Create economic and policy incentives, and improve legal frameworks for the Support and implement bilateral agreements with consumer markets to receive their Economic incentives: New and reformed incentives

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4. ENABLING CONDITIONS

4.1 THE ROLE OF FOREST-OWNING GOVERNMENTS

ACTION POINTS FOR FOREST-OWNING GOVERNMENTS:

1. Create economic and policy incentives, and improve legal frameworks for the

sustainable production of FRCs.

2. Support and implement bilateral agreements with consumer markets to receive their

inancial and technical support. Just 25 national governments manage 87 per cent of the world’s remaining tropical forests� Their adoption of public policies towards zero deforestation varies considerably with some, such as Colombia, Peru and Brazil scoring the highest under the Forest 500 ranking and others such as Thailand, Myanmar and Madagascar scoring poorly� The sustainable use, conservation and restoration of forests needs to be central to national development plans� Current climate negotiations and the upcoming Sustainable Development Goals can be used as a catalyst to set clear, measurable and time-bound targets for forest use� It is essential that these targets make clear the baseline to which future change is compared and the means by which they will be achieved xxiv � The efective implementation of these policies alongside incentives for sustainable production can support both producers and companies sourcing forest risk commodities from these countries to achieve their own zero deforestation commitments� CREATING ECONOMIC AND POLICY INCENTIVES FOR SUSTAINABLE PRODUCTION OF FOREST RISK COMMODITIES

1. Economic incentives: New and reformed incentives

to support the business-case for sustainable production including introducing tax incentives; reforming agricultural subsidies e�g� the budget of Brazil’s low- carbon agriculture ABC programme is signiicantly lower 3�15 billion Reals in 2011-2012 than for traditional agriculture 107�2 billion Reals in 2011- 2012; linking domestic credit lines to compliance with policies and best-practices e.g. agro-ecological zoning; and investing in payment for ecosystem services xxv �

2. Resolve land ownership and tenure issues: