9.6.2 Policies aimed to promote afforestation and reforestation
Non-climate forest policies have a long history in successful creation of plantation forests on both public and private lands in developing and developed countries. If governments have strong regulatory and institutional capacities, they may successfully control land use on public lands, and state agencies can reforest these lands directly. In cases where such capacities are more limited, governments may enter into joint management agreements with communities, so that both parties share the costs and benefits of plantation establishment (Williams, 2002). Incentives for plantation establishment may take the form of afforestation grants, investment in transportation and roads, energy subsidies, tax exemptions for forestry investments, and tariffs against competing imports (Cossalter and Pye-Smith, 2003). In contrast to conservation of existing forests, the underlying financial incentives to establish plantations may be positive. However, the creation of virtually all significant plantation estates has relied upon government support, at least in the initial stages. This is due, in part, to the illiquidity of the investment, the high cost of capital establishment and long waiting period for financial return.