The Bank has been helping China address its problems of limited forest resources and growing deforestation - with its effects on soil erosion, desertification, floods, droughts, and loss of plant and wildlife habitats - through programs to enhance forest productivity, improve resource use efficiency and build institutional capacity for sustainable forestry management. With five projects totaling US$804 million in IDA credits and IBRD loans, one GEF grant of US$18 million, and one Institutional Development Fund Grant, the China forestry program is the largest in the Bank, and is also the largest forestry investment by any donor in any one country.
These projects have introduced new, modern planting technologies from other countries that have reduced plantation costs and increased yields; improved the environmental management of natural forests and plantations; disseminated the excellent research work of Chinese forestry institutes in the area of improved planting materials; and helped the government move towards more comprehensive and sustainable planning of forestry resources. Many of these projects are in the poor areas and have contributed to poverty reduction.