The World Bank's Board of Executive Directors has approved a new project aimed at improving forest management and enhancing forest value chains in Tripura and Nagaland, India. The initiative will impact over 700,000 people across more than 400 villages.
Forests, covering nearly 1.5 million hectares in these states, are crucial to the rural economy, providing livelihoods for significant tribal populations. However, recent years have seen a decline in forest cover, posing risks to biodiversity and communities reliant on forests.
The $225.5 million Enhancing Landscape and Ecosystem Management (ELEMENT) Project seeks to conserve and restore over 100,000 hectares of forest. This effort aims to enhance landscape-based value chains while preventing approximately 435,000 tons of carbon emissions annually. Additionally, the project will focus on soil conservation and water availability improvements.
"The Project will contribute to leveraging forests for private sector driven job creation in non-timber economic activities, enhancing the carbon sink capacity of the forest, and ultimately contributing to economic growth and social well-being in Tripura and Nagaland," stated Auguste Tano Kouame, the World Bank’s Country Director for India.
By collaborating with the private sector, the ELEMENT project plans to generate economic opportunities through forest products such as agarwood, bamboo, and honey. It also aims to improve national parks and protected areas while developing nature-based tourism facilities. An estimated 60,000 jobs for youth and women are expected through entrepreneurship promotion in fields like hospitality and nature guide training.
"This goes beyond traditional forests to include areas like grasslands, wetlands, and farmlands to maximize community benefits," said Pyush Dogra and Raj Ganguly, Task Team Leaders for the project. "This will improve climate resilience of rural and forest-dependent communities and increase their livelihoods."
The financing follows a $43 million commitment by the Bank supporting similar efforts in Meghalaya state. The loan from the International Bank of Reconstruction and Development (IBRD) includes a final maturity of 12 years with a grace period of 4.5 years. A complementary Global Partnership for Sustainable and Resilient Landscapes (PROGREEN) grant amounting to $2.4 million will also support this initiative.