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The Bank's forests portfolio covers a wide range of forest activities including investments in collaborative forest management and social forestry, forest institutions capacity building, protected areas, and technical assistance for policy reform and for regulatory and enforcement systems.

In addition to directly financing projects, the Bank is giving increasing attention to linking policy dialogue and its major country-level adjustment interventions to its specific forests involvement, and to resource mobilization from GEF, IFC, and other donor sources. This approach allows the Bank to pursue powerful reform proposals that eliminate unfair concession policies and perverse market incentives such as transport subsidies and underpriced timber, which can rarely be justified on the grounds of efficiency or equity. The Bank also enters into partnerships to complement its strengths and compensate for its weaknesses.

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