Mid-term report &

request for additional funding Costa Rica

Forest Carbon Partnership Facility (FCPF)

July 2, 2014

• Costa Rica has high expectations to generate options for climate change mitigation & adaptation

• Forest sector is key in C-neutrality national goal (Domestic C market established) and fully embedded in the national Climate Change Strategy

• REDD+ seeks to strengthen program of payments for environmental services (PES) and strengthen cross- institutional coordination and political guidance

• REDD+ intends to support local economies, maximize co-benefits and store C in long-lasting wood products

• Costa Rica to implement REDD+ in a context of financial sustainability and within a landscape restoration strategy towards a green and inclusive development and poverty eradication

REDD+ in Costa Rica

Progress on R-PP

Overall progress

R-PP Sub- component Progress

1a: National REDD+ management arrangements

1b: Organization, Consultation, and Outreach

2a: Assessment of Land Use, Forest Policy, and Governance

2b: REDD+ Strategy Options

2c: REDD+ Implementation Framework

2d: Strategic Environmental and Social Assessment

3: Reference emission level

4a: National Forest Monitoring System

4b: Information System for Multiple Benefits, Other Impacts, Governance, and Safeguards

Progress on R-PP

• National arrangements for REDD+. Key governance structures established and active (Executive Committee, Inter-institutional Committee)

• Organization and consultation. 3-phased approach to REDD+ Participation and Consultation

Information

• Continuous throughout readiness phase

• Main tool participative Communication Strategy

• Cultural Mediators Program developed

Pre - Consultation

• SESA work plan developed • Risk analysis of strategic options • Main risks address by more

inclusive new PES modalities

Consultation

• To include feedback from previous phases into a final REDD+ strategy

• To start in first quarter of 2015

• Organization and consultation. Early dialogue established with Ombudsman’s Office to serve as observer for consultation in indigenous territories.

• Grievance Redress Mechanism. Designed completed, pilot to start in August ’14.

• Land use change. Assessment for 1990-2013 to derive sound reference level.

• Strategic options. Analysis of risks to draft policy options to support implementation plans & budgets.

• Implementation framework. New PES modalities to be developed for indigenous territories and small land-holders.

Progress on R-PP

•Implementation framework. Assessment

of VCS JNR for additional crediting & allow

nested projects.

•Monitoring. National Forest Inventory at

80%, Rapid-Eye national map completed.

•Monitoring. Work plan with FAO to

integrate AFOLU accounting (REDD+ and

NAMAs in national GHG inventory).

•REDD+ financing plan. To be updated in

Aug ’14, funding approved.

•Monitoring & Evaluation. Updated with

FCPF in Mar ’14.

Progress on R-PP

• Multiple benefit/safeguard information system. Safeguard information system design completed; 15 indicators defined with methodological description. Conceptual framework for relation with SESA & ESFM:

Progress on R-PP

Draft REDD+ strategy

Final REDD+ strategy

REDD+ implementation

Development of Strategic

options

Consulted Strategic options

Areas & measures of

implementation

SESA during

pre-consultation

ESMF to inform SIS

Safeguard instruments developed

Readiness fund

Readiness fund

300,000

600,000

900,000

1,200,000

1,500,000

Organization &Consultation

REDD+ Strategy Reference level MRV & SIS

USD Committed 2,127,188

USD Disbursed 684,414

59%

Road to R-package

Road to R-Package

•New Monitoring and Evaluation Framework for REDD+ readiness available (joint work with FCPF)

•53 activities (“milestones”) defined to comply with R-package requirements

•Stakeholder auto-evaluation for R-package in line with national consultation with Executive Committee

Completed

20%

Developing 24% Continu

ous 8%

In admin

process 48%

Milestones defined on March 2014 To be completed before PC19

Timeline

PC17 PC19 CF

MTR R-

package ER-

program

ERPA negotiation

2014 2015

Set ‘14

Sustainable REDD+ and

request for funding

Integrated approach for

Sustainable REDD+

REDD+

implemen-

tation

Goods

Services Co-benefits

Jobs

Water

Adaptation

Biodiversity

Scenic beauty

Improved livelihoods

Un-defined

financing

Market

Intl’

Bi-, multi-

lateral

funds

National Domestic market Private sector

Carbon

Fund

VCS JNR

(available)

Business models

& plans

Integrated approach for

Sustainable REDD+

REDD+

implemen-

tation

Goods

Services

Business

opportuni-

ties

Short-term

Long-term

Agriculture Livestock

Timber

products Construction

Furniture

Bioenergy

PMR

t CO2e

Integrated approach for

Sustainable REDD+

REDD+

implemen-

tation

REDD+

finance

Cost>Price

Price>Cost

NAMAs

High yielding

commodities Other

approaches

PES

Intensive

Agriculture- forest

landscapes

Biodiversity hotspots

Biological corridors

Water production

areas

Low human

development index

areas

Landscape

restoration

strategy

R-PP component

Funds requested

(USD) Main activities Goals

Organization & Consultation

1,490,000

• REDD+ Secretariat • Include indigenous women

in benefit sharing • Local consultation processes

• Increased capacity in FONAFIFO to implement REDD+

• Smooth transition from readiness to full implementation

REDD+ Strategy 1,690,000

• Legal support to sectors • Business models for forest

management • REDD+ registry within C-

neutrality

• Ways to sustainable implement REDD+

• More inclusive benefit sharing mechanisms

• Improved National Forestry Plan

National Forest Monitoring System

1,270,000

• Development of Tier 3 methods

• Production & monitoring plans in indigenous communities

• Tools for predicting forest production in indigenous territories & famers

• Improved MRV & reduced uncertainty

Total 4,450,000

Thank you!

REDD+ Costa Rica

www.reddcr.go.cr