Forests Sourcebook - HCV Resource Network

NOTE 3.3
Forest Plantations in World Bank Operations
Forest plantations can be highly effective for the production
of fiber for wood and paper products, and
may help in meeting the growing demand for wood
identified in chapter 3. Managed properly, they may also be
effective in the protection and conservation of soil and
water resources, revegetation of degraded landscapes, rehabilitation
of habitats, and for carbon sequestration. However,
they have also been associated with conversion of natural
forests, the destruction of habitat, and the
marginalization of local and Indigenous Peoples. This note
examines the potential for plantations to deliver a variety of
goods and services and identifies the precautions necessary
to avoid causing negative environmental and social impacts.
OVERVIEW AND CONSIDERATIONS
OF INTEREST FOR WORLD BANK ACTIVITIES
Because of their efficiency in wood production, along with
increasing restrictions on the use of native forests, wood
supply from plantations has grown from 5 percent to 30
percent of the total share of industrial fiber over the past 15
years, and projections are that this will increase to 50 percent
by 2040 (World Bank 2005). Today, most of the world’s
140 million ha of plantations are established for productive
purposes, with another 31 million ha established for protection
(FAO 2006).
Trees have an excellent capacity to capture and hold, or
“fix,” atmospheric carbon and are now being employed for
carbon sequestration to mitigate greenhouse gas effects and
climate change. Carbon content in trees is a function of
their density and volume. The faster the trees are able to
grow, the more rapidly they fix carbon. The paradox is that
many of the same exotic trees that grow rapidly and are
most useful for sequestering carbon also pose increased
risks for local environmental impacts because of their
aggressive characteristics.
OPERATIONAL ASPECTS
In general, most productive plantations are characterized by
uniform species composition and age-class distribution
within stands, regular spacing between tree stems, and simple
geometric configurations (blocks)—characteristics that
enhance their utility and cost effectiveness. However, these
same qualities, along with the use of mechanical and chemical
treatments and occasional replacement of native vegetation,
have led to concerns about plantations’ impacts on the
environment and biodiversity. Social issues can also emerge
when large operations fail to address impacts on local populations
or fail to include landowners’ and other stakeholders’
concerns in their operations. For these reasons, World
Bank–financed operations need to ensure that both environmental
and social concerns are considered early in the
project design. In the end, productive plantations do not
have to compromise the environment or biodiversity, or
lead to social exclusion—in fact, they can favorably affect
each of them, or at a minimum their impacts can be mitigated,
and it is the World Bank’s job to ensure that this happens
within its investments.
Scale of activity. World Bank operations involving plantations
may be carried out at both national and local levels.
Striking the balance between these very different
approaches, or choosing one over the other, during project
design requires a solid understanding of the country’s needs
and goals for the sector, as well as of local conditions in
areas targeted for interventions. Conversely, most countries
lack a strategic vision for forestry, and World Bank projects
must frequently incorporate elements of strategic planning
with more tangible activities that promote sustainable
development, such as research, extension, and the promotion
of best management practices. Stakeholder processes
such as National Forestry Programs (see note 6.3, Identifying
the Need for Analysis on Forests in Development Policy
117