In the forestry sector, technology transfer has a broad definition, which includes sustainable forest management practices, forest conservation and Protected Area management systems, silvicultural practices for afforestation and reforestation programs, genetically superior planting material, efficient harvesting, processing, end-use technologies and indigenous knowledge of forest conservation. In the forestry sector, technology transfer could take place between Annex I and non-Annex I countries; among Annex I and non-Annex I countries; and within countries of Annex I and non-Annex I groups. The technology flow among the non-Annex I countries (tropical countries) is likely to be very important due to similarities in ecological and socio-economic conditions. The governments and private sector in Annex I and non Annex I countries, as well as multilateral agencies, have a critical role in establishing and operationalising financial and regulatory mechanisms, monitoring, verification and certification arrangements, and capacity building for technology development, diffusion and assimilation. Governments, particularly in non-Annex I countries, could prepare guidelines and set up institutional mechanisms to process, evaluate, sanction, and monitor forestry-sector mitigation and adaptation projects.

Financial. The bilateral and multilateral agencies could consider how to attract additional financial support and how they might best enhance their contribution to forestry sector mitigation projects, where technology is an integral component. The role of private sector funding of projects needs to be promoted under new initiatives, including the emerging mechanisms such as JI and the CDM, if operationalised under Kyoto protocol and forestry projects are included. The role of GEF could be crucial assuming that it will reorient its operational programmes to include forestry sector carbon abatement projects. Adoption of sustainable logging practices, efficient processing and recycling technologies could be promoted by providing financial incentives such as preferential market access, lower taxes or duty and low-cost credit to companies adopting such technologies.

Regulatory Measures. Governments in Annex I and non-Annex I countries could benefit by adopting regulations to safeguard sustainable management and the use of forest resources. Governments could also pass regulations to ensure sustainable logging, efficient wood processing, recycling of forest products, timber certification, and regulating access to industry for industrial wood from natural forests. This could improve transfer of technologies for sustainable logging, high yielding plantation forestry and efficient processing technologies. Regulations to enhance the coverage of Protected Areas will ensure transfer and adoption of Protected Area management practices. Regulations affecting deforestation and its underlying causes are particularly important, and require a sound analysis and understanding of the actors and their motivations in the deforestation process.

Methods for monitoring, verification and certification. One of the most important approaches to enhance the credibility of forestry mitigation technologies and projects is to develop and transfer methodologies for monitoring, measurement and verification of carbon abatement in the mitigation projects as well as the changes in forest area. It may be necessary to develop internationally credible institutional arrangements for monitoring and verification in forestry mitigation projects.

Capacity building for environmentally sound technology development, transfer and assimilation. Non-Annex I countries often have inadequate institutional capabilities to develop technologies or to assimilate the transferred technologies as well as to develop an understanding of the effective measures to reduce deforestation. Annex I countries could increase financial and institutional support and training to non-Annex I countries to enable them to develop, evaluate and assimilate climate-friendly forestry technologies and practices.

Awareness and education. To ensure compliance with regulations reducing deforestation and logging, adoption of sustainable forest management practices, efficient processing and recycling of forest products, it is necessary to create awareness among local communities, NGOs and the general public. For example, consumers could insist on certified timber coming from sustainably logged forests or recycled forest products such as paper.

Appropriately designed forestry mitigation and adaptation projects contribute to other environmental impacts such as biodiversity conservation, watershed protection, and socio-economic benefits to urban and rural populations through access to forest products and creation of jobs, ultimately promoting sustainable development and amelioration of the process of land degradation and desertification. Forest conservation, reforestation and sustainable forest management practices for carbon sink conservation or enhancement will particularly benefit the forest dwellers and rural communities by providing forest products and livelihood.

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