124

Donor and ImplementerConference for forest

conservation andSustainable Use

in the Caucasus Ecoregion

11 - 12 September, 2002Tbilisi, Georgia

World Bank/WWF Alliance

for Forest Conservation

and Sustainable Use

DONOR AND IMPLEMENTER CONFERENCE FOR FOREST CONSERVATION AND SUSTAINABLE USE

IN THE CAUCASUS ECOREGION

11-12 SEPTEMBER, 2002 TBILISI, GEORGIA

World Bank/WWF Alliance for Forest Conservation and Sustainable Use

© 2003 WWF Caucasus Programme Office

© 2003 Benefisi Publishing House

Tbilisi, Georgia

Compiled by : Malkhaz Dzneladze, WWF Caucasus Programme Office

Cover photograph : Beech Forest, South Caucasus, Taken from the archives of WWF Caucasus PO

© WWF Caucasus Programme Office

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The World Bank/WWF Alliance for Forest Conservation andSustainable Use is a strategic, performance-based, globalpartnership, formed in response to a crisis - the continueddepletion of the world’s forest biodiversity, the loss of forest-basedgoods and services essential for sustainable development, and theresulting severe impacts on the livelihoods of the rural poor.

To address this concern, the Alliance is working with governments,the private sector, and civil society to create 50 million hectares(124 million acres) of new protected areas of forest. It is alsohelping ensure that a similar amount of existing protected areascome under effective management by 2005.

In the same timeframe, the Alliance aims to have 200 millionhectares (495 million acres) of the world’s production forests underindependently certified management. These three “globalchallenge” targets on areas to be certified, protected, andeffectively managed are set as measurable milestones along theroad to sound stewardship of the world’s forest resources.

Through the Alliance, WWF and the World Bank are committed tofinding ways to achieve more collectively than either organizationcould accomplish independently. Formed in 1998, the Alliancedraws on the comparative institutional strengths of the partnerinstitutions:

� the Bank’s access to policy dialogue, convening power,analytical capacity and financing operations,

� WWF’s strong field presence, private sector partnerships,public trust and forest conservation expertise.

By combining the strengths of the Bank and WWF, and theirpartners, the Alliance is uniquely positioned to effect changes inforest policy and practices, to help safeguard biodiversity, andalleviate poverty. Both organizations realize that the Alliance willonly be as strong as the partnerships it forms with other non-governmental organizations, development institutions, the privatesector, and governments.

With forests being depleted globally at a rate of 28 hectares perminute, the stakes are high. Urgent, significant and coordinatedactions on a global scale are needed to arrest the precipitous andrelentless declines in forest cover, the concomitant loss ofbiodiversity, and the effects on the livelihoods of forest-dependentpeople.

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HIGHLIGHTS OF THE CONFERENCE(EXECUTIVE SUMMARY)

Joint activities of the World Bank/WWF Alliance for Forest Conservationand Sustainable Use in the Caucasus region started in 1999. Since these initial Allianceefforts, Caucasian countries, international donors and non-governmental organizationsin the region have experienced significant changes regarding approaches to the forestsand forestry sector. During the course of the last 3-4 years, a number of forest related andinternationally supported projects have been initiated in the region. At the same time, ithas been understood that the Caucasus forests are one of the unique ecosystems of theEarth, rich with biological and landscape diversity, which constitutes a source of diversegenetic resources and is threatened by substantial manmade pressure, and that theyrequire protection on a multilateral coordinated basis.

In order to facilitate an exchange of information, experiences and major concerns relatedto the conservation and sustainable use of forests in the Caucasus eco-region, the WorldBank and WWF decided to convene an international conference as part of the WorldBank/WWF Alliance for Forest Conservation and Sustainable Use.

The Donor and Implementer Conference for Forest Conservation and Sustainable Use inthe Caucasus eco-region took place in Tbilisi, Georgia on 11-12 September 2002. It wasjointly organized by the World Bank, WWF International and the WWF CaucasusProgramme Office. The conference was attended by 66 participants, representing nationalinstitutions of Azerbaijan, Armenia, Georgia, Russia and Turkey, international and nationaldonor organizations, non-governmental organizations, the World Bank and the WWFCommunity.

Worthy of note is the fact that the conference brought together for the first time high levelofficials of the five Caucasian countries, along with ten major international donors andmore than 40 non-governmental and academic organizations, also representatives ofbusiness circles actively engaged in the region’s forest conservation and sustainable useefforts, even though there are major differences in the practices, current goals andstrategies, circumstances and priorities of the various institutions. This unique tensionbetween international, regional and local environmental, social, political and economicpeculiarities in the Caucasus region, together with common structural characteristics,was taken into account when addressing forest conservation and sustainable use issuesat the conference.

The main objectives of the conference were: (a) Exchange of information on the problemsand perspectives in the field of protection and sustainable use of the Caucasus forestecosystems; (b) Review of international donor and national experience in implementingforest related projects; (c) Elaboration of the joint approach regarding future steps forforest conservation and sustainable use in the Caucasus eco-region.

The goal of the conference was to define gaps and opportunities in the field of forestconservation and sustainable use in the Caucasus eco-region through the analysis ofcurrent projects implemented by various donors, as well as by the Caucasian governmentalorganizations, and to clarify priority areas for further investment.

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Annex IIILIST OF PARTICIPANTS

Specific objectives of the conference were as follows:

(a) To inform the donor society of the actual condition of the Caucasus forests andmanagement practice in the eco-region;

(b) To outline the experience and results of current projects connected with forestconservation and sustainable use in the eco-region;

(c) To present WWF priority draft project proposals, especially on forest trans-borderconservation and sustainable use;

(d) To analyse the links and overlaps between current projects, plans and projectproposals from the WWF Priority Investment Portfolio (see attachment 1);

(e) To define gaps and priority areas for forest conservation and sustainable use in theCaucasus eco-region;

(f) To clarify the interests and opportunities of different donors for supporting identifiedpriority investment projects.

The conference was divided into 4 large themes: 1) Present conditions of forest ecosystemsand forestry practice in the Caucasus; 2) Cross-cutting issues in the Caucasus: rurallivelihoods, social aspects, land-use patterns and threats; 3) Donor projects: experiences,results, lessons learned and plans; 4) Eco-regional approach to forest conservation andsustainable use in the Caucasus. Final plenary discussions focused on 1) Analysis oflinks and overlaps between current projects, plans and proposals; 2) Definition of gapsand priority areas for investment; 3) Identification of interests and opportunities forsupporting priority investment areas.

The key topic under discussion was the eco-regional approach to forest conservation andsustainable use as a tool for priority setting and increasing coordination between countriesand organizations.

The special topics of the conference were: (a) Eco-regional conservation: approaches,methodology and examples; (b) Trans-boundary cooperation in the field of forestbiodiversity protection: practical examples; (c) Effectiveness of existing mechanisms forthe protection of the Caucasus forest ecosystems and related problems and perspectives.

The conference was designed to present data on forest condition; examine cross-cuttingissues, such as the relationship between rural livelihood practices and biodiversityconservation; share lessons learned from the implementation of various projects; and toadvance thinking about the concepts of eco-regional planning and trans-boundarycooperation. Building on the country reports presented by government delegates, thetwo days of plenary sessions and plenary discussion focused on the specifics issues ofthreats and the challenges of moving forward in eco-regional planning and implementation.

Key threats identified in the eco-region included the high demand for firewood, given thelack of alternative energy sources, and the impact that this has had on forest quality.While this has long been an issue in certain regions it has, over the past 10 years, becomemore widely pronounced. Illegal logging, primarily due to weak governance structuresand limited institutional capacity to manage resources, was also determined to be a criticallyimportant issue. Furthermore, the conference discussed the challenges of addressingthe technical aspects of conservation planning - accessing and analyzing data and

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Annex II

CONFERENCE AGENDA

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engaging stakeholders in decision-making processes - with the political challenges ofintegrating the conservation/ sustainable use agenda within a broader framework ofeconomic development and international relations. Finally, it was repeatedly stressedthat human resources constraints, conflicting legal/policy conditions, and a shortage ofoperational funds would, for the foreseeable future, retard conservation efforts.

Based on the results of the final plenary discussion, conclusions and future steps forachieving forest conservation and sustainable use objectives in the Caucasus eco-regionwere presented. The main conclusions and recommendations specifically included fourmain points: (1) Status of the region, (2) Eco-regional conservation process, (3) Investmentportfolio and (4) Next steps.

The key conclusions of the conference were integrated into an investment portfolio, whichin turn was designed based on the identification of gaps and priority areas for investmentsperformed during the plenary sessions and discussions. The most urgent andcomprehensive priority areas for investment were identified as follows: the creation of anetwork of protected areas and the development of trans-border cooperation, combatingillegal logging, the promotion of sustainable firewood management systems and alternativeenergy sources, forest restoration, the development of tourism , increasing stakeholderdialogue, planning and zoning for forest use and High Conservation Value Forest (HCVF)and community-based model projects. It was underlined that the Alliance decided tocontribute to the process further by targeted support for the development of regionaltoolkits for defining and mapping High Conservation Value Forests in Eastern Europe,including a case study for the Caucasus eco-region.

One of the main outcomes of the conference was the decision to form an “Eco-regionalCouncil” that would be charged with advancing discussions between conservationists inthe 5 countries and within their respective nations. The composition of this council, itsterms of reference and financing were not fully elaborated. However, it was broadly feltthat the commitment to form such a body represented an important first step in trying tointegrate the conservation agenda of the various nations into a more coherent eco-regionalframework. The World Bank, WWF, the German government, Conservation International/Critical Ecosystem Partnership Fund, and the MacArthur Foundation among others allexpressed their interest in continuing their active engagement in this important eco-region.

The conference was held in a very constructive and open atmosphere and concluded inindicating important priorities for future work. In this regard, a number of conclusions andfuture steps for action were formulated by conference participants at the end of theconference.

The report below provides a detailed description of conference sessions and includesMinutes of the Conference, Conference Conclusions, Conference Agenda and List ofParticipants.

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d) Summary of Issues on ERC Process

� Inventory and Baseline Data� Training in ERC� Harmonization of Legislation� Integrate with Existing Planning Processes� Participation of Local Populations/Public� Participation of NGO’s Crucial� “Governance” for the Process:

� Eco-regional Council for the Caucasus

3. Investment Portfolio: Gaps and Priority Areas for Investment

� Turkey� Protected Areas (Network and Trans-border)� Illegal Logging� Firewood and Alternative Energy� Forest Restoration:

� Existing Forests and New Forests� Markets and Marketing:

� Timber� NTFP� Wild and Plants� Tourism

� Building Stakeholder Dialogue� Planning and Zoning for Forest Use:

� HCVF� Community Based Projects / Models

4. Next Steps

� Mailing List - Conference Summary� Receive & process feedback� Draft TOR for “Eco-regional Council”� Publish Conference proceedings� Draft ERC “Process Framework” - adjusted for the Caucasus eco-region

(per comments received)

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MINUTES OF THE CONFERENCE

BACKGROUNDThe Caucasus has been identified as one of the Earth’s 25 biologically richestand most endangered terrestrial eco-regions by Conservation International (CI),the World Bank and the GEF. In fact, the Caucasus, with its Colchic andHyrcanian regions, is the most important refuge and relict area of the arcto-tertiary forests in West-Eurasia. These are the only places on earth where warm-temperate deciduous forests have existed constantly since the Tertiary. About5 percent of these forests are still in a virgin state and the largest pristine forestecosystems within a huge geographical zone, which covers Europe and CentralAsia, can be found here. WWF has identified the Caucasus as a priority regionfor forest conservation as well. Forests cover more than 20 percent of the eco-region, making them the largest of any biome consisting of about 500 woodyspecies. Mountain forests make up the majority of the forest biome in the eco-region and play a critical role in preventing soil erosion and regulating waterflow.

WWF initiated regional activities in the Caucasus in 1995 and elaboration ofthe project on trans-border cooperation in the protected areas in EasternCaucasus has begun.

The first eco-region project has proved to be a success and has been carriedout with the support of the John D. and Katherine T. MacArthur Foundation(1999-2000): for the first time in the post soviet period, with the joint efforts ofexperts and responsible representatives of governmental and non-governmentalorganizations of the region’s countries (including those having acute interstatepolitical problems), it was possible for concrete projects to be plannedcooperatively, namely - urgent measures for the conservation of biodiversitywithin the eco-region. Finally, an integrated document - Investment Portfolio,aimed at carrying out urgent measures for conservation and sustainable use ofthe Caucasus biodiversity, was produced. The document received formalapproval from the relevant governmental organizations.

The World Bank has actively started work on nature conservation and sustainableuse in the Caucasus countries. The development of protected areas in EasternGeorgia, the establishment of the Kolkheti National Park in Western Georgia,Georgian forest sector, the sustainable use of nature resources in Armenia andthe establishment of the Shakh-Dag National Park in Azerbaijan are some ofthe projects which are being implemented by the World Bank, some of themjointly with GEF, or are due to be implemented in the Caucasus region.

At the same time, different donor organizations have combined their efforts innature conservation and the sustainable use of nature resources in the Caucasusregion, e.g. UNDP/GEF started implementing a trans-border project forconservation and sustainable use of arid ecosystems in Eastern Caucasus, aswell as a number of other important projects in the Caucasus countries; UNESCOsupported the Caucasus countries in defining World Heritage Sites; with theassistance of the German government, a large-scale project on the developmentof environmental education in Georgia has been carried out and the first NationalPark in the Caucasus - Borjomi-Kharagauli National Park - corresponding tointernational criteria was established. Social infrastructure rehabilitation projectsare ongoing in the park’s support zone and the creation of a community forestrymodel is being planned. The European Union and the Swiss Agency forDevelopment and Cooperation (SDC) support a number of relevant projectsand programmes and USAID supports the implementation of wetlandconservation activities.

Conference Report

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c) ERC: Country Issues

� Armenia:� Maps/Cadastre/Inventory� Training� Trans-boundary Forest PA’s� Inter-country Forest Governance Board� Alternative Energy Sources� Harmonize Legislation between Countries

� Azerbaijan:� Prioritize Work Common throughout the Region� Reforestation� Inventory� Poor Forests - Restoration� Forest Code� Private Sector� Alternative Energy

� Georgia:� Mainly Generic Issues� Human Resources - Qualified People� Lack of Forest Policy� Forest Management - Integrate with Biodiversity� Public Participation� Alternative Fuels

� Russia:� 9 Administrative Districts to be Involved� Partnership between NGOs and Government� Involvement of Local Populations� Governance via an Eco-regional Council - Experience from Far East of Russia� Well Developed System of PA’s provides base for work� Improve Regimes in Protection Forests� Private Sector, especially the Timber Sector� System of Control of Illegal Logging (experience from Far East of Russia)

� Turkey:� Ministry of Forestry of Turkey Ready to Co-operate in the Eco-regional

Process� Need Co-operation with NGO’s� Wish Inclusion of Turkey into the Process as Early as Possible� Need Involvement of, and Interaction between Governments/Ministries,

especially at High Levels� Education and Capacity Building in ERC� Participation of Local Population� Integrate with Current Long-Term Development Plans & Current Forest

Management Plans

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1. OPENING OF THE CONFERENCE AND INTRODUCTORY SPEECHES

On behalf of the government of Georgia, H.E. Mrs. Nino Chkhobadze (Minister, Ministryof Environment and Natural Resources Protection) welcomed the conference participants.In her introductory speech, Mrs. Chkhobadze pointed out the importance of the conferencein addressing problems encountered in the transition process regarding conservationand the sustainable use of forests in the Caucasus region. The conference would be aforum in which to exchange experiences and to discuss how conservation and sustainableforest management could best be ensured in the region in the future.

The conference was addressed by Mr. Andrey Kushlin, Senior Forestry Specialist of theWorld Bank’s Europe and Central Asia Region, and Mr. Duncan Pollard, Head of EuropeanForestry Programme of WWF International. They emphasized the importance of an eco-regional approach for the protection of the Caucasus forest ecosystems in the light of theWorld Bank/WWF Alliance for Forest Conservation and Sustainable Use.

2. ADOPTION OF THE AGENDA

The proposed agenda (Annex II) was adopted.

3. SESSION I : PRESENT CONDITIONS OF FOREST ECOSYSTEMS ANDFORESTRY PRACTICE IN THE CAUCASUS

(DAY 1 - MORNING SESSION)

The present conditions of forest ecosystems and related forestry practices in the transitionprocess were addressed in a series of keynote presentations. The session was chairedby Mr. Duncan Pollard (WWF International).

The keynote presentations on the present conditions of forest ecosystems and relatedforestry practices in the Caucasus eco-region (Armenia, Azerbaijan, Georgia, Russia,Turkey) were given in session I of the conference by the following representatives ofgovernmental organizations: Mr. Artashes Ziroyan, Ministry of Nature Protection of Armenia,Mr. Ali Orudjov, Ministry of Ecology and Nature Resources of Azerbaijan, Mr. AvtandilGeladze, State Department of Forestry of Georgia, Ms. Maria Moskvina, Ministry of NaturalResources of Russia, Mr. Mehmet Demir and Ms. Mhunevver Demirbas, Ministry of Forestryof Turkey. Supplementary information on the present status of forests and related forestrypractices in the North Caucasus was presented by Mr. Andrey Ptichnikov, WWF Russia.

The keynote presentations outlined the ecological, economic and social dimensions ofthe present conditions of forest ecosystems and related forestry practices in the region. Itwas pointed out that the high level of environmental damage, unsuitable forest practicesand policies, social-economic conditions, the energy crisis, an increasing poverty leveland existing institutional capacities not relevant to the real needs of conservation andsustainable forest management constitute the most important challenges to be addressedin the future in transitional countries.Speakers outlined that forests are the main biomes of the Caucasus eco-region, which is

2. Eco-regional Conservation Process

a) Political, Financial and Technical Dimensions of Conservation Planning:

� Eco-regional Conservation (ERC):� Technical and Political Process

� Complexity of Funding for the Region as a Whole:� Georgia, Azerbaijan, Armenia, Turkey, Russia and, potentially, Iran

� Coordination of 5 Countries

b) Eco-Regional Conservation (ERC) General Issues:

� Technical Process:� Current Site-Scale Projects - Urgent Conservation Activities� Ecological Assessment vs. Biological Assessment� Eco-regional Planning vs. Land Use Planning� Cover all Critical Habitats

� Political Process:� Different Countries are at Different Levels� Context of ERC within Wider Economy and Integration with Cross Sectoral

Impacts� Involve Political Elements. International & Intergovernmental Relations� Pan-European Biodiversity and Landscape Diversity Strategy

� Who:� Not just Conservationists. Include Local Stakeholders.� Why WWF? Not just WWF. Wide Participation in the Process� Peer Review of Process

� Constraints:� Data Accuracy, Existing Information and Capacity to Update� Is this thing too big?

� Customize the Process in the Caucasus

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distinguished by an extraordinarily high level of biodiversity. However, the socio-economiccrisis in the countries of the region (Azerbaijan, Armenia, Georgia and the RussianFederation) has primarily affected forest ecosystems: the forest has become the mainenergy source for the rural population. Illegal forest cut and export, as well as poaching,have significantly increased in the forests, and the combined efforts of the region’s countriesmay solve these problems.

Also, it was mentioned that in some countries forest damage was aggravated by militaryconflicts.

In the keynote presentation of the representatives of the Turkish Ministry of Forests, thegeographic characteristics of the Turkish Caucasus ecological sub-region were outlined.It was illustrated that the Turkish Caucasus ecological sub-region covers the Northernpart of East Anatolia and the East Black Sea coast.

Also, the following major issues influencing the sustainability of natural resource use andthe conservation of biodiversity in Turkey were described: a weak capacity to implementthe overall strategy for environmental management; forest resource planning and utilizationsystems do not adequately incorporate environmental and biodiversity conservation issues;unsustainable resource management systems, a lack of intersectoral and sectoralcoordination and a lack of public awareness of the importance of Turkish biodiversity. Atthe same time, it was pointed out that Turkey is the only non-transition country in theregion.

The issues of the present conditions of forest ecosystems and related forestry practicesin the region were further addressed in the subsequent discussion. Different countryexperiences were highlighted, indicating similar problems concerning conservation andsustainable forest use, especially in the countries with transitional economies.

4. SESSION II : CROSS-CUTTING ISSUES IN THE CAUCASUS: RURALLIVELIHOODS, SOCIAL ASPECTS, LAND-USE PATTERNS AND THREATS

(DAY 1 - MORNING SESSION)

Session II of the conference focused on the cross-cutting issues in the Caucasus region,in particular on livelihoods, social aspects, land-use patterns and threats. It was chairedby Mr. Duncan Pollard (WWF International).

The keynote presentations were given in session II by the following NGO representativesfrom the region: Mr. Udo Hirsch, CUNA Georgia, Mr. Sedat Kalem, WWF Turkey, Mr.Alexander Krokhmal, WWF Russia and Mr. Manaf Suleimanov, Ecological Union,Azerbaijan.

In addition to the keynote presentations, the following speakers presented their views oncurrent developments in the transition process in the Armenian forestry sector: Mr. SergeyShashikyan and Mr. Araik Mejlumyan, both representatives of the Ministry of NatureProtection of Armenia.Diverse aspects of the cross-cutting issues concerning rural livelihoods, social aspects,

CONFERENCE CONCLUSIONS

Agenda (Topics):

1. Status of the Region2. Eco-regional Conservation Process3. Investment Portfolio4. Next Steps

1. Status of the Region: Threats and Issues

� Illegal Logging:� Lack of Governance and Low Level of Law Enforcement,

High Level of Forest� Degradation of Biodiversity, High Level of Poverty

� High Level of Demand for Firewood:� High level of Poverty, Lack of Alternative Energy

� Erosion and Poor Water Management

� Lack of Resources and Local Capacity:� Sustainability of Current Funding

� Community Involvement:� Poor Connections to Governments, Participation in

Projects

� Protection, Management, Restoration:� Reduction of Forest Functionality� Increase of Deforestation

� High Conservation Value Forest (HCVF):� Need for Planning/Zoning Tool and Management Tool

� Markets and Marketing:� Firewood/Energy� Sources of Income (NTFP, Tourism)

� Community Forestry

� Governance Issues

Annex I

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land-use patterns and threats were highlighted in the keynote presentations. It wasmentioned that rapidly rising poverty and deteriorating governance have put pressure onforests to meet subsistence needs, and that the collapse of the rural and agriculturalinfrastructure substantially threatened rural livelihoods. It was emphasized that marketoriented, environmentally friendly and community based projects could influence thesituation in rural areas. A number of these types of projects were illustrated.

It was outlined that countries of the region have a large rural population, a large numberof very poor rural people and very weak local governance, and that the poverty level inrural areas is lower than, or similar to, urban areas in Armenia, Georgia and Russia, buthigher in Azerbaijan. It was also mentioned that in countries with transitional economies,small and fragmented plots hamper efficient agricultural production and, consequently,rural development and that there are few economies of scale in marketing and inputacquisition, given the fact that land reform has been virtually completed with full privateownership on rural lands and transferability, that titling and registration are underway andthat land markets are beginning to emerge but are not yet active.

The issues raised in the above presentations were further taken up in a subsequentdiscussion.

5. SESSION III : INFORMATION ON DONOR PROJECTS: EXPERIENCES, RESULTS,LESSONS LEARNED AND PLANS

(DAY 1 - AFTERNOON SESSION)

Session III presented information on internationally supported ongoing and planned projectsin the region, experiences, results and lessons learned in the course of the implementationprocess. Session III was chaired by Mr. Duncan Pollard (WWF International) and later byMr. Andrey Kushlin (World Bank).

The keynote presentations were given in session III by Mr. Andrey Kushlin, World Bank,Ms. Keti Chachibaia, UNDP, Mr. Peter Argo, USAID, Mr. Uli Graebener, UNESCO, Mr.Hans Aeppli, KfW, Ms. Susan King, MacArthur Foundation, Ms. Donell Ocker, CEPF, Ms.Lina Panteleeva, Eurasia Foundation and Mr. Szabolcs Nagy, Birdlife International.

The speakers gave presentations on the ongoing and planned activities of the donororganizations relevant to forest conservation and sustainable management in the region.The speakers, inter alia, focused on the problem of overlapping and parallel work in theplanning and implementation process.

In particular: valuable information was presented by Mr. Andrey Kushlin (World Bank) onthe World Bank’s new forest policy and strategy. The three main pillars of the new strategywere explained:(1) Harnessing the potential of forests to reduce poverty; (2) Integrating forests intosustainable economic development; and (3) Protecting local and global forest values.Information was also presented on the natural resources management portfolio in the

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of practitioners and civil society) is considered to be of particular concern. It was mentionedagain that WWF International would draft terms-of-reference for the Caucasus Eco-regionalCouncil and circulate among conference participants for comments.

An investment portfolio [3] was designed based on the identification of gaps and priorityareas for investments revealed during the plenary sessions and discussions at theconference. The creation of a protected areas network and the development of trans-border cooperation, combating illegal logging, the promotion of sustainable firewoodmanagement systems and alternative energy sources, forest restoration, the developmentof tourism, building of stakeholder dialogue, planning and zoning for forest use, HCVFand community based model projects were identified, inter alia, as the most urgent andcomprehensive priority areas for investment.

Next steps (4), along with standard follow up logistics, include preparation and considerationby the conference participants (Annex III) of the draft ERC “Process Framework” - adjustedfor the Caucasus eco-region.

Finally, it was noted that the conclusions of the conference would reflect very well thevariety of challenges for conservation and sustainable forest use faced by the countriesof the region. Furthermore, it was also acknowledged that the various similarities betweenthe approaches elaborated by the conference underline the significance of the issuesdiscussed.

9. CLOSURE OF THE CONFERENCE

In concluding the meeting, the chairpersons Mr. Andrey Kushlin (on behalf of the WorldBank) and Mr. Duncan Pollard (on behalf of WWF International) thanked the conferenceparticipants for their most interesting presentations and active participation and also forthe comments and suggestions made in the discussions. They pointed to the success ofthe conference as a platform for future dialogue and cooperation created through it.

Finally, with kind permission of the conference participants, on their behalf and on behalfof the whole WWF community, Mr. Hartmut Jungius (WWF International) expressed thanksto the chairpersons and the host organization of the conference - WWF CaucasusProgramme Office.

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Caucasus region. The speaker underlined the following key priorities for new World Bankprojects:

(1) Pilot models for social and financial sustainability in forest and protected areasmanagement that: implement community-based models for watershed management andprotection; resolve land and resource tenure uncertainties and problems; promote rurallivelihoods and energy security, and develop revenue generating/cost recoverymechanisms for the public sector; and (2) Develop regionally compatible standards/pilotsfor: forest and range management (including the integration of biodiversity conservationand watershed/landscape planning into management practices); auditing of compliancewith national standards (including monitoring/control of illegal logging), national systemsfor certification of SFM; protected areas management and monitoring, and landscapelinkages: protected area networks and corridors. The speaker also pointed to severalopportunities for regional collaboration with existing and potential partners in the Caucasushazard management, monitoring and mitigation (e.g. forest fires & pests); river basin /watershed management; trans-boundary forest and ecosystems management; governancein resource use and trade (e.g. monitoring of illegal timber trade); coastal and internationalwaters / wetlands; and tourism development.

Ms. Keti Chachibaia’s (UNDP) presentation was focused on UNDP’s ongoing activities inthe Caucasus region. She pointed to poverty reduction and economic growth, institutionalcapacity building and strengthening, environmental and GEF supported conservation effortsof UNDP. The speaker especially stressed the need for better coordination between thedonor organizations to insure avoidance of overlaps and parallel work in the sphere offorest conservation and sustainable use.

Mr. Peter Argo (USAID) highlighted programmes and projects supported by USAID in theregion. In the context of forest conservation and sustainable use, he particularly pointedto the community based rural energy focus of USAID that, in turn, serves also as anapplicable instrument to protected forests and forest ecosystems in the Caucasus region.

Mr. Uli Graebener (UNESCO) illustrated the framework of protection of the world culturaland natural heritage and the conservation of forest ecosystems in particular. The speakergave detailed information on UNESCO’s current role and activities in the Caucasus region.In the above context it was explained that UNESCO is promoting the establishment ofbiosphere reserves in the Caucasus with emphases on regional and trans-border biospherereserves, and that there is a great niche for cooperation between the countries, differentstakeholders and international donor organizations. Mr. Uli Graebener also underlinedthe importance of coordinated action in the region.

Mr. Hans Aeppli (KfW) reported on German government supported and environmentallyoriented financial programmes, which are implemented in the Caucasus region throughthe German Bank for Reconstruction and Development (KfW). It was outlined that KfW isfocused mainly on Armenia, Azerbaijan and Georgia, and that this limits the application ofa regional approach to the South Caucasus only. The speaker especially pointed to anongoing conservation project aimed at establishing the first European type national park,and also to planned community forestry development in Georgia. In the above context Mr.Hans Aeppli brought clear examples of successful cooperation and coordination with WWF.

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constraints and, at the same time, it should have a clearly defined format for participationand be open to other qualified participants, who might become interested at a later stage.It was agreed that WWF International would draft terms-of-reference for the CaucasusEco-regional Council for circulation to conference participants for comments.

In general, the plenary discussion also confirmed the importance and success of theconference in allowing communication and an exchange of views and experiencesamong conference participants.

It was agreed that Mr. Andrey Kushlin (World Bank) and Mr. Duncan Pollard (WWFInternational) would summarize and integrate the results of the plenary discussion, aswell as discussions held in previous sessions, into conference conclusions and next stepsfor future action to be presented during the final stage of the conference.

8. CONCLUSIONS AND NEXT STEPS

Based on the results of the final plenary discussion, Mr. Andrey Kushlin (World Bank) andMr. Duncan Pollard (WWF International) presented conclusions and next steps (Annex I)to be taken in future to achieve forest conservation and a sustainable use objective in theCaucasus eco-region.

The main conclusions and recommendations specifically included four main points: (1)Status of the region, (2) Eco-regional conservation process, (3) Investment portfolio and(4) Next steps. These main points were explained in detail by Mr. Andrey Kushlin and Mr.Duncan Pollard.

Particularly, it was noted that status of the region [1] addressed the following threats andissues characteristic of the Caucasus eco-region: illegal logging, the high level of demandfor firewood, erosion and poor water management, lack of resources and local capacity,community involvement, lack of protection, management and restoration, the need forintroduction and implementation of the concept of High Conservation Value Forest (HCVF),markets and marketing and the need for development of community forestry andgovernance issues. Special emphasis was given to the overall economic and transitionalproblems and the lack of resources and local capacity in the newly independent states ofthe Caucasus. Also, it was underlined that the Alliance decided to contribute to the furtherprocess by targeted support to the development of regional toolkits for defining and mappingHigh Conservation Value Forests in Eastern Europe, including a case study of the Caucasuseco-region.

Eco-regional conservation process [2] was broken down and presented as follows: (a)Political, financial and technical dimensions of conservation planning, (b) Eco-regionalconservation general issues and (c) Eco-regional conservation country issues. Finally,the main points of all the above sections were integrated into summary issues of the eco-regional conservation process. It was outlined that the development of coordinationmechanisms for the implementation of eco-regional planning is crucial for the whole processof eco-regional conservation. In this context, the creation of an Eco-regional CoordinationCouncil based on a broad stakeholder representation (including governmental agenciesfrom the five participating countries, key donors and contributing NGOs, representatives

10

Finally, he explained the scope and main directions of a KfW supported new study for theSouth Caucasus. It was noted that the study is part of the “Caucasus Initiative”, launchedby the German Ministry of Co-operation and Development (BMZ), concentrating on, amongother sectors (legal reform, energy, small and medium enterprises, health, local democracy),the development of a joint strategy for nature and biodiversity conservation in the uniqueCaucasus eco-region as one potential field of cooperation between Georgia, Armeniaand Azerbaijan. The study is funded by the German Bank for Reconstruction andDevelopment (KfW) and has a total duration of 9 months, starting in mid August 2002 withan anticipated end date in mid May 2003. Also, it was mentioned that the study will providean appraisal of possible projects to be financed through German financial cooperation,that the investment criteria of KfW will be considered to select a few projects in closecooperation with KfW, that it is expected to identify projects in the field of protected areamanagement, including investment components - e.g. upgrading of infrastructure andinstitution building, and that, as an initial step, the German government has reserved aninvestment budget in the order of 5 million Euro. The speaker especially pointed to thefact that the study is seen as a starting point for future activities of the “Caucasus Initiative”in the field of environmental protection, that it will elaborate a future planning documentfor the implementation of potential projects qualifying for funding by German financialcooperation and that, in addition, the study may also be used by other donors and thegovernments of the countries involved for the identification of future interventions.

Ms. Susan King (MacArthur Foundation) outlined the Foundation’s overall objectives,goals and activities. She specifically addressed the Foundation’s interest in conservationand sustainable development throughout the world. It was noted that the MacArthurFoundation has established a Conservation and Sustainable Development Area that isdedicated to conserving biodiversity, enhancing knowledge of how to use natural resourcessustainably over the long term, and promoting environmentally sustainable economic growthbenefiting those living in or near sensitive areas, and that the area’s exclusive focus is ondealing with the problems of endangered species. In the context of the above observation,the speaker highlighted the successful experience of eco-regional planning in cooperationwith the WWF, which has resulted in a multinational and multidisciplinary study on anInitial Investment Portfolio for the Biodiversity of the Caucasus Eco-region, and that it wasthe first eco-regional planning project, during which a WWF Priority Investment Portfoliohad been created. Ms. Susan King also presented her view on opportunities for thedevelopment of better coordination in the sphere of forest conservation and sustainableuse in the Caucasus region.

Ms. Donell Ocker (CEPF) presented detailed information on the Critical EcosystemPartnership Fund’s initiatives. She explained that CEPF is an alliance that was formed inAugust 2000 between the World Bank, GEF, CI, the Government of Japan and theMacArthur Foundation with a goal of investing over $150 million in biodiversity conservationstrategies in the hot spots over the next five years. Geographically, CEPF is focused onthe areas that fulfil the following criteria: eligible for funding, biodiversity hot spot; WorldBank borrowing member country, and a country that has ratified the Convention onBiological Diversity. The speaker listed 10 active grant regions of the CEPF and six newpreparation regions, including the Caucasus eco-region. It was outlined that the preparationphase in the Caucasus is being initiated and will be led by WWF. In this context, Ms.Donell Ocker particularly pointed out the steps of the preparation phase in the Caucasus,

15

7. FINAL PLENARY DISCUSSION : A) ANALYSIS OF LINKS AND OVERLAPSBETWEEN CURRENT PROJECTS, PLANS AND PROPOSALS FROM WWF’SINVESTMENT PORTFOLIO / B) DEFINITION OF GAPS AND PRIORITY AREAS FORINVESTMENTS / C) IDENTIFICATION OF INTERESTS AND OPPORTUNITIES FORSUPPORTING PRIORITY INVESTMENT AREAS

The final plenary discussion was jointly chaired by Mr. Andrey Kushlin (World Bank) andMr. Duncan Pollard (WWF International).

As a starting point for final plenary discussion, the major challenges/issues of relevanceof eco-regional conservation and sustainable forest use in the region were finallysynthesized into the following three major aspects: a) Analysis of links and overlaps betweencurrent projects, plans and proposals from WWF’s Investment Portfolio; b) Definition ofgaps and priority areas for investment; c) Identification of interests and opportunities forsupporting priority investment areas.

Prior to the plenary discussion, the following representatives of the NGO and privatesector gave presentations related to their activities in the region with regard to naturalresources conservation and sustainable use: Ms. Nato Kirvalidze, REC Caucasus, Ms.Mzia Gvilava, GRID Tbilisi, Mr. Ramaz Gokhelashvili, Georgian Centre for Conservationof Wildlife and Mr. Faig Askerov, British Petroleum Caspian.

In general, the plenary discussions outlined the need for supporting the eco-regionalapproach as a main instrument for the planning and implementation of conservation andsustainable forest management projects in the Caucasus region. Discussions stressedthe fact that eco-regions highlight the most outstanding habitats and are designed toserve as a blueprint for biodiversity conservation on a global scale, and that the Caucasusis also among the top 25 biologically richest and most endangered hot spots in the worldas recognized by Conservation International (CI) and Critical Ecosystem Partnership Fund(CEPF).

For each of the major aspects of the plenary discussion and the related challenges/issues,there were a number of lessons learned identified by the participants of the conference.Consequently, the major issues at national and eco-regional level, the political, financialand technical dimensions of conservation planning, the gaps and priority areas forinvestments, as well as related recommendations for inclusion in the conferenceconclusions, were formulated.

It should emphasized that the idea of the development of coordination mechanisms forimplementation of eco-regional planning was supported by the conference participants.In particular, Mr. Andrey Ptichnikov (WWF) and Mr. Sergey Milenin (World Bank) sharedwith workshop participants their information on positive experiences in the establishmentand functioning of eco-regional coordination bodies in the Russian Far East and the LakeBaikal region. Conference participants discussed the idea of setting up a similarcoordinating mechanism for the Caucasus eco-region (e.g. Eco-regional CoordinationCouncil). There was consensus that such a body should be based on a broad stakeholderrepresentation and should include representatives of interested governmental agenciesfrom the five participating countries, key donors and contributing NGOs, representativesof practitioners and civil society. It was also understood that such a ‘council’ should besufficiently informal - at least at its initial stage - to allow flexibility and minimize bureaucratic

11

that include, but are not limited to, the definition of conservation targets (outcomes) andpriorities, broad input and consultation, ecosystem profile preparation, stakeholderconsultations, donor agency consultation, the determination of thematic opportunities anda niche for CEPF investment. Also, the speaker mentioned the timeframe for the preparationphase in the Caucasus (September 2002 - July/August 2003, to this end grant resourcewill be available for application). Information was also given about the technical reviewprocess of ecosystem profiles, parties involved in the technical review process (CEPFWorking Group Members representing each of the donor organizations, GEF NationalFocal Points, IUCN - Species Survival Commission and Birdlife International) and theamount of resources available for application (between $5 million - $9 million). It wasespecially outlined that resources allocated by the CEPF donor council will be availablefor application across the entire Caucasus region and that more specific geographic andthematic priorities will be determined through the preparation and profiling phase. Finally,the speaker once again pointed to the major objectives and targets of the CEPF - e.g. thatthe CEPF is: for civil society, NGOs and private sector; interested in stimulating partnershipsand alliances to achieve biodiversity conservation; designed as a complementary fundingmechanism; is rapid and flexible, protecting nature’s hot spots for people and prosperity.

Ms. Lina Panteleeva (Eurasia Foundation) pointed to the Eurasia Foundation’s SouthCaucasus Cooperation Programme and Priorities for 2003. Among the priorities mentionedwere institution building, benefiting of individuals, regional collaboration and globalintegration. It was outlined that the Eurasia Foundation was established in 1998 to providegrants to support innovative cross-border projects addressing issues of concern in theSouth Caucasus region, that the main target areas for funding are: private enterprisedevelopment, civil society and public policy, environmental issues and cultural projects. Information was also given on confidence building measures addressing regional concernsspecific to the South Caucasus (regional seismic projects, environmental issues, waterrights, etc.) and support for the adoption and implementation of internationally recognizedstandards. For a better understanding of the scope of work of the Foundation, the speakerprovided details on the South Caucasus Cooperation Programme and activities with anenvironmental focus, such as baseline environmental evaluation, cluster-meetings onenvironmental policy and water management, development of recommendations forapplying international standards and protection norms to trans-boundary reservoirs,environmental public advocacy, harmonization of water resources legislation in the SouthCaucasus, raising public awareness of environmental protection and the water rightsissues in trans-boundary regions etc.

Mr. Szabolcs Nagy (Birdlife International) addressed the activities of Birdlife Internationalthroughout the world and in the Caucasus in particular. The speaker especially noted theimportance of an eco-regional approach to be applied for forest conservation andsustainable use in the Caucasus, the fact that the activities and scope of work of BirdlifeInternational fully fit in with the above framework and that Birdlife International is totallyopen to future cooperation with interested parties, including donor organizations.

Aspects of funding and international coordination, within the framework of eco-regionalconservation and sustainable forest use, were further discussed in more detail by theconference participants.

14

principally pointed out that one of the main goals of the Initial Investment Portfolio for theBiodiversity of the Caucasus Eco-Region was the establishment of a biodiversity eco-regional coordination council. The lack of coordination among the countries in the Caucasuseco-region hampered biodiversity conservation efforts. Different approaches to speciesconservation on opposite sides of the border resulted in artificial migrations and speciesdecline. Intense logging or grazing near administrative boundaries threatened theecosystem’s granted protection just over the border. A network of protected areas for theentire eco-region (Econet) could only be successfully established by opening the avenuesof international cooperation and by reaching agreement on key issues involvingmanagement and development of the system. International donors and conservationorganizations investing in conservation measures in the eco-region wanted to be assuredthat their efforts would not be redundant or hindered by the lack of coordination amongthe different countries. An independent body with national and international authority shouldbe established to coordinate conservation efforts in the region, oversee the developmentand implementation of the Econet and ensure synchronized approaches to biodiversityconservation. This coordinating council should be made up of high-level decision makersfrom each country, regional and international NGOs, scientists and representatives of thepublic. To ensure that the countries are committed to carrying out the recommendations ofthe committee, this body should be voluntary. Once the coordinating council is created,conservation projects would receive greater attention from national governments.Coordination of conservation programmes in the region would help to avoid redundancyand increase the likelihood of success of eco-region projects.

Furthermore, the eco-regional conservation approach, as well as aspects of implementationand planning of eco-regional projects, were discussed in more detail by the conferenceparticipants. During the discussions participants’ feedback was recorded on flipchartsthat later were integrated into the conference conclusions and next steps. Key commentsfrom the floor were addressed to the issues of landscape planning, the increasingly widelyused notion of “High Conservation Value Forests”, the strengthening of upfront multi-stakeholder roles (including practitioners, not only scientists), the mainstreaming ofconservation planning into land management and economic development decision-making.It was underscored that the participants reached consensus agreement with the basicprinciples of eco-regional planning and recommendation to the WWF to customize thepresented eco-regional planning process to the requirements of the Caucasus. As a resultof this constructive discussion, the Alliance decided to contribute to further process bytargeted support to the development of regional toolkits for defining and mapping HighConservation Value Forests in Eastern Europe, including a case study for the Caucasuseco-region. The participants noted that future studies on the Caucasus eco-region shouldbuild more strongly upon the comprehensive work recently completed by others, such asUNEP’s Caucasus Environmental Outlook. It has to be mentioned that the WWF providedclarifications on how the KfW supported work in the South Caucasus would becomplemented and coordinated with similar activities in Russia’s North Caucasus and inTurkey. For example, following WWF’s success in mobilizing additional funds, the studyarea will be expanded to the entire Caucasus eco-region, now including the border areasto Turkey and the Russian Federation. This will mainly affect the biodiversity vision,following the provision of additional data by the WWF offices in both countries. Within theKfW funded part, socio-economic analyses and regional planning will, however, berestricted to the three South-Caucasian countries.

It was understood that WWF’s concept of an eco-regional approach is crucial for buildingup a comprehensive and problem-solving mechanism for eco-regional activities.

12

6. SESSION IV : ECO-REGIONAL APPROACH TO FOREST CONSERVATION ANDSUSTAINABLE USE IN THE CAUCASUS

(DAY 1 - AFTERNOON SESSION, DAY 2 - MORNING SESSION)

Session IV addressed the challenges concerning eco-regional conservation methodologyand implementation practice. Session IV consisted of two parts - it was opened on day 1(afternoon session) and closed on day 2 (morning session) of the conference. Both partsof the session were chaired by Mr. Andrey Kushlin (World Bank).

The following speakers presented their views on issues of eco-regional conservationmethodology and implementation practice: Mr. Michael Evers, WWF Germany, Mr. GeorgBauer, AHT International, Mr. Vladimir Krever, WWF Russia, Mr. Ahmet Birsel, WWFTurkey and Mr. Nugzar Zazanashvili, WWF Caucasus.

The session’s main topics were: a) eco-regional conservation: methodology andexamples from the field; b) regional study for the South Caucasus; c) presentation ofWWF’s eco-regional projects; d) Common vision for forest conservation andsustainable use in the Caucasus eco-region.

Mr. Michael Evers, WWF Germany, illustrated WWF’s experience in defining, planningand implementing eco-regional projects worldwide. He cited eco-regional conservationmethodology and some clear examples from the field (the alpine project), e.g. goals ofbiodiversity conservation, the idea of eco-regional conservation, eco-regional planning.Furthermore, he explained in detail the fundamental goals of biodiversity conservation,such as the representation of all distinct natural communities within conservationlandscapes and protected areas networks, the maintenance/restoration of viablepopulations of all native species within their natural communities, the maintenance/restoration of ecological and evolutionary processes that create and sustain biodiversity,the conservation of blocks of natural habitat large enough to be resilient to large-scalestochastic and deterministic disturbances and long-term changes. The main principles foreco-regional planning and a framework of eco-regional conservation development of thebiodiversity vision (land use planning instrument, clear focus on the preservation ofbiodiversity, multidisciplinary approach, building of partnerships, long-term engagement,identification of focal species for different taxa, key habitats and ecological processesthat support the eco-region’s biodiversity) were presented. Information was also given onthe WWF’s current eco-regional planning status in the Europe/Middle East programme,which includes 31 eco-regions in the Europe/Middle East Program of WWF and 12 eco-region initiatives selected as priorities including the Caucasus, and that the WWF hasworking experience in 24 of the 31 eco-regions. Also, the following important lessonslearned from different eco-regions were highlighted: (1) There is no single recipe for eco-regional planning; (2) Eco-region conservation requires an integrative and holistic approachfor achieving the conservation vision; (3) WWF cannot carry out eco-region conservationalone; (4) Engagement of governments towards realizing the biodiversity vision is crucial;(5) Long-term funding commitments are essential.

Mr. Georg Bauer, AHT International gave additional details to the information previouslypresented by Mr. Hans Aeppli (KfW) in session III on the KfW supported regional study forthe South Caucasus. The speaker highlighted the main objectives and expected outputs,as well as the methodology and workflow of the study. In particular, he outlined that, due

13

to geopolitical factors and the overall economic situation in the region after the breakdownof the Soviet system, the eco-region is exposed to a number of threats to its biodiversitysuch as illegal logging, poaching, inappropriate land use and pollution; that Georgia,Armenia and Azerbaijan, all countries in political and economic transition, still lack anefficient institutional and legal set-up and adequate financial means to protect theenvironment; that civil society is not yet capable of playing a significant role in environmentalprotection; and that, although different efforts have already been made to addressenvironmental protection within the various countries, no initiative is yet in place for asupranational approach for the eco-region. The speaker also pointed to the followingpotential results of the study: elaborated vision of an eco-regional conservation plan,defined priority measures and projects, proposed nature and biodiversity programme forfinancing by German financial cooperation and facilitated stakeholder dialogue.Furthermore, detailed explanations on each of the results were given. It has to be mentionedthat Mr. Georg Bauer brought the attention of the conference participants to the fact thatthe vision to be elaborated shall serve as a supranational planning document expressinga joint commitment for the implementation of a nature conservation strategy, and that it isan instrument that needs to be designed for a long term perspective e.g. 30 - 50 years.Consequently, the eco-regional vision will also include proposals for the improvement ofthe institutional and legal gaps and weaknesses in the environmental and related sectorsto improve the overall conditions for the implementation of a nature conservation strategy.The speaker also explained the overall workflow of the study and his approach to theimplementation of the study, which, inter alia, includes the results of the sector analysis tobe incorporated in a geographical information system and presented in the form of thematicmaps or separate reports. Parallel to this, the potentials and constraints will be identifiedusing a regional planning approach at supranational level. Finally, it was mentioned thatconcrete project proposals and priority measures will be formulated according to clearlydefined selection criteria for their prioritization, and that project profiles will be confined toa standard format (short report, fact sheet, map) covering the major objectives, resultsand activities, their impact and risks and aspects of institutional and financial viability andsustainability.

Mr. Vladimir Krever, WWF Russia, Mr. Ahmet Birsel, WWF Turkey and Mr. NugzarZazanashvili, WWF Caucasus, gave detailed characteristics of the ongoing and plannedactivities of WWF organizations in the Russian part of the Caucasus, Turkey and Georgia.

In the session’s final keynote presentation Mr. Nugzar Zazanashvili, WWF Caucasus,focused on the concept of a common vision for forest conservation and sustainable use inthe Caucasus eco-region. He explained in detail the main dimensions of a recentlycompleted multinational study on Initial Investment Portfolio for the Biodiversity of theCaucasus Eco-region. It was emphasized that it was with the support of the MacArthurFoundation that the first eco-regional planning project, during the implementation of whichthe WWF Priority Investment Portfolio had been created, paved the way to further eco-regional planning activity with additional implementing possibilities of concrete projects inthe sphere of biodiversity conservation and sustainable use of the region, and that about150 scientists, experts, specialists of governmental organizations and NGOs from 4countries of the region were involved in the elaboration of the Initial Investment Portfoliofor the Biodiversity of the Caucasus Eco-Region. It was also mentioned that, according tothe above study, the following six focus areas were delineated: institutional strengtheningand capacity building, network of protected areas (Econet), endangered species andspecies of special concern, priority biomes (forests, high mountains and wetlands),sustainable resources use and public awareness and conservation education. The speaker

12

6. SESSION IV : ECO-REGIONAL APPROACH TO FOREST CONSERVATION ANDSUSTAINABLE USE IN THE CAUCASUS

(DAY 1 - AFTERNOON SESSION, DAY 2 - MORNING SESSION)

Session IV addressed the challenges concerning eco-regional conservation methodologyand implementation practice. Session IV consisted of two parts - it was opened on day 1(afternoon session) and closed on day 2 (morning session) of the conference. Both partsof the session were chaired by Mr. Andrey Kushlin (World Bank).

The following speakers presented their views on issues of eco-regional conservationmethodology and implementation practice: Mr. Michael Evers, WWF Germany, Mr. GeorgBauer, AHT International, Mr. Vladimir Krever, WWF Russia, Mr. Ahmet Birsel, WWFTurkey and Mr. Nugzar Zazanashvili, WWF Caucasus.

The session’s main topics were: a) eco-regional conservation: methodology andexamples from the field; b) regional study for the South Caucasus; c) presentation ofWWF’s eco-regional projects; d) Common vision for forest conservation andsustainable use in the Caucasus eco-region.

Mr. Michael Evers, WWF Germany, illustrated WWF’s experience in defining, planningand implementing eco-regional projects worldwide. He cited eco-regional conservationmethodology and some clear examples from the field (the alpine project), e.g. goals ofbiodiversity conservation, the idea of eco-regional conservation, eco-regional planning.Furthermore, he explained in detail the fundamental goals of biodiversity conservation,such as the representation of all distinct natural communities within conservationlandscapes and protected areas networks, the maintenance/restoration of viablepopulations of all native species within their natural communities, the maintenance/restoration of ecological and evolutionary processes that create and sustain biodiversity,the conservation of blocks of natural habitat large enough to be resilient to large-scalestochastic and deterministic disturbances and long-term changes. The main principles foreco-regional planning and a framework of eco-regional conservation development of thebiodiversity vision (land use planning instrument, clear focus on the preservation ofbiodiversity, multidisciplinary approach, building of partnerships, long-term engagement,identification of focal species for different taxa, key habitats and ecological processesthat support the eco-region’s biodiversity) were presented. Information was also given onthe WWF’s current eco-regional planning status in the Europe/Middle East programme,which includes 31 eco-regions in the Europe/Middle East Program of WWF and 12 eco-region initiatives selected as priorities including the Caucasus, and that the WWF hasworking experience in 24 of the 31 eco-regions. Also, the following important lessonslearned from different eco-regions were highlighted: (1) There is no single recipe for eco-regional planning; (2) Eco-region conservation requires an integrative and holistic approachfor achieving the conservation vision; (3) WWF cannot carry out eco-region conservationalone; (4) Engagement of governments towards realizing the biodiversity vision is crucial;(5) Long-term funding commitments are essential.

Mr. Georg Bauer, AHT International gave additional details to the information previouslypresented by Mr. Hans Aeppli (KfW) in session III on the KfW supported regional study forthe South Caucasus. The speaker highlighted the main objectives and expected outputs,as well as the methodology and workflow of the study. In particular, he outlined that, due

13

to geopolitical factors and the overall economic situation in the region after the breakdownof the Soviet system, the eco-region is exposed to a number of threats to its biodiversitysuch as illegal logging, poaching, inappropriate land use and pollution; that Georgia,Armenia and Azerbaijan, all countries in political and economic transition, still lack anefficient institutional and legal set-up and adequate financial means to protect theenvironment; that civil society is not yet capable of playing a significant role in environmentalprotection; and that, although different efforts have already been made to addressenvironmental protection within the various countries, no initiative is yet in place for asupranational approach for the eco-region. The speaker also pointed to the followingpotential results of the study: elaborated vision of an eco-regional conservation plan,defined priority measures and projects, proposed nature and biodiversity programme forfinancing by German financial cooperation and facilitated stakeholder dialogue.Furthermore, detailed explanations on each of the results were given. It has to be mentionedthat Mr. Georg Bauer brought the attention of the conference participants to the fact thatthe vision to be elaborated shall serve as a supranational planning document expressinga joint commitment for the implementation of a nature conservation strategy, and that it isan instrument that needs to be designed for a long term perspective e.g. 30 - 50 years.Consequently, the eco-regional vision will also include proposals for the improvement ofthe institutional and legal gaps and weaknesses in the environmental and related sectorsto improve the overall conditions for the implementation of a nature conservation strategy.The speaker also explained the overall workflow of the study and his approach to theimplementation of the study, which, inter alia, includes the results of the sector analysis tobe incorporated in a geographical information system and presented in the form of thematicmaps or separate reports. Parallel to this, the potentials and constraints will be identifiedusing a regional planning approach at supranational level. Finally, it was mentioned thatconcrete project proposals and priority measures will be formulated according to clearlydefined selection criteria for their prioritization, and that project profiles will be confined toa standard format (short report, fact sheet, map) covering the major objectives, resultsand activities, their impact and risks and aspects of institutional and financial viability andsustainability.

Mr. Vladimir Krever, WWF Russia, Mr. Ahmet Birsel, WWF Turkey and Mr. NugzarZazanashvili, WWF Caucasus, gave detailed characteristics of the ongoing and plannedactivities of WWF organizations in the Russian part of the Caucasus, Turkey and Georgia.

In the session’s final keynote presentation Mr. Nugzar Zazanashvili, WWF Caucasus,focused on the concept of a common vision for forest conservation and sustainable use inthe Caucasus eco-region. He explained in detail the main dimensions of a recentlycompleted multinational study on Initial Investment Portfolio for the Biodiversity of theCaucasus Eco-region. It was emphasized that it was with the support of the MacArthurFoundation that the first eco-regional planning project, during the implementation of whichthe WWF Priority Investment Portfolio had been created, paved the way to further eco-regional planning activity with additional implementing possibilities of concrete projects inthe sphere of biodiversity conservation and sustainable use of the region, and that about150 scientists, experts, specialists of governmental organizations and NGOs from 4countries of the region were involved in the elaboration of the Initial Investment Portfoliofor the Biodiversity of the Caucasus Eco-Region. It was also mentioned that, according tothe above study, the following six focus areas were delineated: institutional strengtheningand capacity building, network of protected areas (Econet), endangered species andspecies of special concern, priority biomes (forests, high mountains and wetlands),sustainable resources use and public awareness and conservation education. The speaker

11

that include, but are not limited to, the definition of conservation targets (outcomes) andpriorities, broad input and consultation, ecosystem profile preparation, stakeholderconsultations, donor agency consultation, the determination of thematic opportunities anda niche for CEPF investment. Also, the speaker mentioned the timeframe for the preparationphase in the Caucasus (September 2002 - July/August 2003, to this end grant resourcewill be available for application). Information was also given about the technical reviewprocess of ecosystem profiles, parties involved in the technical review process (CEPFWorking Group Members representing each of the donor organizations, GEF NationalFocal Points, IUCN - Species Survival Commission and Birdlife International) and theamount of resources available for application (between $5 million - $9 million). It wasespecially outlined that resources allocated by the CEPF donor council will be availablefor application across the entire Caucasus region and that more specific geographic andthematic priorities will be determined through the preparation and profiling phase. Finally,the speaker once again pointed to the major objectives and targets of the CEPF - e.g. thatthe CEPF is: for civil society, NGOs and private sector; interested in stimulating partnershipsand alliances to achieve biodiversity conservation; designed as a complementary fundingmechanism; is rapid and flexible, protecting nature’s hot spots for people and prosperity.

Ms. Lina Panteleeva (Eurasia Foundation) pointed to the Eurasia Foundation’s SouthCaucasus Cooperation Programme and Priorities for 2003. Among the priorities mentionedwere institution building, benefiting of individuals, regional collaboration and globalintegration. It was outlined that the Eurasia Foundation was established in 1998 to providegrants to support innovative cross-border projects addressing issues of concern in theSouth Caucasus region, that the main target areas for funding are: private enterprisedevelopment, civil society and public policy, environmental issues and cultural projects. Information was also given on confidence building measures addressing regional concernsspecific to the South Caucasus (regional seismic projects, environmental issues, waterrights, etc.) and support for the adoption and implementation of internationally recognizedstandards. For a better understanding of the scope of work of the Foundation, the speakerprovided details on the South Caucasus Cooperation Programme and activities with anenvironmental focus, such as baseline environmental evaluation, cluster-meetings onenvironmental policy and water management, development of recommendations forapplying international standards and protection norms to trans-boundary reservoirs,environmental public advocacy, harmonization of water resources legislation in the SouthCaucasus, raising public awareness of environmental protection and the water rightsissues in trans-boundary regions etc.

Mr. Szabolcs Nagy (Birdlife International) addressed the activities of Birdlife Internationalthroughout the world and in the Caucasus in particular. The speaker especially noted theimportance of an eco-regional approach to be applied for forest conservation andsustainable use in the Caucasus, the fact that the activities and scope of work of BirdlifeInternational fully fit in with the above framework and that Birdlife International is totallyopen to future cooperation with interested parties, including donor organizations.

Aspects of funding and international coordination, within the framework of eco-regionalconservation and sustainable forest use, were further discussed in more detail by theconference participants.

14

principally pointed out that one of the main goals of the Initial Investment Portfolio for theBiodiversity of the Caucasus Eco-Region was the establishment of a biodiversity eco-regional coordination council. The lack of coordination among the countries in the Caucasuseco-region hampered biodiversity conservation efforts. Different approaches to speciesconservation on opposite sides of the border resulted in artificial migrations and speciesdecline. Intense logging or grazing near administrative boundaries threatened theecosystem’s granted protection just over the border. A network of protected areas for theentire eco-region (Econet) could only be successfully established by opening the avenuesof international cooperation and by reaching agreement on key issues involvingmanagement and development of the system. International donors and conservationorganizations investing in conservation measures in the eco-region wanted to be assuredthat their efforts would not be redundant or hindered by the lack of coordination amongthe different countries. An independent body with national and international authority shouldbe established to coordinate conservation efforts in the region, oversee the developmentand implementation of the Econet and ensure synchronized approaches to biodiversityconservation. This coordinating council should be made up of high-level decision makersfrom each country, regional and international NGOs, scientists and representatives of thepublic. To ensure that the countries are committed to carrying out the recommendations ofthe committee, this body should be voluntary. Once the coordinating council is created,conservation projects would receive greater attention from national governments.Coordination of conservation programmes in the region would help to avoid redundancyand increase the likelihood of success of eco-region projects.

Furthermore, the eco-regional conservation approach, as well as aspects of implementationand planning of eco-regional projects, were discussed in more detail by the conferenceparticipants. During the discussions participants’ feedback was recorded on flipchartsthat later were integrated into the conference conclusions and next steps. Key commentsfrom the floor were addressed to the issues of landscape planning, the increasingly widelyused notion of “High Conservation Value Forests”, the strengthening of upfront multi-stakeholder roles (including practitioners, not only scientists), the mainstreaming ofconservation planning into land management and economic development decision-making.It was underscored that the participants reached consensus agreement with the basicprinciples of eco-regional planning and recommendation to the WWF to customize thepresented eco-regional planning process to the requirements of the Caucasus. As a resultof this constructive discussion, the Alliance decided to contribute to further process bytargeted support to the development of regional toolkits for defining and mapping HighConservation Value Forests in Eastern Europe, including a case study for the Caucasuseco-region. The participants noted that future studies on the Caucasus eco-region shouldbuild more strongly upon the comprehensive work recently completed by others, such asUNEP’s Caucasus Environmental Outlook. It has to be mentioned that the WWF providedclarifications on how the KfW supported work in the South Caucasus would becomplemented and coordinated with similar activities in Russia’s North Caucasus and inTurkey. For example, following WWF’s success in mobilizing additional funds, the studyarea will be expanded to the entire Caucasus eco-region, now including the border areasto Turkey and the Russian Federation. This will mainly affect the biodiversity vision,following the provision of additional data by the WWF offices in both countries. Within theKfW funded part, socio-economic analyses and regional planning will, however, berestricted to the three South-Caucasian countries.

It was understood that WWF’s concept of an eco-regional approach is crucial for buildingup a comprehensive and problem-solving mechanism for eco-regional activities.

10

Finally, he explained the scope and main directions of a KfW supported new study for theSouth Caucasus. It was noted that the study is part of the “Caucasus Initiative”, launchedby the German Ministry of Co-operation and Development (BMZ), concentrating on, amongother sectors (legal reform, energy, small and medium enterprises, health, local democracy),the development of a joint strategy for nature and biodiversity conservation in the uniqueCaucasus eco-region as one potential field of cooperation between Georgia, Armeniaand Azerbaijan. The study is funded by the German Bank for Reconstruction andDevelopment (KfW) and has a total duration of 9 months, starting in mid August 2002 withan anticipated end date in mid May 2003. Also, it was mentioned that the study will providean appraisal of possible projects to be financed through German financial cooperation,that the investment criteria of KfW will be considered to select a few projects in closecooperation with KfW, that it is expected to identify projects in the field of protected areamanagement, including investment components - e.g. upgrading of infrastructure andinstitution building, and that, as an initial step, the German government has reserved aninvestment budget in the order of 5 million Euro. The speaker especially pointed to thefact that the study is seen as a starting point for future activities of the “Caucasus Initiative”in the field of environmental protection, that it will elaborate a future planning documentfor the implementation of potential projects qualifying for funding by German financialcooperation and that, in addition, the study may also be used by other donors and thegovernments of the countries involved for the identification of future interventions.

Ms. Susan King (MacArthur Foundation) outlined the Foundation’s overall objectives,goals and activities. She specifically addressed the Foundation’s interest in conservationand sustainable development throughout the world. It was noted that the MacArthurFoundation has established a Conservation and Sustainable Development Area that isdedicated to conserving biodiversity, enhancing knowledge of how to use natural resourcessustainably over the long term, and promoting environmentally sustainable economic growthbenefiting those living in or near sensitive areas, and that the area’s exclusive focus is ondealing with the problems of endangered species. In the context of the above observation,the speaker highlighted the successful experience of eco-regional planning in cooperationwith the WWF, which has resulted in a multinational and multidisciplinary study on anInitial Investment Portfolio for the Biodiversity of the Caucasus Eco-region, and that it wasthe first eco-regional planning project, during which a WWF Priority Investment Portfoliohad been created. Ms. Susan King also presented her view on opportunities for thedevelopment of better coordination in the sphere of forest conservation and sustainableuse in the Caucasus region.

Ms. Donell Ocker (CEPF) presented detailed information on the Critical EcosystemPartnership Fund’s initiatives. She explained that CEPF is an alliance that was formed inAugust 2000 between the World Bank, GEF, CI, the Government of Japan and theMacArthur Foundation with a goal of investing over $150 million in biodiversity conservationstrategies in the hot spots over the next five years. Geographically, CEPF is focused onthe areas that fulfil the following criteria: eligible for funding, biodiversity hot spot; WorldBank borrowing member country, and a country that has ratified the Convention onBiological Diversity. The speaker listed 10 active grant regions of the CEPF and six newpreparation regions, including the Caucasus eco-region. It was outlined that the preparationphase in the Caucasus is being initiated and will be led by WWF. In this context, Ms.Donell Ocker particularly pointed out the steps of the preparation phase in the Caucasus,

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7. FINAL PLENARY DISCUSSION : A) ANALYSIS OF LINKS AND OVERLAPSBETWEEN CURRENT PROJECTS, PLANS AND PROPOSALS FROM WWF’SINVESTMENT PORTFOLIO / B) DEFINITION OF GAPS AND PRIORITY AREAS FORINVESTMENTS / C) IDENTIFICATION OF INTERESTS AND OPPORTUNITIES FORSUPPORTING PRIORITY INVESTMENT AREAS

The final plenary discussion was jointly chaired by Mr. Andrey Kushlin (World Bank) andMr. Duncan Pollard (WWF International).

As a starting point for final plenary discussion, the major challenges/issues of relevanceof eco-regional conservation and sustainable forest use in the region were finallysynthesized into the following three major aspects: a) Analysis of links and overlaps betweencurrent projects, plans and proposals from WWF’s Investment Portfolio; b) Definition ofgaps and priority areas for investment; c) Identification of interests and opportunities forsupporting priority investment areas.

Prior to the plenary discussion, the following representatives of the NGO and privatesector gave presentations related to their activities in the region with regard to naturalresources conservation and sustainable use: Ms. Nato Kirvalidze, REC Caucasus, Ms.Mzia Gvilava, GRID Tbilisi, Mr. Ramaz Gokhelashvili, Georgian Centre for Conservationof Wildlife and Mr. Faig Askerov, British Petroleum Caspian.

In general, the plenary discussions outlined the need for supporting the eco-regionalapproach as a main instrument for the planning and implementation of conservation andsustainable forest management projects in the Caucasus region. Discussions stressedthe fact that eco-regions highlight the most outstanding habitats and are designed toserve as a blueprint for biodiversity conservation on a global scale, and that the Caucasusis also among the top 25 biologically richest and most endangered hot spots in the worldas recognized by Conservation International (CI) and Critical Ecosystem Partnership Fund(CEPF).

For each of the major aspects of the plenary discussion and the related challenges/issues,there were a number of lessons learned identified by the participants of the conference.Consequently, the major issues at national and eco-regional level, the political, financialand technical dimensions of conservation planning, the gaps and priority areas forinvestments, as well as related recommendations for inclusion in the conferenceconclusions, were formulated.

It should emphasized that the idea of the development of coordination mechanisms forimplementation of eco-regional planning was supported by the conference participants.In particular, Mr. Andrey Ptichnikov (WWF) and Mr. Sergey Milenin (World Bank) sharedwith workshop participants their information on positive experiences in the establishmentand functioning of eco-regional coordination bodies in the Russian Far East and the LakeBaikal region. Conference participants discussed the idea of setting up a similarcoordinating mechanism for the Caucasus eco-region (e.g. Eco-regional CoordinationCouncil). There was consensus that such a body should be based on a broad stakeholderrepresentation and should include representatives of interested governmental agenciesfrom the five participating countries, key donors and contributing NGOs, representativesof practitioners and civil society. It was also understood that such a ‘council’ should besufficiently informal - at least at its initial stage - to allow flexibility and minimize bureaucratic

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Caucasus region. The speaker underlined the following key priorities for new World Bankprojects:

(1) Pilot models for social and financial sustainability in forest and protected areasmanagement that: implement community-based models for watershed management andprotection; resolve land and resource tenure uncertainties and problems; promote rurallivelihoods and energy security, and develop revenue generating/cost recoverymechanisms for the public sector; and (2) Develop regionally compatible standards/pilotsfor: forest and range management (including the integration of biodiversity conservationand watershed/landscape planning into management practices); auditing of compliancewith national standards (including monitoring/control of illegal logging), national systemsfor certification of SFM; protected areas management and monitoring, and landscapelinkages: protected area networks and corridors. The speaker also pointed to severalopportunities for regional collaboration with existing and potential partners in the Caucasushazard management, monitoring and mitigation (e.g. forest fires & pests); river basin /watershed management; trans-boundary forest and ecosystems management; governancein resource use and trade (e.g. monitoring of illegal timber trade); coastal and internationalwaters / wetlands; and tourism development.

Ms. Keti Chachibaia’s (UNDP) presentation was focused on UNDP’s ongoing activities inthe Caucasus region. She pointed to poverty reduction and economic growth, institutionalcapacity building and strengthening, environmental and GEF supported conservation effortsof UNDP. The speaker especially stressed the need for better coordination between thedonor organizations to insure avoidance of overlaps and parallel work in the sphere offorest conservation and sustainable use.

Mr. Peter Argo (USAID) highlighted programmes and projects supported by USAID in theregion. In the context of forest conservation and sustainable use, he particularly pointedto the community based rural energy focus of USAID that, in turn, serves also as anapplicable instrument to protected forests and forest ecosystems in the Caucasus region.

Mr. Uli Graebener (UNESCO) illustrated the framework of protection of the world culturaland natural heritage and the conservation of forest ecosystems in particular. The speakergave detailed information on UNESCO’s current role and activities in the Caucasus region.In the above context it was explained that UNESCO is promoting the establishment ofbiosphere reserves in the Caucasus with emphases on regional and trans-border biospherereserves, and that there is a great niche for cooperation between the countries, differentstakeholders and international donor organizations. Mr. Uli Graebener also underlinedthe importance of coordinated action in the region.

Mr. Hans Aeppli (KfW) reported on German government supported and environmentallyoriented financial programmes, which are implemented in the Caucasus region throughthe German Bank for Reconstruction and Development (KfW). It was outlined that KfW isfocused mainly on Armenia, Azerbaijan and Georgia, and that this limits the application ofa regional approach to the South Caucasus only. The speaker especially pointed to anongoing conservation project aimed at establishing the first European type national park,and also to planned community forestry development in Georgia. In the above context Mr.Hans Aeppli brought clear examples of successful cooperation and coordination with WWF.

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constraints and, at the same time, it should have a clearly defined format for participationand be open to other qualified participants, who might become interested at a later stage.It was agreed that WWF International would draft terms-of-reference for the CaucasusEco-regional Council for circulation to conference participants for comments.

In general, the plenary discussion also confirmed the importance and success of theconference in allowing communication and an exchange of views and experiencesamong conference participants.

It was agreed that Mr. Andrey Kushlin (World Bank) and Mr. Duncan Pollard (WWFInternational) would summarize and integrate the results of the plenary discussion, aswell as discussions held in previous sessions, into conference conclusions and next stepsfor future action to be presented during the final stage of the conference.

8. CONCLUSIONS AND NEXT STEPS

Based on the results of the final plenary discussion, Mr. Andrey Kushlin (World Bank) andMr. Duncan Pollard (WWF International) presented conclusions and next steps (Annex I)to be taken in future to achieve forest conservation and a sustainable use objective in theCaucasus eco-region.

The main conclusions and recommendations specifically included four main points: (1)Status of the region, (2) Eco-regional conservation process, (3) Investment portfolio and(4) Next steps. These main points were explained in detail by Mr. Andrey Kushlin and Mr.Duncan Pollard.

Particularly, it was noted that status of the region [1] addressed the following threats andissues characteristic of the Caucasus eco-region: illegal logging, the high level of demandfor firewood, erosion and poor water management, lack of resources and local capacity,community involvement, lack of protection, management and restoration, the need forintroduction and implementation of the concept of High Conservation Value Forest (HCVF),markets and marketing and the need for development of community forestry andgovernance issues. Special emphasis was given to the overall economic and transitionalproblems and the lack of resources and local capacity in the newly independent states ofthe Caucasus. Also, it was underlined that the Alliance decided to contribute to the furtherprocess by targeted support to the development of regional toolkits for defining and mappingHigh Conservation Value Forests in Eastern Europe, including a case study of the Caucasuseco-region.

Eco-regional conservation process [2] was broken down and presented as follows: (a)Political, financial and technical dimensions of conservation planning, (b) Eco-regionalconservation general issues and (c) Eco-regional conservation country issues. Finally,the main points of all the above sections were integrated into summary issues of the eco-regional conservation process. It was outlined that the development of coordinationmechanisms for the implementation of eco-regional planning is crucial for the whole processof eco-regional conservation. In this context, the creation of an Eco-regional CoordinationCouncil based on a broad stakeholder representation (including governmental agenciesfrom the five participating countries, key donors and contributing NGOs, representatives

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land-use patterns and threats were highlighted in the keynote presentations. It wasmentioned that rapidly rising poverty and deteriorating governance have put pressure onforests to meet subsistence needs, and that the collapse of the rural and agriculturalinfrastructure substantially threatened rural livelihoods. It was emphasized that marketoriented, environmentally friendly and community based projects could influence thesituation in rural areas. A number of these types of projects were illustrated.

It was outlined that countries of the region have a large rural population, a large numberof very poor rural people and very weak local governance, and that the poverty level inrural areas is lower than, or similar to, urban areas in Armenia, Georgia and Russia, buthigher in Azerbaijan. It was also mentioned that in countries with transitional economies,small and fragmented plots hamper efficient agricultural production and, consequently,rural development and that there are few economies of scale in marketing and inputacquisition, given the fact that land reform has been virtually completed with full privateownership on rural lands and transferability, that titling and registration are underway andthat land markets are beginning to emerge but are not yet active.

The issues raised in the above presentations were further taken up in a subsequentdiscussion.

5. SESSION III : INFORMATION ON DONOR PROJECTS: EXPERIENCES, RESULTS,LESSONS LEARNED AND PLANS

(DAY 1 - AFTERNOON SESSION)

Session III presented information on internationally supported ongoing and planned projectsin the region, experiences, results and lessons learned in the course of the implementationprocess. Session III was chaired by Mr. Duncan Pollard (WWF International) and later byMr. Andrey Kushlin (World Bank).

The keynote presentations were given in session III by Mr. Andrey Kushlin, World Bank,Ms. Keti Chachibaia, UNDP, Mr. Peter Argo, USAID, Mr. Uli Graebener, UNESCO, Mr.Hans Aeppli, KfW, Ms. Susan King, MacArthur Foundation, Ms. Donell Ocker, CEPF, Ms.Lina Panteleeva, Eurasia Foundation and Mr. Szabolcs Nagy, Birdlife International.

The speakers gave presentations on the ongoing and planned activities of the donororganizations relevant to forest conservation and sustainable management in the region.The speakers, inter alia, focused on the problem of overlapping and parallel work in theplanning and implementation process.

In particular: valuable information was presented by Mr. Andrey Kushlin (World Bank) onthe World Bank’s new forest policy and strategy. The three main pillars of the new strategywere explained:(1) Harnessing the potential of forests to reduce poverty; (2) Integrating forests intosustainable economic development; and (3) Protecting local and global forest values.Information was also presented on the natural resources management portfolio in the

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of practitioners and civil society) is considered to be of particular concern. It was mentionedagain that WWF International would draft terms-of-reference for the Caucasus Eco-regionalCouncil and circulate among conference participants for comments.

An investment portfolio [3] was designed based on the identification of gaps and priorityareas for investments revealed during the plenary sessions and discussions at theconference. The creation of a protected areas network and the development of trans-border cooperation, combating illegal logging, the promotion of sustainable firewoodmanagement systems and alternative energy sources, forest restoration, the developmentof tourism, building of stakeholder dialogue, planning and zoning for forest use, HCVFand community based model projects were identified, inter alia, as the most urgent andcomprehensive priority areas for investment.

Next steps (4), along with standard follow up logistics, include preparation and considerationby the conference participants (Annex III) of the draft ERC “Process Framework” - adjustedfor the Caucasus eco-region.

Finally, it was noted that the conclusions of the conference would reflect very well thevariety of challenges for conservation and sustainable forest use faced by the countriesof the region. Furthermore, it was also acknowledged that the various similarities betweenthe approaches elaborated by the conference underline the significance of the issuesdiscussed.

9. CLOSURE OF THE CONFERENCE

In concluding the meeting, the chairpersons Mr. Andrey Kushlin (on behalf of the WorldBank) and Mr. Duncan Pollard (on behalf of WWF International) thanked the conferenceparticipants for their most interesting presentations and active participation and also forthe comments and suggestions made in the discussions. They pointed to the success ofthe conference as a platform for future dialogue and cooperation created through it.

Finally, with kind permission of the conference participants, on their behalf and on behalfof the whole WWF community, Mr. Hartmut Jungius (WWF International) expressed thanksto the chairpersons and the host organization of the conference - WWF CaucasusProgramme Office.

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distinguished by an extraordinarily high level of biodiversity. However, the socio-economiccrisis in the countries of the region (Azerbaijan, Armenia, Georgia and the RussianFederation) has primarily affected forest ecosystems: the forest has become the mainenergy source for the rural population. Illegal forest cut and export, as well as poaching,have significantly increased in the forests, and the combined efforts of the region’s countriesmay solve these problems.

Also, it was mentioned that in some countries forest damage was aggravated by militaryconflicts.

In the keynote presentation of the representatives of the Turkish Ministry of Forests, thegeographic characteristics of the Turkish Caucasus ecological sub-region were outlined.It was illustrated that the Turkish Caucasus ecological sub-region covers the Northernpart of East Anatolia and the East Black Sea coast.

Also, the following major issues influencing the sustainability of natural resource use andthe conservation of biodiversity in Turkey were described: a weak capacity to implementthe overall strategy for environmental management; forest resource planning and utilizationsystems do not adequately incorporate environmental and biodiversity conservation issues;unsustainable resource management systems, a lack of intersectoral and sectoralcoordination and a lack of public awareness of the importance of Turkish biodiversity. Atthe same time, it was pointed out that Turkey is the only non-transition country in theregion.

The issues of the present conditions of forest ecosystems and related forestry practicesin the region were further addressed in the subsequent discussion. Different countryexperiences were highlighted, indicating similar problems concerning conservation andsustainable forest use, especially in the countries with transitional economies.

4. SESSION II : CROSS-CUTTING ISSUES IN THE CAUCASUS: RURALLIVELIHOODS, SOCIAL ASPECTS, LAND-USE PATTERNS AND THREATS

(DAY 1 - MORNING SESSION)

Session II of the conference focused on the cross-cutting issues in the Caucasus region,in particular on livelihoods, social aspects, land-use patterns and threats. It was chairedby Mr. Duncan Pollard (WWF International).

The keynote presentations were given in session II by the following NGO representativesfrom the region: Mr. Udo Hirsch, CUNA Georgia, Mr. Sedat Kalem, WWF Turkey, Mr.Alexander Krokhmal, WWF Russia and Mr. Manaf Suleimanov, Ecological Union,Azerbaijan.

In addition to the keynote presentations, the following speakers presented their views oncurrent developments in the transition process in the Armenian forestry sector: Mr. SergeyShashikyan and Mr. Araik Mejlumyan, both representatives of the Ministry of NatureProtection of Armenia.Diverse aspects of the cross-cutting issues concerning rural livelihoods, social aspects,

CONFERENCE CONCLUSIONS

Agenda (Topics):

1. Status of the Region2. Eco-regional Conservation Process3. Investment Portfolio4. Next Steps

1. Status of the Region: Threats and Issues

� Illegal Logging:� Lack of Governance and Low Level of Law Enforcement,

High Level of Forest� Degradation of Biodiversity, High Level of Poverty

� High Level of Demand for Firewood:� High level of Poverty, Lack of Alternative Energy

� Erosion and Poor Water Management

� Lack of Resources and Local Capacity:� Sustainability of Current Funding

� Community Involvement:� Poor Connections to Governments, Participation in

Projects

� Protection, Management, Restoration:� Reduction of Forest Functionality� Increase of Deforestation

� High Conservation Value Forest (HCVF):� Need for Planning/Zoning Tool and Management Tool

� Markets and Marketing:� Firewood/Energy� Sources of Income (NTFP, Tourism)

� Community Forestry

� Governance Issues

Annex I

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1. OPENING OF THE CONFERENCE AND INTRODUCTORY SPEECHES

On behalf of the government of Georgia, H.E. Mrs. Nino Chkhobadze (Minister, Ministryof Environment and Natural Resources Protection) welcomed the conference participants.In her introductory speech, Mrs. Chkhobadze pointed out the importance of the conferencein addressing problems encountered in the transition process regarding conservationand the sustainable use of forests in the Caucasus region. The conference would be aforum in which to exchange experiences and to discuss how conservation and sustainableforest management could best be ensured in the region in the future.

The conference was addressed by Mr. Andrey Kushlin, Senior Forestry Specialist of theWorld Bank’s Europe and Central Asia Region, and Mr. Duncan Pollard, Head of EuropeanForestry Programme of WWF International. They emphasized the importance of an eco-regional approach for the protection of the Caucasus forest ecosystems in the light of theWorld Bank/WWF Alliance for Forest Conservation and Sustainable Use.

2. ADOPTION OF THE AGENDA

The proposed agenda (Annex II) was adopted.

3. SESSION I : PRESENT CONDITIONS OF FOREST ECOSYSTEMS ANDFORESTRY PRACTICE IN THE CAUCASUS

(DAY 1 - MORNING SESSION)

The present conditions of forest ecosystems and related forestry practices in the transitionprocess were addressed in a series of keynote presentations. The session was chairedby Mr. Duncan Pollard (WWF International).

The keynote presentations on the present conditions of forest ecosystems and relatedforestry practices in the Caucasus eco-region (Armenia, Azerbaijan, Georgia, Russia,Turkey) were given in session I of the conference by the following representatives ofgovernmental organizations: Mr. Artashes Ziroyan, Ministry of Nature Protection of Armenia,Mr. Ali Orudjov, Ministry of Ecology and Nature Resources of Azerbaijan, Mr. AvtandilGeladze, State Department of Forestry of Georgia, Ms. Maria Moskvina, Ministry of NaturalResources of Russia, Mr. Mehmet Demir and Ms. Mhunevver Demirbas, Ministry of Forestryof Turkey. Supplementary information on the present status of forests and related forestrypractices in the North Caucasus was presented by Mr. Andrey Ptichnikov, WWF Russia.

The keynote presentations outlined the ecological, economic and social dimensions ofthe present conditions of forest ecosystems and related forestry practices in the region. Itwas pointed out that the high level of environmental damage, unsuitable forest practicesand policies, social-economic conditions, the energy crisis, an increasing poverty leveland existing institutional capacities not relevant to the real needs of conservation andsustainable forest management constitute the most important challenges to be addressedin the future in transitional countries.Speakers outlined that forests are the main biomes of the Caucasus eco-region, which is

2. Eco-regional Conservation Process

a) Political, Financial and Technical Dimensions of Conservation Planning:

� Eco-regional Conservation (ERC):� Technical and Political Process

� Complexity of Funding for the Region as a Whole:� Georgia, Azerbaijan, Armenia, Turkey, Russia and, potentially, Iran

� Coordination of 5 Countries

b) Eco-Regional Conservation (ERC) General Issues:

� Technical Process:� Current Site-Scale Projects - Urgent Conservation Activities� Ecological Assessment vs. Biological Assessment� Eco-regional Planning vs. Land Use Planning� Cover all Critical Habitats

� Political Process:� Different Countries are at Different Levels� Context of ERC within Wider Economy and Integration with Cross Sectoral

Impacts� Involve Political Elements. International & Intergovernmental Relations� Pan-European Biodiversity and Landscape Diversity Strategy

� Who:� Not just Conservationists. Include Local Stakeholders.� Why WWF? Not just WWF. Wide Participation in the Process� Peer Review of Process

� Constraints:� Data Accuracy, Existing Information and Capacity to Update� Is this thing too big?

� Customize the Process in the Caucasus

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5

MINUTES OF THE CONFERENCE

BACKGROUNDThe Caucasus has been identified as one of the Earth’s 25 biologically richestand most endangered terrestrial eco-regions by Conservation International (CI),the World Bank and the GEF. In fact, the Caucasus, with its Colchic andHyrcanian regions, is the most important refuge and relict area of the arcto-tertiary forests in West-Eurasia. These are the only places on earth where warm-temperate deciduous forests have existed constantly since the Tertiary. About5 percent of these forests are still in a virgin state and the largest pristine forestecosystems within a huge geographical zone, which covers Europe and CentralAsia, can be found here. WWF has identified the Caucasus as a priority regionfor forest conservation as well. Forests cover more than 20 percent of the eco-region, making them the largest of any biome consisting of about 500 woodyspecies. Mountain forests make up the majority of the forest biome in the eco-region and play a critical role in preventing soil erosion and regulating waterflow.

WWF initiated regional activities in the Caucasus in 1995 and elaboration ofthe project on trans-border cooperation in the protected areas in EasternCaucasus has begun.

The first eco-region project has proved to be a success and has been carriedout with the support of the John D. and Katherine T. MacArthur Foundation(1999-2000): for the first time in the post soviet period, with the joint efforts ofexperts and responsible representatives of governmental and non-governmentalorganizations of the region’s countries (including those having acute interstatepolitical problems), it was possible for concrete projects to be plannedcooperatively, namely - urgent measures for the conservation of biodiversitywithin the eco-region. Finally, an integrated document - Investment Portfolio,aimed at carrying out urgent measures for conservation and sustainable use ofthe Caucasus biodiversity, was produced. The document received formalapproval from the relevant governmental organizations.

The World Bank has actively started work on nature conservation and sustainableuse in the Caucasus countries. The development of protected areas in EasternGeorgia, the establishment of the Kolkheti National Park in Western Georgia,Georgian forest sector, the sustainable use of nature resources in Armenia andthe establishment of the Shakh-Dag National Park in Azerbaijan are some ofthe projects which are being implemented by the World Bank, some of themjointly with GEF, or are due to be implemented in the Caucasus region.

At the same time, different donor organizations have combined their efforts innature conservation and the sustainable use of nature resources in the Caucasusregion, e.g. UNDP/GEF started implementing a trans-border project forconservation and sustainable use of arid ecosystems in Eastern Caucasus, aswell as a number of other important projects in the Caucasus countries; UNESCOsupported the Caucasus countries in defining World Heritage Sites; with theassistance of the German government, a large-scale project on the developmentof environmental education in Georgia has been carried out and the first NationalPark in the Caucasus - Borjomi-Kharagauli National Park - corresponding tointernational criteria was established. Social infrastructure rehabilitation projectsare ongoing in the park’s support zone and the creation of a community forestrymodel is being planned. The European Union and the Swiss Agency forDevelopment and Cooperation (SDC) support a number of relevant projectsand programmes and USAID supports the implementation of wetlandconservation activities.

Conference Report

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c) ERC: Country Issues

� Armenia:� Maps/Cadastre/Inventory� Training� Trans-boundary Forest PA’s� Inter-country Forest Governance Board� Alternative Energy Sources� Harmonize Legislation between Countries

� Azerbaijan:� Prioritize Work Common throughout the Region� Reforestation� Inventory� Poor Forests - Restoration� Forest Code� Private Sector� Alternative Energy

� Georgia:� Mainly Generic Issues� Human Resources - Qualified People� Lack of Forest Policy� Forest Management - Integrate with Biodiversity� Public Participation� Alternative Fuels

� Russia:� 9 Administrative Districts to be Involved� Partnership between NGOs and Government� Involvement of Local Populations� Governance via an Eco-regional Council - Experience from Far East of Russia� Well Developed System of PA’s provides base for work� Improve Regimes in Protection Forests� Private Sector, especially the Timber Sector� System of Control of Illegal Logging (experience from Far East of Russia)

� Turkey:� Ministry of Forestry of Turkey Ready to Co-operate in the Eco-regional

Process� Need Co-operation with NGO’s� Wish Inclusion of Turkey into the Process as Early as Possible� Need Involvement of, and Interaction between Governments/Ministries,

especially at High Levels� Education and Capacity Building in ERC� Participation of Local Population� Integrate with Current Long-Term Development Plans & Current Forest

Management Plans

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engaging stakeholders in decision-making processes - with the political challenges ofintegrating the conservation/ sustainable use agenda within a broader framework ofeconomic development and international relations. Finally, it was repeatedly stressedthat human resources constraints, conflicting legal/policy conditions, and a shortage ofoperational funds would, for the foreseeable future, retard conservation efforts.

Based on the results of the final plenary discussion, conclusions and future steps forachieving forest conservation and sustainable use objectives in the Caucasus eco-regionwere presented. The main conclusions and recommendations specifically included fourmain points: (1) Status of the region, (2) Eco-regional conservation process, (3) Investmentportfolio and (4) Next steps.

The key conclusions of the conference were integrated into an investment portfolio, whichin turn was designed based on the identification of gaps and priority areas for investmentsperformed during the plenary sessions and discussions. The most urgent andcomprehensive priority areas for investment were identified as follows: the creation of anetwork of protected areas and the development of trans-border cooperation, combatingillegal logging, the promotion of sustainable firewood management systems and alternativeenergy sources, forest restoration, the development of tourism , increasing stakeholderdialogue, planning and zoning for forest use and High Conservation Value Forest (HCVF)and community-based model projects. It was underlined that the Alliance decided tocontribute to the process further by targeted support for the development of regionaltoolkits for defining and mapping High Conservation Value Forests in Eastern Europe,including a case study for the Caucasus eco-region.

One of the main outcomes of the conference was the decision to form an “Eco-regionalCouncil” that would be charged with advancing discussions between conservationists inthe 5 countries and within their respective nations. The composition of this council, itsterms of reference and financing were not fully elaborated. However, it was broadly feltthat the commitment to form such a body represented an important first step in trying tointegrate the conservation agenda of the various nations into a more coherent eco-regionalframework. The World Bank, WWF, the German government, Conservation International/Critical Ecosystem Partnership Fund, and the MacArthur Foundation among others allexpressed their interest in continuing their active engagement in this important eco-region.

The conference was held in a very constructive and open atmosphere and concluded inindicating important priorities for future work. In this regard, a number of conclusions andfuture steps for action were formulated by conference participants at the end of theconference.

The report below provides a detailed description of conference sessions and includesMinutes of the Conference, Conference Conclusions, Conference Agenda and List ofParticipants.

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d) Summary of Issues on ERC Process

� Inventory and Baseline Data� Training in ERC� Harmonization of Legislation� Integrate with Existing Planning Processes� Participation of Local Populations/Public� Participation of NGO’s Crucial� “Governance” for the Process:

� Eco-regional Council for the Caucasus

3. Investment Portfolio: Gaps and Priority Areas for Investment

� Turkey� Protected Areas (Network and Trans-border)� Illegal Logging� Firewood and Alternative Energy� Forest Restoration:

� Existing Forests and New Forests� Markets and Marketing:

� Timber� NTFP� Wild and Plants� Tourism

� Building Stakeholder Dialogue� Planning and Zoning for Forest Use:

� HCVF� Community Based Projects / Models

4. Next Steps

� Mailing List - Conference Summary� Receive & process feedback� Draft TOR for “Eco-regional Council”� Publish Conference proceedings� Draft ERC “Process Framework” - adjusted for the Caucasus eco-region

(per comments received)

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Specific objectives of the conference were as follows:

(a) To inform the donor society of the actual condition of the Caucasus forests andmanagement practice in the eco-region;

(b) To outline the experience and results of current projects connected with forestconservation and sustainable use in the eco-region;

(c) To present WWF priority draft project proposals, especially on forest trans-borderconservation and sustainable use;

(d) To analyse the links and overlaps between current projects, plans and projectproposals from the WWF Priority Investment Portfolio (see attachment 1);

(e) To define gaps and priority areas for forest conservation and sustainable use in theCaucasus eco-region;

(f) To clarify the interests and opportunities of different donors for supporting identifiedpriority investment projects.

The conference was divided into 4 large themes: 1) Present conditions of forest ecosystemsand forestry practice in the Caucasus; 2) Cross-cutting issues in the Caucasus: rurallivelihoods, social aspects, land-use patterns and threats; 3) Donor projects: experiences,results, lessons learned and plans; 4) Eco-regional approach to forest conservation andsustainable use in the Caucasus. Final plenary discussions focused on 1) Analysis oflinks and overlaps between current projects, plans and proposals; 2) Definition of gapsand priority areas for investment; 3) Identification of interests and opportunities forsupporting priority investment areas.

The key topic under discussion was the eco-regional approach to forest conservation andsustainable use as a tool for priority setting and increasing coordination between countriesand organizations.

The special topics of the conference were: (a) Eco-regional conservation: approaches,methodology and examples; (b) Trans-boundary cooperation in the field of forestbiodiversity protection: practical examples; (c) Effectiveness of existing mechanisms forthe protection of the Caucasus forest ecosystems and related problems and perspectives.

The conference was designed to present data on forest condition; examine cross-cuttingissues, such as the relationship between rural livelihood practices and biodiversityconservation; share lessons learned from the implementation of various projects; and toadvance thinking about the concepts of eco-regional planning and trans-boundarycooperation. Building on the country reports presented by government delegates, thetwo days of plenary sessions and plenary discussion focused on the specifics issues ofthreats and the challenges of moving forward in eco-regional planning and implementation.

Key threats identified in the eco-region included the high demand for firewood, given thelack of alternative energy sources, and the impact that this has had on forest quality.While this has long been an issue in certain regions it has, over the past 10 years, becomemore widely pronounced. Illegal logging, primarily due to weak governance structuresand limited institutional capacity to manage resources, was also determined to be a criticallyimportant issue. Furthermore, the conference discussed the challenges of addressingthe technical aspects of conservation planning - accessing and analyzing data and

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Annex II

CONFERENCE AGENDA

HIGHLIGHTS OF THE CONFERENCE(EXECUTIVE SUMMARY)

Joint activities of the World Bank/WWF Alliance for Forest Conservationand Sustainable Use in the Caucasus region started in 1999. Since these initial Allianceefforts, Caucasian countries, international donors and non-governmental organizationsin the region have experienced significant changes regarding approaches to the forestsand forestry sector. During the course of the last 3-4 years, a number of forest related andinternationally supported projects have been initiated in the region. At the same time, ithas been understood that the Caucasus forests are one of the unique ecosystems of theEarth, rich with biological and landscape diversity, which constitutes a source of diversegenetic resources and is threatened by substantial manmade pressure, and that theyrequire protection on a multilateral coordinated basis.

In order to facilitate an exchange of information, experiences and major concerns relatedto the conservation and sustainable use of forests in the Caucasus eco-region, the WorldBank and WWF decided to convene an international conference as part of the WorldBank/WWF Alliance for Forest Conservation and Sustainable Use.

The Donor and Implementer Conference for Forest Conservation and Sustainable Use inthe Caucasus eco-region took place in Tbilisi, Georgia on 11-12 September 2002. It wasjointly organized by the World Bank, WWF International and the WWF CaucasusProgramme Office. The conference was attended by 66 participants, representing nationalinstitutions of Azerbaijan, Armenia, Georgia, Russia and Turkey, international and nationaldonor organizations, non-governmental organizations, the World Bank and the WWFCommunity.

Worthy of note is the fact that the conference brought together for the first time high levelofficials of the five Caucasian countries, along with ten major international donors andmore than 40 non-governmental and academic organizations, also representatives ofbusiness circles actively engaged in the region’s forest conservation and sustainable useefforts, even though there are major differences in the practices, current goals andstrategies, circumstances and priorities of the various institutions. This unique tensionbetween international, regional and local environmental, social, political and economicpeculiarities in the Caucasus region, together with common structural characteristics,was taken into account when addressing forest conservation and sustainable use issuesat the conference.

The main objectives of the conference were: (a) Exchange of information on the problemsand perspectives in the field of protection and sustainable use of the Caucasus forestecosystems; (b) Review of international donor and national experience in implementingforest related projects; (c) Elaboration of the joint approach regarding future steps forforest conservation and sustainable use in the Caucasus eco-region.

The goal of the conference was to define gaps and opportunities in the field of forestconservation and sustainable use in the Caucasus eco-region through the analysis ofcurrent projects implemented by various donors, as well as by the Caucasian governmentalorganizations, and to clarify priority areas for further investment.

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Annex IIILIST OF PARTICIPANTS

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The World Bank/WWF Alliance for Forest Conservation andSustainable Use is a strategic, performance-based, globalpartnership, formed in response to a crisis - the continueddepletion of the world’s forest biodiversity, the loss of forest-basedgoods and services essential for sustainable development, and theresulting severe impacts on the livelihoods of the rural poor.

To address this concern, the Alliance is working with governments,the private sector, and civil society to create 50 million hectares(124 million acres) of new protected areas of forest. It is alsohelping ensure that a similar amount of existing protected areascome under effective management by 2005.

In the same timeframe, the Alliance aims to have 200 millionhectares (495 million acres) of the world’s production forests underindependently certified management. These three “globalchallenge” targets on areas to be certified, protected, andeffectively managed are set as measurable milestones along theroad to sound stewardship of the world’s forest resources.

Through the Alliance, WWF and the World Bank are committed tofinding ways to achieve more collectively than either organizationcould accomplish independently. Formed in 1998, the Alliancedraws on the comparative institutional strengths of the partnerinstitutions:

� the Bank’s access to policy dialogue, convening power,analytical capacity and financing operations,

� WWF’s strong field presence, private sector partnerships,public trust and forest conservation expertise.

By combining the strengths of the Bank and WWF, and theirpartners, the Alliance is uniquely positioned to effect changes inforest policy and practices, to help safeguard biodiversity, andalleviate poverty. Both organizations realize that the Alliance willonly be as strong as the partnerships it forms with other non-governmental organizations, development institutions, the privatesector, and governments.

With forests being depleted globally at a rate of 28 hectares perminute, the stakes are high. Urgent, significant and coordinatedactions on a global scale are needed to arrest the precipitous andrelentless declines in forest cover, the concomitant loss ofbiodiversity, and the effects on the livelihoods of forest-dependentpeople.

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