Forests, when sustainably managed and protected, can play a key role in climate change mitigation, adaptation, maintenance of biodiversity, and economic development. By helping countries to properly manage forests, the IDB is helping the region to reduce emissions from deforestation and forest degradation; adapt to climate change; and protect biodiversity while promoting rural development along pathways that protect and sustainable manage forests.

An important challenge for Latin America and the Caribbean is to increase agriculture production to meet the growing demand for food, fiber, and energy without proportionally increasing greenhouse gas emissions or damaging other life supporting ecosystems services provided by forests. The Bank supports measures to reduce emissions from deforestation and forest degradation by reducing open access to natural forests; fostering sustainable rural development; promoting economic activities to foster forest protection and conservation and research, impact evaluations and capacity building to improve understanding of policies that seek to reduce emissions from deforestation.