A Practitioners Resource: 6 Lessons to Improve Your Forestry Finance Programs

Practitioners and program managers implementing forestry investments in developing countries, this one is for you!

When we published an independent mid-term evaluation of the CIF’s Forest Investment Program (FIP) last year, one key objective was to lift out the tangible lessons from our forestry portfolio. FIP is comprised of 52 projects, across 13 developing countries, and a total of $586 million in approved funding. Drawing on the study’s findings and recommendations not only helps us understand what worked or what we could have done better, but also informs how we improve on the future financing in forestry and nature-based solutions.

A new brief, “Transforming Forest Management: Six Lessons for Practitioners from an Independent Evaluation of CIF’s Forest Investment Program” pulls out lessons for practitioners to support the design, management, and implementation of forestry investments.

As Chitembo Chunga who leads CIF’s resilience work and the brief’s author explains:

“This short, impactful resource draws on the FIP evaluation which, at its core, was ‘learning-oriented!’ This means that we intentionally sought to pull out the pertinent lessons and practical insights to apply to the remainder of FIP’s programming, and to future CIF programs. Through this brief, we encourage those working in this sector to ‘dare to innovate’ and to “remain diligent’. We use this language because we can all support each other’s learning through our successes and our setbacks. From planning to delivery, learning is vital to improve and achieve lasting outcomes in forestry finance.”

Here are a few highlights from the brief:

• Ensure a “line of sight” between local project actions and the indirect drivers of deforestation;
• Understand your funding environment as it may present crucial opportunities to bridge much needed financing gaps;
• Dare to innovate. Through the Dedicated Grant Mechanism (DGM), FIP pioneered direct funding support to Indigenous Peoples and local communities;
• Taking a country-led, multi-stakeholder approach from investment plan design to implementation can foster strong collaboration and alignment, especially at local level.  

The independent mid-term evaluation captures FIP’s legacy, since the program’s inception in 2009, as establishing unique approaches to protecting and managing natural resources. It also pioneered incorporating the roles of Indigenous People and local communities in decision-making through the DGM. As this new brief demonstrates, the evaluation has a wealth of evidence, data, and other insights to help practitioners learn from us – and with us – in using the lessons and insights our forestry portfolio offers.