The world’s agri-food systems are under stress from many factors, including biodiversity loss and climate change, while forests can provide solutions to reduce the pressure and, at the same time, provide essential services and products. Integrated policies and landscape approaches can help create greener products and agri-food systems. Through thorough analysis, innovative approaches, product development, processing, and marketing, healthy and sustainably managed forests can provide income and food and mitigate climate change.

Rural communities in the Caucasus and Central Asia face high poverty levels and limited livelihood prospects. Local conditions are triggering high levels of migration and are driving families, as well as entire communities and generations of youth to leave home. While forests in these regions play a vital role in the provision of ecosystem services, in particular, as sources of livelihood, shelter, water, food, medicine, and fuel, forest landscapes are degraded, depleted, and under continued threat from the unsustainable resource use and unmitigated natural threats.

National governments have taken action recently and committed to restoring forest landscapes. However, they face competing priorities and limited resources as they attempt to balance urgent economic development and job creation needs with long-term environmental integrity. The COVID-19 crisis and the food insecurity threat by current geopolitical developments have only exacerbated the challenges posed by existing resource limitations.

The project aims to improve the knowledge and capacity of the four beneficiary countries (Kyrgyzstan, Tajikistan, Uzbekistan, and Georgia) to advance inclusive rural development and forest landscape restoration for increased agroforestry activities through circular forest products value chains and nature-based solutions. Forest-product value chains hold an untapped potential to provide revenue to local communities (often the most vulnerable and poorest population) and improve food security in a fragile global food system.

The project will adopt a dual approach and two interrelated work areas. First, developing knowledge products that demonstrate the benefits of circular forest product value chains for advancing inclusive rural development and forest landscape restoration (FLR). Second, build capacity for policymakers to implement circular forest product value chains. This will highlight linkages between national economies and the management of forest landscapes, thereby contributing to green recovery planning and, eventually, a circular economy.

National market gap assessments will initially identify benefits and opportunities to strengthen circular forest product value chains. Policy briefs will then highlight contributions to inclusive rural development and FLR, to build awareness and understanding of these benefits. National sets of criteria and indicators (C&I) for circular forest product value chains will be developed to support the countries’ ability to evaluate their effectiveness and economic contribution. These will inform guidelines that others can use in the region and beyond. The project will leverage this enhanced knowledge to support national capacity-building for implementing opportunities and recommendations for the two working areas. Building on the national market gap assessments, pilot project concepts consisting of a roadmap per country and an implementation/action plan for strengthening a non-wood forest product value chain for each country. The outputs will provide policymakers with a turnkey opportunity and help demonstrate actionable opportunities to develop circular forest product value chains that promote inclusive rural community-based development, food security and FLR.

National and regional meetings and workshops will support capacity building and facilitate peer exchange and learning. Furthermore, regional policy guidance on integrating forest product value chains and FLR activities into development planning will be conducted based on national-level work, regional stakeholder consultations, and dedicated analysis.

The project is expected to provide policymakers with a thorough understanding of opportunities, including costs and benefits, to strengthen circular forest product value chains for job creation, food security, integrated policy approaches across sectors, and inclusive green growth. Furthermore, the project aims at increasing the value and recognition of forests in creating ecosystem services from forest landscapes, fighting the adverse effects of climate change, and improving food security. It will also identify actionable opportunities to develop sustainable wood and non-wood forest product value chains that may be taken up by public authorities, development institutions, or even the private sector.

NNEX 3: BREAKDOWN OF EXPENSES BY ENTITY AND COST CENTERS