International Forest Day: Celebrating the Power of Forests

On the International Day of Forests, the “lungs of the planet” are celebrated and their importance spotlighted. 

Forests cover one-third of the world’s land surface and are home to over half of the world’s terrestrial species. This year’s theme “forests and foods”, draws attention to the crucial role forests play in food security, nutrition and livelihoods: 

• More than five billion people around the world use forest and non-timber forest products for food, medicine and livelihoods. 
• Forests are crucial for agriculture, supporting farming in myriad ways including by providing homes for pollinators, helping keep the soil healthy and regulating temperatures. 
• Over 25% of modern medicines originate from forest plants 
• Forested watersheds provide freshwater to more than 85 percent of the world's major cities. 

Ecosystem Services and the power of forests 

Forests provide ecosystem services, the natural benefits obtained from healthy ecosystems. These services can be categorised as:  

• Supporting services - not of direct benefit to people but essential to the functioning of ecosystems and therefore indirectly responsible for all other services. 
• Provisioning services - the supply of goods of direct benefit to people, and often with a clear monetary value, such as timber. 
• Regulating services - the range of functions carried out by ecosystems which are often of great value but generally not given a monetary value in conventional markets, including regulation of climate through the storing of carbon and control of local rainfall. 
• Cultural services - not providing direct material benefits, but contributing to wider needs and desires of society, and therefore to people’s willingness to pay for conservation, such as the aesthetic beauty of landscapes 

A new report from the World Meteorological Organisation (WMO) demonstrated climate change reached new heights last year. State of the Global Climate 2024 documents record high global near-surface and sea-surface temperatures and greenhouse gas (GHG) concentrations, with the atmospheric concentration of carbon dioxide reaching the highest levels in the last 800,000 years. 

Therefore, forests’ regulating services are becoming increasingly critical. Between 2001 and 2019, it is estimated that the world’s forests sequestered around twice as much carbon dioxide as they emitted. International cooperation to ensure the conservation and restoration of forests will be pivotal in harnessing their ability to act as a carbon sink at a time when the planet needs it most.  

Enhancing international cooperation 

In 1992, the United Nations Conference on Environment and Development (UNCED), the ‘Earth Summit’, was held 3-14 June in Rio de Janeiro, Brazil.  The summit resulted in the first consensuses on forests, including ‘Forest Principles’ - a non-legally binding authoritative statement of principles for a global consensus on the management, conservation and sustainable development of all types of forests – and Chapter 11 of Agenda 21, the agreement resulting from the Earth Summit, which focused on combating Deforestation.  

Since then, the pace of development of international forest-related policy and obligations has rapidly accelerated. The forest policy dialogue that took place under the UN Intergovernmental Panel on Forests from 1995-1997 and Intergovernmental Forum on Forests from 1997 to 2000 led to the establishment of the UN Forum on Forests (UNFF) in October 2000, by the Economic and Social Council of the United Nations (ECOSOC). The UNFF’s main objective is to promote “… the management, conservation and sustainable development of all types of forests and to strengthen long-term political commitment to this end.” 

On 28 April 2007, after 15 years of discussions and negotiations, the first UN Forest Instrument, a landmark agreement to protect the world’s forest, was adopted. It marked the first time States agreed on an international instrument for sustainable management. 

The agreement was not legally binding but set a standard in forest management for international cooperation and national action to reduce deforestation, prevent forest degradation, promote sustainable livelihoods and reduce poverty for all forest-dependent peoples. 

Later, in 2015, the Global Forest Financing Facilitation Network (GFFFN) was established by the UNFF to carry out its forest financing activities, facilitating access to and effective use of funding for forests, to share data and best practices.  

On 27 April 2017, the UN General Assembly adopted the first ever UN Strategic Plan for Forests 2017-2030, which features a set of six voluntary and universal Global Forest Goals and 26 associated targets to be reached by 2030. This includes a target to increase forest area by 3% worldwide by 2030, signifying an increase of 120mn hectares. 

At the 26th session of the Conference of the Parties (COP26) to the UN Framework Convention on Climate Change (UNFCCC) over 140 Heads of State, representing more than 90% of the world’s forests, committed to work together to halt and reverse forest loss and land degradation by 2030 in the Glasgow Leaders’ Declaration on Forests and Land Use. Twelve donor countries pledged to provide $12bn of public climate finance from 2021 to 2025 to the Global Forest Finance Pledge. 

The Kunming-Montreal Global Biodiversity Framework, adopted at the UN’s 15th Convention on Biodiversity (CBD COP15) in 2022 includes the 30x30 Goal, which aims to protect at least 30% of the world’s land and ocean by 2030. 

These milestones reflect growing global commitment to protecting and restoring forests, a feat that will require strengthened international cooperation and innovative financing mechanisms.  

State of the World’s Forests 2024 

The UN Food and Agricultural Organisation’s (FAO) report State of the World’s Forests 2024 provides updates on the world’s forests and examines innovations for scaling up forest conservation, restoration and sustainable use. 

According to the report, the rate of deforestation declined from 15.8mn ha per year in 1990–2000 to 10.2mn ha per year in 2015–2020. However, forests are still under pressure from climate-related stressors and demand for forest products is expected to significantly rise through 2050. 

As such, the report highlights that innovation is required to scale up forest conservation and restoration. These innovations include: 

• Technological innovations, including digital, product/process and biotechnological innovations. 
• Social, policy and institutional innovations, such as new efforts to better engage women, youth and Indigenous Peoples in developing locally led solutions. 
• Financial innovations, such as innovations in public -and private-sector finance to enhance the value of standing forests, boost restoration efforts, and increase access to loans for smallholders for sustainable production. 

In August 2024, the World Bank issued the $225mn Amazon Reforestation-Linked Outcome Bond, illustrating such financial innovations. Outcome bonds link investors’ financial return to measurable and impactful development outcomes in a liquid, high-grade fixed income product. It was the largest outcome bond at the time of issuance, signalling the growing support from investors to support positive development impact. 

Further, Climate Investment Funds’ Forest Investment Program provides grants and low-interest loans to support solutions that protect, restore, and sustainably manage forests in developing countries. 

The Program operates in 23 countries, with the African Development Fund, Asian Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank and World Bank as implementing partners.  

Climate Action’s Nature Finance Forum Europe 

Climate Action and UNEP FI will be joining forces with the Wildlife Conservation Society, Institute for Climate and Society (iCS), WWF, Rainforest Alliance and many more for the Nature Finance Forum Europe in Paris, where public officials will join leaders of the European capital markets to discuss the innovative projects and financial solutions to scaling a nature-aligned and restorative economic future. 

Join us on the 28th April, 19 years from the UN Forest Instrument’s signing, and be part of the conversation. 

Download the agenda today and join us for this pivotal milestone on the road to Brazil.