching and illegal logging. expertise to the Yaoundé process and the Congo Basin Forest Partnership. They continue to actively support forest conservation efforts in the region. 12 Assessing Management 4 knowledge of the application of leases, concessions, and user fees; Effectiveness in Bhutan and In April 2002, the Alliance worked with the government of Bhutan to 4 skill in developing work plans. assess the management effectiveness of four protected forest areas that Given the experiences of the Alliance partners in protected area manage- had been created with help from a World Bank/GEF biodiversity ment and the Alliance's potential to leverage significant funds to achieve conservation initiative. A survey identified the strengths, weaknesses, forest conservation objectives, the Alliance is well-positioned to threats, and opportunities related to improved protected area man- advance conceptual thinking and practical application of financial agement. sustainability mechanisms. Threats and pressures faced by the temperate forest ecosystems in these A Tool for Measuring protected areas range from major ones such as grazing and road con- struction, through moderate ones including poaching and collection Management Effectiveness of nontimber forest products, to minor ones such as fishing, timber As a natural complement to its work developing strategies for effective felling, slash-and-burn agriculture, and firewood collection. The study protected area management, the Alliance supported the development of examined the prevalence and causes of the threats with interesting tools to measure management effectiveness. One of these is a simple results. Grazing, one of the most serious threats, was found to be diagnostic tool designed to enhance monitoring and reporting through widespread while road construction remains limited to a single pro- site-level assessments of management effectiveness. tected area. Poaching was found to be driven by commercial trade (musk deer, black bear), personal consumption (blood pheasant, The Management Effectiveness Tracking Tool assists protected area alpine pheasant), and crop and livestock protection (trapping, poi- managers and other relevant site staff in assessing the six elements of soning, and shooting of predators). the World Commission on Protected Areas (WCPA) Management Effectiveness Framework. The framework, developed in 2000 with The assessment identified a number of management weaknesses Alliance support, focuses on context, planning, inputs, processes, out- which, in turn, were formulated into recommendations to improve puts, and outcomes. The tool complements more thorough methods management practices and administrative structures in support of of assessment for the purposes of adaptive management. protected areas. Key attributes of the Management Effectiveness Tracking Tool, due Protected Area Funding to be finalized in early 2003, follow: Mechanisms for Latin America 4 It is suitable for collection of data over a defined period of time. The Alliance supported a learning workshop on protected area financ- ing mechanisms for the Latin American and Caribbean region in 4 Protected area staff, including nonspecialists, can easily understand how to use it. November 2001. Held in Quintana Roo, Mexico, the workshop brought together participants from 16 Latin American countries to learn more 4 It is relatively quick and easy to complete. about the long-term sustainability of financing strategies for pro- tected areas. 4 It provides a score that can be used for comparisons over time or across projects. The workshop highlighted case studies focusing on right-of-way licenses, water use fees, carbon credits, ecotourism initiatives, and other 4 It can be used in conjunction with existing reporting systems revenue sources. In addition, participants analyzed the viability and to avoid duplication of effort. the political and legal aspects of trust funds, environmental services, This is one of the WCPA-compatible management effectiveness tools ecotourism, and other financing mechanisms. Several country teams that the Alliance partners will use in tracking performance of the pro- met to assess the most appropriate models for their existing institu- tected areas within their respective program portfolios. tional and policy frameworks and to develop work plans for applying the chosen models. SUSTAINABLE FOREST Workshop participants gained MANAGEMENT 4 expertise in estimating recurrent costs at the park level; 4 an understanding of successful stakeholder participation methods While the first two Alliance targets focus on forests within protected such as national protected areas councils and site-level technical areas, the third target addresses forests that are used for production advisory committees; of timber and nontimber forest products. Approximately 600 million hectares of forests are harvested annually worldwide to supply the 13 global consumption of industrial roundwood. The goal of the The certification target, like the other two targets, serves as a road map Alliance is to ensure that this harvest is as well-managed as possible, showing the way to sound stewardship of the world's forests. Although given current knowledge of best practices. Because a broad range of significant strides need to be made to reach the certification target, the industrial, community, and individual users of forest resources place Alliance's work has already raised awareness and resulted in significant a variety of demands on forests, a mix of approaches is called for. An clarification and understanding of certification issues. Though certi- example of this is the combination currently being used in the Terai fication cannot resolve all forest conservation and management prob- Arc. Some forest areas require full protection from economic develop- lems, it is a catalyst for improving practices and can be used to set ment because of their key environmental or social values. Other areas, measurable milestones for monitoring change. In this vein, the Alliance still part of a country's natural resource base, can be developed if devel- seeks to promote best practices for sustainable forest management opment is handled appropriately, such as through sustainable forest around the globe, extending its impact well beyond its own sphere management. of activities. Ideally, when sustainable forest management practices are employed in production forests, environmental, economic, and social values are TOWARD CERTIFICATION balanced. The Alliance supports independent, third-party certification as a means of verifying compliance with recognized standards of In response to significant requests from Bank client countries for forest management. Certification to international standards indicates more information on certification, the Alliance has, in this reporting forest management that gives weight to period, focused on the development of tools and training materials to educate forest managers, government officials, and local stakeholders 4 social values, environmental conservation, and economic benefits; about certification, while strengthening the capacity of key individu- 4 conservation of biological diversity; als and organizations to engage in the certification process. 4 mechanisms to ascertain the ownership and rights of local com- East Asia Information Clearinghouse munities and indigenous people; A growing number of forest enterprises in the East Asia and Pacific 4 frameworks for resolution of conflict over utilization of forest region are showing interest in certification. These enterprises require resources; considerable support, however, to move from current management practices to the level required to meet certification standards. For 4 transparency of both forest management and the forest products example, they need practical information on the requirements of trade; and certification and access to reliable and appropriate technical assistance. 4 provision of a credible guarantee of legal and responsible forest The Alliance solution: support development of an information clear- management to forest industries, consumers of forest products, inghouse that facilitates credible and transparent communication and other stakeholders. forums, both nationally and regionally. Together with other supporters of forest certification, the Alliance-supported clearinghouse team The Alliance 2005 target for certification, 200 million hectares, is roughly equal to one-third of the world's production forest harvested 4 disseminates basic information on sustainable forestry and for industrial purposes in the course of one year. While progress has certification, been made and the target remains a valid benchmark, it is clear that 4 facilitates national forums to debate certification issues, certification must be preceded by significant preparatory groundwork to implement an enabling policy and market environment. Therefore 4 improves access to expertise on the implementation of better forest the Alliance's certification efforts are geared towards strengthening practices, and the enabling environment for certification. In line with this approach, 4 shares lessons learned through working with forest managers in the the Alliance supports efforts to improve forest law enforcement, region. revise forest policies, improve stakeholder consultation around forest sector issues, establish national forest management standards, and The clearinghouse serves as the springboard for the establishment of foster increased transparency in the forest product trade regime. regional Forest and Trade Networks (FTNs) in Southeast Asia, China, and Papua New Guinea. The goal: create linkages between producers of The Alliance has adopted a set of 11 criteria that it considers requisite certified timber (and transition timber in the process of becoming for a comprehensive certification system. Currently, the Forest Steward- certified) and purchasers in environmentally discriminating markets. ship Council (FSC) is the certification system most consistent with the The clearinghouse also provides support for multistakeholder national Alliance criteria, although the Alliance hopes that other systems will working groups on certification. By providing targeted information, it realign their design in accordance with these criteria. To date, the efforts of the World Bank and WWF can be linked to 11.5 million hectares of forests certified under the FSC in World Bank client countries. 14 promotes certification, encourages responsible practices by timber contributors. In the next phase, the information service will be companies, and promotes certification tools as social and environmen- expanded to meet country-specific needs, including translation of tal screening criteria by donors and nongovernmental organizations. materials, and to promote the certification message through targeted initiatives. Progress will be reviewed to identify local organizations or In the first phase of this project, the clearinghouse team coordinated networks that could take over the information clearinghouse functions. the development of a regional Internet information exchange service (www.forestandtradeasia.org) that brings together certification advi- Russia Producer Group sory networks. The service identifies both needs for and sources of country-specific information and advice and provides promotional In response to rapid deforestation and degradation of Russia's boreal materials to advertise the information service to potential users and forests, the Alliance supported the development of an association of environmentally responsible timber companies in 2000. Together, the FOREST CONSERVATION responsible community forestry must be employed. The Alliance has provided support to World Bank and WWF conservation and develop- IN THE TERAI ARC ment officers to design and implement a program that promotes Protected Areas and the development of sustainable community forest management plans--including activities such as small-scale ecotourism-- Community Forestry with effective management of protected areas. Through these activities, the Alliance hopes to define a forest The Terai Arc is a 1,500-kilometer crescent of forests and grass- conservation model that incorporates the active involvement of lands shared by India and Nepal. Within the Terai Arc are 11 stakeholders, including government and local communities, and increasingly fragmented protected areas surrounded by managed integrates conservation objectives into local resource management. forests. The area is home to human communities and threatened mammal species including Asian elephants, tigers, and rhinos. Because the wildlife population of the Terai Arc is threatened by Effective community forest management in the Terai Arc is degradation of forest habitats and pressure from human popula- helping to protect species like the Royal Bengal tiger. tion growth, a holistic approach in integrating protected areas and Photo: WWF-Canon/Martin Harvey 15 member companies in the Russian Association of Environmentally also recommended a producers group as the best mechanism to help Responsible Timber Companies account for more than 30 percent of forest managers move from current practices to the level required for the newsprint, 20 percent of the paperboard, 10 percent of the pulp, certification. and 2 percent of the sawn wood produced in Russia. The study finished by recommending a set of minimum standards to In 2001 three main targets were outlined for the association: (1) be met by any forest manager applying for membership in the produc- increased membership, particularly in Eastern Russia and Siberia; (2) ers group, such as operating on a legal forest unit, proving the legality creation and implementation of individual ecological policies for of any other activities in the forest products trade, and committing to member companies, along with monitoring systems to ensure adher- improve forest management to the standards required for certification. ence to the policies; and (3) improved linkages with European and Asian trading partners. Monitoring Manual for Forest Managers in Central America As part of its activities, the association contacted a number of importers of Russian timber products, including around 30 compa- Developing and maintaining sustainable forest practices is a complex nies from Europe, with a proposal to generate demand for sustainably task. Central to this task is monitoring, which calls for the acquisition harvested timber. These companies were invited to a series of work- and use of high-quality information concerning the application and shops to discuss environmental issues and the benefits of membership consequences of forest management activities. To be practical and in the association. useful, monitoring must be cost-effective and efficient, and it must provide forest managers with adequate information to evaluate the As a result effects of their activities and modify their actions when necessary. Devel- 4 timber loggers and processors have been brought together, oping a practical and useful monitoring system is a challenging endeavor with trade between the two market segments already under way; because forest systems are complex and so are the interactions between forests and those who seek to manage them. 4 membership has increased; The monitoring manual for forest managers in Central America facili- 4 members have adopted a stepwise approach to certification and tates cost-effective, efficient, and informative ecological monitoring and monitoring systems with oversight from WWF; certification in neotropical forests in Central America, with an emphasis on the Peten region of Guatemala. Assembled with support from the 4 a comprehensive database of Russian timber suppliers and buyer Alliance, the manual is informed by the principles established by the groups has been established; FSC for the evaluation of forest operations. 4 an association bulletin is being published; and The manual specifies that monitoring should be conducted at a scale 4 association members are regularly participating in international that matches the scope and intensity of the management operation; and national trade fairs and conferences. that monitoring should, at a minimum, track forest condition, forest composition and changes in flora and fauna, and the environmental Central Africa Feasibility Study impacts of harvesting and other operations; and that the results of mon- A need for a producers group in the Central Africa region arose out itoring should be used to implement and revise the management plan. of concern about the widespread destruction and degradation of for- As the manual has been used by forest managers in Central America, est areas caused by unsustainable and illegal logging practices. These it has facilitated an analysis of several problematic issues regarding practices have become a threat to the long-term viability of the entire monitoring: range of forest products coming from the region. In order to assess methods of reducing unsound forest management practices, the 4 First, certification teams often give forest managers only general Alliance commissioned a feasibility study on the establishment of guidance concerning what elements should be monitored. Although a Central Africa producers group. The producers group concept is this lack of specificity of certification conditions gives some forest emerging as an important means to help forest managers make incre- managers beneficial latitude concerning monitoring approaches, mental improvements in forest operations while developing important other managers may be poorly equipped to adequately evaluate what linkages with wholesalers and retailers in environmentally discriminat- ecological elements should be monitored and what monitoring ing markets. approaches and protocols would be most appropriate. The Alliance feasibility study examined barriers to certification in the 4 Second, in some cases only superficial goals have been achieved region and concluded that the technical challenges of certification, through monitoring because forest managers have not understood increased costs of implementing new logging practices, and poor rela- how to incorporate monitoring into their management plans. Even tionships between logging companies and certification working groups though certification guidelines generally call for the incorporation could be effectively addressed through a producers group. The study 16 of monitoring results into the implementation and revision of man- That forests provide a number of important goods and services to local agement plans, many summary reports from forest managers refer- communities seems to be well recognized by community members. As a ence this requirement only abstractly, if at all. consequence, they appear to have a strong desire to manage the forests in a manner that provides long-term benefits. The Alliance's moni- 4 Third, since certification assessment teams often emphasize the toring manual helps certification stakeholders--both assessment importance of monitoring regeneration, growth, and yield in forest teams and forest managers--to identify, understand, and take into operations, it may be that the effectiveness of ecological monitoring account problematic issues, and thus be more effective in their could be enhanced by asking forest managers to combine timber efforts to promote and implement certification. inventory and related monitoring activities with their ecological monitoring. Toolkit for National Working Groups The National Working Group Toolkit is a prominent part of the Alliance's learning and capacity-building strategy. The toolkit, an Internet-based publication (available online at http://www.pienviroconsult.com/ mswg_toolkit) with a companion compact disc, provides valuable MAKING THE GRADE reference material and practical tools on the process of establishing and operating working groups and on the development of national Criteria for Certification standards for forest management. It is these national standards that will guide an external auditor in certifying the operations of a forest man- The Alliance has adopted a set of 11 criteria that it consid- agement unit. The toolkit contains a series of case studies and identifies, ers requisite for a comprehensive certification system. The summarizes, and presents conclusions on what has worked in national Alliance will use these criteria as the basis for determining working groups. It also evaluates political factors and levels of stake- how best to assist national initiatives to strengthen certi- holder participation and their impacts on working timelines. fication systems. National working groups are a vehicle for involving all stakeholders To contribute toward the Alliance target, a forest certification in developing standards for good forest management. An effective system should multistakeholder group can address a wide range of forest problems and ensure that a common understanding emerges about the underly- 1. be institutionally and politically adapted to local conditions ing issues. Unfortunately, most less-developed countries lack the insti- 2. be goal-oriented and effective in reaching objectives tutional and technical capacity to develop forest management standards. They typically do not have access to information on the experiences of 3. be acceptable to all involved parties countries that have successfully adopted national standards. 4. be based on performance standards defined at the In 2001, the project team enlisted the support of members of various national level that are compatible with generally national working groups on certification to share their experiences accepted principles of sustainable forest management by drafting country case studies from Bolivia, Cameroon, Colombia, Ghana, Indonesia, and Latvia. Countries were chosen so that there 5. be based on objective and measurable criteria would be balance in terms of both geography and approaches. Case 6. be based on reliable and independent assessment studies were drafted according to a standard outline with directions on selecting representatives, behavioral protocols, conflict management, 7. be credible to major stakeholder groups (including and strategies for dealing with sensitive issues. consumers, producers, and conservation and nongovern- mental organizations) The lessons from this exercise focus on practical areas such as con- tacting experienced resource organizations or individuals, drafting a 8. make decisions free of conflicts of interest from parties national standard, consulting with stakeholders, gaining recognition, with vested interests and developing and implementing a funding strategy and strategic 9. be cost-effective plan to achieve the group's priorities and objectives. 10. be transparent An increasing number of countries around the world now have active multistakeholder working groups developing national forest 11. offer equitable access to all countries certification standards. The toolkit thus broadens the scope and results of the Alliance's learning and capacity-building efforts by facilitating the development of national working groups that will be better equipped to work toward certification. 17 REACHING OUR AUDIENCES government as belonging to traditional communities, which in turn sell stumpage rights on the open market. To date, there are no Innovative Training in Local Languages certified forestry operations in Nicaragua, much less the Mosquitia. The Nicaraguan Mosquitia region is part of the broader Honduran/ Nicaragua's FSC National Working Group recently completed a four- Nicaraguan Mosquitia complex, the largest, least populated, and year process to develop national certification standards. As part of most intact forest area in Central America. The Nicaraguan Mosquitia this process, substantial education of NGOs, government officials, is that country's main source of tropical hardwoods for both internal and the industrial private sector occurred, but relatively little and external markets and is under increasing pressure to provide focus has been applied to indigenous landowners or small logging jobs and revenues for the forest sector. The region is also considered companies. The Alliance supported a project to carry out three "Autonomous" under Nicaraguan law, and is governed in part by community workshops in the Miskito and Sumo languages, based indigenous governments that represent the dominant Miskito and on training manuals prepared in these languages, to communicate Sumo populations. Most forests in the region are recognized by the the certification process and standards to the most critical audience: the forest landowners themselves. 18 IMPROVING GOVERNANCE Log Tracking Workshop in Cambodia The Alliance, along with the governments of the Netherlands and the The Alliance operates under the principle that sound certification United Kingdom, funded a recent workshop in Phnom Penh, Cambodia, must be supported by an enabling policy environment and strong titled "Log Tracking and Chain of Custody Practices in Forestry and institutional structures. To create an environment in which certification Forest Products." Attended by representatives from government agen- can succeed, the Alliance focuses its resources on promoting improve- cies, international development organizations, nongovernmental ments in forest governance and building accountability into the inter- organizations, universities, and the private sector, the workshop laid national trade in forest products by addressing issues such as illegal the groundwork for an upcoming Alliance-funded study on state-of- logging. the-art methods of tracking wood along the chain of custody en route Legal Reform in Peru from forest floor to consumer. In early 2001, following three years of involvement by the Alliance, The impetus for the workshop was the continued prevalence of illegal Peru's Congress passed a new forest law requiring a significant logging, identified as a major and growing threat to the environment, overhaul and modernization of its forest sector. With the new forest economy, and social stability in East Asia and other parts of the world, law in place, the Alliance provided support to the Peruvian Natural in particular Eastern Europe, Africa, and Latin America. Illegal logging Resources Institute (INRENA) to initiate a public bidding process and forest crime are not only detrimental to timber markets, they also for concession contracts in an effort aimed at ensuring effective discourage sustainable forest management and in some cases fuel implementation of the new law. The project was of great ecological armed conflict and undermine the general climate of law and order. significance: All forest concessions in question are located around Effective verification of the chain of custody of wood products has outstanding biodiversity sites within the globally significant Southwest important applications in combating illegal logging and unsustainable Amazon ecoregion. management. For example, a verifiable chain-of-custody system can With Alliance support, WWF and INRENA conducted inventories to increase the trust essential to motivating consumers, specifiers, retailers, determine and quantify the forest types and species in areas to be des- processors, and producers to specify or produce their wood products ignated as permanent production forests. As part of the process, maps from responsibly managed forests. of forest types were created and verified in the field. The information Perhaps the most important conclusion reached at the workshop is that served as a valuable tool for INRENA as it determined the geographical no matter how advanced the technologies and systems are, the most boundaries of concession lots and created the technical dossier for the important factors for successful implementation of log tracking are bidding process. the human and institutional settings under which the systems operate. The forest inventories laid an important foundation that could lead to Systems will not work effectively if users are not sufficiently moti- sustainable management, if properly used. The project also provided vated and trained. Nor will they work in the absence of political will. direct technical support to resource-poor loggers by helping to assem- ble legal and technical information for the bidding process. Proposals that received assistance from the project were designed based on the principles of sustainable forest management; as such, it is expected that these concessions will qualify for forest certification under even the highest international standards. The inventory work and technical assistance provided by the project were supplemented by an advocacy and public communications strat- egy. The goals: to promote greater understanding of the public bidding process and to spread awareness of the need to implement the forest law and modernize the forest sector. The communications campaign incorporated paid print, radio, and television announcements. On April 30, 2001, under the mandate of the new law, the government of Peru assigned 1.5 million hectares of forest to 51 forest companies in 40-year concessions ranging from 5,000 to 50,000 hectares. Alliance contributions played a large role in this forest sector reform in Peru. Now the challenge to the government will be to fully implement the reforms, a potentially difficult task if logging interests protest that their access to forest resources has been restricted. 19 PROGRESS THROUGH PARTNERSHIP A period of self-evaluation and external review since our last report 4 target-driven activities with the potential to deliver significant benefits has confirmed that the Alliance is on the right track. The initiatives to in terms of on-the-ground realities, and protect the tropical moist forests of the Amazon and Congo basins are unprecedented and they demonstrate the creative and ambitious nature 4 activities oriented toward shaping the agendas and capabilities of institutions with a stake in the way the world's forests are governed of projects supported by the Alliance. The emergence of independent and managed. certification as a tool for sustainable forest management is similarly a measure of progress toward forging a global consensus on the need to Much more remains to be done to protect forests, their biodiversity protect the world's forests for future generations. values, and the livelihoods of people who are dependent on them. In the coming years, the Alliance will more effectively mainstream its activ- In spite of this progress, forest ecosystems and forest-dependent ities into World Bank Country Assistance Programs and WWF's Forest communities still face a daunting array of threats to their survival. Target-Driven Program and Ecoregion Action Programs. It will high- Realizing the urgency of this challenge, the Alliance will seek to light and strengthen linkages between forest management and poverty build on the accomplishments of the past year by refocusing its efforts reduction objectives. And it will move major opportunities forward on key forested countries and those activities that make maximum use by scaling up resource mobilization. In these ways, the Alliance will of the strengths of the World Bank, WWF, and their partners. Two main continue to amplify the impact of its activities around the world. thrusts will continue to guide this approach: Photo: Dennis Glick/WWF ACTIVITIES SUPPORTED IN 2001 AND 2002 20 ALLIANCE REGIONAL PROGRAMS Latin America and Caribbean Alliance regional programs support forest conservation and sustainable Regional use by providing seed funding to develop projects likely to attract International workshop held in Mexico on protected areas financing larger sums of funding from external sources. The programs also mechanisms for Latin America. support small pilot activities designed to develop and test innovative Partners: RedLAC. approaches to forest management and protection. Central America Africa and Madagascar Biological monitoring for forest management in high conservation Implementation of the Yaoundé Process value forests. Development of a monitoring tool for forest managers for Study on Institutional Mechanisms for the Implementation and ecological monitoring and forest certification in high conservation Monitoring of the Priority Activities Under the Yaoundé Declaration. value neotropical forests, with emphasis on community management Study on financial mechanisms to identify and assess feasibility of new operations. financing mechanisms for conservation and sustainable forest man- Partners: FSC, CATIE. agement goals agreed to under Yaoundé Declaration. Second COMI- FAC meeting. ARPA Partners: Signatory governments to Yaoundé, ADIE, ATO, IFIA, Participatory planning workshops in three protected areas. ITTO, FAO, EU, GTZ, France, GFW, CARPE, CARPO, CIDA, CIFOR, Financing the implementation of first phase (the creation of 9 million DFID, IUCN, CEFDHAC, OCFSA, UNDP, UNESCO, UNIDO, WCS. hectares of strict-protection protected areas and 9 million hectares of sustainable use protected areas). Central Africa Region Establishing the foundation of sustainable forest management in Partners: GEF, government of Brazil, MMA, IBAMA, States/munici- Africa. Assessment of the global scale of the "law enforcement gap" palities (for state or municipal protected areas), FUNBIO. and the linkage between governance and the level of compliance and implementation of current laws, rules, and regulations using the Peru Pyramid Diagnostic and Planning Tool. Support for development of sound regulations in Peru's Forest and Wildlife Law through forest policy development and sector analysis. Partners: Governments of Cameroon, Gabon, Tanzania, Benin, Ghana, Central African Republic, Republic of the Congo. Partners: Foro Ecológico, INRENA, grassroots NGOs. Central Africa Region Peru Producers Group Network Feasibility Study on establishing a network Pilot projects for small-scale loggers of Tahuamanu, Madre Dios, to of progressive private sector companies involved in logging industry develop Peru's first forest concessions for sustainable forest manage- in Central Africa and willing to work with other stakeholders on sus- ment and forest certification. tainable forest management and certification. Partners: INRENA, CORMADERA, and the National Forest Chamber Partners: Subregion governments, private sector forest industries, GTZ, (Peru), small-scale timber loggers, indigenous peoples, environmental DFID, ATO, ITTO. NGOs, and the Ministry of Agriculture. West and Central Africa Regions Colombia Workshop held in Cameroon to promote the methodologies for assess- Strengthening forest protected areas and certification strategies. Pilot ment of protected areas management effectiveness in West and Central community-based forest management project in the Cimitarra Valley Africa. region with the Small Farmer (Campesino) Association to apply pro- tected areas effectiveness monitoring tool. Analysis of potential areas Partners: Governments of Côte d'Ivoire, Ghana, Nigeria, Cameroon, for certification (community-based and small-enterprise-based). Central African Republic, Democratic Republic of Congo, Gabon, Republic of the Congo, ECOFAC, CARPE, IUCN, CI, WCS, UNDP, Partners: Government of Colombia, local authorities, regional devel- FFI, ECOWAS, CEMAC, ADB, CEFDHAC, COMIFAC, GTZ. opment corporations, private sector representatives, forest certification national working group members. 21 Nicaragua East Asia and Pacific Certification of industrial and indigenous community forest operations in the Mesquitia region. National standards for Stepwise Approach to Regional Certification protocol for high conservation value forests and group Regional Web-based clearinghouse providing an information hub for certification. Training of indigenous forest land owners in the FSC certification information network to educate stakeholders and promote certification process. certification in Southeast Asia, China, and Papua New Guinea. Partners: University of CIUM-BICU, PROARCA/APM, CCAD, USAID, Partners: TFF, GTZ, Tropical Forest Trust, certifying bodies, FSC. TNC, RA. Regional Europe and Central Asia Regional log tracking workshop conducted in Cambodia. Report on technologies for wood tracking assessing comparative systems for Regional verifying wood sources and legal compliance. Toolkits and training to facilitate forest certification in the ECA Partners: DFID, government of the Netherlands (World Bank Dutch region. Pilot training courses on developing transparent and Trust Fund), government of Cambodia. participatory certification standards that comply with international certification schemes, through workshops in Bulgaria and Croatia for 15 participant countries. Pilot training courses on auditing held Cambodia for participants from 16 countries during workshops in Romania Certification Pre-Assessment and the establishment of a national and Croatia. working group on national forest management standards. Partners: Local NGOs and stakeholders. Partners: Government of Cambodia. Russia Indonesia Development of an association of environmentally responsible Illegal logging assessment. Overview of the political, governance, timber companies. and legal/regulatory setting for forest law enforcement and of the forest sector; quantification of illegal activity; and evaluation of enforce- Partners: IKEA Group, Russian timber companies including Ilimpulp ment effectiveness. PPM, Solikamskbumprom PPM, Svetogorsk PPM. Partners: Government of Indonesia, European Union Forest Liaison Russia Bureau, USAID Natural Resources Management Project, DFID Multistakeholder Project, CIFOR, Forest Watch Indonesia, TRAFFIC, Timber trade analysis to increase transparency of Russia-China timber EIA, Telapak, ICEL, ELSAM. trade. Partners: Major Russian timber companies such as Ilimpulp PPM, China Solikamskbumprom PPM, Svetogorsk PPM; IKEA Group; govern- Study on net ecological footprint, both within and outside China, of ments of the Russian Federation and the Republic of China; regional China's demand for wood and fiber and the impact of reforms in the administrations and NGOs. forest sector. Russian Far East Partners: TRAFFIC East Asia. Conference on Commercial Forestry in the Russian Far East to dis- cuss critical issues facing the forestry sector and approaches to enhance China the contribution of forestry to the economic development of local Establishment of a national working group on national forest manage- communities. ment standards. Partners: Forest Trends, Sakhalin Environment Watch, FEFRI, Pacific Partners: Government of the People's Republic of China. Environment, Terneiles, Greenpeace, Sakhalin Administration, Economic Research Institute, Forest Certification Center, IGES. Southeast Asia Region South East Asia Forest and Trade Network study on feasibility of establishing an ASEAN forest and trade network. Partners: FSC, LEI, Tropical Forest Trust, SGS, Smartwood, Berau Forest Management Project. 22 Mongolia Bhutan Assessment on legal and illegal timber exports, examining the status Assessment of Bhutan's protected area management effectiveness. of timber exports from Mongolia, including reexporting Russian Partners: Government of Bhutan, Royal Society for the Protection of timber, and its social and environmental impacts. Nature, Bhutan Trust Fund for Environmental Conservation, National Partners: UNDP, FAO. Biodiversity Center, UNDP. Mongolia Terai Arc Conservation of Sacred Forests with the Buddhist Community through Biological and socioeconomic assessments and development of a five- the re-creation of Buddhist reserves and the reintroduction of the year action plan to manage existing forest corridors linking protected centuries-old traditional ban on logging and hunting in Buddhist areas in Terai Arc landscape of India and Nepal. sacred sites, the book Sacred Sites of Mongolia, and pilot conservation Partners: Governments of India and Nepal, King Mahendra Trust, project activities with involvement by local monasteries. UNDP, USAID, DGIS, EU, UN Foundation, CARE, ICIMOD, Save Partners: ARC, Gandan Monastery. the Tiger Fund, U.S. Fish and Wildlife Service, Netherlands Development Agency. Papua New Guinea Feasibility studies and development of a proposal for an operational LEARNING AND CAPACITY BUILDING PNG National Forest Certification Service for Small-scale Producers. Building on the Alliance's early research and analysis work, the learning South Asia and capacity-building elements of program activities promote best practices and foster sustainable forest management by training, devel- India oping methodologies and toolkits, and disseminating information. Assessment by local communities of joint forest management activities Development of the following tools has reached completion: in the Maharastra region of Western Ghats. Partners: State Forest Department of Maharastra, IIFM. The Pyramid: A Diagnostic and Planning Tool for Good Forest Governance India Pyramid framework for participatory assessment and target-setting in Methodology for poverty impact measurement of forestry program. forest governance. Partners: Madhya Pradesh Forest Department, Oxford Policy Partners: IIED. Management. Rapid Assessment and Prioritization Methodology India A methodology to analyze management status across a national Training of Trainers Program: Measures of Success for Sustainable or regional protected areas system and to correlate areas in need of Forest Management. improvement with threat within the WCPA framework. Partners: IIFM, state forest departments of Karnataka, Madhya Partners: University of Queensland, IUCN WCPA. Pradesh, Chhattisgarh, Andhra Pradesh, National Task Force on Criteria and Indicators, DFID, Ford Foundation, IIED. Reporting Progress on Management Effectiveness WCPA scorecard to evaluate management effectiveness at the site level. Pakistan Partners: University of Queensland, IUCN WCPA. Workshop to improve the effectiveness of management of protected areas, including the use of performance indicators. Partners: Government of Pakistan, NGOs. 23 2001 FINANCIAL REPORT 2002FINANCIAL REPORT 24 25 ABBREVIATIONS & ACRONYMS ADB DGIS African Development Bank Group Dresden Geo Information Service ADIE ECOFAC Association pour le Développement de l'Information Environmentale Programme for Conservation and Rational Use of Forest Ecosystems in Central Africa ARC Alliance for Religions and Conservation ECOWAS Economic Community of West African States ARPA Amazon Region Protected Areas program EIA Environmental Investigation Agency ASEAN Association of Southeast Asian Nations ELSAM Institute for Policy Research and Advocacy ATO African Timber Organization EU European Union CARE Cooperative for Assistance and Relief Everywhere, Inc. FAO Food and Agriculture Organization CARPE Central African Regional Program for the Environment (USAID) FEFRI Far Eastern Forestry Research Institute CARPO Central African Regional Program Office (WWF) FFI Fauna and Flora International CATIE Tropical Agricultural Research and Higher Education Center (Costa Rica) FSC Forest Stewardship Council CCAD Central American Commission on the Environment and Development FUNBIO Brazilian Fund for Biodiversity CEFDHAC Conference of the Central African Moist Forest Ecosystems GEF Global Environment Facility CEMAC Economic and Monetary Community of Central Africa GFW Global Forest Watch CI Conservation International GTZ German Corporation for Technical Cooperation CIDA Canadian International Development Agency IBAMA Brazilian Institute of the Environment and Renewable Natural Resources CIFOR Center for International Forestry Research ICEL Indonesian Center for Environmental Law CIUM-BICU Bluefields Indian and Caribbean University ICIMOD International Centre for Integrated Mountain Development COMIFAC Conference of Ministers in Charge of Forests of Central Africa IFIA Interafrican Forest Industries Association CORMADERA Corporation of Forest and Lumber Development of Ecuador IGES Institute for Global Environmental Strategies DFID Department for International Development (United Kingdom) IIED International Institute for Environment and Development 26 IIFM UNEP Indian Institute for Forest Management (India) United Nations Environment Programme IIPA UNESCO Indian Institute for Public Administration (Costa Rica) United Nations Educational, Scientific, and Cultural Organization INRENA UNIDO Natural Resources Institute (Peru) United Nations Industrial Development Organization ITTO USAID International Tropical Timber Organization United States Agency for International Development IUCN USDA World Conservation Union United States Department of Agriculture KfW WCMC German Federal Government Development Bank World Conservation Monitoring Centre LEI WCPA Agricultural Economics Research Institute World Commission on Protected Areas (IUCN) MMA WCS Ministry of the Environment (Brazil and Colombia) Wildlife Conservation Society OCFSA WSSD Organization for Wildlife Conservation in Central Africa World Summit on Sustainable Development PEFC WWF Pan European Forest Certification Council World Wide Fund for Nature, known in North America as World Wildlife Fund PNG Papua New Guinea PROARCA/APM Protected Areas and Environmental Trade Component of the Regional Environmental Program for Central America RA Rainforest Alliance RedLAC Network of Environmental Funds of Latin America and the Caribbean SGS Société Générale de Surveillance TFF Tropical Forest Foundation TNC The Nature Conservancy TRAFFIC Wildlife Trade Monitoring Network of WWF and IUCN UAESPNN Special Administrative Unit of National Parks (Colombia) UNDP United Nations Development Programme 27 MANAGEMENT TEAM WORLD BANK / WWF ALLIANCE The Alliance management team is tasked with coordination of Alliance activities: strategic planning, operational guidance, policy development, resource mobilization (fund-raising, budgeting, and financial oversight), monitoring and evaluation, and research and development. The team consists of the Alliance cochairs, central coordinators, communications coordinators, and regional coordi- nators for each of the following regions: Africa and Madagascar, East Asia and Pacific, Europe and Central Asia, Latin America and Caribbean, and South Asia. A core management team, compris- ing the Alliance cochairs and central coordinators, is responsible for the day-to-day management of the Alliance. WORLD BANK WWF Cochairs David Cassells dcassells@worldbank.org Bruce Cabarle bruce.cabarle@wwfus.org Coordinators Christian Peter cpeter@worldbank.org Stephen Kelleher stephen.kelleher@wwfus.org Communications Coordinators Samira Leakey sleakey@worldbank.org Mark Hurley mark.hurley@wwfus.org Regional Point People Africa and Madagascar Giuseppe Topa gtopa@worldbank.org Adewale Adeleke aadeleke@wwf.cm Clotilde Ngomba cngomba@worldbank.org East Asia and Pacific Susan Shen sshen@worldbank.org Rod Taylor rodtaylor@wwfnet.org Europe and Central Asia Gerhard Dieterle gdieterle@worldbank.org Duncan Pollard dpollard@wwfint.org Latin America and Caribbean Claudia Sobrevila csobrevila@worldbank.org Darron Collins darron.collins@wwfus.org South Asia Jessica Mott jmott@worldbank.org Mingma Sherpa sherpa@wwfus.org Peter Jipp pjipp@worldbank.org ALLIANCE REGIONAL 28 PROGRAMS This map has been prepared exclusively for the convenience of the reader. The designations used and data depicted on this map do not imply any judgement on the legal status of any territory or an endorsement or acceptance of any boundaries. Russia Mongolia--1. assessment of 1. increasing transparency of legal and illegal timber trade Russia­China timber trade 2. conservation of the sacred forests 2. association of environmentally within the Buddhist community responsible timber producers 3. conference on critical issues of forestry sector in Russian Far East Bulgaria and Croatia-- workshops on transparent national forest certification Pakistan--performance process for 15 countries indicators for assessing protected area management Bhutan--assessment of protected area management effectiveness Mexico--workshop on Colombia--community- protected area financing Terai Arc (India and Nepal) based forest management China--1. report on regional footprint 1. biological and socioeconomic assessments of China's demand for wood and fiber 2. five-year management plan for forest 2. national working group on forest Central America Brazil--financing corridors management standards ecological monitoring and certification workshops for for community management operations Amazon protected areas Papua New Guinea--national forest in neotropical forests certification service for small-scale producers Cameroon--assessing the effectiveness of Cambodia--certification East Asia and Pacific Nicaragua--1. national standards protected areas management pre-assessment and 1. Web-based clearinghouse for stepwise approach to certification national working group for certification information 2. certification of industrial and on forest management 2. regional workshop on indigenous forest operations Central Africa and Congo Basin standards log tracking mechanisms 1. institutional and funding mechanisms 3. study on SE Asia forest for Yaoundé Declaration implementation India--1. forest management and trade network Peru--1. managing small scale 2. assessment of forest law enforcement assessment by local communities forest concessions for certification 3. producers group of progressive logging 2. methodology for measuring 2. sound regulations in national companies to support responsible practices poverty impact of forestry Forest & Wildlife Law Indonesia--1. analysis of programs forest sector law enforcement 2. quantification of illegal logging activity concept & design: Designfarm 29 WORLD BANK / WWF ALLIANCE www.forest-alliance.org Email: wbwwfalliance@worldbank.org WWF INTERNATIONAL Ave. du Mont Blanc CH-1196 Gland Switzerland www.panda.org Tel: +41 22 364 9111 Fax: +41 22 364 0640 THE WORLD BANK 1818 H St., NW Washington, DC 20433 USA www.worldbank.org Tel: +1 202 473 1000 Fax: +1 202 522 1142 © WWF. All rights reserved by World Wildlife Fund, Inc. WWF Logo © 1986, WWF--known internationally as the World Wide Fund for Nature, ® Registered Trademark owner. 2­2003/3000