"Sustainable forest management is more than just growing and protecting trees – it is highly complex and can only be addressed through a range of actions that blend technical aspects of forestry with other considerations such as how to strengthen policy and governance frameworks to engaging market actors and mobilizing the necessary resources," said Warren Evans, World Bank Director for Environment.

"Sustainably managing this resource for the vital global public environmental services it delivers will also require the participation of all stakeholders, from international donors to communities whose livelihoods depend on the forests," he added.

Covering 26 percent of the earth's land surface, forests play a significant role in realizing the Millennium Development Goal of halving the number of people living in absolute poverty by 2015. They contribute to the livelihoods of more than 1.6 billion people and the forest industry provides employment for about 50 million people.

Forests are also home to 80 percent of the world's remaining terrestrial biodiversity and play a critical role in balancing the global climate through carbon sequestration and climate adaptation. Forests house global public goods, which, to be maintained must be both protected and managed sustainably.

"We need to tap into the wealth of expertise that exists within and outside the bank on how to structure forest activities so that they have a positive impact on poverty reduction, equitably distributed and sustainable economic growth, and preserving life on this planet," said Juergen Voegele, World Bank Director for Agriculture and Rural Development.