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Economic Incentives for Forest Protection and Conservation in Latin America and the Caribbean

Agriculture landscapes provide various environmental services, including carbon and biodiversity. In these places, the main problem is that society wants farmers to undertake natural resource management practices that are both costly and with no immediate benefits to farmers.

The IDB promotes and helps design policies and governance frameworks that establish proper economic incentives for farmers to restore degraded forestlands and protect existing forests in Latin America and the Caribbean.

The Bank supports the development of carbon markets, which will bring major incentives to farmers and governments to develop these economic incentives for forest protection. Working across several sectors, the Bank’s projects on agriculture, land administration (land titling and cadastral systems linking property ownership to deforestation prevention and control) and payment for ecosystem services, and natural disaster management are combined to devise programs to reduce deforestation and forest degradation.

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