---

INTERGOVERNMENTAL WORKING GROUP ON FORESTS (IWGF) REPORT

Synopsis of the Discussion

a) Financial Resources

---

The participants recognised that the financial resources should be raised from internal and external sources with strong participation of public and private sectors as well as NGOs. Additional internal sources could be made available through increased forest revenues; greater utilization of forest products such as non-timber forest products and lesser used species of timber; increased processing in value added products; increased investment by the private sector in reforestation activities; and increased commercialization of forest goods and services. Some participants expressed the view that, on the basis of national priorities, the financial benefits derived from mineral and water resources in some forest regions can be a significant contribution to the management, conservation and sustainable development of all types of forests.

On external sources, the participants considered several options, inter alia, achievement of the UN target for ODA contributions for those donor countries that have accepted the target; GEF funding for appropriate forestry activities; soft loans from international and regional banks; enhanced value of forest products; use of National Environmental Funds; debt-for-nature swaps; tradeable permits and joint implementation schemes; relocation of forest-based industries to developing countries; and, increased private sector investment in forest related activities.