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World Bank Document Prepared Under the Aegis of the World Bank Group Forest Action Plan1 (FAP) FY16–20

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World Bank Document Prepared Under the Aegis of the World Bank Group Forest Action Plan1 (FAP) FY16–20 Public Disclosure Authorized UKRAINE COUNTRY FOREST NOTE: GROWING GREEN AND Public Disclosure Authorized SUSTAINABLE OPPORTUNITIES Public Disclosure Authorized Europe & Central Asia Sustainable Development Public Disclosure Authorized Environment, Natural Resources & Blue Economy June 2020 www.worldbank.org UKRAINE COUNTRY FOREST NOTE: GROWING GREEN AND SUSTAINABLE OPPORTUNITIES Europe & Central Asia Sustainable Development Environment, Natural Resources & Blue Economy June 2020 © 2020 The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved This work is a product of the staff of The World Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Attribution Please cite the work as follows: “World Bank. 2020. Ukraine Country Forest Note. © World Bank.” All queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@ worldbank.org. Ukraine Country Forest Note. Growing Green and Sustainable Opportunities III Contents Preface ....................................................................................................................................................... V Acknowledgements .................................................................................................................................... VI Abbreviations ............................................................................................................................................ VII Executive Summary ..................................................................................................................................... X Key Issues ....................................................................................................................................... X Recommendations ......................................................................................................................... XI Short-Term Priorities ...................................................................................................................... XI Long Term Actions ......................................................................................................................... XII I. Introduction .................................................................................................................................... 1 Country Context ............................................................................................................................... 1 II. Status of Ukraine’s Forests ................................................................................................................3 Forest Area and Ownership ...............................................................................................................3 Forest Management and Silviculture .................................................................................................6 Threats from Forest fires, Climate Change and Pests ......................................................................... 11 Illegal Logging .................................................................................................................................13 Afforestation and reforestation ....................................................................................................... 14 Restoration of degraded landscapes .................................................................................................15 Summary ........................................................................................................................................17 III. Social and Economic Contribution of Ukraine’s Forests ..................................................................... 18 Employment opportunities in the sector .......................................................................................... 18 Value Addition and Exports .............................................................................................................20 The Effect of the Moratorium on Roundwood Exports ...................................................................... 22 Wood for energy ............................................................................................................................. 23 Timber Market Monitoring and Sales Mechanisms ........................................................................... 23 State Forestry Enterprises finances .................................................................................................. 24 Summary .......................................................................................................................................26 IV. Forest Institutions & Governance ....................................................................................................28 The Key Institutions ........................................................................................................................28 Forest Law and Policy ......................................................................................................................31 Forest Financing............................................................................................................................. 32 A Citizen’s Platform for Forests ........................................................................................................ 33 Forest Institutions: Need for a Review of Roles ................................................................................ 34 Summary ....................................................................................................................................... 35 V. Ukraine’s Forests: Growing Green and Sustainable Opportunities ..................................................... 37 Priority Actions: Short-Term ............................................................................................................38 Long Term Actions ..........................................................................................................................39 IV Ukraine Country Forest Note. Growing Green and Sustainable Opportunities References .................................................................................................................................................45 Annex 1: Types of Felling in Different Categories and Sub-Categories of Forests ...............................................51 Annex 2: Electronic Tracking of Timber in Ukraine – A brief Overview ............................................................. 53 Annex 3: Overview of the Role of Development Partners ............................................................................... 55 Table of Figures Figure 1: Trend in total forest area for Ukraine and selected comparator countries. ..........................................3 Figure 2: Distribution of forest cover by administrative region .........................................................................4 Figure 3: Total forest area by state entity responsibility ...................................................................................5 Figure 4: Total wood harvested by different types of felling 2005–2018 (‘000 m3) ............................................8 Figure 5: a) Clear sanitary cuttings and forest dieback and, b) Selective sanitary cuttings and outstanding area damaged (SFRA). ............................................... 9 Figure 6: Fire incidence data, SFRA, 2007-2018 .............................................................................................. 11 Figure 7: Forest dieback per cause, 2010-2018. ...............................................................................................12 Figure 8: National afforestation and reforestation (ha), 2010-2018, source SSSU .............................................15 Figure 9: Comparator countries GVA per hectare of forest: (Actual areas in 2010 and 2015; 2016 to 2018 areas are assumed to be unchanged from 2015. ..........................................................20 Figure 10: Percent of annual harvest volume classed as roundwood with the remainder being classed as fuelwood (UNECE/FAO TIMBER database, 1964–2017, as of July 2018). ‘Avg of others’ is the weighted average of the 6 other countries. ......................................................21 Figure 11: Total value of wood industry exports in Ukraine and peer countries (2014–2018) US$ million ............. 22 Figure 12: Export of timber products million US$ (updated SFSU) ................................................................... 23 Figure 13: Relations between net income and net profit per 1 hectare (profitability)
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