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Given increasing recognition of the role of forests in addressing global challenges such as climate change, food security and poverty alleviation, sustainable forest management is more important than ever. But financing it remains a major challenge. Financing is about more than raising money. Broadening and diversifying the financial base for sustainable forest management involves, among other things, demonstrating the multiple benefits of forest investment; creating new revenue streams; establishing viable and lasting partnerships with other economic sectors; and strengthening the financial management capacity of forestry institutions.
National forest funds (NFFs) have gained international attention in recent years for their potential role in financing sustainable forest management. Despite the presence of NFFs in more than 50 countries, however, limited information is available on how NFFs work, the experiences gained from their operation, and the lessons learned. Towards Effective National Forest Funds addresses the need for more information on the way NFFs work and how best to establish and manage them. It shares the lessons that have emerged from the establishment and management of NFFs with the aim of supporting countries in designing and operating NFFs effectively according to their specific needs and circumstances. Based on a review of practical experiences, Towards Effective National Forest Funds outlines the general architecture and design elements of NFFs, as well as potential approaches and actions that could improve their performance.