Transcript Carbon Fund - The Forest Carbon Partnership Facility

Forest Carbon Partnership Facility
Update
August 28, 2009
1. General Presentation on REDD
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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
National forest cover
Forest Transition Curve
North Amazon Basin
Congo Basin
South Amazon Basin
Europe
North America
South East Asia
North East Asia
South Asia
West Africa
Atlantic forest
Oceania
Time
Source: Zarin, 2009
National forest cover
REDD can form a bridge on forest transition curve
REDD bridge
Forest transition path
Time
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 subnational 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
The Three Phases of REDD
• Payments
• Performance-based
Maintenance
FCPF Carbon Fund, Norway,
GFCM (?), carbon market (?)
Capacity, Reforms
& Investments
IDA/IBDR, FIP, UN-REDD,
CBFF, GEF, ODA,
AAU set-aside, REDD Bonds (?)
FCPF Readiness Fund,
UN-REDD, CBFF, GEF, ODA
Readiness
• Institution strengthening
• Forest governance
and information
• Sustainable forest
management
• Investments outside
forest sector
• Diagnostic
• Reference Scenario
• REDD Strategy
• Monitoring System
2. The Forest Carbon Partnership
Facility (FCPF)
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FCPF = A Partnership to Make REDD Happen
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Two Mechanisms
Readiness
Mechanism
READINESS
FUND
Capacity
Building
(2008-2012)
Target ~$185 million
Available $110 million
Carbon Finance
Mechanism
CARBON
FUND
Payments for
Emission
Reductions
(2010-?)
Target ~$200 million
Available $51 million
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Financial Contributors to the FCPF
DONOR
CARBON FUND
PARTICIPANTS
PARTICIPANTS
1. AFD
2. Australia
3. Finland
4. Japan
5. Netherlands
6. Norway
7. Spain
8. Switzerland
9. United Kingdom
10. United States
1.
2.
3.
4.
5.
European Commission
Germany
Norway
The Nature Conservancy
United Kingdom
37 REDD Country Participants Selected
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FCPF Governance
Participants Assembly
Technical Advisory
Panels
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
Readiness
Fund
(Bank as
Trustee)
Participants Committee (PC)
Carbon
Fund
(Bank as
Trustee)
Observers
Primary decision making body, including all
policy issues
Bank facilitates
partnership and
ensures compliance
with Policies (incl.
Safeguards)
Facility Management
Team
(Bank)
Carbon Fund
Participants
Committee
Decision making on
specific carbon
transactions
Composition of First Participants Committee (Oct.08-Oct.09)
REDD COUNTRIES
CONTRIBUTORS
Bolivia
Costa Rica
DRC
Gabon
Ghana
Guyana
Madagascar
Nepal
Panama
Vietnam
AFD
Australia
Germany
Japan
Netherlands
Norway
Switzerland
TNC
United Kingdom
United States
OBSERVERS
Forest-Dependent Peoples, Private sector, International
Organizations, NGOs,
UNFCCC Secretariat, UN-REDD Programme
Forests and Climate Change:
World Bank-Managed Instruments
Carbon
Funds
Climate Investment
Funds
$2.3 billion*
~ $6 billion
BioCarbon Fund
(BioCF)
Forest Carbon
Partnership Facility
(FCPF)
Forest Invesment
Program
(FIP)
$90 million
Target= $385 million**
Target= $500 million?
Growing Forests Partnership (GFP)
$15 million
* $2.6 billion if FCPF is included
** $185 m Readiness Fund + $200 m Carbon Fund. Only Readiness Fund operational ($107 million)
Forests and Climate Change:
World Bank-Managed Partnerships
• 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
FCPF: The Big Picture
Established collaborative partnership & transparent
platform for meaningful exchanges on REDD issues
•
•
•
Pioneered REDD readiness
preparation process
•
37 REDD Country Participants
•
10 Donor Participants
Countries actively preparing
for readiness
•
5 Carbon Fund Participants
•
6 Observers
•
Others
Due to high demand, REDD
Country participation
increased from 0 to 20 to 37
•
•
•
•
Brazil (South-South cooperation)
Global Environment Facility
World Bank Institute
Technical assistance service
providers
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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
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Launched Indigenous Peoples Capacity Building Program
 Small grants to IP organizations to build REDD capacity at
regional, national levels ($200,000 per year for 5 years).
 $181,444 committed in FY09 based on proposals received
from indigenous organizations and managed by them:

COICA (Amazonia)- organize regional workshops, produce
reference document on REDD as contribution towards Copenhagen

IPACC (Africa)- organize regional/national workshops, produce
toolkit on REDD to train trainers at country level

COONAPIP (Panama)- organize 11 workshops for info exchange,
arrive at common position on REDD & government’s proposal to FCPF
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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
• October 26-28/29, 2009 (Washington)
• Participants Assembly
• Participants Committee 4
• March 2010 (Gabon)
• Participants Committee 5
• June 2010 (?)
• Participants Committee 6
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the
UNFCCC
TheFCPF
FCPFand
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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THANK YOU
www.forestcarbonpartnership.org
www.carbonfinance.org
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