Each region faces distinct opportunities and challenges, depending on their forest resources, level of development, economic growth, and other unique characteristics. As such, IFC is adopting an investment strategy that is consistent with the natural advantages and needs of each region.
Examples:
- In India, where industrial demand for wood and fiber resources far outpaces supply, the focus is on forest planting, to encourage small farmers to plant fast-growing trees on unproductive land, with contract arrangements with pulp mills. IFC has approved more than $120 million to four leading pulp and paper companies in India; combined, these firms account for 60 percent of the farm forestry programs by the domestic industry.
- In the Middle East and other middle-income countries where the recycling industry is in its infancy, IFC targets companies collecting and using waste paper as raw material for production.
- In South America, with its abundance of natural forests, the focus is on sustainable forestry management to monitor tree cutting and preserve the integrity of the tree canopy, as well as sustainable manufacturing projects based on plantations.
- In Africa, with its scarcity of natural wood resources, the emphasis is on reforestation and creating a recycling industry.
- In China, where strong demand has resulted in a dramatic fiber shortage, the focus is on tree planting, reuse and recycling of scrap from saw mills to produce engineered wood panels, and reduction in pollution, causing processing based on nonwood fibers.
- In Russia, with its abundant wood resources (22% of total global forest), the focus is on downstream processing based on sustainable forest management practices.
