New Delhi, December 3, 2024: The World Bank’s Board of Executive Directors has approved a $225.5 million project to support forest management and enhance forest value chains in over 400 villages across Tripura and Nagaland. The project, named the Enhancing Landscape and Ecosystem Management (ELEMENT) Project, aims to benefit more than 700,000 people, focusing on improving livelihoods and forest conservation efforts.
Forests in these states cover almost 1.5 million hectares and play a crucial role in the rural economy, particularly for tribal populations. However, over the past decade, reductions in forest cover have raised concerns about biodiversity loss and the well-being of forest-dependent communities.
The ELEMENT Project will help restore and conserve over 100,000 hectares of forest, while enhancing landscape-based value chains and reducing carbon emissions by approximately 435,000 tons per year. Additionally, the project will strengthen soil conservation and improve water availability in the region.
Auguste Tano Kouame, the World Bank’s Country Director for India, said, “The Project will contribute to leveraging forests for private sector-driven job creation in non-timber economic activities, enhancing the carbon sink capacity of the forest, and ultimately contributing to economic growth and social well-being in Tripura and Nagaland.”
The initiative also focuses on creating economic opportunities through forest-based products such as agarwood, bamboo, and honey, in collaboration with the private sector. Additionally, the project will enhance national parks and protected areas, while developing nature-based tourism facilities.
The project is expected to create 60,000 jobs for youth and women by promoting forest-based entrepreneurship, including training for hospitality and nature guides. “This goes beyond traditional forests to include areas like grasslands, wetlands, and farmlands to maximize community benefits,” said Pyush Dogra and Raj Ganguly, Task Team Leaders for the project. “This will improve climate resilience of rural and forest-dependent communities and increase their livelihoods.”
This financing follows a previous $43 million investment by the World Bank for similar initiatives in Meghalaya. The loan from the International Bank for Reconstruction and Development (IBRD) has a 12-year maturity with a 4.5-year grace period. The Project will also benefit from a complementary Global Partnership for Sustainable and Resilient Landscapes (PROGREEN) grant in the amount of $2.4 million.
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