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FOREST CARBON PARTNERSHIP FACILITY
2015ANNUAL REPORT
ACRONYMS 5
FOREWORD 7
1. GENERAL INTRODUCTION 9
2. PROGRAM OBJECTIVES 11
3. EXECUTIVE SUMMARY 134. MAIN ACHIEVEMENTS AND RESULTS DURING THE PERIOD 15
4.1. Highlights 15 4.2. ProgressattheImpactLevel 20 4.3. ProgressattheOutcomeLevel 26 4.4. ProgressbyOutput 28
5. ISSUES AND CHALLENGES 45
5.1. Disbursements 45 5.2. Country-LevelM&EFrameworks andReadinessReporting 45 5.3. OperationalizingPrivateSector Commitments 45 5.4. LeveragingInvestmentFinance 45
6. MONITORING OF ASSUMPTIONS AND RISK 49
7. FY15 FINANCIAL REPORT OF THE FACILITY 53
7.1. FinancialOverviewoftheFacility 53 7.2. TheReadinessFund 53 7.3. TheCarbonFund 58 7.4. BudgetApprovalProcess 61
8. RESULTS MEASUREMENT REPORTING FRAMEWORK 63
C O N T E N T S
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FY15 ANNUAL REPORT
FOREST CARBON PARTNERSHIP FACILITY4 FOREST CARBON PARTNERSHIP FACILITY
THE FOREST CARBON PARTNERSHIP FACILITYDemonstrating activities that reduce emissions from deforestation and forest degradation
BioCF BioCarbonFundCF CarbonFundCFP CarbonFundParticipantsC&I CriteriaandIndicatorsCIB CongolaiseIndustrielleDesBoisCOP ConferenceoftheParties(totheUNFCCC)CSO CivilSocietyOrganizationDP DeliveryPartnerDRC DemocraticRepublicofCongoER EmissionReductionsERPA EmissionReductionsPaymentAgreementERPD EmissionReductionsProgramDocumentER-PIN EmissionReductionsProgramIdeaNoteESMF EnvironmentalandSocialManagement FrameworkFAO FoodandAgricultureOrganizationFCPF ForestCarbonPartnershipFacilityFGRM FeedbackandGrievanceResponseMechanismFIP ForestInvestmentProgramFMT FacilityManagementTeamFY FiscalYear(WorldBankfiscalyear, July1throughJune30)IDB Inter-AmericanDevelopmentBankIP IndigenousPeoplesISFL BioCarbonFundInitiativeforSustainable ForestLandscapesLaoPDR LaoPeople’sDemocraticRepublicLOI LetterofIntentM&E MonitoringandEvaluationMF MethodologicalFrameworkMRV Measurement,Reporting,andVerificationNGO Non-GovernmentalOrganizationPA ParticipantsAssemblyPMF PerformanceMeasurementFrameworkPC ParticipantsCommitteeREDD ReducingEmissionsfromDeforestationand ForestDegradationREDD+ REDD plus conservationofforestcarbonstocks, sustainablemanagementofforests,and enhancementofforestcarbonstocksRL ReferenceLevelR-PP ReadinessPreparationProposalSBSTA SubsidiaryBodyforScientificandTechnological Advice(underUNFCCC)SESA StrategicEnvironmentalandSocialAssessmentSIS SafeguardsInformationSystemSMART Specific,Measurable,Attainable,Relevantand(indicators) Time-bound(indicators)TAP TechnicalAdvisoryPanelUNDP UnitedNationsDevelopmentProgrammeUNFCCC UnitedNationsFrameworkConventionon ClimateChangeUN-REDD UnitedNationsCollaborativeProgrammeon ReducingEmissionsfromDeforestationand ForestDegradationinDevelopingCountriesVRD VoluntaryREDD+DatabaseWB WorldBank
Acronyms
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FY15 ANNUAL REPORT
FOREST CARBON PARTNERSHIP FACILITY6 FOREST CARBON PARTNERSHIP FACILITY
Overthepastyear,REDD+countriesexhibitedenormousmomentumindevelopingconceptsforlandscape-scaleprogramsthathavethepotentialforlong-termtransformationtowardsalow-carbonsocietyandeconomyintargetjurisdictions.TheFCPFCarbonFundpipelinegrewtoatotalofelevencountriesinFY15andtoeighteencountriesinearlyFY16.
Atthistimeoftheyear,alleyesareontheupcomingclimatenegotiationsinParis,andontheanalysisoftheaggregateeffectofnationaleffortstowardslowemissionsandclimateresilientdevelopmentasoutlinedincountriesIntendedNationallyDeterminedContributions(INDCs)thatweresubmittedtotheUNFCCCinadvanceoftheParisClimateConference(COP21).
InthecontextoftheFCPF,itwasencouragingtoseehowmanyofthecountriesthatpresentedtheirproposedlandscape-scaleprogramstoCarbonFundParticipantsinBrusselslastmonthanchoredtheirproposalsintothebroadercontextoftheirINDCs.Overall,countriesaremovingawayfrompresentingprogramorsector-basedproposals,andareinsteadthinking(andacting)alongthelinesofeconomy-widepolicyreformsandobjectivestorealizetheirgreengrowthdevelopmenttrajectories.
ItisexcitingtoseetheroletheFCPFhastosupportcountriesinturningtheirintendedcontributionstoglobalclimatemitigationtargetsintoreality.Assuch,wearealreadyfocusingoureyesonthepost-ParishorizonandpavingthewayforaproofofconceptforREDD+inapost-Parisworld.
WhiletheFCPF’spartnershipisenergizedattheprospectoftheimportantclimate,environmental,economic,andsocialbenefitsthatproposedlandscapeprogramscangenerate,wehavetobemindfuloftheherculeantaskthatcountriesstillfacetoturntheirlandscapeproposalsintoreality.
ThecornerstoneforsuccessonREDD+specifically,andlow-carbonlanduseingeneral,willbeownershipatthehighestpoliticallevel.Nationaldecision-makersinMinistriesofFinanceandPlanningneedtosharethevision
thatsectoralministriesresponsibleforruraldevelopment,forests,andagriculturehave.Infact,theyneedtoowntheaspirationtoplacepriorityontheconservationandsustainablemanagementofforests,onclimate-smartagriculture,andonmakingtransport,mining,andenergysectorsforest-friendly.Tomakelong-lastingpositivechangeacrossrurallandscapesandalongtheforestfrontier,holisticlanduseplansneedtobehighonthepoliticalagendaofforestcountrygovernments.
Toscaleupimpactatapacethatcountersglobalwarmingtrends,engagingtheprivatesectortospurinnovationandcapitalmobilizationisalsocritical.TheFCPF,inclosecoordinationwiththeWorldBank’sprivatesectorarm,theInternationalFinanceCooperation,isbeginningtoformalizepublic-privatepartnershipswithmultinationalcompanies,whothemselvesarelookingtoforest-prooftheircommoditysourcingpractices.Whileanincreasingnumberofcompaniesaredemonstratingglobalcommitmentsandpledges,therearestillmanychallengestoovercometomatchpublicandprivateinterestsandtoturnactionsintoeffectivepartnershipsthatdeliveronconservingforestsinthefaceofdifficultunderlyingmarket,policy,andgovernanceenvironments.
LookingbackatFY15,IfoundofinteresthowsomeofthecountriesintheFCFPpartnershiphavetakentoimplementingREDD+readiness.Intheuncertaintyofsignificantclimatefinanceavailableforforestcarboninthenearterm,theyhavefocusedbothondesigningreadinessactivitiesthatcontributetoadaptation,whichisanimperativeformanycountriesintherealityofachangingclimateandonleveragingfundsthroughsoundstrategiesandinvestmentplans.It’sexcitingtoseethesynergiesbetweenadaptationandmitigationbecomemoreapparentinourcollaborativeeffortsaroundforestsandREDD+.
“Inayearfromnow,wewillbeabletoseewhetherthemomentumleadinguptoPariscanbecatalyzedintotheactionneededtotransformrurallandscapes,conserveforests,makeadifferenceinclimatechangetrajectoriesand,mostimportantly,bringprosperitytotheruralpoor.”
EllysarBaroudyCoordinator,ForestCarbonPartnershipFacility
ItisexcitingtoseetheroletheFCPFhastosupportcountriesin
turningtheirintendedcontributionstoglobal
climatemitigationtargetsintoreality.
“In a year from now, we will be able to see whether the momentum leading up to Paris can be catalyzed into the action needed to transform rural landscapes, conserve forests, make a difference in climate change trajectories and, most importantly, to bring prosperity to the rural poor.“
Foreword
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FY15 ANNUAL REPORT
FOREST CARBON PARTNERSHIP FACILITY8 FOREST CARBON PARTNERSHIP FACILITY
InlinewiththeM&EFramework’sPerformanceMeasurementFramework(PMF),thisyear’sannualreportprovidesinformationonthemainachievementsrelatedtotheintermediateimpacts,outcomes(alignedwiththefourFCPFobjectives),andoutputs(short-termresults),whichtogetherprovideastrategicoverviewoftheFCPF(seeFigure1).Specific,Measurable,Attainable,RelevantandTime-bound(SMART)indicatorshavebeendevelopedatthelevelofimpact,outcome,andoutputtotracktheprogressoftheFCPF.Thetargetsforeachindicatorhavebeendesignedinawaythatensuresresultscanbeachievedwithinthelifespanofthe
Facility.Thisreportalsobuildsonthereportingstructureatthecountrylevel,whichbeganlastyear—movingawayfromreportingonactivitiesonlyandallowingforsystematic,country-specificassessmentofreadinessprogress. AstheFCPF’smainfocushasbeenonreadinessandonlayingthegroundforfutureREDD+activitiesandpilotingperformance-basedpaymentsystems,itissomewhatlimitedinitsabilitytoreportonlonger-termandimpact-levelindicatorsatthisstage.(ImpactassessmentswillbepartoftheindependentevaluationsasplannedintheM&EFramework.)
countries make up the FCPF REDD+ Country Participants.
The 2015 Fiscal Year (FY15) report follows the structure of the Forest Carbon Partnership Facility (FCPF) Program Level Monitoring and Evaluation (M&E) Framework, adopted by the Participants Committee (PC) at its 14th meeting in March 2013. The M&E Framework is designed to keep track of the Facility’s performance in a way that helps ensure lessons can be learned and adaptive management is possible at the Facility level.
GeneralIntroduction
Figure 1: Result chain of FCPF interventions
47
1
Sustainable or enhanced livelihoods of forest dependent
peopleReduced emissions from deforestation and forest degra-dation from FCPF,
especially CF-Pilots
Momentum for good governance of SFM,
respective policy reforms and multi-stakeholder
participation
Engagement for sustainable liveli-hoods of forest communities
Globally recognized REDD+ standards
Biodiversity conserved
Knowledge gained from FCPF used by international REDD
practitioners
ER- Programs agreed
ER standards and guidelines
ER-programs timely implemented
Increased CF funds including Private sector investment
REDD+ preparedness plan
Readiness Assessment Framework
Progress towards readiness
Knowledge products disseminated
Knowledge management + communication strategy
Strong FCPF and REDD+ visibility
Active South-South learning
Increased capacity of IP and local CSO
Models for sustainable livelihoods and biodiversity
Additional REDD+ investments
Reduced greenhouse
gases
ER Performance-based payment
systems effectively demonstrated
Efforts successfully undertaken by
countries with FCPF support to achieve
emission reductions and benefit from
REDD+
Boundaryof M&E framework
Global regime that provides incentives for
REDD+
ImpactIntermediateImpact
OutcomeOutputs
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FY15 ANNUAL REPORT
FOREST CARBON PARTNERSHIP FACILITY10 FOREST CARBON PARTNERSHIP FACILITY
The Forest Carbon Partnership Facility (FCPF) is a global partnership of governments, businesses, civil society, and Indigenous Peoples (IP), focused on reducing emissions from deforestation and forest degradation, forest carbon stock conservation, the sustainable management of forests, and the enhancement of forest carbon stocks in developing countries (activities commonly referred to as REDD+).
ProgramObjectives
As stated in its charter, the FCPF pursues four strategic objectives:
• ToassisteligibleREDD+Countriesintheireffortsto achieveEmissionReductions(ER)fromdeforestation and/orforestdegradationbyprovidingthemwith financialandtechnicalassistanceinbuildingtheir capacitytobenefitfrompossiblefuturesystemsof positiveincentivesforREDD+;
• Topilotaperformance-basedpaymentssystemfor ERgeneratedfromREDD+activities,withaviewto ensuingequitablesharingandpromotingfuture large-scalepositiveincentivesforREDD+;
• WithintheapproachtoREDD+,totestwaysto sustainorenhancelivelihoodsoflocalcommunities andtoconservebiodiversity;and
• Todisseminatebroadlytheknowledgegainedin thedevelopmentoftheFacilityandimplementation ofReadinessPlansandERPrograms.
TheFCPFhastwoseparatebutcomplementaryfundingmechanisms—theReadinessFundandtheCarbonFund(CF)—toachieveitsstrategicobjectives.Togetherthetwo
fundshaveraised$829million. The Readiness Fund supportsparticipatingcountriesinthedevelopmentofREDD+strategiesandpolicies,referencesemissionlevels(REL),measurement,reportingandverification(MRV)systems,andinstitutionalcapacitytomanageREDD+,includingenvironmentalandsocialsafeguards.TheReadinessFundbecameoperationalin2008andhasacapitaljustunder$373million. TheCarbon Fundbuildsontheprogressmadeinreadinessandisdesignedtopilotperformance-basedpaymentsforERfromREDD+programsinasmallnumberofFCPFcountries.TheCFbecameoperationalin2011andhasacapitalof$456million. TheFCPFhasgrownto47developingcountries(18inAfrica,18inLatinAmericaandtheCaribbean,and11intheAsia-PacificRegion)and17financialcontributors(comprisingdevelopedcountries,oneprivatesectorparticipant,andoneNon-GovernmentalOrganization(NGO)).Ithassixcategoriesofobservers,includingIPandCivilSocietyOrganizations(CSO).ThecoreoftheFCPF’sinclusivegovernancestructureisformedbytheParticipantsAssembly(PA)andtheParticipantsCommittee(PC).
was the total amount raised by FCPF’s two funding mechanisms
—the Readiness Fund and the Carbon Fund.
$829m2
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FY15 ANNUAL REPORT
FOREST CARBON PARTNERSHIP FACILITY12 FOREST CARBON PARTNERSHIP FACILITY
In its seventh year of operation, the Forest Carbon Partnership Facility (FCPF) made progress to shape an increasingly diverse portfolio of landscape-level, cross-sectoral, multi-institutional programs that bring public and private partners together around forest conservation, sustainable land use and high-quality emission reductions at scale, which underscore the FCPF’s emphasis on social inclusion in program design and implementation.
ExecutiveSummary
3InFY15,theadoptionoftheGeneralConditionsforEmissionReductionsPaymentAgreementsconcludedalong,butimportant,chapterofcollaborativeworktoputinplacethetechnicalandlegalunderpinningforfuturelarge-scaleforestcarbontransactions.ThisalsoreinforcedtheFCPF’sroleinsettinggloballyrecognizedstandardsforREDD+andpioneeringaframeworkforreducingdeforestationandforestdegradationthroughpilotingofresults-basedfinance. AttheeleventhmeetingoftheCarbonFundinOctober2014,thepipelinewasincreasedtoatotalof11ERProgramswiththeinclusionofGuatemalaandPeru,andtheprovisionalinclusionofIndonesia.Withaviewtoprovidingadequatetimeforthedevelopmentandimplementationofsound,high-qualityEmissionReductionsPrograms,thetermoftheCarbonFundwasextendedbyfiveyearsuntiltheendof2025.Theextensionwasaccompaniedwithpledgesforadditionalcontributionsandtheprospectforpipelineexpansionsubjecttohigh-qualityproposals.ThiscreatedmomentumamongstREDD+countries,whichcompetedtodevelopandpresentarecordnumberofninenewideasforlandscapeprogramsatthetwelfthmeetingoftheCarbonFundinApril2015. AscountriescontinuedtoadvancethedevelopmentoftheirERPrograms,optionstoaddressfinancinggapsinEmissionReductionsProgramsreceivedincreasingattentionanddiscussionwithinthepartnership.Countrieswillneedtoleverageadditionalupfrontinvestmentfinancetosecuresufficientresourcestodeliverprogramimplementationandgenerateresultsforwhichcarbonpaymentsareproposed.Countriesarealsolookingintofinancingoptionsthatgobeyondtraditionalbilateral,multilateralandpublicinvestmentfinance,andareexploringprivatesectorinvestments,nationalbudgets,aswellasinnovativefinancingoptionssuchasbonds,guarantees,andadvances,amongothers. Toachieveimpactatscale,countriesarefurtherstartingtoengageproactivelywiththeprivatesectortoidentifypartnershipopportunitiesforzero-deforestationsupplychainsaroundcommoditiessuchascocoa,coffee,cotton,
andtimber.TheFCPFisfacilitatingthisdialogueatboththelocalandgloballevels. Themomentumwithwhichcountrieshavebeendevelopinglandscapeprogramshaspositivelyimpactedreadinessprogress.Aslandscapeprogramsshapeup,readinessactivities,includingconsultationsandparticipatoryprocesses,becomemorerelevantandconcrete.ProgressundertheReadinessFundincludedarecordnumberof13ReadinessPreparationGrantssignedinFY15,bringingthetotalnumberofcountriesimplementingreadinessactivitiesto35.AnotherhighlightincludedtheendorsementoftheReadinessPackagefromtheDemocraticRepublicofCongobytheFCPFParticipantsCommitteeasthefirstcountrytoadvanceREDD+readinesstothisimportantmilestone. LookingaheadtoFY16,REDD+countrieswillfocusonfollowinginthefootstepsofDRCandcarryingoutself-assessmentsoftheirreadinessprogressandsubmissionofReadinessPackagesasaprerequisiteforsubsequentsubmissionoffull-fledgedERProgramsforselectionintotheportfoliooftheCarbonFund. Atthecountrylevel,REDD+CountrieswillaimtoimplementtheirnationalREDD+Strategies,whichproposeactionablemulti-sectorstrategyoptionstoaddressthedriversofdeforestationandtheunderlyingbarrierssuchasnaturalresourcerights,landtenure,andgovernance. Asubstantialnumberofmid-termreviews,ReadinessPackages,andERProgramdocumentsareexpectedtobedeliveredinthenextyear.Withthevolumeofanalysisaswellascountryandexpertreflectionfeedingintothis,theFCPFwillincreasinglyfocusonharvestinganddisseminatingknowledgethathasbeencollectivelygainedinthePartnershipatbothcountryandgloballevels. Meanwhile,anindependentsecondprogramevaluationwillbecarriedouttoreviewrelevance,effectiveness,impact,sustainability,efficiencyoftheFCPF.TheevaluationisexpectedtoprovideguidanceonhowtoimproveeffectivenessanddeliveryoftheFacilitybylearninglessonsfromREDD+implementationandtoimprovethestrategicalignmentwiththeprioritiesofREDD+.
countries in the Carbon Fund pipeline.
11
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FY15 ANNUAL REPORT
FOREST CARBON PARTNERSHIP FACILITY14 FOREST CARBON PARTNERSHIP FACILITY
IncreasingmaturityintheReadinessFundisfurtherreflectedinthegrowingnumberofcountriesthatreportedontheirmid-termprogress.InFY15,sixadditionalcountries(CostaRica,Ghana,Liberia,Mexico,RepublicofCongo,andVietnam)reachedthismilestonedemonstratingimportantachievementsininstitutional,technical,andsocialREDD+readinessandprovidedimportantlessonslearnedforotherREDD+countries. Overthelastyear,another13countriesenteredintoreadinessgrantagreements.Thisbringsthetotalnumberofcountriesimplementingreadinessactivitiesto35,significantlyhigherthanlastyear’stotalof22.Eightofthe13readinessgrantagreementsweresignedbycountriesthatwereonlyselectedintotheReadinessFundinFY14.Thisdemonstratessignificantlyfasterprogressbythenewcountries. ByendofFY15,$211millioninreadinessgrantfundinghadbeenallocated,andnearly$107millionhadbeenmadeavailablewithsignedgrants,leveragingatleast$186millioninnon-FCPFinvestmentsinreadiness(thisfigureisbasedoncountryreportingandmaynotbeexhaustive).TheReadinessFundalsoreceivednewdonorcontributionsof$27millionoverthepastyear.Thiswasmadeupof$23.8millionfromGermany,and$3.2millionfromFinland. TheCommonApproachwasfullyimplementedinFY15manifestingtheFCPF’scommitmenttosocialinclusion.Assuch,awarenessraisingandcapacitybuildingaroundsocialinclusionshiftedtocountry-levelactivitiesledbyeachDeliveryPartner.Thisincludedguidancetocountriesonapplicablepoliciesandproceduresonenvironmentalandsocialsafeguards,accesstoinformation,andfeedbackandgrievanceredressmechanisms. TheextensionofthetermoftheCarbonFundto2025createdalotofmomentumforpipelinedevelopment.InFY15,threeadditionalER-PINswerepresentedandGuatemalaandPeruwereselectedandIndonesiaprovisionallyselectedintothepipeline,whichconsequentlygrewtoatotalofelevencountries.Further,eightnewcountriespresentedtheirearlyideaswiththeaimtoreceivefeedbackfromCarbonFundParticipantstodevelopER-PINsforpresentationandpotentialselectioninFY16.
WiththeapprovaloftheGeneralConditionsforEmissionReductionsPaymentAgreements(ERPA)inNovember2014along,yetimportant,chapteronthedevelopmentofthetechnicalandlegalunderpinningoffutureERPAswasclosed.TheFCPFconsequentlyturneditsfullattentiontoextendingcountry-tailoredtechnicalsupporttocountriesastheydesignanddeveloptheirprogramideasandadvanceimportantanalyticalwork.SuchsupportincludedtechnicalassistancetorespondtothecriteriaandindicatorsoftheMethodologicalFramework,includingonreferencelevelsandMRVdesign.Respondingtothedemandfromcountriesonguidanceontechnicalaspectsofcarbonaccounting,theFCPFfurtherlaunchedaweb-baseddecisionsupporttoolonreferencelevelsandMRVdesign. Overthelastyear,emphasiswasalsoplacedontheearlyanalysisandonplanningforERProgram’simplementationcosts.Thiseffortisintendedtosupportcountrieswithstructuringtheirprogramsandtoaligndifferentstreamsofup-frontinvestmentfinanceandensurefinancialsoundnessofproposals.
MainAchievementsandResultsDuringthePeriod
44.1. Highlights
A new milestone in REDD+ readiness was reached when the Democratic Republic of Congo became the first country to present its readiness package in May 2015. While readiness is a relative concept and the readiness package a snapshot of progress made, reaching this important milestone brought the readiness process full circle for the first time since the Readiness Fund became operational in 2008.
Readiness Preparation Grants signed in FY15.
+13
1stR-Package endorsed
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FY15 ANNUAL REPORT
FOREST CARBON PARTNERSHIP FACILITY16 FOREST CARBON PARTNERSHIP FACILITY
Guatemala Buildingonexistinglegalandfinancialframeworksforforestgovernancedevelopedoverthepast15years,theemissionreductionsprograminGuatemalawillbeanational-levelinitiativewiththepowertoimpact15millionlives.TheprogramwillengageinsixareasofREDD+activity:incentivestoincreasecarbonstocks,sustainableforestmanagement,strengtheningprotectedareasco-management,agroforestrysystemsandforestplantations,governanceandlawenforcementonforestlands,aswellasdevelopmentofforestproductionsvaluechain.InadditionaltobenefittingfromstrongpoliticalcommitmentoftheGuatemalanGovernment,asupportiveinstitutionalsettingforlinkingREDD+activitiesinclosecollaborationwithkeygovernmentinstitutionshasbeencultivated.Theseframeworkconditionsenableconsultationwithandparticipationbylocalcommunities,andareexpectedtoresultinahighdegreeofinvolvementoftheselocalcommunitiesinforestmanagementintheprogram.TheprogramwillstronglybenefitfromthePro-Bosquelaw,recentlyapprovedbyCongress,whichensuresdomesticfinancetosupporttheactivitiesproposedintheEmissionReductionsProgramIdeaNote.InvestmentfinancewillalsobeobtainedfromtheForestInvestmentProgram(FIP).
Indonesia Indonesia’sREDD+programfocusesonEastKalimantan,anareathatcontains14.7millionhectaresofforest,including400,000hectaresofpeatlands.Theprovinceispromotingitsdevelopmentobjectivesthroughalow-emissionsdevelopmentinitiative,whichisimplementedthroughprovincialstrategiesandactionsplansthatbuildonthestrongleadershipintheregiononclimatechange.Theprogramisdesignedtoaddresstheover-exploitationofforestsfortimberproduction,illegallogging,forestencroachment,forestfiresandtheimpactsofinfrastructuredevelopmentthroughactionsthatincludeimprovementsinforestlicensingandsmall-scaleplantations,andthepromotionofcommunity-basedplanning.Keyinterventionsalsotargetactionsonagriculturallandtoreducepressureontheforestestatebyminimizingtheimpactofslash-and-burnagriculture,plantationdevelopment,andtheexpansionofmining.Withtheimplementationoftheprogram,Indonesiahopestocontributetothenationalgoalofreducingthecountry’semissionsby26percentthroughitsownefforts(and41percentwithinternationalsupport).
Large-scale Programs in the Carbon Fund Pipeline
REDD+countriescontinuetomakestridesindevelopinglarge-scaleREDD+programproposalsthathavethepotentialtotransformrurallandscapes.AsoftheendofFY15,theCarbonFundpipelineincludesprogramsinChile,CostaRica,DemocraticRepublicofCongo,Ghana,Guatemala,Indonesia,Mexico,Nepal,RepublicofCongo,Peru,andVietnam.Theseelevenprogramstakealandscape-levelapproachengagingactorsinagriculture,energy,transport,land,mining,andforestrytoachieveclimate-smartland-use,protectforests,restoredegradedland,andimprovelocallivelihoods.TheCarbonFundpipelineremainsunderdevelopmentinFY16.
Chile Chile’sprogramtoreduceemissionsfromdegradationintemperateforestsisacornerstoneforthecountry’snationalforestrystrategy.Thisprogram—whichspans16.5millionhectaresoverfiveregionsinChile—takesactiontoaddressthethreemaindriversofdeforestationanddegradation:illegallogging,forestfiresandreplacementofnativeforestsbyexoticplantations.TheGovernmentofChileiscommittedtothedevelopmentofthislarge-scaleprogramtoreducedeforestationandforestdegradationbyimprovingforestmanagementandfocusingoncross-sectoralissueswhichimpactareaswithmostforestcover.Thehigh-levelpoliticalsupportforChile’sprogramhelpsgeneratelessonslearnedforotheremissionreductionsprogramsunderdevelopment.
Costa Rica CostaRicaiscurrentlyconcludingitsREDD+readinessphaseandisdesigninganemissionreductionsprogram.Theprogramincludesawiderangeofpoliciesandmeasurestoconserveandenhancecarbonstocksbasedonmorethan20yearsofexperiencewithforestconservationandmanagement.AttheheartoftheprogramisCostaRica’ssuccessfulPaymentforEnvironmentalServicesProgramandanextensiveprotectedareasystemthatgraduallyincorporatesadditionalREDD+activities.Theprogramisdevelopedwiththeactiveparticipationofrelevantstakeholders.Itcomplieswithsocialandenvironmentalsafeguardsandwillbeimplementedatanationallevel.TheprogramalongwiththeNationalREDD+Strategywillpromotethecountry’scommitmenttocarbonneutralityandwillcontributetopovertyreductionbyexpandinganinclusiveforestryandagroforestry-baseddevelopmentmodel.
Democratic Republic of Congo TheMaïN'dombeemissionreductionsprogramisajurisdictionalprogramwhichservesasamodelforgreengrowthintheCongoBasinandsignificantclimateactionontheAfricancontinent.TheGovernmentofDRCiscommittedtothisinnovativelarge-scaleprogramintegratedinDRC’sNationalREDD+Strategyframework.AlignedwiththeinvestmentsofForestInvestmentProgram(FIP)andCongoBasinForestFund(CBFF),theMaïN'dombeEmissionReductionsProgramincludesabalancedcombinationofenablingactivities(strengtheninggovernance,capacitybuilding,locallevelland-useplanning,securingandmodernizinglandtenure,demography)andsectorialactivities(reducedimpactlogging,agroforestry,conservationconcessions)over12.3millionhectaresoflandinDRC.Theprogramrepresentsauniquepartnershiptosecurealong-termpublicandprivatecommitmenttoreducingdeforestationandfinancefordeliveringemissionreductions,povertyreductionandsustainabledevelopmentatscale.
Ghana Ghana’sCocoaForestREDD+ProgramisthefirstREDD+programintheworldtofocusonanecologicallandscapethatisdefinedbytheproductionofagloballyimportantagriculturalcommodity—cocoa—whichisresponsibleforsignificantemissionsinthelandscape.Theprogramseekstosignificantlyreduceemissionsdrivenbyexpansionofcocoaintoforestareas,coupledwithillegallogging.Bytacklingthesedrivers,Ghanaaimstosecurethefutureofitsforestsandsignificantlyimproveincomeandlivelihoodopportunitiesforfarmersandforestusersacrosstheprogramarea.Ghana’sForestryCommissionandCocoaBoardarecommittedtojointlypursuingaprogrammatic,landscapestrategytoreducedeforestationandforestdegradationintheCocoaForestMosaicLandscape,includingworkingwiththeprivatesector.
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FY15 ANNUAL REPORT
FOREST CARBON PARTNERSHIP FACILITY18 FOREST CARBON PARTNERSHIP FACILITY
Mexico Buildingonmorethan10yearsofexperienceinsustainableforestmanagement,Mexico’sprogramforaCommunity-BasedLandscapeApproachtoReduceGreenhouseGas(GHG)Emissionsaimsattransformingthemanagementofforestsattheterritoriallevel,andevengoesastepfurthertotakeanintegratedapproachatthelandscapelevel.UndertheFCPFCarbonFund,Mexicoisdevelopingacommunity-levelprogramspanningfivestatesandalmost18millionhectaresofland.WorkinginconjunctionwiththeForestInvestmentProgram(FIP),theprogramwillsupportruralcommunitiesinthedevelopmentoflow-carboninvestmentplansthataimtoreducecarbonemissionsfromdeforestationandforestdegradation.Theprogramwillscaleupthelessonslearnedfrompreviousexperienceandgivecontinuitytothemanagementofnaturalresourcesatthelandscapelevel.
Nepal Reachingapopulationofsevenmillionpeople,80percentofwhichareforestdependent,theemissionreductionsprograminNepal’sTeraiArcLandscapeispoisedtotransformthelandscapeandmanycommunitiesintheprogramarea.Themaindriversofdeforestationareunsustainableandillegalwoodharvesting,overgrazing,forestfires,landconservation(encroachment,resettlement).TheGovernmentofNepaliscommittedtothislandscape-levelprogram,whichisestimatedtogenerate14milliontonsofCO2emissionreductionsinfiveyears.ThisprogramwillprovidesubstantiallearningvalueforNepalandforotherREDD+programsglobally,asitistestingthecommunity-basedforestmanagementmodelasabuildingblockforscaledupREDD+programs.ThegovernmentisdedicatedtomakingthisREDD+initiativesuccessfulinreducingemissions,improvingforestgovernance,andenhancingthelivelihoodsofforestdependentcommunities.
Peru Peru´slargeemissionsreductionprogramtargetstwopoliticalregionswhichencompassmostofthedriversofdeforestationinthePeruvianAmazon.TheMinistriesoftheEnvironmentandAgriculture,Livestock,andIrrigation,regionalgovernments,andindigenousandprivatesectororganizationswillcollaborateonanintegratedlandscapeapproachaimedatimprovingenablingconditionsrelatedtoland-useandincreasingagriculturalandforestryproductivityandcompetitivenessthroughincreasedinstitutional,organizational,andproductivecapacitiesandaccesstomarkets.TheprogramformsanimportantpartofPeru´semergingstrategyforLEDandgreengrowthandpresentsmultiplesynergieswithmultilateraleffortsfocusingonthePeruvianAmazon.
Republic of Congo TheEmissionReductionsPrograminNorthernCongoproposedbytheRepublicofCongoisacollaborativepublic-privatepartnershipwithCIB-Olam,theleadingloggingconcessionaireinthecountry.Programactivityisbuiltaroundaddressingthedriversofdeforestationanddegradationbasedonsustainableforestmanagementintheloggingsectorandavoidingunplanneddeforestationfromshiftingslash-and-burnagricultureintheprogramarea.Theseinterventionshavesubstantialnon-carbonbenefitsthatsupportthenationalvisionforagreeneconomybuildingonsustainablemanagementofnaturalecosystems,participatorymanagementandthefightagainstpoverty.Theemissionreductionsprogramworkshand-in-handwiththeNationalREDD+Strategy.TheWorldBankisexploringopportunitiestoprovidetechnicalandfinancialsupporttothisprojectthroughtheProjetForêtetDiversificationEconomique(PFDE),whichwouldsupportagroforestryapproachesinthecocoaandbananasupplychains,aswellastools,trainingandplantationmonitoring.
Vietnam TheNorthCentralAgro-EcologicalRegionisalandscapethatiseconomically,environmentallyandsociallysignificant.ThejurisdictionalprogramimpactingsixprovincesintheNorthernAnnamiteMountainsaimstomakesubstantialachievementsthroughcatalyticcarbonfinanceforsustainableforest-agriculture.Vietnam’semissionreductionsprogramworksacrosskeysectorsdrivingdeforestationandforestdegradation(agriculture;infrastructure;shiftingcultivation;unsustainableforestharvesting;illegallogging)whichcanserveasaparagonofgreengrowthforVietnamandthewiderAssociationofSoutheastAsianNations(ASEAN)region.TheGovernmentofVietnamiscommittedtotheseinterventionsworkingwithcivilsocietyanddevelopmentpartners.
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4.2. Progress at the Impact Level
Inthefollowingsection,progressisreportedbasedonindicatorsatimpact,outcomes,andoutputlevelinlinewiththePerformanceMeasurementFramework(PMF)aspertheFCPF’sMonitoringandEvaluation(M&E)FrameworkthatwasadoptedinMarch2013.SeveralindicatorsincludingthoserelatedtoemissionreductionsprogramimplementationundertheCarbonFund(CF),arenotyetapplicable.Accordingly,theyarenotreferredtointhenarrativebelow.PleaserefertoSection8(ResultsMeasurementReportingFramework)foratabularaggregationoftargetsandoutputs.
Impact-level Results 1.1: The FCPF has contributed to the design of a global regime under or outside UNFCCC that provides incentives for REDD+
Impact-level indicator 1.1.B: Examples of how FCPF learningandexperiencehasfedintoUNFCCCREDD+decisions
TheStandingCommitteeonFinance(SCF)oftheUnitedNationsFrameworkConventiononClimateChange(UNFCCC)madeacallforinputstotheWorkingPaperonCoherenceandCoordinationforFinancingtoForests.TheWorldBankmadeasubmissioninresponsetothecallonJanuary30,2015.ThesubmissiondrawsupontheWorldBank’sexperienceinextendingfinancetoitsclientcountriesandinimplementingprojectsandprogramsthataddresssocio-economic,environmental,andglobalgooddimensionsofforests.ThesubmissioncoveredaspectsrelatedtocommittingfinancetoREDD+readiness;augmentingresourcesforinvestment;financingresults-basedactions;andimprovingcoherenceandcoordinationindeliveryofadequateandpredictablefinancinginsupportofclimatechangemitigationandsustainableforestmanagementobjectives.
TheGreenClimateFundadoptedaPerformanceMeasurementFrameworkwhereperformancemeasurementforREDD+willbeinformedbytheFCPFMethodologicalFramework.ThishighlightsthelearningvaluetheFCPFcanofferfrominitialapplicationoftheFCPFMethodologicalFramework.
Impact-level Results 1.2: Reduced emissions from deforestation and forest degradation from FCPF, especially CF portfolio countries
Thisimpact-levelresultisnotyetapplicable.
Impact-level Results 1.3: FCPF has catalyzed the creation of recognized standards for REDD+
Inpreviousyears,theFCPFestablishedglobalstandardsforREDD+withtheadoptionoftheReadinessAssessmentFrameworkandtheadoptionoftheMethodologicalFrameworkfortheCarbonFund.TheReadinessAssessmentFrameworkguidesREDD+countriesonhowtomeasureandcommunicatetheirrelativeprogressonREDD+readiness,andbuildsonthefoundationandmulti-stakeholderplatformscreatedduringthereadinesspreparationphase.Itsupportscountriestomakethetransitionfromreadinesstoresults-basedpayments.TheMethodologicalFrameworkfortheCarbonFundprovidesaglobalstandardforREDD+transactionsatscaleandguidesthepilotingofresults-basedcarbonfinancetransactionsthroughtheFCPFCarbonFund.
InFY15,theadoptionoftheGeneralConditionsforEmissionReductionsPaymentAgreements(ERPA)wasanotherimportantcontributiontoglobalstandardsforREDD+.TheapprovaloftheGeneralConditionsatPC18inNovember2014followedacollaborativeandinclusiveprocessthattookmorethantwoyearsduetothemanycritical,complex,andsensitivetechnical,environmental,social,cultural,andlegalissuesinvolvedinlarge-scaleREDD+finance,andthelackofUNFCCCregulatoryguidanceonmanyissues.TheGeneralConditionsprovidethetechnicalandlegalunderpinningoflarge-scalecarbontransactionsthatwillresultfromfutureERPAsenteredintobetweenCarbonFundParticipantsandforestcountries.
Impact-levelindicator1.3.A:Examplesofnon-participantcountriesthathaveadoptedFCPFstandardsintheirownREDD+process
NoconcretecountryexampleshavebeenrecordedinFY15.AspertheFCPF’sM&Eframeworkitisalsonotexpectedthatnewexamplesandresultscanbereportedattheimpactlevelforeachfiscalyear. However,otherfundswhichprovideresults-basedfinance,suchastheWorldBank’sBioCarbonFundarecarefullyreviewingtheFCPF’sMethodologyFrameworktoinformtheirownemergingperformancemeasurementframeworksandmayadaptcertainstandardsoftheMethodologicalFramework.
Impact-levelindicator1.3.B:CommonApproachsuccessfullyimplemented
FY15representedaroll-outofimplementationoftheFCPFCommonApproach.Forthefirsttime,bothDeliveryPartners(DPs),theInter-AmericanDevelopmentBank(IDB)andtheUnitedNationsDevelopmentProgramme(UNDP),submittedfullreportsontheimplementationoftheCommonApproachforthosecountrieswithactiveFCPF-financedimplementationofreadinessactivities.ReportsfromtheIDBcoveredGuatemalaandPeru,andreportsfromtheUNDPcoveredHondurasandSuriname. Inaddition,theUNDPreportedontheprogressmadeinsettingupanaccountabilitymechanismforREDD+.Keyadvancesincluded:
• BetweenJune2011andJune2014,UNDPconsulted extensivelyontheproposedproceduresandinstitutional set-upfora)theSocialandEnvironmentalCompliance Reviewandb)theStakeholderResponseMechanism (SRM),reachingouttoover10,000peopleandreceiving morethan300contributionsfromcivilsociety,external
experts,andUNDPCountryOffices,RegionalService Centers,andallBureaus.
• StandardOperatingProceduresfortheSocialand EnvironmentalComplianceUnit(SECU)wereapproved bytheDirectorofUNDP’sOfficeofAuditand InvestigationsinDecember2014andSECUbecame effectivestartingJanuary1,2015.SECUisnowaccepting complaintsfromaffectedpeopleforallUNDP-supported projectsapprovedafterthatdate.
• InJune2014,UNDPapprovedSocialandEnvironmental StandardsandtheSRMtobeintegratedintoUNDP’s policiesandproceduresandeffectiveforallnewprojects startingJanuary1,2015.
InFY14,aseriesofFCPF-sponsoredregionalworkshopsaimedtobuildcapacityontheCommonApproachandonsocialinclusion.Consequently,inFY15,awarenessraisingandcapacitybuildingaroundtheCommonApproachshiftedtothecountry-levelactivitiesledbyeachDP.Thisincludedguidancetocountriesonapplicablepoliciesandproceduresonenvironmentalandsocialsafeguards,accesstoinformation,andfeedbackandgrievanceredressmechanisms. InFY15,thethreeactiveFCPFDPsfurtherproducedajointguidancenoteonEstablishingandStrengtheningGrievanceRedressMechanisms,whichhasbeenmadewidelyavailable. TrainingforoperationalstaffoftheDPsincludedasessionon“SafeguardsforREDD+”thatwasconductedforWBstaffinMarch2015.ThetrainingsessiontouchedonanumberofareasrelatingtotheCommonApproach,inparticularSESA/ESMFimplementation.InJune2015,acalibrationworkshopwasheldforIDBandFMTstaffonanumberofFCPFoperationalissues,includingCommonApproachimplementation. TheFCPFcontinuestolookforopportunitiestocollaboratewithotherREDD+initiatives,suchastheUnitedNationsCollaborativeProgrammeonReducingEmissionsfromDeforestationandForestDegradationinDevelopingCountries(UN-REDD)andtheClimate,Community&BiodiversityAlliance(CCBA),onsocialandenvironmentalsustainabilityissuesofmutualconcern,includingtheCommonApproachanditsprovisions.
Impact-level Results 1.4: FCPF has catalyzed investment in REDD+ (CF, and grants)
Impact-levelindicatorI.4.A:Amountofnon-FCPFinvestmentsunderR-PPprocessinParticipantcountriesandforimplementationofERPrograms(e.g.,FIP,bilateraldonors,privatesector)
ThecostofREDD+readinessoftenexceedsgrantfundingavailablefromtheFCPFReadinessFund.Countrieshavebeenincreasinglysuccessfulinleveragingadditionalexternalfundingtofinancethecostofreadinessactivities.Ascountriesdemonstrateinitialresultsinreadinessimplementation,stronggovernmentownershipinREDD+objectives,and
participatoryandinclusivestakeholderengagement,theygaindonorconfidenceandattractadditionalinvestmentsfrommainlybilateralandmultilateralsources.Reportednon-FCPFinvestmentsreceivedundertheR-PPprocessiscapturedinTable1belowandhasgrownsignificantlycomparedtolastyear’sfigures.FiguresinTable1belowarebasedonprogressreportingbycountriesandmaynotbeexhaustive.The23countriesthatreportedonnon-FCPFinvestmentsforreadinesstogetherleveragedcumulativefinanceof$186million,whichrepresentsa1:1.7ratiocomparedwiththetotalvolumeofFCPFreadinessgrants($107million)madeavailabletothesecountries.Itshouldbenotedthatincreasedcumulativenon-FCPFinvestmentsinFY15arenotonlyduetoincreasedleveraging,butalsoduetoimprovedreportingbycountriescomparedtoFY14. Overthepastyear,anincreasingnumberofcountrieshavebeenactivelyfocusingonthedesignoffutureERPrograms.SignificantupfrontinvestmentsareneededtoimplementERProgramsandarecriticaltoachievingresultsforwhichCarbonFundpaymentsareproposed.However,CarbonFundpaymentsaredownstreampaymentsthatarereceivedonlysubsequenttoverificationofachievedemissionreductions.Countriesarethereforeseekinginvestmentstocoversubstantialupfrontfinancingneedsthatarenotlimitedtotheforestrysector,butmoreimportantlycoveraspectrumofothersectorswhichimpactdeforestationandforestdegradation,suchasagriculture,infrastructure,mining,andothers.Table2belowprovidesexamplesofnon-FCPFinvestmentsreceivedforimplementationofproposedERPrograms.The14countriesthatreportedonnon-FCPFinvestmentsreceivedforimplementationofERProgramstogetherleveragedcumulativeinvestmentfinanceof$1.112million,oranaverageof$83millionpercountry.FiguresinTable2arenotexhaustiveandonlycapturereportedfunding. Combinedupfrontinvestmentfinancetypicallyexceedsthescaleofdownstreamclimatefinancethatcountriesforesee.Countriesarethereforealsolookingintofinancingoptionsthatgobeyondtraditionalbilateral,multilateralandpublicinvestmentfinance,andareexploringprivatesectorinvestments,aswellasinnovativefinancingoptionssuchasbonds,guarantees,advances,andothers.
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Table 1: Amount of non-FCPF investments received under the R-PP process for REDD+ (in $)*
REDD+ Country Source Amount Provided
Bhutan UN-REDDProgramme $345,000
BurkinaFaso FIP $30,000,000
FIPDGM $4,500,000
Cameroon GovernmentofCameroon(MINEPDED)
$169,348
Cambodia UN-REDDProgramme $4,001,050
GovernmentofJapan(JICA) $14,000,000
UN-REDDProgramme–FAO $650,312
UN-REDDProgramme–UNDP-TRAC
$126,326
UN-REDDProgramme–TargetSupport
$200,000
UN-REDDProgramme–UNEP $140,000
Colombia GovernmentofGermany(GIZ) $4,402,000
UN-REDDProgramme $4,000,000
BioREDD $518,000
GovernmentoftheUS(USAID/FCMC)
$149,000
GovernmentofGermany(BMU)/Winrock/ClimateFocus
$1,844,000
MooreFoundation $2,480,000
GEF(CorazonAmazonia) $2,180,000
GovernmentoftheUK $326,000
GovernmentofColombia $3,444,000
Others $6,131,000
Côted'Ivoire GovernmentofCôted’Ivoire $1,270,110
UN-REDDProgramme $3,210,000
GovernmentofFrance(AFD) $3,333,150
Chile GovernmentofSwitzerland(NAMAForest)
$1,800,000
IADB $190,000
EmpresaMineraBarrickZaldivar $137,500
CostaRica GovernmentofGermany(GIZ) $1,600,000
UN-REDDProgramme $760,000
GovernmentofNorway(NORAD)
$114,000
GovernmentoftheUS(USAID) $500,000
GovernmentofCostaRica $200,000
RepublicofCongo
UN-REDDProgramme $4,000,000
GovernmentofRepublicofCongo $600,000
COMIFAC(RegionalREDD+ProjectandRegionalProjectMRV)
$200,000
DemocraticRepublicofCongo
UNDP $3,110,690
FAO $2,926,450
UNEP $1,346,060
Ethiopia GovernmentofNorway $5,000,000
GovernmentoftheUK(DFID) $5,000,000
Fiji FijiMinistryforFisheriesandForests(MFF)
$42,563
GovernmentofGermany(GIZ) $13,572
Ghana GordonandBettyMooreFoundation
$170,063
GovernmentofSwitzerland—SwissStateSecretariatofEconomicAffairs(SECO)
$400,000
Guatemala GovernmentoftheUS(USAID) $200,000
USAID/CNCG $100,000
USAID/PRCC $50,000
IUCN $20,000
IADB $100,000
UNDP $30,000
Guyana GovernmentofNorway $3,110,690
GuianaShieldFacility $490,000
GovernmentofGermany(KfW) $627,000
GuyanaREDD+InvestmentFund $1,708,000
LaoPDR GovernmentofGermany(CliPADProjectthroughGIZandKfW)
$15,554,700
JapaneseGovernment(FIMProject,PAREDDProject,NFIS)
$9,000,000
Madagascar GovernmentofGermany(GIZ) $13,333
UN-REDDProgramme $297,000
FA/PE3/GVT $1,412,000
Mozambique UN-REDDProgramme $4,000,000
Nepal GovernmentoftheUS(USAID) $1,136,600
GovernmentoftheUK(DFID/SDC) $1,467,500
GovernmentofFinland $780,000
GovernmentofJapan $360,000
Nicaragua GovernmentofGermany(GIZ) $100,000
FAO $5,000
Peru GordonandBettyMooreFoundation
$2,010,000
GovernmentofGermany(KfW) $3,980,000
UNREDD $960,000
Tanzania GovernmentofNorway(CivilSocietyOrganizationprogram)
$17,000,000
Togo GovernmentofGermany(GIZ/ProREDD)
$1,367,000
WorldBank/PGICT $1,289,000
Uganda GovernmentofAustria $830,286
CIF/FIP(inpreparation) $250,000
UN-REDDProgramme(inpreparation)
$1,867,000
TOTAL $185,645,303
*Itshouldbenotedthatfiguresarebasedoncountryreportingandmaynotbeexhaustive.
Table 2: Amount of non-FCPF investments received for implementation of ER Programs (e.g., FIP, bilateral donors, private sector), if relevant (in $)*
REDD+ Country Source Amount Provided
Colombia BioREDD $14,070,000
Côted'Ivoire FIP $20,000,000
DemocraticRepublicofCongo
FIP $60,000,000
FIPDGM $6,000,000
GovernmentofNorway $2,500,000
CongoBasinForestFund(CBFF)
$25,000,000
InternationalTropicalTimberOrganization
$600,000
COMIFAC $305,000
UNEP $40,000
Ethiopia GovernmentofNorway(forOromiaREDD+readinessprogram)
$3,000,000
GovernmentofNorway(officialpledge)
$50,000,000
GovernmentofNorway(fornationalreadinessperformance)
$10,000,000
Ghana JapaneseFundedForestPreservationProgramme(FPP)TechnologyTransferandSupportfortrendanalysisofforestlandchange,Forestresourcemap,biomassandC-StockestimationandCapacitybuilding
$7,800,000
GovernmentofGermany(GIZ)ForestMonitoringbasedonGermanRemoteSensingTechnology
$555,525
FIP $55,330,000
GordonandBettyMooreFoundationforbiomassmap
$126,063
UN-REDDProgramme $40,000
IUCNGlobalGenderOffice $15,000
Guatemala IADB $500,000
FIP $24,250,000
Indonesia GovernmentofGermany(KfW) $29,371,000
GovernmentofGermany(GIZ) $22,348,000
FIP $105,000,000
FIPDGM $6,500,000
LaoPDR GovernmentofGermany(KfW) $12,770,000
GovernmentofGermany(GIZ) $5,683,000
FIP $30,000,000
FIPDGM $4,500,000
FIP(sub-projects) $61,900,000
Madagascar AFD $333,315
Mexico FIP $60,000,000
FIPDGM $6,000,000
UN-REDDProgramme $650,000
GovernmentofNorway $15,356,000
InternationalBankforReconstructionandDevelopment(IBRD)
$25,660,000
GovernmentofFrance(AFD) $2,418,000
Nicaragua GEF $1,494,320
FIP $50,000,000
Peru FIPDGM $5,500,000
IADBtoFIP $450,000
GEF $6,000,000
RoC GovernmentofGermany(GIZ/ProREDD)
$3,633,000
Togo GEF/WestAfricanEconomicandMonetaryUnion/UNDP/MinistryofEnvironmentandForestResources
$93,358
WorldBank/ProjectManagementIntegratedDisasterandLand
$1,561
TOTAL $1,112,238,748
*Itshouldbenotedthatfiguresarebasedoncountryreportingandmaynotbeexhaustive.
Acronyms:USUnitedStatesUKUnitedKingdom
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Impact-level Results 1.5: The FCPF has generated momentum to address governance and transparency issues and policy reforms related to sustainable forest resource management and REDD+
Impact-levelindicator1.5.B:Numberofpolicyreformsinitiated,completedorunderwaycomplyingwithREDD+standardsinParticipants’country,potentiallyincludeissuesoflandtenure
Policyreformmustbeconsideredaspartoflarger,dynamicnationalprocesses,towhichFCPFReadinessGrantscanmakeimportantcontributions,butwhichareentirelydrivenbyautonomousnationalgovernments.Inmanycountries,FCPFREDD+readinessfundingisessentialtopromotecapacitybuilding,analyticalwork,socialinclusionprocesses,andhighlytechnicalworkrelatedtoforestcarbonassessmentsandmonitoring.WhiletheseactivitiessupportandfeedpolicyreformprocessesinsupportofREDD+,initiationandcompletionofpolicyreformrequirescollectiveactionacrosssectorsandleadershipatnationalandsub-nationallevelsthatgobeyondtheleverageofFCPFreadinessgrantfunding.Assuch,thefollowingexamplesprovideasnapshotofimportantprogressmadeinFY15onpolicyreformthatguidesandinformsREDD+,butthatmustbeviewedinthecontextofbroadernationalprocesses. DRChasintegratedREDD+intothecountry’sEconomicGovernanceMatrixandprogressisregularlymonitoredunderthesupervisionoftheMinistryofFinance.Morespecifically,the
followingthreemeasuresdirectlyrelatetoREDD+:i)completionoftheconversionprocessoflegalforesttitlesandeffortstocombatillegallogging;ii)enhancedtransparencyintheforestsector;iii)implementationoftheREDD+process. Whilethelandtenurereformprocessbeganslowlyin2012,theinclusionofissuessuchasland-useplanninginthegovernancematrixhasprovidednewmomentumforthereformprocess.Asaresult,aMinistryofLand-usePlanningwasrecentlycreatedandthenationalcommissionhasbeendeployedtoprovincialandlocallevels.Adialoguehasstartedaroundthedevelopmentofanationalland-useplan. InColombia,forthefirsttime,achapterongreengrowthhasbeenincludedintheNationalDevelopmentPlanfortheperiodof2014-2018.Oneofthemainobjectivesistofocusonsustainableandlow-carbongrowth,withreductionofdeforestationstatedasoneofthepriorityactions.TheNationalDevelopmentPlanprovidesanimportantframeofactionforfurtherpolicyreformaroundREDD+. InMozambique,sectoralmandateswerealignedinJanuary2015withthecreationofanewMinistry(MinistryofLand,EnvironmentandRuralDevelopment,MITADER)responsibleforland,environment,ruraldevelopment,protectedareasandforests.ThisbroughttogetherpartlyoverlappingmandatesofthepreviousMinistryforCoordinationofEnvironmentalAffairs(MICOA)andtheMinistryofAgriculture(MINAG).ThecreationofthenewMinistryhasstreamlinedpolicyreformandcoordinationofactivitiesinthelandusesector,includingonREDD+activities.Aspartoftheinstitutional
reorganization,anewunitwascreatedthatisresponsibleformanagingexternallyfundedprojects,fundraising,anddonorcoordination.Withseveralnewandexistinglarge-scaleinvestmentoperationsactivearoundlanduse,forestry,andREDD+inMozambique,thenewinstitutionalstructurehasprovenefficient.Overthecourseofthelastyearitcontributedsignificantlytotheaccelerationoftheroll-outandimplementationofseverallandscapeinitiativesontheground,aswellasREDD+strategydevelopmentatthenationallevel. LegislativereforminEthiopiafurtherbroughttheenvironmentandforestunderasingleinstitutionalarrangementunderthenewMinistryofEnvironmentandForest,whichwasestablishedin2013.Thisinstitutionalreformhasmadeforestissues(conservation,managementandrestoration)muchmoreprominentinthenationalagenda.Therecently-electednewGovernmenthasreorganizedtheMinistryintotheMinistryofEnvironment,ForestryandClimateChangewiththeobjectivetoaligncoordinationaroundforestmanagement,climatechangeadaptation,andmitigationmatters. InGuatemala,CongressapprovedtheProbosqueProgram,throughLawNumber02-2015,whichwillhelpscaleupexistingforestincentiveprograms,bydevoting1percentofthenationalbudgettoincentivizetheestablishmentofanadditional40,000hectaresofnaturalforestprotection,reforestationandagroforesty.BeneficiariesoftheProbosqueProgramincludesmalllandowners,cooperatives,andindigenouscommunitieswithcommunaltenure.Theincentiveprogrampromotes
compensationforecosystemandenvironmentalservicesassociatedwiththemanagementandprotectionofforests. InMexico,theIntegralTerritorialManagementModel,withitsapproachtosustainableforestdevelopment,andREDD+havebeensuccessfullyincorporatedinthe2014-2018NationalForestryProgram(PRONAFOR),whichsetsforththeobjectives,strategiesandlinesofactionfortheperiodof2014-2018.Amongstothers,theNationalForestryProgramaimstoapplymultisectoralterritorialmanagementmodelsforruralcommunitieswithaviewtoenhancingland-usemethodsintheruralsector.Moreover,forestgovernancesystemswillbepromotedandsocialparticipationwillbestrengthenedtosupportplanning,consultationanddialoguebetweengovernmentandbroadersociety.Thelawincludesmeasurestoensurethatrurallandowners,ruralcommunitiesandIndigenousPeoplescancontributetoprogramimplementation. InPeru,anewEcosystemServicesLawwaspassedinJune2014.ThelawwasadoptedonWorldEnvironmentDayandprovidesalegalframeworktorecognizethemaintenanceofecosystemservices,includinggreenhousegasemissionsreductions,biodiversityconservation,andthepreservationofnaturalbeauty.Investmentsinwatershedservicesarealsoincorporated.Thelawandrelatedregulationswillcontributetothedevelopmentoflocal,regional,andnationalinitiativestorewardactionsthatensuretheprovisionofecosystemservices,includingREDD+,whichgenerateeconomic,socialandenvironmentalbenefits.
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4.3. Progress at the Outcome Level
Outcome-level Result 1: Efforts successfully undertaken by countries with FCPF support to achieve ER from deforestation and/or forest degradation, and to benefit from possible future systems of positive incentives for REDD+ (Readiness Fund)
Outcome-levelindicator1.A:NumberofReadinessPackagesendorsedbyPC(R-Packagesareinlinewithassessmentframework)
Target:2R-Packagesby2014,8R-Packagesby2015,20+R-Packagesby2018
InFY15,DRCwasthefirstcountrytohaveitsReadinessPackageendorsedbythePC.TheR-PackageprovidedasnapshotofDRC’sreadinessprogressrelativetothecountry’scircumstancesandrecognizedthatcapacitycontinuestobebuiltbeyondtheR-Packagemilestone.AnimportantvalueoftheR-Packagewastheparticipatoryandinclusivemulti-stakeholderself-assessmentconductedbythecountry.ThePCwaspleasedwithnewlegislationunderpreparationrelatedtoIndigenousPeoples’rights.DRCwasencouragedtocontinuetostrengtheninstitutionalarrangementstocoordinateandimplementREDD+activitiesandtomakeprogressonREDD+-relatedpolicyreformsincludingland-useplanningandlandtenure. WhilethesubmissionandendorsementofthefirstR-PackageatPC19inMay2015representedanimportantmilestonefortheFCPF,overallprogresstowardsreachingthisimportantreadinessmilestoneisslightlylaggingbehindearlieranticipatedtargets.ForPC20inNovember2015onlyoneadditionalR-Packageisexpectedtobesubmitted.However,anumberofadditionalR-PackagesareexpectedtobereadyforPC21inMay/June2016.TheparallelprogressonERProgramdesignhashelpedcountriesfocus,strengthen,andevenacceleratereadinessactivitiesasgapsininstitutionalandtechnicalarrangements,aswellaspolicyreformobjectives,becomemoreconcrete.
Outcome-level Result 2: Selected FCPF countries demonstrate key elements (carbon accounting, programmatic elements and pricing) of performance-based payment systems for ER generated from REDD+ activities with a view to ensuring equitable benefit sharing and promoting future large-scale positive incentives for REDD+ (Carbon Fund)
Thisoutcome-levelresultisnotyetapplicable.
Outcome-level Result 3: Engagement of all stakeholders (governments, CSO, IP, private sector, delivery partners) to sustain or enhance livelihoods of local communities and to conserve biodiversity within the approach to REDD+
Outcome-levelindicator3.A:DesignofnationalREDD+strategies,monitoringsystemsandERProgramsaddressesindicatorsforenhancementoflivelihoodsoflocalcommunitiesandforbiodiversityconservation
GhanacompleteditsNationalREDD+StrategyinJanuary2015.Thestrategywillbeimplementedinathree-phasedapproach,withtheinitialimplementationphasefocusingonAvoidedDeforestation,CarbonStockEnhancements,andbiodiversityconservation.Thestrategydoesnotyetincludeconcreteindicatorsrelatedtonon-carbonbenefits,butstatesthatGhanaisexpectedtohaveafunctionalMRVsysteminplaceanduseexistingmethodologies,suchasfromtheClimateCommunityandBiodiversity(CCB)standardsformonitoringbiodiversityimpact. ItisimportanttoemphasizethatinthecontextofGhana,effortsarealreadyunderwaytoimplementREDD+activitiesatthejurisdictionalandprojectlevelswhichmaybepremisedonVerifiedCarbonStandard(VCS)andCCBAstandards,butalsoanationalmonitoringandreportingregimeofgreenhousegases(GHGs)totheUNFCCCisalreadyon-going,undertheNationalGreenhouseGasInventory(NGHGI).Thus,asGhana’sREDD+implementationstructureevolves,itwillbeimportanttoconsiderMRVsystemsandmodalitiesforproject,jurisdictionalandnationallevels,includingpossibleoptionsforcombiningthesemodalitiesinaseamlessMRVimplementationsystem. EthiopiaissuedafirstdraftofitsNationalREDD+StrategyinNovember2014.TheStrategyenvisagesthatimplementationofREDD+isbasedonasetofprinciplesthatensuresclimatebenefitsalongwithco-benefits,suchasbiodiversityandlivelihoods,whilerespectingtherightsoflocalcommunitiesandforestdependentcommunities.ThestrategystatesthatEthiopiaplanstodevelopaMRVsystemthatwillhelptrackarangeofnon-carbonbenefits,suchasbiodiversityandsocialbenefits
Outcome-level Result 4: Knowledge gained in the development of the FCPF and implementation of Readiness Preparation Proposals (under the Readiness Fund) and Emission Reductions Programs (under the Carbon Fund) broadly shared, disseminated and used by international REDD+ practitioners
Outcome-levelIndicator4.A:Numberofnewcountries/stakeholdersrequestingtobecomeFCPFmembers/observers
InFY14,11newcountries(Belize,Bhutan,BurkinaFaso,Côted’Ivoire,DominicanRepublic,Fiji,Nigeria,Pakistan,RepublicofSudan,TogoandUruguay)wereselectedintotheFCPF.ThisfollowedadecisionbythePCtoreopenthepartnershiptonewcountries.InFY15,areopeningofthepartnershipwasnotunderconsiderationandnoadditionalcountriessubmittedexpressionsofinteresttobecomeFCPFmembersorobservers.
Outcome-levelindicator4.B:Examplesofutilizationof/orreferencetoFCPFknowledgeproducts
TheGuidetotheFCPFReadinessAssessmentFrameworkcontinuestobethemostutilizedknowledgeproducttoinformcountriesatdifferentstagesofreadinesspreparation.InFY15,
sixcountriesappliedtheAssessmentFrameworkastheytookstockofreadinessprogressatmid-termstage.SeveralnewcountriesusedtheAssessmentFrameworktostrategicallyplanandprioritizetheirreadinessactivities.Mostprominently,DRCbecamethefirstcountrytoadvancetopreparationoftheReadinessPackage,andtoapplytheAssessmentFrameworktodocumentthecountry’sself-assessmentofitsreadinessprogress. InFY15,theFCPFSecretariatcontinuedtoplaceitsemphasisonprovidingcustomizedsupporttocountriesthatwerepreparingearlyideas,ER-PINs,aswellasdraftER-PDsforpresentationtotheCarbonFund.SeveralcountriesreceivedtechnicalassistancetorespondtothecriteriaandindicatorsoftheMethodologicalFrameworkfortheCarbonFund.Respondingtothedemandfromcountriesonguidanceontechnicalaspectsofcarbonaccounting,theFCPFlaunchedaweb-baseddecisionsupporttoolonreferencelevelsandMRVdesign(seeBox1),whichissupportingcountrieswiththetechnicalpreparationofERPrograms. Awell-receivedknowledgeproductinFY15wasastudyonEarlyLessonsfromJurisdictionalREDD+andLowEmissionsDevelopmentProgramsthatwasjointlypublishedbyTheNatureConservancyandtheFCPF.ThestudyfeatureseightofthemostadvancedjurisdictionalREDD+/LowEmissionsDevelopmentprogramsworldwidedesignedtoreduceforest-relatedemissions.SixoftheseprogramshavealsobeenselectedintothepipelineoftheFCPFCarbonFund.Thereportprovidesinsightsintothedynamicsandrealitiesonthegroundexperiencedinthesejurisdictionsandservesasaresourceforpractitioners,forestcountrygovernments,donorsandothersworkingtoadvancejurisdictionalREDD+atlandscapescale.Thejointstudyfindsthatwithappropriateinvestmentandsupport,jurisdictionalREDD+programshavethepotentialtobecometransformationalmodelsofforest-friendlydevelopment.
BOX 1: WEB-BASED TOOL ON REFERENCE LEVELS AND MRV DESIGN
TheFCPFREDD+DecisionSupportToolboxisanewinternet-based,interactiveanddata-drivendecisionsupporttooltohelpcountriesbuildtheirREDD+programs.Userscanexploreoptionstodevelopaforestreferenceemissionlevelandaforestmonitoringsystem,bothofwhichareessentialtomeasure,reportandverifytheimpactofREDD+interventions.ThetoolboxisintendedtobeusedbyforestcountriesastheyconsiderkeydesignandtechnicalcomponentsoftheirnationalorsubnationalREDD+programs.ItprovidespracticalguidancebasedonexistingREDD+frameworksincludingtheUNFrameworkConventiononClimateChangeandtheFCPF’sCarbonFundMethodologicalFramework.
ComplementarytotheREDD+DecisionSupportToolbox,acomprehensivesetoftrainingmaterialwasproducedjointlywiththeGlobalObservationofForestandLandCoverDynamics(GOFC-GOLD)initiative.Thistrainingmaterialprovidesadditionalin-depthtechnicalguidanceandreferencematerial.Thematerialwasdevelopedwithanetworkofinternationaltechnicalexpertsandpeer-reviewersandbuildsonestablishedinternationalgoodpracticeguidanceonpertinentmethodsandtechnologyforforestmonitoring.Amodularstructureallowsthematerialtobeusedindifferentsettings(workshopsorhands-ontraining)andbetailoredtodifferentaudiences(REDD+policyorin-countrytechnicalexperts).Thematerialincludes14technicalmoduleswithpracticalcountryexamplesandtrainingexercises.
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FOREST CARBON PARTNERSHIP FACILITY28 FOREST CARBON PARTNERSHIP FACILITY
4.4. Progress by Output
Output 1.1: Readiness Assessment Framework is agreed upon and disseminated
Output-levelindicator1.1:ExistenceofpublishedassessmentframeworkonReadinessPackage
TheReadinessAssessmentFrameworkwasadoptedinFY13asperthetargetsetintheFCPFM&EFramework.Ithassincebeenawidelyusedtoolthatcountrieshaveappliedforaself-assessmentoftheirreadinessprogress.InFY15,sixcountries(CostaRica,Ghana,Liberia,Mexico,RepublicofCongo,andVietnam)appliedtheReadinessAssessmentFrameworkasatoolforstock-takingtoinformtheirmid-termreviewandfocusreadinessactivitiesgoingforward.Inaddition,DRCwasthefirstcountrytopresentaReadinessPackagebasedontheAssessmentFramework.
Output 1.2: Countries demonstrate an adequate plan to achieve preparedness for REDD+ funding
Output-levelIndicator1.2.a:NumberofR-PPsendorsedbyPCTarget:30+R-PPsby2015
SincetheendofFY14,theR-PPsofall45activeFCPFcountriesofthetotal47REDD+countries1havebeenendorsedbythePC.NoadditionalR-PPswereendorsedinFY15.Thecurrentstatusof45endorsedR-PPswellexceedsthePMF’stargetandamountstoatotalof$211million2ingrantresourcesallocatedforREDD+readinesspreparation.
Output-levelIndicator1.2.b:NumberofReadinessPreparationGrantagreementssigned
Target:30+signedgrantagreementsby2015
ContinuingthepositivetrendestablishedinFY14,alargenumberofcountriesprogressedtothenextmilestoneinthestepwiseapproachtoreadinessandsignedtheirReadinessPreparationGrants.InFY15,13additionalReadinessPreparationGrantsweresignedbyBhutan,BurkinaFaso,Colombia,Côted’Ivoire,Fiji,LaoPDR,Madagascar,Nigeria,Pakistan,PapuaNewGuinea(PNG),Sudan,Togo,andVanuatu.Asaresult,atotalof35countriesarenowimplementingreadinessactivities.ThisisabovethePMFtargetof30+grantssignedby2015.TheduediligenceprocessonthefinalR-PP(thestepthatprecedesgrantsignature)wascompletedforanotherthreecountries(Argentina,DominicanRepublic,andThailand)inFY15andtheyarethusexpectedtosignReadinessGrantsinearlyFY16. ThevolumeoffundsthathavebeenmadeavailabletocountriesinFY15insignedReadinessPreparationGrantsamountsto$49.4millioninFY15alone,oratotalof$133millionsincethebeginningoftheFund.3CountriesthatwereselectedintotheFCPFinFY14tooksignificantlylesstimefromR-PPapprovaltograntsignature.Asaresult,overone-thirdofallReadinessGrantsweresignedinFY15.
ThefocusoftheWorldBankandtheotherDPsremainsonprovidingtechnicalassistanceandguidancetocountriestoacceleratereadinessimplementationanddisbursementofreadinessfunds.
Output 1.3: Countries progress adequately on implementation of their R-PP and Grant Agreements
Output-levelIndicator1.3.a:Numberofmid-termprogressreportspresentedbycountriesthatfollowagreedreportingstandardsandarepresentedinatimelymanner
Comparedtopreviousyears,anincreasingnumberofcountriesreachedmid-termorreadinessimplementation.InFY15,sixcountries(CostaRica,Ghana,LaoPDR,Mexico,theRepublicofCongo,andVietnam)presentedtheirmid-termprogressreportsonnationalREDD+readiness,comparedtotwocountriesinFY14,4andjustoneinFY13.AllsixcountriesaswellasIndonesia5alsosubmittedrequestsforadditionalfundingandwereeachallocatedadditionalgrantsof$5million.Also,GhanaprogressedtosigningtheextensionoftheGrantAgreementinFY15,whiletheothercountriesareexpectedtosigngrantagreementsinFY16. Thesemid-termreportsprovidedawealthofinformationonprogressmadeandvaluablelessonslearnedforotherREDD+countries.Acommonpointofencouragementtocountrieswastocontinueeffortstostrengthenstakeholderengagementplatforms,bothatcentralanddecentralizedlevels,toensureparticipationofcivilsocietyandIndigenousPeoples,takingintoaccountaspectsofgenderandyouth.Countrieswerefurtherencouragedtocontinuecross-sectoralcollaborationanddialoguetosubstantiateintegrated,multi-sectorlandscapeapproachestonationalland-useplanningefforts.
Output-levelIndicator1.3.b:PercentageofcountriesthatareachievingplannedmilestonesaccordingtoapprovedReadinessPreparationgrant(>$3.4million)
Atthetimeofprint,reportsfromtheWorldBank(e.g.,GrantReportingandMonitoringreports)andfromotherDeliveryPartnerswere,inmostpart,notyetavailableastheyaregenerallyduebytheendOctoberofeachyear.Theanalysisforindicator1.3.b.wasthereforebasedoncountryprogressreports.
Output-levelIndicator1.3.c:Percentageofcountriesthatareoverallachievingplannedmilestonesforsubcomponentaspercountryannualreportingscale
AsperthePMF,thetargetby2015isfor50percentofcountriesimplementingR-PPstoshowperformance(atthesubcomponentlevel)advancingwith50percentofsubcomponentsratedas“furtherdevelopmentrequired.”By2018,thePMFstates,100percentofcountrieswouldbeexpectedtohaveprogressedto80percentofsubcomponentsratedat“progressingwell”orabove. ThePMFtargetfor2015hasbeenmet,asonly34percentreportedto“requirefurtherdevelopment”toachieveimplementationmilestones,while66percentofcountries
implementingR-PPsaremakingeithersignificant,goodoratleastmixedprogressagainstplannedmilestones.6Morespecifically,thestatusforFY15isasfollows.Ofall35countrieswithsignedgrantagreements,711countriesarereportingtohavemadesignificantprogressagainstplannedmilestones(Cameroon,Chile,CostaRica,DRC,Ethiopia,Ghana,Guatemala,Liberia,Nepal,Nicaragua,andtheRepublicofCongo).Sixcountriesareprogressingwell,butneedfurtherdevelopmentagainstsomeplannedmilestone(Cambodia,Côted’Ivoire,Honduras,Mozambique,PeruandVanuatu).Sixcountriesreportedthattheyneedfurtherdevelopmenttoreachplannedreadinessmilestones(ElSalvador,Guyana,Indonesia,Mexico,Uganda,andVietnam).Finally,12countriesareintheveryearlystagesofR-PPimplementation(i.e.,grantagreementshavebeeneffectiveforlessthanayearandcountriesaregenerallyintheprocessofstaffingimplementationstructures,operationalizingimplementationarrangements,andplanningreadinessactivities).These12countriesconsequentlyreportedtheneedforfurtherdevelopmenttoreachimplementationmilestones(Bhutan,BurkinaFaso,Colombia,Fiji,LaoPDR,Madagascar,Nigeria,Pakistan,PNG,Sudan,SurinameandTogo).Output-levelIndicator1.3.d:PercentageofcountrieswithadisbursementratethatisinlinewithagreedReadinessPreparationGrant(>$3.4million)disbursementplansofgrantagreement(upto10%variancewithplans)
Whiledisbursementrateshaveimprovedsignificantlyoverthelasttwoyears,theportfolio-leveltargetof“60percentofcountriesdisbursewithupto10percentvarianceoftheirdisbursementplans”isnotyetbeingmet.Currently,only26percentofcountrieswithReadinessPreparationGrantsaredisbursingwithin10percentvarianceoftheirplan,while28percentofcountriesaredisbursingwithin50percentofplan,and46percentareeitherdisbursingatlessthan50percentofplanorarenotyetdisbursing. OneofthereasonsfornotmeetingportfoliotargetsisduetothenumberofnewcountriesthatwereacceptedintotheFCPFandthatconsequentlysignedReadinessGrantsonlyveryrecently.Anotherreasonmaybethatcountriessetoverlyambitiousdisbursementtargets.Forexample,thecostsoflargecontracts(e.g.,fortechnicalstudies,SESAprocessandsafeguardsdocuments)typicallyarenotdisburseduntilfinaldeliverableshavebeensubmitted.Assuch,disbursements
tendstolagbehindactualimplementation,anddoesnotimmediatelyreflectimplementationprogress. Amoredetailedoverviewofdisbursementratesforthe35countriesthathadsignedgrantagreementsbytheendofFY15isprovidedasfollows(seeTable3).Fivecountriesaredisbursingbeyondtargets,theyare:Bhutan,DRC,Ghana,Honduras,andUganda.Fourcountriesaredisbursingwithin90percentofplan,theseare:Chile,Côted’Ivoire,Mexico,andMozambique.Tencountriesaredisbursingwithin50percentofplan:CostaRica,Cameroon,Ethiopia,Guatemala,Nepal,Nicaragua,RepublicofCongo,Togo,Vanuatu,andVietnam.Eightcountriesaredisbursingatlessthan50percentofplan:Cambodia,Guyana,Indonesia,LaoPDR,Liberia,PapuaNewGuinea,Peru,andSuriname.Eightcountriesarenotyetdisbursing,theyare:BurkinaFaso,Colombia,ElSalvador,Fiji,Madagascar,Nigeria,Pakistan,andSudan.WhileElSalvadorsigneditsgrantinmidFY14,theothersevencountriesonlysignedtheirgrantagreementsinthelastfivemonthsofFY15andwerethusfocusedongettingaccounts,financialmanagementsystems,andotherfiduciaryrequirementssetup. DisbursementratesacrosstheportfolioareexpectedtoincreaseinFY16,ascountrieswithrecentlysignedGrantAgreementsprogresswithprocurementandimplementation.Output 2.1: Standards and preparations in place for high-quality ER Programs discussed and endorsed by CF Participants and/or PC
Output-levelIndicator2.1:NumberandtypesofstandardsandmanagementtoolsdiscussedandendorsedbyCFparticipantsand/orPCforERprogramsincluding:
2.1.a:MethodologicalFrameworkandPricingApproach
Table 3: Disbursement rates of countries with Readiness Preparation Grants signed by end of FY15
More than plan (>100%)
Within 90% of plan
Within 50% of plan
Less than 50% of plan
Not yet disbursing
Bhutan Chile CostaRica Cambodia BurkinaFaso
DRC Côted'Ivoire Cameroon Guyana Colombia
Ghana Mexico Ethiopia Indonesia ElSalvador
Honduras Mozambique Guatemala LaoPDR Fiji
Uganda Nepal Liberia Madagascar
NicaraguaPapuaNewGuinea
Nigeria
RepublicofCongo
Peru Pakistan
Togo Suriname Sudan
Vanuatu
Vietnam
5 countries 4 countries 10 countries 8 countries 8 countries
1TwocountriesarecurrentlynotactiveintheFCPF:BoliviaandGabon.2Thisfigureincludesinitialreadinessfundingof$3.8millionaswellas
additionalfundingof$5millionforselectedcountries.3Thesefiguresdonotincludeadditionalfundingof$5million.4CostaRicaandGhanapresentedatPC17inearlyJuly2014inLima.Whilethey
werealreadyreportedoninthe2014AnnualReport,strictlyspeakingtheyfallintoFY15.
5Indonesiapresenteditsmid-termprogressreportinFY14,butonlyrequestedadditionalfundinginFY15.
6Theremaining6percentrepresentthetwocountriesthatdidnotsubmitprogressreportsforFY15.
7CountrieswhohavenotyetsignedgrantagreementsandarethusnotimplementingFCPF-financedreadinessactivitiesarenotrequiredtousethePMF’sreportingformat.
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MethodologicalFramework
TheMethodologicalFramework(MF)wasadoptedbyCarbonFundParticipantsattheeighthCarbonFundmeeting(CF8),inDecember2013,inParis.ItprovidesaglobalstandardforREDD+transactionsatscaleandguidesthepilotingofresults-basedcarbonfinancetransactionsthroughtheFCPFCarbonFund.
PricingApproach
DiscussionsonthePricingApproachfortheCarbonFundwereonholdinFY15.Previously,CarbonFundParticipantshadindicatedapreferenceforfixedpricingundercurrentconditionsandawillingnesstopayupto$5/tCO2e,whilerecognizingthattheultimatepriceissubjecttonegotiationsatthetimeofERPAnegotiations. REDD+Countrieshavenotyetprovidedsignalsontheirpriceexpectations,andfirstrequestedsupportoncostassessmentandfinancialanalysisofERProgramstobetterunderstandthecostassociatedwithERProgramimplementation.WhilecountriesunderstandthatREDD+isanincentivemechanismthathelpstoco-financetheimplementationofREDD+activitiesthatacountrymayputinplace,abetterunderstandingofERProgramimplementationcostsiscriticaltocountriesastheycanfactortheseintopricenegotiations. InFY15,theFMThasbeenworkingwithanumberofcountries,especiallythoseintheCarbonFundpipeline,toperformearlyanalysisandplanningforfinancingofCarbonFundERProgramsusingthecostassessmenttoolsdevelopedpreviously.Suchupstreamanalysishasallowedcountriesto
startstructuringERProgramsandtoalignvariousstreamsoffinance,includingtheresourcesprovidedthroughtheFCPFReadinessFund,otherinvestmentfinanceandresults-basedfinancethroughtheCarbonFund.
Output-levelIndicator2.1.c:Legaldocuments(GeneralConditions,ERPAtermsheet)
Target:ERPATermSheetbyPC14,GeneralConditionsforERPAbyPC16
TheERPATermSheetwasendorsedatthefourteenthParticipantCommitteemeeting(PC14)inMarch2013(FY13)meetingthePMFtarget. InFY15,anotherimportantmilestonewasreachedwiththeadoptionoftheGeneralConditionsforEmissionReductionsPaymentAgreements(ERPA)atPC18inNovember2014. Thismilestonewasreachedafteracollaborativeandinclusiveprocessthatlastedovertwo-and-a-halfyearsandincludedseveralinformalandformalsessionsandworkshops,outreachtocountries,andinformalexpertdiscussiongroups.Athoroughandinclusiveprocesswasfollowed,duetothemanycritical,complex,andsensitivetechnical,environment,social,cultural,andlegalissuesinvolvedinlarge-scaleREDD+finance,andthelackofUNFCCCregulatoryguidanceonmanyissues. TheapprovaloftheGeneralConditionsclosedalong,yetimportant,chapteronthedevelopmentofthetechnicalandlegalunderpinningoffutureERPAs.ThedelayofapprovaltoPC18,comparedtotheoriginalPMFtargetofPC16,wasduetofactthattheGeneralConditionshingeduponthefinalizationandapprovaloftheMethodologicalFrameworkfortheCarbonFund(seeBox2).
Output 2.2: Countries have entered in the portfolio of the CF
Output-levelIndicator2.2.a:NumberofearlyideasorERProgramspresentedbycountriestotheCF
Todate,24countrieshavepresentedanEarlyIdeawiththeaimofreceivingearlyfeedbackandexpertadviceand/orhavealsopresentedafull-fledgedER-PINwiththeaimofbeingselectedintotheCarbonFundpipeline(seeTable4). BytheendofFY14,ER-PINsfromeightcountries(Chile,CostaRica,DRC,Ghana,Nepal,Mexico,RepublicofCongo,andVietnam)hadbeenselectedintothepipelineoftheCarbonFund.InFY15,threeadditionalER-PINswerepresented.GuatemalaandPeruwereselectedintothepipelineandIndonesiawasconditionallyselectedintothepipeline,thusincreasingtheCarbonFundpipelineto11countries.
InFY15,CarbonFundParticipantsextendedthetermoftheCarbonFundbyfiveyearstoDecember31,2025,toallowtimeforthedevelopmentofsoundERProgramsandatleastfive-yeartermsofprogramimplementation,aswellasverificationandpaymentofEmissionReductionsgenerated. WiththeextensionofthetermoftheCarbonFund,CFPsalsoindicatedinterestinincreasingfundingtotheCarbonFund,subjecttoqualityproposals.Assuch,countrieswereinvitedtopresentearlyideasforpotentialERProgramsatCF12inApril2015.Ninenewcountries(Argentina,Cameroon,Côted’Ivoire,DominicanRepublic,Fiji,Guyana,LaoPDR,Mozambique,andNicaragua)presentedtheirearlyideaswiththeaimtoreceivefeedbackfromCFPsrelatedtofurtherdevelopingtheEarlyIdeasintoER-PINsforpresentationatCF13inOctober2015. InFY15,sixadditionalcountriesnegotiatedandentered
Country CF2 CF3 CF4 CF5 CF6 CF7 CF9 CF10 CF11 CF12
Argentina EarlyIdea
Cambodia EarlyIdea
Cameroon EarlyIdea
Chile EarlyIdea ER-PIN ER-PIN
Colombia EarlyIdea
Costa Rica EarlyIdea EarlyIdea ER-PIN ER-PIN
Côte d’Ivoire EarlyIdea
Democratic Republic of Congo
EarlyIdea EarlyIdea ER-PIN ER-PIN
Dominican Republic
EarlyIdea
Ethiopia EarlyIdea
Fiji EarlyIdea
Indonesia EarlyIdea EarlyIdea EarlyIdea ER-PIN
Mexico EarlyIdea EarlyIdea ER-PIN
Ghana EarlyIdea ER-PIN
Guatemala EarlyIdea ER-PIN
Guyana EarlyIdea
Lao PDR EarlyIdea
Madagascar EarlyIdea
Mozambique EarlyIdea
Nepal EarlyIdea ER-PIN
Nicaragua EarlyIdea
Peru EarlyIdea ER-PIN ER-PIN
Republic of Congo
EarlyIdeaER-PIN ER-PIN
Vietnam EarlyIdea EarlyIdea EarlyIdea ER-PIN
Table 4: Countries that have presented early ideas or ER-PINs to the Carbon Fund
BOX 2: GENERAL CONDITIONS FOR EMISSION REDUCTIONS PAYMENT AGREEMENTS (ERPA)
TheGeneralConditions(GCs)arethelegalunderpinningoflarge-scalecarbontransactions.TheyprovideforgeneralrulesandproceduresforthesaleandpaymentforEmissionReductions(ER)tobegeneratedandverifiedunderanEmissionReductionsProgram.TheGeneralConditionswillbeincorporatedintoeachEmissionReductionsPaymentAgreement(ERPA)bywayofreferenceandarenon-negotiable.
Relation to the Methodological Framework: TheGeneralConditionsbuildonthecriteriaandindicatorsspecifiedintheMethodologicalFrameworkandprovide,amongothers,forthegenerallegalrulesandproceduresthatareexpectedtobefollowedduringEmissionReductionsProgramdesign,preparation,and,implementation.
Content of the General Conditions:WhereastheEmissionReductionsPaymentAgreement(ERPA)willcoverthecommercialtermsofacarbontransactionthatarenegotiableonacase-by-casebasis,theGeneralConditionsprovideforasetof(non-negotiable)generalrulesandproceduresthatapplytoeachtransaction.Suchrulesandprocedurescover,amongotherthings,issuesrelatedtothesale,transferandpaymentforverifiedERs,theallocationofresponsibilitiesintermsofERProgramdevelopment,ERProgramRegistration,ERMonitoringandERVerification,ERProgram/Sub-Projectimplementationandoperation,applicationofWorldBankOperationalPolicies(includingenvironmentalandsocialsafeguardspolicies),benefitsandbenefitsharingprinciples,Reversals,ReversalManagementMechanisms,ERProgramBuffer,transferofTitletoERs,EventsofDefaultandrelatedremedies,governinglawanddisputesettlement.
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intoaLetterofIntent(LOI)withtheWorldBankinitsroleasthetrusteefortheFCPFCarbonFund.ThereforeeightoftheelevencountriesselectedintotheCarbonFundpipelinehavenowsignedLOIs.Signatureispendingintheremainingthreecountries.InGuatemalasignatureisawaitingelectionoutcomes,inIndonesiasignatureispendingsubmissionofarevisedER-PIN,andinPerusignatureissubjecttoinstitutionaldiscussions. Intermsofnextsteps,countriesselectedintotheCarbonFundpipelinewillnowadvancethedevelopmentoftheirERProgramsconsistentwiththeMFandinaccordancewiththeWorldBank’sduediligenceprocess.TheywillalsoneedtopreparetheirReadinessPackageandhavetheReadinessPackageendorsedbythePCbeforesubmittingtheirERProgramDocumentforpotentialselectionintotheCarbonFundportfolio.BasedoncountrycapacityandexpectedtimelinestoprogressthroughtheCarbonFundbusinessprocess,thefirstERPDsubmissionstotheCarbonFundareexpectedinFY16.Therefore,thereisnopossibilityofsigningfiveERPAsby2015aspertargetintheFCPFM&EFramework.
Output 2.3: Increased levels of private sector investment for incentivizing, testing, and supporting up-scaling of ER activities
Output-levelindicator2.3:NumberofprivatesectorparticipantsinCarbonFundTarget:Twonewprivatesectorparticipantsby2014
WhiletheFCPFCarbonFundisnolongeractivelypursuingnewprivatesectorparticipantsintotheFunditself,theFCPFisinsteadfocusingonstrengtheningrelationshipswiththeprivatesectorwithaviewtofacilitatingpublic-privatepartnershipswithcompaniesthatproduce,tradeorbuycommoditiesthathavearoleindrivingdeforestationorforestdegradation. TheimportantrolethattheprivatesectorcanhaveforREDD+featuredprominentlyattheUNSecretaryGeneral’sSummitonclimatechangethattookplaceinNewYorkin2014,andtheresultingNewYorkDeclarationonForests.Withclimatechangeimpactingthebottomlineofprivatesectorbusinessandthesecurityofsupplychains,combinedwithgrowingconsumerawarenessofthedeforestationimpactofcertaincommodities,theprivatesectorhasanincreasedinterestindevelopingworkingrelationshipswiththepublicsectortoaddressunderlyingconstraints.Suchconstraintsincludetheneedforlandpolicyreform,improvedsmallholdercapacityinsupplychainmanagement,transformativeshiftstosustainablefarmingpractices,andimprovedenablingenvironmentsforprivatesectortodecoupleincreasedagriculturalproductionfromdeforestation. InFY15,theFCPFescalateditsengagementwithselectedprivatesectorcompaniestohelpfacilitatepublic-privatepartnershipsthattakedeforestationoutofthecommoditysupplychains.REDD+Countriesarealsoincreasinglyawareoftheimportanceofengagingtheprivatesectortoachieveimpactatscale. Forexample,MondelēzInternationalanditssuppliershave
expressedtheirsupportforimprovingcocoafarminginCôted’IvoireandexploringthebasisforcooperationbetweentheCôted’Ivoire’semergingEmissionReductionsProgramareaandthepilotofMondelēz’CocoaLifeprogram.Apartnershipoffersopportunitiestoscale-upinvestmentstoincreasefarmers’productivity,enhancedtraining,andincreasedaccesstoagriculturalinputs,whichinturncontributestoreducethepressureforagriculturalexpansionintoforestareas.IntheRepublicofCongo,CIB-OLAMhasbeenalongstandingpartner,includinginthedevelopmentofthecountry’sER-PIN.OLAMhaspartneredwiththeGovernmenttorehabilitatetheCongo’scocoamarketbyharnessingOLAM’sstrategicmarketpositionintheglobalcocoasector.Activitiesincludetheintensificationofshadegrowncocoaproductionwithcommunitiesindegradedforeststoavoidslash-and-burnpracticesintheprimaryforest. AnotherexampleisGhana,wheretheFCPFsupportsapartnershipbetweentheNationalCocoaBoard,small-scalecocoafarmersandcocoa-sourcingprivatesectorcompanies.Partnershipopportunitiesevolvearoundpromotingclimate-smartcocoapractices,agroforestry,andcommunity-basedapproachestoincreasecocoaproductivityandmeetevolvingglobalindustrydemandforsustainablecocoasupplychains.
Output 3.1:Enhanced capacity of IP and CSOs to engage in REDD+ processes at the country level
Output-levelindicator3.1.a:(i)Numberandtypeofexamplesofin-countryREDD+actionswhereIPandCSOsandlocalcommunitiesparticipateactivelyTarget:VariousnewexamplesexistwithstrongevidenceofIPandCSOactiveparticipationandbroadcommunitysupportinREDD+programs/readinessby2015
InMexico,theCONAFRoundtableforIndigenousPeoplesandRuralDwellerswasestablishedin2014.ItaimstoprovidesupportandfeedbacktotheconsultationprocessonthenationalREDD+Strategy(ENAREDD+).Amongstothers,theroundtableisintendedtoprovideadditionalinputtotheconsultationplanforthestrategy;developajointmethodologyforimplementingoftheENAREDD+consultations,withemphasisonmodalitiesdirectedatruralandindigenouscommunities,toensurethattheyareculturallyrelevant;evaluatetheENAREDD+consultationprocessandmakerecommendationsateachphase;andhelptosystematizethecommentsandopinionsexpressedduringtheconsultationphaseandmakerecommendationsfortheirinclusioninthefinalENAREDD+document.Thefollowingorganizationsareinvolvedintheroundtable:StateUnionofCommunityForestersofOaxaca,A.C.(UESCO),theNationalUnionofCommunalForestOrganizationsA.C.(UNOFOC),theGoverningCounciloftheMexicanNetworkofRuralForestryOrganizationsA.C.(REDMOCAF),theIndigenousTourismNetworkofMexico(RITA),theWirraricaInterstateUnionofCeremonialCentersofNayarit,JaliscoandDurango,andtheUnionofSierradeJuarezCommunities,A.C.(UCOSIJ).
InNicaragua,activestakeholderengagementwasachievedthroughtheSESAandrelatedprocesses(e.g.,FGRMconstruction,socialcommunications).KeystakeholdersintheNorthernandSouthernAutonomousRegionsoftheCaribbeanCoast,thesub-regionofthecountrywhereMARENAexpectsmostofREDD+implementationactivitieswilltakeplace,wereconsultedinsevenpre-SESAmeetingswiththeobjectivetofeedintothepreparationofthenationalREDD+StrategyledbytheMinistryofEnvironmentalandNaturalResources(MARENA).Duringtheinitialsevenpre-SESAmeetings,theneedforadditionalawarenessraisingandtrainingaroundREDD+ontheCaribbeanCoastwasidentifiedandMARENAreviseditsSESAworkplansaccordingly.Consequently,anadditional23consultationworkshopswerecarriedout.ThesenotonlycoveredtopicsofstandardconcernforSESA,suchasforestgovernancestructuresatthenationalandsubnationallevels,butalsoothertopics,suchasimprovedforestmanagementpractices. InEthiopia,representativesofcivilsocietyorganizationsand“underservedcommunities”areactivelyengagedintheREDD+workinggroups,includingtheSESAtaskforce.ThetaskforceplayedacriticalroleinprovidingoversighttotheSESAprocessandthedevelopmentoftheEnvironmentalandSocialManagementFramework(ESMF)inEthiopia.TheCSOsandtheorganizationsrepresentingunderservedcommunitiesinEthiopiarepresentedintheTaskForceinclude:ClimateChangeForum(CCF)Ethiopia,EthiopiaEnvironmentalJournalistsAssociation,FarmAfrica,InitiativeforLivingCommunityAction,PastoralistForumEthiopia,andSOSSahel.Overthelastyear,localconsultationsweretargetedintheOromiaregion,thegeographicalareaproposedforanERProgramandactiveparticipationofCSOsandlocalcommunitiesatthelocal-level(i.e.,theKebeleandWoredalevels)wasnotable. TostrengthenpublicaccountabilitywithinemergingREDD+structuresinUganda,aself-selectionprocesshasbeenplannedtoselectCSOandIPrepresentativesforREDD+institutionalarrangementssuchastheREDD+Technical
WorkingGroup,SESATaskForce,etc.ThisprocessisbeingsupportedjointlybytheFCPFandtheUN-REDDProgrammeandisaimedatincreasingtherepresentativenessofCSOsandIPsinthesenationalREDD+structures. InLiberia,strongleadershipbyCSOsandtraditionalcommunitiesintheREDD+processhasbeenevident.TheongoingSESAprocesshasthusfarreceivedsupportfromlocalcommunities.Country-levelCSOsareintheforefrontintermsofstakeholderengagement,andtheyareactivelyparticipatinginthecommunity-basedconsultationactivities. InMozambique,emphasiswasplacedonstrategiccommunicationandpublicconsultationaspartoftheSESAprocess.Intotal,22publicconsultationswereheldandanumberofadditionalawarenessraisingactivitiescarriedout.District-andcommunity-levelconsultationswereimplementedinsevendistrictscoveringthedifferentregionsofthecountry.Atthenationallevel,asteeringcommitteewascreatedbynationaldecree,whichhascivilsocietyrepresentationandismeetingregularly.Tobetterengageregionalstakeholders,twoprovinciallevellandscape/REDD+Forumswereestablished.Consultationswereaccompaniedbyacomprehensivecommunicationsplan,whichincludedradio,TV,anonlinecartoon,pamphlets,andpolicybriefings. CivilsocietyactorsandIndigenousPeoplesrepresentativeshavebeenactivelyengagedinnational-andcommunity-levelactivitiesrelatedtoERProgramdevelopmentinanumberofcountries.Forexample,inNepalandVietnam,IPswereincludedinthegovernment’steamtaskedwithdraftingtheER-PIN.BothcountriesfurtherhaveoversightcommitteesforERProgramdevelopmentinplaceinwhichIPsarerepresented.IPshavebeeninstrumentalinprovidinginputanddraftingrelevantsectionsonconsultations,SESA,landtenure,andbenefitsharing.InDRC,CSOandIPplatformshavebeeninvolvedindraftingoftheMTRandR-PackageforDRCandarenowactivelyengaginginconsultationsonERProgramdesignintheMaïN’domberegion(seeBox3).
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BOX 3: EXAMPLES OF PROJECTS TO ENHANCE THE CAPACITY OF IP AND CSOS TO ENGAGE IN REDD+ PROCESSES
Nepal: Participation in REDD+ Decision-Making and Consultation of Indigenous Peoples and other Marginalized Forest Dependent Communities
FromJanuary2012toJuly2014,theNepalFederationofIndigenousNationalities(NEFIN)implementedacapacitybuildingprojectfinancedbytheFCPFIP/CSOCapacityBuildingProgrambasedonasetofREDD+themesthatwereidentifiedascrucialbyseveralIndigenousPeoples’communitiesinNepal.NEFINadoptedatwo-tieredimplementationapproach,developingacapacitybuildingandawareness-raisingprojectatthenationalandlocallevel(insixdistricts:Khotang,Sindhupalchok,Sankhuwashabha,Dolakha,DhadingandRolpa).TheultimateaimwastoenhancetheparticipationofindigenousandruralcommunitiesdwellinginTaraiHillandMountainareastoparticipateinREDD+Readinessdecision-makingprocessesandconsultation.TheInternationalWorkGroupforIndigenousAffairs(IWGIA)andtheIndigenousPeoples'InternationalCenterforPolicyResearchandEducation(TEBTEBBA)supportedthepreparationoftrainingmaterialsledbyNEFIN.Keyactivitiesincluded:
• Preparingtrainingmaterials,includingLand,ForestandIndigenousPeoples'RightsinRelationtoClimateChangeandREDDandFrequentlyAskedQuestionsonClimateChangeandREDD+andavideoonclimatechangeandREDD+.
• Holdingprojectmeetingsandeightcapacitybuildingworkshops,withagenderbalance,acrossthecountry.Altogether143womenand135menparticipatedinthevariousactivities,including278IndigenousPeoples’leaders,andjournalistsandCSOrepresentatives.
• NEFINorganizedaconsultationmeetingamongIndigenousPeoplesandtheSESAconsultants’
teamtopresentIndigenousPeoples’viewsonSESArelevantissues.
• DevelopingcasestudiesandarticlesonindigenousknowledgeandcustomaryinstitutionscontributingtoclimatechangeadaptationandmitigationinNepal.
Panama: Strengthening REDD+ Capacities of Guna Leaders, Women and Youth in the Gunayala ComarcaFrom2013-2014thePanama-basedorganizationFundaciónparalaPromocióndelConocimientoIndígena(FPCI)implementedaprojectfinancedbytheFCPFIP/CSOCapacityBuildingProgramtostrengthenREDD+capacityofGunaleaders,womenandyouth.Followingtheircustomaryconsultationprocesses,theprojectincludedaseriesofworkshopsandactivitiesonsocialandenvironmentalsafeguardsissuesatthecommunitylevelintheGunaYalaComarca.TheprojectenhancedtheunderstandingofREDD+issueswiththeIndigenousPeoples’community,notablytheparticipationofindigenouswomen’sparticipationinthevariouscapacitybuildingactivitiesandtheinformedparticipationofruralstakeholdersinthenationalREDD+ReadinessprocessinPanama.Keyactivitiesincluded:
• HoldingtwotrainingworkshopsonREDD+topics,includingclimatechange,adaptation,mitigation,withtheparticipationofGunaleadersandauthorities,andGunawomen,andyouth.
• Progressinginthestudyonsocialandenvironmentalsafeguards,whichisbeingimplementedfollowingcustomaryrules.
• Disseminatingprojectactivitiesatthelocallevel,throughcommunityactivitiesandlocalradio.
Amazon Region: Developing a Forest Carbon Map for Indigenous Territories and Protected Areas (Instituto del Bien Común)IndigenousTerritoriesandProtectedAreasaccountfor55percentofallcarbonstoredintheAmazon;however,logging,agriculture,mining,infrastructureprojectsandoildrillingincreasinglythreatentheselands,whichcover4.1millionsquarekilometersspanningnineSouthAmericancountries.FromSeptember2013toDecember2014,theInstitutodelBienComún(IBC),anon-governmentalorganizationbasedinPeru,developedanddisseminatedaForestCarbonMapforAmazonIndigenousTerritoriesandProtectedAreas.Theproject,partiallyfinancedthroughagrantmadefromtheForestCarbonPartnershipFacilities’capacitybuildingprogram,facilitatedthecollaborationbetweenanetworkofscientists,NGOnetworks,indigenousorganizationsandpolicyexpertsworkingonREDD+andstrengthenedforestcarbonmappingcapacitiesofrepresentativesoftheTechnicalSecretariatoftheAmazonlevelNGOCoordinadoradelasOrganizacionesIndígenasdelaCuenca(COICA)andrepresentativesofseveralCOICAmemberorganizations.ItalsoreinforcedthecentralityoftheroleandpositioningofIndigenousPeoplesandotherruralstakeholdersintheAmazonRegionnationalREDD+processes.
Subsequently,projectactivitiesincludedthepreparationofageneraloutlinetodeveloptheForestCarbonMapandaworkshopallowingthereviewoftheForestCarbonMapdesignforAmazonIndigenousTerritoriesandNationalProtectedAreasandadraftinformativedocumentdescribingtheapproach,methodology,andresultsoftheForestCarbonMapping.Thepeer-reviewedstudywasreleasedattheUNclimateconferenceinPeru(December2014)andwaswidelydisseminatedvianumerousinternationalmediacoveragearticles.
Kenya: Enhancing Indigenous and Local Community Consultation and Participation in Sustainable Forest Management
Theproject,implementedbytheKenyanIndigenousPeoples’organizationMainyoitoPastoralistIntegratedDevelopmentOrganization(MPIDO),enhancedindigenousandlocalcommunityconsultationandparticipationinsustainableforestmanagementandREDD+activities.TheprojectfacilitatedthepreparationofseveralstudiesaddressingcentralREDD+themesfromaKenyanIndigenousPeoplesperspective.Projectimplementationadoptedastrategicthematicapproachandidentifiedfourfocusareasforstudy:(a)landtenure,(b)benefitsharingarrangements,(c)governanceandinstitutionalframeworks,and(d)indicatorsonIndigenousPeoplesinthecontextofnationalREDD+design,implementationandmonitoring.Thestudieswereconductedbyateamofconsultants,whoarethemselvesmembersofIndigenouscommunitiesinKenyawithasharedculturalbackground,includinglocalknowledgeandlanguageofcommunitiesvisited,familiaritywithlocalgeographicalandpoliticaldynamics,andextensivecontactsandrelationshipswithinsomeoftheprojectsites.Keyactivitiesinvolved:
• ProvidebaselineinformationonlandtenurestatuswithinIndigenousterritories.
• DevelopingareportonIndigenousPeoples’REDD+benefitssharingandfinancingmechanismfromaKenyanIndigenousPeoples’perspective.
• ConductingananalysisoftheNationalREDD+strategiestoexaminetheextenttowhichIndigenousPeoples’issueshavebeenincorporated.Thisincludedareportanddocumentaryoncommunityengagement.
BOX 3: continued
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Output-levelindicator3.1.a:(ii)ExamplesofresourcesmadeavailabletoenableactiveparticipationofIP,CSOs,andlocalcommunitiesinnationalREDD+readiness
REDD+CountriesareincreasinglyrecognizingthevaluethatactiveparticipationofIP,CSO,andlocalcommunitiescanbringtonationalREDD+readiness. TheGovernmentofNepal,forexample,allocatedsignificantresourcesof$250,000fromtheirREDD+readinessgranttothenationalCSO/IPAlliancePlatformtoenableitsactivesupporttotheconsultationprocessunderthereadinessphase.TheCSO/IPAllianceallocatedthefundsonwardstoinvolvedIPandCSOorganizationsinanefforttoenhancecapacityatdecentralizedlevels. InFiji,Vanuatu,andThailandreadinessgrantresourceshavealsobeensetasidetosupportsimilareffortsoforganizingandstrengtheningofREDD+CSOPlatform.Output-levelindicator3.1.b:NumberofIPandREDD+countryCSOrepresentatives(men/womenand/oryouth)thathaveparticipatedandbenefittedfromFCPForganizedworkshops/trainingsonSESA,governance,MRVaspects/relatedaspectsofREDD+
FCPFobserversfromAfrica,AsiaandLACparticipatedinahigh-leveldialogueorganizedbytheWorldBankandattendedbyWorldBankGroupseniormanagement,includingtheWorldBankGroup’sPresident.ThismeetingfocusedonmechanismsfordeepeningIPinclusioninWorldBankprocessesforsustainabledevelopment.FCPFobservershavealsobeenactivelysupportedbytheFMTtoparticipateinotherinternationalprocessesandfora,liketheUNPermanentForumonIndigenousIssues,aswellasintheConferenceofPartiesmeetingsorganizedbyUNFCCC.
InFY15,FCPFobserversexpressedtheirappreciationoftheroletheFCPFhashadinbuildingatrustfulpartnershipbetweenobservers,countriesandtheFacilityitself,anditsroleinfacilitatinginclusionandparticipationofIPsatglobal,regional,andmostimportantly,nationallevel.
Output-levelindicator3.1.c:ExamplesofIPsandREDD+country-CSOrepresentationininstitutionalarrangementsforREDD+atthenationallevel
GovernmentsarepayingincreasingattentiontoeffectiveprocessesandinstitutionalarrangementsforengagementofIPsandcivilsocietyinnationalandsub-nationalREDD+planningandimplementation.ThisisnotonlybasedontheFCPF’scommitmenttosocialinclusion,butalsoincreasinglyaresultofpositiveexperiencesmadebycountriesthathaveledthewaywithinclusiveinstitutionalarrangementsandseenbenefits,suchasconstructivewaystopreventgrievance,ensureinputfromallstakeholders,andimprovetheoverallpublicperceptionofREDD+processes. Asaresult,IPsarenowrepresentedinmanynationalinstitutionalarrangementsforREDD+,suchasnationalREDD+technicalbodiesandsteeringcommittees.Inmanycountries,theyareactivelycontributingtotheplanninganddesignofREDD+readinessimplementationaswellasthedesignofREDD+pilotsandprograms.IncountrieswhereIPandCSOgroupsarenotyetrepresentedinthehighest-levelofnationalREDD+committees(typicallyattheministeriallevel),effortscontinuebeingmadebythesegroupsforpermanentinclusionintothesetop-levelcoordinationarrangements. Whilenotexhaustive,thecountriesthatareknowntohaveIPsandCSOsrepresentationaspartofnationalREDD+technicalbodiesand/ornationalinstitutionalarrangementsfor
REDD+includeCameroon,Chile,Colombia,CostaRica,DRC,ElSalvador,Fiji,Guatemala,Guyana,Honduras,Indonesia,Kenya,Mexico,Nepal,Nicaragua,Panama,Peru,RepublicofCongo,Thailand,Uganda,Vanuatu,andVietnam.InBhutan,Côted’Ivoire,Ethiopia,Ghana,Liberia,Madagascar,Mozambique,Nigeria,Uruguay,andTogo,CSOsandlocalcommunities(inthecaseofAfricancountries)arepartofthesestructures.
Output 3.2: Pilots have been successfully implemented on ways to sustain and enhance livelihoods and conserve biodiversity
Output-levelindicator3.2.a:NumberofcountrieswherestakeholderengagementplatformsproposedinRPPshavetakenupworkandmeetregularly
Themajorityofcountrieshaveestablishedorareintheprocessesofoperationalizingstakeholderengagementplatformsandassociatedinclusionprocessestodeepenparticipationandcollaborationwithawiderangeoflocal,subregional,andnationalstakeholdersrelevanttoREDD+.AnexampleisprovidedinBox5.
Output 4.1: Knowledge products and lessons from piloting of REDD+ in general and FCPF activities in particular are developed and disseminated, in accordance with global knowledge management and communication strategy and annual work plans
InFY15,theFCPFcontinuedtodisseminateknowledgeandlessonslearnedfromFCPFactivitiesthroughdigitalandprintplatforms.Thispastyear,theFCPFSecretariatlaunchedanewsletter,InsideFCPF,tosharetimelyupdatesonREDD+Countryactivities,FCPFdeadlines,knowledgeproducts,andimagesfromFCPFeventswithstakeholders.Thenewsletter,
producedquarterly,alsodrivestraffictotheFCPFwebsite,themainplatformforinformationandknowledgesharing.TheFCPFwebsite,whichcontinuestobeupdatedwithnewsfromtheSecretariatandcountryprograms,hadanincreaseinvisitsof14percentoverthepastfiscalyear.Inaddition,therewasa30percentboostinthevolumeofusersofthewebsiteoverthisperiodcomparedtothepreviousfiscalyear. TheFCPFalsoremainsengagedinpromotingitsactivitiesandknowledgethroughsocialanddigitalmedia.TheFCPFFacebookpagedramaticallyincreaseditsoutreachoverthepastfiscalyear,startingatunder200followerstosurpassing700followersoveronlya12-monthperiod.CertainpostsontheFCPFFacebookpagehavereachedover400readers.TheFCPFhasalsosharedlessonslearnedthroughonlinefeaturestoriesontopicsrelatedtonewprogramsselectedintothepipeline,engagementofIndigenousPeoplesinprogramdesignandthelandscapeapproach,amongothers.ThesestoriesarepromotedthroughtheWorldBank’scommunicationchannelsfocusedonClimateChange,EnvironmentandNaturalResourcesandAgriculture.Inaddition,theFCPFhasanactivepresenceontheWorldBank’sClimateChangeTwitteraccount(@wbclimate)whichhasover50,000followers.
Selected knowledge products in FY15 included:
InMarch2015,theFCPFhostedawebinarwiththreeexpertswhocollaboratedonastudyonthe“ForestCarbonAssessmentintheAmazon’sIndigenousandProtectedAreas.”TheworkwasledbytheAmazonianNetworkofGeoreferencedSocio-EnvironmentalInformation(RAISG)incollaborationwiththeWoodsHoleResearchCenter,COICA(CoordinationofIndigenousOrganizationsoftheAmazonRiverBasin)andtheEnvironmentalDefenseFund,andpartiallyfinancedthroughagrantfromtheForestCarbonPartnershipFacility.
BOX 4: IMPLEMENTATION OF THE FCPF CAPACITY BUILDING PROGRAM (CBP) FOR FOREST-DEPENDENT PEOPLES AND SOUTHERN CSOS
Implementation of the IP/CSO Capacity Building Program continued in FY15, with emphasis shifting to the start-up of the Program’s second phase. Significant progress was made on clarifying and following the processing steps within the World Bank for the six new grants (two per regional bloc) to be provided under this phase.
A workshop was organized in May 2015 in Washington, DC, to strengthen capacity of grant recipient organizations (previously referred to as “regional intermediary organizations”). The workshop helped recipients to: i) refine the design of their projects; ii) better reflect the regional context in their nascent work plans; and iii) understand project implementation arrangements for the projects more fully.
Slower progress was seen in other areas, such as in the solicitation and securing of no-objections from REDD+ country governments to operate the CBP in their countries, in keeping with World Bank guidelines for small grants. Consequently, a self-selected group of PC members, the “FCPF Capacity Building Program Monitoring Group”, was established to monitor the FMT’s advances on the preparation and approval of grants under Phase 2. The FMT reports to the group on a quarterly basis.
Meanwhile, during FY15, 10 of the 12 active contracts under Phase 1 of the CBP were completed and closed. The two contracts that remain open, which have a total remaining balance of $44,688, were entered into with IP organizations in Latin America, and they are expected to conclude in the third quarter of FY16. To date, 26 contracts totaling $ 1.9 million have been completed and closed.
BOX 5: EXAMPLE OF A STAKEHOLDER ENGAGEMENT PLATFORM: MOBILIZING CIVIL SOCIETY ORGANIZATIONS FOR PARTICIPATION IN REDD+ ACTIVITY IN CAMEROON
The From March to December 2013, the REDD+ and Climate Change Platform of Cameroon (REFACOF) implemented a project financed by the FCPF IP/CSO Capacity Building Program to organize and mobilize civil society organizations from 30 of Cameroon’s Sub-Districts to enhance full, direct and effective participation of indigenous and local communities in the REDD+ Readiness process. The focus areas involved monitoring and reporting on REDD+ actions including dynamics on deforestation and forest degradation, sustainable forest management, conservation of forest and biodiversity, enhanced forest carbon stock, and social, environmental, and governance-related safeguards. The project allowed the REDD+ and Climate Change Platform to reach communities at the local level and engage community focal points for REDD+ and Climate Change related initiatives. Key achievements included:
• Organizing a repertoire of 331 civil society organizations engaged in REDD+ and Climate Change activities in Cameroon (including Indigenous Peoples organizations, women’s organizations, and youth organizations, among others).
• Setting community coordination structures in 10 regions in Cameroon, composed of 80 female and male coordinators.
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InApril2015,theFCPFjointlypublishedareport,“EarlyLessonsfromJurisdictionalREDD+andLowEmissionsDevelopmentPrograms,”withTheNatureConservancy.ThereportfeatureseightjurisdictionalREDD+/LEDprogramsdesignedtoreduceforest-relatedemissions(sixofthesejurisdictionshavebeenadmittedintotheFCPFCarbonFundpipeline).Thejointstudyfindsthatwithappropriateinvestmentandsupport,jurisdictionalREDD+/LEDprogramshavethepotentialtobecometransformationalmodelsofforest-friendlydevelopment. InMay2015theFCPFlaunchedareportonaforestgovernanceassessmentforREDD+implementationthroughapplicationofthePROFORforestgovernancetoolcarriedoutinLaoPDR.Thepublicationincludesbackgroundinformationontheknowledgeandexperiencefromimplementingtheforestgovernancediagnosticexerciseaspartofthecountry’sREDD-readinessprocess. InMay2015,theFCPFlaunchedaTechnicalDecisionSupportToolandassociatedTrainingMaterial,bothofwhichareavailablethroughtheFCPFwebsite.TheToolguidescountrieswiththedevelopmentofforestreferenceemissionlevels(emissionbaselines)andforestmonitoringcapacity.Morespecifically,itsupportsREDD+countrieswithmakingavarietyoftechnicalandpolicydecisionsandwithadvancingcapacitybuildingandtraining.TheREDD+DecisionSupportToolallowsuserstoexplorepolicy,methodologicalandtechnologicaloptionsandgaindeeperunderstandingwithasetofcomprehensivetechnicaltrainingmaterials.ThetoolboxisintendedtobeusedbyFCPFcountriesastheyconsiderkeydesignandtechnicalcomponentsoftheirnationalorsubnationalREDD+programs.ItprovidespracticalguidancebasedonexistingREDD+frameworksincludingtheUNFrameworkConventiononClimateChangetheFCPF’sCarbonFundMethodologicalFramework. InJune2015,theFCPFandUN-REDDProgrammejointlypublishedaGuidanceNoteonEstablishingandStrengtheningGrievanceRedressMechanisms,whichservestostrengthenin-countrycapacityforgrievanceresolutioninordertorespondtocontentiousissues,complaintsanddisputes,andprovidestoolstohelpcarryoutactivitiestoassessandstrengthengrievanceredressmechanismsduringthereadinessphase.
Output as per PMF 4.2: Participants actively engage in South-South learning activities
Output-levelIndicator4.2.a:NumberofS-Slearningactivitiesand/oreventsconnectingFCPFcountries
FromFebruary23-28,2015representativesfromgovernmentandprivatesectorinEthiopiaandMozambiquetraveledtoBrazilforaSouth-Southknowledgeexchangeonsustainableforestplantations.Thestudytripincludedmeetingsandlearningsessionswithgovernment,privatesectorandresearchinstitutionsonhowforestplantationscanpromoteruraldevelopmentandreducepressureonnativeforests.Thestudytouraimedto:
• Increaseparticipants’knowledgeonhowre/afforestationactivitiesandplantedforestscan
contributetopovertyreduction,focusingonsmallholdersinthetimbersupplychains,organizationofsmallproducerstoparticipateinplantationsactivities,extensionandsupportservicesandpublic-privatepartnerships;
• Increaseawarenessonthelatestadvancesonsilvicultureandtechnologiesonfast-growingspecieswithparticularemphasisonapplicabilityforsmallholderforestry;environmentalsustainabilityinforestplantation,includingtherelationshipbetweenforestplantationsandthereductionofpressureonthenativeforest;
• Enableparticipantstobringhomeskillsandtransferableknowledgeonpublicpoliciesandincentivestofosterforestplantationsbytheprivatesector(large,small,domesticandinternational)thatcouldbeappliedintheircountrycontextsandusedtoformulateconcreteactions;
• Provideparticipantswithknowledgeontoolstoaccesstofinance,smartsubsidiesandinnovativesourcesoffinancingforforestactivitiesandhowtocreateapositiveinvestmentclimateforforestactivitiesandwoodindustry;
• ToestablishandstrengthenlastingpartnershipswithBrazilianentitiesandagenciesworkingintheforestrysectorthatcanbesustainedafterthestudytour.
OnNovember4,2014aJointFCPF–UN-REDDProgrammeKnowledgeExchangeDaywasheldinthecontextoftheUN-REDDPolicyBoardandFCPFPCmeetingsinArusha,Tanzania.Theeventhelpedbuildcapacity,fosterSouth-Southknowledgeexchange,andpromotemutuallearningaspartoftheFCPF’sobjectivetodisseminateknowledgeonREDD+.Theknowledgedaybroughttogether150participantsandincluded:i)apanelsessiononcountryperspectivesoncoordinationofdifferentmultilateral,bilateral,andprivatefundingstreamsforREDD+,ii)atechnicalcapacitybuildingsessiononforestcarbonmonitoring,inparticularondesignofthereferenceemissionlevelandaforestmonitoringsystems,iii)severalparallelSouth-Southknowledgeexchangesessiononsixthematictopicsrangingfromsafeguardsapproachestopaymentforenvironmentalservicesschemes.
Output-levelIndicator4.2.b:TotalnumberofparticipantstoSouth-Southknowledgeexchangeactivitiesbycategory
InFY15,theFMT’sfocushasbeenonprovidingtargeted,country-tailoredsupport,training,andcapacitybuildingwithR-PackageaswellasERProgramdevelopment.InFY15,countriesemphasiswasmoreonadvancingprogramdevelopmentthanonrequestingSouth-Southexchanges.MorerequestsforSouth-SouthexchangesareexpectedtocomeinFY16.
Output 4.3: Strong visibility of REDD+ and FCPF is achieved
Output-levelIndicator4.3.a:Numberofneutral/positivementionsofFCPFandREDD+issuesindifferentkeymediaworldwideperXperiod
InthecontextofthebuilduptointernationalclimatenegotiationsatCOP21inParis,mentionsoftheFCPFinthemediahaveremainedconsistentandhavebeenrelatedtohowtheFCPFispilotingREDD+atscaleandputtingintopracticewhatisunderdiscussionintheinternationalpolicyforum.MediaattentionfocusedonadditionalselectionofER-PINsintotheCarbonFundpipelineaswellasgeneralinterestinemergingengagementandpartnershipbuildingwiththeprivatesector.
Output-levelIndicator4.3.b:NumberofnegativementionsofFCPFandREDD+issuesindifferentkeymediaworldwideperyear
CriticalmentionsoftheFCPFandREDD+issuesininternationalmediaworldwidehavedroppedfollowingtheapprovalofkeytechnicalandthematicguidance,suchastheMethodologicalFramework.SomenegativementionsoftheFCPFremainrelatedtosafeguardsforlandtenureandcarbonrights.TheFCPFSecretariathasrespondedwhennecessarytoinconsistenciesbetweenFCPFactivitiesandmediareports.
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FCPFREDD+COUNTRYPARTICIPANTS
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REDD+ has a challenging agenda given its multi-sectoral and multi-stakeholder dimensions, and the large financial and capacity needs involved. It is important, therefore, that development partners come together to provide a package of financial and technical assistance to better serve their client countries.
UN-REDD Programme
InFY15,theFCPFandtheUN-REDDProgrammecontinuedtheircooperationinprovidingassistancetocountriestogetreadyforREDD+.Coordinationhasentailedjointcountrymissionsandsharingresponsibilityforfinancingreadinessactivities.Atthegloballevel,coordinationbetweentheFCPFandtheUN-REDDProgrammeinvolvesjointschedulingofgovernancebodymeetings,theharmonizationofprogrammaticdocuments,thecoordinationofanalyticalandcapacity-buildingefforts,andthejointdeliveryofsecretariatservicestotheREDD+Partnership.TheUN-REDDProgrammefurtherconsultedwiththeFCPFonits2016-2020UN-REDDProgrammeStrategy.InFY15,severalknowledgeactivitieswereplannedandcarriedoutjointly.Further,ajointKnowledgeDaywasorganizedinconjunctionwiththeUN-REDDPolicyBoardandFCPFParticipantsCommitteemeeting,thatbroughttogetherover150participantsandstakeholdersfrombothinitiativestojointlyreflectonprogressandachievementsmadewithREDD+readinessaswellasimplementationsincethetwoinitiativesbecameoperationalfiveyearsago.
Forest Investment Program
TheForestInvestmentProgram(FIP)supportsdevelopingcountryeffortstoreducedeforestationandforestdegradation,andpromotesustainableforestmanagementthatleadstoERandenhancementofforestcarbonstocks(REDD+).TheFIPfocusesonsizableinvestmentsin23countriesinordertoachieveeconomictransformationandgenerateglobalknowledge.TheFIPiscurrentlyactiveineightpilotcountries(Brazil,BurkinaFaso,theDRC,Ghana,Indonesia,LaoPDR,Mexico,andPeru),andadditionally14countrieshavebeenselectedintotheFIPinMay2015.TheFIPandFCPFareactiveinthefollowingcountries:Cambodia,Cameroon,Côted’Ivoire,Guatemala,Guyana,Honduras,Mozambique,Nepal,RepublicofCongo,Uganda,Zambia.
ImplementationatthecountrylevelisbasedonFIPinvestmentplansthathavebeendevelopedthroughacountry-ledprocess,thatbuildonFCPFreadinessorequivalentprocessesanddrawontheR-PPsandtheemergingREDD+strategies.CoherenceandcooperationacrossthedifferentFIPandFCPFactivitieshavebeenachievedespeciallyinDRC,Ghana,Indonesia,andMexico,asgovernmentsensurethatactivityplanningiscloselycoordinatedbetweenthetwoinitiatives.Atthesecretariatlevel,theFCPFisanobservertotheFIPgoverningbodyandhassharedpertinentinformationwiththeCommittee,forinstance,ontheFCPFReadinessAssessmentFramework.FIPhasequallyparticipatedinthePC19meetingandpresentedanupdateofimplementationactivitiesinFIPcountries,whicharealsosupportedbytheFCPFReadinessFund.TheFIPhasalsocontinuedtotakeadvantageoftheestablishedFCPFrosterofexpertsfortheindependentreviewofinvestmentplanspriortotheirendorsementbytheFIPSub-Committee.
BioCarbon Fund
TheBioCarbonFund(BioCF)isapublic-privatecarbonfund,operationalsince2004,thatpioneersprojectsthatsequesterorconservecarboninforest-andagro-ecosystems,mitigatingclimatechangeandimprovinglivelihoods.TheoverallgoaloftheFundistodemonstratethatland-basedactivitiescangeneratehigh-qualityemissionreductionswithstrongenvironmentalandsocio-economicbenefitsforlocalcommunities.Inthefirst-generationtrustfunds,about80percentoftheBioCF’sresourceswereearmarkedforafforestationandreforestationprojectsundertheCleanDevelopmentMechanism(CDM);theremainderwasallocatedtoREDD+andsustainablelandmanagementprojects(includingagriculture).BioCFprojectshavearangeofdifferentobjectives,includingfuelwoodproduction,timberproduction,andenvironmentalrestoration.Withthedevelopmentof10CDM-orVCS-approvedmethodologiesandavarietyofcapacityandoutreachactivities,theBioCFhasactivelypromotedthedevelopmentoftheforestcarbonmarketandpioneeredforestcarbontransactionsonthebasisoflocalknow-how.TheBioCFdelivered80-90percentofthecarbonassetstoits
Participants.MostofthecarbonassetswillbeusedtomeetcompliancetargetsundertheUNFCCC’sKyotoProtocol,whichendedin2012.
Leveraginglessonsandexperiencefromasuccessfultrackrecordonproject-basedcarbonfinanceintheland-usesector,theBioCFembarkedonanewinitiativeinFY13,theInitiativeforSustainableForestLandscapes(ISFL).TheISFLbuildsonthelessonsandexperiencefromasuccessful10-yeartrackrecordonproject-basedcarbonfinanceintheland-usesector.Themultilateralfacilitypromotesandrewardsreducedgreenhousegasemissionsfromthelandsector,includingREDD+,moresustainableagriculture,aswellassmarterland-useplanningandpolicies.ISFLwillhelpcountriesidentifyandpromoteclimate-smartagriculturalandlow-carbonland-usepracticesinselectedgeographicalareaswhereagricultureisamajorcauseofdeforestation.Theinitiativewillbuildaportfolioofjurisdictionalprogramsspreadacrossdiversegeographiesthathavesignificantimpactandtransformruralareasbyprotectingforests,restoringdegradedlands,enhancingagriculturalproductivity,andbyimprovinglivelihoodsandlocalenvironments.
TheISFLhasmadeprogresssinceitsinceptionin2013,establishingpolicies,guidelines,andprocessesessentialfortheadministrationoftheInitiative.Further,theInitiativehasidentified,selected,andopenedjurisdictionalwindowsaspartofitsportfolio.ThefirstjurisdictiontobeaddedtotheISFLpipelinewasOromia,Ethiopia.InFY15,theISFLalsoaddedaprograminZambia’sLuangwavalley.
REDD+ Partnership
DuringFY15,theFMTagainservedasSecretariatoftheREDD+Partnership.TheFMToversawthecompletionofkeyprioritiesoftheREDD+Partnership’s2014workprogram,includingorganizingthefinalREDD+PartnershipglobalmeetinginLima(November2014),contractingascopingpaperonpublicprivatepartnerships,andprocuringananalysisofthe2014datafromtheVoluntaryREDD+Database.AttheLimameeting,partnersdecidedtoclosetheREDD+Partnership,butoptedtocontinuetheinternet-basedVoluntaryREDD+DatabasefortwomoreyearsinordertocollectandpublishtransparentdataoninternationalpublicfundingforREDD+.Respondingtothisrequest,theFMTdevelopedadetailedworkplanandtwo-yearcontract,whichwasawardedtoFAO.TheFMTwillcontinuetomanageandprovidequalitycontrolforthecontractthroughout2015and2016,thusensuringthecontinuationofthedatabase.
Coordinating with other REDD+ Initiatives
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IssuesandChallenges
5.1. Disbursements
InFY15,therecenttrendofanaccelerationingrantdisbursementscontinued.The$16.4millioningrantsdisbursedduringFY15,representedanincreaseofover100percentcomparedtothepreviousyear.Inaddition,thenumberofnewreadinessgrantssignedinFY15increasedfrom22toatotalof35.Sixcountriesreachedmid-termstatusinthepastyearandarenowintheprocessofsigningadditionalgrantsof$5millioneach.Itisthereforeexpectedthatdisbursementwillcontinuetoincreasesignificantlyinthecomingyear. However,severalcountriesareyettosigntheirgrantagreementsandothersmaybenefitfromincreasedattentiontodisbursementtargets.TheFCPFwillcontinuetoassistcountriesinmeetingdisbursementtargetsbasedonasetofactionspresentedanddiscussedatPC16inDecember2013(refertoFMTNote2013-6).
5.2. Country-level M&E Frameworks and Readiness Reporting
Comparedtothepreviousyear,countryprogressreportinginlinewiththeFCPF’sMonitoringandEvaluationFrameworkimprovedinFY15.Allcountrieswithsignedgrantagreementsreportedonprogress.WhilecountriesappliedthePMF’snewreportingformat,thequalityofthereportingcontinuestovarywidely. Anumberofcountries(i.e.,Ghana,Kenya,Liberia,andNepalamongstothers)candrawontheirnationalM&EsystemsforrobustmonitoringdataofnationalREDD+readinessandemergingREDD+programs.AnationalM&Esystemhelpscountrieskeeptrackofactivitiesandresults,aswellasidentifyandaddressgaps.However,attheoverallportfoliolevel,progresswiththedevelopmentofnationallevelM&Eframeworkshasbeenslow. InFY15,theFMTcontinuedtoreachouttocountriestoofferguidanceandsupportforpreparationofM&Eframeworks,butdemandhasremainedlow. TheindependentevaluationoftheFCPFinFY16mayprovideanopportunitytoreviewtheFCPF’sM&EFramework,considertherelevanceofallcriteriaandindicatorsinthecurrentPMFandidentifybarriersforcountryreporting.
5.3. Operationalizing Private Sector Commitments
InFY15,theFCPFengagedwithprivatesectorcompaniesinthecontextofemergingERProgramstoidentifyopportunitiesforfacilitatingpartnershipsbetweenREDD+countrygovernmentsandcompaniesthatproduce,trade,orbuyagriculturalcommoditiesthatimpactonforests.Oneofthemainchallengesencounteredwasadisconnectbetweencompanycommitmentsandpledgesmadeatheadquartersandtherealityindecentralizedcompanyofficesontheground.Insomeinstances,localcompanyrepresentativeswerenotreadytocommittodeforestation-freeproducts.Tobridgethisgap,theFCPFhasreachedouttobothcompanyheadquartersandlocalcountryofficesinparallelinanefforttoachievesharedobjectives.TheFCPFisfurtherexploringpartnershipopportunitiesbyfocusingonexistingsustainableagricultureactivitiesandinitiativesbycompaniesintheERProgramarea.
5.4. Leveraging Investment Finance
ThecostofERProgramimplementationmayoftenexceedpotentialcarbonpaymentsthatcountriescangeneratefromverifiedemissionreductions.CountriesareawarethatREDD+isnotservingtoprovidefullcostrecoveryoftheimplementationcostofREDD+activitiesthatacountrymaycarryout.Assuch,countriesareincreasinglyfocusingonidentifyingandaligningvariousstreamsofupfrontinvestmentfinancetocoverimplementationcost.TheFCPFhasbeensupportingcountriesinidentifyingpotentialsourcesofinvestmentfinance.However,additionalsources,includingthroughinnovativefinancingmechanismsmaybeneeded.InFY16,theFCPFwillcontinuetoprovideguidanceoninnovativefinancingoptionsaswellassupportcountrieswithleveragingtraditionalinvestmentfinance.
5The overall progress on FCPF outputs and outcomes as intended for the FY15 reporting period has been satisfactory. While progress has been made to resolve previously identified challenges related to disbursement and country-level Monitoring and Evaluation (M&E) reporting, the Facility Management Team (FMT) will continue its efforts to monitor and address these with further follow-up action in FY16.
Grant disbursement increased by 100% in FY15 compared to FY14
100%
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supports countries efforts to achieve emission reductions from deforestation and/or forest degradation, and to benefit from possible future systems of positive incentives for REDD+.
FCPF
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However,trackingofassumptionsisimportanttogaugeunforeseenconsequencesincasetheassumptionsdidnotholdtrue.Referencetotheimpact,outcomeandoutputwheretheassumptionwasreferencedintheLogFrameof
theM&EFrameworkisincludedinColumn1ofthetable.AsecondtablewithnewrisksthatwerepreviouslynotidentifiedintheLogframeisalsoincluded.
Level at which assumption is referred to in LF
Original assumptions from LF
Current level of risk
Explanation of risk rating
Mitigation measure proposed
Impact1.1Outcome1Output2.3Outcome3Outcome4Output4.3
GlobalclimatechangenegotiationsunderUNFCCCremainsupportive.
Low TechnicalaspectsonREDD+havebeenagreedonandtheremaininguncertaintyistheinclusionofREDD+inanewclimateagreement.
TheriskassociatedwiththisassumptionisbeyondthedirectcontroloftheFCPF.TheFCPFcontinuestoremainresponsiveandtoinformthenegotiationprocess.
Outcome1Outcome3Outcome4
TheincentivesprovidedbyREDD+schemesaresufficient.
Low TheriskrelatestoincentivesforcountriestoadvancetotheReadinessPackage,stakeholderengagement,andknowledgedisseminationofexperiences.SufficientresourcesareavailabletocountriesthroughtheFCPF,otherbilateralandmultilateralresourcestoadvancetotheR-Package,whilemaintainingadequatelevelsofstakeholderengagement.
Nomitigationmeasureisrequiredatthisstage.
Outcome1 ForpurposesoftheReadinessFund,submissionoftheR-PackagebyREDD+Participantsisvoluntary.
N/A − Theassumptiondoesnotrequiremonitoring.
Outcome1 TherearenoextraordinarycircumstancesinthecountrythatpreventsubmissionofRPs.
Medium Attheportfoliolevel,somecountrieshavesocio-politicalcircumstancesthatcouldslowsubmissionoftheR-Package.
Nomitigationmeasureisrequiredatthisstageattheportfoliolevel.
MonitoringofAssumptionsandRisk
6ThefollowingtablepresentsasnapshotofassumptionsidentifiedintheLogFrameagainstkeyimpacts,outcomesandoutputs,thelevelofriskassociatedwiththeseassumptions,andtheproposedmitigationmeasureasrelevant.Anassumptioninmostcasesindicatesareas/circumstancesthatarebeyondthecontrolofthegovernanceframeworkoftheFCPF.
Across the portfolio completion of SESAs and ESMFs is still low.
Risk:
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Level at which assumption is referred to in LF
Original assumptions from LF
Current level of risk
Explanation of risk rating
Mitigation measure proposed
Output1.2 Plansandtargetswererealisticallyassessedbytechnicalexpertsbeforeapprovalinviewofexistingbaselinecapacitiesandparticipantcountries’contexts.
Low R-PPsofall45activecountrieshavebeenassessedbythePC.Attheportfoliolevel,signingofgrantagreementshassignificantlyincreasedwith35signedgrants.ItisexpectedthatallgrantagreementswillbesignedbyendofFY16,withtheexceptionofspecialcircumstances.
DPsareactivelypursuingsignedgrantagreements.
Output1.3 Thepoliticalandsocio-economiccontextintheParticipantcountriesremainsstableenoughovertheimplementationperiodsothatthecapacitybuiltremainsinplace.
Low Theoverallriskattheportfoliolevelassociatedwiththepoliticalandsocio-economiccontextforreadinessimplementationremainslow.
ThediversityofREDD+countriesintheportfolioisabuilt-inmitigationmeasure.
Outcome2 Interestinperformance-basedpaymentsremainshighenough.
Low Theinterestofdonorsinperformance-basedpaymentsschemeshasbeenhighinthereportingperiod.Interestinperformance-basedpaymentsbyREDD+countriesisevidentfromtheadditionalER-PINsandearlyideaspresentedtotheCF.
Theriskwillbemonitoredcontinuouslyintheforthcomingperiods.
Output2.2 AlargeenoughnumberofcountrieshavethecapacitytomeetallstandardsandFCPF/DPadministrativeprocessesdonotputundueburdenontheCFoperation.
Medium/High
TheassumptionisinrelationtothelikelihoodofcountriesenteringtheCFportfolio.TheriskratingissubjectiveandbasedontheearlyfeedbackfromREDD+countriesinthecourseofthedevelopmentoftheMF.
PilotingoftheMFinthefirstfewREDD+countriesisproposedandwillprovidearealisticassessmentofcountrycapacitytomeetthestandards.
Output2.4 FiveREDD+countrieshavesignedERPAsby2015.
High ThesuccessfulselectionofER-PDswillindicatethetimelinesforERPAsigningandprogramimplementation.ThetermoftheCarbonFundhasbeenextendeduntil2025toallowadequatetimeforERProgramdevelopmentandimplementation.
Thebusinessprocess(underpreparation)isrealistic.
Output3.1 RelevantguidelinesintheCommonApproacharefollowedandprocessessuchasSESAareactuallyimplementedincountries,providingforareceptiveenvironment.
Low/Medium
TheSESAprocessisstartingtoberolledoutinreadinessimplementationinseveralcountries.
Attheportfoliolevel,somestakeholdergroupsidentifiedaneedtoenhancein-countryunderstandingoftheSESA.Amongotherefforts,theFMThasheldregional-level,socialinclusionworkshopstomitigatethisgapandensureproperSESAimplementation.
Level at which assumption is referred to in LF
Original assumptions from LF
Current level of risk
Explanation of risk rating
Mitigation measure proposed
Output4.2 Eventsmanageddirectlybycountries(notorganizedbyFMTitself)aretimelyandeffectivelyplannedtofeedintotheprocessoflearningandinvolvekeystakeholders.
Medium ThereisdiversityintheFCPFportfolioonhoweventsaremanagedatthecountrylevel.Assessmentisbasedonfeedback.BroadfeedbackreceivedbytheFMTfromcountrystakeholderssuggeststhatprocessesincountryhavebeeninclusive.
Countriescontinuetoenhancecommunicationandstakeholderengagementcapacitythroughreadinessgrantsandotherbilateralsources.
New risks/previously unidentified risks that have a bearing on annual work planning and intervention logic
Mitigation measure proposed
1.Weakprocurementcapacityhasdelayedthestartofreadinessimplementationinsomecountries.
Readinessgrantsarerecipient-executedandaresupportingthehiringofprocurementexpertsand/ortheprocurementtrainingneedsofrelevantstaffofthenationalREDD+coordinationoffice.
2.ReducedinterestofprivatesectorinREDD+atthecountrylevel CountriesencourageadialoguewithrelevantprivatesectorcompaniesinthedesignofERProgramsandREDD+strategypreparation.
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7.1. Financial Overview of the Facility
CommittedfundstotheReadinessFundandtheCarbonFundoftheFCPFattheendofFY15totalalmost$829million,with$373millioncommittedtotheReadinessFundand$456millioncommittedtotheCarbonFund(seeTables6and12).Bothfundsarewell-resourcedwithcommittedfundingmorethanadequatelycoveringcurrentfundingneeds. FundbalancesattheendofFY15total$723million,madeupof$276millionintheReadinessFundand$447millionintheCarbonFund,withcashbalancesof$227millionintheReadinessFundand$351millionintheCarbonFund(seeTables5and11). ThevalueofgrantallocationstoREDD+CountriesattheendofFY15was$211million(Table10)whilstsignedGrantAgreementsrepresentfirmcommitmentsofover$143million.GrantdisbursementsfromtheReadinessFundhavecontinuedtoacceleratesuchthatattheendofFY15theywere$61million,includingtransferstoDeliveryPartnersotherthantheWorldBankforonwardtransfertoREDD+Countriesof$26.6million(Table5).ThatendofFY15figureequatestoanearly50percentincreaseofthecumulativegrantdisbursementfigureinasinglefiscalyear.
7.2. The Readiness Fund
7.2.1. Fund Balance
Table5showsthesummaryfinancialstatementforthefundfromtheopeningofthefundtotheendofFY15.TheReadinessFundbalanceattheendofFY15isahealthy$276million,withacashbalanceof$227million.Thedifferenceof$49millionisrepresentedbyoutstandingcontributionsfromtheEuropeanCommissionandNorwayasshowninTable6. TotalDonorContributionsreceivedtodateare$324million.Investmentincomeof$9.9millionbringsthetotalreceiptstodatetonearly$334million.TotaldisbursementstotheendofFY15arenearly$107millionandconsistof$45.7millionincashdisbursements,$34.4millioningrantstoREDD+countries,and$26.6millionindisbursementstoDeliveryPartnersforReadinessGrantstocountries. TotalnewfundsintotheaccountduringFY15amountedtoabout$29million,madeupofdonorcontributionsof$27million
(seeTable6)andinvestmentincomeof$2millionearnedontheaccountbalance.TotaldisbursementsonacashbasisduringFY15were$27million,madeupofcashexpendituresof$6.9million,grantdisbursementsofapproximately$16.4million,anddisbursementstoDeliveryPartnersforgrantsof$3.8million.
7.2.2. Funding Sources
a)DonorContributions
Table6presentsthecommittedcontributionstotheReadinessFundasattheendofFY15.ThefundcontinuedtogrowinfinancialtermsduringFY15,withtotalcontributionsof$373millionattheendofFY15comparedtoatotalasattheendofFY14of$357million.TheadditionalcommitmentfromGermanyduringFY15ofalmost$24millionrepresentsagoodportionofthisincrease.Howeverthisgainwasoffsetslightlybyunfavorableexchangeratesaffectingoutstandingcontributions. Intermsofcash,theReadinessFundreceiveddonorcontributionsof$27millionoverthepastyear.Thiswasmadeupof$23.8millionfromGermany,and$3.2millionfromFinland.ThisbroughtthetotalcashcontributionstotheendofFY15to$323.6million.Thisleavesoutstandingcontributionsof$49millionfromexistingsignedagreementstobepaidbyNorway($47.8million)andtheEuropeanCommission($1.1million)intotheReadinessFundinthecomingyears.Theseoutstandingcontributionsrepresentagreedphasedcontributionsspreadoutoveranumberofyears.
b)InvestmentIncome
Table5showsInvestmentIncomefiguresoverthelifeofthefund.Amountspaidintothetrustfund,butnotyetdisbursed(thefundbalance),aremanagedbytheInternationalBankforReconstructionandDevelopment(IBRD),whichmaintainsapooledinvestmentportfolio(thePool)forallofthetrustfundsadministeredbytheWorldBankGroup.BecauseallParticipationAgreementswithCarbonFundParticipantsindicatethatanyinterestgeneratedbyprepaidcontributionsshallbechanneledtotheReadinessFund,theReadinessFundreceivesanallocatedshareofinvestmentincomefromthisPoolwhichconsistsofinterestforboththeReadinessFundandtheCarbonFund.Thetotalinvestmentincomedepositedintothe
Term of Carbon Fund
extended to
2025
FY15FinancialReportoftheFacility 7ThevalueofgrantallocationstoREDD+CountriesattheendofFY15wasabout$211millionwhilstsignedgrantagreementsrepresentfirmcommitmentofover$143million.
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ReadinessFund(ontheReadinessandCarbonFundbalance)uptotheendofFY15was$9.9million.DuringFY15,investmentincomeonthecombinedReadinessandCarbonFundbalances
amountingto$2.0millionhasbeencreditedtotheReadinessFund.
Table 5: FCPF Readiness Fund Summary Financial Statement FY15 (in $ thousands)
Description Total FY15 FY14 FY13 FY12 FY11 FY10 FY09
Beginning Balance 224,870 195,830 189,999 165,804 77,695 50,945
DonorContributions 323,631 27,014 54,004 30,009 31,538 94,880 32,290 53,895
InvestmentIncome 7,889 2,008 1,960 897 924 732 821 547
InvestmentIncome(transferredfromtheCarbonFund)
2,023 2,023
Total Receipts 333,543 29,022 57,987 30,906 32,462 95,612 33,111 54,442
CashDisbursements 45,742 6,914 9,373 8,752 5,383 6,421 5,402 3,497
GrantDisbursements* 34,400 16,380 8,173 4,923 2,884 1,082 959
DisbursementstotheDPsforGrants 26,600 3,800 11,400 11,400
Total Disbursements 106,742 27,093 28,946 25,075 8,267 7,503 6,361 3,497
Fund Balance (cash) 226,801 226,801 224,870 195,830 189,999 165,804 77,695 50,945
plusOutstandingContributions 48,934
275,735
Fund Balance
Table 6: FCPF Readiness Fund Donor Contributions as of end of FY15 (in $ thousands)
Participant Name Total Outstanding* FY15 FY14 FY13 FY12 FY11 FY10 FY09
Australia 23,892 6,330 7,997 9,565
Canada 41,360 41,360
Denmark 5,800 5,800
EuropeanCommission 5,172 1,120 1,364 2,688
Finland 23,196 3,230 5,261 5,749 8,956
France 10,340 5,136 592 4,612
Germany 76,766 23,784 13,913 13,113 25,956
Italy 5,000 5,000
Japan 14,000 4,000 5,000 5,000
Netherlands 20,270 7,635 7,635 5,000
Norway 116,740 47,814 38,727 8,801 16,398 5,000
Spain 7,048 7,048
Switzerland 8,214 8,214
UnitedKingdom 5,766 5,766
UnitedStatesofAmerica 9,000 4,000 4,500 500
Committed Funding 372,565 48,934 27,014 54,004 30,009 31,538 94,880 32,290 53,895
7.2.3. Funding Uses
a)CashDisbursements
Cashdisbursementsrepresentallnon-grantdisbursementsandtotal$45.7millionfromtheopeningofthefundtotheendofFY15.Table7showstheannualexpendituresbyactivity,whilstTable8comparestheapprovedbudgetwiththeactualexpendituresbyactivityforFY15. AstheFCPFcontinuesprogressongrantimplementation,annualexpenditureshavepredictablyincreasedinareaswithafocusoncountrysupport.ThisisthecasefortheREDDMethodologySupport,CountryAdvisoryServicesandCountryImplementationSupportactivities.Totalcashdisbursementsforthesecountryfocusedactivitiesoverthelifetimeofthefundrepresent75percentofcashdisbursements,whilstadministrativecostsrepresentundersixpercentoftotalcashdisbursements.Combined,thecashdisbursementsforthesecountryfocusedactivitiesof$34.2millionwiththegrantdisbursementsof$34.4millionandthedisbursementstoDeliveryPartnersforgrantsof$26.6million,thesecountryfocuseddisbursementsrepresent89percentoftotaldisbursementsof$106.8million.AdministrativeandSecretariatcosts(whichincludethecostofallParticipantsCommittee(PC)andParticipantsAssembly(PA)meetings,includingtravelcostsforREDD+countryparticipantsandsomeobservers)overthelifetimeofthefundof$13.2millionrepresentjust12percentoftotaldisbursementsof$106.8million,whilstadministrativecostsalonerepresentlessthanthreepercentoftotaldisbursements.RefertoTables5and7fordetails. TheFY15budgetfortheReadinessFundnetofSharedCostsof$10.3millioncomparestothetotalReadinessFundexpendituresfortheyearof$6.9million(seeTable8).Thefiscalyearthereforeclosedwithspendingat67percentofbudgetandanunderspendofover$3.4million. ExpendituresonReadinessTrustFundAdministrationcostswere80percentofbudget.TheseadministrativecostsreflecttheworkofallWorldBankstaffinvolvedinfundmanagement,
contributionsmanagement,accounting,specificlegaloperationsrelatedtothefacilityasawhole,andotherservicesrequiredbytheReadinessFundTrustee,includingmakingthearrangementsfortheMonitoringandEvaluationFrameworkfortheFCPF.Theselowerthananticipatedexpensesreflecttheteam’sgainingefficienciesasstabilitygrowsaroundkeyroutinetasks. FCPFSecretariatexpenseswere$1.3million,or76percentoftheactivitybudgetof$1.7million.Expendituresincludedthestandardcostsforprogrammanagement,organizationoftheannualPAandPCmeetings,andtravelcostsforREDD+countriesandsomeobserverstothosemeetings.Increasingly,knowledgeandlearningeventsonREDD+andotherkeypartnermeetings(e.g.,theUN-REDDProgrammeorREDD+Partnership)arejointlyorganizedtomaximizetheuseofparticipanttime.FCPFSecretariatcostsincludethecostsofhostingandmaintainingtheFCPFwebsite,communicationstoFCPFstakeholders,andtranslationofFCPFmaterials.Partofthe$400,000underrunisduetoavideocommunicationsprojectthatwasputonholdaswellaslowertranslationcostsduetofewerthananticipatedlargetechnicaldocuments(R-Packages)requiringthatcostlyservice. WiththebudgetforREDDMethodologySupportactivitiessetatalmost$1.3millionforFY15,andtotalexpendituresat$1.1million,spendingwas85percentofFY15plans.CostsreflectthelowTechnicalAdvisorySupport(TAP)expenses(consultingcontracts,travel,andmeetingcosts)againduetofewerthananticipatedR-PackagescomingtotheParticipantsCommitteerequiringreview.Theunderspendof$186,000isalsoduetodelaysintheREDD+ProgramCostAssessmentwork,whichhasbeenbudgetedforandwillbecompletedinFY16. TheexpensesrecordedforCountryAdvisoryServicescametoabout$1.9million,orabout92percentofthe$2.1millionoriginallybudgetedinFY15.ThemajorityofthesecostscamefromFacilityManagementTeam(FMT),forestry,andsocialdevelopmentstaffadviceandguidancetoREDD+countrieson
Table 7: FCPF Readiness Fund Cash Disbursements (in $ thousands)
Activity % of Total Total FY15 FY14 FY13 FY12 FY11 FY10 FY09
ReadinessTrustFundAdministration 6% 2,683 327 397 404 356 366 362 471
FCPFSecretariat 23% 10,555 1,299 1,515 1,690 2,056 1,685 1,321 989
REDDMethodologySupport 21% 9,722 1,071 1,796 1,842 999 1,921 1,266 827
CountryAdvisoryServices 20% 9,185 1,881 2,342 1,750 1,073 545 793 801
CountryImplementationSupport 33% 15,293 2,676 3,730 3,213 1,701 1,904 1,660 409
IPandCSOProgram 6% 2,587 480 751 1,089 267
TotalReadinessFund(includingCarbonFundSharedCosts) 50,027 7,735 10,532 9,988 6,452 6,421 5,402 3,497
LessCarbonFundSharedCosts -9% (4,285) (821) (1,159) (1,236) (1,069)
Total Readiness Fund 100% 45,742 6,914 9,373 8,752 5,383 6,421 5,402 3,497
*Includes$599,694ofBank-executedgrantdisbursements(FY15$6,159).
*Amountsmayvaryduetoexchangeratefluctuations.
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theirprograms.ExpendituresinFY15includedspecificworkonGovernanceandGrievanceRedressMechanismsaswellasSESAandESMFRiskManagement. CostsforCountryImplementationSupporttotaled$2.7million,or69percentoftheplannedbudget.ThisspendingcoversthedirectassistanceofDeliveryPartnercountryteamstoREDD+countries,includingtechnicalassistance,grantsupervision,andassessmentsprovidedtothePC. Overall,thelargestshare($1.6million)oftheReadinessFundunderspendcontinuestobeduetodelaysinimplementingthenewCapacityBuildingProgramforIndigenousPeoples,CivilSocietyOrganizationsandotherforestdwellers(theIPandCSOProgram).TheprincipalreasonforthesedelaysisthechangetoanewprocessandstructurewherebyIPandCSOCommunitiesadministertheCapacityBuildingProgramthemselvesthroughsixRegionalIntermediaries(threeforIPgroupsandthreeforCSOgroups).ThebudgetforthisProgramforFY15of$2.1millionincludessupportthroughcontracts/grantsof$1.6million.Theunspentbalanceoncontracts/grantswillbecarriedovertofuturefinancialyearssincethelifeoftheprogramwasextendedtoFY17asagreedatPC17inLima,Peru.
b)SharedCosts
AspartoftheapprovaloftheReadinessFundbudget,theFCPFCharterindicatesthatthePCshallmakedecisionsonallSharedCostsforactivitiesthatcutacrossandbenefitboththeReadinessandCarbonFunds.Inpractice,theSharedCostshavetypicallyincludedFCPFSecretariatandREDD+MethodologySupportactivities,suchasthecostsoftravelandexpensesforREDD+countriestoattendtheParticipantsAssemblyandPCmeetingsandtheworkoftheTAPs. PursuanttotheCharter,theReadinessFundpays65percentandtheCarbonFundpays35percentofSharedCosts,unlessthePCdecidesotherwise.ThePCapprovedresolutionswaivingcostsharingthroughtheendofFY11(toreflectthefactthattheCarbonFundwasonlyfullyoperationalasofMay2011)andpaying100percentoftheSharedCostsfromtheReadinessFund.Inaddition,thePCagreedthatcostsharingatthe65/35levelwouldcommencefromFY12onward.However,thereisanimportantcaveatinResolutionPC/8/2011/8approvedinMarch2011,inthatthePCagreedtoalifetimecapof$12millionontheSharedCoststhatitwillchargetotheCarbonFund.ThisresolutionrespondedtotheconcernsofseveralexistingandpotentialCarbonFundParticipantsthatanupwardlimitbeplacedonsuchcostsgiventhatthePCotherwisemakesalldecisionsregardingtheircompositionandannualapprovals. SharedCoststransferredtotheCarbonFundforFY15wereabout$200,000underbudgetat$0.8million.SharedCostsoverthelifetimeoftheFacilityuptotheendofFY15areontracktoremainwellunderthelifetimecapof$12millionastheycurrentlystandat$4.3million(seeTables7and8).
c)GrantDisbursements
AnimportantaspectoftheReadinessFundisthatitmakesavailablegrantfundingtocountries—thegrantsarenowupto$3.8millionperREDD+country—insupportofcountry-ledreadinesswork.TheREDD+countriesmanageandutilizethegrantsforREDD+activitiesandexpenses.ThesearecountedasdisbursementsinWorldBankfinancialstatementsonlyaftertheREDD+countrycompletesreimbursementfromthegrantresources.BytheendofFY15,26ReadinessPreparationGrantsweredisbursing—morethandoublethefigureatendFY14.SignedFormulation,ReadinessPreparation,andAdditionalFunding(ofupto$5million)grantagreements,representfirmcommitmentsofover$143million. GrantdisbursementsfromtheReadinessFundhaveacceleratedaspredictedandattheendofFY15were$61million,includingtransferstoDeliveryPartnersotherthantheWorldBankforonwardtransfertoREDD+countriesof$26.6million(seeTable5). Grantdisbursements,excludingthosethroughDeliveryPartnersotherthantheWorldBank,totalmorethan$34.4millionattheendofFY15,acontinuedexponentialincreaseonpreviousyears.GrantsdisbursedduringFY15were$16.4million,representinganincreaseofover100percentonthepreviousyear.Ofthetotalgrantdisbursementstodateofapproximately$34.4million,morethan$20millionofthesedisbursementshavebeenmadeinAfrica.ThedetailsofthegrantdisbursementsareprovidedinTable9. Inaddition,disbursementstoDeliveryPartnersforgrantsof$26.6millionrepresentsevenReadinessPreparationGrantsof$3.8million,threeeachinFY13andFY14andonemoreinFY15.
Table 9: FCPF Readiness Fund Grant Disbursements (in $ thousands)
Description Total FY15 FY14 FY13 FY12 FY11 FY10
AFRICA
BurkinaFaso
Cameroon 1,047 476 379 134 3 55
Coted'Ivoire 728 728
DemocraticRepublicofCongo 5,732 2,202 1,161 1,381 797 14 177
Ethiopia 1,552 694 258 400 100 100
Ghana 3,386 1,204 1,270 312 400 200
Kenya 170 170
Liberia 1,458 682 289 305 107 75
Mozambique 1,849 851 911 87
RepublicofCongo 2,538 1,244 481 237 381 108 87
Togo 344 344
Uganda 1,500 1,334 (14) 140 40
AFRICA subtotal 20,304 9,760 4,749 2,856 1,567 694 679
LATIN AMERICA & CARRIBEAN
Chile 300 300
Colombia 200 66 134
CostaRica 2,446 1,431 479 375 22 139
ElSalvador 192 42 98 52
Mexico 665 665
Nicaragua 1,009 431 378 77 123
LATIN AMERICA & CARRIBEAN subtotal 4,812 2,827 899 550 241 156 139
EAST ASIA & PACIFIC
Indonesia 3,165 167 1,233 1,247 518
LaoPDR 478 305 123 50
Thailand 200 163 37
Vanuatu 313 186 106 21
Vietnam 1,586 1,085 501
EAST ASIA & PACIFIC subtotal 5,741 1,742 1,734 1,516 576 123 50
SOUTH ASIA
Bhutan 637 637
Nepal 2,906 1,414 792 500 109 91
SOUTH ASIA subtotal 3,543 2,051 792 500 109 91
Total Grant Disbursements 34,400 16,380 8,143 4,923 2,884 1,082 959
Table 8: FCPF Readiness Fund Cash Disbursements for FY15 (in $ thousands)
Activity BudgetActual
Expense Variance
Expense Rate
(%)
ReadinessTrustFundAdministration
410 327 83 80
FCPFSecretariat 1,719 1,299 420 76
REDDMethodologySupport
1,257 1,071 186 85
CountryAdvisoryServices
2,050 1,881 169 92
CountryImplementationSupport
3,880 2,676 1,204 69
IPandCSOProgram 2,065 480 1,585 23
TotalReadinessFund(includingCarbonFundSharedCosts)
11,381 7,735 3,646 68
LessCarbonFundSharedCosts
(1,042) (821) (220)
Total Readiness Fund 10,339 6,914 3,425 67
59
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7.2.4. Financial Commitments over the Longer Term
SincethetermoftheReadinessfundrunsuntilDecember31,2020,theannualbudgetsneedtofitintoalong-termfinancialplanningframeworkconsistentwithWorldBankpoliciesforthefinancialmanagementoftrustfunds.ThesepoliciesgenerallyrequirefundstobefullysetasideforcommitmentsmadebytheparticipantsaswellasformeetingthefiduciaryobligationsenteredintobytheWorldBankasTrustee. Inordertoplanresourcesoverthislonger-timehorizon,thePCissuesresolutionsfromtimetotimetoestablishfundingprioritiesandcommitmentsforthecomingyears.Thesecommitmentsareconsidered“notional”whenthePChassetasideorallocatedfinancialresourcesoftheReadinessFundthatarenotyetsignedintoformalgrantagreementsorcontracts.Theyareconvertedto”full”commitmentsoncethegrantagreements(orvendorcontracts)aresignedbyrecipientsand/orbytheWorldBankasTrusteeoftheReadinessFund,orexpendituresaremade. Asnotedearlierinthereport,fullsignedcommitmentsamounttoalmost$143million.However,therehasbeenaconsiderablyhigherlevelofnotionalgrantcommitmentsmadebytheFCPFtoREDD+countries.Table10providesamorecompletepictureofthelevelofthesenotionalcommitments,togetherwiththenecessarynotionalcommitmentstooperatethefundforitsfullterm,includingthedirectimplementationsupportcostsandassociatedcountryservicescosts. Thislong-termfinancialplanincludescommitmentsfortheoperationoftheSecretariatbytheFMTandthetrusteeroleoftheWorldBankoverthefulltermoftheReadinessFund—reflectingthefactthattheFacilityisexpectedtobefullyactivethroughthattime. Table10showsthelong-termnotionalcommitmentsorplannedusesofthefund.Thetableshowsthat,asoftheendofFY15,notionalcommitmentsoffullgrantstoall45activecountriesandtheestimatedassociatedcostsofthefundduringitslifetimeamounttonearly$280million. TotalcommittedfundingtotheReadinessFundasofJune30,2015,is$372.6million(seeTable6).ThisleveloffundingisthereforeadequatetomeetthenotionalcommitmentsoffullReadinessPreparationGrantsofupto$3.8milliontoall45activeselectedREDD+countries,togetherwiththeestimatedcostsofthefundduringitslifetime,includingtheestimatedassociatedcountryservicesforthosecountries.Fundsarealsoavailabletoprovideadditionalgrantsofupto$5millionforupto22countriesshowingsignificantprogress.
7.3. The Carbon Fund
7.3.1. Fund Balance
Table11showsthesummaryfinancialstatementforthefundfromtheopeningofthefundtotheendofFY15.TheCarbonFundbalanceattheendofFY15isahealthy$446million,withacashbalanceof$351million.Thedifferenceof$96millionisrepresentedbyoutstandingbalancesonpromissorynotes,andoutstandingcontributionsfromGermanyandtheUnitedKingdom.
TotalDonorContributionsreceivedtodateare$369.5million.TotaldisbursementstotheendofFY15are$9.1million,madeupsolelyofcashdisbursements.TheCarbonFundhasonlybeenfullyoperationalsinceMay2011,sotherearenopaymentsforemissionreductionstodate. TotalreceiptsduringFY15were$32.1million,allfromdonorcontributionsfromGermany(seeTable12). AllParticipationAgreementswithCarbonFundParticipantsindicatethatanyinterestgeneratedbyprepaidcontributionsshallbechanneledtotheReadinessFund.Forthisreason,thereisnoinvestmentincometoreportfortheCarbonFund.
Table 10: Summary of Long-Term Sources and Uses of Readiness Funding as of June 30, 2015 (in $ millions)
Explanation of which Totals
Committed Funding 372.6
Committed Uses for Funds
Commitments(grants)toREDD+countries(47@$3.8million) 178.6
Additionalgrantfundingto8Countries(CostaRica,DRG,Ghana,Indonesia,Liberia,Mexico,RepublicofCongo,andVietnam)forREDD+countriesthatdemonstratesignificantprogressonreadiness 40
LessgrantstoREDD+countrieswhodidnotsubmitR-PPsbyPC14(2@$3.8)1 (7.60)
Net Grant Commitments 211
Administrative, Operations, and Country Support 83.5
FY09–FY15Actualcosts 47.7
FY16–FY21Projectedcosts 33.8
ReserveforDeliveryPartnercapacityfordisputeresolution 2.0
Total Uses 294.5
Estimated Reserve: Committed funding less Total Uses 78.1
Proposed Commitments Per country Totals
Additionalgrantcommitmentsforthosethatdemonstratesignificantprogressonreadiness($5milliongrantplus0.3millionforsupportcostspercountryfor14 additionalcountries(totalof22countries) 5.3 74.2
Total Potential Additional Uses 74.2
Total Surplus 3.9
1.Bolivia,Gabon.
Table 11: FCPF Carbon Fund Summary Financial Statement FY15 (in $ thousands)
Description Total FY15 FY14 FY13 FY12 FY11 FY10 FY09
Beginning Balance 316,474 293,275 122,283 86,390 24,700 20,356
DonorContributions 369,503 32,108 27,280 171,866 36,912 71,800 4,181 25,356
InvestmentIncome(transferredtoReadinessFund)
(2,023) 901 520 256 346
Total Receipts 369,503 32,108 25,257 172,767 37,432 72,056 4,527 25,356
CashDisbursements 9,109 2,846 2,058 2,117 1,539 366 183
ERPayments
Total Disbursements 9,109 2,846 2,058 2,117 1,539 366 183
lessPromissoryNotebalances (9,569) 5,089 342 (10,000) (5,000)
Fund Balance (cash) 350,826 350,826 316,474 293,275 122,283 86,390 24,700 20,356
plusOutstandingPromissoryNotes 9,569
plusOutstandingContributions 86,554
Fund Balance 446,949
Table 12: FCPF Carbon Fund Donor Contributions as of end of FY15 (in $ thousands)
Participant Name Total Outstanding* FY15 FY14 FY13 FY12 FY11 FY10 FY09
Australia 18,393 5,658 12,735
BPTechnologyVentures 5,000 5,000
Canada 5,015 5,015
EuropeanCommission 6,709 362
France 5,000 5,000 6,347
Germany 126,244 15,904 32,108 27,280 6,556 15,443 21,125 3,819 4,009
Norway 171,310 161,310 10,000
Switzerland 10,796 10,796
TheNatureConservancy 5,000 5,000
UnitedKingdom 88,590 70,650 17,940
UnitedStatesofAmerica 14,000 4,000 10,000
Committed Funding 456,057 86,554 32,108 27,280 171,866 36,912 71,800 4,181 25,356
*Amountsmayvaryduetoexchangeratefluctuations.
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7.3.2. Funding Sources
Table12presentsthecommittedandpledgedcontributionstotheCarbonFundasattheendofFY15.WhiletheFundcontinuedtoenjoygreatfinancialhealthduringFY15,exchangeratefluctuations(astrongerUSD)affectingoutstandingcontributionsfromGermanyandtheUnitedKingdomdecreasedthevalueoftotalcontributionsto$456millionattheendofthefiscalyearcomparedtoatotalasattheendofFY14of$470million. Intermsofcash,theCarbonFundreceiveddonorcontributionsof$32.1millionoverthepastyearfromGermany.ThisbroughtthetotalcashcontributionstotheendofFY15to$370million,leavingtwooutstandingcontributionsof$15.9millionand$70.7millionfromexistingsignedagreementstobepaidrespectivelybyGermanyandtheUnitedKingdomintotheCarbonFundinthecomingyears.Theseoutstandingcontributionsrepresentagreedphasedcontributionsspreadoutoveranumberofyears.
7.3.3. Funding Uses
Cashdisbursementstotal$9.1millionfromtheopeningofthefundtotheendofFY15.Table13showstheannualexpendituresbyactivity,whilstTable14comparestheapprovedbudgetwiththeactualexpendituresbyactivityforFY15. ThetotalcashdisbursementsfromtheopeningofthefundtotheendofFY15of$9.1millionaremadeupof$3.0millionadministrationcosts,$1.8millionofProgramDevelopmentcosts,and$4.3millionofSharedCosts(seeTable13). ThetotalCarbonFundexpendituresfortheyearof$2.8millioncomparestothefinalbudgetfortheCarbonFund,includingSharedCosts,of$7.2million.Thefiscalyearthereforeclosedwithspendingat40percentofbudget—anunderspendofmorethan$4.3million.RefertoTable14fordetails.
ExpendituresforCarbonFundAdministrationcostswereoverbudgetby11percent.TheseadministrativecostsreflecttheworkofallWorldBankstaffinvolvedinfundmanagement,contributionsmanagement,accounting,legal,andotherservicesrequiredbytheCarbonFundTrustee,includingashareofthecostsofthedevelopmentoftheMonitoringandEvaluationFrameworkfortheFCPF.ExtensiveworkbytheLegalteamas
Table 13: FCPF Carbon Fund Cash Disbursements (in $ thousands)
Activity Total FY15 FY14 FY13 FY12 FY11 FY10
CarbonFundAdministration
3,038 741 626 652 470 366 183
ProgramDevelopment
1,785 1,283 273 229
SharedCosts 4,285 821 1,159 1,236 1,069
Total 9,109 2,846 2,058 2,117 1,539 366 183
wellasextendedteamsupporttofinalizetheERPAGeneralConditionsaccountsforthisoverspend. ProgramDevelopmentcostswereunderspentagainstbudgetbyalmost$4.2million,makingupmostoftheCarbonFundunderspendforFY15.ThebulkoftheunderspendonProgramDevelopmentcostswasrelatedtothe$650,000allocationsmadetoprogramsenteringtheCarbonFundpipelineandsigningaLetterofIntent(LoI).ThebudgetfortheseallocationswasmadeupoftheestimatedunspentallocationtothefivecountriesthatwereinvitedtojointheCFPipelineinFY14plusfivemore$650,000allocationsforcountriesthatcouldbeinvitedinFY15.ThoseFY14inviteesareCostaRica,DRC,Ghana,MexicoandNepal.Thefiveadditional$650,000allocationswereintendedforcountriesthatwereanticipatedtopresentER-PINsinFY15,tobeapprovedonacase-by-casebasisbyCFParticipants. OfthecountriesselectedintoCarbonFundpipeline,onlythosethatsignaLetterofIntent(LoI)gainaccesstothe$650,000allocationsforER-PDdevelopment.AsoftheendofFY15,oftheelevencountriesselectedintothepipelineoftheCarbonFund,onlyeighthavesignedLoIs,thusreleasingthe$650,000ofER-PDDevelopmentfunds.Ofthe$4.5millionbudgetedfortheseallocationsinFY15,onlyabout$740,000wasspentinFY15,representinganunderspendofapproximately$3.8million. Asexplainedearlier,SharedCostsaredirectlyrelatedtotheReadinessFundexpensesintwokeycrosscuttingareas:FCPFSecretariatandREDDMethodologySupportcosts.TheexpenditureasaresultofspendingintheReadinessFundis$220,000belowthebudgetof$1.0million,anexpenseratioof79percent.
7.3.4. Financial Commitments over the Longer Term
DivergingfromtheReadinessFund,thelifeoftheCarbon
FundwasextendedtoDecember2025bytheCarbonFundParticipantsatCF12(ResolutionCFM/12/2015/1)toallowforminimalERPAtermsofatleast5yearsaccommodatingalongerthananticipatedprogramdesignphase.AsoutlinedintheReadinessFundsection,theannualbudgetsneedtofitintoalong-termfinancialplanningframeworkforeachfundthatisconsistentwithWorldBankpoliciesforthefinancialmanagementoftrustfunds.ThesepoliciesgenerallyrequirefundstobefullysetasideforcommitmentsmadebytheparticipantsaswellasformeetingthefiduciaryobligationsenteredintobytheWorldBankasTrustee.Thelong-termfinancialplanpresentedatCF13inWashingtoninApril2015indicatesthatnomorethan$420millionwouldbeavailableforthepurchaseofemissionreductions.
7.4. Budget Approval Process
ThebudgetsforboththeReadinessFundandtheCarbonFundarebasedontheWorldBank’sfiscalyear(beginningJuly1)andareapprovedannuallyinaccordancewiththeFCPFCharter.TheParticipantsCommittee(PC)isresponsibleforapprovaloftheannualbudgetfortheReadinessFundandtheSharedCostsoftheFacility,whilsttheparticipantsoftheCarbonFundareresponsibleforapprovaloftheannualbudgetfortheCarbonFundasaseparatetrustfund. Todate,thePChasapprovedeightbudgetsfortheReadinessFundforFY09-FY16,alongwithsomerevisionstothosebudgetsduringeachfiscalyear.FiveannualbudgetshavebeenapprovedfortheCarbonFund(FY12-FY16).InformalguidancewassoughtbytheFacilityManagementTeam(FMT)fordevelopmentalexpenditurespriortothattime(beforethefundbecamefullyoperational).
Table 14: FCPF Carbon Fund Cash Disbursements for FY15 (in $ thousands)
Activity BudgetActual
Expense VarianceExpenseRate (%)
CarbonFundAdministration
665 741 (76) 111
ProgramDevelopment
5,457 1,283 4,174 24
SharedCosts 1,042 821 220 79
Total 7,164 2,846 4,318 40
63
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FOREST CARBON PARTNERSHIP FACILITY62 FOREST CARBON PARTNERSHIP FACILITY
Specific, measurable, attainable, relevant, time-bound (SMART) indicators are measured for each impact, outcome and output in the M&E Framework.
SMART
ResultsMeasurementReportingFramework 8As FY15 is the year in which the FCPF and REDD+ Country Participants transitioned to a new reporting format, data is not consistently available to allow a quantitative analysis.
Impact/Outcome/ Output and Relevant Indicators
Expected #/Target Year
Current (as of end FY15) Traffic Light
Impact I.1. The FCPF has contributed to the design of a global regime under or outside UNFCCC that provides incentives for REDD+
Indicatorsforimpacts1.1to1.5notyetapplicable.Impactlevelindicatorswillbeassessedatthetimeoftheindependedevaluation
Seesection4forexamplesofprogress.
Impact I.2. Reduced emissions from deforestation and forest degradation from FCPF, especially CF portfolio countries
Notyetapplicable
Impact I.3. FCPF has catalyzed the creation of recognized global standards for REDD+
Notapplicabletarget
Seesection4forexamplesofprogress.
I.4. FCPF has catalyzed investment in REDD+ (CF, and grants) Notyetapplicable Seesection4forexamplesofprogress.
Impact I.5. The FCPF has generated momentum to address governance and transparency issues and policy reforms related to sustainable forest resource management and REDD+
Notyetapplicable Seesection4forexamplesofprogress.
Outcome 1. Efforts successfully undertaken by countries with FCPF support, to achieve emission reductions from deforestation and/or forest degradation, and to benefit from possible future systems of positive incentives for REDD+ (Readiness Fund)
OutcomeIndicator1.A.NumberofReadinessPackagesendorsedbyPC 2R-packagesby2014,8R-Packagesby2015,20+R-Packagesby2018
1R-package
Output1.1.ReadinessAssessmentFrameworkisagreeduponanddisseminated
Indicator1.1.Existenceofpublishedassessmentframeworkonreadinesspackage
AssessmentFrameworkpublishedfollowingPC14adoption
Completed
Output1.2.CountriesdemonstrateanadequateplantoachievepreparednessforREDD+funding
65
FY15 ANNUAL REPORT
FOREST CARBON PARTNERSHIP FACILITY64 FOREST CARBON PARTNERSHIP FACILITY
Impact/Outcome/ Output and Relevant Indicators
Expected #/Target Year
Current (as of end FY15) Traffic Light
Indicator1.2.a.NumberofR-PPsendorsedbyPC 30+R-PPsby2015
45
Indicator1.2.b.NumberofReadinessPreparationGrantagreementssigned 30+signedgrantagreementsby2015
35
Output1.3.CountriesprogressadequatelyonimplementationoftheirR-PPandGrantAgreements
Indicator1.3.a.Numberofmid-termprogressreportspresentedbycountriesthatfollowagreedreportingstandardsandarepresentedinatimelymanner
20+by2015,25+by2018
9
Indicator1.3.b.PercentageofcountriesthatareachievingplannedmilestonesaccordingtoapprovedReadinessPreparationgrant(>$3.4million)
Atleast60%ofcountrieshaveperformancethatissatisfactoryorabove
GRMsforFY15notfullyavailableattimeprint
Indicator1.3.c.Percentageofcountriesthatareoverallachievingplannedmilestonesforsubcomponent—aspercountryannualreportingscale
By2015,50%ofcountrieshaveperformance“fur-therdevelopmentrequired”in50%ofsubcomponents
66%ofcountrieshaveperformancethatissatisfactoryorabove
Indicator1.3.d.PercentageofcountrieswithadisbursementratethatisinlinewithagreedReadinessPreparationgrant(>$3.4million)disbursementplansofgrantagreement(upto10%variancewithplans)
60%(ofcountrieswithsignedgrantagreements)
9/35or26%ofcountries
Outcome 2. Selected FCPF countries demonstrate key elements (carbon accounting, programmatic elements and pricing) of performance-based payment systems for emission reductions generated from REDD+ activities with a view to ensuring equitable benefit sharing and promoting future large-scale positive incentives for REDD+ (Carbon Fund)
NotyetapplicableasnoERPAhasbeensigned
Output2.1.Standardsandpreparationsinplaceforhigh-qualityERProgramsdiscussedandendorsedbyCFParticipantsand/orPC
Indicator2.1.NumberandtypesofstandardsandmanagementtoolsdiscussedandendorsedbyCFparticipantsand/orPCforERprogramsincluding:
2.1.a.MethodologicalframeworkandPricingApproach FullydevelopeddraftbyCF7andfinalversionen-dorsedbyCF8
MFendorsedatCF8
2.1.b.Businessprocesses(ER-PIN,ERPD,ERPA) FullydevelopeddraftbyCF7andfinalversionen-dorsedbyCF8
Businessprocessdefined
Impact/Outcome/ Output and Relevant Indicators
Expected #/Target Year
Current (as of end FY15) Traffic Light
2.1.c.Legaldocuments(GeneralConditions,ERPAtermsheet) FullydefinedERPATermSheetdraftbyPC14andGeneralConditionsforERPAendorsedbyPC16
TermSheetisen-dorsedatPC14;GeneralCondi-tionsendorsedatPC18
Output2.2.CountrieshaveenteredintheportfoliooftheCF
Indicator2.2.a.NumberofearlyideasorERProgramspresentedbycountriestotheCF
10by2015 24earlyideas,11ER-PINs
Indicator2.2.b.NumberofREDDcountriesthathavesignedERPA 5by2015 0(8LOIssigned)
Output2.3.Increasedlevelsofprivatesectorinvestmentforincentivizing,testing,andsupportingup-scalingofERactivities
Indicator2.3.a.NumberofprivateparticipantsinCF 2newprivatesectorparticipantsby2014
Targetisnolongerrelevant.Newapproachforprivatesectorengagementatprogramlevel
Output2.4.ERProgramsarebeingimplementedinatimelymanner NotyetapplicableasnoERPAhasbeensigned
Outcome 3. Engagement of all stakeholders (government, CSOs, IP, private sector, delivery partners) to sustain or enhance livelihoods of local communities and to conserve biodiversity within the approach to REDD+
Indicator3.A.DesignofnationalREDDstrategies,monitoringsystemsandERProgramsaddressesindicatorsforenhancementoflivelihoodsoflocalcommunitiesandforbiodiversityconservation
AllnationalREDD+strategies,monitor-ingsystemsandERprogramsincor-porateindicatorsrelatedrelatedtobiodiversityconservationandforestcommunitylivelihooddevelopment
Seesection4forexamplesofprogress
Indicator3.B.ActualexamplesontheinherentsocialandbiodiversitybenefitsofREDD+andhowtheyareusedtoinformREDD+agendaandtoscaleupresults
InternationalREDD+agendaby2017isinformedbydocumentedresultsfromERPrograms
Seesection4forexamplesofprogress
Output3.1.EnhancedcapacityofIPsandCSOstoengageinREDD+processesatthecountrylevel
67
FY15 ANNUAL REPORT
FOREST CARBON PARTNERSHIP FACILITY66 FOREST CARBON PARTNERSHIP FACILITY
Impact/Outcome/ Output and Relevant Indicators
Expected #/Target Year
Current (as of end FY15) Traffic Light
Indicator3.1.a.(i).Numberandtypeofexamplesofin-countryREDD+actionswhereIPsandCSOsandlocalcommunitiesparticipateactively
Variousnewex-amplesexistwithstrongevidenceofIPandCSOactiveparticipationandbroadcommunitysupportinREDD+programs/readi-nessby2015
Seesection4forexamplesofprogress
Indicator3.1.a.(ii).ExamplesofresourcesmadeavailabletoenableactiveparticipationofIPs,CSOs,andlocalcommunitiesinnationalREDD+readiness
Examplesexistwithevidenceofre-sourcesbeingmadeavailablethroughnationaland/orbilateralsupporttoIPsandCSOnetworkstoenableactiveparticipationinnationalREDD+readiness
Seesection4forexamplesofprogress
Indicator3.1.b.NumberofIPandREDD+countryCSOrepresentatives(men/womenand/oryouth)thathaveparticipatedandbenefittedfromFCPForganizedworkshops/trainingsonSESA,governance,MRVaspects/relatedaspectsofREDD+
Atleast20menand20womenand/or20youthreps.participatedand/ortrainedpercountry,inaminimumof15participantcoun-triesby2015
Seesection4forexamplesofprogress
Indicator3.1.c.ExamplesofIPandREDD+countryCSOrepresentationininstitutionalarrangementsforREDD+atthenationallevel
ExamplesinallREDD+ParticipantCountries,ofinsti-tutionalarrange-mentsfornationalREDD+readinesswhereIPsandCSOsarerepresented
32countries
Seesection4forexamplesofprogress
Output3.2.Pilotshavebeensuccessfullyimplementedonwaystosustainandenhancelivelihoodsandconservebiodiversity
NotyetapplicableasnoERPAhasbeensigned
Indicator3.2.a.NumberofcountrieswherestakeholderengagementplatformsproposedinRPPshavetakenupworkandmeetregularly
AllcountriesthathavesignedReadinessGrants
Seesection4forexamplesofprogress
Outcome 4. Knowledge gained in the development of the FCPF and implementation of Readiness Preparation Proposals (under the Readiness Fund) and Emission Reductions Programs (under the Carbon Fund) broadly shared, disseminated and used by international REDD+ practitioners
Indicator4.A.Numberofnewcountries/stakeholdersrequestingtobecomeFCPF:-Observers-Members
Anumberofnewrequeststobecome:-country
observers-country
members
0countriesinFY15
General Conditions for ERPA endorsed.
69
FY15 ANNUAL REPORT
FOREST CARBON PARTNERSHIP FACILITY68 FOREST CARBON PARTNERSHIP FACILITY
Impact/Outcome/ Output and Relevant Indicators
Expected #/Target Year
Current (as of end FY15) Traffic Light
Indicator4.B.Examplesofutilizationof/orreferencetoFCPFknowledgeproducts Anincreasingnumberofex-amplesexistby2015andremainsstableafterwardsuntil2020
Seesection4forexamplesofprogress
Output4.1.KnowledgeproductsandlessonsfrompilotingofREDD+ingeneralandFCPFactivitiesinparticulararedevelopedanddisseminated,inaccordancewithglobalknowledgemanagementandcommunicationstrategyandannualworkplans
Seesection4forexamplesofprogress
Output4.2.ParticipantsactivelyengageinSouth-southlearningactivities ShiftinFY14tofocusoncountry-tailoredsupport
Output4.3.StrongvisibilityofREDD+andFCPFisachieved
4.3.a.Numberofneutral/positivementionsofFCPFandREDD+issuesindifferentkeymediaworldwideperXperiod
Increaseinneutralandpositivemen-tionsworldwide—TBDinworkplans
Yes
4.3.b.NumberofnegativementionsofFCPFandREDD+issuesindifferentkeymediaworldwideperyear
Decreaseofnegativementionsworldwide
ImprovementsonFY14
The cornerstone for success on REDD+
and low-carbon land use will be ownership at the highest political level.
70 FOREST CARBON PARTNERSHIP FACILITY
Acknowledgments
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DesignbyCorporateVisions,Inc.
The World Bank1818 H Street, NWWashington, DC 20433, USA
www.forestcarbonpartnership.org