Investment in sustainable forest management has the potential to create 10 million new 'green jobs.' This can help cushion the impact of the job losses the current downturn has seen. 'The dual challenges of economic turmoil and climate change are bringing the management of forests to the forefront of global interest,' observes the State Of The World's Forests 2009 report brought out by the United Nations Food and Agriculture Organisation on the occasion of the World Forest Week that ended on March 20.

A recent study by the International Labour Organisation has indicated that unemployment worldwide could increase from 179 million in 2007 to 198 million in 2009 under the best case scenario; and 230 million under the worst case scenario.

However, increased investment in forestry could provide jobs in areas such as forest management and agro-forestry, improved management of forest fires, development and management of tracking trails and recreation sites in forests, expansion of urban green spaces, restoration of degraded forests and planting new ones.

Such activities, moreover, could be tailored to local circumstances like the availability of labour, the skill levels among population and the social, economic and ecological conditions.

A statement issued by the FAO points out that several countries, including the US, have included forestry in their economic stimulus plans.

It has particularly referred to India where afforestation has been made an important component of the National Rural Employment Guarantee Programme.

The State Of The Forests report has, at the same time, also cautioned that, in the short-run, forests and forestry can be negatively impacted due to global economic crisis. Reduced demand for wood and wood products as a result of the collapse in the housing sector and the credit crunch are having a severe negative impact on investments in forest-based industries and forest management.

'A general concern is that some governments may dilute previously ambitious green goals or defer key policy decisions related to climate change mitigation and adaptation as they focus on reversing the economic downturn,' this report observes.

Initiatives for reducing emissions from deforestation and reversing forest degradation, especially those that are dependent on international financial transfers, could also face problems, it has added.

On the positive side, there are several opportunities stemming form the current crisis in the long-run. Increased use of forest products, including wood, in green building practices and emphasis on green development could spur investments in forests.

In the Asia-Pacific region, comprising some of the most densely populated countries in the world and where over half of the world's population lives, the demand for wood and wood products is expected to continue to swell in line with the growth of population and income.

Though this region is the leader in planted forests (due to large scale afforestation and reforestation), it will still continue to depend on wood from other regions, as land and water constraints limit the scope for self-sufficiency in wood and wood products, the report maintains.

In Europe, on the other hand, forest resources are expected to continue to expand in view of declining land dependence, increasing income, concern for protection of the environment and well-developed policy and institutional frameworks.