Forest Management

In regard to this topic, FUNDECOR is implementing improved forest management activities by using forest impact minimization techniques. Therefore, it is possible to implement farm planning processes both in the field and in mapping:

• Each of the trees to be cut and preserved as seed-producing trees
• Falling direction causing less impact on remaining mass
• Road mapping for log hauling.

As soon as the forest is harvested, roads and a drainage system are built in order to reduce soil erosion. All these activities are carefully supervised by FUNDECOR technicians, as well as officers from the Ministry of Environment and Energy in the area. Regarding forest management responsibilities, FUNDECOR develops and implements technological packages such as geographical positioning systems, geographical information systems, and maps developed on the basis of LANDSAT satellite images. At the present time 10.023,94 hectares of natural forests have been covered with this program.

Reforestation

To support productive forest management FUNDECOR is developing reforestation projects. Plantation establishment requires technical assistance to provide suitable reforested species growing methods. As of June 2000, FUNDECOR has signed agreements covering a total of 3.454,85 hectares.

Protection

This program allows forest owners to carry out natural resource protection and conservation activities by means of government agreements. These agreements provide Forest Act benefits regarding tax-exemption and squatter settlement prevention. Moreover, it allows to include the properties in the national system of Environmental Service Payment. For FUNDECOR these lands have strategic importance because they are located near National Parks. As of June 2000 a total of 24.275,27 hectares are under protection agreements.

Environmental Education

Since 1994, FUNDECOR has developed a subsidized Environmental Education program approved by the Costa Rican Public Education Ministry (Ministerio de Educación Pública, MEP) and the Environment and Energy Ministry (Ministerio de Ambiente y Energía, MINAE). The program is mainly aimed at keeping the student population aware of solutions Costa Rica has been implementing regarding sustainable natural resource management. During the period of 1995-200 a total of 94.200 students were mobilized, of which 50.214 participated in educational tours, and 43.986 visited the National Parks of Poás and Irazú Volcanoes.

Timber Auctioning

During the first operating year, FUNDECOR realized that forest owners were being forced to sell timber below actual prices. To avoid this situation, FUNDECOR provides farmers with more equitable agreements, and by means of an auction they can get better profits.

Advance Purchase of Wood

Forest activities generate profits in the medium and long run, yet forest owners need an annual income to invest in forest resources and make a living. Therefore, an alternative solution to cash flow problems must be developed. This alternative was identified and established for individuals who signed agreements with FUNDECOR as a complementary project for forest owners. This consists of prepaid timber purchases funded by loans provided by the World Bank's International Finance Corporation. Thus, forest plantation owners do not have to wait 15 years to final harvest and then receive financial gains. They can get the needed cash flow before the cutting period. FUNDECOR only buys 40 % of the total timber to be produced. Thus, the owner can, upon the cutting period completion, sell the remaining 60% at will. In order to develop the project, a trust was established at a private Costa Rican bank to perform financial transactions and secure annuity payment for forest owners. These procedures are coordinated by FUNDECOR.

Environmental Certification (Green Seal)

As of 1996 FUNDECOR has implemented a Green Seal certification program to allow forest owners to reforest and minimize forest exploitation impact. In turn, FUNDECOR is audited by the Société Générale de Surveillance (SGS), one of the certifying institutions that follow Principles and Guidelines set by the Forest Stewardship Council (FSC).

Environmental Service Payment

Our natural forests and forest plantations provide several services. Among them we have greenhouse gas emission mitigation, water source protection for human use and hydroelectrical energy generation, biodiversity protection for pharmaceutical and genetic improvement purposes, and landscaping protection for ecotourism purposes. Due to the importance of environmental services and in order to reward forest plantation and forest owners, the Government of Costa Rica, in 1996 by means of Act 7575 established a new reward system for forest owners. These funds improve forest owner income through a market forest policy that acknowledges nature values provided by forests to society. Based on this view, FUNDECOR provides support to receive environmental service payments from the National Fund for Forestry Financing (Fondo Nacional de Financiamiento Forestal, FONAFIFO).

Forest Owners: Clients of FUNDECOR

As of 2000 FUNDECOR has signed 450 contracts with small and medium-sized forest owners. These contracts involve the signing of an agreement by which FUNDECOR is made accountable before the owner for a series of activities such as land titling procedures (where necessary), the design and implementation of a sustainable forest management plan, forest management technical assistance, reforestation, and access to the national Environmental Service Payment System. Owners promise to follow the organization recommendations and to implement sustainable development activities. Sustainably managed farms under the contract with FUNDECOR are classified in small and medium-sized farms ranging from 1 to over 100 hectares.