REDD+ financing: BioCarbon Fund Initiative and the Forest Carbon Partnership Facility Carbon Fund
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REDD+ FINANCING: BIOCF AND FCPF ORLD BANK CARBON FINANCE UNIT Mirko Serkovic April 2014
Transcript of REDD+ financing: BioCarbon Fund Initiative and the Forest Carbon Partnership Facility Carbon Fund
REDD+ FINANCING: BIOCF AND FCPF
WORLD BANK CARBON FINANCE UNIT
Mirko SerkovicApril 2014
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• RBF involves testing mechanisms whereby the country (or actors within the countries) would receive payments against demonstrating results towards REDD+
• These results could be: 1. Proxies to emissions reductions, such as policy reforms that create an enabling
environment to reducing deforestation or investments towards law enforcement or towards creating incentives for agriculture expansion into degraded areas (as opposed to expanding into primary forests);
2. GHG emissions reduction from deforestation verified by a third party
THE NEED FOR RESULTS-BASED FINANCING (RBF) FOR REDD+
Intermediary Indicators• XX HAs under community
management• YY HAs under conservation
agriculture• Land use plan adopted• …
Emissions Reductions• Measured against an agreed
baseline and verified by a third party
Y1
Y2
Y3
Y4
Y5
…
Y
30REDD+ sustainability and scale up
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WORLD BANK FINANCING INSTRUMENTS FOR REDD+
• Two instruments managed by the World Bank offer this type of results based financing:
Forest Carbon Partnership Facility (FCPF)• The FCPF’s Carbon Fund is designed to pilot performance-based
payments for emission reductions from REDD+ programs in a small number of FCPF countries
BioCarbon Fund (BioCF)• Through the Initiative for Sustainable Forest Landscapes (ISFL)
the BioCF promotes and rewards GHG emissions reductions from the land sector, including REDD+, more sustainable agriculture, as well as smarter land use planning and policies
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• Both instruments offer:– New incentives for sustainable land-use that contribute to sustainable
development goals – Performance-based payments for verified emission reductions– Scalable approaches through Emissions Reductions Programs– Technical assistance on REDD+– Valuable co-benefits (biodiversity, rural poverty, social, etc.)– Diversity of learning opportunities that address drivers of deforestation– Others…
SIMILARITIES
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DIFFERENCES
FCPF Carbon Fund
• $465 million for 4 large-scale programs
• Operates through 2020• Exclusively REDD+• Offers access to cutting-edge
knowledge on REDD+ through a network of other participant countries
• Experience with working towards alignment of national REDD+ frameworks
• Others…
BioCFInitiative for Sustainable
Forested Landscapes
• $300 million for 4 large-scale programs
• Operates through 2030• Integrated landscape-level
interventions (REDD+ and other land uses)
• Includes significant portion of grant funding to build the enabling environmental for ER payments
• Focused on private sector engagement, targeting commodities that lead to deforestation
• Others…
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PHASES OF REDD+
Results-based actions fully measured, reported
and verified
Implementation of national strategies, action plans + capacity
building + results-based demonstration activities
Development of national strategies, action plans
+ capacity building1- Readiness
2- Investment
3- Payments for results
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THE TIME TO ACT IS NOW - WE HAVE “THE WIND AT OUR BACK”:
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“Supply side” changes:• Increased donor interest to invest in the forest & climate nexus Additional $470m
pledged since COP19 with indications for more to come. (Interest in REDD+, Landscape Restoration, Agroforestry, Climate-Smart Agriculture)
• Increasing private sector investments (international & national)
• “Demand side” changes: • Big commitments from multi-nationals to make their supply-chains deforestation-
free. (Commodity Roundtables, Certification)• High interest from country governments to participate in emerging global forest &
climate financing mechanisms and to be part of the current “global community of practice for REDD+” (as seen in recent additions to the FCPF).
“Consumer side” changes:• Lacy Act, FLEGT, EU Timber Regulation• Public procurement
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Key features:• Implementing sustainable forest management and agroforestry as a
conservation and climate change adaptation instrument• Increasing sustainable wood production and consumption (to replace
higher GHG-emitting construction materials)• Adding value to forest lands and forest products (e.g.,timber for
building materials) to contribute to poverty• Embedded in broader national goal of carbon neutrality and poverty
reduction
FCPF EXAMPLE: COSTA RICA
Sustainable Forest Management
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BIOCF EXAMPLE: ETHIOPIA
Participatory Forest Management
Increase agricultural productivity
Improve cooking stoves / biogas
Intensified livestock management
Integrated Landscape Management
