Global Challenge Program: Forests for Development, Climate, and Biodiversity. Approach Paper

This Approach Paper introduces the World Bank Group's Global Challenge Program: Forests for Development, Climate, and Biodiversity (GCP-F). This ambitious initiative aims to expand sustainable forest landscapes to drive economic growth, mitigate climate change, and preserve biodiversity. It aims to do so by catalyzing a paradigm shift in financing global forest-related investments by mobilizing financing at scale to meet future investment needs.

Central to this paradigm shift are three key, strategic elements: (i) improving governance, including by strengthening state command-and-control regulations and institutions; improving inclusion by, among other things, promoting transparent land markets and land regularization as well as co-management, and improving access of forest communities to government services and financial inclusion; (ii) establishing private sector-driven forest-based economies where economic opportunities and job creation serve as a catalyst for forest conservation and restoration; and (iii) leveraging additional financing to enable a One WBG approach to tailor financing packages that respond to clients’ investment needs. Working with partners and stakeholders within the development community, the GCP-F can leverage credibility, proprietary market intelligence and insights, and high environmental and social standards. The provision of appropriate de-risking instruments, such as guarantees, combined with a competitive financing package and an enabling regulatory environment, will be required to help mobilize private capital at scale.