Biodiversity and Forestsat a Glance

The World Bank

1

Vietnam

A Vanishing Global HeritageThe world’s biodiversity is dwindling before our eyes at an alarming rate. Halfof the world’s wetlands have been lost in the past century; 80 percent of grass-lands are suffering from soil degradation; 20 percent of drylands are in dangerof becoming deserts. Every minute of the day, 28 hectares of forest are lost.Overfishing and degradation of marine ecosystems has led to drastic declines inmarine fisheries; coastal wetlands and mangrove forests around the world arebeing cleared for urban development, aquaculture, and croplands; coral reefsare under assault and suffering from a variety of human-induced stresses,further threatening marine fish stocks and other biodiversity. Because of theirreversibility of species extinction and much habitat loss, this rampant deple-tion of our biodiversity exerts a terrible toll on both the natural and economicworld, affecting both current and future generations.

2 Biodiversity and Forests at a Glance

1 See the Convention on Biological Diversity website at: http://www.biodiv.org

Why Forests Matter■ Forests now cover only 6 percent of the planet, but they harbor up to

90 percent of the world’s terrestrial biodiversity. This biodiversity is irre-placeable, and also has important economic uses. But forests continue todisappear at an alarming rate.

■ More than 1.6 billion people worldwide depend on forests for fuel,medicinal plants, and subsistence income from forest products. Nearly 3 billion people—mostly poor—depend on wood as their main energysource for household heating and cooking.

■ Forests hold as much as 46 percent of the world’s terrestrial carbonstores. Forest loss in the tropics alone accounts for between 10-30percent of global greenhouse gas emissions. In addition, forests recyclenutrients, regulate water quality, and prevent erosion of topsoil.

■ Forests provide billions of dollars in raw materials for timber, as well asproducts such as pharmaceuticals, paper, and building supplies. Butpoorly regulated logging operations, often leading to destruction of biodi-versity and livelihoods of local people, characterize the forest sectors ofmany World Bank client countries.

■ Few countries can devote more than 10-20 percent of their forest estateto totally protected areas. How sustainably forests outside protectedareas are managed will determine the fate of both forest biodiversity andforest-dependent people.

The root causes of habitat and

biodiversity loss arelargely institutional and

socio-economic

The World Bank is currently the largestsingle internationalfunding source for

biodiversity projects

The root causes of habitat and biodiversity loss are largely institutional andsocio-economic. A key challenge in addressing the threat to biodiversity foremerging economies is to balance conservation with the use of their naturalresources for growth; and to find ways to protect vital natural resources,without causing suffering to vulnerable and poor citizens who depend on themfor their daily subsistence needs.

The international community has attempted to find remedies to the threats tobiodiversity. The Convention on Biological Diversity was one of the centralagreements adopted at the 1992 Earth Summit. Since then, 183 countries havebecome parties to the Convention, which establishes three main goals: the con-servation of biological diversity, the sustainable use of its components, and thefair and equitable sharing of benefits from the use of genetic resources.1

3

Why Marine Ecosystems Matter■ Estuaries, coastal wetlands and mangrove forests act to filter land-borne pollutants, provide shelter for finfish and

shellfish to reproduce, reduce coastal erosion, and provide vital habitat for many bird species. However, these criticalecosystems are under threat worldwide, as they are cleared for cropland, urban development, mariculture ponds, andgarbage dumps.

■ The global catch of fish and shellfish supplies nearly 10 percent of the animal protein we consume. But fleet modern-ization, over-subsidization of the fishing industry, and poor management are threatening 3/4 of marine fisheries. Over-fishing, habitat destruction, and pollution are some of the factors that have led to many species being threatenedor in danger of extinction.

■ Coral reef ecosystems are among the most biologically productive and diverse in the world, and sustain numerouscoastal communities worldwide through food production, tourism, recreation, aesthetics, and shoreline protection. Butcoral reef ‘bleaching’ worldwide may be occuring because of rising water temperatures due to climate change. Globalwarming from increased CO2 emissions is expected to lead to substantial sea-level rise, and more frequent andsevere storms, which could have a devastating impact on coastal enviromments and marine resources.

The Global Environment Facility(GEF) was established as the interimfinancing mechanism for theConvention, and the World Bank isone of the implementing agenciesand host to the GEF secretariat.Biodiversity is increasingly main-streamed in conventional Bank pro-jects, but in addition, the Bankfinances biodiversity conservationusing loans and GEF grants.

The World Bank is currently thelargest single international fundingsource for biodiversity projects. Sincethe 1992 Rio Earth Summit, theBank has invested in biodiversityprojects and related activities world-wide, from the former SovietRepublics to the poorest countries inAfrica and Asia. Projects range fromtraditional support to establish and

strengthen protected areas, to thepromotion of sustainable use andconservation in production land-scapes. These efforts contribute intangible ways to realizing theMillennium Development Goal ofensuring environmental sustainabilityby reversing the loss of environmen-tal resources. Although much of thediscussion that follows focuses onWorld Bank work in forests, theBank’s biodiversity efforts are broad-reaching, and include other terres-trial, freshwater, and marineecosystems.

Consistent with the mission ofpoverty alleviation, the Bank recog-nizes that biodiversity underpinshuman welfare and economic devel-opment, and that many sectors ofnational and local economies depend

on biological diversity, naturalecosystems, productive landscapes,and the environmental services theyprovide. Moreover, the poorest ofthe poor, especially the rural poor,tend to be the most dependent onsurrounding natural ecosystems.

Progress Since Rio In partnership with client govern-ments, international organizations,other donors, national and interna-tional NGOs, academic institutions,and local community organizations,the Bank continues to seek andimplement creative ways to supportbiodiversity conservation. A recentanalysis of the Bank’s forest projectsillustrates the richness and innova-tion of the biodiversity portfolio.Between 1992 and 2002, the Bank

4 Biodiversity and Forests at a Glance

2 Bank administrative regions: AFR, Sub-Saharan Africa region; EAP, East Asia Pacific region; ECA, Europe and Central Asia region;LCR, Latin America and Caribbean region; MNA, Middle East and North Africa region; SAR, South Asia region.

FIGURE 1World Bank Active Lending for Biodiversity by Region,2

June 2002 ($370 million)*

* preliminary data

FIGURE 2World Bank Active Lending for Forestry by Region,

June 2002 ($567 million)*

* preliminary data

SAR 13%

AFR 11%

EAP 25%ECA 9%

LCR 42%

SAR 15% AFR 13%

LCR 12%

ECA 3%

EAP 57%

MNA <1%

invested in 207 projects in 90 countries, which supported conservation and sus-tainable use of biodiversity in a range of forest habitats, including tropical ever-green and monsoon forests, forested savanna woodlands, dry forests, temperateand boreal forests, and mountain and cloud forests. During this period, WorldBank lending for all forest biodiversity projects together totaled the equivalentof about $1.6 billion, and leveraged another $1.1 billion, resulting in a totalforest investment portfolio exceeding $2.7 billion. Funding levels vary fromyear to year, but as of June 2002, current Bank lending for biodiversity projectswas $370 million (see Figure 1).

The World Bank has lent some $4 billion since 1991 for forestry and forest-related projects. The current portfolio, as of June 2002, for active forestry pro-jects is $567 million (see Figure 2). The Bank is currently developing a newforest sector strategy, based heavily on partnerships with other donors, NGOs,the private sector and client countries, which focuses on: poverty alleviation;integration of forests into sustainable economic development; and protection oflocal and global forest values. The Bank’s operational policy for the forest

5

sector is being revised to facilitateimplementation of a more proactiveand broad-based approach.

Protected AreaManagement Well-managed protected areas arethe cornerstone of biodiversity pro-tection, and many World Bank pro-jects focus on their establishmentand improved management.

In Brazil, the World Bank/WWFAlliance for forest conservation andsustainable use, with support fromthe GEF, is working with theGovernment to protect 41 millionhectares of forest across the BrazilianAmazon. The Amazon RegionProtected Areas Program (ARPA) isanchored in President Cardoso’s1998 commitment to set aside atleast 10 percent of Brazil’s forests inconservation areas, tripling the areaunder protection. A program isunderway to strengthen 12.5 millionhectares of existing parks and toestablish new protected areas inanother 28.5 million hectares,including representative examples of forest in each of the Amazon’s 23 eco-regions. The ARPA programwill establish a long-term financingmechanism to cover the recurrentcosts, and ensure the sustainability ofprotected areas. Under the program,a biodiversity monitoring system willbe established to track the threatsposed by deforestation, road con-struction, logging, cattle raising, and

other development activities in andaround parks.

In Russia, which contains about 25 percent of all old-growth forests,there is a pressing need to balanceeconomic development in the forestsector with sustainable managementand conservation of biodiversity. Asix year, $20 million GEF-financedproject is supporting conservation offorests in the Russian Far East, andwill be complemented by a new loanfor forest management, includingcontrol of fire in these biodiversity-rich forests. Also in the Russian FarEast, a medium-size grant is promot-ing conservation of Siberian tigersand their prey base in the forests ofKhabarovsky Krai.

In Central America, The Meso-american Biological Corridor (MBC)encompasses nearly 30 percent of territory, linking ecosystems,indigenous communities, and privatelands in the longest continuousmultinational sustainable develop-ment initiative in the world. As oneof the Earth’s most biologicallydiverse areas, the region offersinvestment opportunities rangingfrom ecotourism to pharmaceuticalprospecting. In support of theseopportunities, the Bank is supervis-ing projects for almost $200 million,and is implementing finances of over$40 million in ongoing national andregional GEF grants. In conjunctionwith the Central American Com-mission on Environment and

Development (CCAD), the Bank hasworked to consolidate and main-stream the MBC by mobilizingresources to cover the costs of con-necting the multiple ongoing activi-ties at the national level, promotingpublic-private partnerships, andincreasing awareness of both the local and international communi-ties about the value of the MBC initiative.

In Indonesia, the IntegratedConservation and DevelopmentProject (ICDP) for the one millionhectare national park of KerinciSeblat is using a Bank loan andmajor GEF grant to integrate biodi-versity needs into land use and localdevelopment planning, supportingbiodiversity surveys and audits inadjacent forest concessions, and pro-viding small development grants tocommunities that enter conservationagreements with the park.

In India, The EcodevelopmentProject provides development oppor-tunities to neighboring communitiesto address some of the social andpoverty needs that lead to biodiver-sity loss around evergreen andmonsoon forest parks which provideimportant habitat for tigers, alsousing a World Bank loan and GEFfunds. At Periyar, Kerala, park man-agers have developed innovativepartnerships with different usergroups, such as thatch, reed, andfirewood collectors, to allow orga-nized collections in strictly zoned

6 Biodiversity and Forests at a Glance

Indonesia

7

areas in return for help with forestpatrols and forest protection. Thepark is also using its partnershipwith local communities to eradicateinvasive alien species such asEucalyptus and Lantana, that inhibitnatural regeneration and threatenecosystem health.

Protected AreaFinancingOne of the greatest challenges forconservation is covering the recur-rent costs of parks and protectedareas. To address this problem, theBank has helped to establish severalnational conservation trust funds,using GEF financing as part of theco-funding. Conservation funds areespecially valuable, because theyprovide a regular and predictablesource of funding.

The Mgahinga-Bwindi ImpenetrableForest Conservation Trust in Ugandafocuses on two national parks,Bwindi and Mgahinga, whichprotect important gorilla habitatsalong the borders with Rwanda andZaire. The conservation fund pro-vides resources for park managementto strengthen protection of thegorilla populations, and for researchto better understand the ecology andsocial behavior of the gorillas andother native wildlife. Initially capital-ized with $4 million of GEF financ-ing, the conservation fund hasreceived additional support from

USAID to finance park-related activi-ties, and an additional $2 millionfrom the Government of theNetherlands. By providing resourcesto protect the gorillas in Uganda, thetrust fund is helping to support reser-voir populations of this endangeredspecies which may provide migrantsto re-colonize forest habitats inUganda’s war-torn neighbors.

The Table Mountain Fund (TMF) inSouth Africa is financing conserva-tion in the world’s smallest plantkingdom, the Cape Floral Kingdom,which is a Mediterranean-typeecosystem that lies at the southerntip of South Africa. It is the smallestand richest of the world’s six floralkingdoms,3 and the only one con-tained within a single country. TheCape Floral Kingdom harbors 8,600plant species (equivalent to one thir-tieth of the global flora) in just90,000 square kilometers, with 70 percent of those plants unique tothe region. Within this kingdom liesthe Cape peninsula, an area of spec-tacular beauty and a diverse flora ofmore than 2,500 species. To providefunding for this floral “hotspot,” the TMF was established with

$7 million, including $5 millionfrom the World Bank/GEF programand $2 million from South Africansources. These funds have beenmatched with large land donationsand purchases of private land toexpand the Cape Peninsula NationalPark. The TMF is designed toprovide income in perpetuity tosupport the NGO-managed commu-nity conservation program within the park.

The Mexican fund will provide along-term, reliable source of fundsfor core protection and conservationactivities. Moreover, it will con-tribute to strengthened protectedareas management, and the protec-tion of unique biodiversity in eligibleand special biosphere reserves.

The Peruvian fund for protectedareas (PROFONAPE) has alsostrengthened and extended the pro-tected area network, and improvedpolicy framework and financial sustainability.

ConservationOutside ProtectedAreasExpanding biodiversity activities intothe wider landscape, thus integratingbiodiversity conservation and sus-tainable management into regularprograms and projects, has been aWorld Bank priority in recent years.

3 The world is divided into six floral kingdoms:the Holarctic Kingdom (America and Eura-sia–42 percent), the Paleotropical Kingdom(most of Africa–35 percent), NeotropicalKingdom (most of South America–14 percent),Australian Kingdom (8 percent), the Holant-arctic Kingdom (the southern tip of SouthAmerica–1 percent), and the Capensis (CapeFloral Kingdom–0.04 percent).

8 Biodiversity and Forests at a Glance

In India, more than 275 million people depend on forest lands for their liveli-hoods and cash income (firewood, non-timber forest products, building materi-als), including more than 35 million tribal peoples, the most disadvantagedgroups in society. The World Bank has committed over $800 million to theforestry sector in India over the last 20 years with 16 community-based jointforest management projects in several states throughout the subcontinent.These projects have led to significant improvements in forest management,reversal of deforestation trends in three states, and increases in assets andincomes for thousands of forest fringe villagers. In Madhya Pradesh, forinstance, the Bank financed joint forest management activities that led to theestablishment of over 2,400 oversight committees, and benefited more than 6 million people.

In Eastern Europe and the former Soviet Union, biodiversity has been main-streamed into the forestry sector, using the complementarities between GEFgrants and World Bank lending. Bank assistance has focused on improvedforest sector management, including fire and pest management, development ofregulatory frameworks, restitution of forested lands to private landowners andcommunities, and restoration with native species of forests damaged by air pollution and acid rain. A tri-national trans-boundary conservation project inthe Western Tien Shan in Central Asia (Kyrgyz Republic, Kazakhstan, andUzbekistan) will help to maintain important juniper and walnut forests, as well as the gene pool of native apple trees, within conservation areas and the intervening landscape.

In China, The Natural Forest Protection Program is designed to ensure thelong-term protection of national forests in watershed catchments and reducevulnerability of downstream villages and towns to flooding. After the severefloods of 1998, the Chinese government introduced a moratorium on logging,and is now re-assessing its forestry programs. Approximately 50 millionhectares, more than half the country’s natural forests, will now be re-assessedfor designation as nature reserves, forest parks, watershed forests, or areas forselective logging according to their biological and protection values.

Across East Asia, many nationals had no direct access to information abouttheir national flora and fauna. Although some field guides were available, thesetended to be in English, expensive, and largely inaccessible to a local market.Two Bank projects have specifically addressed this need for local language fieldguides. A project funded by the Bank-Netherlands Partnership Program andmanaged by IUCN produced 17 titles and 26 books (some titles appear inmore than one language), in partnership with NGOs and academics in sevenEast Asian nations. A second GEF-financed Indonesia Biodiversity Collections

Expanding biodiversityactivities into the

wider landscape, thusintegrating biodiversity

conservation and sustainable management

into regular programsand projects, has been a

World Bank priority inrecent year

9

Project, executed by the IndonesianInstitute of Sciences, produced 15books.

Also in East Asia, the World Bank,through the Bank-NetherlandsPartnership Program and the WorldBank/WWF Alliance for forest con-servation and sustainable use, hasbeen encouraging faith leaders toinitiate practical conservation pro-jects, seeking the support of the ‘networks’ of workers and members.The project seeks to facilitate,deepen and raise the awareness andprofile of religious arguments forforest/biodiversity protection andstewardship, engaging leaders of thisimportant sector of civil societywhich extends to virtually all com-munities through chains of respectand authority. It is active inMongolia (Buddhism), Thailand(Buddhism), Cambodia (Buddhism),Indonesia (Islam, Christianity-Protestant), Papua New Guinea(Christianity-Protestant), and EastTimor (Christianity-Catholic), andseeks to apply lessons as much aspossible to mainstream World Bankwork through consultations for pro-jects, programs and policies.

Looking Ahead The integration of biodiversity issuesthroughout World Bank projects isessential to ensuring that local andglobal priorities for biodiversity con-servation are being met. Over the lastdecade, a number of World Bank

projects have been making explicitlinkages between biodiversity, carbonsequestration, and watershed valuesassociated with rural development,forest conservation and management,erosion control, clean water supplies,flood control, and coastal protection.

Looking towards the future, thereare several key issues that must beaddressed in order to ensure thefurther implementation of Agenda21. In order to conserve biodiversity,it is imperative to:

• Harness the potential of biodiver-sity and improved natural resourcemanagement as a driver of povertyreduction by creating opportunity,empowerment, and security forrural people, especially among therural poor, in the sustainable useand management of forests andother biological resources.

• Integrate biodiversity into sustain-able economic development by:

(i) developing markets for environ-mental services; (ii) encouragingimproved forest and dryland man-agement; ( iii) improving gover-nance, including control of illegalactivities; (iv) promoting activeparticipation in management anddecision-making by all stakehold-ers; and, (v) managing adversecross-sectoral and macroeconomicimpacts on forests and other bio-logical resources.

• Encourage the recognition of themoral imperative for conservingbiodiversity that we receive in

trust for future generations, forexample, by working with faithleaders and communities.

PartnershipsBecause of the global imperative topreserve biodiversity and meetvarious stakeholder interests, strongcollaborative partnerships are anessential component in sustainableresource management and biodiver-sity conservation. As such, partner-ships provide much of the basis forsuccessfully implementing programswith client governments, other multi-and bi-lateral organizations, NGOs,the private sector, and people livingin and near forest areas.

Partnership with the GEF for Biodiversity

The GEF has been the Bank’s majorexternal co-financing partner inassisting countries to conserve andsustainably use their biodiversity.The GEF provides incremental grantfunding to include a biodiversity orconservation element in regular sus-tainable development projects.

Since the GEF was established in1991, the World Bank Group hasmanaged $713.9 million in GEFresources for biodiversity conserva-tion projects. The projects range in size, and cover four types ofecosystems: arid and semi-arid;coastal and freshwater; forests; andmountains. A major focus of theBank’s GEF biodiversity portfolio

10 Biodiversity and Forests at a Glance

Kenya

has been support for new or existingprotected areas. The componentsinclude developing managementplans, addressing sustainable use ofthe areas, and encouraging participa-tion of stakeholders and local benefi-ciaries. Coastal zone management,fisheries, and biodiversity activitieshave also been included as the resultof the formulation of NationalEnvironmental Action Plans in manycountries. These have allowed stake-holders to prioritize and act on theirenvironmental concerns.(http://worldbank.org/gef)

World Bank/WWF Alliancefor Forest Conservation andSustainable Use

The World Bank/WWF Alliance wascreated in response to the crisis ofcontinued depletion of the world’sforest biodiversity, and of the forest-based goods and services essentialfor development.

The Alliance works to help achievethree targets in a broad range offorest types by 2005:

• 50 million hectares of new forestprotected areas;

• 50 million hectares of existing buthighly threatened protected areassecured under effective manage-ment; and,

• 200 million hectares of productionforests under independently certi-fied management.

Thus far, the Alliance has helpedsecure almost 45 million hectares ofnew protected areas, and is close toachieving this target. Alliancesupport of certification efforts hascontributed to improved manage-ment of millions of hectares of com-mercial forests. Independentcertification is a powerful tool forpromoting best management prac-tices. By combining the Bank’s accessto policy dialogue, convening power,analytical capacity and financingoperations with the WWF’s fieldpresence, public trust, private sectorpartnerships and forest conservationexpertise, the Alliance can address

forest conservation and managementissues on a broad front, workingwith a diverse group of partners.(http://www.forest-alliance.org)

Critical EcosystemsPartnership Fund

The Critical Ecosystem PartnershipFund (CEPF) of ConservationInternational, the GEF, the Mac-Arthur Foundation, the JapaneseGovernment, and the World Bankserves as a catalyst to create strategicalliances among diverse groups, com-bining unique capacities, and elimi-nating duplication of efforts for acoordinated approach to conserva-tion challenges. Investments includesupport for managing protectedareas and coordinating biodiversitycorridors, training, trans-boundaryplanning, conflict resolution andconsensus building, and facilitatingpartnerships with the private sector.(www.cepf.net)

Pilot Program to Conservethe Brazilian Rainforest

The Pilot Program to Conserve theBrazilian Rainforest is a joint under-taking of the Brazilian government,civil society, and the internationalcommunity, that seeks to find waysto conserve tropical rainforests of theAmazon and Brazil’s Atlantic coast,and to maximize their environmentalbenefits in a manner consistent withBrazil’s development goals. Theinternational donors include Canada,the European Union, France,

11

The Bank’s GEF ProgramThe Bank’s GEF program in bio-diversity recognizes two impor-tant emerging issues:

■ Promoting financial sustain-ability of biodiversity conser-vation through conservationtrust funds, private sectordevelopment, and paymentsfor ecosystems services.

■ Expanding conservation ofbiodiversity in productionlandscapes, through inte-grated conservation anddevelopment projects, con-servation in agricultural landscapes, and addressingsustainable forest conserva-tion and management, andfisheries.

12 Biodiversity and Forests at a Glance

Germany, Italy, Japan, the Netherlands, and Spain, as well as the GEF, theInter-American Development Bank (IDB), and the United Nations DevelopmentProgram (UNDP). (www.worldbank.org/rfpp)

International Coral Reef Initiative (ICRI)

The International Coral Reef Initiative (ICRI) is a partnership among nationsand organizations seeking to implement Chapter 17 of Agenda 21 and otherinternational conventions and agreements for the benefit of coral reefs andrelated ecosystems. The initiative was established in order to stop and reversethe global degradation of coral reefs and related ecosystems. The ICRI partner-ship and approach thus far has been to mobilize governments and a wide rangeof other stakeholders in over 80 countries in an effort to improve managementpractices, increase capacity and political support, and share information on thehealth of these ecosystems. The Bank has been an active participant in the initiative since its inception.(www.icriforum.org)

Showing Results on the GroundBeyond the examples already described, the following cases also demonstratehow the biodiversity portfolio is achieving results on the ground, according tothe Bank’s independent Operations Evaluation Department (OED).

Pilot Program to Conserve the Brazilian RainforestThis program, a joint undertaking of the Brazilian government, civil society,and the international community, seeks to find ways to conserve tropical rain-forests of the Amazon and Brazil’s Atlantic coast, and to maximize their envi-ronmental benefits. Begun in 1995 as described above, the program set upDemonstration Projects, which have supported almost 100 small-scale commu-nity-based projects with an average grant of $140,000 each. Projects areselected by an executive commission that includes representatives of the publicsector and civil society organizations. Many of these projects experiment withnew forms of sustainable resource use, including the processing and marketingof non-timber forest products, such as fruits and nuts. Some projects involvelocal communities in addressing the conservation of small, but biologicallydiverse areas, such as public and private protected areas. Others are restoringdegraded lands by establishing agro-forestry systems using native tree speciestogether with annual food crops and other perennial crops. Dissemination ofbest practices and lessons learned from these projects is an integral part of the

Because of the globalimperative to preservebiodiversity and meetstakeholder interests,

strong collaborative partnerships are an

essential component in sustainable resource

management and biodiversity conservation

program, which will rely primarilyon networks established by NGOsand the media, following a strategycurrently being designed.

The Biodiversity ResourcesDevelopment Project in Costa RicaCosta Rica has become a leader inenvironmental sustainability andreforestation by offering incentivessuch as tax credits, direct payments,and subsidized loans that have bene-fited large and small landowners.Developing a strategic frameworkand unifying the administration offorests and protected areas into oneorganization was key to the project’ssuccess. In addition, important legis-lation has been passed to protect thenation’s forests, including theEnvironment Law, the BiodiversityLaw, and the Forest Law. The “pol-luters pay” principle was introducedthrough the establishment of a taxon fossil fuels to pay for environ-mental services. With this frame-work, the Costa Rican Governmentsupports the National BiodiversityInventory in the Conservation Areasof Costa Rica.

The project was carried out by theNGO INBio, with the support of a

$7 million GEF grant for a seven-year period, and additional fundingfrom Canada and Norway throughINBio. The project’s overall objec-tives are to demonstrate thatincreased knowledge and informationabout particular species enhance thevalue and marketability of biodiver-sity services. They include undertak-ing biodiversity inventories of priorityareas, and collecting and catalogingactivities. Five taxonomic groups,including plants, mollusks, nema-todes, lepidopterous insects, and ver-tebrates have already been collectedand catalogued. Also, the ecosystemmapping of the Conservation Areashas been completed, and the biodi-versity information managementsystem has been developed.

Vietnam: Coastal WetlandsProtection and DevelopmentProject

In order to develop sustainablecoastal protection, the CoastalWetlands Protection and Develop-ment Project will reestablish thecoastal mangrove wetland ecosys-tems along the Mekong delta.

The project components include: (i) the provision of seedlings, civilworks, and equipment supply forplanting, rehabilitation, and protec-tion of mangrove forests and barrenor degraded land, and project man-agement and training focusing onprotecting newly planted or existingforests, improving forest conserva-tion, and implementing fish sanctuar-

ies management; (ii) institutionalstrengthening of the Vietnam Bankfor Agriculture and Rural Devel-opment to improve creditability; (iii) demonstrations to grass rootsorganizations and farmer groups sothat technology development andtransfer will improve farm productiv-ity and thereby decrease farmingrisks; (iv) social support for the devel-opment and implementation ofcommune action plans, as well as theestablishment of communal grantsand social funds; (v) technical assis-tance and training for policy develop-ment assistance to improve land andwater uses allocation, and restructureselected enterprises; and, (vi) resettle-ment plans to assist affected groups,and assessments of the environmen-tal, biodiversity and socioeconomicimpacts of the project.

Mesoamerican Barrier Reef System

The Mesoamerican Barrier ReefSystem, which extends from thesouthern half of the YucatanPeninsula to the Bay of Honduras, is the second longest barrier reefsystem in the world. The reefs helpprotect the coastal landscape and

13

Objectives Projection

Coastal land to be reclaimed 470 kmin the Mekong Delta

Household incomes to be 25,000stabilized and diversified

Population included in the 600,000conservation belt

Objectives Results so far

Specimens collected and 2,000,000recorded in database

Parataxonomists trained 61

Technicians and curators 45trained

14 Biodiversity and Forests at a Glance

Mexico

maintain water quality, while overone million people who live in adja-cent coastal zones benefit fromfishing and tourism. The project willhelp Belize, Guatemala, Hondurasand Mexico manage the Barrier ReefSystem as a shared, regional ecosys-tem, safeguard its biodiversity valuesand functional integrity, and create aframework for its sustainable use.

The $11 million GEF grant is co-financed by counterpart contribu-tions from the Governments ofBelize, Guatemala, Honduras, andMexico, and by complementaryfunding from the World WildlifeFund, the University of Miami, theOak Foundation, and the Govern-ment of Canada. The total cost ofthe program is $24. 2 million.Because of the complexity of thegoals involved, there will be a 15-year implementation programwith a gradualist approach of threeconsecutive phases. The first phasewill end in 2006. Key performanceindicators for the first phase willinclude: (i) establishing regionalframeworks to manage diverseresources of the MBRS; and, (ii) maintaining biological represen-

tation and ecological interconnectiv-ity in coastal and marine ecosystemsthroughout the program.

The beneficiaries include indigenousgroups, such as Garifuna of Belize,Honduras, and Guatemala; Mayancommunities in frontier areasbetween Belize and Guatemala;Miskito communities; and Ladinopopulations who more recently have moved to coastal areas andtourist destinations in search ofemployment.

Mexico: HabitatEnhancement in ProductiveLandscapes Project

The problems faced by Chiapasinclude poverty, a marginalizedindigenous population, low levels ofpublic service and infrastructure, andpolitical unrest. About 700 hectaresof forests are cleared each year toestablish new coffee plantations.

In the El Triunfo Biosphere Reservein Chiapas, poor communities arenow substantially improving theirlivelihood while protecting biodiver-sity though the ‘Habitat Enhance-ment in Productive Landscapes’

project. Financed with a $750,000grant from the GEF, the projectdeveloped economic incentives forsmallholder farmers to protect theforest through the promotion oforganic and biodiversity-friendlyshade coffee.

Institutional ImpactsThe project resulted in the elabora-tion of a coffee standard—the Normfor Sustainable Coffee—and fournew cooperatives have begun toreplicate the project’s scheme. Inaddition, the first Civil Council forSustainable Coffee was created inMexico. An “El Triunfo” Round-table with the Government, NGOs,and the private sector was alsocreated.

15

Objective Results

Increased coffee price for farmers 40-100%

Virgin forest conserved 1000 ha

Certified organic coffee 1800 ha

Certified shade grown (habitat 910 hafor native species) coffee

Communities with participatory 28environmental monitoring and evaluation

16 Biodiversity and Forests at a Glance

For Further ReadingWorld Bank (2000). The World Bank and the Global Environment – A Progress Report. The World Bank Group, Washington D.C.

World Bank (2001). Supporting the Web of Life – Biodiversity at the WorldBank. The World Bank Group, Washington D.C.

World Bank (2000). Supporting the Web of Life. Biodiversity at the WorldBank – A portfolio update, 1988 - 1999. The World Bank Group, WashingtonD.C.

World Bank (2002). Biodiversity Conservation in Forest Ecosystems – WorldBank Assistance, 1992 - 2002. The World Bank Group, Washington D.C..

MacKinnon, K. (2000). Transboundary Reserves – World BankImplementation of the Ecosystem Approach. The World Bank Group,Washington D.C.

MacKinnon, K., Chow, N., Esikuri, E., and Platais, G. (2000). Conserving andManaging Biodiversity in Dryland Ecosystems. The World Bank Group,Washington D.C.

Pagiola, S., and Platais, G. (2000). Payments for Environmental Services. In: Environment Strategy Notes series, May 2000, No. 3. World BankEnvironment Department, The World Bank Group, Washington D.C.

For further information about biodiversity projects, and to download a widevariety of interesting reports and books, visit www.worldbank.org/biodiversity.For World Bank project evaluations, visit the World Bank’s independentOperations Evaluation Department, at www.worldbank.org/oed