Bainbridge Island, WA (PressExposure) June 24, 2011 -- Forestry Research Associates (FRA) has stated its support for the $3.5 million in funding offered to Costa Rica from the National Forestry Financing Fund (FONAFIFO).
The Fund was set up in 1996 by the World Bank in an effort to help small and medium-sized landowners in developing economies to conserve their forested land through providing financial incentives.
FRA is a research and advisory consultancy organization that offers outlooks on areas including forestry investments, forestry management and sustainability. It's analysis partner Peter Collins said, "These financial incentives are an effective way to help small landowners in countries such as Costa Rica to reap the benefits of managing their forested land sustainably. The money will help to prevent illegal logging and will help to encourage aforestation in areas of land that used to be home to forests."
The World Bank hopes the funding will also encourage further use of plantation-grown timber, such as that planned by forestry investment firm Greenwood Management and Costa Rica Invest. Encouraging foreign investment in these kinds of plantations helps to further increase the cashflow into developing economies, which could eventually bring Costa Rica to the same growth levels in terms of if its economy, as seen in Brazil in recent years, claimed FRA.
The world's forests have become a major concern for those campaigning against climate change. The loss of forested land can contribute hugely to the amount of Co2 and other dangerous greenhouse gases that are emitted into the atmosphere, causing global warming. The FONAFIFO's objective is to help fund the promotion of managed forestry among small and medium-sized landowners around the world.
Mr Collins added, "Without these incentives it is easy to see why forest owners in developing countries would embark on non-sustainable practices to make a living. What the World Bank hopes to achieve with the funding is to help these forest managers to protect their livelihoods for generations to come, while helping to safeguard the future of the planet."
It is hoped that the cash from FONAFIFO will help to strengthen the natural resources sector by mobilizing the industry and the services supplied by forests and forest plantations.