An NPV of zero does not necessarily indicate “bad investment.”, Previously, we discussed applications and limitations of using cash-on-cash (COCR) return as a metric for analyzing forestry and timber investments, as well as questions related to internal rate of return (IRR) and return on investment (ROI). How healthy are the world’s forests? The source document for this Digest states: Forests provide a wide range of economic and social benefits to humankind. Fiber Prices. Over the past 20 years, commitment has been growing to empower local communities, decentralize decision-making to local government units and increase private-sector involvement in forest management. This shows the proportion of total global and regional production covered by the countries providing value statistics for 2005 (FAO, 2005a). Investments in sustainable forest management and forest-based value chains will have major climate and development benefits. 6. The FRA definitions asked countries to include “employment in direct supervision activities by private and/or public entities”. Figures refer to employment in forestry activities rather than employment in the whole forestry sector (i.e. The percentage of private forests has not changed in Chile, but has increased very significantly in Uruguay (58 percent) as a result of large-scale afforestation on private lands, encouraged by government incentives. Sources of variability in forestry investment performance 187 Methods of allowing for risk in the evaluation of forestry investments 189 Problems faced in developing forestry financial models 190 Developing a financial model: a step-by-step approach 191. However, excluding the Russian Federation, they reach 51 percent. Private forests represented 11 percent of global forests in 1990 and 13 percent in 2000. A similar problem may also have arisen for countries that reported employment in the public forest administration where these administrations also own and manage forest processing facilities. Uncertainty in tenure-related issues, lack of up-to-date information, rapid changes, and the fact that forest ownership has been inserted only very recently into forest inventories affect the availability of reliable information. For almost all products and regions, more information was available for 2000 than for 2005. For further information, please contact:Marco BoscoloForestry Officer[email protected], Access to finance for forest and farm producer organisations (FFPOs), Valuing forest ecosystem services - a training manual, Sustainable financing for forest and landscape restoration, Creating opportunities for forestry investment in Uganda, September 2020, Expert meeting "Catalyzing private finance for inclusive and sustainable forest value chains", Rome, FAO HQ, 02-03 April, 2019. 3, 3 More generally, it should be noted that countries took different approaches to the inclusion/exclusion of employment in the public sector in their reported statistics. Thus a comparison of these two figures suggests that the values reported here are a vast underestimate of the total value of NWFP removals. The risks and increasing the profitability of forest-based businesses, blended Finance can be attributed to lower levels of has! 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