Download - Fcpf Update
Forest Carbon Partnership Facility
August 28, 2009
Update
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1. General Presentation on REDD
What is REDD?
• “Reducing Emissions from Deforestation and Forest Degradation in Developing Countries”
• Attempt to recognize role of forests in climate change mitigation– Forests are needed to achieve +2°C
objective– 20% of the problem 20% of the
solution?
• Discussed in UNFCCC negotiations as part of ‘post-2012’ climate regime– Excluded from Clean Development
Mechanism– Allowed for Annex I countries and
under Joint Implementation– No forest activities in the EU
Emissions Trading Scheme
Following traditional development paths, most countries lose most of their native forests
Following traditional development paths, most countries lose most of their native forests
North Amazon Basin
South Amazon BasinEurope
North America
North East AsiaSouth Asia
Time
Nati
on
al fo
rest
co
ver
Atlantic forest
South East Asia
Oceania
West Africa
Source: Zarin, 2009
Forest Transition Curve
Congo Basin
REDD can form a bridge on forest transition curveREDD can form a bridge on forest transition curveN
ati
on
al fo
rest
cover
Time
Forest transition path
REDD bridgeREDD bridge
Source: Zarin, 2009
REDD: National or Sub-national?
• For the bridge to be built, REDD should be at the heart of national development policy– REDD is not a substitute for development
policies
• Other reasons REDD should be handled at the national level– Projects may not achieve necessary scale– Leakage from projects– Benefit-sharing mechanisms may be necessary
• REDD implementation may have to start at sub-national level to gain experience and before sufficient financing is available
REDD or ‘REDD plus’?
• Bali Action Plan calls for “policy approaches and positive incentives on issues relating to reducing emissions from deforestation and forest degradation in developing countries; and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries”.
• A broader definition of REDD adds methodological and financial issues, but removes perverse incentives– Limiting financial
compensation to reduced deforestation/degradation may discourage early action
Maintenance
Capacity, Reforms & Investments
ReadinessFCPF Readiness Fund, UN-REDD, CBFF, GEF, ODA
IDA/IBDR, FIP, UN-REDD, CBFF, GEF, ODA, AAU set-aside, REDD Bonds (?)
FCPF Carbon Fund, Norway, GFCM (?), carbon market (?)
• Diagnostic• Reference Scenario• REDD Strategy• Monitoring System
• Institution strengthening• Forest governance and information• Sustainable forest management• Investments outside forest sector
• Payments• Performance-based
The Three Phases of REDD
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2. The Forest Carbon Partnership Facility (FCPF)
FCPF = A Partnership to Make REDD Happen
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Two Mechanisms
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Readiness Mechanism
READINESS FUND
Capacity Building
(2008-2012)
Carbon Finance
Mechanism
CARBONFUND
Payments for Emission
Reductions(2010-?)
Target ~$185 millionAvailable $110 million
Target ~$200 millionAvailable $51 million
CARBON FUND CARBON FUND
PARTICIPANTSPARTICIPANTS
1.1.European CommissionEuropean Commission2.2.GermanyGermany3.3.NorwayNorway4.4.The Nature The Nature ConservancyConservancy5.5.United KingdomUnited Kingdom
DONOR DONOR
PARTICIPANTSPARTICIPANTS
1.1.AFDAFD2.2.AustraliaAustralia3.3.FinlandFinland4.4.JapanJapan5.5.NetherlandsNetherlands6.6.NorwayNorway7.7.SpainSpain8.8.SwitzerlandSwitzerland9.9.United KingdomUnited Kingdom10.10.United StatesUnited States
Financial Contributors to the FCPF
37 REDD Country Participants Selected
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FCPF Governance
Participants Committee (PC)Participants Committee (PC)
Facility Management Team(Bank)
Facility Management Team(Bank)
Technical Advisory Panels
Technical Advisory Panels
Carbon Fund Participants Committee
Carbon Fund Participants Committee
Participants AssemblyParticipants Assembly All Eligible REDD Countries, Donors and Buyers
- Forum for exchange of information- Meets at least annually - Opportunity for ‘subgroups’ to meet and discuss experiences, elect their representatives
Primary decision making body, including all policy issues
Decision making on specific carbon transactions
ObserversObservers
ReadinessFund
(Bank as Trustee)
CarbonFund
(Bank as Trustee)
Bank facilitates partnership and ensures compliance with Policies (incl. Safeguards)
REDD REDD COUNTRIESCOUNTRIES
BoliviaBoliviaCosta RicaCosta RicaDRCDRCGabonGabonGhanaGhanaGuyanaGuyanaMadagascarMadagascarNepalNepalPanamaPanamaVietnamVietnam
CONTRIBUTORSCONTRIBUTORS
AFDAFDAustraliaAustraliaGermanyGermanyJapanJapanNetherlandsNetherlandsNorwayNorwaySwitzerlandSwitzerlandTNCTNCUnited KingdomUnited KingdomUnited StatesUnited States
OBSERVERSOBSERVERSForest-Dependent Peoples, Private sector, International Forest-Dependent Peoples, Private sector, International
Organizations, NGOs, Organizations, NGOs, UNFCCC Secretariat, UN-REDD ProgrammeUNFCCC Secretariat, UN-REDD Programme
Composition of First Participants Committee (Oct.08-Oct.09)
Carbon Funds
$2.3 billion*
Climate Investment Funds
~ $6 billion
BioCarbon Fund
(BioCF)
$90 million
Forest Carbon Partnership Facility
(FCPF)
Target= $385 million**
Forest Invesment Program
(FIP)
Target= $500 million?
* $2.6 billion if FCPF is included** $185 m Readiness Fund + $200 m Carbon Fund. Only Readiness Fund operational ($107 million)
Growing Forests Partnership (GFP)
$15 million
Forests and Climate Change:World Bank-Managed Instruments
• BioCarbon Fund (BioCF, operational since 2004)– Demonstrate carbon finance mechanisms for reforestation,
forest protection and agriculture
• Forest Carbon Partnership Facility (FCPF, since 2008) – Build readiness for Reducing Emissions from Deforestation and
Forest Degradation (REDD)– Pilot performance-based payments
• Forest Investment Program (FIP, under design)– Pilot investment models for REDD
• Growing Forests Partnerships (GFP, since 2008)– Empower local stakeholders to engage in local, national and
global processes on forests
and, of course, the IDA and IBRD operations on forests & NRM
Forests and Climate Change:World Bank-Managed Partnerships
FCPF: The Big Picture
• Pioneered REDD readiness preparation process
• Countries actively preparing for readiness
• Due to high demand, REDD Country participation increased from 0 to 20 to 37
• 37 REDD Country Participants
• 10 Donor Participants
• 5 Carbon Fund Participants
• 6 Observers
• Others• Brazil (South-South cooperation)• Global Environment Facility• World Bank Institute• Technical assistance service
providers18
Established collaborative partnership & transparent platform for meaningful
exchanges on REDD issues
Readiness Organization
• What does it mean to ‘do REDD’?
• Created templates/processes to facilitate Readiness:– Process of country submissions and reviews:
• Readiness Plan Idea Note (R-PIN)
• Readiness Preparation Proposal (R-PP)
• Readiness Package (R-Package)
– Reviews by • Technical Advisory Panel
• World Bank team
• Participants Committee + Observers
– Application of environmental and social due diligence framework
• Strategic Environmental and Social Assessment (SESA)
– Consultation and Participation guidance 19
Launched Indigenous Peoples Capacity Building Program
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Advanced Partnership with UN-REDD Programme
• Formal agreement to cooperate approved by PC Oct. 2008
• Joint missions– DRC (2), Indonesia (2), Panama (2), PNG, Vietnam
• Joint presentations/discussions– CoP14– Norwegian Parliament– Council on Forestry– Informal Working Group on Interim Finance for REDD
• Progress in harmonizing processes– R-Plan/R-PP and NJP– Guidance on consultation and participation– Common Roster of Experts– Cooperation on MRV guidance
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Next Meetings
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• October 26-28/29, 2009 (Washington)• Participants Assembly• Participants Committee 4
• March 2010 (Gabon)• Participants Committee 5
• June 2010 (?)• Participants Committee 6
FCPF and the UNFCCC
• FCPF must help, not harm the political process– Cannot prejudge financial or methodological outcomes– Tests and informs
• Demonstration activity on REDD (Bali Action Plan)
• Mentioned in the negotiations text [bracketed]
• Post-Copenhagen: if REDD is included, what will be the role of the FCPF?– Continue as a pilot?– Expand to other implementing agencies (like GEF or CIFs)– Morph into one of the global mechanisms?– Role of the UNFCCC vs. the Bank’s Board of Executive
Directors?
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The FCPF and the UNFCCC
THANK YOU
www.forestcarbonpartnership.org
www.carbonfinance.org
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