Restoration
Plantations and tree crop commodities
Enhanced nutrition and food security
Biodiversity, safeguarding and conservation
Nationally determined contributions
Bioenergy and biomaterials
Blue carbon and peatlands
Climate change adaptation
Landscape governance
Gender
Silvopastoral systems
Market-based agroforestry-forestry
Farm-forest policy interface
Agroecology
Livelihood trajectory modelling and assessment
Inclusive finance and business models
Innovating finance for sustainable landscapes
Public and private commitments to zero deforestation
Orphan tree crops
Effectiveness of approaches to sustainable supply
Quality of FTA research for development
Sentinel landscapes
Foresight
Seeds and seedlings delivery systems
Smallholder tree-crop commodities
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The world’s leading organizations on forestry and agroforestry, the Center for International Forestry Research (CIFOR) and World Agroforestry (ICRAF), merged on Jan. 1, 2019, in order to leverage their combined 65 years of research and experience. Directors General Robert Nasi and Tony Simons recently sat down to talk about why the two organizations were merging. They also discussed tackling food security and sustainable landscapes.
Originally published by CIFOR.
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The tamanu tree (Calophyllum inophyllum) has been helping humans out since prehistoric times.
Tamanu is native to tropical Asia, and was carried by Austronesians on their migrations to Oceania and Madagascar: the tree was as valuable to these voyagers as oak was to their European counterparts. Also known as mastwood, tamanu has been used by shipbuilders for millennia because it grows tall and strong in sandy, rocky areas.
In Polynesia, indigenous groups affectionately refer to the tamanu tree as “beauty leaf,” as they use the oil from the fruit kernel as a moisturiser and healing balm. They also use it as a hair grease and painkiller. These days, tamanu oil is used internationally in a range of skin and hair-care products.
Now, the fragrant, deep brown oil may serve another purpose: bioenergy. A mature tamanu grove can yield up to 20 tons of crude oil per hectare each year. In Wonogiri district of Central Java, Indonesia, a new study shows that cultivating tamanu for bioenergy on degraded land can achieve multiple benefits for farmers while restoring the land, as well as helping to reduce the country’s reliance on fossil fuels.
Beyond oil palm
Indonesia has pledged to increase its biodiesel and bioethanol consumption to 30 percent and 20 percent respectively, of total energy consumption by 2025. However current levels of biofuel production are far from meeting these targets, and boosting production at the scale required comes with its own environmental challenges.
So far, almost all of the biofuel produced in the country has come from oil palm. But land conversion from food cropping to oil palm for biodiesel has an impact on food security. In many cases oil palm plantations have encroached upon rainforests and peatlands, threatening biodiversity and releasing carbon into the atmosphere.
This is why researchers have begun exploring alternative bioenergy options, looking at species with multiple uses that can grow on degraded land on which other crops struggle. A recent study showed that there are around 3.5 million hectares of degraded land across Indonesia that would be suitable for growing at least one of five key biodiesel and biomass species, including tamanu. As well as bioenergy, these crops are capable of improving soil function and boosting biodiversity, thus playing an important role in restoring the land.
Infographic: Nyamplung (Calophyllum inophyllum): Alternative bioenergy crop and powerful ally for land restoration
Farmers hit the honeypot
Planting trees on degraded lands is difficult, and the returns are slow. Farmers need other sources of income, too, if tamanu cultivation for biofuel is to be sustainable.
In Wonogiri, scientists from the Center for International Forestry Research (CIFOR), whose work is part of the CGIAR Research Program on Forests, Trees and Agroforestry (FTA), together with the Center for Forest Biotechnology and Tree Improvement Research and Development (CFBTI) and the Korean National Institute of Forest Science (NIFOS) sought to find out if the figures add up in the farmers’ favor.
They collected data from 20 farmers who grow tamanu on degraded land (which locals call nyamplung). The farmers intercrop the tree with maize, rice and peanuts, and make use of it in honey production.
The researchers found that while the rice and peanuts were not profitable, and the maize was only marginally so, farmers grew them anyway to feed their families. The big money, however, lay in honey production, which was almost 300 times more profitable than maize, said CIFOR scientist Syed Rahman. “We were all surprised to see just how profitable it was,” he added.
The results suggest that tamanu can be grown sustainably as part of an agroforestry system that also utilises honey production and subsistence crops in the area. What is needed now, says CFBTI senior scientist and professor Budi Leksono, is for the market for biofuels to be developed further to create economies of scale.
“The market for nyamplung oil is not really developed yet,” said Leksono. “But we’re anticipating an energy crisis, and [by doing this work now] we are preparing for the plantations of the future.”
However, the policy around this needs to be designed extremely carefully, cautioned Rahman. “Because it’s potentially so profitable,” he explained, “the risk is that people will expand this system to forestland, too.” He added that careful constraints must be applied to ensure it is cultivated only on degraded and underutilized lands.
The implications are exciting. As CIFOR senior scientist Himlal Baral noted, while national and global interests and commitments for forest landscape restoration are increasing, success so far has been limited by a lack of solid business cases or financial viability. “In order for funding to flow into landscape restoration, it needs to be profitable,” he said.
Tamanu-based systems may well offer a compelling case for restoration that is worth everybody’s while.
By Monica Evans, originally published at CIFOR’s Forests News.
This research forms part of the CGIAR Research Program on Forests, Trees and Agroforestry, which is supported by the CGIAR Trust Fund.
This research was supported by the CIFOR Bioenergy project funded by NIFoS (National Institute of Forest Science, South Korea).
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Developing the rubber sector while meeting environment and social objectives involves both challenges and opportunities.
Lying in the shadow of oil palm in terms of sustainable development issues, the sector needs a combination of measures to progress toward sustainable development. There is now a wealth of knowledge and evidence to make this happen.
“Evolution to Revolution: New Paths for the Rubber Economy” was the theme of the World Rubber Summit held in Singapore on March 18-19, 2019, organized by the International Rubber Study Group (IRSG). The CGIAR Research Program on Forests, Trees and Agroforestry (FTA) participated in the summit and I presented during a session titled Managing sustainability performances in the rubber value chain.
Plantations of all major tropical commodities – especially oil palm, timber, pulp, cocoa and rubber – are expanding quickly, creating opportunities for development while also raising concerns about impacts on the environment, landscapes and livelihoods.
FTA has identified plantations as a research priority. Rubber is a particularly interesting example; plantations are continually expanding with a very concentrated sector downstream (the majority being a small number of tire producers), and a production sector heavily dominated by smallholders.
Read also: Challenges and opportunities for sustainable rubber in Myanmar
Rubber at a crossroads
The sector is confronted with a range of issues when it comes to its impact on and contribution to sustainable development.
Land-use change: Rubber is the most rapidly expanding tree crop within mainland Southeast Asia. Additional land will be required to meet future rubber demand, which could be in forested areas or on mosaic landscapes, swidden agriculture and agroforest, though there is also potential to reduce land-use change and deforestation through more intensive systems – both in terms of rubber and other associated production depending on situations.
Biodiversity: In many areas rubber expansion has been on former natural forest, including sometimes in protected areas. The effects of converting primary and secondary forests to rubber monoculture are well understood – it decreases species richness and changes species composition. However, the biodiversity value of swidden agriculture and of mosaic landscapes is less well known and the effects of their conversion to rubber plantations has been assessed in less detail.
Climate change mitigation: The potential contribution of rubber to climate change mitigation depends on what it replaces and the way it is conducted. The impact is generally negative when rubber replaces primary or secondary forests, but positive when planted on very degraded land. The impact can be neutral or slightly positive when rubber replaces swidden systems with a short fallow period, but negative when it displaces swidden systems that will then encroach on forest.
Water and erosion: Effects again depend on what rubber replaces. For instance, there can be less fog interception relative to complex canopies. Conversion to rubber can increase evapotranspiration relative to native vegetation. Rubber risks depleting deep-soil moisture during the dry season with effects on groundwater and streamflow. In mountainous areas of mainland Southeast Asia, plantations on steep slopes have negative impacts on soil erosion, landslide risk and water quality. There are also indications of impacts from rubber plantation runoff on water quality and aquatic biodiversity.
Social issues: Production is still dominated by smallholders in most countries, especially in “traditional” production areas. The establishment of rubber replacing swidden agriculture has substantially increased smallholder income in Southwest China and Northern Thailand. In non-traditional areas, such as Laos, Cambodia, Myanmar and some African countries, the expansion of rubber often takes the form of larger-scale plantations – which could disadvantage rural communities, with some reports of evictions and of poor labor conditions in large-scale plantations.
Resilience to price fluctuations: Rubber prices can be volatile, which is a concern for long-term investment and has consequences for the sustainability of economic and production models. Smallholders who are purely engaged in rubber are very exposed, especially if they are not supported by public policies. Smallholders with diversified systems are the most resilient. Paradoxically, large estates may be more exposed due to monoculture and having to pay a workforce.
Climate change adaptation: Until recently it was difficult to predict the incidence of climate change on violent precipitation and winds, to which plantations are vulnerable. There is also a need for more research on the impacts of climate change on the distribution of pests and diseases. Diversified systems are more resilient to shocks of any kind, including from climate change, and can contribute to adaptation at a landscape level.
Read also: Challenges and opportunities for sustainable rubber in the Lao People’s Democratic Republic
Ways forward
Given these challenges, the potential impacts of rubber expansion and the contribution to the Sustainable Development Goals and the Paris Agreement ultimately depend on three factors. First is where expansion occurs, and the land use or land cover that rubber replaces. Second, it involves production systems, yield and overall efficiency, including the use of rubber wood, as well as impacts on water and biodiversity. The third factor is benefits for smallholders and local populations, contributing to economic and social resilience.
A range of objectives could pave the way forward for sustainable development.
To meet these objectives, it would be necessary to see a combination of measures.
The rubber sector needs measures connecting downstream with upstream, involving various stakeholders, building on science and knowledge and promoting transfer in a practical way. The newly launched Global Platform for Sustainable Natural Rubber (GPSNR) will hopefully address this.
Knowledge and evidence could enable the transition in a proactive way, contributing to sustainable development outcomes. FTA stands ready to work with the GPSNR and to help support the sector move toward sustainable development, “from evolution to revolution”.
By Vincent Gitz, FTA Director
The CGIAR Research Program on Forests, Trees and Agroforestry (FTA) is supported by contributors to the CGIAR Trust Fund.
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Scientists in Indonesia are demonstrating how better business opportunities for local communities can help foster and reinforce sustainable forest management.
As the world marks International Day of Forests on March 21, the benefits of reforestation and forest restoration are rightly lauded. In success stories of the past, local communities have often been cast as the heroes of sustainable forestry, while private sector businesses have been portrayed as villains. But what if that’s not the whole story?
The Kanoppi project, which launched in 2013 and has now entered its second phase, concentrates on the expansion of market-based agroforestry and the development of integrated landscape management in the poorest provinces of eastern Indonesia and the country’s most densely-populated island of Java.
The project, which is part of the CGIAR Research Program on Forests, Trees and Agroforestry (FTA), is funded by the Australian Centre for International Agricultural Research (ACIAR) and led by scientists from the World Agroforestry (ICRAF), Center for International Forestry Research (CIFOR), the Research, Development and Innovation Agency (FOERDIA) of the Indonesian Ministry of Environment and Forestry and Murdoch University in collaboration with other project partners.
Read also: New children’s book teaches the sustainable traditions of West Timorese honey hunters
Missing link
For many generations, communities living in Indonesia have relied on forests to supplement the food and income they reap from farming. Yet, despite the riches of the forests, poverty is still widespread. Some rural households living in the Kanoppi project’s pilot sites in eastern Indonesia earn around US$210 a year.
Part of the challenge is a lack of integration and linkages between community groups producing timber and non-timber forest products (NTFP) and the private sector. Conflicting, confusing and changeable public policies also do not help.
“For example, some communities will plant small teak plantations as a kind of savings account, but most don’t know how to get the permits required to harvest and transport the timber,” explained Ani Adiwinata Nawir, policy scientist with CIFOR. “This means that communities do not harvest as much teak as they could and that they can’t convert their timber into cash when needed.”
Strengthening value chains has become a key focus for Kanoppi, so that farmers can capture more value from their agroforestry production. This, however, requires sustained efforts at multiple levels, including promoting better practices on the ground to increase productivity and profitability, developing markets and private sector engagement, and facilitating supportive policies and institutions.
Protecting the forest
One example of how to turn traditional community practices into a successful business venture comes from the Mount Mutis Nature Reserve in West Timor. Here, communities come together every year to harvest wild forest honey. The task is dangerous – men scale trees of up to 80 meters to collect the honey by hand – but it is also sustainable because it does not require cutting down trees.
The honey supplements local diets, and there is enough left over to sell. In fact, as much as 30 tons of wild honey is produced and harvested in Mt. Mutis annually, accounting for 25 percent of total production in the province. Working collaboratively with WWF Indonesia – which is one of the project’s NGO partners along with others like Threads of Life – Kanoppi has helped brand and package the honey, which is now sold as “Mt. Mutis honey” and sold to neighboring islands.
Similarly on Sumbawa island, this commercial success is good news for communities and for the forest: Because the continued honey production hinges on a healthy ecosystem, people have a strong economic incentive to preserve and protect the forest.
That’s the underlying logic of the whole project. When communities can successfully market and sell sustainable products, their incentive to continue sustainable forestry practices grows, which in turn increases productivity, profitability and incomes.
“We want to reinforce this virtuous cycle where business opportunities foster sustainable forestry,” said Aulia Perdana, a marketing specialist with ICRAF. “That’s why we try to involve the private sector – for example in the village learning centers we’ve established in project sites – so that communities can better connect with the market.”
Other efforts to promote sustainable and profitable agroforestry production include using voluntary extensionists, meaning that the people who first adopt a new technology help spread those innovations to other members of the community. Eleven on-farm demonstration trials have already been established, and 40 more are planned for 2019. Kanoppi has also published manuals, journal articles, videos and a picture book to promote its methodology.
Read the picture book: Secrets of the Mutis Honey Hunters
Landscape perspective
Given the project’s success with marketing the sustainably produced honey from Mt. Mutis, the local district administration has adapted its strategy on integrated landscape-level management of NTFP to give greater weight to communities’ customary practices. This is an important first step toward establishing policy support elsewhere in the country.
One challenge has been that past planning and policies have separately focused on different sectors, such as small farms in forestry and target-oriented cash crop production led by other sectors – not considering opportunities for synergies or problematic overlaps. Kanoppi has departed from that approach.
“We talk about integrated landscape management, which essentially is about harmonizing the different land uses along the watershed from upstream to downstream, so that farms, plantations, forests and many other kinds of activities coexist and reinforce each other,” said Ani.
“The landscape perspective helps everyone – communities, businesses and authorities – see what kind of production fits where in the landscape, in ways that are both profitable and sustainable.”
Kanoppi is a clear example of how combining the expertise and experience of CIFOR and ICRAF scientists makes for a strong response to development and sustainability challenges in forested landscapes – among the many reasons why the two institutions recently announced a merger.
In Indonesia, Ani, Perdana and their colleagues will continue their work to develop inclusive, sustainable business models that generate a fair return – specifically focusing on scaling-up the adoption of improved production practices and value chains to benefit smallholder livelihoods through landscape-scale management of the farm-forest interface – for communities and for forests.
By Marianne Gadeberg, communications specialist.
This research is part of the CGIAR Research Program on Forests, Trees and Agroforestry (FTA). FTA is the world’s largest research for development program to enhance the role of forests, trees and agroforestry in sustainable development and food security and to address climate change. CIFOR leads FTA in partnership with Bioversity International, CATIE, CIRAD, INBAR, ICRAF and TBI. FTA’s work is supported by the CGIAR Trust Fund.
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Growing bioenergy crops on degraded and underutilized land is a promising solution to meet the requirement for energy security, food security, and land restoration. This paper assesses the socioeconomic and environmental benefits of agroforestry systems based on nyamplung (tamanu) (Calophyllum inophyllum L.) in the Wonogiri district of Central Java, Indonesia. Data were collected through field observations and focus group discussions involving 20 farmers who intercrop nyamplung with maize, rice, and peanuts and utilize the species in honey production. Calculating each crop’s net present value (NPV) demonstrates that when grown as monocultures, staple crops rice and peanuts lead to negative profitability, while maize generates only a marginal profit; yet honey production utilizing nyamplung produces a NPV nearly 300 times greater than maize. However, when utilizing nyamplung, honey is also the commodity most sensitive to decreases in production, followed by nyamplung peanut and nyamplung rice combinations. While decreases in production have little effect on the NPVs of rice, peanuts, and maize, these annual crops can only be cultivated for a maximum of 6 years within the nyamplung’s 35-year cycle, due to canopy closure after this time. Nyamplung-based agroforestry systems can provide economic, social, and environmental gains on different scales. However, when considering the high profit potential of nyamplung combined with honey production, further research is needed to improve and develop bee husbandry practices so this becomes a viable option for local farmers.
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Impact investors typically finance businesses that seek to challenge the status quo, valuing environmental and social outcomes to deliver more sustainable returns on investment. Microfinance institutions such as Grameen and FINCA lead the way in financing poor and marginalized groups. Now, however, increasing attention is being given to help investors respect land rights and form equitable partnerships with communities living in rural areas. Communities are increasingly being given rights to manage the world¹s remaining common pool resources (CPR) – such as forests, pastures and fisheries – as common property. As such, investors interested in accessing and developing these resources have the opportunity to work with a new investment partner, the community user group (CUG). This guide is designed to help investors better understand the challenges and opportunities of investing in resources managed collectively by a community – where the community is the principal investment partner! In this guide we draw on examples and lessons learned from four case-study countries considered to have the most successful arrangements for collectively managing natural resources. The case countries are Guatemala, Mexico and Nepal, which have devolved forest rights to communities, and Namibia, which has devolved wildlife rights.
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In an ideal world, palm oil production would cause no deforestation, and have a transparent and fair supply chain. In reality, the impacts of the sector have been the cause of ethical concerns worldwide.
Palm oil is Indonesia’s most important commodity. In 2017 the country produced 37.8 million tonnes of crude palm oil (CPO) and exported over 80 percent of it, with a value of $31.8 billion. Indonesia is the world’s biggest palm oil producer, and its biggest exporter too.
The strong market demand of palm oil has led to a vast expansion of plantations. Currently smallholders make up around 40 percent of the production market, and around one-third of these do not have the correct land tenure permits. In some cases, the smallholders have moved into state-owned forest areas and in many cases, this occupancy creates conflict.
In 2017, the Ministry of Agriculture’s Directorate General of Plantations found that of the 2.5 million hectares of oil palm plantations on state-owned forests, 70 percent of these were controlled by smallholders.
To get to the bottom of why oil palm plantations continue to encroach into state forest areas, Center for International Forestry Research (CIFOR) organized a workshop in collaboration with Center for Research and Development on Social, Economics, Policy and Climate Change (P3SEPKI): ‘Linking science to policy: the role of research in the effort to accelerate solution of tenurial problems in oil palm plantation in forest areas.’
Solving conflicts by understanding the underlying cause
In his presentation, Ismatul Hakim, senior researcher at P3SEPKI, says that complex tenure conflicts can’t be resolved without understanding why oil palm plantations are encroaching into state forest areas. He believes assessing how different types of farmers take control of lands, what strategies they use, and most importantly, the motivations of the farmers, is needed before long-lasting resolution is achieved.
According to Hakim’s research, this can be segregated into four categories:
The first is maladministration, where a lack of coordination leads to disputes as it is unclear who legally manages the forest areas – is it the Ministry of Environment and Forestry or the local government?
Second, incomplete forest area gazettements- a legal declaration that announces state ownership- coupled with a lack of clarity and communication on where the gazetted boundaries lay, have caused local people, in need for income, to expand their plantations into unmarked forest areas.
Third, inequality of power and land ownership has caused people to encroach. Local people have watched big investors and corporations take control of and transform their ancestral land, and store land for the future (known as ‘landbanking’).
And finally, the ineffective implementation of policies for forest area release and land swap- where the government gives areas of new land to plantations in exchange for restoring degraded land. To add, he says, this is further hampered by the slow pace of conflict resolution.
Drawing from his research, Bayu Eka Yulian from Bogor Agricultural University (IPB) added “Oil palm plantations have expanded rapidly in East Kalimantan, particularly those smallholders in a silence mode.” He argued while corporations might generally adhere to tighter regulations, small holder farmers, including those with access to more capital and information, appear to expand their plantations at a scale from 0.5 to 3 hectares of land or even more, without restraint.
The attendees agreed that the situation will keep perpetuating itself without intervention. Rapid expansion is causing damaging changes to the landscape, but farmers are also becoming trapped- as they become highly dependent on a monoculture crop, and get trapped on a single source of income.
Read also: The long and winding road to sustainable palm oil
Solving tenure issues through better governance
In September 2018, the Indonesian government issued a three-year moratorium on new oil palm plantation permits and devised attempts to increase productivity, expressed in Presidential Instruction (Inpres) No. 8/2018. Along with other prevailing policies, this moratorium offers an excellent opportunity to resolve tenure issues.
However, it was feared that the temporary halt might simply not be enough.
“It was generally agreed by the workshop participants that regulations should be clear and not create legal uncertainties,” said CIFOR scientist Heru Komarudin, adding that plantations that are currently operating on state forests should be given enough time to either relocate or have their land status legally changed to non-forest areas.
He similarly believes that smallholder plantations already illegally on state forests should be given the chance to confirm their land status through agrarian reform or social forestry schemes that are already in place.
“Priority should be given to those committed to practising ethical agriculture – by preventing further deforestation and promoting fair trade working rights,” said Komarudin. To create policies that work, the “heterogeneous typology” of smallholders, and the impact of plantations on local people need to be taken into account, he adds.
Furthermore, there is opportunity to raise state funds by getting tenure issues right. Legislating and governing the use and rental of state forest can then be further propped up by compensation payments by companies who have illegally encroached. While strict law enforcement could be used to police the tenure issues, granting land amnesty to those that depend heavily on these lands may be a breakthrough.
Internationally, the European Union Renewable Energy Directive which plans to phase out the use of palm oil for biofuel by 2030, has put pressure on the Indonesian palm producers. In responding to this development, workshop attendees agreed that foreign diplomacy should be strengthened by consolidating the national position, which in turn would make the Indonesian Sustainable Palm Oil (ISPO) certification credible.
“Building solidarity with other producing countries to promote best practices and a sustainable and legal palm oil industry is essential,” says Maharani Hapsari, PhD and lecturer of international relations at Gadjah Mada University. “Indonesia should focus its diplomacy on palm oil global trade not only to strengthen authority, but also to enhance legitimacy of forest and oil palm governance by the broadest possible range of stakeholders.”
By Nabiha Shahab and Dominique Lyons, originally published at CIFOR’s Forests News.
For more information on this topic, please contact Heru Komarudin at h.komarudin@cgiar.org.
This research forms part of the CGIAR Research Program on Forests, Trees and Agroforestry (FTA), which is supported by the CGIAR Trust Fund.
This research is part of the Governing Oil Palm Landscapes for Sustainability (GOLS) project, which is supported by the United States Agency for International Development (USAID). The GOLS project supports effective and equitable implementation of the New York Declaration on Forests commitments by helping to align public and private policies and actions, and by delivering targeted, research-based evidence to key stakeholders and practitioners.
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Issue 50 of Perspective, the CIRAD policy brief series, looks at the credibility of the Forest Stewardship Council (FSC) standard that will be increased if certain indicators and auditing practices are reviewed. This revision process will facilitate the work of the certification bodies and will clarify the adoption of practices by certified forestry companies.
The global organisation FSC International regulates the FSC forest management label, which is translated into national standards according to the context in each country. The initial version of the Principles and Criteria for this label, published in 1994, was revised and, in 2015, new Principles and Criteria were published, along with a list of generic indicators. This new version should be used to update national standards. This issue of Perspective proposes recommendations for drafting these new national standards and reviewing certain audit procedures. The study’s recommendations are illustrated with specific cases in Brazil, Indonesia and the countries of the Congo Basin. Indicators for the new national standards need to minimise any scope for interpretation during certification audits. Audits should no longer accept recurrence of the same non-conformities, even when these issues are minor. With Gabon announcing in September 2018 the obligation to obtain FSC certification in order to allocate or maintain forest concessions from 2020 onwards, it is important to reduce existing weaknesses in this certification.
Access this publication in English.
Access this publication in French.
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As part of the “Innovative finance for sustainable landscapes” interview series, the International Institute for Environment and Development’s (IIED) Forest Team Leader Duncan Macqueen spoke with Tropenbos International’s Nick Pasiecznik on increasing finance and investment in sustainable forestry and farming for smallholders.
“The challenge is to build strong producer organizations and change the perceptions of risk, return and transaction costs,” Macqueen said. This highlights direct support for strengthening membership, management and business as a strategy to develop bankable businesses with investment returns that are attractive to potential financiers. This will, in turn, improve livelihoods and provide an incentive for sustainable forest management.
Among Macqueen’s most recent publications is Access to finance for forest and farm producer organisations (FFPOs).
How do you define ‘inclusive finance’ and why is it important?
Inclusive finance ensures that local forest and farm producers are collectively involved in generating incomes, saving and making investments that improve their livelihoods. Importantly, it is not primarily about individuals, but about producer organizations that include women, landless people and ethnic minorities.
In developing countries, microfinance is rarely at a scale that can lift people out of poverty. Microfinance does, however, help to build individual capacities to understand and manage larger finance. To be transformative for forests and livelihoods, producers must be organized. Producer organizations are essential. They increase the economic scale and technological efficiency of transactions, and the credibility with which investments to upgrade transactions can be managed.
International finance rarely reaches forest and farm producers because financial institutions perceive the risk-to-return ratios and transaction costs to be too high. The challenge is to build strong producer organizations and change the perceptions of all involved.
What are the underlying reasons for the underfinancing of locally controlled agricultural and forest business?
Underfinancing comes down to a lack of a well-directed ‘enabling investment’, i.e. financial support that does not require a financial return. For small businesses to attract ‘asset investment’ which does require a financial return, enabling investments must secure tenure, develop technical production skills, enhance market access and business know-how, and strengthen producer organizations. Building up these four areas makes such businesses ‘bankable’.
There is also a finance gap between micro-finance and large-scale finance. Microfinance is often available. The sums are small, the periods short, the returns fairly predictable (with a high ratio of working-to-fixed capital), and interest rates can be raised to cover high transaction costs. But microfinance rarely stretches to mid-level investments allowing growth. Large-scale finance is also available, but commercial banks rarely address the small needs of producer organizations because of perceptions on returns, risks and costs.
Read more: Background note on FTA financial innovations for sustainable landscapes interviews
What are we not doing right, or not doing well enough, or not doing at all?
Producer organizations must be strengthened. This includes the leadership, management structure and staff skills required to manage savings transparently. Local producers need to organize safe ways of managing savings. Whether to invest in better technology or to repay loans for investment – saving is the key common need. Once saving patterns are established, producer organizations can build up capital, to invest, use as collateral, or to offer financial services for members.
Better forest business incubation is needed to build financial management capacities within organizations that are inclusive of marginal groups. This is already routine in business incubation, but many for-profit services struggle to cover costs in remote forest landscapes. Unless donors can subsidize such costs, their reach is unlikely to extend beyond urban centers. A more innovative solution is to develop business incubation services within umbrella (or ‘apex-level’) producer organizations to aggregate, process and market products and services from their members.
More financial de-risking is required for external investors. There are five immediate priorities: link producer groups with conventional finance through face-to-face meetings or social media technologies; form partnerships to develop loan appraisals for proposals to banks; find ways of developing collateral acceptable to banks (such as standing tree volume); offer guarantees based on social and environmental commitments to offset perceptions of risk; and help banks redesign financial products to meet producers’ capabilities.
How is your organization addressing inclusive finance, and what are your experiences and key lessons?
IIED is shaping more inclusive finance within its entire program. Its Natural Resources Group has helped FAO, IUCN and Agricord design a financing mechanism to support producer organizations through the Forest and Farm Facility (FFF). The first phase included 947 producer groups across 10 countries, with 262 businesses helped to add value or diversify products, and 158 examples of new access to finance.
Direct grants to producer organizations require gender equality and inclusion in membership, leadership and representation. Support includes market analysis and development training, learning exchanges, business fairs and trade shows, links to policy platforms, direct brokering of finance with value chain partners and banks, toolkits for risk management and forest business incubation.
FFF is also now reviewing how to improve access to finance and install forest business incubation capacity into apex-level organizations. We have learnt that direct support for strengthening membership, management and business is highly effective. Bankable businesses emerge with investment returns that are attractive to potential financiers, improving livelihoods and providing an incentive for sustainable forest management. This also creates a pipeline for investible businesses for financiers that will attract future investment. A focus on grants, concessional loans or patient equity for locally controlled forest cooperatives results in inclusive cooperatives, but a focus on debt finance for large corporates leads only to local people being treated as cheap labor.
Read also: Making landscape finance more inclusive
What examples do you have of successful or promising ‘model’ approaches or innovations?
Promising innovations come less from inclusive access to finance, but from inclusive distribution of finance. This is a question of business model design, often found in businesses with democratic decision-making where members who live with the consequences of their business decisions, balance economic, social and environmental trade-offs.
An IIED-led analysis of 50 case studies of democratic business models from 24 countries showed six clear innovations. Democratic oversight bodies governing environmental and cultural stewardship improve the natural environment. Negotiated benefit distribution and financial vigilance mechanisms improve material wealth. Networked links to markets and decision-making improve social connectedness. Processes for conflict resolution and justice improve peace and security. Processes of entrepreneurial training and empowerment for both men and women improve human capacity development. Branding that reinforces local visions of prosperity improves a sense of community purpose.
In Nicaragua for example, FFF-mediated finance for the Mayaring women’s cooperative led to the development of 15 new productss using ‘tuno’ (Castilla tunu) bark cloth for vegetables. This led to a 35 percent rise in household incomes and a forest landscape restoration project using the species.
What is your vision on how best to increase finance and investment in sustainable forestry and farming?
My vision is to tailor different financing approaches to different producer organization types. For example, finance could be directed to indigenous peoples’ organizations in natural forests for territorial delimitation and protection; community forest organizations at the forest edge for making sustainable forest management work in collectively controlled natural forests; forest and farm businesses in planted forest ‘mosaics’ for improved social organization alongside asset investments in production; and peri-urban and urban forest product-processing businesses to increase productivity. Financing could be primarily grant finance to indigenous peoples, grants and blended/concessional finance for community forest enterprises, a mix of leasing, trade chain finance and commercial debt finance and guarantees for producer organizations, and more conventional debt finance for peri-urban groups There is no simple rule – everything depends on the circumstances of the group.
Catalyzing multitiered organizations is part of this vision. This includes first-tier local producer organizations selling products and services; second-tier regional organizations aggregating products, adding value through processing, marketing and providing business incubation services to members; and third-tier national federations lobbying governments for more enabling policies. Evidence suggests that strengthening producer organizations is effective in poverty reduction, and improving governance, forest landscape restoration and delivery of the Sustainable Development Goals.
By Nick Pasiecznik, Tropenbos International.
This interview has also been published on the Tropenbos International website.
Duncan Macqueen is a principal researcher in IIED’s Natural Resources Group. IIED is a “policy and action research organization promoting sustainable development and linking local priorities to global challenges”. His research focuses on the success factors for locally controlled forest enterprises, and he has published widely on the subject. We invited Duncan to express his views on inclusive finance, based on his 25 years of experience of working with smallholder groups and communities to strengthen their capacities to run forest-based businesses and access markets and finance. He and his team have worked closely with FAO and the World Bank, among others. His publications include Prioritising Support for Locally Controlled Forest Enterprises and Financing forest-related enterprises: Lessons from the Forest Investment Program: IIED Briefing.
This article was produced by Tropenbos International and the Center for International Forestry Research (CIFOR) as part of the CGIAR Research Program on Forests, Trees and Agroforestry (FTA). FTA is the world’s largest research for development program to enhance the role of forests, trees and agroforestry in sustainable development and food security and to address climate change. CIFOR leads FTA in partnership with Bioversity International, CATIE, CIRAD, INBAR, ICRAF and TBI. FTA’s work is supported by the CGIAR Trust Fund.
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In answer to the question “What types of financial innovations can stimulate private and public investments in projects that contribute to more sustainable landscapes, yet are also inclusive of the rural poor?”, the CGIAR Research Program on Forests, Trees and Agroforestry (FTA), Tropenbos International (TBI) and the Center for International Forestry Research (CIFOR) have undertaken three complementary research activities: (1) a systematic review of relevant literature; (2) case study analyses of innovative finance deployment and the resultant landscape-level impacts; and (3) key informant interviews with experts from a wide range of stakeholder groups, ranging from financial service providers to finance beneficiaries and enablers, all involved in international financial flows.
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Not all farmers are able to adopt or benefit from landscape restoration practices equally. A research initiative highlights how inclusive initiatives have the potential to improve both the environment and the lives of women and their communities.
Gender disparity in landscape restoration
Amid degradation of their natural resources, farmers in Burkina Faso’s Oubritenga province, in the country’s central Plateau, are adopting various practices to restore their lands. Landscape restoration enhances soil fertility and facilitates the establishment of trees that can provide benefits for human well-being as well as the environment.
The techniques include the creation of stone barriers to slow water flow and prevent runoff, agroforestry techniques, assisted natural regeneration of valued trees in fields, and the creation of small zaï pits to retain water and soil nutrients for crop growth. The problem is that not all farmers are able to adopt or benefit from these practices equally.
New research conducted by Master’s students from the University of Ouagadougou cosupervised by Bioversity International and other partners from Burkina Faso considers the various barriers women face in restoring their lands and landscapes to support their equitable participation in restoration initiatives for the benefit of the entire community.
Entrenched gender norms make it difficult for women to obtain the same opportunities as men to implement restoration practices. Gender plays an important role in determining who does what, who makes decisions, and who has access to resources and other assets, including benefits from restoration initiatives. Gender, however, is not the sole factor that determines who will implement and potentially benefit from landscape restoration practices. Whether a woman is married, where her husband resides, whether her husband has allocated her plots that are large enough to adopt agroforestry practices, and even whether the woman has adult male children can all greatly influence the probability of a woman implementing restoration practices and gaining some of the benefits.
In the study sites, farmers need to vouch for each other and women tend not to be considered eligible participants. Yet, not all women face the same exclusions. Women farmers who have a male head present in their household may be considered eligible, and can obtain access to material and financial resources, as well as training to apply restoration practices. This means that, unless they have an adult son, widows and wives of migrated husbands are particularly disadvantaged.
Read more: Gender at the center of Bioversity International’s research
Inclusive initiatives go beyond trees
By studying the approach of Association Tiipaalga – an NGO that has been supporting restoration in the country since 2006 – Master’s students from the University of Ouagadougou are identifying good practices from restoration initiatives trying to promote gender equality. The NGO is working to secure access to land for women’s self-help groups, composed primarily of widows and young women. It is helping these groups fence off their land to promote natural regeneration and plant certain species of trees and crops that can offer the women income-generating opportunities.
Moreover, it is organizing exposure visits for women and men farmers to visit villages in other parts of the country where restoration practices are being implemented, allowing farmers to learn from each other. The initiative is also supporting women in building improved cookstoves that require less fuelwood – saving women’s time collecting the fuelwood and reducing forest degradation – and to access microcredit to pursue income-generating activities such as trade, horticulture, and processing of non-timber forest products. Most importantly, collectively having access to land is enabling women to strengthen their social ties, cultivate vegetables and increase their incomes.
In addition to material gains, women have also built greater confidence and have become more vocal when it comes to accessing or managing natural resources in their village. During village meetings, for example, they are stating their opinions, and may even express ideas that contradict those of the men – which was something unheard of in the past. Women are also reporting having a greater say within their household on what to grow and what agricultural techniques to adopt in their fields as a result of their participation in restoration initiatives. Moreover, the provision of tools and equipment has freed up some of the energy and time, which the women can now invest in activities that foster their personal development. Many have chosen to learn to read, others are learning about family planning, sanitation and keeping their households healthy.
As one of the participants, Ms Kabore Minata puts it, “Thanks to these efforts, we women were able to have land, even if only on loan, and tools to cultivate crops. Were it not for these interventions, this would be only a dream because [as a woman having married into this village] I am considered a stranger here. Aside from a small parcel of land for growing condiments, what else could a woman like me have had otherwise?”
This article was originally published by Bioversity International.
The University of Ouagadougou, Association Tiipaalga, and Burkina Faso’s National Tree Seed Center partnered with Bioversity International on this initiative.
This research was carried out by Adidjata Ouédraogo and Safietou Tiendrebeogo, Master’s students at Université de Ouagadougou, in the context of the project ‘Nutrition‐sensitive forest restoration to enhance adaptive capacity of rural communities in Burkina Faso’, led by Bioversity International. This research component has also received the support of Association Tiipaalga and the Centre National de Semences Forestières. The project is funded by the Austrian Development Agency.
This resesarch was conducted as part of the CGIAR Research Program on Forests, Trees and Agroforestry, and is supported by contributors to the CGIAR Trust Fund.
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A community forestry approach was adopted by Cameroon as a strategy to promote the sustainable management of forests, participation by local communities in forest management, and poverty alleviation. However, results have been moderate and community forestry has largely failed in achieving its initial goals. Our work, based on existing literature, uses the three inter-related dimensions of equity: distributive, procedural, and contextual to highlight the main equity challenges encountered in implementing the community forestry approach over the past 20 years in Cameroon. The main constraints to distributive equity identified include: the absence of clear benefit-sharing mechanisms and rents capture by elites, insecure tenure, and limited use rights of forest resources. Regarding the procedural dimension, we observed an exclusion of vulnerable groups, especially women, and a lack of information flow and transparency in decision-making processes. Finally, for contextual equity, the main constraints are unfair laws and regulations that give more advantages to the state and logging companies than to the local population. Moreover, poor community capacities and high transaction costs in the process of obtaining and exploiting community forests are additional constraints to contextual equity. The authors recommend a few measures to improve community forestry contribution to socioeconomic development, equity in benefit sharing, and sustainable management of forest resources. These include the need: (1) to promote transparency in community forests management with fair and gender-based policies that consider socioeconomic differences existing within and between forest communities; (2) to strengthen local community members financial and technical capacities and increase their representation and participation in decision-making structures; and (3) to set up mechanisms that guarantee existing policies are fully implemented.
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African community leaders know that women play essential roles in restoring land and forests, even though it is not always easy for them to contribute.
However, do high-level decision makers grasp the unrealized potential of women’s leadership? Taking cues from grassroots experiences can help regional restoration initiatives improve their chances of success.
Late last year, African community leaders put together a manifesto that underscores how important communities are for successful restoration. It also provides cues on how to accelerate restoration in Africa, with two points explicitly calling out the need to include women on equal footing with men.
Strengthening women’s tree and land tenure rights as well as ensuring equitable distribution of benefits from forests will be crucial, according to the manifesto. Its recommendations build on 12 success stories collected from women and men working to reverse degradation across the continent.
The notion of equality as crucial for progress resonates as International Women’s Day on March 8 draws near, with this year’s theme encouraging us to think equal and build smart. But how can community experiences help build smarter restoration initiatives?
Read also: Communities restoring landscapes: Stories of resilience and success
Women show leadership and commitment
The AFR100, the African Forest Landscape Restoration Initiative that seeks to recover 100 million hectares of currently degraded land in Africa by 2030, is one effort that could benefit from grassroots experiences. Esther Mwangi, the CGIAR Research Program on Forests, Trees and Agroforestry (FTA) and Center for International Forestry Research (CIFOR) scientist who collected the 12 success stories, explained:
“Many regional or global policy processes, like AFR100, risk missing the point because they are top-down, often defined by governments. Governments are important, but what matters for restoration is what happens on the ground. The stories document what communities already know about what tends to work.”
Many of the stories portray women who display outstanding leadership in restoration, which is interesting as women lack the tenure rights that would give them access to long-term returns.
One reason for women’s commitment is that impacts from forest or land degradation often hit them the hardest, leaving them no choice but to act. This is the case on Cameroon’s eastern coast where, as one story recounts, mangroves are being exploited for fuelwood and timber, mostly by men. For women, this has meant losing access to fish, fruit and nuts used for food or income.
Aiming to restore these past benefits, women are willing to invest in replanting trees, even though only men can own the land on which the mangroves grow. Without land rights, women can only hope that the restored mangroves are eventually inherited by their sons.
That women are arguably more organized than men and better at collaborating on restoration is another lesson to be learned. A case in point is Kenyan woman Zipporah Matumbi who has a decade-long track record of mobilizing women in her community to protect and restore forests. When she launched her efforts, many women were initially reluctant to plant trees in case it was interpreted as putting a claim on land that customarily belongs only to men.
However, over time, Matumbi managed to normalize the idea that women can plant trees, and today women are able to capitalize on their efforts, for example by selling tree trimmings as fuelwood and spending the income on educating their children. Matumbi said that is why women are planting trees – because they are thinking of tomorrow.
Read also: Local communities a driving force behind recovering Africa’s landscapes
Empowering women to contribute
While the stories show that there is huge potential for women to lead successful restoration efforts, not many women are able to contribute to or benefit from such initiatives.
“When the community leaders wrote that manifesto, they were right on target,” said Mwangi. “It is like [former US president Barack] Obama once said, about having a whole team, but only letting half of them play. That doesn’t make sense. When you bring in women, you’re bringing in the other half — knowledge, skills, motivation and leadership.”
The problem is that empowering women to contribute is not always simple. Women’s lack of land tenure and rights, as illustrated by some of the success stories, are one challenge. Policies that give women rights equal to those of men are important. Otherwise, hardworking women are easily exploited by contributing to reforestation and restoration efforts without access to the benefits.
That being said, rights are not the only critical factor. Many other entry points exist for improving women’s opportunities.
For example, providing water and sanitation facilities can free up women’s time to plant and look after trees and attend meetings and training. Training women on how to negotiate with men can give them access to benefits and reduce the amount of time spent on household chores (which are often allocated by men), giving women opportunities to demonstrate their leadership skills, which can change how men see them.
Working with men can also help to address crucial gaps in managing restoration initiatives, such as monitoring to keep seedling predators at bay or apprehending the unsanctioned harvesting of grown trees. Additionally, providing viable, long-term livelihood alternatives can enable women and men to ease pressure on forest and land resources.
AFR100 and similar initiatives can greatly benefit from understanding how such actions can start to shake up gender norms, slowly allowing women to play a greater role and thus increasing the chances of long-term restoration success.
Communities give directions for road ahead
Communities’ experiences can also serve as a starting point for more research on the complex dynamics between gender and restoration.
“For me as a scientist, these stories give me a really good starting point. They provide research questions I can ask and hypotheses I can test – for example on women-targeted incentives or on leveling the playing field. That means I might eventually be able to share more rigorous evidence on what difference women make to restoration, and that can inform future initiatives,” Mwangi said.
The stories reinforce FTA’s priorities to improve gender equality by focusing on structural barriers and drivers of change. When well understood, such barriers can be overcome and changes made, allowing women to meaningfully participate in restoration, access benefits and contribute to decisions about how forests and land are used.
Through the manifesto and stories, communities are showing how to equitably expand opportunities for both men and women to restore and benefit from forested landscapes.
By Marianne Gadeberg, communications specialist.
This research is part of the CGIAR Research Program on Forests, Trees and Agroforestry (FTA). FTA is the world’s largest research for development program to enhance the role of forests, trees and agroforestry in sustainable development and food security and to address climate change. CIFOR leads FTA in partnership with Bioversity International, CATIE, CIRAD, INBAR, ICRAF and TBI. FTA’s work is supported by the CGIAR Trust Fund.
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Posted by
FTA COMMUNICATIONS TEAM |
African community leaders know that women play essential roles in restoring land and forests, even though it is not always easy for them to contribute.
However, do high-level decision makers grasp the unrealized potential of women’s leadership? Taking cues from grassroots experiences can help regional restoration initiatives improve their chances of success.
Late last year, African community leaders put together a manifesto that underscores how important communities are for successful restoration. It also provides cues on how to accelerate restoration in Africa, with two points explicitly calling out the need to include women on equal footing with men.
Strengthening women’s tree and land tenure rights as well as ensuring equitable distribution of benefits from forests will be crucial, according to the manifesto. Its recommendations build on 12 success stories collected from women and men working to reverse degradation across the continent.
The notion of equality as crucial for progress resonates as International Women’s Day on March 8 draws near, with this year’s theme encouraging us to think equal and build smart. But how can community experiences help build smarter restoration initiatives?
Read also: Communities restoring landscapes: Stories of resilience and success
Women show leadership and commitment
The AFR100, the African Forest Landscape Restoration Initiative that seeks to recover 100 million hectares of currently degraded land in Africa by 2030, is one effort that could benefit from grassroots experiences. Esther Mwangi, the CGIAR Research Program on Forests, Trees and Agroforestry (FTA) and Center for International Forestry Research (CIFOR) scientist who collected the 12 success stories, explained:
“Many regional or global policy processes, like AFR100, risk missing the point because they are top-down, often defined by governments. Governments are important, but what matters for restoration is what happens on the ground. The stories document what communities already know about what tends to work.”
Many of the stories portray women who display outstanding leadership in restoration, which is interesting as women lack the tenure rights that would give them access to long-term returns.
One reason for women’s commitment is that impacts from forest or land degradation often hit them the hardest, leaving them no choice but to act. This is the case on Cameroon’s eastern coast where, as one story recounts, mangroves are being exploited for fuelwood and timber, mostly by men. For women, this has meant losing access to fish, fruit and nuts used for food or income.
Aiming to restore these past benefits, women are willing to invest in replanting trees, even though only men can own the land on which the mangroves grow. Without land rights, women can only hope that the restored mangroves are eventually inherited by their sons.
That women are arguably more organized than men and better at collaborating on restoration is another lesson to be learned. A case in point is Kenyan woman Zipporah Matumbi who has a decade-long track record of mobilizing women in her community to protect and restore forests. When she launched her efforts, many women were initially reluctant to plant trees in case it was interpreted as putting a claim on land that customarily belongs only to men.
However, over time, Matumbi managed to normalize the idea that women can plant trees, and today women are able to capitalize on their efforts, for example by selling tree trimmings as fuelwood and spending the income on educating their children. Matumbi said that is why women are planting trees – because they are thinking of tomorrow.
Read also: Local communities a driving force behind recovering Africa’s landscapes
Empowering women to contribute
While the stories show that there is huge potential for women to lead successful restoration efforts, not many women are able to contribute to or benefit from such initiatives.
“When the community leaders wrote that manifesto, they were right on target,” said Mwangi. “It is like [former US president Barack] Obama once said, about having a whole team, but only letting half of them play. That doesn’t make sense. When you bring in women, you’re bringing in the other half — knowledge, skills, motivation and leadership.”
The problem is that empowering women to contribute is not always simple. Women’s lack of land tenure and rights, as illustrated by some of the success stories, are one challenge. Policies that give women rights equal to those of men are important. Otherwise, hardworking women are easily exploited by contributing to reforestation and restoration efforts without access to the benefits.
That being said, rights are not the only critical factor. Many other entry points exist for improving women’s opportunities.
For example, providing water and sanitation facilities can free up women’s time to plant and look after trees and attend meetings and training. Training women on how to negotiate with men can give them access to benefits and reduce the amount of time spent on household chores (which are often allocated by men), giving women opportunities to demonstrate their leadership skills, which can change how men see them.
Working with men can also help to address crucial gaps in managing restoration initiatives, such as monitoring to keep seedling predators at bay or apprehending the unsanctioned harvesting of grown trees. Additionally, providing viable, long-term livelihood alternatives can enable women and men to ease pressure on forest and land resources.
AFR100 and similar initiatives can greatly benefit from understanding how such actions can start to shake up gender norms, slowly allowing women to play a greater role and thus increasing the chances of long-term restoration success.
Communities give directions for road ahead
Communities’ experiences can also serve as a starting point for more research on the complex dynamics between gender and restoration.
“For me as a scientist, these stories give me a really good starting point. They provide research questions I can ask and hypotheses I can test – for example on women-targeted incentives or on leveling the playing field. That means I might eventually be able to share more rigorous evidence on what difference women make to restoration, and that can inform future initiatives,” Mwangi said.
The stories reinforce FTA’s priorities to improve gender equality by focusing on structural barriers and drivers of change. When well understood, such barriers can be overcome and changes made, allowing women to meaningfully participate in restoration, access benefits and contribute to decisions about how forests and land are used.
Through the manifesto and stories, communities are showing how to equitably expand opportunities for both men and women to restore and benefit from forested landscapes.
By Marianne Gadeberg, communications specialist.
This research is part of the CGIAR Research Program on Forests, Trees and Agroforestry (FTA). FTA is the world’s largest research for development program to enhance the role of forests, trees and agroforestry in sustainable development and food security and to address climate change. CIFOR leads FTA in partnership with Bioversity International, CATIE, CIRAD, INBAR, ICRAF and TBI. FTA’s work is supported by the CGIAR Trust Fund.
