Montenegro Forest for Shared Prosperity

pipeline

The proposed project interventions will focus on improving the bioeconomy of Montenegro through the strengthening of economic viability of the forest industry and forest fire management including improvement of the enabling policy and institutional environment. On the one hand it aims at ensuring the sustainability of the supply chain of forest products through sustainable forest management to enhance economic benefits, ecosystem services and carbon sequestration. This includes integrating environmental, economic and social responsible principles and benchmarks into the supply chain management of the forest products. This entails the standardization and certification of forest products to ensure the quality of forest management and production, increasing transparency to curb illegal logging, intensifying forest fire protection, and modernizing forest management system. On the other hand, the proposed project focuses on improving the economic viability of the forest industry in Montenegro to enhance economic benefits and carbon conservation. This includes support to addressing market challenges and developing wood-processing industry. Lastly, the proposed project will also support regulatory developments and institutional capacity building to ensure responsible forest resource management, enhancing informed forest management decisions, improve value-added production, and ensure compliance with international sustainability standards while contributing to the country's economic growth and environmental protection. The proposed project’s design consists of four components: Component 1: Institutional Capacity Development and System Modernization; Component 2: Enhancing Climate Resilience and Information Services; Component 3: Strengthening Productivity and Sustainable Growth of the Forest Industry; and Component 4: Project Management, Monitoring and Communication. Component 1. Institutional Capacity Development and System Modernization. The objective of this component is to improve the enabling conditions for a stronger Montenegro forest industry and improved the supply chain of forest products to spur economic growth and shared prosperity. The component will facilitate the development of a favorable regulatory environment as well as removal of constraints for forest industry growth and management. The component will focus on the following core interventions: improving policy environment, institutional capacity development, system modernization, and supporting government’s reform of the forest governance including the effective implementation of the new Forest Law. Component 2. Enhancing Climate Resilience and Information Services. The objective of this component of the project is to enhance climate resilience of the forest resources through prevention of forest fires, ensuring the sustainable supply of raw materials to the forest industry, improving informed forest management decisions, and improving the measurement of carbon stocks. The component focuses on the quantification of forest resources and carbon stocks, fair and efficient timber allocation, reducing the risk of wildfires, and restoring degraded forest lands. Component 3. Strengthening Productivity and Sustainable Growth of the Forest Industry. The objective of this component will be to increase the economic contributions of the forest industry to the national development of Montenegro through expanding access to finance, correcting inefficient manufacturing practices, boosting product diversifications, increasing processing capacity, production of profitable high-value wood products, and creation of more high-paying jobs. Component 4. Project Management, Monitoring, and Communication. This component will finance the operating costs of the Project Implementation Unit (PIU) to carry out the oversight and management functions of the project. This includes activities such as procurement and contract management, financial management, environmental and social risk management, monitoring and evaluation (M&E), stakeholder engagement and communication as well as documentation of lessons learned from project implementation and stakeholders’ efforts to scale-up good practices.