WASHINGTON, Nov. 25, 2024 - The World Bank's Board of Executive Directors on Monday approved a new project to support more than 700,000 people to manage forest landscapes better and enhance forest value chains in more than 400 villages across Tripura and Nagaland.
With almost 1.5 million hectares, forests form a vital part of the rural economy in Nagaland and Tripura, providing livelihood to significant tribal populations. However, over the past decade, the states have experienced reductions in forest cover, threatening biodiversity and the well-being of forest-dependent communities.
The $225.5 million Enhancing Landscape and Ecosystem Management (ELEMENT) Project will help conserve and restore over 100,000 hectares of forest thus enhancing landscape-based value chains for economic transformation while avoiding almost 435,000 tons of carbon emissions per year. The Project will also strengthen soil conservation and improve water availability.
"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," said Auguste Tano Kouamé, the World Bank's Country Director for India.
The ELEMENT project aims to open up economic opportunities for communities through forest produce such as agarwood, bamboo and honey in partnership with the private sector. It will also help to enhance national parks and protected areas, as well as develop nature-based tourism facilities. The Project aims to create 60,000 jobs for youth and women, by promoting forest-based entrepreneurship through skills training in areas such as hospitality and training for nature guides.
The Project will take an integrated and holistic landscape approach on forest management.
"This goes beyond traditional forests to include areas like grasslands, wetlands, and farmlands to maximize community benefits," said Pyush Dogra and Raj Ganguly, the Task Team Leaders for the project. "This will improve climate resilience of rural and forest-dependent communities and increase their livelihoods."
This financing comes on the heels of the Bank's $43 million financing to support similar activities in the sister state of Meghalaya.
The loan from the International Bank of Reconstruction and Development (IBRD) has a final maturity of 12 years with a grace period of 4.5 years. The Project will also benefit from a complementary Global Partnership for Sustainable and Resilient Landscapes (PROGREEN) grant in the amount of $2.4 million.
