How should financial instruments be designed to promote the regenerative capacity of forests was the topic of a STAREBEI research grant which results were presented in October 2021 at the EIB by Eveline Waigand, from the University of Luxembourg.

In Luxembourg where both public and private forests are over mature and heavily damaged, the challenge is the fragmentation of ownership through privately owned micro plots.

The design of financial instruments should include local stakeholders and focus on land use contracts rather than land purchases as well as integrating local economic sectors in the value chain. They should comprise an environmental, social and economic/financial impact assessment, involve regional and international forest project networking as well as create spaces for interaction between local and international stakeholders

To design such a financial instrument, three questions need to be answered by further research: what is needed to promote alternative private  financing options in Luxembourg to enhance the forest’s regeneration capacity? What does the financial system need to successfully integrate cooperation and local stakeholder views into financing processes? And finally is there potential in forest financing to leverage the interplay between foreign and development policy, fiscal policy and environmental protection?

Click here for the presentation .

This STAREBEI research grant is the second with the University of Luxembourg.

 STAREBEI (STAges de REcherche BEI-EIB research internships) is a programme that provides grants to universities in order to finance junior researchers carrying out research projects proposed by the EIB Group (EIB and EIF) under the joint supervision of a university tutor and an EIB or EIF co-tutor.  To date, 65 young researchers from 41 universities in 14 European countries have benefited from the STAREBEI programme.