Policy instrument
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Forest policy instruments encompass a wide range of tools and approaches used by various stakeholders at global, pan-European, European Union (EU), regional and national levels to achieve a desired effect or to address a particular forest-related problem. The policy tools in the forest sector can be classified into two major categories: forest and non-forest related instruments. Forest policy instruments are mainly used to promote sustainable forest management and/or directly address specific forest related problems (e.g. forest fire, forest biodiversity, illegal logging, etc). Non-forest policy instruments are tools that refer to other policy areas such as agriculture, environment, energy, climate change an energy, biodiversity, economy, trade, etc. and influence forest sector development indirectly.Governments may use a number of different types of forest and non-forest policy instruments. The most commonly used policy tools include regulatory, economic and informational instruments.
Regulatory instruments
Regulatory instruments are legal, enforceable, 'command and control' type of instruments aimed at reaching desired, prescribed forest and/or non-forest quality targets or performance standards in different policy areas. They can be legally binding or non-legally binding. Examples of legally binding instruments include: conventions, treaties, directives, laws, regulations, strategies, decrees, orders and administrative rules; court decisions and sanctions due to breaking of the law. Non- legally binding regulatory instruments refer to soft law: guidelines, recommendations, resolutions, declarations, statements, principles, action plans, etc.
Economic instruments
Economic (or financial) instruments encompass a range of policy tools, from taxes and marketable permits, incentives for investments and subsidies (all measures that reduce the costs of production or increase the prices of production or an action) to disincentives (measures that increase costs or decrease prices of production or an action). The common element of all economic instruments (forest and non-forest) is that they effect change or influence behaviour through their impact on market signals. In the pan-European forest sector, financial instruments are applied to achieve public goals by providing financial incentives or disincentives for the target group. Private forest holdings are subject to tax regimes and receive financial incentives, e.g. in the form of loans, grants, or compensation. In the case of state forest agencies, funding is distributed through budget allocation as per legislation (FOREST EUROPE, UNECE/FAO, 2011).[1]
Informational instruments
Informational instruments refer to the use of a variety of informational tools and approaches by the government to induce certain actions. Examples of the most frequently used forest informational instruments at pan-European level include research and development, education and training, monitoring and assessment mechanisms that provide information about the state of forests and the effectiveness and efficiency of sustainable forest management practices. Informational instruments are used to raise public awareness and establish a dialogue on forest-related issues and priorities. They also contribute to increasing the transparency of forest policy and to holding forest-policy makers accountable (FOREST EUROPE, UNECE/FAO, 2011).[1]
