Establishing fair and sustainable forest economies

The forest sector is not yet making an effective contribution towards sustainable development. With the global climate and biodiversity crises becoming more evident, establishing resilient land and forest economies is a priority. Decades of work to establish legal and sustainable supply chains for timber and wood-based products provide important lessons for reform of other ‘forest risk’ commodities. Chatham House’s analysis over the last two decades paints a mixed picture – of remarkable progress in forest policy and governance in some countries contrasting with little or no progress in others. Market access regulations and public procurement policies have helped to encourage more responsible business practices. Increased transparency and participation in policymaking have contributed to improved management and oversight of the sector in many countries. Despite improvements in governance, in many instances policy and institutional reforms have been poorly implemented. This can be attributed to weak institutions, entrenched corruption and absence of political will, the latter often due to a mismatch between local and international priorities. Illegal practices remain widespread, contributing to high rates of deforestation and undermining rural livelihoods as well as ecological integrity and resilience. Both governments and rights holders are losing out on economic benefits, and artisanal, small-scale producers and enterprises are not accruing the potential benefits from international markets. Efforts must be redoubled to bring about further reform of both the forest sector and other land-use sectors. Priorities include increased support for enhancing transparency and participation, and for strengthening institutional capacity at both the subnational and national levels. Equitable and inclusive cross-sectoral processes are needed to identify ways to transition to sustainable land use, while the role of national experts in monitoring reform efforts needs to be strengthened.