Forests

Norway’s International Climate and Forest Initiative (NICFI – or abbreviated KOS in Norwegian) operates on two fronts.  

First and foremost, NICFI is perhaps most known for its large, results-based bilateral partnership with key forest countries. Here, Norway provides payments to forest countries when they reduce deforestation. The forest countries then invest the results-based funds in measures to further reduce deforestation, including through their own programs for sustainable and locally led forest management among forest-based communities, and by building national forest monitoring systems. In this way, Norway works with tropical forest countries to promote sustainable land use, and through international support, tropical forest nations can improve land management and build a prosperous rural economy without deforestation. This work represents the bulk of the budget, diplomatic efforts, and use of human resources.  

Our second track of work, which is well covered through Norad’s forest portfolio of civil society projects, aims to reduce the pressure on tropical forest from global trade and financial markets. The global food system, the global trade of commodities and the global financial market must be reformed so that business operations do not destroy natural ecosystems. Eliminating deforestation from commodity supply chains and investment portfolios will require determined and consistent market signals from consumers, supermarkets and commodity traders. Financial institutions play a key role as shareholders and financiers of companies in forest-risk value chains. 

NICFI’s work includes bilateral cooperation with the largest rainforest countries, multilateral efforts, support for civil society organizations, and collaboration with businesses to establish deforestation-free supply chains. Norad’s main focus lies on the two latter areas.