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Food and Agriculture Organization (FAO) of the United Nations (UN) calls for more private investment in sustainable forestry activities in Latin America, FAO said here Wednesday.
"The forests have great potential for social and economic development," FAO Latin America Chief Forestry Officer Jorge Meza said, adding that they are attractive for investors who can "diversify the financial base for sustainable forest management."
In a press release, the FAO regional office, headquartered in Chile's capital city Santiago, stressed that "forests play a key role in favor of food security, mitigating the effects of climate change and the vulnerability of rural communities when it comes to facing natural disasters."
The UN recommended taking advantage of these benefits "in order to build an economic and institutional fabric that will favor financial innovation."
"The lack of a constant flow of investment resources makes it difficult for projects to be profitable and also to conserve and adequately manage the forests," Meza said.
During a meeting held here on Sept. 22-23, forest experts from the FAO recommended "building a business environment favorable to sustainable development in forests."
They agreed on the need to create financial mechanisms that take into account the size of the venture, the forest products involved and the type of beneficiaries or entrepreneurial organizations.
The experts considered it not enough to manage the native forests and forest plantations merely according to profitability. Investments should be oriented to all value chains to reach the markets, including social and cultural factors.
The government should coordinate with sponsors and beneficiaries to reduce risks in the forest business and should be in charge of overcoming obstacles, said the experts.
An FAO report named "The State of the World's Forests in 2016" stated that the sustainable management of forests and agriculture, as well as their integration into land-use plans are essential for achieving sustainable development, guaranteeing food security and facing climate change.
(APD)
