Forest Investment Program Status of FIP Operations Andrea Kutter - - PowerPoint PPT Presentation

Forest Investment Program

Status of FIP Operations

Andrea Kutter

• Sr. Program Coordinator

CIF Administrative Unit

Structure and Funding

2

FIP in the Context of the Phased Approach

Readiness/National Strategies (Bilaterals, GEF, government, FCPF RF, UN-REDD, …) Implementation (Amazon Fund, bilaterals, CBFF, GEF, FIP, government, multilaterals, private sector, UN- REDD, …) Results-based payments (Bilaterals, FCPF CF, government, BioCF, CDM, …)

Structure and Funding

3

State of Program

6 4 14 Funding approved by FIP Sub-Committee and project approved by MDB Funding approved by FIP Sub-Committee and project being processed for MDB approval Under development for submission to the FIP Sub-Committee

 USD 640 million  Five MDBs  All 8 investment plans endorsed: Brazil, Burkina Faso,

DRC, Ghana, Indonesia, Lao PDR, Mexico, Peru

 solid and active pipeline with 24 projects and programs

Structure and Funding

4

Portfolio Trends

Indicative Allocation and FIP Funding Approvals by FIP Pilot (USD Millions)

• 10.00

20.00 30.00 40.00 50.00 60.00 70.00 80.00 Brazil Burkina Faso DRC Ghana Indonesia Lao PDR Mexico Peru Indicative Allocations Approved FIP Funding

Structure and Funding

5

Drivers and Sectoral Focus

2 4 6 8 10 12 14

Timber logging Agriculture (slash and burn) Livestock grazing in forest Fuelwood charcoal Agriculture (commercial) Uncontrolled fires Urban Expansion

Drivers of Deforestation

257.94 105.84 25.8 13.33 10.72 3.3 3 50 100 150 200 250 300

Capacity Building/Institutional Strengthening and Governance Reform Landscape Approaches Forest Monitoring/MRV Sustainable Forest Management Agriculture/Food Security Agroforestry Indigenous Peoples and Local Communities

FIP Funding by Sector

Number of projects

Structure and Funding

6

Private Sector in the FIP

82.02 41.30

• 50.00

100.00 150.00 200.00 250.00 300.00 350.00 Public Private

• Set-Aside: USD 56 million in near-zero

interest credits to engage the private sector in REDD+

• 11 proposals received from Burkina Faso,

Brazil, Ghana, Mexico and one regional proposal (Africa) Endorsed concepts:

• Brazil: Macauba palm oil in silvicultural system,

(IDB) – USD 3M;

• Brazil: Commercial reforestation of modified lands

in Cerrado, (IFC) – USD 15M;

• Burkina Faso: Climate change mitigation and

poverty reduction through the development of the cashew sector, (AfDB) – USD 4M;

• Ghana: Public-private partnership for restoration of

degraded forest reserve through VCS and FSC certified plantations, (AfDB) – USD 10.3M; and

• Mexico: Guaranteed fund for financing low carbon

forestry investments, (IDB) – USD 3M.

Structure and Funding

7

FIP Dedicated Grant Mechanism for Indigenous Peoples and Local Communities

• Framework Operational Guidelines for the DGM finalized
• Competitive process for selection the Global Executing Agency initiated in June

2013: Announcement of the GEA soon to follow

• 7 of 8 pilots have selected WB to lead DGM and Mexico is undergoing

consultations to determine lead MDB

• Much progress in countries in terms of consultations;
• Expected submission date for global component and two country components:

01/2014

• Enhance web space for DGM

Structure and Funding

8

FIP Annual Monitoring and Reporting

• Common themes:
• GHG emissions reductions/enhancement of carbon stocks
• livelihood co-benefits
• Relevant co-benefit themes:
• Biodiversity and other environmental services
• Governance
• Tenure, rights, and access
• Capacity development
• Narrative:
• Theory of change
• Contribution to national REDD+ strategies and equivalents
• Bilateral and other support
• Government's perspective on link with DGM
• Highlights and showcases

Structure and Funding

9

CIF Knowledge Product: Linking REDD+ Readiness and FIP Investments

• Review and analyze the different barriers and opportunities for

countries participating in the FIP as they relate to readiness

• Clarify the elements needed for transitioning from readiness to

implementation of REDD+ in FIP countries;

• provides evidence on link between readiness and implementation in

the eight FIP pilot countries;

• Case studies: Burkina Faso, Lao PDR and Mexico

Draft: January 2014; final report: February 2014 CIF Administrative Unit has recruited Climate Focus B.V.; literature review and preliminary analyses has been concluded and interviews are ongoing

Forest Investment Program

www.climateinvestmentfunds.org