Update on the Forest Carbon Partnership Facility Steering Committee Meeting Paris, July 9, 2008
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Transcript of Update on the Forest Carbon Partnership Facility Steering Committee Meeting Paris, July 9, 2008
Update on the
Forest Carbon Partnership Facility
Steering Committee Meeting
Paris, July 9, 2008
… Make REDD
Happen
A Partnership to …
GuidingPrinciples
Partnership Developing (“REDD”) countries have equal voting
rights with donors and CF participants on Participants Committee (10 + 10 + Observers)
Voluntary & country-driven Neutral to climate change negotiations
Capacity building Various kinds of performance-based financial
approaches will be tested Catalyst
$300 million will not save the world’s forests Private sector is needed for scaling up
National National strategies for REDD National reference scenarios Projects within national accounting approach “National” does not mean “governmental” only
Test, learn and disseminate
ReadinessFund
(Bank as Trustee)
ReadinessFund
(Bank as Trustee)
Carbon Fund
(Bank asTrustee)
Carbon Fund
(Bank asTrustee)
FCPF Governance
Participants Committee (PC)Participants Committee (PC)
Facility Management Team(Bank)
Facility Management Team(Bank)
Ad Hoc Technical Advisory Panels
Ad Hoc 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
Two Mechanisms
Readiness Mechanism
READINESS FUND
Capacity Building(2008-?)
Carbon Finance Mechanism
CARBONFUND
Payments for Emission
Reductions(2009-?)
~$100 million ~$200 million
Incentive Payments for REDD
Reforms &Investments for
REDD
REDDReadiness
FLEG, alternative livelihoods, alternative
agribusiness investments,
intensification of agriculture and cattle ranching, improved
infrastructure planning, reforestation,etc.
Reference scenario,REDD strategy,
Monitoring system
Value ≥ Cost
FCFP Readiness FundInter alia
Forest Investment FundInter alia, once operational
FCPF Carbon FundInter alia
Readiness + Investments + Payments
39 Requestsfor
Participation&
24 R-PINs
South America (7): Argentina Bolivia Colombia Ecuador Guyana Paraguay Peru
Meso America (7): Costa Rica El Salvador Guatemala Honduras Mexico Nicaragua Panama
SE Asia & Pacific (8): Indonesia Lao PDR Malaysia Papua New Guinea Philippines Thailand Vanuatu Vietnam
Africa (15): Cameroon Central African Republic Dem. Republic of Congo Ethiopia Gabon Ghana Kenya Liberia Madagascar Republic of Congo Senegal Sierra Leone Sudan Tanzania Uganda
South Asia (2): Nepal Pakistan
+ 3 Brazilian states (Acre, Amazonas, Mato Grosso)
Contributions Announced
and Formalized
as of July 9, 2008
Readiness Fund
Carbon Fund Total
Australia 11 11Denmark 5 5EC 8 8Finland 5 5AFD 6 6Germany * ‡ 5 58 63Japan ** 5 5Netherlands * 12 12 23Norway 5 5Spain 8 8Switzerland 7 7TNC 5 5UK * 15 15 30USA 5 5TOTAL 84 102 187* This is only an indicative breakdown between RF & CF** Total pledge worth USD 10 million‡ Full contribution will be available over 4 years
Steering Committee
REDD Countries
Bolivia Gabon Ghana Lao PDR Liberia Madagascar Mexico Panama Vietnam
Donors
AFD Australia Finland Japan Norway Spain Switzerland United States
(United Kingdom)
Timeline
October 2006: Start of consultations December 2007: Announcememt in Bali June 2008:
June 25: FCPF declared operational Internal and external reviews of country
submissions (Readiness Plan Idea Notes)
July 2008: July 8: Technical Advisory Panel Meeting with 18
REDD Countries to discuss R-PINs July 9-10: Steering Committee meeting to select
initial countries in Readiness Mechanism July 31: deadline for submitting R-PINs for second
round
September 2008: (September 17-19): Organizational Meeting
Reference Scenario Historical emissions
How many years and data points?
Future emissions? Adjustment coefficient applied to past
emissions? Based on national development policy?
Estimation of carbon stocks Forest inventory Test various methodologies based on
IPCC Good Practice Guidance and Guidelines
Readiness Mechanism
(1)
National REDD Strategy In the countries interested in REDD, how will emissions be
reduced? Where? When? At what cost? Economic analysis National or sub-national implementation? Policies or projects? How will investment costs be financed? Who will participate in REDD activities? How will they be able to participate? Information,
consultations, capacity building Who will be allowed to sell? Legal framework How will additional social and biodiversity benefits be
recognized? Valuation, monitoring? Sector strategies (environment, forestry, energy, transport,
etc.) are the basis for the national REDD strategy, but the focus is the resulting emission reductions
The strategy must be national Public sector Private sector Civil society Indigenous peoples
Readiness Mechanism
(2)
National Monitoring System System design + implementation National accounting of emissions Link sub-national projects with national
system National registry including
sub-national/private accounts
Readiness Mechanism
(3)
R-PIN Selection
3 chances to have R-PIN approved July 2008 (September) 2008 (January 2009)
An R-PIN not selected can be improved based on TAP and SC comments and resubmitted One TAP reviewer to check that
comments have been taken into account
Participants Committee to reconsider R-PIN
Carbon Fund:
What Would Be Created
and Paid For?
Emission Reduction (ER) generated by reducing deforestation and/or degradation
ER = all rights, titles, and interests attached to a ton of CO2e of emission reduced
ER delivered to the FCPF when verification report is received
Performance-based payments Carbon + other benefits ERs distributed to Carbon Fund
Participants through internal registry
ER Creation
High quality standards, set in accordance with • IPCC Good Practice Guidance and Guidelines• Emerging UNFCCC modalities• Guidelines from Participants Committee
Quality control & enhancement• ER Program based on REDD Strategy from “ready”
country• Selection among competing ER Programs by
Carbon Fund Participants Committee, aided by Technical Advisory Panel
• World Bank’s due diligence • Ex ante assessment by third party• Ex post verification by third party
Other Work:Economics
of REDD
3 seminars on the costs of REDD:
3rd seminar (May 27, 2008): Attended by leading economists + 60 Bank
staff + 20 visitors. Papers and presentations posted at
http://go.worldbank.org/WGOVBCRCG0 Consensus paper on different methods to
estimate costs will be produced in August
Study being launched in Peru Valuation Note for FCPF Carbon Fund
being updated Discussion on April 1, 2008 CF Price Advisory Committee
REDD Cooperation
Example of Panama:
R-PIN to FCPF Requested 8
Areas for Support
Methods Issues
in BLUE
REDD Need:Panama in R-PIN to FCPF
FCPF
UNDP, UNEP, FAO
Other Partners
1) Ensure methodology used in forest inventory allows estimating C stocks
2) Support implementation of SFM at national level
3) Assess historic emissions from deforestation and degradation: define technical requirement and how far back to assess
4) Projection of deforestation emissions into future
5) Revision of national REDD strategy: links bet. current development and REDD strategy
6) Design system to monitor emissions and emissions reductions from deforestation
7) Implement the monitoring system
8) Design of system for targeted financial incentives for REDD
THANK YOU!
For more information:
www.carbonfinance.org/fcpf