EBRD and FAO supporting sustainable forestry investment in Russia

The European Bank for Reconstruction and Development (EBRD) and the Food and Agriculture Organization of the United Nations (FAO) are collaborating to promote investment and innovation in the forestry sector in the Russian Federation's Far East.

The collaboration in aimed at improving the sustainable use of forest resources and an Investment Roadmap, defining the pathway to sustainable investments in the region's forest industry, was presented this week at an Investment Forum in Vladivostok, Russian Federation.

The Forum was hosted by EBRD and FAO and attracted local authorities, federal government officials, private sector companies, industry experts, academia and non-governmental organisations.

More than 9 per cent of the world's forests are situated in Russia's Far East and they play a crucial role in stabilising global climate. The forests in the region are also essential to the livelihoods of millions of people, including Indigenous Peoples groups, who depend on them as a source of fuelwood, food, water and non-timber forest products.

The Investment Roadmap emphasises that exploitation of the economic potential of this resourcemust be based on sustainable forest management principles and practices ensuring that appropriate forest areas are protected.

"This huge forest domain borders the very large market of China and the rest of Asia," said Jukka Tissari, FAO Forestry Officer. "It has been subject to varying levels of forest utilisation, ranging from intensive use in the coastal region and around main transport corridors, to largely untapped forest frontiers with high biodiversity. Improving forestry information and sustainable forestry management practices, processing raw materials and waste streams more efficiently, and adding value to products in demand by markets, are key opportunities for investment. It is an occasion to turn a new page for the region".

"EBRD firmly believes that the economic value of forests needs to be optimised by balancing the use of forests for multiple economic activities with their core ecological functions, such as conservation of biological diversity, protecting watercourses and water quality as well as absorbing carbon dioxide to mitigate climate change," commented Lindsay Forbes, the EBRD's Director for Industry, Commerce and Agriculture in the Russian Federation.

"Therefore, it is the highest priority to EBRD to ensure that the exploitation of the economic potential of the forests is based on sustainable forest management principles and practices ensuring that appropriate forest areas are protected," Mr. Forbes added.

In particular, EBRD and FAO stressed that the forestry sector in the region lacks a qualified workforce which is crucial to stimulate the development of new technologies. The industry would require additional investment in human capital, as well as reforms in the education system.

The Roadmap suggests that higher education institutions should include specialised forestry topics in their curricula, for instance on the certification of wood products. The Roadmap also highlighted the importance of tapping on the availability of low-quality wood and wood wastes to produce bioenergy which will improve the efficiency of current production and create new jobs.

During the forum, delegates agreed on the importance of maximising synergies between the use of available resources and the adoption of sustainable forest management practices to realise the forests' full potential as an important source of timber and improve the quality of the region's forest resources.

The Investment Roadmap is the result of a joint EBRD/FAO project designed to help the Government of the Russian Federation develop supportive forestry policies and create a favourable investment climate for forest industries in the region.