The World Bank's Board of Executive Directors has approved a project aimed at supporting over 700,000 individuals in Tripura and Nagaland, India. This initiative focuses on improving forest landscape management and enhancing forest value chains across more than 400 villages.
Forests, covering nearly 1.5 million hectares, are crucial to the rural economy in these states, providing livelihoods for many tribal communities. However, recent years have seen a decline in forest cover, posing threats to biodiversity and the well-being of those dependent on forests.
The $225.5 million Enhancing Landscape and Ecosystem Management (ELEMENT) Project seeks to conserve and restore over 100,000 hectares of forest. The project aims to enhance landscape-based value chains for economic transformation while preventing approximately 435,000 tons of carbon emissions annually. It also plans to bolster soil conservation efforts and improve water availability.
"The Project will contribute to leveraging forests for private sector driven job creation in non-timber economic activities," said Auguste Tano Kouamé, the World Bank’s Country Director for India. "It will enhance the carbon sink capacity of the forest and ultimately contribute to economic growth and social well-being in Tripura and Nagaland."
The ELEMENT project is set to create economic opportunities through products like agarwood, bamboo, and honey by collaborating with the private sector. Additionally, it aims to develop national parks and protected areas alongside nature-based tourism facilities. By promoting skills training in fields such as hospitality and nature guiding, the project expects to generate 60,000 jobs for youth and women.
"This goes beyond traditional forests to include areas like grasslands, wetlands, and farmlands," said Pyush Dogra and Raj Ganguly, Task Team Leaders for the project. "This will improve climate resilience of rural and forest-dependent communities."
The funding follows a previous $43 million from the World Bank directed towards similar activities in Meghalaya state.
Financed by a loan from the International Bank of Reconstruction and Development (IBRD), it has a final maturity period of 12 years with a grace period of 4.5 years. An additional $2.4 million grant from the Global Partnership for Sustainable and Resilient Landscapes (PROGREEN) complements this effort.