Transcript Focal Area and Cross Cutting Strategies –Sustainable Forest

Focal Area and Cross Cutting Strategies
– multilateral REDD-plus financing
program
GEF Expanded Constituency Workshop
15 to 17 February 2012
Dead Sea, Jordan
The GEF-5 SFM/REDD-plus Program
Creating multiple environmental and social
benefits through financing forests
Why are forests important for GEF?
Forests deliver multiple environmental and social benefits:
• CLIMATE CHANGE : Slowing tropical deforestation is bound
to play a much larger role in mitigating climate change.
• BIODIVERSITY: Forests harbor over 60% of all
terrestrial plant and animal species.
• LAND DEGRADATION: Forests provide
livelihoods and vital environmental services
to hundreds of millions of people.
Prior GEF investments in forests
• The GEF has been funding forest projects since its inception in 1991.
• Forests/Forest management is not a focal area. Until 2006, GEF
support for forests was therefore mainly provided through the
biodiversity and land degradation focal areas.
• In June 2007, the GEF-4 SFM Program was created, better known as
the Tropical Forest Account (TFA). The TFA reserved funds from the
Biodiversity, Climate Change, and Land Degradation focal areas for
SFM operations in the three major tropical forest blocks (Amazonia,
Congo Basin, New Guinea/Borneo).
• In total, > $400 million were invested in forests in GEF-4.
Type of forest projects under GEF-4
Under GEF-4, investments in forests were mainly single-focal area biodiversity
conservation projects, thus not emphasizing the potential multiple benefits.
5%
LD
$46 m
20%
Single Focal Area
CC
$59 m
MFA (2 Focal Areas)
MFA (3 Focal Areas)
75%
BD
$322
m
GEF-5 SFM/REDD-plus Program
 Goal: achieve multiple environmental benefits from
improved management of all types of forests.
 Funding derives from three GEF Focal Areas
(Biodiversity, Climate Change and Land Degradation)
 Separate funding envelope created outside the STAR to
provide incentive funding for interested countries
Objective 1: Reduce pressure on forest resources and generate
sustainable flows of forest ecosystem services
Potential projects:
• Forest policy, legal and regulatory framework (re)formulation;
• Forest law enforcement and government (FLEG);
• Sustainable harvesting technologies for timber and non-timber
products, forest function and management planning;
• Forest certification and verification of timber supply chains;
• Integrated forest fire management;
• Conflict resolution approaches (e.g. disputed forest tenure and use);
• Capacity building/Piloting of Payment for Ecosystem Services,
economic valuation tools.
• Industrial, agricultural and domestic technologies reducing the
pressure on forest (energy efficiency, fuel substitution);
• Increasing ecological connectivity at landscape level;
• Community and small-holder forestry
Objective 2: Strengthen the enabling environment to reduce GHG
emissions from deforestation and forest degradation (REDD+)
Potential projects:
• Competition for land use and land-use changes (e.g. land use
potential and related planning activities; trade-off analysis);
• Building of technical and institutional capacities to monitor and
reduce GHG emissions from deforestation and forest
degradation;
• Testing and adopting approaches that allow for the generation
of revenues from the carbon market.
Financing SFM/REDD-plus in GEF-5
SFM/REDD+ projects
Biodiversity
SFM/REDD+ projects
Land Degradation
SFM/REDD+ projects
$2.8 billion
GEF-5 Focal Area
Allocations to SFM/REDD+
Climate Change
I N
C
E V
$750 million
$250 million
$1.0 billion
$1 billion in total for SFM/REDD+
E
N
T
I
The GEF-5 SFM/REDD-plus incentive mechanism
• Investments from at least 2 GEF Focal Areas (BD, or LD, or
CC) → maximizing multiple benefits
• 3:1 incentive ratio (e.g. $6 million from Biodiversity and
Climate Change → $2 million from SFM/REDD+ account)
• Minimum of $2 million STAR contribution to access
incentive funding per project
• Ceiling of $30 million STAR contribution to access
incentive funding per project
• All GEF eligible countries can apply for incentive funding
Thank you