WORLD TRADE
ORGANIZATIONWT/CTE/W/140
20 June 2000
(00-2332)
Committee on Trade and Environment
RECENT DEVELOPMENTS IN THE INTERGOVERNMENTAL FORUM ON FORESTS
Full Text of the "Programme Elements of the Intergovernmental Forum on Forests"
Note by the Secretariat
In the Fourth Session of the Intergovernmental Forum on Forests (IFF), held in New York
from 31 January to 11 February 2000, the "Programme Elements of the Intergovernmental Forum on
Forests" were finalized and forwarded to th e Commission on Sustainable Development (CSD) for
adoption.1  The Programme Elements are designed to provide a basis for action to achieve sustainable
forest management at the national, regional and global levels.  This document contains their full text.
The Eighth Session of the CSD, convened in New York from 24 April to 5 May 2000,
endorsed the Programme Elements.2  Acting upon them, it invited the Economic and Social Council
and the General Assembly to establish a new international arrangement on forests, including a
United Nations Forum on Forests (UNFF).3
The Programme Elements call upon the Economic and Social Council to consider
recommending within five years, "the parameters of a mandate for developing a legal framework on
all types of forests."
_______________
                                                     
1 See document E/CN.17/2000/14 for the Report of the Intergovernmental Forum on Forests on its
Fourth Session.
2 See document E/CN.17/2000/L.9 for this Decision of the CSD.
3 The Food and Agriculture Organization of the United  Nations (FAO) offered to host the Secretariat of
the UNFF.WT/CTE/W/140
Page 2
PROGRAMME ELEMENTS OF THE INTERGOVERNMENTAL FORUM ON FORESTS
CONTENTS
I. PROMOTING AND FACILITATING THE IMPLEMENTATION OF THE
PROPOSALS FOR ACTION OF THE INTERGOVERNMENTAL PANEL ON
FORESTS, AND REVIEWING, MONITORING AND REPORTING ON
PROGRESS IN THE MANAGEMENT, CONSERVATION AND
SUSTAINABLE DEVELOPMENT OF ALL TYPES OF FORESTS.................................3
A. P ROMOTING AND FACILITATING IMPLEMENTATION ...................................................................3
B. M ONITORING PROGRESS IN IMPLEMENTATION ...........................................................................5
II. MATTERS LEFT PENDING AND OTHER ISSUES ARISING FROM THE
PROGRAMME ELEMENTS OF THE INTERGOVERNMENTAL PANEL ON
FORESTS PR OCESS...............................................................................................................8
A. N EED FOR FINANCIAL RESOURCES ..............................................................................................8
B. T RADE AND ENVIRONMENT .......................................................................................................10
C. T RANSFER OF ENVIRONMENTALLY SOUND TECHNOLOGIES TO SUPPORT SUSTAINABLE
FOREST MANAGEMENT ..............................................................................................................13
D. I SSUES THAT NEED FURTHER CLARIFICATION ...........................................................................17
1. Underlying causes of deforestation and forest degradation................................................17
2. Traditional forest- related knowledge....................................................................................19
3. Forest conservation and protected areas ..............................................................................21
4. Forest research.............................................................................................................. ..........24
6. Economic instruments, tax policies and land tenure ...........................................................27
8. Assessment, monitoring and rehabilitatio n of forest cover in environmentally
critical areas ................................................................................................................. ...........30
E. F OREST -RELATED WORK OF INTERNATIONAL AND REGIONAL ORGANIZATIONS AND
UNDER EXISTING INSTRUMENTS ................................................................................................32
III. INTERNATIONAL ARRANGEMENTS AND MECHANISMS TO PROMOTE
THE MANAGEMENT, CONSERVATION AND SUSTAINABLE
DEVELOPMENT OF ALL TY PES OF FORESTS............................................................35WT/CTE/W/140
Page 3
I. PROMOTING AND FACILITATING THE IMPLEMENTATION OF THE
PROPOSALS FOR ACTION OF THE INTERGOVERNMENTAL PANEL ON
FORESTS, AND REVIEWING, MONITORING AND REPORTING ON PROGRESS
IN THE MANAGEMENT, CONSERVATION AND SUSTAINABLE DEVELOPMENTOF ALL TYPES OF FORESTS
A. P
ROMOTING AND FACILITATING IMPLEMENTATION
Conclusions
1. The Intergovernmental Forum on Forests (IFF) welcomed the commitment, expressed by
Governments, international organizations and other partners, to the implementation of all the Forum’s
proposals for action and noted with appreciation the many activities at the national level initiated bycountries, groups of countries and international organizations.  It noted the added attention given to
the social and environmental services provided by forests as well as the challenges to address these
issues. It emphasized the need for the effective involvement of relevant interested parties, as well as
the improvement of institutional arrangements and appropriate ways and means of communication.
2. The Forum underscored the need for implementation of strategies in terms of investment,
mobilization of domestic and international resources and — in the case of developing countries, with
special attention to least developed countries and developing countries with low forest cover —
appropriate financial mechanisms and/or measures including support through official development
assistance (ODA).
3. The Forum considered national forest programmes, as defined by the Intergovernmental Panel
on Forests (IPF), to be a viable framework for addressing forest sector issues, including
implementation of the IPF proposals for action in a holistic, comprehensive and multisectoral manner.
It took note of the national case studies prepared under the Six-Country Initiative of Finland,
Germany, Honduras, Indonesia, Uganda and the Unit ed Kingdom, as well as of the Baden-Baden
workshop and its results. This initiative was considered an important contribution to the assessment ofthe IPF proposals for action at the national level, and for supporting implementation work at national
and subnational levels.  The Initiative had recognized the diversity of national conditions and
interested parties in assessing the relevance and prioritization of the proposals at the national level,
and had also produced a useful Practitioners Guide, which should be revised to facilitate assessment
exercises. In order to enhance the implementation of the proposals for action adopted by IPF, the
Forum identified the need for effective foll ow-up and long-term commitment at all levels.
4. The Forum noted that the IPF proposals for action were numerous and complex and covered a
wide range of important issues. The Forum recognized that sustainable forest management was a
long-term process and goal and countries would not, within a limited time-frame, be able to show
substantial progress in capacity-building, policy development, planning processes and creation of
enabling and supporting infrastructure.  The Forum underlined the need for sustained efforts in
implementing the IPF proposals.
5. The Forum recognized that IPF implementation by developing countries with low forest cover
merited special attention. It called on the United Nations Environment Programme (UNEP), as the
lead agency for this programme element, to expedite the development of a definition of low forest
cover as contained in the IPF proposals for action.  It invited the Global Environment Facility (GEF)
as well as the relevant environmental conventions, including the Convention on Biological Diversity
a,
the United Nations Framework Convention on Clim ate Change (A/AC.237/ 18 (Part II) Add.1 and
                                                     
a See United Nations Environment Programme, Convention on Biological Diversity  (Environmental
Law and Institution Programme Activity Centre), June 1992.WT/CTE/W/140
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Corr.1, annex 1) and the United Nations Convention to Combat Desertification in those Countries
Experiencing Serious Drought and/or Desertification, particularly in Africa (A/49/84/Add.2, annex,
appendix II), and international financing institutio ns to look into and reflect on the special needs of
developing countries with low forest cover, and called upon the informal, high-level Inter-Agency
Task Force on Forests (ITFF) to coordinate its work in supporting these countries.
6. The Forum expressed support for the work carried out by the informal, high-level
Inter-Agency Task Force on Forests.  It noted that the Task Force had been and continued to be an
effective means of support of the IPF/Forum process and of informal inter-agency coordination on
forests. In future, the work of the Task Force should be strengthened and further developed.
7. The Forum took note of the continuing monitoring of the effects of airborne pollutants on
forests within member countries of the International Cooperative Programme on Forests (ICP
Forests), as well as the establishment of new protocols dealing with nitrogen, heavy metals andpersistent pollutants under the Geneva Convention on Long-Range Transboundary Air Pollution
b  as
well as the beginning of regional cooperation on a monitoring network on acid rain among countries
in Eastern Asia.  It noted with appreciation the offer by some countries to extend their cooperation to
interested countries not presently part icipating in international networks.
8. The Forum also took note of recent regional and international initiatives that are supportive of
implementation of the IPF proposals for action, incl uding the strengthening of the Sub-Network of
Protected Areas of the Amazon, agreed by the Minist ers of Environment of the Parties to the Amazon
Cooperation Treaty, in March 1998;  recent developments within the framework of the Central
American Convention on Forests;  the regional workshops on IPF implementation held in Indonesia in
February 1998, in Senegal in April 1998 and in Chile in June 1998, under the auspices of the Foodand Agriculture Organization of the United Natio ns (FAO) Regional Forestry Commissions for Asia
and the Pacific, Africa and Latin America and the Caribbean;  the Ministerial Conference on the
Protection of Forests in Europe held in Portugal  in July 1998;  and the G-8 Forest Action Program
endorsed by G-8 Heads of State in May 1998 in Engl and (the Group of Eight, or G-8, comprises the
United States of America, Japan, Germany, Fran ce, Italy, the United Kingdom, Canada and the
Russian Federation).
Proposals for action
9. The Forum agreed that the following are particularly important for the implementation of IPF
proposals for action:
(a) Provision, taking into consideration the relevant chapters of Agenda 21
c and
paragraph 10 of the Non-legally Binding Authoritative Statement of Principles for a
Global Consensus on the Management, Cons ervation and Sustainable Development
of All Types of Forests (Forest Principles)d by the international donor community,
including international organizations and international financial institutions of
increased financial resources, including through innovative strategies to mobilize
finance, technical assistance and transfer of environmentally sound technology at the
international and domestic levels, as well as through better use of existingmechanisms and measures, to support national forest programmes in developing
                                                     
b See 1979 Convention on Long-Range Transboundary Air Pollution and its Protocols  (United Nations
publication, Sales No. E.96.II.E.24).
c Report of the United Nations Conference on En vironment and Developmen t, Rio de Janeiro,
3-14 June 1992, vol. I, Resolutions Adopted by the Conference  (United Nations publication, Sales No. E.93.I.8
and corrigendum), resolution I, annex II.
d Ibid., annex III.WT/CTE/W/140
Page 5
countries, including countries with low forest cover and particularly the least
developed countries;
(b) promotion, where appropriate, of an integrated approach by countries through their
national forest programmes as defined by IPF, and in collaboration with international
organizations, to the implementation of the IPF proposals for action and forest-relatedwork as set out under the Convention on Biological Diversity, the United Nations
Convention to Combat Desertification in  those Countries Experiencing Serious
Drought and/or Desertification, particularly in Africa, and the United Nations
Framework Convention on Climate Change;
(c) creation and/or strengthening, by countries and international organizations, of
initiatives, approaches and partnerships, which could include partnership agreements,
to encourage long-term political commitment;  relevant, effective, sustained andreliable donor support;  and participation by the private sector and major groups;  as
well as recognition of the special role of ODA in meeting the needs of developing
countries, in particular least developed countries and countries with low forest cover;
(d) a systematic assessment, by all countries, of the IPF proposals for action and planning
for their implementation in the context of countries’ own national processes aimed atsustainable forest management;
(e) implementation by countries of the IPF proposals for action in the context of their
national forest programmes/national policy framework in a coordinated manner and
with the participation of all interested parties.  Clear objectives and criteria should
help promote effective implementation of sustainable forest management.  The policyframework should be kept under review in order to continue to embody capabilities
for intersectoral planning, coordination and implementation, and adequate resource
allocation;
(f) establishment, by each country, of a focal point to guide and coordinate the
implementation and assessment process of the IPF proposals for action, including theparticipation of all relevant interested parties;
(g) further assistance by the international community to developing countries and
countries with economies in transition in implementing the IPF proposals for action
as needed.  National forest programmes could be used as a framework for channelling
development assistance for implementation.  Such support is particularly needed for
capacity-building, and for creating participatory mechanisms and innovative
financing arrangements.
B. M
ONITORING PROGRESS IN IMPLEMENTATION
Conclusions
10. IFF recognized that there are various aspects to data collection, monitoring, assessment and
reporting.  One aspect relates to assessing progress in implementation of the IPF proposals for action
in terms of existing and, if appropriate, new legislation, policies, programmes and processes.  Anotheraspect relates to assessing trends in the management, conservation and sustainable development of all
types of forests as well as the state of forests, and to make the best use of criteria and indicators for
sustainable forest management.  IFF also recognized that the national implementation of criteria and
indicators and assessing progress is affected by enabling conditions and mechanisms, including
financial and technical resources.  The primary value and benefits of reviewing, monitoring andWT/CTE/W/140
Page 6
reporting is at the national level.  Efforts should be made to make national data timely, accurate and
internationally comparable, as well as transparent and accessible to all interested parties.
11. The collection, assessment, monitoring, organization, reporting and dissemination of data can
involve substantial costs and institutional capacity.  Therefore, efforts should be made to avoid
duplication by utilizing, where appropriate, existing reporting systems of international organizationsand instruments, and by harmonizing, where appropriate, existing monitoring and reporting systems.
12. There is a need to build and strengthen institutional, technical and human capacity at the
national level to enable periodic monitoring of the state of forests in order to measure and report on
policy effectiveness and progress towards sustainable forest management as well as to identify
priority areas of action.  Monitoring, assessment and reporting activities should be integrated into
national forest programmes.  Approaches to strengthening national capacities should be practical and
cost-effective.
13. Cooperation, coordination and partnership among countries and between countries and
organizations would assist capacity-building.  In this regard, greater priority should be given by all
countries to financial and technical assistance programmes and the transfer of technology to help
developing countries to strengthen their capacity for reviewing, monitoring and reporting.
14. There is also a need to develop a better common understanding of key concepts, definitions
and terms at both the national and international levels, as well as greater comparability of data that
permits aggregation at the regional and global levels.  This would assist countries in meeting the
various demands for reviewing, monitoring and reporting on forests by international instruments,
multilateral organizations and various regional and international criteria and indicator processes.
15. Criteria and indicators for sustainable forest management are important tools for reviewing,
monitoring and reporting on the state of and trends in all types of forests and for assessing progress
towards sustainable forest management.  Incorporating the results of criteria and indicators, for
instance, in voluntary national reporting to the Commission on Sustainable Development, as well as to
the FAO global forest resources assessment, national forest programmes reporting, and the State of
the World’s Forests  reporting, would provide useful bases to assess progress towards management,
conservation and sustainable development of all types of forests.
Proposals for action
16. IFF recalled the IPF proposals for action that are relevant to this category (in particular,
E/CN.17/1997/12, paras. 17 (g), 17 (i), 70 (e), 77 (f), 78 (b), 78 (c), 115 (a) and 115 (b)).
17. IFF encouraged countries to:
(a) Prepare national information on the management, conservation, and sustainable
development of all types of forests as the basis for any consolidated information onforests at the international level.  Adequate financial resources, both domestic and
international, should be available for capacity-building and implementation of
national reporting initiatives;
(b) make forest-related information for review ing, monitoring and reporting progress in
implementation of sustainable forest management widely available and accessible topolicy makers and to interested groups, noting the important role that subnational
levels of government and interested groups play in contributing to assessment and
information gathering;WT/CTE/W/140
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(c) report on the implementation of IPF proposals for action in the context of reporting
on forests to the Commission on Sustainable Development at its eighth session,
taking into account, where appropriate, the process used to assess the relevance of the
proposals and priorities for action, the organizations and interested parties involved,
and noting progress made and the areas where new actions could be undertaken;
(d) further develop and implement, with the support of international organizations, as
appropriate, criteria and indicators for sustainable forest management, and use them
as a basis for reviewing, monitoring and reporting national trends in the state of
forests, as well as progress on the management, conservation and sustainable
development of all types of forests;
(e) encourage the donor community to assist developing countries in preparing national
information and reports on forests, recognizing that information collection andreporting are costly activities.
18. IFF encouraged ITFF member organizations a nd other relevant international and regional
organizations to consult with countries regarding collection and synthesis of national information in
order to facilitate accurate reporting with a vi ew to having countries verify the information
synthesized, and give effective feedback on the overall results of data collection and reporting andmake such information widely available and accessible to policy makers and to interested groups.
19. IFF encouraged countries, ITFF member organizations and other relevant international and
regional organizations to:
(a) Develop harmonized, cost-effective, comprehensive reporting formats for collecting
and synthesizing national forest information to meet the diverse demands for reliableand timely data by various forest-related international organizations and instruments.
There is a need to incorporate information on relevant criteria and indicators for
sustainable forest management, including indicators on environmental, social and
economic functions, such as non-wood products, forest resources and services, and
the competitiveness of forest products at the domestic and international levels, intosuch reporting formats in order to reduce reporting burdens on countries and increase
the timeliness and consistency of reporting;
(b) improve the effectiveness of coordination and partnership within countries and with
international organizations and instruments as a means of building the capacity in
developing countries for periodic and timely collection, review, synthesis and
utilization of information related to sustainable forest management.WT/CTE/W/140
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II. MATTERS LEFT PENDING AND OTHER ISSUES ARISING FROM THE
PROGRAMME ELEMENTS OF THE INTERGOVERNMENTAL PANEL ON
FORESTS PROCESS
A. NEED FOR FINANCIAL RESOURCES
Conclusions
20. IFF reiterated the relevance and validity of the IPF proposals for action on financial
assistance.  A substantial increase in financing from all sources, including domestic and international,
public and private, is required for the effective management, conservation and sustainable
development of all types of forests, especially in many developing countries.  It is equally important
to increase efficiency and effectiveness of available resources and existing mechanisms.  Developing
countries, including countries with low forest cover and particularly the least developed countries,need special consideration in financial cooperation to meet their needs for forest products and services
sustainably and sustainably manage their forests, and in some cases, expand their forest cover.
21. IFF recognized the need for greater investment from all sources to promote sustainable forest
management.  Mobilizing new and additional financial resources for sustainable forest management
requires innovative strategies that address the widely increasing need for public financing for forestsas well as the creation of an attractive and adequate policy environment for private investments in
sustainable forest management.  Achieving the sustainable forest management policy goal requires
recognizing the benefits of attaining profitability of sustainable forestry practices while discouraging
unsustainable forest exploitation.  In the case of domestic public and private sources, a major aim is to
increase revenues from sustainably produced forest products and services, including forest-relatedbiological resources, while encouraging the necessary  reinvestment in sustainable forest management.
22. Private-sector investments in sustainable forest  management are generally inhibited by factors
resulting from policy and market imperfections as well as those related to the specific characteristics
of forestry, such as risk and uncertainties associated with long rotation periods and uneven
distribution of benefits and costs over time.  There is a potential for sustainable forest management tobe financially self-sustaining in the long run but bridging financing is often required during the
transition period.
23. The roles of public and private sector financing sources are distinct but complementary and
they should be jointly considered in financing strategies for sustainable forest management.  However,
private sector investment should not be considered a substitute for international public funding,
including ODA.  Both international and domestic public financing have supportive roles to play in the
transition process to sustainable forest management.  The purpose of public sector financing is,inter alia , to promote the enhancement of the environmental, social and economic functions of forests,
whereas that of the private sector is often to generate wealth and create markets in a manner that is
consistent with national policies and regulations.  It is desirable to expand the role of private sector
resources in the financing of sustainable forest management.  The mobilization of private sector
resources often requires policy adjustments in order to create enabling conditions for sustainableforest management such as appropriate legal and institutional frameworks and provision of incentives.
In developing countries, the public funding related to forests, both domestic and international,
including ODA, is needed for capacity-building, leveraging private-sector funding, and financing
environmentally sound development projects and programmes for sustainable forest management
according to national priorities.
24. Financial flows into the forest sector should support and be consistent with the development
and implementation of national forest programmes and initiatives.  In this regard, sustainable forestWT/CTE/W/140
Page 9
management should be considered one of the priorities in domestic financial resource allocation as
well as in programming ODA available for forest-related activities.
25. The more efficient and effective use of all financial resources is enhanced by transparent and
effective administrative and management arrangements, and the involvement and participation of
interested parties.  Adequate institutional capacity is essential for the better absorption and utilizationof existing as well as additional international public funding for sustainable forest management.  The
provision of domestic and international financial resources to strengthen and reinforce institutional
and management capacity in developing countries is therefore necessary.
26. Availability of timely and relevant information on financial flows from all sources and on
financial mechanisms is instrumental in helping countries and their cooperation partners take more
focused actions to support sustainable forest management.  There is therefore a need to develop cost-
effective and efficient information systems.  Country case studies could be useful to furtherunderstand the role of financial flows from different sources and to help ensure effectiveness in
achieving sustainable forest management.
27. In the context of current mandates and frameworks of existing international financial
institutions and programmes, the proposal for establishing an international financial mechanism to
support sustainable forest management was deliberated upon.  In this regard, it was proposed that aninternational fund for forests be established in order to support, inter alia , the additional costs during
the transition period towards sustainable forest mana gement, and that such an international financial
arrangement or mechanism should preferably (a) involve participating donors and beneficiaries in
relevant decision-making, (b) respond to national needs and support national forest programmes, (c)
facilitate internalizing externalities of forests in  promoting sustainable forest management, (d) build
on or link with national financing mechanisms, (e) be transparent and administratively efficient, (f)
complement the financing mechanisms of relevant multilateral agreements, and (g) have secure and
sustained funding sources.  However, reservations were also voiced regarding the establishment of an
international fund for forests.
28. The concept of an international investment promotion entity to mobilize private sector
investment in sustainable forest management deserves further consideration.  Any such entity need
not require the creation of a new organization and could be integrated within existing institutions.
Such an investment promotion entity could cataly se and support activities related to information,
capacity-building, technology transfer, and finance be tween the public and private sectors to facilitate
investment in sustainable forest management.  International financial and investment promotion
mechanisms for sustainable forest management, though independent, could be complementary and
mutually reinforcing.
29. IFF recognized that developed countries should fulfil the commitments they have undertaken
to reach the accepted United Nations target of allocating 0.7 per cent of gross national product to
ODA as soon as possible.
Proposals for action
30. IFF recalled the IPF proposals for action relevant to this programme element (in particular,
E/CN.17/1997/12, paras. 67-71) and called upon countri es and relevant international organizations to:
(a) Increase financial resources and make or intensify efforts to improve the effectiveness
and efficiency of available resources for sustainable forest management, and use
national forest programmes or other integrated programmes as the basis for
channelling, prioritizing and increasing financial assistance to the forest sector indeveloping countries;WT/CTE/W/140
Page 10
(b) give special consideration to developing countries, including countries with low
forest cover and particularly the least developed countries, in financial cooperation to
meet their needs for forest products and services sustainably and sustainably manage
their forests, and in some cases expand their forest cover;
(c) encourage private investments in sustainable forest management by providing a stable
and transparent investment environment wi thin an adequate regulatory framework
that also encourages the reinvestment of forest revenues into sustainable forest
management;
(d) undertake activities for systematic collection and analysis of financial flows data in
the forest sector in order to enable informed and rational policy decisions based on
reliable information;
(e) explore the feasibility of operationalizing an investment promotion entity taking into
account the functions and circumstances under which such an entity would operate as
well as its scope in relation to the existing financial mechanisms.
31. The Forum discussed but was not able to reach consensus on the following proposals for
action:
(a) Continue further exploration, identification, and development of new and improved
and more effective financial mechanisms, and further explore the potential and results
of innovative use of existing mechanisms to promote sustainable forest management,
taking into account the full range of goods and services, including forest related
biological resources, and sharing experience and information on such mechanisms;
(b) create an international forest fund to support, inter alia , the additional costs during
the transition period towards sustainable forest management;
(c) make full use of the potential of existing mechanisms, such as GEF, consistent with
their mandates, and explore options to expand their scope/and review their scope for
financing a wider range of sustainable forest management activities;
(d) consider the need for preparing a study integrating such issues as the valuation of
forest goods and services, including biological resources, and the international trade
of forest goods, taking due account of the effects of international restrictions, such as
tariff escalations, and other protective measures.
B. TRADE AND ENVIRONMENT
Conclusions
32. Mutually supportive trade and environment policies can effectively promote the achievement
of the management, conservation and sustainable development of all types of forests.  Given that tradeand environment policies have their specific objectives, decision makers, including trade partners,
should contribute to achieving trade in wood and non-wood forest products and services from
sustainably managed forests, and implement policies and actions, in particular, avoiding policies that
have adverse effects, either on trade or on the sustainable management of all types of forests.  It is
important to take into account the needs of developing countries for social and economic developmentand environmental protection, in particular poverty alleviation.
33. The impact that international trade in wood and non-wood forest products has on sustainable
forest management can be both positive and negative.  Trade liberalization adds value to the resourceWT/CTE/W/140
Page 11
and has the potential to promote economic development, contribute to poverty alleviation and reduce
environmental degradation, provided it is accompanied by sound environmental and social policies.
However, trade liberalization must not be a vehicle for undermining domestic environmental and
health standards which are consistent with international trade rules.  Countries should study the
positive and negative impacts of trade policies on sustainable forest management.  The UruguayRound of multilateral trade negotiations yielded significant reductions to tariffs affecting forest
products.  Special attention should be given to remaining and emerging trade restrictions which
constrain market access, particularly for value-added products.  Trade measures intended to promote
sustainable forest management should not constitute a means of arbitrary or unjustifiable
discrimination or a disguised restriction on international trade.
34. IFF recognized the potential role of voluntary certification of forest management and
labelling of forest products as among the potential tools in promoting sustainable forest managementand differentiating forest products and services in the market.  However, more practical experience is
necessary to reach conclusions on the effectiveness of such programmes.  Moreover, unsuitable
design or non-transparent application of such schemes may in some cases lead to unjustified obstacles
to market access.  In particular, small and medium-sized forest owners and enterprises, including
those of developing countries, may find it excessively costly to implement certification and/orlabelling schemes.  In the context of these issues, IFF took note of the work of the World Trade
Organization (WTO) with regard to voluntary eco-labelling schemes.  The proliferation of
certification and/or labelling schemes calls for further cooperative work, in line with IPF
recommendations, towards achieving their international comparability and considering their
equivalency while taking into account the diversity of national and regional situations.
35. Forest products and services and their substitutes should be adequately valued through full-
cost internalization, which in turn would influence competitiveness of these products and services.  In
this context, countries should undertake analyses of the implications of such valuation on forest
management and economic development.  Countries should also implement full-cost internalization
strategies for forest products and services and their substitutes, taking into consideration the potentialcosts and benefits of improved efficiency and sustainability of the forest sector.
36. Some available studies carried out on the relative full life-cycle analysis of the environmental
impacts of forest products, and their substitutes suggest that the former may be preferable, but further
work on such life-cycle analysis is needed.
37. The nature and extent of illegal trade in wood and non-wood forest products, including forest
related biological resources, is a serious concern due to damage to ecosystems, loss of biodiversity,
lost revenue by Governments, forest owners and local and/or indigenous communities, and distortionof markets for forest products and services.  National policies and international cooperation are
important to reduce illegal trade wi th the aim towards its elimination.
38. Recent changes in the markets for forest products, such as those caused by the recent financial
crisis, have raised concerns on the ability to continue the implementation of measures aimed at
sustainable forest management but have at the same time increased the need for it.  The long-termimpacts of such unpredictable events on efforts to promote sustainable forest management need
examination and monitoring.  Such situations highlight the need to develop strategies for sustainable
forest management with a long-term perspective so that the negative effects of short-term market
changes can be minimized.
39. Developing countries with low forest cover and small island countries have special problems
in developing their forest sectors to meet local needs for forest products and services.  They depend,
in many areas, on other countries to satisfy their needs for forest goods and services.  Trade is
essential to meet such needs, and international economic and trade policies may have serious impacts
on the efforts of these countries to expand and rehabilitate their forest cover.WT/CTE/W/140
Page 12
40. Increased market transparency is essential in order to improve the market access for forest
products and services, including those coming from sustainably managed forests.e  In this regard, the
role of the private sector is vital but action is also needed by all interested parties to improve market
transparency.  A better understanding by both prod ucers and consumers of the potential relationship
between trade in forest products, forest services and their substitutes and sustainable forestmanagement could help to promote responsible choices in the supply and demand for forest products,
forest services and their substitutes.
Proposals for action
41. IFF stressed the importance of implementing the IPF proposals for action on trade and
environment.  In order to further their effective implementation IFF:
(a) Urged countries, including trade partners, to contribute to achieving trade in wood
and non-wood products and services from sustainably managed forests, andimplement policies and actions, in particular avoiding policies that have adverse
effects, either on trade or on sustainable forest management;
(b) urged countries, international organizations, including WTO
f  and other interested
parties to undertake, as appropriate, further cooperative work on voluntary
certification and/or labelling schemes, in line with the recommendations of IPF, whileseeking to enhance their international comparability and considering their
equivalence, taking into account the diversity of national and regional situations, and
to ensure adequate transparency and non-discrimination in the design and operation
of such schemes, and are consistent with international obligations so as to promote
sustainable forest management and not to lead to unjustifiable obstacles to marketaccess;
(c) urged countries to undertake analyses of the implications of full-cost internalization
on forest management and economic development and implement full-cost
internalization strategies for forest products and services and their substitutes;
(d) requested countries, international organizations and other interested parties to
undertake further work on full life-cycle analysis of the environmental impacts of
forest products and their substitutes;
(e) called upon all interested parties to take action to improve market transparency,
taking into account the role of the private sector, to help promote responsible
producer and consumer choices in the supply and demand for forest products, forest
services and their substitutes;
(f) called upon countries to consider appropriate national-level actions and promote
international cooperation to reduce the illegal trade in wood and non-wood forest
products including forest related biological resources, with the aim of its elimination;
(g) urged countries to develop strategies for sustainable forest management with a long-
term perspective so that the negative effects of short-term market changes, such as the
recent regional financial crises, can be minimized;
                                                     
e The Forum discussed but could not reach consensus on the specific reference to "including those
coming from sustainably managed forests".
f The Forum discussed, but could not reach consensus to the specific reference to WTO in this context.WT/CTE/W/140
Page 13
(h) urged countries to recognize the special importance of imports of forest products for
countries with low forest cover and fragile forest ecosystems, and small island
developing States to satisfy their needs for forest products and services to assist them
in expanding and rehabilitating their forest cover.
42. The Forum discussed but was not able to reach consensus on the following proposal for
action:
"Supported continued efforts by countries and the World Trade Organization towards trade
liberalization giving special attention to removing remaining and emerging trade restrictions
which constrain market access, particularly for value added forest products;".
C. TRANSFER OF ENVIRONMENTALLY SOUND TECHNOLOGIES TO SUPPORT SUSTAINABLE FOREST
MANAGEMENT
Conclusions
43. IFF reiterated the importance of the Forest Principles, chapter 34 of Agenda 21, the
Programme for the Further Implementation of Agenda 21 (General Assembly resolution S-19/2,
annex) and decision 6/3 adopted by the Commission on Sustainable Development at its sixth session,
to the transfer of environmentally sound technologies in support of the management, conservation and
sustainable development of all types of forests.  IFF emphasized the strong links among sustainableforest management and transfer of technologies, capacity-building and institution-building,
investment and financing from both public and private sources.
44. Although not every constraint to sustainable forest management can be alleviated by the
transfer of technology, IFF emphasized that impr oved access to a nd utilization of environmentally
sound technologies have great potential for enhancing sustainable forest management.  Indeed, policyenvironments and measures favourable to sustai nable forest management and investment are as
important as the availability and appropriate application of the technologies themselves.
45. Efforts to enhance technology cooperation through the development, transfer and diffusion of
environmentally sound technologies should recognize the important but differentiated contributions of
the public and private sectors, while stressing the governmental role in developing and fostering anenabling policy, legal and institutional framework.
46. National forest programmes, as described in the report of IPF on its fourth session (see
E/CN.17/1997/12, para. 17 (a)), should facilitate development and transfer of environmentally sound
technologies in support of sustainable forest mana gement and forest products processing.  There is a
need to further the participation of interested pa rties in forest-related technology development and to
facilitate efficient adaptation and use of technologies and know-how, in accordance with national
legislation, through partnerships among the public and private sectors, including research centres,universities and companies, and indigenous people, local communities and non-governmental
organizations.
47. There is a wide range of available environmentally sound technologies, particularly in
developed countries, that can support sustainable forest management.  The policies, actions and types
of financing that are needed for efficient selection, transfer, adaptation and use of these technologiesvary, depending on the type of technology, local conditions and intended use.  They should be
demand-driven and consistent with national priorities for sustainable forest management, as expressed
in management, conservation and sustainable development of all types of forests and, where
appropriate, should be reflected in national forest programmes.  IFF stressed that the international
community should promote, facilitate and finance, as appropriate, access to and transfer ofenvironmentally sound technologies and the corresponding know-how, in particular to developingWT/CTE/W/140
Page 14
countries, on favourable terms, including concessional and preferential terms, as mutually agreed,
taking into account the need to protect intellectu al property rights as well as the special needs of
developing countries for the implementation of Agenda 21.
48. Efforts for the comprehensive assessment of technology needs and suitability have been
insufficient so far.  Many countries, in particular developing countries, need to strengthen theircapacities for assessment of the environmental soundness, economic sustainability and social impacts
of technologies.
49. Developing low forest cover countries have technological needs related to, in particular,
afforestation for land rehabilitation, reforestation and restoration of degraded forests and for
sustainable management of existing, often unique, forests.
50. Opportunities do exist to finance and support North-South technology transfer through ODA.
Further opportunities also exist to finance and support North-South cooperation in technology transferthrough public and private partnerships, joint ventures and foreign direct investments.  There is also
an important role for international organizations in the dissemination and facilitation of transfer of
existing knowledge.  Efficient and effective priv ate-sector involvement in North-South technology
transfer depends on mutual interests and an appr opriate enabling environment, including promoting
policy instruments aimed at creating a favourable environment to attract foreign private investment.
International and regional organizations have an important role to play in the field of forest-related
technology transfer.  Regional networks could contribute to a more effective and efficient use of
already existing technologies.
51. South-South cooperation is complementary to North-South transfer of technology and know-
how.  There is potential for further strengthening of South-South transfer of technology and know-how.  Technologies generated in the South may be more accessible, more applicable and less costly
and have greater potential for diffusion than some technologies developed in the North.
Environmentally sound indigenous technologies, including traditional forest-related knowledge,
should be given special attention, as appropriate, and transfer of such technologies or know-how must
be carried out with the consent of the holder and according to national legislation.
52. IFF recognized the importance of technologies related to biological resources (as defined by
the Convention on Biological Diversity) of forests.  In this respect, cooperation between developed
and developing countries should be strengthened on transferring and, as required, developing
technologies for the sustainable use of biological resources (as defined by the Convention on
Biological Diversity) of forests, as they relate to the management, conservation and sustainable
development of all types of forests consistent with and building on progress under the Convention on
Biological Diversity and without prejudice to the commitments undertaken by parties to theConvention within its scope.
53. To date, relatively little attention has been given to the need for increased technology and
know-how diffusion to end-users through forest extension services.  Some countries have, to that end,
effective mechanisms and/or extension programmes, which have a significant potential to be emulated
by a broader set of countries.
54. There is an urgent need for implementation of modern, appropriate environmentally sound
wood energy technologies, which would enable more efficient use of waste and by-products created
by forest logging and wood processing, as well as wood harvested for fuelwood, for both industrial
and household uses.
55. Focused attention should be given to gender mainstreaming related to capacity-building and
technology transfer, particularly in the context of wood energy use, tree cultivation for household
energy use, sustainable forest management and tenure, and ownership of forests and lands designatedWT/CTE/W/140
Page 15
for afforestation.  Appropriate technologies for the use of wood as an energy source at the rural
household level have a great potential to enhance the health and socio-economic status of women in
many developing countries.
Proposals for action
56. IFF stressed the importance of implementing the IPF proposals for action on the transfer of
environmentally sound technologies.  In order to further their effective implementation, IFF:
(a) Urged countries, consistent with decisi on 6/3 of the Commission on Sustainable
Development as well as paragraph 77 of the IPF proposals for action
(E/CN.17/1997/12), to initiate actions to wards the broadening and development of
mechanisms and/or further initiatives to enhance the transfer of technology from
developed countries to developing countries to promote sustainable forest
management;
(b) urged all countries to develop an enabling policy, legal and institutional framework
that encourages appropriate public and private sector investments in environmentally
sound technologies for sustainable forest management in line with the respective
national forest programmes, where applicable;
(c) urged countries and relevant international organizations to support the strengthening
of cooperation between institutions to facilitate the assessment of needs for adaptation
and transfer of forest-related environmentally sound technologies through North-
South and South-South cooperation.  Those institutions recognized as centres of
excellence should act as clearing houses, in line with Agenda 21, chapter 34, in order
to expedite the flow of these technologies;
(d) urged all countries to recognize the importance of the transfer of technologies to
developing countries and economies in transition, including human and institutional
capacity-building, as an integral part of the process of investment and sustainable
development;  and the importance of combining technology transfer with training,
education and institutional strengthening in order to promote effective use and broaddissemination of environmentally sound technologies;
(e) urged all countries, in particular developed countries, to take further concrete
measures to promote and facilitate the transfer of environmentally sound technologies
to developing countries on favourable terms, including on concessional and
preferential terms, as mutually agreed, taking into account the need to protect
intellectual property rights in accordance with the relevant international and domestic
laws, in order to put into further practice the recommendations of Agenda 21, theCommission on Sustainable Development and IPF, and in this context to mobilize
further support for the development and application of appropriate technologies and
corresponding know-how within these c ountries to enhance their capacities to
implement sustainable forest management;
(f) urged countries and relevant international organizations to consider practical
measures to promote the diffusion of environmentally sound technologies to end-
users, particularly in local communities in developing countries, through the efficient
use of extension services;
(g) urged countries and relevant international organizations to enhance partnerships, and
to initiate, as appropriate, coordinate and cooperate in forest-related technical andWT/CTE/W/140
Page 16
financial assistance and capacity-building in respect of the transfer, development and
application of environmentally sound technologies;
(h) encouraged countries, with the cooperation of international organizations, to promote
appropriate transfer of environmentally sound rehabilitation technologies for the
sustainable management of forest ecosystems in environmentally critical areas, and todevelop appropriate means to promote shar ing of environmentally sound technologies
between and within countries, including effective links between research, extension
and implementation;
(i) underscored the importance of assisting developing countries with low forest cover
and those with fragile forest ecosystems in their efforts in respect of capacity-building
that would facilitate the development and transfer of environmentally sound
technologies to address those needs;
(j) urged countries to promote fair and equitable sharing of the benefits arising from the
utilization of forest genetic resources (as defined by the Convention on Biological
Diversity) and the results and applications of research, upon mutually agreed terms,
and to work, as necessary, on addressing issues of the identification of origins of
forest genetic resources within their intellectual property rights, sui generis  or other
relevant systems for protection, as appropriate, taking into account the work being
advanced by the Convention on Biological Diversity and other relevant international
agreements, in accordance with national laws;
(k) the Forum also discussed but could not conclude the debate or reach consensus on the
proposal to encourage countries to develop appropriate mechanisms and/or measuresto enable indigenous people, local communities and forest-dependent groups to
realize the potential benefits of traditional forest-related knowledge in accordance
with the Convention on Biological Diversity, through the establishment and
enforcement of intellectual property rights linked to this knowledge, including the
giving of due recognition to the use of traditional forest-related knowledge in patentapplications for technologies;
(l) urged all countries, in particular developed countries, to pursue actions that would
facilitate the transfer, development and application of environmentally sound
technologies for and analyse the implications of the use of wood and non-wood by-
products created by forest harvesting and wood processing for industrial and domestic
purposes, giving special attention to wood-waste materials as an energy source;
(m) called upon countries to undertake steps to ensure equal opportunities for women, in
particular indigenous women and women in rural areas, to become beneficiaries of
environmentally sound forest-related technologies, know-how and extension services;
(n) urged countries to strengthen outreach programmes targeted at women in the areas of
education, training and microcredit, related to community development programmes
and household use of wood, wood lots for fuelwood and energy-efficient cooking
technology;
(o) urged countries and relevant international organizations to use data and information
that are disaggregated by gender in sectoral surveys and studies used in the
development of technologies for sustainable forest management policies and projects.WT/CTE/W/140
Page 17
D. ISSUES THAT NEED FURTHER CLARIFICATION
1. Underlying causes of deforestation and forest degradation
Conclusions
57. IFF reiterated the need for the implementation of the proposals for action on this programme
element adopted by IPF, and noted their continuing relevance and validity.  In this context, it notedthe recommendations of the global workshop held in Costa Rica in January 1999.
58. To overcome major obstacles when addressing the underlying causes of deforestation and
forest degradation, IFF stressed the importance of  policy consistency inside and outside the forest
sector.  Furthermore, it emphasized the need for effective policy coordination for addressing
underlying causes of deforestation, which are often interrelated and social and economic in character,
and include poverty;  lack of secure land tenure patterns;  inadequate recognition of the rights and
needs of forest-dependent indigenous and local communities within national laws and jurisdiction;inadequate cross-sectoral policies;  undervaluation of forest products and services;  lack of
participation;  lack of good governance;  absence of a supportive economic climate that supports
sustainable forest management;  illegal trade;  lack of capacity;  lack of enabling environment, at both
the national and international levels;  and national policies that distort market and encourage forest
lands conversion to other uses, including in low forest cover lands.  It was further noted that theunderlying causes of deforestation and forest degradation as well as the approaches to deal with them
are often country specific and therefore vary among countries.
59. IFF continued to recognize the need for analysis at the national and international levels of the
sequence of causes contributing to changes in the quantity and quality of forests, in particular by using
the diagnostic framework referred to in the report of IPF on its fourth session (see E/CN.17/1997/12,para. 31).
60. IFF, while recognizing the important role of Governments in establishing national policies in
their respective countries towards attaining sustainable forest management, stressed that the private
sector, both in developing and developed countries, also has an important role to play in forest policy
development and implementation.  Combating deforestation requires the involvement of many actors,including national and subnational Governments, civil society, forest owners, international
organizations, the private sector, research organiza tions, and international and bilateral aid agencies.
Broad participation of indigenous and local communities (including indigenous people and other
forest-dependent people practising traditional lifestyles, forest owners and local communities, many
of whom possess important traditional forest-relat ed knowledge;  see General Assembly resolution
S-19/2, annex, para. 37) and women in forest-related processes is needed.  All actors need to work
together to initiate processes, both at the nati onal and international levels, to address effectively
underlying causes of deforestation and forest degradation.
61. A major challenge which now lies ahead concerning deforestation is the implementation of
the IPF proposals for action.  For developing countries, this involves responding to political, financial
and technical needs and priority to national forest policies and programmes;  for country donors and
international organizations, it involves more focused cooperation and coordination in support of theirefforts on agreed priority areas for action.
62. The valuation of all goods and services, including biological resources (as defined by the
Convention on Biological Diversity) provided by fo rests, is needed to realize its importance compared
with other land uses.  Inadequate valuation of natural forests is an important underlying cause of
deforestation.  The non-valuation of non-marketable environmental and social services of forests is amarket failure, and inappropriate subsidies that encourage conversion of forested lands should be
discouraged.  Deforestation is closely related with the lack of economic and financial competitivenessWT/CTE/W/140
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of sustainable forest management compared with other alternative uses of the land.  Current economic
valuation of forest resources has often resulted in inadequate incentives for sustainable resource use,
which in turn induce environmental degradation.  The pricing of forest goods and services as well as
their substitutes should include environmental and social costs and benefits.  In relation to this, the
Forum underlines the importance of its work on valuation (see programme element II.d (v)) andeconomic instruments (see programme element II.d (vi)).
Proposals for action
63. IFF recalls the following IPF proposals for action relevant to this programme element (see
E/CN.17/1997/12, paras. 17 (e), 17 (f), 27 to 31, 67 (g), 70 (c) and 77 (f)).
64. IFF stressed the importance of implementing the IPF proposals for action on underlying
causes of deforestation and forest degradation, with particular emphasis on the needs and
requirements of low forest cover countries and countries with fragile forest ecosystems.  In order tofurther their effective implementation, IFF encouraged countries, with the assistance of international
organizations, donor countries and financial institutions, to implement the following additional
proposals through partnerships involving, where appropriate, the participation of government
institutions, non-governmental organizations, comm unity-based organizations, indigenous and local
communities, forest owners and the private sector:
(a) Further study and take practical measures to address the chains of causality of the
underlying causes of deforestation and forest degradation within each country,
including the impact of poverty and the impact of processes outside the forest sector;
(b) create appropriate procedures in order to promote effective participation of all
interested parties in decision-making about forest management;
(c) support appropriate land tenure law and/or arrangements as a means to define clearly
land ownership, as well as the rights of indigenous and local communities and forest
owners, for the sustainable use of forest resources, taking into account the sovereign
right of each country and its legal framework;
(d) develop mechanisms, as appropriate, to improve land access and use of forest
resources on a sustainable basis;
(e) support capacity-building in communities, in particular for those with responsibilities
in forest management, including in low forest cover countries, and create awareness
in the society at large on the importance of issues related to deforestation and forest
degradation;
(f) support and promote community involvement in sustainable forest management
through technical guidance, economic incentives and, where appropriate, legalframeworks;
(g) promote maintenance and enhancement of forest resources through sustainable forest
management practices, and promote the creation of new forest resources through the
establishment of planted forests and other means, such as rehabilitation of degraded
forests, taking into consideration their soci al, cultural and environmental impacts, and
economic costs and benefits;
(h) identify and measure internalization of externalities, and introduce positive incentives
in both the forest and non-forest sectors that may help combat deforestation and forest
degradation;WT/CTE/W/140
Page 19
(i) support local community programmes for capacity-building and credit facilities, and
facilitate access to domestic and external markets of forest products and services;
(j) request international financial institutions to analyse the impacts of foreign debt on
deforestation and forest degradation, and request international financial institutions to
explore, in cooperation with donor and recipient countries, innovative financialapproaches and schemes for helping countries to promote sustainable forest
management.
65. IFF invited international financial institutions to strengthen transparency in decision-making
as it affects sustainable forest management, and to ensure that their policies support sustainable forest
management.
66. IFF also invited countries to use national forest programmes, as appropriate, or other relevant
programmes to involve indigenous and local communities and women to participate in theformulation and implementation of measures that aim to protect their rights and privileges in relation
to forest lands, traditional forest-related knowledge and forest biological resources (as defined by the
Convention on Biological Diversity).
67. IFF encouraged ITFF member organizations to support the elaboration of a comprehensive
study of land tenure issues related to deforestation and forest degradation.
2. Traditional forest-related knowledge
Conclusions
68. The involvement of indigenous people and local communities (including indigenous people
and other forest-dependent people practising traditional lifestyles, forest owners and local
communities, many of whom possess important traditional forest-related knowledge;  seeGeneral Assembly resolution A/S-19/2, annex, para. 37) and the understanding and use of their
traditional knowledge, as well as recognition of their rights to the natural resources in their traditional
areas within national laws and jurisdiction, can support the formulation, design, implementation and
monitoring of policies towards sustainable forest management.  The sharing and application of this
knowledge can help interested parties to avoid procedures that impact unfavourably on ecosystemsand local social systems.  Traditional knowledge can complement new technologies, and might be
adapted and used more widely.  In this context, IFF recalled relevant IPF proposals for action (in
particular, E/CN.17/1997/12, para. 40 (r)).
69. IFF recognized the need to further explore the modalities for promoting greater recognition,
respect and protection of traditional forest-related knowledge involved in sustainable forest
management.  Further understanding of the role of traditional forest-related knowledge in sustainable
forest management can be achieved by identifying traditional systems that promote management,conservation and sustainable use of forest resources, in accordance with article 8 (j) and other
provisions of the Convention on Biological Diversity and proposals for action derived from the
IPF/IFF process.
70. Several processes relevant to the application and development of legal and other forms of
protection of traditional forest-related knowledge are being addressed through different internationalorganizations and instruments.  There should be a close cooperation and coordination between the
work of the Convention on Biological Diversity and the implementation of IPF/IFF proposals for
action.  While recognizing the importance of the work of the World Intellectual Property Organization
(WIPO) and the Convention and of effective protection mechanisms for traditional knowledge
systems and practices, and recalling the proposed memorandum of understanding between WIPO andthe Convention, IFF stressed the importance of ong oing work to develop a common appreciation andWT/CTE/W/140
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understanding of the relationship between the intellectual property rights, sui generis  or other relevant
systems for protection, and the Convention on Biological Diversity.
71. In keeping with Agenda 21, chapter 26, and also noting the relevant International Labour
Organization (ILO) convention, IFF recognized the cr itical importance of the rights of indigenous and
local communities to participate in the conservation and management of all types of forests and forestbiological resources.
72. IFF noted and welcomed the establishment of the Ad Hoc Open-ended Inter-sessional
Working Group on article 8 (j) and related provisions of the Convention on Biological Diversity, in
which indigenous and local communities are participating.
Proposals for action
73. IFF recalled IPF proposals for action relevant to this programme element (in particular,
E/CN.17/1997/12, paras. 40 (a) to 40 (r) and 132 (c)).
74. IFF called upon countries to:
(a) Implement effective measures to recognize, respect, protect and maintain traditional
forest-related knowledge in sustainable forest management, including forest
biological resources (as defined by the Convention on Biological Diversity) within
their intellectual property rights, sui generis  or other relevant systems for protection,
as appropriate, taking into account the relevant work being advanced by the
Convention on Biological Diversity and other relevant international agreements;
(b) promote fair and equitable sharing of benefits, including consideration of payments,
where appropriate, arising from the use of such knowledge, innovations and practices,
in accordance with, inter alia , article 8 (j) and related provisions of articles 15, 16 and
19 of the Convention on Biological Diversity and other relevant international
agreements and taking into account national law, with the holders of such knowledge,
innovations and practices;
(c) work with relevant international organizations to help to develop a common
appreciation and understanding of the relationship between the intellectual propertyrights, sui generis or other relevant systems for protection, and the Convention on
Biological Diversity, including work, as necessary, on addressing issues related to the
identification of origins of traditional fore st-related knowledge, and of the knowledge
that results from the use of forest genetic resources (as defined by the Convention on
Biological Diversity), with a view to pr otecting such knowledge from inappropriate
use;
(d) develop or strengthen, as appropriate, and implement, at the national level, legislation
and policies to achieve objectives under article 8 (j) and related provisions of the
Convention on Biological Diversity, and support efforts by relevant international
organizations and institutions regarding the protection and application of traditional
forest-related knowledge, which can in clude the development of guidelines, in
accordance with their mandates.
75. IFF invited the Conference of Parties of the Convention on Biological Diversity, with the
participation of indigenous people and local communities, through the Ad Hoc Open-Ended
Inter-Sessional Working Group, in its programme of work, under the related provisions of the
Convention on Biological Diversity, to include options for collecting, recording, applying and
locating traditional forest-related knowledge, recognizing the need to foster the wider application ofWT/CTE/W/140
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such knowledge, innovations and practices, with the approval and effective involvement of the
holders throughout the process.
3. Forest conservation and protected areas
Conclusions
76. IFF noted the outcome of the in-depth study on the theme "International forest conservation:
protected areas and beyond", sponsored by the Government of Australia, and the recommendations of
the international expert meeting on protected forest areas sponsored by the Governments of the United
States of America and Brazil.
77. The Forum recognized the importance of an ecosystem approach which underlines forest
conservation and protection as an integral component of sustainable forest management.  The
establishment and management of protected forest areas within an ecosystem approach can contribute
significantly to local economies and non-market benef its to society in the form of flood control, soil
and watershed protection, and other ecological services essential to human well-being.
78. The Forum acknowledged that existing protected areas are important in protecting a number
of forest values and represent considerable effort and achievement on the part of all concerned in their
establishment and management.  However, it was noted that fragmentation of forest land may be a
constraint to the effective protection of biodiversity and ecological functions of forest areas.  In anumber of countries, existing protected areas are no t, in themselves, sufficient to maintain forest
conservation objectives.  Forest conservation cannot be based solely on a rigid demarcation between
protected areas and all other forms of land use, in particular commercial forest use.  Where possible,
protected areas should form part of a landscape continuum, where the conservation of biological
diversity, environmental services and other values are also accorded priority in the wider context ofother forest management and land-use practices in surrounding areas.
79. Most countries have adopted legislation, policies and strategies towards landscape
management, biological diversity, forest conservation and protected areas.  However, implementation
and enforcement of these policies and laws in many countries is inadequate.  Insufficient coordination
of conflicting policies and practices, inappropriate implementation strategies and lack of political willand financial and human resources are widely recognized as the major reasons for the failure to
achieve forest conservation goals in some countries.  The effectiveness of the management of
protected areas can be assessed in terms of security of status through the implementation of
appropriate legislation, the effectiveness of protection of biodiversity and ecological values,
institutional capacity, positive social impacts and the level of support from indigenous and local
communities (including indigenous people and other forest-dependent people practising traditional
lifestyles, forest owners and local communities, ma ny of whom possess important traditional forest-
related knowledge;  see General Assembly resolution S-19/2, annex, para. 37), and adequate financial
support at both the national and international levels.
80. There are several existing categories of protected areas.  The one developed by the World
Conservation Union (IUCN) World Commission on Protected Areas is being used by many countries,
United Nations institutions and major groups.  IUCN  is currently working with other organizations
and countries to interpret the categories for use in national and international statistics.  The categories
need to be more flexible in order to encompass th e wide range of forest protection regimes existing in
various countries.  There is also a need to develop common understanding on the key concepts,
definitions and terminology concerning management regimes consistent with forest conservation
inside and outside protected areas.  In establishing and managing protected forest areas andidentifying them with appropriate categories, consideration should be given to their value as
representative of unique forest types, their potential to generate information on ecological processes,WT/CTE/W/140
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conservation of biodiversity and environmental services, and their impact on the indigenous and local
communities and others depending on them for sustenance.
81. The forest sector is affected by policies that concern both public- and private-sector activities
and by activities in other sectors.  Many non-forest-sector policies, such as those related to regional
development, resettlement, trade, structural adjustment and agriculture, may have intended orunintended profound perverse impacts on forest conservation goals.  The success of efforts to achieve
forest conservation will be enhanced with effective cross-sectoral linkages and coordination.
82. A greater awareness of the social, cultural, economic and environmental benefits, especially
biological resources, of forest conservation and pr otected forest areas can help to generate public
support and resources for forest conservation.  Many civil society actors have an interest in forest
conservation.  The convergence of interests of indigenous and local communities and of protected
forest areas needs to be further explored and identifi ed so as to allow the effective participation of all
interested parties.  A variety of partnerships and international cooperation schemes, operating at
different geographical scales at national and international levels and with different objectives, may be
useful to the support of forest conservation and protected areas.
Proposals for action
83. The Forum recalled the proposals made by the Intergovernmental Panel on Forests for action
relevant to this programme element (see, in particular, E/CN.17/1997/12, paras. 17 (f), 17 (i), 58 (b)
(v), 67 (f) and 77 (f)).
84. The Forum invited countries to implement, with  the assistance of international organizations,
donor countries and financial institutions, the proposals for action of this new programme element
through partnership mechanisms involving, where appropriate, the participation of governmentalinstitutions, non-governmental organizations, co mmunity-based organizations, and indigenous and
local communities.
85. The Forum encouraged countries to:
(a) Commit themselves to the protection, conservation and representativeness of all types
of forests, consistent with national forest policies and programmes that recognize thelinkage between forest conservation and sustainable development.  This commitment
may be achieved through a range of conservation mechanisms, reflecting varying
national circumstances, applied within and outside of protected forest areas, and the
complementary roles of protected forest areas and other sustainable forest
management activities — for example, the production of wood and non-wood
products and services, where forest conservation is promoted by other means;
(b) develop and implement appropriate strategies for the protection of the full range of
forest values, including cultural, social, spiritual, environmental and economic
aspects;  recognition of the multiple functions and sustainable use of all types of
forests, with particular regard to biologic al diversity;  participation of communities
and other interested parties;  integration of the livelihood needs of indigenous and
local communities;  and planning and management on an ecosystem basis, in whichspecial emphasis should be put on the continued integrity of genetic diversity;
(c) develop and implement forest management mechanisms, as appropriate, that provide
for partnerships and the participation of forest owners and of indigenous and local
communities in support of forest conservation initiatives for sustainable forest
management within the legal framework of each country;WT/CTE/W/140
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(d) develop financial support mechanisms to engage all interested parties, in particular
forest owners and the private sector, in the planning and management of protected
forest areas;  and recognize protected forest areas under the stewardship of private
forest owners or indigenous and local communities;
(e) develop and apply consistently, as needed, criteria based on the adequacy,
consistency and effectiveness of protected areas, following an ecosystem approach
and incorporating reserve design principles that identify the need for new protected
areas critical to the protection and maintenance of environmental services.  In this
regard, consideration should be given to li nking protected areas, where possible, with
corridors and buffer zones in order to form networks;
(f) develop and implement a range of innovative mechanisms for financing and
encouraging forest conservation, including economic incentives, voluntaryguidelines, forest regulations, private contracts, taxes and charges, reinvestment of
returns from protected areas, forest-related industries, and environmental services in
forest conservation;  tax deductions for private forest conservation;  direct charges for
protected area use;  and possible returns from carbon sequestration, in accordance
with, and within the context of the implementation of relevant articles of theKyoto Protocol and the United Nations Fr amework Convention on Climate Change;
(g) contribute to a global and regional assessment of the current status of protected forest
areas, including total number, extent of each area, objectives of establishment,
effectiveness of management, IUCN-system equivalent category, and basic biological
and social information available.  This can assist in the establishment of bio-geographically balanced networks of protected forest areas.
86. The Forum encouraged countries that share ecologically important or unique transboundary
forests to establish joint protected forest areas, including ecological corridors of regional and/or global
significance, and establish agreed guidelines concerning their collaborative management.
87. The Forum called upon countries, international financial institutions and other donors to
provide financial support and other resources to activities in developing countries related to forest
conservation and to the implementation and management of protected areas in the surrounding
landscape, in accordance with national action plans, where such plans exist, through, inter alia ,
institutional strengthening and capacity-building;  research and education and public awareness;
promotion of access, development and transfer of environmentally sound technologies;  and technical
and scientific cooperation.
88. The Forum encouraged countries, relevant in ternational organizations and institutions to
cooperate in developing methodologies for assessing the conditions and management effectiveness in
existing protected forest areas and the surrounding landscape and in protected forest area networks,
taking into account the various efforts under way in several countries to build further capacity to
collect, organize, utilize and share information and experience, including indigenous and local
knowledge, in order to create and manage protected forest areas.
89. The Forum invited countries, relevant interna tional organizations and institutions to work
collectively to develop further guidelines for cons istency in the interpretation and use of existing
IUCN categories of protected areas for application in a national context, and to develop a global
approach for assessing the effectiveness of protected forest area management in relation to
environmental, social, cultural and other relevant objectives.
90. The Forum urged countries, international financial institutions and other donors to improve
coordination, at both the national and international levels, of policies and programmes that affectWT/CTE/W/140
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forest conservation and to address cross-sectoral policies, structural adjustment packages and perverse
incentives.
4. Forest research
Conclusions
91. IFF noted the outcome of the international consultation on research and information systems
for forests sponsored by Austria and Indonesia, stressed the importance of strengthening research to
inform policy, solve practical national and forest-related environmental and social problems, and meet
national priorities.  It recognized the value of research and information systems in enabling those
responsible for forest management and civil society to achieve improved forest outcomes.  However,
priority setting should be improved.  The value of inter-country research collaboration at the eco-
regional level was emphasized.  Forest-related research agendas should not be limited to forest sector
issues but should include other policy issues as well.  Inputs from the public and private sectorsshould be encouraged.
92. There are some inadequacies in existing systems for mobilizing resources, setting priorities
and achieving coherence for forest research.  Improved mechanisms are needed for research to play its
full role in support of sustainable forest management and the maintenance of forests and wooded
lands to meet all current and future human needs.  Research agenda should be more relevant to policymakers and potential beneficiaries of research.  The importance of engaging major groups in
identifying priorities and using results was also stressed.  It was emphasized that member
organizations of ITFF working with the International Union of Forestry Research Organizations
(IUFRO) should continue to explore ways of gene rating resources, improving priority setting and
increasing the coherence of national, regional and international research efforts.
93. IFF, taking note of proposals for the development of a global forest information service,
suggested that use should be made of existing institutions, mechanisms and networks, to enhance
access to forest-related information.  The need to provide access for all interested parties was noted.
It was recognized that individual countries and regional and subregional organizations would
contribute to such an effort, both through relevant international institutions and through the nationalresearch information systems.  The role of networks in providing valuable opportunities for
collaboration by research institutions, within and between countries, as well as the potential for such
networks to facilitate capacity development in developing countries, was also noted.  The
strengthening of linkage with other scientific-oriented international bodies to avoid duplication of
efforts and forge synergies of global efforts was emphasized.
94. IFF noted that assistance allocated to building national research capacity is an effective form
of development assistance.  In this regard, greater priority should be given by all countries to financialand technical assistance programmes and technological cooperation to strengthen the capacity of
developing countries.  IFF strongly encouraged countries to continue giving higher priority to the
forest sector, including through allocation of resources to national research capacity-building.
Proposals for action
95. IFF recalled IPF proposals for action 94 (a), 94 (c) and 94 (d), and underlined that forest
research should have a country-driven approach.
96. IFF called upon countries to:
(a) Improve national efforts to strengthen forest research by formulating policies,
programmes and strategies, as appropriate, within the context of national forest
programmes in order to identify research needs and priorities as well as to coordinateWT/CTE/W/140
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the implementation of research programmes relevant to sustainable forest
management;
(b) consider examination of new ways of m obilizing funding for forest research,
including changes to the charters of research institutions that would allow them to
address diverse sources of funding, as well as changes to research agendas;
(c) improve linkage between forest science and forest policy processes at the national
and subnational levels by creating opportunities for policy makers, scientists, donors,
and other interested parties to provide guidance to research and forest policy
discussions;
(d) ensure that forest research in countries be undertaken with prior consent of the
country/countries concerned.
97. IFF urged international organizations, donor countries and financial institutions to:
(a) Contribute to fund forest research in developing countries;
(b) examine new ways for mobilizing funding fo r forest research and intensify efforts,
including development assistance, to strengthen research networks and build capacity
at the national, regional and global levels, to facilitate all countries to meet the broad
economic, social, cultural and environmental demands upon forests;
(c) enhance access to forest-related information by all interested parties, making best use
of existing institutions, mechanisms and networks, including national, regional and
international research information systems;
(d) foster joint ventures in forest research involving both the public (research institutions)
and private sector.
98. IFF requested ITFF member organizations to:
(a) Explore ways and means of improving priority setting and support for national,
regional and international forest-related research efforts;
(b) explore options for providing guidance to forest science initiatives, strengthening
linkages between science and policy, mobilizing resources, including financialresources, and increasing international efforts in support of forest research and
research capacity-building;
(c) work with IUFRO in exploring possibilities for a global forest information service.
5. Valuation of forest goods and services
Conclusions
99. In all countries, forests provide a wide variety of goods and services, including the basis for
subsistence livelihood, in particular in many developing countries.  Forest valuation should reflect the
social, cultural, economic and ecological context and consider values that are important to local
and/or indigenous communities, private forest owners, gender aspects, and distributional impacts.  In
addition, many benefits, such as watershed and soil protection, the mitigation of natural disasters andthe enhancement of recreation and tourism are important to society as a whole.  At the global level,WT/CTE/W/140
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benefits include carbon sequestration, the conservation of biological diversity and combating
desertification.
100. The Forum noted that the development of forest valuation tools and methods is an ongoing
process.  It reiterated the proposals for action on the valuation of forest goods and services of IPF, and
noted their continuing relevance and validity.
101. The Forum stressed that the deficiencies in valuation in economic terms of, for example,
social and ecological values, does not imply that these values are considered less relevant.  More
quantitative data, including resource prices and data for non-economic values of forests, will make
forest valuation more effective.  There is also a need for simplified, rapid and cost-effective valuation
methodologies to suit specific circumstances of countries.
102. The Forum noted that forest valuation can be one of the necessary tools for promoting
sustainable forest management, and valuation estimates provide important inputs to forest policydevelopment and to the formulation and implementation of national forest programmes.  The Forum
noted, however, that sound forest policy decisions can often be made without explicit forest valuation.
Forest valuation by itself does not provide a guarantee for appropriate policy decisions.
103. The scope of valuation of forest goods and services needs to extend beyond the limits of the
forest sector and include, for example, consideration of alternative land-use options of significantsocial or economic value, forest products pricing, and ecological impact of substitute materials.  There
is a need to develop an approach to identify both costs and benefits of sustainable forest management,
as well as ways to encourage countries to internalize externalities.
104. Enhanced international cooperation is required, with special attention to capacity-building for
the development and application of forest valuation in order to enable informed policies and decision-making, as well as enhanced programme formulation in developing countries.
105. There is a need for enhanced cooperation and coordination on forest valuation matters with
other forums dealing with such issues as climat e change, international trade, desertification and
biological diversity.
Proposals for action
106. The Forum recalled the IPF proposals for action relevant to this programme element (in
particular, E/CN.17/1997/12, paras. 104 (a), (b), (c) and 134 (a) and (b)).
107. The Forum:
(a) Urged Governments to improve collection of quantitative data to enumerate and
develop physical accounts of the full range of forest goods and services, including
inventories of timber and other goods and services, and impacts of changes in forest
use on the environment.  This should also be done for substitute non-wood materials;
(b) encouraged further development, by countries and international organizations, of
rapid and low-cost valuation methods, including a focus on the development of
approaches which incorporate a wide range of values, reflect the overall value of
forest ecosystems, as appropriate, and identify the costs and benefits of sustainable
forest management, as well as ways to internalize externalities;
(c) requested relevant international organizations to develop and test rapid valuation
methods that are policy relevant and efficient, that reflect regional and national
characteristics and requirements, and to develop approaches for the identification ofWT/CTE/W/140
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the costs and benefits, including incremental costs and benefits, of sustainable forest
management which can be employed for a cost-efficient use of investment funds for
forests;
(d) requested countries and international organizations to assist developing countries in
building and promoting capacity for the development and application of forestvaluation methods.
6. Economic instruments, tax policies and land tenure
Conclusions
108. The Forum noted that economic instruments and tax policies are powerful tools in forest
policy when applied within an effective forest policy and institutional framework.  However, they
may be ineffective or counterproductive in a situation of policy, institutional or regulatory failures.
109. Economic instruments in the forest sector should include consideration of opportunity costs of
alternative land uses and opportunities in other sectors, and both public and private ownership of
forests.
110. The ability to offer a wide variety of forest goods and services for sale in local, national and
international markets can be an effective incentiv e for sustainable forest management.  Additional
information is needed on approaches to creating markets for forest products, especially non-woodforest products and services, and on the role of the public and private sector in helping assure that new
or expanded markets are consistent with all dimensions of sustainable forest management.
111. The Forum recognized the need for secure land tenure and user rights in the effective use of
economic instruments as tools to support sustainable forest management and for investments of the
private sector in the establishment and management of forest resources.  However, to institutionalizethis is a long-term process, and interim measures are required in most cases in view of the urgent need
to regulate resource utilization and address the issues related to local and/or indigenous communities,
as well as gender aspects.
112. The Forum recognized that economic instruments applied in the forest sector, including taxes
and revenue collection, can be a source of financial support for improved management;  theseinstruments can also support and promote sustainable forest management by providing incentives and
disincentives.
113. The Forum recognized that the macroeconomic policies of countries may have extensive and
enduring effects on the forest sector as well as on other sectors;  consideration of these effects, as a
component of programmes of macroeconomic structural adjustment, can provide the basis for
informed decision-making, which can lead to sustainable economic growth and sustainable forest
management.
114. It has been the experience of many countries that developments in other sectors that are, in
some cases, the consequence of policies, can lead to unintended changes in the forest sector.  Weak or
inconsistent policies in other sectors, including but not limited to the agricultural sector, can
undermine the use of any forest policy tools, including economic instruments.WT/CTE/W/140
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Proposals for action
115. The Forum:
(a) Encouraged countries, with the assistance of relevant international organizations, to
assess the potential scope and effective combination of economic instruments and tax
policies as tools for promoting sustainable forest management, as appropriate, as partof their national forest programmes.  This assessment should include but not be
limited to collection of forest revenue from timber extraction;
(b) encouraged countries to recognize and use, where applicable, an appropriate
combination of regulations and economic instruments for achieving the objectives of
forest policies, including the use of charges and forest revenue collection that also
offer incentives for sustainable forest management practices;
(c) encouraged countries to recognize the actual and potential impacts of economic
instruments and tax policies as a means of providing incentives to engage in activities
that avoid deforestation and forest degradation and that support sustainable forest
management practices;  and to examine, in collaboration with international
organizations, when requested, the role of forest policy failures and policies in other
sectors as a contributing factor in deforestation, forest degradation or unsustainableforest management;  and to collaborate with international organizations in developing
mitigating policies;
(d) encouraged countries, within their respective legal framework, to support land tenure
policies that recognize and respect legitimate access and use, and property rights in
order to support sustainable forest management and investment, recognizing thatinstitutionalizing tenure is a long-term and complex process which requires interim
measures to address urgent needs, in particular of local and/or indigenous
communities;
(e) requested relevant international organizations to undertake an up-to-date review of
contemporary forest revenue collection systems for the use of forest products andservices.  The Forum encouraged countries to  share their experiences in this area and
to support this effort;
(f) invited relevant international organizations to provide, on request, general and
specific advice to countries on the design and administration of economic instruments
and tax policies to promote sustainable forest management, and encouraged countries
to offer examples of successes in using economic instruments to advance the practice
of sustainable forest management;
(g) encouraged countries to develop macroeconomic policies and policies in other sectors
that support and contribute to sustainable forest management;  and requested
international financial and lending institut ions to consider mitigating the impacts of
macroeconomic structural adjustment programmes on forests consistent with
sustainable forest management.
7. Future supply of and demand for wood and non-wood forest products and services
Conclusions
116. IFF recognized that the demand for and supply of wood and non-wood products and services
of forests will continue to form the basis for the contribution of forests to economic and socialWT/CTE/W/140
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development, particularly for poverty eradication.  The need for commodities, including but not
limited to wood, will provide one of the powerfu l motivations for conservation and sustainable
management of forests.  This future outlook does not eliminate, however, the need for improved
information, forest policy implementation and forest management.  Reliable forest inventory data are
essential in the analysis of trends in demand for and supply of wood and non-wood products.
117. Most recent outlook studies have reached the general conclusion that at the global level, wood
fibre supply will be broadly matched with demand w ithout likely price increases, but at the national
level some countries may experience shortages and possibly price increases.  Furthermore, alternative
sources of fibre, such as from recycled paper a nd non-wood fibre, now account for an increasing share
of industrial fibre consumption.  A number of factors, including effects of deforestation, forest
degradation, the designation of additional forests as protected forest areas, markets and technologies,
are leading to a gradual shift in some regions in the focus of wood harvesting to more intensively
managed forests, including natural forests, planted forests, as well as trees outside forests.  Due
consideration of environmental, economic and social principles of sustainable forest management
should be taken at appropriate levels in the planning and management of forests.
118. Global consumption of wood for fuel is larg er than industrial roundwood consumption in
terms of volume.  Much work is required to ac curately assess the impacts of fuelwood collection on
forest resources, and the role of trees outside forests.  For most of the world’s population, it is as a
source of fuel that forests play their most important role in social and economic development.
119. Policies that set or affect the prices of wood and non-wood products and services are among
the most important factors influencing demand and supply.  Policies that distort the efficient operation
of markets may contribute to the unsustainable mana gement of forests.  Furthermore, it is not only
prices of forest products but also of their substitutes that need to be considered when assessing market
policies and their environmental consequences.
120. Private and community ownership of forests and the private sector in general play an
increasingly important role in sustaining production of industrial wood products.  Private forests
presently account for about half of world wood production and this share is expected to increase in thefuture.  The increasing role of private owners, local and/or indigenous communities and market
processes will present new challenges for choosing and implementing forest policies to achieve both
wood and non-wood objectives for forests.
Proposals for action
121. The Forum encourages countries and international organizations to improve data collection
and information dissemination through:
(a) Increasing the extent, quality and comparability of inventory data on forest resources,
including both wood and non-wood forest products and services;
(b) giving adequate attention to collection and reporting on the use of a broad range of
non-wood products, including quantities gathered and consumed, ownership rights
and their importance to rural and indigenous communities;
(c) the systematic collection and reporting of information on the source and use of wood
fuels;  and
(d) the provision of timely, useful and comparable data on prices of wood and non-wood
products as well as their substitutes.WT/CTE/W/140
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122. The Forum further encourages countries, including through international cooperation, to:
(a) Promote policies, as needed, to meet increasing demand for wood and non-wood
forest products and services, through sustainable forest management, including,
where appropriate, planted forests and trees outside forests, and work towards aninternationally agreed definition of planted forests;
(b) recognize the role of the private sector, where appropriate, in producing forest
products and services.  This role may need to be supported within a framework of
policies, incentives and regulations, such as secure land tenure and appropriate tax
policies to help ensure the improved management of forests and sustained production
of a wide range of goods and services;
(c) incorporate the supply of fuelwood and w ood energy as well as efficient wood energy
technologies as a crucial part of policy and planning exercises within the forestry,
agriculture and energy sectors, and develop pilot studies to assess more accurately the
impacts of fuelwood collection on trees and forests;
(d) develop and implement policies designed to promote sustainable production of wood
and non-wood forest goods and services that reflect a wide range of values, and toensure that the benefits of commercialization of wood and non-wood forest goods and
services contribute to improved management of forests and are equitably distributed
to the people who protect and provide them;
(e) review policies that have a direct effect on the price of forest products and of their
substitutes, initiate studies on market behaviour, when appropriate, and recognize thatappropriate prices can encourage and support sustainable forest management while
discouraging overuse, waste, excess and inefficient manufacturing;
(f) undertake studies on the cost and benefits of using renewable wood and non-wood
forest products, as opposed to non-renewable substitutes.
8. Assessment, monitoring and rehabilitation of  forest cover in environmentally critical
areas
Conclusions
123. The Forum recognized that forests in environmen tally critical areas are especially susceptible
to degradation and destruction resulting from human activities and from natural disturbances.  The
Forum expanded the scope of attention to the rehabilitation and sustainable management of forest
cover in environmentally critical areas, sub-humid, arid and semi-arid areas in tropical and temperate
regions, mountain ecosystems, wetlands, coastal systems in particular mangroves and small islands, aswell as trees outside forests.  It reiterated the proposals for action of IPF on fragile ecosystems
affected by desertification and drought and noted their continuing relevance and validity.  IFF
acknowledged the decisions taken by the Convention to Combat Desertification with regard to the
implementation of national action programmes as a major tool to combat desertification and drought.
124. The Forum noted that methods and technologies for the rehabilitation and management of
forests in environmentally critical areas are well known, and stressed the importance of more effective
policies, coordination and partnerships in addressing the ecological, social, cultural and economic
problems associated with these systems.  Partnerships and coordination should include affected
countries, international organizations, development cooperation agencies and relevant major groups.WT/CTE/W/140
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125. Planted forests, in particular of native species, where appropriate, have an important role to
play in the rehabilitation of degraded land and in assisting to provide cover in environmentally critical
areas.
126. The Forum reaffirmed the basic principles contained in chapter 11 of Agenda 21 and in the
IPF proposals for action, and stressed the importance of action-oriented proposals, including throughthe provision of financial resources and the transfer of environmentally sound technologies as set out
in chapters 33 and 34 of Agenda 21, and in this regard stressed the needs of least developed countries
and of developing countries with low forest cover.
127. Mountain ecosystems deserve special attention because of the marginalization of mountain
populations living in isolated and often cold areas, the importance of mountain forests for soil and
watershed protection, the conservation of biological diversity, and the conflict between economic use
and environmental protection.  Mountain cloud forests are of particular concern in this regard.
Proposals for action
128. The Forum recalled the IPF proposals for action relevant to this programme element (in
particular, E/CN.17/1997/12, para. 46 (a)-(f)).
129. The Forum:
(a) Encouraged countries and relevant international organizations and major groups to
cooperate and coordinate activities concerning forests and trees in environmentally
critical areas, and to contribute to more systematic collection, analysis and
dissemination of information, including social and economic data;
(b) urged countries to place rehabilitation and sustainable management of forests and
trees in environmentally critical areas as a higher priority on national developmentagendas within the context of national forest programmes, as appropriate;
(c) encouraged countries, in particular countr ies with low forest cover, to use planted
forests and other means, including trees outs ide forests, in agroforestry, silvipastoral
and analog forestry systems (forest management systems that seek to mimic natural
forests in rehabilitation of degraded land), giving special consideration to using nativespecies, where appropriate, as options for rehabilitating degraded lands and, where
possible, as a basis for re-establishing natural forests;
(d) urged countries to engage in raising awareness of the ecological, social, cultural and
economic roles that planted and natural forests might fulfil in the rehabilitation and
sustainable management of forests in environmentally critical areas;
(e) further urged international organizations and donor countries to strengthen their
support to and collaboration with international programmes, including through theprovision of financial resources and the transfer of environmentally sound
technologies as set out in chapters 33 and 34 of Agenda 21 and through conventions
directed to fragile ecosystems, in particular concerning the role of forests, other
wooded lands and trees in the Convention to Combat Desertification and Agenda 21,
chapters 12 and 13, which address the concerns of the poorer communities.WT/CTE/W/140
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E. FOREST -RELATED WORK OF INTERNATIONAL AND REGIONAL ORGANIZATIONS AND UNDER
EXISTING INSTRUMENTS
Conclusions
130. The Forum emphasized that Governments, international organizations and all interested
parties should take a holistic approach to forest matters, which recognizes the importance of social,
economic and environmental values and functions of forests, and use their comparative advantages to
cooperate in support of management, conservation and sustainable development of all types of forests.
131. The Forum noted that many of the IPF proposals for action are directed towards international
organizations and instruments, and that there is significant unrealized potential for further
strengthening and mobilizing the capacity of existing international and regional organizations and
instruments to support and promote the goal of management, conservation and sustainable
development of all types of forests.  This can be achieved through the enhancement of their
complementarities, the provision of financial resources, better coordination and facilitation of the
policy dialogue, and greater coherence of action, including consistent policy guidance at the level of
their governing bodies.  This approach would help to focus collective action on overall priorities.
There is a need to encourage the forging of partnerships with other international and regionalorganizations and instruments to implement the IPF proposals for action directed towards them.
132. The Forum recognized the informal, high-level Inter-Agency Task Force on Forests as a
successful informal partnership in initiating and strengthening forest-related collaboration among
organizations within and outside the United Nations in support of the IPF proposals for action.  The
Task Force requires strong support from each of its member organizations.  The strengthening of thework of the Task Force will facilitate the implementation of the IPF proposals for action.  The
Task Force should continue to practise coordination on an informal basis with respect to the
implementation of the IPF proposals for action directed towards its member organizations.
133. The Forum acknowledged that in the context of the implementation of the IPF proposals for
action, the real challenges ahead lie in further strengthening the existing partnerships among TaskForce members and other international and regional organizations and instruments in respect of
facilitating the establishment of new modalities of cooperation between Task Force members and
other partners for making the best use of all the available forest-related institutional capabilities that
exist at the regional and international levels.  In this regard, through national forest programmes,
special attention should be paid to supporting efforts of countries, in particular developing countries
and countries with economies in transition, towards sustainable forest management.
134. The Forum underlined that the IPF proposals for action as a whole constitute an important
integrated and multisectoral approach for the achievement of the sustainable forest management of all
types of forests.  Complementary objectives and approaches on forest-related issues for promoting
work among institutions, organizations and instruments are crucial to improving efficiency and
coordination, which should be built upon the IPF proposals for action.  Future efforts by international
organizations, multilateral institutions and instruments should be flexible in order to accommodate theexisting and emerging needs as well as different levels of social and economic development of
countries, in particular developing countries.  The Forum also encouraged them to provide for the
effective participation of and collaboration with all interested parties.
135. The Forum recognized the utility of designing a comprehensive directory of forest-related
international and regional organizations including information regarding relevant global and regionalconventions.  The directory could include, inter alia , the available institutional information
concerning missions, mandates, organizational structures, programmes, activities, personnel and
budget, as well as information on collaborative forest-related work and activities of organizations andWT/CTE/W/140
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institutions.  The directory should be updated on a regular basis.  FAO, in cooperation with other
member organizations of the Task Force, could have a leading role.  Additional information about
bilateral and multilateral forest-related activities, private sector and research institutions and selected
publications could also be included, as provided by the parties involved in such activities.  It is
suggested that such a directory be made accessible to all Governments and other interested parties inelectronic form, for example, on the Internet.
136. The Forum emphasized that success of the efforts being undertaken by various
United Nations bodies on forest-related issues depends on addressing the economic, social and
environmental components of sustainable forest management in the context of sustainable
development, in a balanced manner.  It was also noted that the specific conditions of developing
countries and countries with economies in transition in terms of financial, technical and technological
capabilities require particular attention.  Inter-agency coordination should pay special attention tointegrating the needs of developing countries with low forest cover in relevant policies and
programmes.
137. With respect to the Forum programme of work under category II.e, according to which it is to
"Consider forest-related work of international and regional organizations.  Further examine the forest-
related work being carried out by international and regional organizations and under existinginstruments in order to identify gaps and over laps", the Forum noted that the Secretariat’s
documentation provided useful input to deliberations in the Forum regarding issues to be dealt with
under category III.
138. The Forum noted that in future it will be necessary to examine practical approaches based on
results expected to be achieved and to focus on experiences gained in the implementation of existinginstruments and the work programmes of international and regional organizations oriented towards
achieving sustainable forest management.
Proposals for action
139. The Forum called upon all interested parties, including the governing bodies of relevant
international and regional organizations and instruments, to:
(a) Identify practical means for mobilizing their diverse strengths and capabilities to
support country-level efforts in implementing the proposals for action adopted by
IPF, taking into account the need to enhance the active participation of all parties
concerned;
(b) foster synergies among different international and regional organizations and
instruments, and encourage their active participation in and contribution to
international forest policy dialogue, with due consideration to the Forest Principles,chapter 11 of Agenda 21 and the IPF/Forum proposals for action;
(c) clarify the respective roles and work to be carried out by international and regional
organizations and instruments with respect to the forest-related programmes of action
of the United Nations Conference on Environment and Development and its
follow-up.
140. The Forum called upon Governments to:
(a) Utilize, as appropriate, the expertise provided by international and regional
organizations and instruments in the formulation of their national forest programmes,
in particular to better integrate cross-sectoral linkages and the social, economic and
environmental aspects of sustainable forest management into national policies;WT/CTE/W/140
Page 34
(b) establish and strengthen, as appropriate, effective national arrangements to provide
coordinated and effective guidance to multilateral organizations.
141. The Forum called upon the secretariats of the Task Force member organizations to:
(a) Inform their governing bodies about the progress and outcome of the IPF/IFF process
so as to strengthen their forest-related activities and their inter-agency cooperation in
this regard;
(b) explore and develop the potential for institutional synergies with other partners,
especially with regional development banks, regional commissions and other regional
intergovernmental bodies, non-governmental organizations, other international
organizations and private sector institutions;
(c) cooperate towards developing a comprehensive directory of forest-related
international and regional organizations and instruments engaged in forest-relatedactivities, including their mandates, missions, organizational structures, programmes,
activities, personnel and budget, as well as information on collaborative forest-related
work and activities of organizations and instruments.  The directory should be
updated on a regular basis.  FAO, in cooperation with other member organizations of
the Task Force, could have a leading role in this task.
142. The Forum called upon Governments to provide guidance to the governing bodies of
international and regional organizations and instruments, and to encourage non-governmental
organizations to cooperate in:
(a) Implementing activities to increase public awareness of the direct and indirect
benefits derived from forests, at national, subregional, regional and global levels;
(b) facilitating inter-institutional consultation on cross-sectoral forest policies, policy
reforms, and planning and programmes for sustainable forest management;
(c) enhancing cost-effective data systems, to allow the preparation and the timely
dissemination of information on progress in sustainable forest management.
143. The Forum called upon relevant international and regional organizations and instruments to
consider, in their relevant policies and programmes, the needs and requirements of developing
countries and countries with economies in transition, with special attention to low forest cover
countries.
144. The Forum urged international and regional organizations and governing bodies of
instruments to support forest programmes and to inte grate forest-related aspects in programmes aimed
at poverty alleviation, decreasing population pressures, promoting food security and promoting
environmental awareness.WT/CTE/W/140
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III. INTERNATIONAL ARRANGEMENTS AND MECHANISMS TO PROMOTE THE
MANAGEMENT, CONSERVATION AND SUSTAINABLE DEVELOPMENT OF
ALL TYPES OF FORESTS
145. The proposed terms of reference for an international arrangement on forests are set out in the
appendix below.
Appendix
International arrangement on forests
I. Objective
1. The main objective of this international arrangement on forests is to promote the
management, conservation and sustainable development of all types of forests and to strengthen long-
term political commitment to this end.  The purpose of such an international arrangement would be to
promote the implementation of internationally agreed actions on forests, at the national, regional and
global levels, to provide a coherent, transparent and participatory global framework for policy
implementation, coordination and development, and to carry out principal functions, based on the
Rio Declaration on Environment and Development,  Non-legally Binding Authoritative Statement of
Principles for a Global Consensus on the Management, Conservation and Sustainable Development ofAll Types of Forestry (Forest Principles), chapter 11 of Agenda 21 and the outcomes of the
Intergovernmental Panel on Forests (IPF)/Intergove rnmental Forum on Forests (IFF) process, in a
manner consistent with and complementary to existing international legally binding instruments
relevant to forests.
Intergovernmental Forum on Forests
II. Principal functions
2. To achieve the objective, this international arrangement on forests will perform the following
functions:
(a) Facilitate and promote the implementation of the IPF/IFF proposals for action as well
as other actions, which may be agreed upon, including through national forestprogrammes and other integrated programmes relevant to forests;  catalyse, mobilize
and generate financial resources;  and mobilize and channel technical and scientific
resources to this end, including by taking steps towards the broadening and
development of mechanisms and/or further initiatives to enhance international
cooperation;
(b) provide a forum for continued policy development and dialogue among Governments,
which would involve international organizations and other interested parties,including major groups, as identified in Agenda 21, to foster a common
understanding on sustainable forest management and to address forest issues and
emerging areas of priority concern in a holistic, comprehensive and integrated
manner;
(c) enhance cooperation as well as policy and programme coordination on forest-related
issues among relevant international and regional organizations, institutions and
instruments, as well as contribute to synergies among them, including coordination
among donors;WT/CTE/W/140
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(d) foster international cooperation, including North-South and public-private
partnerships, as well as cross-sectoral cooperation at the national, regional and global
levels;
(e) monitor and assess progress at the national, regional and global levels through
reporting by Governments, as well as by regional and international organizations,institutions and instruments, and on this basis consider future actions needed;
(f) strengthen political commitment to the management, conservation and sustainable
development of all types of forests through:  ministerial engagement;  developing
ways to liaise with the governing bodies of international and regional organizations,
institutions and instruments;  and the promotion of action-oriented dialogue and
policy formulation related to forests.
III. Structure
3. To achieve the objective and to carry out the functions outlined above, the Economic and
Social Council and the General Assembly would:
(a) Establish an intergovernmental body which may be called the United Nations Forum
on Forests (UNFF);
(b) invite the executive heads of relevant organizations of the United Nations system and
heads of other relevant international and regional organizations, institutions and
instruments to form a collaborative partnership on forests to support the work of
UNFF and to enhance cooperation and coordination among participants;
(c) within five years, on the basis of the assessment referred to in paragraph 2 (e) above,
consider with a view to recommending the parameters of a mandate for developing alegal framework on all types of forests.  This process could develop the financial
provisions to implement any future agreed legal framework.  The process could also
consider recommendations made by expert groups (see para. 8 below) on the
establishment of mechanisms on finance, technology transfer and trade;
(d) take steps to devise approaches towards appropriate financial and technology transfer
support to enable the implementation of sustainable forest management, as
recommended under the IPF and IFF processes.
IV. Working modalities of UNFF
4. UNFF should be open to all States and operate in a transparent and participatory manner.
Relevant international and regional organizations, including regional economic integration
organizations, institutions and instruments, as well as major groups, as identified in Agenda 21,
should also be involved.
5. UNFF would initially meet annually, for a period of up to two weeks, subject to the review
referred to below.  UNFF would have a high-lev el ministerial segment for two to three days, as
required.  The high-level segment could include a one-day policy dialogue with the heads of
organizations participating in the collaborative partnership, as well as other forest-related international
and regional organizations, institutions and instruments.  UNFF should ensure the opportunity toreceive and consider inputs from representatives of major groups as identified in Agenda 21, in
particular through the organization of multi-stakeholder dialogues.WT/CTE/W/140
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6. UNFF would work on the basis of a multi-year programme of work, drawing on the elements
reflected in the Rio Declaration on Environment and Development, the Forest Principles, chapter 11
of Agenda 21 and the IPF/IFF proposals for action.
7. At its first meeting on Environment and Development, UNFF will adopt its multi-year
programme of work and develop a plan of action for the implementation of IPF/IFF proposals foraction, which will address financial provisions.
8. UNFF may recommend, as appropriate, the convening of ad hoc expert groups of limited
duration, involving experts from developed and developing countries, for scientific and technical
advice, as well as to consider mechanisms and strategies for the finance and transfer of
environmentally sound technologies;  and encourage country-sponsored initiatives, such as
international expert meetings.
V. Institutional coordination and cooperation for implementation
9. The collaborative partnership referred to in paragraph 3 (b) above could build on a high-level,
informal group, such as the Inter-Agency Task Force on Forests, which would receive guidance from
UNFF;  facilitate and promote coordinated and c ooperative action, including joint programming and
submissions of coordinated proposals to the respective governing bodies;  and facilitate donor
coordination.  Such a partnership would submit coordinated inputs and progress reports to UNFF,operate in an open, transparent and flexible manner, and undertake periodic reviews of its
effectiveness.
VI. Secretariat
10. A compact secretariat, comprised of highly qua lified staff, constituted in accordance with
established rules and procedures of the United Nations and strengthened through staff fromsecretariats of international and regional organizations, institutions and instruments, should be
established to support the work described above.
VII. Financial support
11. The funding for the functioning of the arrangement should be mobilized from the regular
budget of the United Nations, within existing resources, resources of organizations participating in thepartnership and extrabudgetary resources provided by interested donors.  Specific modalities would be
determined by relevant bodies of the United Nations and the governing bodies of the other
organizations concerned.
VIII. Review
12. The international arrangement on forests should be dynamic and adapt to evolving conditions.
Accordingly, the effectiveness of this arrangement would be reviewed in five years.
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