World Bank Approves ELEMENT Project to Boost Forest Management and Livelihoods in Tripura and Nagaland

With forests spanning 1.5 million hectares, Tripura and Nagaland rely heavily on their forest resources for livelihoods, particularly among tribal populations.

The World Bank’s Board of Executive Directors has approved a $225.5 million initiative aimed at improving forest management and enhancing the value of forest landscapes across more than 400 villages in India’s northeastern states of Tripura and Nagaland. The project, titled Enhancing Landscape and Ecosystem Management (ELEMENT), will directly benefit over 700,000 people, many from tribal communities, and focuses on sustainable forest practices that balance ecological restoration with economic growth.

With forests spanning 1.5 million hectares, Tripura and Nagaland rely heavily on their forest resources for livelihoods, particularly among tribal populations. However, declining forest cover over the past decade has threatened biodiversity and forest-dependent economies.

The ELEMENT Project will support the conservation and restoration of over 100,000 hectares of forests, enhancing biodiversity, strengthening ecosystem services, and reducing carbon emissions by 435,000 tons annually. The initiative also prioritizes soil conservation and improved water availability, both critical for ecological and agricultural resilience in the region.

Promoting Livelihoods and Forest-Based Entrepreneurship

Economic empowerment is a central pillar of the project, which seeks to create 60,000 jobs for youth and women through private sector partnerships in non-timber forest products like agarwood, bamboo, and honey. By training communities in forest-based entrepreneurship, the initiative aims to boost local incomes and support industries such as nature-based tourism.

Key components include:

Skill development for forest-based industries, including hospitality training and certification of nature guides.

Development of sustainable value chains for forest produce, enhancing incomes while preserving natural resources.

Support for protected areas and national parks, expanding conservation efforts and boosting tourism infrastructure.

“The ELEMENT Project will harness forest resources for sustainable job creation, while increasing the carbon sink capacity of forests and supporting economic growth,” said Auguste Tano Kouame, World Bank Country Director for India.

Holistic Landscape Management

The project adopts a landscape-based approach that goes beyond traditional forest boundaries to include grasslands, wetlands, and farmlands, ensuring benefits for entire ecosystems and forest-dependent communities. According to project leaders Pyush Dogra and Raj Ganguly, this approach will enhance the climate resilience of rural populations while strengthening their livelihoods.

Expanding Forest Conservation in Northeast India

The ELEMENT Project builds on similar World Bank initiatives in the region, including a recent $43 million financing program in Meghalaya that promoted sustainable forestry and livelihoods. The Tripura and Nagaland program also benefits from a $2.4 million PROGREEN grant to support sustainable and resilient landscapes globally.

Project Financing and Timeline

The International Bank for Reconstruction and Development (IBRD) loan carries a maturity of 12 years with a grace period of 4.5 years. The ELEMENT Project is expected to serve as a model for balancing conservation and economic transformation, positioning Tripura and Nagaland as leaders in sustainable forest management.

Broader Impacts

By restoring forests, reducing emissions, and creating sustainable livelihoods, the ELEMENT Project contributes to India’s broader goals of achieving climate resilience, reducing poverty, and promoting sustainable development. This initiative reinforces the critical role of forests not only as carbon sinks but also as engines of economic opportunity and biodiversity conservation in some of India’s most ecologically rich and economically vulnerable regions.