What it aims to achieve
The Forest Investment Program (FIP) empowers developing countries to manage their natural resources in a way that achieves the triple win of being good for the forests, good for development, and good for the climate. The program aims to reverse the impacts of human actions and climate change on our forest ecosystems.
Why it’s needed
Forests, constituting nearly a-third of all land on earth — approximately four billion hectares, support life everywhere. They are vital as habitats for wildlife; as a resource for rural livelihoods; as a means of conserving healthy soils and clean water; and as a carbon sink where climate-altering greenhouse gases are captured and stored.
How it works
This program supports its country partners with direct investments to address the drivers of deforestation and forest degradation. Grants and low-interest loans help governments, communities, and business stakeholders work together to achieve sustainable solutions. It supports the people and economies dependent on forests, while maintaining the important environmental services that forests provide.
Delivery Challenges
Agricultural expansion, conversion to pastureland, infrastructure development, destructive logging, and fires have taken a serious toll on forests. Due to agricultural expansion, infrastructure development, destructive logging, and fires, we have lost approximately seven million hectares a year of natural forests over the last decade.
Deforestation poses a major threat to forests, along with the Indigenous groups and local communities who depend on them. Deforestation is linked to the economic situation in partner countries, where the percentage of people living in rural areas tends to be high and many live below the poverty line.
A contributing factor is that Indigenous groups lack land rights or legal status. This is despite the fact that Indigenous groups have frequently shown that they sequester twice as much carbon through their land management practices than lands that are not managed by them. The resulting situation can leave their lands vulnerable to exploitation by large-scale agribusiness.
Measuring Results
FIP tracks progress on its contributions to greenhouse gas (GHG) emissions reductions/enhancement of carbon stocks; sustainable land management; and livelihood co-benefits for forest communities, such as improved access to finance, support from technical assistance, and employment opportunities.
FIP projects and programs also report on other relevant co-benefits, including biodiversity, governance, land tenure, and capacity building. Multi-stakeholder engagement is central to the implementation and monitoring of FIP’s investment plans. As part of FIP's approach to monitoring and reporting, state and non-state stakeholder groups in each FIP recipient country come together for a workshop that involves reviewing, discussing, and assessing progress on all FIP projects under implementation in the country. This inclusive, participatory approach enriches the process, builds monitoring and reporting capacity, and improves results.
Key Results
Please note: Not all projects contributing to all indicators
INDICATOR
CURRENT RESULTS
TARGET
Area covered under sustainable land management practices
31.9 million ha
TARGET: 40.7 million ha
19 projects reporting
TARGET: 34 projects
GHG emissions reduced
27.8 million tCO2 eq
TARGET: 73.6 million tCO2 eq
11 projects reporting
TARGET: 34 projects
People with enhanced livelihood co-benefits
2.1 million people
TARGET: 2.5 million people
24 projects reporting
TARGET: 34 projects
- 0%
- 20%
- 40%
- 60%
- 80%
- 100%
OTHER FIP RESULTS
#46c1be Biodiversity FIP countries are making good progress toward enhanced biodiversity through forest loss reduction, forest conservation, and payments for environmental services.
Biodiversity FIP countries are making good progress toward enhanced biodiversity through forest loss reduction, forest conservation, and payments for environmental services.
#ffc20e
Governance FIP support is helping to improve governance by strengthening decision-making processes, ensuring a participatory approach, and bolstering forest law enforcement.
#cbdb2a
Land Tenure, Rights, and Access FIP is contributing to improved tenure, rights, and access by establishing innovative tree tenure and benefit-sharing systems.
#46c1be
Capacity Development FIP is providing technical assistance, employment opportunities, trainings for communities and local governments, awareness-raising campaigns, and equipment in support of sustainable forestry.
Financing
NO. OF CIF-APPROVED PROJECTS
50
fip Approved Funding
$597.8M
EXPECTED CO-FINANCING
$1B
SOURCES OF EXPECTED CO-FINANCING
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Government
$394.7 M
Bilateral / others
$56 M
MDB
$521.3 M
Private sector
$45.7 M
fip REGIONS
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Asia
17%
Latin America & the Caribbean
38%
Sub-Saharan Africa
44%
Global
1%
fip SECTORS
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Landscape approaches
46%
Sustainable forest management
32%
Capacity building/institutional strengthening and governance reform
8%
Indegenous peoples/local communities
12%
Forest monitoring/measurement, reporting and verification
2%
Data as of December 31, 2021
For latest MDB and Government Focal point, please contact CIF Admin Unit @ cifadminunit@worldbank.org
Contribution to SDGs
Implementing Partners
FIP Projects
Event Spotlight
Climate action and development are inextricably linked. This link has been confirmed by a new independent evaluation that assesses and analyzes how climate finance programs can lead to broader social, economic, environmental, and market development impacts.
May 03, 2023
09:00 AM - 10:30 AM EST
