In January 2026, the Asia–Pacific Regional Workshop on Forest Financing, hosted by the UN Forum on Forests (UNFF), gathered key stakeholders from around the world to explore solutions for strengthening forest financing. With participation from representatives of global institutions like the World Bank, Green Climate Fund, and UN Environment Programme, the workshop focused on how multilateral, bilateral, and private financing mechanisms can support sustainable forest management. The International Tropical Timber Organization (ITTO) played a pivotal role, highlighting the importance of forest finance in addressing climate change, enhancing biodiversity, and supporting local communities.
Addressing the Urgency of Forest Financing
The workshop’s opening session, led by ITTO Executive Director Sheam Satkuru, underscored the urgency of increasing financial support for forests. Despite their vital role in mitigating climate change and supporting livelihoods, forest sectors receive minimal climate financing compared to other areas. Satkuru emphasized that forest finance must work in harmony with people, nature, and climate to maximize its impact. She further pointed out the fragmented approach to forest policies at the international level, which has led to inefficiencies and competition rather than effective collaboration.
Satkuru’s concerns were echoed by other experts, who noted that the proliferation of actors in the forest sector over the past few decades has resulted in duplicated efforts and fragmented funding. These challenges call for a more coordinated approach to ensure that forest finance delivers meaningful outcomes for communities and the environment.
ITTO’s Approach to Mobilizing Forest Finance
On the second day of the workshop, ITTO presented its approach to leveraging forest finance through a combination of policy guidance, field projects, data collection, and capacity building. ITTO’s Director of Forest Management, Jennifer Conje, joined Satkuru to share several examples of how forest finance can have tangible benefits.
One example highlighted was ITTO’s project in Indonesia, which focused on strengthening management planning for non-timber forest products (NTFPs) and supporting small-scale, community-based enterprises. This initiative created income-generating opportunities for local communities while protecting nearby protected areas. The Indonesian government later capitalized on these outcomes by investing in capacity-building initiatives for local authorities, allowing for more efficient management of forest resources.
Furthermore, the Central Bank of Indonesia introduced low-interest loans for community cooperatives, helping to build a more sustainable and resilient local economy. “This project demonstrates the power of domestic public and private financing in building on international public finance investments to create sustainable income opportunities and protect the environment,” said Conje.
Forest Finance Catalyzing Positive Change in Cambodia and Beyond
Another project presented at the workshop involved ITTO’s microcredit scheme in Cambodia. This initiative provides low-interest loans to local communities for sustainable livelihood activities that do not harm forests. Revenue from these activities helps fund community-led forest monitoring and protection efforts, creating a cycle of sustainability that supports both economic development and environmental stewardship.
Additionally, ITTO’s initiative to improve market access for teak and other high-value timber produced by smallholders is helping reduce barriers to market entry. By improving primary processing and exploring innovative financing models, such as using standing trees as collateral, ITTO is supporting smallholders in meeting their short-term financial needs while ensuring the long-term health of forest ecosystems.
Collaboration and Catalytic Finance for Lasting Impact
ITTO’s approach is based on collaboration with various stakeholders to leverage forest finance for larger, more impactful projects. Through partnerships with organizations like the Food and Agriculture Organization (FAO) and the Asian Forest Cooperation Organization (AFoCO), ITTO is advancing nature-based solutions that promote community-based forestry and sustainable timber enterprises.
Satkuru highlighted that ITTO projects often play a catalytic role, unlocking additional funding from sources such as development banks, the World Bank, national governments, and private-sector partners. For instance, ITTO’s targeted investments, sometimes as low as USD 1.2 million, have led to follow-on funding of several times that amount, delivering lasting benefits for forest-dependent communities and ecosystems.
“ITTO’s role is to transform policy ambitions into practical, bankable actions on the ground. By strategically investing in forest projects, we can unlock larger flows of finance, ensuring a lasting impact for the countries and communities we serve,” Satkuru concluded.
The Path Ahead: Unlocking Forest Finance for a Sustainable Future
As the demand for sustainable forest management grows, ITTO’s efforts to mobilize forest finance will be crucial in helping Asia-Pacific countries meet their climate and conservation goals. Through effective partnerships, innovative financing models, and a focus on local community involvement, ITTO is paving the way for a more sustainable and financially supported forest sector in the region.
In conclusion, leveraging forest finance in the Asia-Pacific region is not just about securing funding—it is about creating lasting, sustainable impacts that benefit people, nature, and the climate. ITTO’s approach demonstrates how targeted investments can unlock a wealth of opportunities for forest conservation, community development, and climate resilience, ensuring a brighter future for both forests and the people who rely on them.
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