93671 Forest Carbon Partnership Facility 2013 Annual Report CONTENTS ACRONYMS 5 1. GENERAL INTRODUCTION 7 2. PROGRAM OBJECTIVES 9 3. EXECUTIVE SUMMARY 13 4. MAIN ACHIEVEMENTS AND RESULTS DURING THE PERIOD 17 4.1. Highlights 17 4.2. Progress at the Impact Level 22 4.3. Progress at the Outcome Level 26 4.4. Progress by Output 28 5. ISSUES AND CHALLENGES 47 5.1. Disbursements 47 5.2. Endorsements of the ARPA General Conditions 47 5.3. Country-Level M&E Frameworks and Readiness Reporting 48 5.4. Private Sector Engagement 49 6. MONITORING OF ASSUMPTIONS AND RISK 51 7. FY13 FINANCIAL REPORT OF THE FACILITY 55 7.1. Budget Approval Process 55 7.2. The Readiness Fund 55 7.3. The Carbon Fund 60 8. RESULTS MEASUREMENT REPORTING FRAMEWORK 65 THE FOREST CARBON PARTNERSHIP FACILITY Demonstrating activities that reduce emissions from deforestation and forest degradation Acronyms CF Carbon Fund C&I Criteria and Indicators COP Conference of the Parties (to the UNFCCC) CRGE Climate-Resilient Green Economy CSO Civil Society Organization DP Delivery Partner DRC Democratic Republic of Congo ER Emission Reductions ERPA Emission Reductions Purchase Agreement ERPD Emission Reductions Program Document ESMF Environmental and Social Management Framework FAO Food and Agriculture Organization FCPF Forest Carbon Partnership Facility FIP Forest Investment Program FMT Facility Management Team FRL Forest Reference Levels FY Fiscal Year (World Bank fiscal year, July 1 through June 30) IDB Inter-American Development Bank IP Indigenous People Lao PDR Lao People’s Democratic Republic LOI Letter of Intent M&E Monitoring and Evaluation MF Methodological Framework MRV Measurement, Reporting, and Verification NGO Non-Governmental Organization PC Participants Committee PES Payments for Ecosystems Services PMF Performanace Measurement Framework REDD Reducing Emissions from Deforestation and Forest Degradation REDD+ REDD plus conservation of forest carbon stocks, sustainable management of forests, and enhancement of forest carbon stocks REL Reference Emission Levels RL Reference Level R-PP Readiness Preparation Proposal SBSTA Subsidiary Body for Scientific and Technological Advice (under UNFCCC) SESA Strategic Environmental and Social Assessment SFM Sustainable Forest Management SIS Safeguards Information System SMART Specific, Measurement, Relevant and (indicators) Time-bound (indicators) TAP Technical Advisory Panel UNDP United Nations Development Programme UNFCCC United Nations Framework Convention on Climate Change UN-REDD United Nations Collaborative Programme on Reducing Emissions from Deforestation and Forest Degradation in Developing Countries The FCPF has grown to 36 developing countries (13 in Africa, 15 in Latin America and the Caribbean, and 8 in the Asia-Pacific Region) and 18 financial contributors (comprising developed countries, private sector participants, and one NGO). 6 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT 1 General Introduction In contrast to previous annual reports, the FY13 report follows the structure of the Forest Carbon Partnership Facility (FCPF) Program Level Monitoring and Evaluation (M&E) Framework, adopted by the Participants Committee (PC) at its 14th meeting in March 2013. The M&E Framework is designed to keep track of the Facility’s performance in a way that helps ensure lessons can be learned and adaptive management is possible at the Facility level. In line with the M&E Framework’s Performance country-specific assessment of readiness progress. Measurement Framework (PMF), this year’s annual report As the FCPF’s main focus has been on readiness and provides information on the main achievements related to on laying the ground for future REDD+ activities and piloting the intermediate impact, outcomes (aligned with the four performance-based payment systems, it is somewhat FCPF objectives), and outputs (short-term results), which limited in its ability to report on longer-term and impact- together provide a strategic overview of the FCPF (see figure level indicators at this stage. (Impact assessments will be 1). Specific, Measurable, Achievable, Relevant and Time- part of the independent evaluations as planned in the M&E bound (SMART) indicators have been developed at the level Framework.) Moreover, being a transition year, only a small of impact, outcome, and output to track the progress of the number of countries have started using the new reporting FCPF. The targets for each indicator have been designed in structure. As a result, this report includes the information a way that ensures results can be achieved within the life currently available and, for some indicators where portfolio- span of the Facility. This report also begins to integrate the wide data was not available, country examples are provided. new reporting structure at the country level—moving away In the coming years the scope of the annual report is from reporting on activities only and allowing for systematic, expected to expand as more information becomes available. Figure 1: Result chain of FCPF interventions Outputs Outcome Oth er sup REDD por + Readiness Assessment t Framework Intermediate REDD+ Impact preparedness plan Efforts successfully undertaken by countries with FCPF Progress Global regime that support to achieve provides incentives for Impact towards readiness emission reductions REDD+ and benefit from Increased capacity of REDD+ IP and local CSO Biodiversity Boundary of M&E framework Momentum for good conserved Models for sustainable governance of SFM, livelihoods respective policy reforms and biodiversity Engagement for and multi stake-holder sustainable livelihoods participation ER standards of forest communities and guidelines Sustainable or Globally recognized enhanced livelihoods ER- Programs agreed of forest dependent REDD+ standards people Increased CF funds including Private ER Performance- sector investment based payment systems effectively Reduced emissions demonstrated from deforestation ER-programs timely and forest degradation Reduced implemented from FCPF, greenhouse especially CF-Pilots gases Knowledge management + communication strategy Knowledge gained Knowledge products Additional REDD+ from FCPF used by disseminated investments international REDD practitioners Active South- South learning + EDD er R t Strong FCPF and Othsuppor REDD+ visibility FOREST CARBON PARTNERSHIP FACILITY 7 The FCPF has two separate but complementary funding mechanisms—the Readiness Fund and the Carbon Fund (CF)— to achieve its strategic objectives. Together the two funds have raised $648 million. 8 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT 2 Program Objectives The FCPF is a global partnership of governments, businesses, civil society, and Indigenous Peoples (IP), focused on reducing emissions from deforestation and forest degradation, forest carbon stock conservation, the sustainable management of forests, and the enhancement of forest carbon stocks in developing countries (activities commonly referred to as REDD+). As stated in its charter, the FCPF pursues four strategic (CF)—to achieve its strategic objectives. Together the two objectives: funds have raised $648 million. > To assist eligible REDD+ Countries in their efforts to The Readiness Fund supports participating countries achieve Emission Reductions (ER) from deforestation in the development of REDD+ strategies and policies, and/or forest degradation by providing them with references emission levels (REL), measurement, reporting financial and technical assistance in building their and verification (MRV) systems, and institutional capacity capacity to benefit from possible future systems of to manage REDD+, including environmental and social positive incentives for REDD+. safeguards. The Readiness Fund became operational in 2008 and has a capital of about $258 million. > To pilot a performance-based payments system for The Carbon Fund builds on the progress made in ER generated from REDD+ activities, with a view to readiness and is designed to pilot performance-based ensuing equitable sharing and promoting future payments for ER from REDD+ programs in a small number large-scale positive incentives for REDD+. of FCPF countries. The CF became operational in 2011 and > Within the approach to REDD+, to test ways to has a capital of about $390 million. sustain or enhance livelihoods of local communities The FCPF has grown to 36 developing countries (13 and to conserve biodiversity; and in Africa, 15 in Latin America and the Caribbean, and 8 in the Asia-Pacific Region) and 18 financial contributors > To disseminate broadly the knowledge gained in (comprising developed countries, private sector participants, the development of the Facility and implementation and one NGO). It has six categories of observers, including IP of Readiness Plans and ER Programs. and civil society. The core of the FCPF’s inclusive governance The FCPF has two separate but complementary funding structure is formed by the Participants Assembly and the PC. mechanisms—the Readiness Fund and the Carbon Fund FOREST CARBON PARTNERSHIP FACILITY 9 Looking back at 5 years of implementation: What defines the FCPF? Five years into the Facility, REDD+ has changed from a creative international policy concept to structures coalescing the necessary country-driven national institutional architecture, technical capacity, and stakeholder participation to implement REDD+ activities on the ground. Building in-country capacity: Since its origin, the FCPF has helped raise in-country awareness, capacity and skills around REDD+—thereby helping countries understand and establish processes, procedures, and standards for REDD+ readiness. A significant value of the FCPF process to date lies in the clear and constructive guidance it gives for the stepwise development of REDD+ readiness. The Readiness Preparation Proposal (R-PP) process and the unique system of peer review—which includes external, independent technical inputs—has fostered nationally-owned REDD+ strategies and supported a process of continually rising standards across the participating countries. Advancing REDD+ on the ground: The hallmark of the FCPF is the establishment of multi-sectoral platforms within governments, which help break down sectoral silos (between agriculture, energy, environment, and forestry) and identify integrated solutions that serve multiple objectives and mainstream REDD+ in national policy frameworks. Within REDD+ countries, the FCPF has added fresh impetus and incentives with which to improve governance in the forest sector, and address challenges such as law enforcement, land and natural resource tenure conflicts, and illegal logging. It has advanced coordination across ministries and promoted participation and transparency in land- use decision making. Progress has been made in answering questions of carbon ownership and benefit-sharing mechanisms, as well as in establishing avenues for local, subnational, and national grievance redress. It has also given a boost to the political will of governments to tackle deforestation and address deforestation drivers. Recently, countries have begun to design large-scale REDD+ pilot programs. All of this further strengthens the foundation from which participating countries can leverage additional donor funding in support of REDD+ preparation and implementation projects. Fostering Partnerships: The FCPF is leading the way in fostering consultative and participatory approaches at the country level. One of the defining achievements of the FCPF is the catalytic role it has played in establishing multi- stakeholder platforms—bringing together diverse stakeholders, including IP and forest-dependent communities, women and youth—and fostering a dialogue on issues pertinent to REDD+. Furthermore, the Capacity Building Program aims to enable and enhance the meaningful participation of IP, Southern CSOs, and local communities in the development of national strategies and programs. At the Facility level, the innovative governance structure of the FCPF (in which developing countries have the same voice as financial contributors, with a decision-making process that includes a wide spectrum of observers) is seen as highly effective by members and observers alike. This perception fosters trust and a cooperative spirit among all participants to advance the work of the FCPF and the global REDD+ agenda more generally. Creating global standards for REDD+: The FCPF is a central piece in the REDD+ institutional landscape. It has created a structure for REDD+ readiness through the development of a common planning framework, a set of practical tools and guidance, and the robust assessment of country-owned proposals. The Common Approach to Environmental and Social Safeguards has established norms for safeguards and stakeholder engagement in REDD+ readiness. These include the undertaking of a Strategic Environmental and Social Assessment (SESA), the development of an Environmental and Social Management Framework (ESMF) for the national REDD+ strategy, and the establishment of national feedback and grievance redress mechanisms. The Readiness Assessment Framework provides a common approach to measure and communicate countries’ relative progress on core readiness activities. Furthermore, the CF and its Methodological Framework (MF) are blazing the trail for the next generation of carbon initiatives by piloting the implementation of REDD+ programs via the use of performance-based systems of payments for verified Emission Reductions from REDD+ programs. 10 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT Setting the path for impact on climate: Five years into the implementation of the Readiness Fund, the FCPF is assisting 36 REDD+ countries in preparing themselves to reduce emissions from deforestation and forest degradation, and promote sustainable forest management. To date, under the CF, 10 program ideas have been presented and one Letter of Intent (with Costa Rica) has been signed. A total of $650 million have been raised for the two funds: $260 million from 15 donors for the Readiness Fund, and $390 million from 11 financial contributors for the CF. Promoting sustainable landscapes: The FCPF supports countries in their efforts to harness the potential of forests in their national contexts—from supporting the development of new markets and ways to benefit from carbon transactions, to reducing poverty, protecting watersheds or preserving biodiversity. The FCPF helps REDD+ countries achieve these multiple objectives by providing access to funding and a framework and process around which REDD+ planning can take place. National strategies are now incentivizing sustainable pathways of development, through smarter land use planning and policies, among other things, so that alternative models of economically sustainable development emerge. Stimulating non-carbon benefits: Benefits like preserving biodiversity and enhancing sustainable livelihoods are integral to REDD+ readiness preparations and implementation. The earlier phases of REDD+ are critical to transitioning to low-carbon development approaches and building legitimacy with key stakeholders. The emerging benefit-sharing schemes of REDD+ strategies and programs that emerge in the implementation phase transcend the incentives to provide social and environmental added values. Providing such incentives is essential to securing broad community support and the legitimacy of REDD+ programs. Generating knowledge: In its essence, the FCPF is maximizing learning value by testing various approaches to addressing the challenges of deforestation and forest degradation within countries and regions. Nurtured by a young tradition of candid exchange and learning-by-doing, and supported by South-South knowledge transfers, the Partnership is developing awareness and understanding of REDD+. Under the Readiness Fund, countries are exploring and generating lessons related to the policies and systems needed for adopting national REDD+ strategies; developing REL; designing MRV systems; and setting up REDD+ national management arrangements, including proper environmental and social safeguards. Moreover, the CF will provide “real life,” practical insights and knowledge derived from REDD+ countries’ piloting of performance-based mechanisms for REDD+. FOREST CARBON PARTNERSHIP FACILITY 11 Considering that the 36 countries in the FCPF are home to 53 percent of all forest area in the tropics and subtropics (Brazil has 26 percent of forest area but is not in the FCPF), the progress made with REDD+ readiness in the FCPF is set to have a significant global impact on forest conservation and climate mitigation. 12 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT 3 Executive Summary In its fifth year of operation, the Forest Carbon Partnership Facility (FCPF) made tremendous progress with adopting and advancing a set of frameworks that govern the Facility and with guiding countries in their REDD+ activities. The adoption of the program-level Monitoring and Evaluation (M&E) Framework by the Participants Committee (PC) in March 2013 put in place an important structure to track the overall performance of the Facility more systematically. Another highlight, in March 2013, was the approval of the experiences. Under the CF, thus far 10 program ideas have Readiness Assessment Framework, which supports countries been presented, including eight new ideas or updated ideas with measuring and communicating their relative progress on presented in FY13 alone. In FY13, Costa Rica was accepted into REDD+ readiness. Thirty-two of the 36 FCPF countries have now the pipeline of the CF, as the first country, and set to sign a reached the first important milestone in the stepwise approach Letter of Intent (LOI) in early FY14. to REDD+ readiness and had their R-PP assessed by the PC. With significant new contributions from Norway, Germany, The independent Technical Advisory Panel (TAP) and the PC and Finland, a total of $650 million has been raised for the FCPF have emphasized the steady increase in the quality of R-PPs to date—$260 million for the Readiness Fund and $390 million submitted and highlighted that the set of R-PPs presented for the CF. Initial targets have thus been exceeded. The Carbon during PC14 was the strongest set submitted to date. Fund’s available capital for ER payments (approximately $350 Under the Readiness Fund, countries have continued million) could purchase 70 million tCO2e (assuming a notional to explore and generate lessons related to the necessary price of $5 per tCO2e)—which corresponds to approximately 1 policies and systems for adopting national REDD+ strategies— percent of annual deforestation emissions. developing reference emission levels (REL); designing In FY13, the FCPF has also continued pushing the envelope measurement, reporting and verification (MRV) systems; in enhancing the capacity of Indigenous Peoples (IP) and CSOs and setting up REDD+ national management arrangements, working on social inclusion and in broadening outreach to a including proper environmental and social safeguards. Although critical mass of IP and CSOs. A series of capacity-building only nine countries had signed their readiness preparation workshops for social inclusion were organized and regional grant by the end of FY13, the number is expected to double by dialogues for Indigenous Peoples carried out. Further, a the end of FY14, since countries have made much progress record number of 15 small grants worth over $1.2 million were in finalizing R-PPs for the final completeness check, prior approved to support capacity building of IP and Southern CSOs to the due diligence process by the Delivery Partners (DPs). last year. Transitioning into new delivery modalities, the six Further, 100 percent of the supervision reports issued by the regional intermediary organizations that will administer the Delivery Partner (World Bank) show that grant implementation Capacity Building Program in FY14 and FY15 were selected. is progressing according to readiness objectives as per The FCPF’s standards for inclusion and transparency grant agreements. One country, the Democratic Republic of are presently being translated from the global to the country Congo (DRC), has already advanced to the mid-term review level. Governments are paying more and more attention to the (MTR) stage, and several countries are expected to reach this effective engagement of IP in national REDD+ processes and milestone in FY14. IP are now increasingly represented in national institutional Considering that the 36 countries in the FCPF are home arrangements for REDD+. to 53 percent of all forest area in the tropics and subtropics Moving into FY14, the FCPF is keen to shape a diverse (Brazil has 26 percent of forest area but is not in the FCPF), the portfolio of programs for the CF that will generate high- progress made with REDD+ readiness in the FCPF is set to have quality and sustainable ER at scale, deliver environmental a significant global impact on forest conservation and climate and community benefits, and generate important lessons. mitigation. The experiences to be gained while implementing these Significant progress has also been made on the programs will surely offer important lessons for all 36 countries development of the draft Methodological Framework (MF) participating in the FCPF. They will also enable these countries to govern the CF. The CF will pilot performance-based to continue making great strides in reducing emissions from mechanisms for REDD+ and provide “real life,” practical deforestation and forest degradation. insights and knowledge derived from REDD+ countries’ FOREST CARBON PARTNERSHIP FACILITY 13 14 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT BOX 1: FCPF PROGRAM-LEVEL MONITORING AND EVALUATION FRAMEWORK The PC adopted the FCPF Program-Level M&E purposes). Countries should begin using the new reporting Framework at its 14th meeting in Washington, DC, template and finalize their national-level M&E Framework, in March 2013. At the FCPF program level, the M&E as envisaged in the R-PP. It is also suggested countries Framework is designed to keep track of the Facility’s start reporting on their FCPF-financed activities and performance. It consists of a structure and system to add reporting on other readiness activities (for example, ensure that all key data is collected, analyzed, and used activities supported by UN-REDD) over time as feasible. In in a way that helps ensure lesson learning and adaptive this way, a complete picture of REDD+ readiness in a given management at the Facility level. country will eventually arise. In an attempt to streamline countries’ reporting To make it easier for countries to align their FCPF requirements, the FCPF M&E Framework includes a readiness progress reporting with their country-level new country reporting structure. The revised template REDD+ M&E reporting, the FMT ran pilots in Liberia and evolves and replaces the national Readiness Progress Nepal aimed at helping these countries design their Fact Sheets template, by integrating the structure and national M&E systems (which should systematically track content of R-PP template (version 6), the Readiness their readiness progress and identify their remaining Assessment Framework, and the Facility-level M&E needs). The draft frameworks were presented at the framework. The new template moves away from PC meeting in Indonesia, in June 2013; the final results reporting on activities only, and allows for systematic, of these pilots will be available later this year. Pilots country-specific assessment of readiness. are also planned for Kenya and Costa Rica in late 2013 or early 2014. These examples of countries that have Central to guiding and organizing the M&E established their national M&E framework are expected Framework are: to provide further opportunities for South-South exchange • The Result Chain and Logical Framework, which of information on existing M&E arrangements, hurdles together provide a strategic overview of the FCPF. overcome, and challenges that remain. The FMT will They support decision making by illustrating the also prepare resources to help countries (i) understand main results to be achieved by the Facility at various their reporting obligations under the FCPF; (ii) design levels with performance indicators. They include their national M&E frameworks around key milestones to both the monitoring and evaluation efforts at the track readiness progress; and (iii) use the revised country Facility level. reporting template. • The Performance Measurement Framework (PMF) Benefits of readiness progress reporting: is the key internal management tool used by the • The structure of the new country reporting template Facility Management Team (FMT) to manage the mirrors the Readiness Assessment Framework and collection, analysis, and reporting on the walks countries through the steps to readiness, performance data. It outlines proposed program thereby allowing countries to become familiar with indicators for each results level, targets, baselines, readiness criteria from the earliest stage frequency of data collection, data sources and methods, as well as responsibilities for this data • Further strengthens quality and operationalization collection and consolidation. of M&E (R-PP component 6) Operationalization of the Framework requires careful • Moves from activity-based to results-based tracking by the FMT (with input from DPs, IP, and CSOs) monitoring and good-quality information from REDD+ countries. At • Streamlines annual and semi-annual (updated) the Facility level, this will include collecting, analyzing, and reporting to the FCPF reporting on the performance data, as well as preparing for the second Program Evaluation, to be completed by 2015. • Helps countries identify and prepare for key At the country level, countries are expected to report on readiness milestones & outcomes to be achieved their progress annually (by August 30) and semi-annually in the short- and medium term, including at mid- (by March 30), prior to PC meetings (this year the deadline term and at the R-Package stage for reporting was 20 September, due to the PC meeting • Gives an overall picture of progress (including FCPF being held slightly later in the year and the fact that and non-FCPF funded contributions) this year was considered a transition year for reporting FOREST CARBON PARTNERSHIP FACILITY 15 Under the CF, three countries presented new ideas and another five presented updated ideas for ER Programs at scale in FY13. Costa Rica was the first country to be accepted into the pipeline of the CF and is set to sign a LOI to negotiate an Emission Reductions Purchase Agreement (ERPA) worth up to $63 million. FY13 ANNUAL REPORT 4 Main Achievements and Results During the Period 4.1. Highlights In FY13, the FCPF delivered a Readiness Assessment Framework to support countries in measuring and communicating their relative progress on REDD+ readiness, and provided finance, technical support, as well as knowledge to help countries advance in their REDD+ readiness process. The FCPF has enabled developing countries to follow a approximately $180 million, were made by Norway (NKr structured, stepwise approach to developing a strategic REDD+ 600 million, approximately $100 million), Germany (€56.4 framework, building technical capacity, and promoting an million, approximately $74 million), and Finland (€4 million, inclusive and broad-based process to manage forests more approximately $6 million) in FY13 and demonstrated a vote of sustainably. In so doing, the Facility has helped set standards confidence in the FCPF by key donors. The new contributions for REDD+ and informed the United Nations Framework to the FCPF raised the Facility’s capitalization to about $650 Convention on Climate Change (UNFCCC) process. million. Most of the new funding went to the CF. The CF is the FCPF’s instrument to pilot results-based Five years into operation, REDD+ readiness has advanced payments for ER from REDD+ programs at scale. Over the past significantly. As eight R-PPs were assessed in FY13, 32 out of year, important progress has been made with the development 36 FCPF REDD+ Country Participants1 have now reached this of the MF for the CF, which is recognized as an emerging global important first milestone in the stepwise approach to REDD+ standard for REDD+ transactions at scale. Piloting of carbon readiness. As a pioneer of REDD+ readiness, the DRC has finance transactions through the CF (2013–20) is expected to already advanced to mid-term stage and many more countries significantly inform the development of a REDD+ system under are expected to reach this milestone in FY14. Under the CF, the UNFCCC. three countries presented new ideas and another five presented Participation in the FCPF CF provides REDD+ countries with updated ideas for ER Programs at scale in FY13. Costa Rica the opportunity to be a front-runner in innovating on large-scale was the first country to be accepted into the pipeline of the CF land-based carbon finance; to benefit from new incentives for and is set to sign a LOI to negotiate an Emission Reductions sustainable land use that contribute to sustainable development Purchase Agreement (ERPA) worth up to $63 million. This goals; to benefit from technical assistance and access to makes it the first country to access large-scale performance- cutting-edge knowledge on REDD+; and to gain experience based payments for conserving forests and confirms its role as aligning national REDD+ frameworks and systems with a global pioneer in exploring innovative ways to transform its emerging international guidance on REDD+. development path. Substantial additional financial contributions, totaling 1 A REDD+ Country Participant is a developing country located in a subtropical or tropical area that has signed a Participation Agreement to participate in the Readiness Fund. FOREST CARBON PARTNERSHIP FACILITY 17 Lessons Learned LESSON 1: REDD+ methodological issues require a balance between simplicity and robustness The MF that has been developed and will be piloted under the CF is viewed by CF Participants as a critically significant standard to guide the preparation and implementation of future ER Programs. The issues papers commissioned by the FMT as well as Design Forums and Working Group discussions held in FY13 highlighted the complexity of the issues and the difficulty of ensuring that future ER Programs in the CF portfolio are not only technically robust and socially inclusive, but can also be implemented in reasonable time frames. Example from FY13: The development of a MF is proving to be a complex task. CF Participants considered several trade-offs—simplicity of methods used (and the need to avoid complex methodologies), flexibility to pilot approaches and encourage innovation, consistency of ERs, and predictability of assessment of ER Programs. CF Participants decided to use a set of criteria and indicators (C&I). The application of the Framework to ER Programs is expected to generate more lessons that will inform the international REDD+ process. LESSON 2: Readiness and design of pilot ER Programs can advance in parallel Countries that are designing and piloting the implementation of ER programs are demonstrating how readiness processes inform the design of such programs. At the same time, site-specific piloting presents an opportunity to advance knowledge exchange and work on elements that are relevant to national readiness preparations, such as Reference Scenario, SESA, and MRV. Real situations call for realistic solutions, which in turn give focus and momentum to the readiness work. Readiness is increasingly understood as a continuum, and there are strong synergies and feedback between the two aspects of REDD+. Example from FY13: In Costa Rica, the DRC, Ethiopia, Indonesia, and the Republic of Congo, the REDD+ readiness process has benefitted from discussions and stakeholder feedback for the design of a subnational ER Program. LESSON 3: Readiness Assessment Framework informs all stages of readiness The Readiness Assessment Framework approved by the PC has useful applications for tracking progress throughout the readiness phase, not just at the time of submission of the Readiness Package. The assessment criteria for each of the nine readiness subcomponents are useful benchmarks for a country’s self-assessment of readiness progress and help focus preparation activities going forward. Example from FY13: Examples of early application include use by the DRC, as a management tool to refocus readiness preparations after its mid-term review, and by Nepal for stock-taking to inform its mid-term report. The revised country reporting template, included in the FCPF M&E Framework that draws upon the Readiness Assessment Framework, was successfully used for the first time by some REDD+ countries (Nepal, Liberia) to transition to a reporting format that is aligned with the Readiness Assessment Framework. LESSON 4: REDD+ Implementation in Countries: (a) Implementation gains momentum once capacity increases in REDD+ Coordination Units In several FCPF countries, one of the first activities undertaken with readiness grants was the hiring of experts and support staff (REDD Coordinator, Technical Advisor, Procurement Specialist, Communications Specialist) for REDD Coordination Units. This has meant that readiness implementation was often slow to start, but once key staff was in place, grant 18 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT implementation picked up. This is not surprising as these capacity needs were to a large extent identified by countries in their R-PP. Looking forward, it is important that the capacity of the REDD Coordination Units be enhanced and sustained. Example from FY13: It took a few months in countries such as Liberia and Nepal to complete the hiring and placing of key staff in the REDD Coordination Units. However, once the staff within the REDD Coordination Unit was fully on board, the implementation of FCPF grants gained momentum. (b) Stakeholder engagement is essential to broadening understanding of REDD+ Countries do recognize the need for stakeholder involvement in decision making. At the global level, this is evident by the diverse range of stakeholders represented in panel discussions on REDD+ issues. At the country level, stakeholder representation in REDD+ technical working groups and national climate change steering committees is improving, be it that the degree of engagement varies across countries (from stakeholder consultation on REDD+ to active contribution, giving feedback, and leading the national dialogues). Example from FY13: Governments, NGOs, CSOs, and IPs were well represented at the governance workshop in Liberia, the social inclusion workshops in Nairobi and Bangkok, and the workshop on linking of REDD+ pilots to REDD+ strategy development in Ethiopia, organized by the FMT. These workshops also pointed to the risk of overly high expectations in countries regarding REDD+ and a sense of urgency to showcase results on the ground. At the country level, positive examples of active stakeholder engagement have also emerged. For example, the REDD+ Technical Working Groups’ coordination in Liberia is led by a CSO representative. Costa Rica has used its REDD+ readiness resources to come up with a detailed plan for consultations with stakeholders (including civil society and IP) about the government’s interest in undertaking a REDD+ initiative. (c) Mainstreaming REDD+ in low-carbon development strategies Overall, REDD+ countries continue to experience challenges in cross-sectoral coordination and cooperation towards the preparation of REDD+ strategies. However, there are also examples of what can be achieved with successful coordination. Example from FY13: Country progress sheets highlighted the challenges of coordinating activities within the Ministry/ Departments that house the national REDD+ as well as cross-sectoral coordination with other ministries. At the workshop on linking local REDD+ experiences to national REDD+ strategies, held in Ethiopia, REDD+ countries highlighted that a paradigm shift needs to occur toward more holistic approaches to land and resources management— not just across sectors but also related to cooperation among multiple actors at various levels (project to national). On a positive note, the DRC continued to maintain a high level of in-country coordination and became the first FCPF country to submit its mid-term progress report and request additional financing in the amount of $5 million. In Ethiopia, the government recently developed a Climate-Resilient Green Economy (CRGE) strategy emphasizing sustainable, climate-resilient development, and aiming to achieve carbon neutrality by 2025. REDD+ is one of eight “sectors” that play a key role in the CRGE strategy, which sets ambitious goals related to land-use change and forestry. The emphasis on REDD+, agriculture, and livestock in the CRGE vision demonstrates the importance the government places on identifying synergies and trade-offs among different development sectors such as energy, industry, transport, agriculture, and forestry. (d) Importance of seeking private sector engagement at the country or program level At the global level, private sector interest in REDD+ seems to have diminished somewhat compared to previous years. However, private sector engagement in REDD+ is still very relevant and can be reinforced at the country level. Cooperation between policy makers and the private sector can result in economic models that are sustainable. In the context of REDD+, the private sector can provide not only market access but also technical expertise. Example from FY13: Costa Rica´s ER Program has been selected for inclusion in the FCPF CF’s pipeline. The Program plans to involve private owners of natural forests, planted forests or non-forested land, by making them responsible for implementing the activities of the REDD+ strategy; mobilizing over $26 million in private finance for forestry and agroforestry activities; and creating local demand for sustainably sourced timber. The FCPF is supporting the organization of a national dialogue to assess options and make concrete proposals for the involvement of the private sector in the ER Program. The analytical work is already underway and the dialogue is to take place in the first quarter of 2014. FOREST CARBON PARTNERSHIP FACILITY 19 LESSON 5: Effective communication on abstract elements of REDD+ is best achieved with examples Stakeholder feedback indicated that the risk of overly high expectations in countries regarding REDD+ created a sense of urgency to link REDD+ readiness to implementation in order to showcase what REDD+ could mean for communities. On the other hand, careful messaging and communication related to the three phases of REDD+ from readiness to implementation are equally relevant and remain challenging for countries. Example from FY13: At the portfolio level, the FMT put more emphasis on clear communication and messaging on evolving processes (Readiness Assessment Framework, Methodological Framework, etc.). More needs to be done in these areas in the coming year. LESSON 6: Building on experiences in managing forest resources at the local level can inform national land- use decisions related to the REDD+ Implementation Framework A wealth of experience exists in countries on approaches to forest management but this arsenal has not been adequately tapped into. A shift towards more holistic land management approaches needs to occur—not just across sectors but also in terms of cooperation among multiple actors at various levels (project to national). Local REDD+ pilot projects can test practical aspects and find simplified approaches for effective implementation. Successful pilots will help translate actions into policies. In addition, pilot projects are critical for demonstrating to local constituents that REDD+ is real, and goes beyond REDD+ readiness activities. Example from FY13: The above messages surfaced in reflections made during the workshop on linking local REDD+ experiences to national REDD+ strategies, organized by FMT in Ethiopia, in which 12 REDD+ Country Participants (policymakers and project developers) from Africa and Asia participated. 20 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT FOREST CARBON PARTNERSHIP FACILITY 21 4.2. Progress at the Impact Level The following section is organized along the lines of the PMF for the FCPF. Progress is reported based on indicators at impact, outcome, and output level, in line with the format for annual reporting approved by the PC in March 2013 as part of the M&E package. Several indicators, among others, those related to ER Program implementation under the CF, are not relevant at this time. Accordingly, they are not referred to in the narrative below. Moreover, some indicators require that information be generated at the country level and aggregated at the portfolio level. However, as this is the year in which the FCPF and REDD+ Country Participants transitioned to a new reporting format, data is not consistently available to allow a quantitative analysis and instead available anecdotes and examples from countries have been provided. The FCPF FMT expects to be able to report comprehensively at the portfolio level and provide some quantitative analysis in forthcoming reports. Please refer to Section 8 (Results Measurement Reporting Framework) for a tabular aggregation of targets and outputs. Impact-level Results 1.1: The FCPF has contributed to the In FY13, the FCPF continued to develop and contribute design of a global regime under or outside UNFCCC that to the establishment of global standards for REDD+. A major provides incentives for REDD+ accomplishment was the adoption of the Readiness Assessment Framework, which guides countries on how to measure and Impact-level indicator 1.1.B: Examples of how FCPF learning communicate their relative progress on REDD+ readiness, and and experience has fed into UNFCCC REDD+ decisions which builds on the foundations and platforms created for the The FMT made a statement on REDD+ financing during the Readiness Preparation phase. “Second workshop on results-based finance for the full The CF is the FCPF’s instrument to pilot results-based implementation of the activities,” referred to in decision 1/CP.16, payments for REDD+. Over the past year, important progress paragraph 70, Bonn, Germany, 21–22 August 2013. The statement has been made with the development of the MF for the CF, focused on key lessons for the effective transfer of results-based which is recognized as an emerging global standard for REDD+ finance and highlighted the FCPF CF as a relevant pilot program transactions at scale. Piloting of carbon finance transactions at the World Bank to test results-based finance for REDD+. The through the CF (2013–20) is expected to significantly inform the statement and workshop docs are available at: http://unfccc.int/ development of a REDD+ system under the UNFCCC. methods/redd/redd_finance/items/7729.php The FCPF further informed REDD+ discussions on Reference Framework for REDD+ readiness Levels, MRV and Safeguards under the UNFCCC process. The The Readiness Assessment Framework2 was adopted at the creation of standards for readiness and early experiences from 14th meeting of the PC3 in March 2013. It was developed over REDD+ countries in the FCPF have informed the guidance on two years of discussions in the PC of the FCPF, and informed by REDD+. For example, the stepwise approach and learning-by- country experiences to date in formulating and implementing doing approach on MRV is consistent with the guidance of the their R-PPs and existing good practices. Readiness Assessment Framework and the R-PP template. The Readiness Assessment Framework provides a common framework to measure countries’ relative progress on core Impact-level Results 1.2: Reduced emissions from readiness activities. At the heart of the Readiness Assessment deforestation and forest degradation from FCPF, is a thorough self-examination by REDD+ country stakeholders especially CF portfolio countries to take stock of the activities implemented during the REDD+ This impact-level result is not yet applicable. readiness preparation phase and assess progress on REDD+ readiness, in relation to 34 corresponding assessment criteria. Impact-level Results 1.3: FCPF has catalyzed the creation of The Framework has been widely accepted and is now starting recognized standards for REDD+ to also be used by countries beyond the FCPF partnership. Besides documenting country’s readiness progress, the The FCPF is a global partnership initiative of 53 partners self-assessment report or Readiness Package (R-Package) that has pioneered a framework for reducing deforestation also captures lessons learned, assesses remaining gaps, and and forest degradation—a major potential contribution of identifies activities required to be able to transition to the developing countries to climate change mitigation—through implementation of performance-based activities. (i) finance, technical support, and knowledge sharing; and (ii) piloting of results-based finance for ER from REDD+ programs Methodological Framework at scale. The FCPF has enabled developing countries to follow a structured and stepwise approach to develop a strategic The CF is designed to pilot the implementation of REDD+ framework, build technical capacity, and promote an inclusive programs via use of performance-based systems of payments and broad-based process to manage forests more sustainably. In the process, the Facility has helped set standards for REDD+ 2 A User Guide is available at http://www.forestcarbonpartnership.org/sites/fcp/ files/2013/July2013/FCPC%20framework%20text%207-25-13%20ENG%20web. and informed the UNFCCC process since its inception at the pdf. Conference of the Parties (COP) to the UNFCCC in Bali. 3 See Resolution PC/14/2013/1 and FMT Note 2013–1 rev. 22 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT for verified Emission Reductions from REDD+ programs. The guidance related to REDD+ (refer to FMT Note CF-2013-3 World ambition of the CF is to test large-scale (that is, jurisdiction Bank Safeguards Policies and the UNFCCC REDD+ Safeguards). or eco-region) approaches that require a mix of policies and This analysis served as the basis for tracing key links between investments, integration with national development strategies, ongoing safeguards work during the readiness phase at the use of innovative financial structures, and multi-stakeholder national level and program-specific safeguard requirements engagement. The CF thus moves beyond the project-based for the ER Program area. It also complemented new guidance approach that most REDD+ transactions in the voluntary on (i) the features of effective feedback and grievance redress markets have relied on to date. mechanisms for REDD+, and (ii) the potential for information Over the past year, important progress has been made with generated from the application of World Bank safeguards to the development of the MF4 for the CF—a critical component the ER Program to serve as input for the national Safeguard to guide REDD+ countries in designing their proposals for and Information System (SIS) required by the UNFCCC. implementation of ER Programs for the CF. The MF will be used by CF Participants (among other selection criteria, see ER Impact-level indicator 1.3.A: Examples of non-participant Program Origination Brochure) to select ER Programs into the countries that have adopted FCPF standards in their own Carbon Fund portfolio. The ER Programs proposed by REDD+ REDD+ process countries to the CF are expected to demonstrate conformity Eleven non-participant countries have adopted common FCPF with the Framework’s criteria. standards and prepared R-PPs on their own account and Once the foundations had been laid in the Guiding initiative. While the decision made at PC14, in March 2013, to Principles for the development of the CF MF, the attention reopen the FCPF to new REDD+ countries certainly triggered shifted to translating the MF high-level principles into specific some of the effort and motivation, countries were aware that only criteria and indicators that could be applied in the ER Program a limited number of countries would be accepted into the FCPF context. A series of CF Working Group meetings and a REDD+ at PC16 in December 2013. Nonetheless, these eleven countries Design Forum with over 40 stakeholder representatives and prepared R-PPs and carried out a consultative stakeholder experts were held. Building on the results of these discussions engagement process as per FCPF standards, without receiving and on the lessons of safeguards-related activities in a number any dedicated financial or technical support from the FCPF. of REDD+ countries, the FMT of the FCPF finalized an analysis that examined the consistency between the World Bank 4 More information, including frequently askeds questions, can be found at safeguards policies and the safeguards included in the UNFCCC https://www.forestcarbonpartnership.org/carbon-fund-methodological- framework FOREST CARBON PARTNERSHIP FACILITY 23 This demonstrates that the countries consider the preparation process, using the safeguard policies of the World development of an R-PP, the associated consultative Bank as a minimum acceptable standard. Implementation of development process, as well as the quality review and feedback FCPF-financed readiness preparation activities has not yet mechanism provided through the two-step review process commenced in any of the countries that selected DPs other by the TAP and the PC a valuable and beneficial exercise— than the World Bank. It is thus premature to report on examples regardless of whether a country is eventually accepted into or lessons from implementation of the Common Approach. In the Facility. Preparing an R-PP provides countries with the FY13, activities concentrated on capacity building and raising opportunity to identify drivers of deforestation across different awareness of the Common Approach, including applicable development sectors and convene a broad range of national policies and procedures on environmental and social safeguards, stakeholders to identify holistic solutions to reduce forest loss. disclosure of information, and grievance and accountability The exercise of R-PP development further offers an opportunity mechanisms. To support capacity building on the Common to demonstrate national commitment to REDD+ and potentially Approach specifically, and social inclusion more generally, attract additional funds from external sources to cover the cost two regional workshops were held in FY13. The workshop of REDD+ readiness. in Nairobi, Kenya, held in December 2012, brought together stakeholders from seven African countries—Ethiopia, Ghana, Impact-level indicator 1.3.B: Common Approach Kenya, Liberia, Mozambique, Tanzania, and Uganda. A second successfully implemented regional workshop was held in Bangkok, Thailand, in April/May The Common Approach has been designed to provide the World 2013, and brought together stakeholders from eight Asia-Pacific Bank and the other FCPF DPs with a common platform for risk countries—Cambodia, Indonesia, Lao PDR, Nepal, Papua New management and quality assurance in the REDD+ readiness Guinea, Thailand, Vanuatu, and Vietnam—to take stock, analyze, and share progress made and challenges faced with regards to social inclusion in REDD+ readiness. The two regional workshops supported regionally based teams to understand that compliance with the Common Approach requires paying special attention to the various elements of the same, namely: (i) the SESA/ ESMF; (ii) stakeholder engagement; (iii) information disclosure/ dissemination; and (iv) feedback and grievance redress mechanisms, as well as being aware of the interrelations. To support countries and DPs with risk management as per the Common Approach, the FMT is developing a safeguards/ ESMF online learning module. Work is well advanced and the training is expected to be launched later this year. Impact-level Results 1.4: FCPF has catalyzed investment in REDD+ (CF, and grants) Impact-level indicator I.4.A: Amount of non-FCPF investments under R-PP process in Participant countries and for implementation of ER Programs (e.g., FIP, bilateral donors, private sector) The R-PP process as supported by the FCPF has helped countries leverage additional external funding to finance the cost of readiness activities. As per the FCPF’s criteria, development of the R-PP entails a participatory and inclusive process, requires government ownership, and encourages transparency. The process has therefore gained donors’ confidence and attracted additional funds to cover the costs of REDD+ readiness, which often exceed grant funding available from the FCPF Readiness Fund. The table below provides examples of non-FCPF investments received under the R-PP process and at the stage of ER Program development. However, it should be noted that the figures are based on preliminary reporting by countries and may not be exhaustive. 24 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT Table 1: Amount of non-FCPF investments* Impact-level Result I.5: The FCPF has generated momentum to address governance and transparency issues and policy Amount of non-FCPF investments received under R-PP process reforms related to sustainable forest resource management REDD+ Country Source Amount provided and REDD+ Ghana Gordon and Betty Moore $148,063 Foundation for stakeholder Impact-level indicator I.5.B: Number of policy reforms initiated, consultations and biomass map completed or underway complying with REDD+ standards in Nepal USAID $965,000 Participants’ country, potentially include issues of land tenure DFID/SDC $491,000 The following two examples provide a snapshot of important progress made in FY13 on policy reforms that guide and inform Government of Finland $360,000 REDD+ standards and touch upon issues of land tenure. Government of Japan $2,000 In May 2013, a ruling by the Constitutional Court in Jakarta Uganda Government of Austria €650,160 was an important step towards wider recognition of IP’ rights in Indonesia. The ruling concluded that the customary forests Costa Rica GIZ $2,000,000 of IP should not be classified as falling in “State Forest Areas,” UN-REDD $250,000 thereby departing from weak use rights that IP’ “customary NORAD $105,000 forests” had within State Forest Areas under the 1999 Forestry Act. Government statistics indicate that land of some 32,000 USAID $500,000 villages overlap areas classified as “State Forest Areas,” Government of Costa Rica $250,000 making the Court’s ruling an important decision for IP, who Republic of UN-REDD $4,000,000 have long been stewards for forest protection in these areas. Congo In FY13, the government of Mozambique advanced the Government (State) $600,000 process towards approval of a new decree that establishes COMIFAC (Regional REDD+ Project $650,000 rules and procedures to guide private investments in REDD+ and Regional Project MRV) and defines the legal treatment of REDD+ demonstration Democratic UNDP $3,110,690 projects (that is, legal jurisdiction to grant permission for Republic of FAO $2,926,450 REDD+ projects, legal nature of carbon credits). The regulations Congo UNEP $1,346,060 standardize the requests from the private sector, NGOs, and communities for permits to undertake REDD+ projects and eventually trade carbon credits that derive from these Amount of non-FCPF investments received for implementation projects. More specifically, the regulations deal with the of ER Programs (e.g., FIP, bilateral donors, private sector), if process and competencies for granting such permits (for relevant example, safeguards and consultation requirements). With REDD+ Country Source Amount provided technical assistance from the FCPF, the country prepared these Ghana Japanese Funded Forest $7,800,000 regulations in a highly participatory fashion and with active Preservation Programme collaboration from national NGOs, research centers, and the (FPP) Technology Transfer private sector. In addition, public consultations were carried out and Support for trend analysis in June 2013. The Council of Ministers approved the Decree in of forest land change, Forest resource map, biomass and August 2013, which presents one of the first legislations of this C‑Stock estimation and type in Africa, as well as in the world. Capacity building At the national level, Liberia took a significant legislative GIZ Supporting Ghana in €500,000 step when the Land Commission approved the National Land Forest Monitoring based on Rights Policy on May 21, 2013. This Land Rights Policy concerns German Remote Sensing four land rights categories (Public Land, Government Land, Technology Customary Land, and Private Land) and a cross-cutting sub- Democratic FIP $60,000,000 category called Protected Areas, which must be conserved for Republic of the benefit of all Liberians. For Public Land and Government Norway $2,500,000 Congo Land, the Policy sets forth critical policy recommendations Congo Basin Forest Fund $24,000,000 regarding how the government transfers such land and how (CBFF) the Government acquires land, especially through the exercise OIBT $600,000 of eminent domain (that is, forced acquisition). This is a major *It should be noted that figures are based on country reporting but may not be accomplishment for REDD+. exhaustive. FOREST CARBON PARTNERSHIP FACILITY 25 4.3. Progress at the Outcome Level prescriptive framework for implementation of REDD+ has been developed that aims to guarantee REDD+ co-benefits. The Outcome-level Result 1: Efforts successfully undertaken by national framework incorporates environmental and social countries with FCPF support to achieve ER from deforestation considerations, in full compliance with the Cancún Agreements and/or forest degradation, and to benefit from possible future and associated international standards. The current version systems of positive incentives for REDD+ (Readiness Fund) of these national standards, which were designed in a This outcome-level result is not yet applicable. participatory manner, include 7 principles, 25 criteria, and 43 indicators as well as means of verification tailored to specific Outcome-level Result 2: Selected FCPF countries demonstrate national circumstances. For proper management, monitoring, key elements (carbon accounting, programmatic elements reporting, and evaluation of these standards, a Safeguards and pricing) of performance-based payment systems for Information System (SIS) has been developed through a SESA. ER generated from REDD+ activities with a view to ensuring The SIS will be fully integrated into the National REDD+ Registry equitable benefit sharing and promoting future large-scale to simplify implementation by project developers. More broadly, positive incentives for REDD+ (Carbon Fund) the 2012 National REDD+ Framework Strategy is integrated into This impact-level result is not yet applicable. national development policy and envisages more sustainable land use and the stabilization of the forest cover at 63.5 percent Outcome-level Result 3: Engagement of all stakeholders of the national territory by 2030. (governments, CSO, IP, private sector, delivery partners) to An important element to ensure local community benefits sustain or enhance livelihoods of local communities and to is the emphasis on community forest management, which conserve biodiversity within the approach to REDD+ features as a component in almost all emerging REDD+ strategies and is a well-established practice in many countries Outcome-level indicator 3.A: Design of national REDD+ participating in REDD+. strategies, monitoring systems and ER Programs addresses In Tanzania, for example, a number of ongoing REDD+ indicators for enhancement of livelihoods of local communities pilot projects are informing the development of the national and for biodiversity conservation REDD+ strategy. Having adopted a more integrated approach The DRC’s National REDD+ Framework Strategy, developed to participatory forest management, land use planning, and through national multi-stakeholder processes, is an example REDD+—with a view to achieving better protection for those of how indicators for the enhancement of livelihoods and forests that are at immediate threat from deforestation—the biodiversity conservation have been incorporated in the Mjumita REDD+ pilot project has provided important lessons national approach to REDD+. Considering the importance that are feeding into national REDD+ strategy development. The of growth and poverty alleviation for the DRC, a national project has supported communities to establish four community 26 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT forestry networks to address governance issues at village and Outcome-level Indicator 4.A: Number of new countries/ site-level. Besides community monitoring, the networks have stakeholders requesting to become FCPF members/observers started to combat issues such as illegal timber harvesting. At PC14, in March 2013, the PC decided to reopen the FCPF to Promoting the role that communities and IP play in forest new REDD+ countries. Subsequently, 17 countries expressed monitoring can enhance REDD+ program implementation. interest in joining the FCPF: Belize, Bhutan, Burkina Faso, Clarifying land tenure and ensuring land rights of Burundi, Chad, Côte d’Ivoire, Dominican Republic, Fiji, Jamaica, communities helps to ensure equitable distribution of benefits Nigeria, Pakistan, Philippines, Republic of Sudan, South Sudan, to support local livelihoods. In Costa Rica, the Payments for Sri Lanka, Togo, and Uruguay. To be considered as potential Ecosystems Services (PES) program was amended to reduce candidates for selection into the FCPF at PC16, in December barriers to participation by accepting proof of right of possession 2013, countries were asked to submit complete R-PPs to the for at least 10 years in lieu of land title in certain circumstances. FMT by July 31, 2013. Eleven countries submitted their R-PPs In El Salvador, the government adopted an innovative by the deadline. In accordance with the existing R-PP review approach called Adaptation-based Mitigation, which builds process, the R-PPs from these eleven countries will undergo a the core of the R-PP. The approach responds to conditions completeness check and then be reviewed by the TAP, ahead of where critical environmental thresholds have been reached their formal presentation to PC16. that are now magnified by the impact of climate variability. The In FY13, the FMT also received a request to invite a approach further seeks to address environmental as well as Women’s Observer to PC meetings. At PC15, in Lombok, social dynamics that are threating livelihoods in various areas Indonesia, the request was granted. Accordingly, a regional of the country. It combines strategies, goals, and resources that representative of the Global Women’s Tenure Network will seek to contribute to mitigation actions. At the same time, it is be invited to future PC meetings. Representatives to each PC laying the groundwork for climate change adaptation, thereby meeting will rotate, based on the region the meeting is held in. addressing the food security and other livelihood challenges rural communities are facing due to vulnerability to the Outcome-level indicator 4.B: Examples of utilization of/or changing climate. reference to FCPF knowledge products Undoubtedly, the most requested knowledge product in FY13 Outcome-level Results 4: Knowledge gained in the development was the Guide to the FCPF Readiness Assessment Framework. of the FCPF and implementation of Readiness Preparation Reporting from several countries indicates that the Assessment Proposals (under the Readiness Fund) and Emission Framework has been applied by several countries at different Reductions Programs (under the Carbon Fund) broadly shared, stages of readiness preparation and has helped countries disseminated and used by international REDD+ practitioners focus the remaining readiness preparation activities. While no country has advanced to the point of preparing an R-Package, FOREST CARBON PARTNERSHIP FACILITY 27 The TAP and PC noted that the submissions in FY13 presented the strongest set of R-PPs ever submitted. The continuous increase in the quality of the R-PPs reflects countries’ improved understanding of essential REDD+ readiness elements, including the need to work across sectors. Particularly components 3 (on Forest Reference Levels) and 4 (on National Forest Monitoring) have seen significant improvements compared to earlier R-PPs. Output-level Indicator 1.2.b: Number of Readiness Preparation Grant agreements signed Unfortunately, progress on the subsequent major milestone— signature of readiness preparation grants—did not advance equally fast. In FY13, two additional readiness preparation grants were signed by Ethiopia and Vietnam. This brought the total number of countries that had entered the REDD+ readiness preparation stage by the end of FY13 and are now the following examples demonstrate how the framework can be implementing their Readiness Preparation Grants to nine. applied at the inception of readiness preparation activities as For another four countries (Lao PDR, Nicaragua, well as around mid-term. Examples of such early application Mozambique, and Uganda), due diligence on the final R-PP include use by Cameroon (to identify strong indicators for FCPF was completed and internal review meetings were held in readiness grant implementation), by Indonesia (to prepare its FY13. Further, for a significant number of countries, the due mid-term report and inform the development of a road map diligence process is well advanced and internal review meetings to readiness), by the DRC (as a management tool to refocus are planned for the first half of FY14. Consequently, the total readiness preparations after MTR) and by Nepal (for stock- number of readiness preparation grant agreements signed is taking to inform its mid-term report). expected to double in FY14. This also includes readiness agreements for countries that 4.4. Progress by Output have selected the Inter-American Development Bank (IDB) and Output 1.1: Readiness Assessment Framework is agreed upon the United Nations Development Programme (UNDP) as DPs and disseminated under the Readiness Fund. Transfer Agreements were signed between the World Bank, acting as the Trustee of the FCPF, and Output-level indicator 1.1: Existence of published assessment the UNDP on August 9, 2012, and between the World Bank and framework on readiness package the IDB on October 9, 2012, respectively. The PC approved the The Readiness Assessment Framework5 was adopted at the UNDP as the DP under the FCPF for Cambodia, Central African 14th session of the PC.6 It was developed over two years of Republic, Honduras, Panama, Paraguay, Papua New Guinea, discussions in the PC of the FCPF, and informed by country and Suriname, and the IDB as the DP for Guyana, Guatemala, experiences to date in formulating and implementing their and Peru. R-PPs and existing good practices. The FMT, in coordination with the World Bank and other DPs, meanwhile, focused on providing technical assistance Output 1.2: Countries demonstrate an adequate plan to achieve and guidance to countries to accelerate implementation and, preparedness for REDD+ funding with it, the disbursement of funds in countries with active grant agreements. Output-level Indicator 1.2.a: Number of R-PPs endorsed by PC In FY13, significant progress was made on the number of R-PPs Output 1.3: Countries progress adequately on implementation endorsed by the PC, well exceeding the PMF’s targets. Eight of their R-PP and Grant Agreements additional R-PPs—from Cameroon, Colombia, El Salvador, Honduras, PNG, Suriname, Thailand, and Vanuatu—were Output-level Indicator 1.3.a: Number of mid-term progress assessed by the PC and grant resources totaling around $30 reports presented by countries that follow agreed reporting million were allocated for REDD+ readiness preparation. With standards and are presented in a timely manner the additional eight R-PPs, 32 out of 36 FCPF REDD Country During FY13, one country, the DRC, presented its mid-term Participants have now met this important first milestone in the progress report on the national REDD+ readiness process at stepwise approach to REDD+ readiness. PC13, in October 2012, in Brazzaville. The mid-term progress report was complemented by an independent evaluation and the 5 A User Guide is available at http://www.forestcarbonpartnership.org/sites/fcp/ mid-term report from the World Bank, and the DRC submitted a files/2013/July2013/FCPC%20framework%20text%207-25-13%20ENG%20web. pdf. request for additional funding. 6 See Resolution PC/14/2013/1 and FMT Note 2013–1 rev. 28 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT BOX 2. THE PURPOSE AND SCOPE OF THE READINESS ASSESSMENT The assessment provides an opportunity for REDD+ countries to demonstrate their commitment to REDD+. The assessment helps countries identify remaining gaps and further needs, and generates feedback and guidance to countries from multiple stakeholders and the FCPF PC. The scope of the R-Package and its assessment is national and encompasses all core readiness activities (regardless of financing source—the FCPF or other development partners), including REDD+ organization, consultation, and strategy preparation, design of reference levels and monitoring systems, as well as cross-cutting issues such as governance, and environmental and social safeguards. In that way, the R-Package captures the important relationships among different readiness preparation activities and helps to ensure consistency across components. The preparation of the R-Package is a beneficial step for any REDD+ country that has advanced in REDD+ readiness as it serves multiple purposes. It provides a country with the opportunity to: • Assess progress on readiness preparation • Demonstrate national commitment to REDD+ • Participate in the FCPF CF (eligibility requirement, among others) • Focus readiness preparation activities going forward • Display transparency in readiness preparations • Assure national and international stakeholders that potential social and environmental risks are being addressed • Receive international recognition for early REDD+ activities • Receive valuable feedback and technical guidance through a two-step assessment process (as described above) • Potentially attract additional funds from external sources for scaling up activities While the FCPF Readiness Assessment Framework does not define universal requirements for REDD+ readiness, it nonetheless gives a good sense of what is important and essential for REDD+ readiness. The Readiness Assessment is not a pass-fail exercise: It identifies core aspects the PC of the FCPF considers essential for readiness and poses a series of questions that capture the desired outcomes of readiness preparation activities. Because circumstances are different in each country, it is designed to help countries assess their relative progress. The R-package process is voluntary and not a reporting requirement under the FCPF Readiness Fund. It becomes mandatory if a country aims to participate in the Carbon Fund—that is, a country’s R-Package needs to be endorsed by the PC before an Emission Reductions Program Document (ERPD) can be considered by the CF. The R-Package, and the outcomes of its assessment, will provide the CF with additional information to ensure consistency of an ER Program with the national REDD+ readiness preparations and of ER Program activities (likely to be of subnational scope) with overarching safeguard requirements. With its comprehensive overview of the progress made in REDD+ readiness, the R-Package can also be used by REDD+ countries to attract additional funds from external sources for scaling up activities, or by donors or other international initiatives as a tool to gauge progress on REDD+ readiness and to inform decision making on support for REDD+. Noteworthy was the DRC’s achievement in leveraging All of the DP reports (Grant Reporting and Monitoring) for the multiple sources of REDD+ funding and coordinating the use of nine countries that have entered the readiness preparation funds in a highly effective manner through the national REDD+ stage indicate that readiness preparation grants overall are well coordination cell. PC members and reviewers further noted the aligned, and progressing according to readiness objectives to be progress made with the adoption of a regulation on pilot projects achieved with FCPF support, as per approved grant agreements. and on the design of a national registry, early ideas presented on a potential grievance mechanism, and the continued dialogue Output-level Indicator 1.3.c: Percentage of countries that are with IP and CSOs, which has been carried out as part of the overall achieving planned milestones for subcomponent as readiness process. However, the PC requested that a number per country annual reporting scale of issues be addressed prior to the release of the additional $5 The target to be met for this indicator at the portfolio level is: million of grant financing for readiness activities. The additional By 2015, 50 percent of countries implementing R-PPs show grant is expected to be signed at the beginning of the next fiscal performance (at the subcomponent level) that is “Progressing well year (FY14). further development required” in 50 percent of subcomponents. The current status is as follows: Seven of the 11 countries Output-level Indicator 1.3.b: Percentage of countries that are with signed grant agreements (includes Mozambique and achieving planned milestones according to approved Uganda, which signed at the beginning of FY14) have reported Readiness Preparation grant (> $3.4 million) FOREST CARBON PARTNERSHIP FACILITY 29 progress at the subcomponent level in the revised reporting format and carried out a self-assessment of progress at the BOX 3: ABOUT THE METHODOLOGICAL FRAMEWORK subcomponent level using the progress scale. Three countries (Costa Rica, Liberia, and Uganda7) are in very early stages of Applying the Methodological Framework: The MF will R-PP implementation (first year or less) and the progress at be used by ER Program Entities in REDD+ countries the subcomponent level is too early for countries to assess. to inform the design and implementation of their ER Three countries (Ghana, the DRC, and Republic of Congo) have Programs; by the FMT and TAP to review ER Program’s overall achieved planned milestones. Nepal has not advanced eligibility and performance; and by CF Participants to at the same level in all subcomponents. Ethiopia, Indonesia, select ER Programs into the CF portfolio (as part of the Mozambique and Vietnam have reported using the old format; selection criteria). hence, it is difficult to assess objectively the progress at the level of subcomponents. REDD+ countries may apply the MF to additional REDD+ activities as a means of attracting funding from other Output-level Indicator 1.3.d: Percentage of countries with (non-CF) sources for scaling up activities. Donors or a disbursement rate that is in line with agreed Readiness other international initiatives may find the MF useful to Preparation grant (> $3.4 million) disbursement plans of inform decision making on REDD+ programs. grant agreement (up to 10 percent variance with plans) Building on readiness preparations: ER Programs in For FY13, 33 percent of countries with signed grant agreements the CF are expected to build on and inform readiness and disbursing (three out of nine) are in line with their planned preparation—including the national REDD+ strategy, disbursements. Cumulative disbursements in the DRC, Ghana, reference levels, monitoring and reporting systems, and Indonesia through the end of FY13 were within 10 percent and environmental and social safeguards. For variance of disbursement plans. The other countries are short example, REDD+ countries are required to undertake of their planned disbursement targets. a SESA, and develop an ESMF for the national REDD+ strategy. The SESA process and its resulting ESMF Output 2.1: Standards and preparations in place for high- provide the national framework within which the ER quality ER Programs discussed and endorsed by CF Program-specific Safeguards and Benefit-Sharing Participants and/or PC Plans are developed and applied. Output-level Indicator 2.1: Number and types of standards and Informing UNFCCC: The CF aims to be consistent management tools discussed and endorsed by CF participants with emerging policy guidance on REDD+ under the and/or PC for ER programs including: UNFCCC and other systems. It does not intend to pre-empt international negotiations on REDD+ but 2.1.a: Methodological Framework and Pricing Approach seeks to provide “real life” practical insights and knowledge generated from REDD+ countries piloting Methodological Framework performance-based mechanisms for REDD+. Piloting of carbon finance transactions through the CF (2013– Over the entire last year, the draft MF was developed, building 20) is expected to significantly inform the development on the Guiding Principles on the key Methodological Framework of a REDD+ system under the UNFCCC. for the Carbon Fund, adopted by the FCPF PC in June 2012.8 The process included presentations on the design of the MF at four Benefitting REDD+ countries: Participating in the FCPF CF and PC meetings, three Working Group meetings, and three CF provides REDD+ countries with the opportunity to REDD+ Design Forums. be a front-runner in innovating on large-scale land- CF Participants decided to use a set of C&I to elaborate based carbon finance, to benefit from new incentives requirements for ER Programs to be piloted in the CF. This for sustainable land use that contributes to sustainable decision was made in consideration of several trade-offs: development goals, to benefit from technical simplicity of methods, flexibility to pilot large-scale approaches assistance and access to cutting-edge knowledge on and encourage innovation, consistency of ERs, and predictability REDD+, and to gain experience to align national REDD+ of assessment of ER Programs. The draft MF consists of 37 frameworks and systems with emerging international criteria and related indicators (C&I), associated with five major aspects of ER Programs: level of ambition, carbon accounting, safeguards, sustainable program design and implementation, and ER Program transactions. Additional operational information and non-binding good practice guidance may be 7 Mozambique and Uganda signed the Readiness Preparation Grant Agreement in July 2013. developed to complement the MF. The MF may be refined over 8 Resolution PC/14/2013/3. time, as pilots are implemented and new lessons learned. 30 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT Looking ahead, the CF Participants are expected to consider and possibly adopt a final draft of the MF at their 8th Countries that have presented early ideas or ER-PINs Table 2:  meeting in Paris, in December 2013. to the CF Meanwhile, the FMT is developing a number of supporting guidance for implementation of the MF. In FY13, work was Country CF2 CF3 CF4 CF5 CF6 CF7 advancing well on guidance on REDD+ Registry development, Early Chile REL, REDD+ cost assessment, and SESA/ESMF online training, Idea among other things. Early Early ER- ER- Costa Rica Idea Idea PIN PIN Pricing Approach Democratic Early Early ER- In FY13, CF Participants discussed a Pricing Approach for the Republic of Idea Idea PIN CF. It was agreed that, under current conditions, fixed pricing is Congo preferred. This might be re-considered, based on the possibility Early Ethiopia of having a relevant price reference. Recognizing the need Idea for capacity building of REDD Country Participants on costs Early Early Indonesia assessment and financial analysis of their ER Programs, a Idea Idea REDD+ Cost Assessment Tool is currently being developed. Early Early Mexico Idea Idea Output-level Indicator 2.1.c: Legal documents (General Early Conditions, ERPA term sheet) Ghana Idea Meeting the target as per the FCPF M&E Framework, the PC Early endorsed the Term Sheet for the FCPF General Conditions of Nepal Idea the ERPA at the 14th PC meeting held in Washington, DC. In Republic Early accordance with the resolution, the FMT presented a first draft of Congo Idea of the ERPA General Conditions at the 15th meeting of the PC in Early Early Early Lombok, Bali. Vietnam Idea Idea Idea Output 2.2: Countries have entered in the portfolio of the CF The feasibility of signing five ERPAs by 2015 depends on Output-level Indicator 2.2.a: Number of early ideas or ER country capacity to design ER Programs that are consistent with Programs presented by countries to the CF the MF and on the World Bank due diligence process. To date, 10 countries have presented an early idea with the aim Output 2.3: Increased levels of private sector investment for to receive early feedback and expert advice on the evolving ER incentivizing, testing, and supporting up-scaling of ER activities program ideas (refer to table 2 below). In FY13, new ideas were presented by Chile, Ethiopia, and the Republic of Congo. The Output-level indicator 2.3: Number of private sector participants first window for submission of Emission Reductions Program in Carbon Fund Idea Notes (ER-PINs) was opened at CF5 in October 2012. In Target: Two new private sector participants by 2014 FY13, two of the early ideas were advanced to ER-PINs. Costa Rica presented its ER-PIN first at CF5, and then at CF6. Costa At the global level, private sector interest in REDD+ seems to Rica thus became the first country to be selected into the CF have diminished somewhat compared to previous years because pipeline at CF6. Subsequently, a LOI was negotiated with Costa of poor policy and regulatory signals and lack of demand for Rica for a contract value up to $63 million and a maximum carbon credits. As a result, the target of bringing two new contract volume of up to 12 million ER. This could make Costa private sector participants into the CF has not been met. Rica the first country to access large-scale performance-based However, private sector engagement in REDD+ is very relevant payments for conserving forests. Having long been a pioneer and there are opportunities to reinforce this engagement at in tropical forest preservation and innovation on green growth, the country and ER Program level. The private sector, both the proposed ER Program would contribute to Costa Rica’s large and small, is a key agent in driving deforestation through ambitious transition to carbon neutrality by 2012. The improved agricultural expansion, land development, and harvesting of management of forest and agricultural land is expected to forest products. Yet, as demonstrated by increasing public contribute as much as 80 percent of its projected carbon ER. commitment to zero-deforestation supply chains, many The DRC first presented its ER-PIN at CF7. CF Participants international companies are now recognizing the value of requested a number of clarifications before they would consider adopting sustainable land use practices to secure long-term it for selection. They further emphasized their desire to review supply chains and reduce investment risk. This provides an ER-PINs in batches, rather than on a rolling basis, to allow for opportunity for the FCPF CF to adopt a targeted approach comparison of ER-PINs. to collaborate with private sector partners on specific FOREST CARBON PARTNERSHIP FACILITY 31 Output 3.1: Enhanced capacity of IP and CSOs to engage in REDD+ processes at the country level FEEDING EXPERT KNOWLEDGE ON FOREST BOX 4:  REFERENCE LEVELS INTO THE DESIGN OF Output-level indicator 3.1.a: (i) Number and type of examples THE METHODOLOGICAL FRAMEWORK of in-country REDD+ actions where IP and CSOs and local A number of expert workshops were held in FY13, communities participate actively which garnered key lessons to inform the development Target: Various new examples exist with strong evidence of IP of the CF MF. One example was the technical workshop and CSO active participation and broad community support in on “Building REDD+ Reference Levels,” which the REDD+ programs/readiness by 2015 FCPF cohosted with the World Wildlife Fund (WWF), in During the earlier stages of R-PP formulation in Thailand, the January 2013, in Washington, DC. engagement of IP and CSOs faced several challenges and a The key messages that came out of the workshop number of stakeholder groups felt excluded from the process. could be summarized as follows: Forest Reference In an effort to rekindle an inclusive dialogue, the government Levels (FRL) are the benchmark against which recently made concerted efforts towards greater social performance in a country (or jurisdiction) is measured. inclusion and participation of IP and CSOs in REDD+. A series of FRL are a central component of REDD+ as they meetings were held among the government, IP, and civil society serve at least two overarching functions critical to to jointly identify the best stakeholder engagement mechanism. the implementation of successful REDD+ national or It was agreed that regional working groups would be formed. subnational strategies: climate integrity (for example, Consequently, the government, with support from the FMT, by demonstrating that ER are additional and not facilitated the creation of REDD+ CSOs/IP working groups in double-counted) and access to finance (enabling the four regions of the country. Working Group Coordinators results-based payments to flow from measurable representing each regional group at the national level have reductions in emissions from deforestation and forest played a key role in working with the government to design and degradation). FRL are also important for planning and deliver a series of regional dialogues with IP and local CSOs on management purposes, more specifically, to identify the draft R-PP. The working groups were formed through a self- areas where intervention strategies need to occur. selection process and each working group developed its agenda Overall, the workshop provided a diverse and of critical issues—such as land tenure, social and environmental neutral forum for countries, states, and civil society to issues in REDD+—to be addressed in the dialogue. Based on the share their experiences in the development of national constructive discussions, recommendations from the working and subnational FRL. Participants from academia, groups have been incorporated into Thailand’s revised R-PP. civil society, the private sector, multilateral REDD+ In Nepal, CSOs and IP organizations working on forestry funds, as well as governmental and intergovernmental and REDD+ have formed a platform, the REDD+ CSOs & IPOs organizations expressed a wide range of views on the Alliance, to discuss and develop a common understanding technical and political aspects of FRL implementation. of REDD+. Since the formulation of the R-PP in Nepal, the Participants discussed topics such as forest Alliance has played a key role for stakeholder engagement classification, scope (land-based versus activity-based by working closely with the REDD+ coordination cell to draft accounting, RED or REDD+), scale (nesting), pools and the consultation and participation component of the R-PP. gases, adjustments and uncertainty. They also garnered The Alliance has also provided concrete inputs to other key lessons to inform the development of the CF MF, as relevant components of the R-PP, more specifically, the social well as the emerging process of FRL implementation and environmental impacts associated with the drivers of and ongoing policy discussions on FRL design. deforestation and forest degradation. As Nepal moves forward with the implementation of its readiness activities, the Alliance continues to be essential for social inclusion. Working with the ER programs and leverage additional capital, operational team of consultants supporting the SESA process, the Alliance resources, technical expertise, and innovation. It also provides is closely engaged in implementing SESA consultations in one an opportunity for policy makers and the private sector to work district. The Alliance further provided important strategic inputs together at the country level to build economic models that are on social and environmental concerns within the country’s sustainable. In the context of REDD+, the private sector can different agro-ecological zones and continues to campaign for provide market access and technical expertise, while the public greater transparency on institutional and policy reform related sector can improve enabling environments and reduce barriers to REDD+ and for meaningful engagement of the Alliance in for private sector investments. other REDD+ readiness activities. 32 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT In Nicaragua, the government organized a series of approved in FY13, following the vendor system applied over the preparatory SESA workshops in 2012 to gather stakeholder past years (three from Asia, three from Africa, nine from LAC). feedback on the proposed REDD+ strategic options. Workshops These 15 grants cover a broad spectrum of activities, from were first held at the regional level in Bluefields and in Bilwi training for carbon monitoring to legal readiness development in the autonomous regions and then at the national level in for local communities. The total represents a significant up- Managua. Additionally, a National SESA workshop was held in scaling compared to previous years. In Latin America, award April 2013, using a differentiated stakeholder methodology to of the grants followed a new, competitive grant process. The guide the discussions in identifying the risks and benefits of nine awards were competitively selected from 20 applications each proposed REDD+ option and the drivers of deforestation. received in a public call for proposals. In Cameroon, IP and civil society participation in the The strengthening of the capacity-building programs has national REDD+ process has been enhanced by a CSO Platform been one of the priority activities identified in the series of for REDD+ and Climate. The Platform has been instrumental in regional dialogues with IP that took place in FY13 and culminated identifying and setting up a registry of forest-dwelling villages, in the second global meeting in Doha, in December 2012, which and has received grants from the FCPF’s CSO Capacity Building resulted in the issuance of the Global Action Plan. The document Program to strengthen its own governance structure, including is owned by the IP and provides a comprehensive and pragmatic better outreach and representation at the local level. roadmap for the engagement between IP and the FCPF. Based on suggestions from indigenous and civil society organizations to enhance their ownership of the programs, it Output-level indicator 3.1.a: (ii) Examples of resources made was decided to change the delivery modalities for FY14 and available to enable active participation of IP, CSOs, and local FY15. Among different options, the proposal that gained most communities in national REDD+ readiness traction was to use regional intermediary organizations to FY 13 has been an important year for the Capacity Building administer the program. To this end, a call for expressions of Programs of the FCPF for Forest-Dependent IP and Forest interest was launched in FY13, resulting in 10 submissions, and Dwellers and for Southern CSOs. During the reporting period, a after a detailed review of the submissions, six organizations record number of grants were approved, and the transition from were selected (see table 3) based on a set of agreed criteria. an individual grant system to a more comprehensive program, These included the organization’s representativeness, regional managed by regional indigenous and CSOs, was initiated. credibility, track record on REDD+, experience in collaborating With regard to the individual capacity-building grants regionally, fiduciary and safeguards capacity, and the capacity to for both IP and CSOs, a total of $1,234,920 for 15 grants was address grievances and provide redress mechanisms. FOREST CARBON PARTNERSHIP FACILITY 33 Intermediary organizations selected for Table 3:  will be supported to complete the necessary fiduciary and implementation of the capacity-building safeguards capacity building and training on relevant World programs in FY14 and FY15 Bank grant procedures and remaining questions. Some of these planning and operational issues were addressed in a workshop Region Indigenous Peoples Civil Society Organizations that took place in Washington, DC, in September 2013. Africa Mainyoito Pastoralist Pan-African Climate Justice Integrated Development Alliance (PACJA) Output-level indicator 3.1.b: Number of IP and REDD+ country Organization (MPIDO) CSO representatives (men/women and/or youth) that have Asia Indigenous Peoples’ Asia Network for Agriculture participated and benefitted from FCPF organized workshops/ International Centre for and Sustainable Bioresources trainings on SESA, governance, MRV aspects/related aspects Policy Research and (ANSAB) of REDD+ Education (Tebtebba) The FMT continues to push the envelope in strengthening the Latin Sotz’il Asociación Coordinadora America Indígena y Campesina de capacity of IP and CSOs related to social inclusion as well as Agroforestería Comunitaria de ensuring greater outreach to a critical mass of IP and CSOs. Centroamérica (ACICAFOC) With the recent regional social inclusion capacity-building workshops in Kenya and Thailand, FCPF program-level targets Each of the six regional intermediary organizations (for IP for training IP and CSOs have already been surpassed. Of the and CSOs respectively) will be responsible for selecting and 115 participants at the two workshops representing IP and supporting small capacity-building projects within their regions. CSOs, 40 percent were women and 5 percent were youths. A general set of eligibility criteria for project selection has been More youths attended the workshop in Thailand. The workshop agreed upon, but regional intermediaries retain the flexibility in Nairobi, Kenya, in December 2012, brought together 60 to adopt a competitive small grants scheme or, alternatively, participants from seven African countries—Ethiopia, Ghana, targeted regional work programs around prioritized topics or Kenya, Liberia, Mozambique, Tanzania, and Uganda. The second themes, depending on the regional context. regional workshop in Bangkok, Thailand, held in April/May To operationalize the flow of funds to the regional 2013, brought together 55 stakeholders from eight Asia-Pacific intermediaries, a number of processing steps related to due countries—Cambodia, Indonesia, Lao PDR, Nepal, Papua New diligence for small and micro grants need to be carried out, in Guinea, Thailand, Vanuatu, and Vietnam. line with World Bank procedures. The regional intermediaries 34 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT It is expected that more than 400 IP and CSO 2012, bringing together 52 representatives from 12 Asian representatives will have been reached by the time the FMT countries. Both regional dialogues also included a large number completes the regional workshops for Latin America (planned of representatives from governments in the respective regions, for December 2013 in Colombia) and for Francophone Africa from CSOs, and from international organizations. The series (planned for March 2014). of regional dialogues culminated in a second global dialogue The fundamental take-away message from these two with IP in the margins of the annual UNFCCC meetings (COP18) workshops is that social inclusion matters because it empowers held in Doha, Qatar, in December 2012, and a follow-up meeting people with knowledge, information, and tools to actively specifically on proceedings of the CF of the FCPF (jointly with engage into the national REDD+ dialogue and shape and CSOs) in Washington, DC, in January 2013. The key outcome influence decisions on institutional and policy reform associated from the meeting in Doha was the finalization of the Global with REDD+. The social inclusion workshops have provided IP Action Plan for IP relating to the FCPF, which puts forward a and CSOs with solid knowledge on how to implement the SESA, set of activities and recommendations aimed at ensuring the how to carry out effective consultations, and how to set up rights of IP within the implementation framework of the FCPF. effective grievance mechanisms at the national level. Building The Capacity Building Program for Indigenous People serves as on participatory approaches as well as South-South knowledge a means to support IP with the implementation of some of the sharing of in-country experiences, these workshops benefited priority activities identified. IP and CSOs with knowledge, tested approaches, ready-to-use The overall discussions at these meetings showed how tools, and solid information on how best to facilitate social much has been achieved over the past two years. Significant inclusion in their own countries. capacity has been built to enable IP’ representatives to Earlier in FY13, a series of regional follow-up meetings to proactively engage in relevant discussions, rather than merely the global dialogue were also held, in line with the Action Plan being on the receiving end of information dissemination. adopted by IP representatives at their first global meeting on Representatives are now actively providing input in highly REDD+ (held in Guna Yala, Panama, in September 2011).The technical aspects of the FCPF’s pioneering work, including first event, the Pan-African Indigenous Peoples’ Dialogue with on the Assessment Framework for REDD+ readiness, on the FCPF, was held in Arusha, Tanzania, in April 2012. In FY13, the Guidelines for Stakeholder Engagement in REDD+ similar regional events took place in Lima, Peru, in August readiness, and on the Common Approach for the application 2013, bringing together 45 IP representatives from 15 Latin of environmental and social safeguards by the multiple DPs of American countries, and in Chiang Mai, Thailand, in September the FCPF. FOREST CARBON PARTNERSHIP FACILITY 35 More generally, the discussion has evolved and focusses on how IP can participate fully and effectively in REDD+ design and benefit from implementation, rather than revolving around the basic question of whether there should be REDD+ or not. IP have taken their collective experiences forward and are now members of national steering committees that guide decision making on institutional, policy, and technical aspects of the REDD+ readiness process in their country. However, the engagement process still remains far from perfect, in particular in large, heterogeneous countries with large, often difficult-to-reach indigenous populations. Here, the question of how well national spokespeople represent their broader constituency groups outside the national capitals and urban centers continues to arise. A divide also remains between traditional decision-making processes of IP and national government processes. Thus far, it has proven difficult to identify culturally appropriate indicators for monitoring effective engagement of IP in REDD+. Another priority concern that continues to be raised in the multi-stakeholder discussions is the question on how to ensure that statutorily or customarily held rights to land are not undermined by REDD+ and that progress is made on securing equitable land tenure reform and benefit-sharing mechanisms as a global agreement on REDD+ is negotiated. At the World Bank, a newly appointed Senior Advisor for Indigenous Peoples and Ethnic Minorities has been closely engaged in the ongoing dialogue. This engagement has helped to raise IP’ concerns related to REDD+ implementation within the World Bank and supported the process of feeding IP’ concerns into the ongoing review of World Bank safeguard policies based on the Advisor’s deep involvement in the public consultation process with IP on the latter. Output-level indicator 3.1.c: Examples of IPs and REDD+ country-CSO representation in institutional arrangements for REDD+ at the national level As a result of the FCPF’s commitment to IP’ engagement, governments are paying increasing attention to effective engagement of IP in national REDD+ planning, in the formulation of R-PPs, and, more recently, in the design of national REDD+ strategies and programs. Based on the FCPF’s efforts and prioritization of social inclusion, IP are now represented in many national institutional arrangements for REDD+, such as national REDD+ technical bodies and steering committees. As a result, they are actively contributing to the planning and design of REDD+ readiness implementation as well as the design of REDD+ programs. The consultative process that a country engages in, starting with the formulation of an R-PP and intensifying during the implementation of the SESA process, fosters the inclusion of IP and local CSOs in institutional arrangements for REDD+. For example, in the DRC, representatives of IP and civil society make up four of the 12 members of the Comité Nationale de REDD+, which is the main policymaking and coordinating body for REDD+ in the DRC. Similarly, in 36 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT Nepal, IP and CSOs are represented on the National REDD+ national ministries, representatives of the two autonomous Technical Committee. In Peru, the government recently regional governments in the Caribbean part of the country, reached agreement with two organizations representing representatives from municipalities and IP, as well as from the IP, the Asociación Interétnica de Desarrollo de la Selva national forces and national police. The second level brings Peruana (AIDESEP) and the Confederación de Nacionalidades together representatives of the sectoral institutions responsible Amazónicas del Perú (CONAP), to establish the Mesa Nacional for land use and forestry, including representatives of the de REDD+ Indígena de Perú. The Platform will be the main Indigenous Territorial Governments under the two autonomous interlocutor between IP and all other actors involved in REDD+ regional governments. Academia and producer associations in Peru. such as cattle ranchers are also included in this second tier. In February 2013, the FCPF’s commitment to social The third level is an open public platform for consultation that inclusion was also recognized within the World Bank with is convened by the government to inform a wider range of the receipt of the “People First Award,” which is awarded stakeholders, gauge public opinion, and gather feedback. annually by the Bank’s Social Development unit to projects and initiatives that have demonstrated excellence in social inclusion, Output 4.1: Knowledge products and lessons from piloting of innovation, and results. REDD+ in general and FCPF activities in particular are developed and disseminated, in accordance with global knowledge Output 3.2: Pilots have been successfully implemented on ways management and communication strategy and annual work plans to sustain and enhance livelihoods and conserve biodiversity During FY13, a number of knowledge products were developed and disseminated both electronically and in print. Key Output-level indicator 3.2.a: Number of countries where knowledge products included: stakeholder engagement platforms proposed in RPPs have taken up work and meet regularly • Guide to the FCPF Readiness Assessment Framework • Brochure on the Readiness Assessment Framework Several countries have established stakeholder engagement • Report on “Linking local REDD+ experiences to platforms and associated innovative processes to deepen national REDD+ strategies” participation and collaboration with a wide range of local, • Report on “Assessment of key governance issues for subregional, and national stakeholders relevant to REDD+. REDD+ implementation in Liberia” In particular, countries in Latin America have advanced such engagement processes in response to active and vocal • Brochure on the Carbon Fund stakeholder groups that are well organized and connected not • Brochure on ER Program Origination only at the national but also at the regional level. • Series of learning videos from Payments for One example is the three-tier structure for stakeholder Environmental Services for REDD+ participation that has been developed in Nicaragua. The • Toolkit on Grievance Redress Mechanism three levels of participation support the development and • FAQ and Flyer on M&E implementation of the National REDD+ Strategy (known in • A virtual platform for experts to share knowledge and Spanish as ENDE-REDD+). The first level includes relevant discuss REDD+ registry development  EVELOPING A DECISION SUPPORT TOOL FOR THE DEVELOPMENT OF REDD+ REFERENCE LEVELS AND DESIGN BOX 5: D OF MRV SYSTEMS Stemming from the UN-REDD/FCPF Country Needs Assessment, work commenced on constructing a decision support tool for the development of REDD+ reference levels and the design of MRV systems. The aim of such a tool is two-fold: (i) to enable REDD+ countries to understand the technical, capacity, and policy implications of the approaches they choose to develop reference levels and design MRV systems, and (ii) to learn from advanced countries how to best tailor tools and training materials, and quickly make them available to all FCPF countries. Work on the decision-support tool has started and will include harnessing existing and emerging resources, information, data, and technical good practices in a user-friendly format, accompanied by learning and capacity-building material that is suitable for REDD+ countries. A number of in-country and regional workshops are scheduled for FY14 to test and improve the tool. The broader benefits of this work are to facilitate informed decisions related to the planning and implementation of RL and MRV technical work, allow countries to make constructive contributions to the UNFCCC process (for example, through submission of RLs), and help practitioners decide what to do first as no-regrets actions. For countries that have expressed interest in the FCPF CF, the tool should help stakeholders formulate clear and coherent ideas for ER Programs using a structured and practically focused approach. FOREST CARBON PARTNERSHIP FACILITY 37 In addition, a new FCPF website was launched and key • A virtual South-South exchange to learn from the sections and content revised for clarity and ease of access to DRC’s experience with REDD+ strategy development information. FAQs were developed for various topics—the CF, • A number of knowledge sessions in the context of the MF, M&E—and incorporated into the website. the PC meetings, among others, on governance A number of in-depth training tools are under development. reforms for REDD+ in Brazzaville, in October 2012, on Two that are expected to become available next year are (i) an implementation of REDD+ safeguards (particularly online training course for safeguards application, with a focus the SESA) in Washington, DC, in March 2013, and on on the process of the SESA and the ESMF; and (ii) a tool to management of REDD+ funds at the national level as assess all relevant cost elements of REDD+, which has been well as lessons from moving from REDD+ projects to tested in a series of country pilots in Colombia, the DRC, and programs and policies in Indonesia, in June 2013 Tanzania. Practical experiences gained in the FCPF also fed into a As countries are making progress with their readiness number of meetings and publications, including the Steering activities and many are expected to reach the mid-term review Committee for the Global Forest Observation Initiative (GFOI) stage of their readiness implementation process sometime and its Advisory Group on the development of Methodological in the next year, there will be increased focus on capturing & Guidance Documentation (MGD) materials, the Global experiences and lessons over the course of next year. Up Observations of Forest and Land Cover Dynamics (GOFC-GOLD), to this point, knowledge to inform national REDD+ strategy and the Center for International Forestry Research (CIFOR). development had to draw mainly on experiences from REDD+ pilot projects but, as countries advance with national-level Output as per PMF 4.2: Participants actively engage in South- readiness implementation, they will start to draw important South learning activities lessons from their respective national readiness processes, enabling them to learn and adjust their strategy. The growing Output-level Indicator 4.2.a: Number of S-S learning activities body of experiences and lessons learned from the readiness and/or events connecting FCPF countries phase will also serve more South-South learning activities in Over the course of FY13, participants were actively engaged in the next few years. about eight South-South learning activities, which included: Output-level Indicator 4.2.b: Total number of participants to • A South-South exchange linking local REDD+ Projects South-South knowledge exchange activities by category to National REDD+ Strategies in Ethiopia • A South-South exchange on National REDD+ Fund Since the FCPF M&E framework was adopted by the PC Management jointly organized with UN-REDD in March 2013, monitoring of participants in South-South knowledge activities by category (female, male, youth, etc.) • A series of Regional and Global Dialogues with has not yet been carried out. However, approximately 400 Indigenous Peoples (refer to Indicator 3.1.B.) participants took part in South-South knowledge exchange • A South-South exchange to share experiences on the activities during FY13; several participants took part in multiple development of data management systems and ER exchange activities. transaction registries BOX 6: TRAINING PRACTITIONERS HOW TO ASSESS THE TOTAL COST OF REDD+ A national training workshop to assess the total costs of REDD+ activities in the DRC was held in Kinshasa, in April 2013, in collaboration with the National REDD+ Coordination and the Regional Post-graduate Training School of Integrated Management of Tropical Forests and Lands (ERAIFT). The objective of the workshop was to train 24 participants from ERAIFT, the Ministry of Environment, Nature Conservation and Tourism (MECNT), the Ministry of Planning, the University of Kinshasa, and civil society in the use of a software tool to analyze the total costs of REDD+ activities in DRC. The last day was dedicated to presenting the results to a broader public. The REDD+ Cost Elements Assessment Tool (RCEAT) has been jointly developed by the FCPF, the World Bank Institute, and UN-REDD (UNDP) since 2010. It is based on the Opportunity Costs as outlined in the REDD+ Manual, a series of country studies in Tanzania, DRC, and Colombia, and regional workshops. The purpose of the tool is to provide REDD+ project or program planners with an economic tool to assess all relevant REDD+ cost elements (opportunity, implementation, transaction, and institutional costs), as well as reference emissions and REDD+ related ER, in a consistent way, and to quantify the total abatement costs of the proposed activity. The tool, and more importantly its application, provides an initial understanding of REDD+ related costs at the national level, in addition to a cost assessment framework of REDD+ at the project level. This tool will be available later this year and can be used in the development of ER Programs. 38 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT BOX 7: LEARNING FROM DIVERSE PILOT PROJECTS TO INFORM NATIONAL REDD+ STRATEGY DEVELOPMENT From April 29 to May 1, an exchange on Linking Local REDD+ Projects to National REDD+ Strategies in Africa was held in Hawassa, Ethiopia, in collaboration with Ethiopia’s Ministry of Agriculture, the Oromia Forest and Wildlife Enterprise (OFWE), and Farm Africa. The meeting brought together a range of stakeholders from 13 REDD+ countries (Brazil, Cameroon, DRC, Ethiopia, Ghana, Indonesia, Kenya, Liberia, Madagascar, Nigeria, Republic of Congo, Tanzania, and Uganda), including representatives from national and local governments, DPs, civil society, and the private sector. To date, the FCPF, UN-REDD, and many other international REDD+ funds have focused primarily on Phase 1 of REDD+, namely building capacity in forest countries to develop the technical and policy infrastructure needed for effective implementation of REDD+ at the national level. However, more recently, REDD+ countries have started expressing a need for more REDD+ pilot projects that offer testing, learning, and help create buy-in from communities, local and central governments. Such on-the-ground activities can be linked to the preparation of national-level REDD+ strategies, but no concerted effort to date has been made to determine how this could be done best. The meeting in Hawassa was therefore a first regional exchange for stakeholders implementing REDD+ at various levels—national, subnational, and project—to share lessons learned and discuss the linkages between different levels. Seven pilot projects implemented by government, civil society, and the private sector were presented. Discussions of the projects focused on how each is tackling drivers of deforestation, linkages with national REDD+ processes, and the challenges and lessons learned from such projects. FOREST CARBON PARTNERSHIP FACILITY 39 SHARING KNOWLEDGE ON NATIONAL REDD+ FUNDS MANAGEMENT BOX 8:  The South-South Knowledge Exchange began in early 2013 as a joint initiative of the FCPF and the UN-REDD Programme to facilitate the exchange of experiences on topics relevant to fund design among countries that are establishing national REDD+ funds. In Bonn, in May 2013, the FCPF and UN-REDD convened a planning meeting where participant countries presented the structure of their national REDD+ funds and identified topics for future work supporting knowledge exchange. These topics include: funds governance; modalities of funds disbursement; links between national funds and strategic goals on REDD+ and climate; sources of funding; and safeguards. Initial participants were Brazil, Indonesia, Ethiopia, Colombia, Vietnam, and the DRC. This dialogue started at an important time, as an increasing number of countries have decided to establish national funds to channel support towards the implementation of REDD+ activities. The ongoing Exchange allows lessons learned to be shared and capacity to be built among the participating REDD+ countries. 40 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT Output 4.3: Strong visibility of REDD+ and FCPF is achieved  OUTH-SOUTH EXCHANGE ON REGISTRIES BOX 9: S Output-level Indicator 4.3.a. Number of neutral/positive FOR REDD+ mentions of FCPF and REDD+ issues in different key media worldwide per X period A South-South exchange brought together technical On average, there are 8–10 neutral or positive mentions each representatives from various countries in Washington, month that specifically reference the FCPF in different media DC, in March 2013 to share experiences, assess worldwide. This number increases exponentially when the country status in the development of data management FCPF releases information in the form of press statements, systems and ER transaction registries for REDD+, press releases, and other communication means. The news and identify priorities moving forward. Participants on the selection of Costa Rica into the pipeline of the CF in included representatives from Brazil (State of Acre), October 2012 as well as the announcement of significant Colombia, Costa Rica, Guatemala, Mexico, Chile, additional donor funding provided to the FCPF by Norway, Ethiopia, Indonesia, as well as from NCRC (an NGO Germany, and Finland, in December 2012, attracted the highest working with Ghana, Kenya, Tanzania, Uganda, and media attention last year. Each event received several hundred Nigeria), Markit, FAO, and VCS. mentions, although it should be noted that this count includes Building on the workshop, the FMT produced a not only original reporting, but also the reuse of stories by draft functional specification with minimum standards secondary media outlets. Monitoring of media coverage over the for the identified building blocks of data management past year confirmed that press releases and blogs reach a much systems and ER transaction registries for REDD+. In broader audience if they are actively promoted via a twitter FY13, work also went ahead on a country needs campaign on an established twitter channel with a large list of assessment with specific input provided by requesting followers, such as the World Bank’s Climate Change Twitter countries (Colombia, DRC, Honduras, Indonesia, account. Mexico, and Peru). Discussions showed that the priority of most Output-level Indicator 4.3.b: Number of negative mentions REDD+ countries lies with procedures and data of FCPF and REDD+ issues in different key media management solutions for REDD+ project/program worldwide per year approval that ensure consistency between the national, jurisdictional, and project scales. Most countries are The general perception is that negative mentions of the FCPF and well aware of the importance of an ER transaction REDD+ issues remained similar to those made the previous year, registry for a future REDD+ mechanism and have although no quantitative comparison is possible for FY13 due to shown interest in pursuing a common approach that the lack of data. Most negative mentions refer to concerns over could lead to the use of a centralized system. A limited insecure land tenure rights as well as risks related to equitable set of countries, among others, Mexico, is interested in benefit-sharing and carbon rights in the context of REDD+. Such pursuing work on national ER transaction registries. concerns are raised in both country-specific articles and articles on thematic pieces. Other negative mentions, although much less prolific, relate to the low disbursement of FCPF funds as well as the gap between countries’ financing needs during the readiness phase and the actual volume of funds provided by the FCPF Readiness Fund. Proactive outreach to key media and provision of notes to editors has contributed to increasingly accurate reporting on the FCPF. FOREST CARBON PARTNERSHIP FACILITY 41 left side page FCPF REDD+ COUNTRY PARTICIPANTS REDD+ Country Participants. 37 REDD+ Country Participants have been selected into the FCPF. 36 have signed the Participation Agreement. The map illustrates the progress within the FCPF of each of the 36 countries as of June 1, 2013. MEXICO HONDURAS PARTICIPATION AGREEMENT SIGNED [36] GUATEMALA NICARAGUA INFORMAL READINESS PREPARATION EL SALVADOR COSTA RICA GUYANA GHAN PROPOSAL (R-PP) PRESENTATION [21] SURINAME PANAMA R-PP ASSESSED BY PARTICIPANTS COMMITTEE (PC) [32] COLOMBIA LIBERIA READINESS PREPARATION GRANT SIGNED [9] MIDTERM PROGRESS REPORT ASSESSED BY PC [1] PERU BOLIVIA PARAGUAY CHILE IBRD 36759R4 ARGENTINA NOVEMBER 2013 This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries. 42 FOREST CARBON PARTNERSHIP FACILITY right side page gutter FY13 ANNUAL REPORT NEPAL LAO P.D.R. THAILAND VIETNAM CAMBODIA NA CENTRAL AFR. ETHIOPIA REPUBLIC CAMEROON UGANDA GABON KENYA CONGODEM. REP. PAPUA OF CONGO NEW GUINEA TANZANIA INDONESIA VANUATU MOZAMBIQUE MADAGASCAR FOREST CARBON PARTNERSHIP FACILITY 43 Coordinating with other REDD+ Initiatives REDD+ has a challenging agenda given its multi-sectoral and multi- stakeholder dimensions, and the large financial and capacity needs involved. It is important, therefore, that development partners come together to provide a package of financial and technical assistance to better serve their client countries. UN-REDD Programme In FY13, the FCPF and the UN-REDD Programme continued their cooperation in providing assistance to countries to get ready for REDD+. Coordination has entailed joint country missions and sharing responsibility for financing readiness activities. At the global level, coordination between the FCPF and the UN-REDD Programme involves joint scheduling of governance body meetings, the harmonization of programmatic documents, the coordination of analytical and capacity- building efforts, and the joint delivery of secretariat services to the REDD+ Partnership. In FY13, several knowledge activities were planned and carried out jointly, including a South-South exchange on management of REDD+ funds at the national level and preparation for an expert workshop on IP in REDD+ processes, among others. Further, a joint Knowledge Day is being organized in conjunction with the next UN-REDD Policy Board and FCPF Participants Committee meeting, and will bring together over 200 participants and stakeholders from both initiatives to jointly reflect on progress and achievements made with REDD+ readiness as well as implementation since the two initiatives became operational 5 years ago. Forest Investment Program The Forest Investment Program (FIP) supports developing country efforts to reduce deforestation and forest degradation, and promote sustainable forest management that leads to ER and enhancement of forest carbon stocks (REDD+). The FIP focuses on sizable investments in a smaller number of key countries in order to achieve economic transformation and generate global knowledge. The FIP is currently active in eight pilot countries (Brazil, Burkina Faso, the DRC, Ghana, Indonesia, Lao PDR, Mexico, and Peru), most of which are also FCPF REDD Country Participants (with the exception of Brazil and Burkina Faso). Implementation at the country level is based on FIP investment plans that have been developed through a country-led process and that build on FCPF readiness or equivalent processes and draw on the R-PPs and the emerging REDD+ strategies. Coherence and cooperation across the different FIP and FCPF activities have been achieved especially in the DRC, Ghana, Indonesia, and Mexico, as governments ensure that activity planning is closely coordinated between the two initiatives. At the secretariat level, the FCPF is an observer to the FIP governing body and has shared pertinent information with the Committee, for instance, on the FCPF Readiness Assessment Framework. FIP has equally participated in the PC meeting in Lombok and presented an update of implementation activities in FIP countries, which are also supported by the FCPF Readiness Fund. The FIP has further continued taking advantage of the established FCPF roster of experts for the independent review of investment plans prior to their endorsement by the FIP Sub-Committee. The FIP has commissioned an in-depth study on the link between REDD+ readiness and implementation in FIP pilot countries. The report will analyze in detail the REDD+ activities supported through readiness mechanisms, such as FCPF, and the advancements in identifying, preparing, and implementing investments prioritized through national REDD+ processes in the eight FIP pilot countries. BioCarbon Fund The BioCarbon Fund (BioCF) is a public-private carbon fund, operational since 2004, that pioneers projects that sequester or conserve carbon in forest- and agro-ecosystems, mitigating climate change and improving livelihoods. The overall goal of the Fund is to demonstrate that land-based activities can generate high-quality ER with strong environmental and socio-economic benefits for local communities. In the first-generation trust funds, about 80 percent of the BioCF’s 44 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT resources were earmarked for afforestation and reforestation projects under the Clean Development Mechanism; the remainder was allocated to REDD+ and sustainable land management projects. BioCF projects have a range of different objectives, including fuel wood production, timber production, and environmental restoration. With the development of 10 CDM-approved methodologies and a variety of capacity and outreach activities, the BioCF has actively promoted the development of the forest carbon market and pioneered forest carbon transactions on the basis of local know-how. The BioCF delivered 80-90 percent of the carbon assessts to its Participants. Most of the carbon assests will be used to meet compliance targets under the UNFCCC’s Kyoto Protocol, which ended in 2012. Leveraging lessons and experience from a successful track record on project-based carbon finance in the land-use sector, the BioCF embarked on a new initiative in FY13. The Initiative for Sustainable Forest Landscapes (ISFL) is a new, multilateral facility that promotes and rewards reduced greenhouse gas emissions from the land sector, including REDD+, more sustainable agriculture, as well as smarter land use planning and policies. ISFL will help countries identify and promote climate-smart agricultural and low-carbon land-use practices in selected geographical areas where agriculture is a major cause of deforestation. The initiative will build a portfolio of jurisdictional programs spread across diverse geographies that have significant impact and transform rural areas by protecting forests, restoring degraded lands, enhancing agricultural productivity, and by improving livelihoods and local environments. REDD+ Partnership The REDD+ Partnership—for which the FMT serves as Secretariat, jointly with the UN-REDD Programme Team—takes REDD+ issues outside of negotiations to advance progress on REDD+ and tap the knowledge of various constituencies. The FMT worked closely with the UN-REDD Programme Team and the rotating Partnership co-chairs to organize Partnership meetings in FY13; each brought together approximately 100 country partners and stakeholders. In June 2013, in Bonn, Germany, the Partnership adopted the work program for 2013–14 for the REDD+ Partnership, which was initially discussed in Doha, in December 2012, and is based on the REDD+ Partnership Agreement adopted in Oslo, in May 2010. The work program has five components aimed at: (i) facilitating readiness activities through knowledge exchange; (ii) facilitating demonstrating activities by capturing experiences and lessons learned; (iii) facilitating results- based actions through better analysis of the main aspects; (iv) facilitating the scaling up of finance and actions by promoting the effective deployment of REDD+ support and finance to address gaps in REDD+ finance; and (v) promoting transparency and communication through information sharing and knowledge exchange. Several workshops were held during FY13, including in Colombia (July 2012), Thailand (September 2012), Congo Basin (September 2012), Qatar (November 2012), and Bonn (June 2013). These workshops brought together practitioners to discuss key issues such as safeguards, monitoring, reference levels, financing options, and drivers of deforestation and forest degradation. The REDD+ Partnership also received additional funding of $1 million from Germany. FOREST CARBON PARTNERSHIP FACILITY 45 Due to slow progress in the REDD+ negotiations under the UNFCCC and the lack of certainty in the compliance market for ER more broadly, it has proven difficult to find private sector entities willing to invest financially in the Fund, even from the perspective of corporate social responsibility. 46 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT 5 Issues and Challenges The overall progress on FCPF outputs and outcomes as intended for the FY13 reporting period has been satisfactory. Some of the challenges identified in this reporting period are described below. 5.1. Disbursements seven FCPF countries with signed agreements have supported the hiring of a procurement specialist. In addition, staff from One of the challenges has been the slow disbursement under project management teams has been trained in procurement the Readiness Fund of the FCPF. The cumulative disbursement procedures. The FMT has also made available the terms of of readiness grants by REDD+ countries through June 2013 is reference for readiness activities on the FCPF website, for easy $9.85 million, of which the disbursements for the period July access by other countries. 2012 through June 2013 (FY13) is $4.92 million, compared In the coming year it is expected that the disbursements to disbursements of $2.68 million in the previous fiscal year will increase significantly, as the target number of countries (FY12). For the first quarter of FY14, disbursements already with signed grant agreements is expected to rise from 9 to 24 stand at $2.1 million, which suggests that disbursements by June 2014. Cumulative disbursements of readiness grants will continue their upward trend in FY14, especially as more to REDD+ countries by the end of FY14 is estimated to be countries sign readiness grant agreements. $21.29 million, thanks to the signing of new grants and higher However, during the FY13 reporting period, only three of disbursements in REDD+ countries that have been in readiness the nine countries that had a signed grant agreement by the preparation and are expected to disburse with the completion of end of FY13 met the forecast target for indicator 1.3.d, related to the major readiness activities and other deliverables in FY14. disbursements. Against the 60 percent target, only 33 percent of REDD+ countries have a disbursement rate that is in line (i.e., Proposed actions to be taken: within a 10 percent variance) with their disbursement plans as The slow pace of readiness grant disbursements has remained per agreed Readiness Preparation grant (> $3.4 million). one of the key challenges in FY13. Although an upward trend The PC recognized the need to increase total is anticipated for FY14, the FMT will solicit PC feedback at disbursements, which will require a greater focus by countries the annual meeting on possible measures to accelerate themselves to execute national REDD+ activities. A session at disbursements in the coming years. It will also include the pre-PC workshop at the PC meeting held in March 2013, recommendations in the work plan for FY15 or undertake in Indonesia, was dedicated to understanding the reasons follow-up action in the form of interim measures in FY14. for the relatively slow disbursements, and finding ways to increase disbursements of readiness grants. A select number of REDD+ countries with a signed grant agreement shared their Endorsement of the ERPA General Conditions 5.2.  experience at this pre-PC workshop and cited the following issues as the main reasons for the slow start on readiness The ERPA General Conditions had been expected to be endorsed activities and the resulting slow disbursements: lack of by PC16 as the idea was that the discussions on ERPA General procurement capacity in the REDD+ project management units Conditions and the MF would proceed in parallel. However, some in REDD+ countries, inadequate understanding of World Bank issues (such as addressing non-permanence and title to ER) have procurement rules, and lack of experience with the drafting of implications for the ERPA and need to be agreed upon in the MF terms of reference for the key readiness activities. The lack of before the ERPA General Conditions can be endorsed by the PC. procurement capacity is being resolved in several countries by hiring a procurement specialist for the project management Proposed actions to be taken: units in REDD+ countries. Most of the FCPF countries The ERPA General Conditions will be presented for endorsement recognized upfront the need to enhance their in-country by the PC once the MF has been approved by the CF Participants. procurement capacity, and readiness preparation grants in It is expected this milestone will be reached by PC17. FOREST CARBON PARTNERSHIP FACILITY 47 Country-Level M&E Frameworks and 5.3.  necessary. This would help streamline reporting at the FCPF Readiness Reporting program level. Following endorsement of the program-level M&E Framework by the PC in March 2013, the FMT initiated The annual reporting by the FMT on outcomes and outputs piloting of M&E Frameworks in a few FCPF countries (Nepal, as per the FCPF’s M&E Framework requires a robust Liberia, Kenya, and Costa Rica). The FMT also solicited reporting framework at the country level. The PMF outlines feedback from REDD+ countries on the type of support all indicators where country level information has to be countries would need to develop and operationalize the M&E aggregated to facilitate portfolio-level reporting. All FCPF Framework, but the response rate was low. REDD+ countries are further expected to operationalize the national level M&E Frameworks early in their readiness Proposed actions to be taken: phase. Preparation of national level frameworks will need Building on the earlier piloting efforts, the FMT will reach to be expedited urgently, with support from the FMT if out to REDD+ countries again to solicit suggestions and 48 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT feedback for supporting national efforts on preparation of M&E to find private sector entities willing to invest financially Framework and reporting. In FY14, the FMT will also provide in the Fund, even from the perspective of corporate social increased assistance to countries in preparing annual country responsibility. reports as well as semi-annual updates. Proposed actions to be taken: 5.4. Private Sector Engagement Looking ahead, the FMT will only invest time and resources The FCPF had intended enhancing the engagement of private in engaging private sector investors if there is substantive sector participants in the CF, aiming for two new private sector progress on REDD+ at the international level. However, participants by 2014. Due to slow progress in the REDD+ it is important to note that the FCPF is engaging with the negotiations under the UNFCCC and the lack of certainty in the private sector in other ways, for instance, through targeted compliance market for ER more broadly, it has proven difficult engagement for the development of ideas for ER Programs. FOREST CARBON PARTNERSHIP FACILITY 49 50 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT 6 Monitoring of Assumptions and Risk An assumption in most cases indicates areas/circumstances that are beyond the control of the governance framework of the FCPF. However, tracking of assumptions is important to gauge unforeseen consequences in case the assumptions did not hold true. The following table presents a snapshot of assumptions unforeseen consequences in case the assumptions did not identified in the Log Frame against key impacts, outcomes and hold true. Reference to the impact, outcome and output where outputs, the level of risk associated with these assumptions, the assumption was referenced in the Log Frame of the M&E and the proposed mitigation measure as relevant. An Framework is included in Column 1 of the table. assumption in most cases indicates areas/circumstances that A second table with new risks that were previously not are beyond the control of the governance framework of the identified in the Log frame is also included. FCPF. However, tracking of assumptions is important to gauge Level at which Current assumption is Original assumptions level Explanation of Mitigation referred to in LF from LF of risk risk rating measure proposed Impact 1.1 Global climate change Medium The progress in the The risk associated with Outcome 1 negotiations under UNFCCC negotiations has been slow this assumption is beyond Output 2.3 remain supportive. over the last year and the the direct control of the Outcome 3 timeline for decisions and FCPF. The FCPF continues Outcome 4 further guidance on REDD+ is to remain responsive and Output 4.3 uncertain. to inform the negotiation process. Outcome 1 The incentives provided Low The risk relates to incentives No mitigation measure is Outcome 3 by REDD+ schemes are for countries to advance required at this stage. Outcome 4 sufficient. to the Readiness Package, stakeholder engagement, and knowledge dissemination of experiences. Sufficient resources are available to countries through the FCPF, other bilateral and multilateral resources to advance to the R-Package, while maintaining adequate levels of stakeholder engagement. Outcome 1 For purposes of the N/A - The assumption does not Readiness Fund, submission require monitoring. of the R-Package by REDD+ Participants is voluntary. Outcome 1 There are no extraordinary Low At the portfolio level, only No mitigation measure is circumstances in the a small percentage of required at this stage at country that prevent countries have socio-political the portfolio level. submission of RPs. circumstances that could slow submission of the R-Package. FOREST CARBON PARTNERSHIP FACILITY 51 Level at which Current assumption is Original assumptions level Explanation of Mitigation referred to in LF from LF of risk risk rating measure proposed Output 1.2 Plans and targets were Medium/ In some countries the signing DPs are providing support realistically assessed by High of grant agreements following to help countries address technical experts before R-PP endorsement by the the comments from expert approval in view of existing PC has taken longer than reviews, where the delays baseline capacities and anticipated. are on account of technical participant countries’ issues. The FMT will take contexts. measures to track issues early on. Delays due to other reasons, such as internal re-organization within country, cannot be mitigated by the DP. Output 1.3 The political and socio- Low The overall risk at the The diversity of REDD+ economic context in the portfolio level associated countries in the portfolio Participant countries with the political and is a built-in mitigation remains stable enough over socio-economic context for measure. the implementation period readiness implementation so that the capacity built remains low. remains in place. Outcome 2 Interest in performance- Low The interest of donors in The risk will be monitored based payments remains performance-based payments continuously in the high enough. schemes has been high in the forthcoming periods. reporting period. Interest in performance-based payments by REDD+ countries is evident from the first expressions of interest of ER-PINs to the CF. Output 2.2 A large enough number of Medium The assumption is in relation Piloting of the MF in countries have the capacity to the likelihood of countries the first few REDD+ to meet all standards and entering the CF portfolio. The countries is proposed and FCPF/DP administrative risk rating is subjective and will provide a realistic processes do not put undue based on the early feedback assessment of country burden on the CF operation. from REDD+ countries in the capacity to meet the course of the development of standards. the MF. Output 2.4 Five REDD+ countries have Medium/ The successful selection The business process signed ERPAs by 2015 High of ER-PDs will indicate the (under preparation) is timelines for ERPA signing realistic. and program implementation. This indicator will be monitored closely in FY14. Output 3.1 Relevant guidelines in the Low The SESA process is starting At the portfolio level, Common Approach are to be rolled out in readiness some stakeholder followed and processes implementation in several groups identified a need such as SESA are actually countries. to enhance in-country implemented in countries, understanding of the SESA. providing for a receptive Among other efforts, the environment. FMT has held regional- level, social inclusion workshops to mitigate this gap and ensure proper SESA implementation. Output 4.2 Events managed directly Medium There is diversity in the FCPF Countries continue to by countries (not organized portfolio on how events are enhance communication by FMT itself) are timely managed at the country level. and stakeholder and effectively planned to Assessment is based on engagement capacity feed into the process of feedback. through readiness grants learning and involve key and other bilateral stakeholders. sources. 52 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT New risks/previously unidentified risks that have a Mitigation measure proposed bearing on annual work planning and intervention logic Weak procurement capacity has delayed the start of readiness 1.  Readiness grants are recipient-executed and are supporting the hiring implementation in some countries. of procurement experts and/or the procurement training needs of relevant staff of national REDD+ coordination office. Reduced interest of private sector in REDD+ at the country level. 2.  Countries encourage a dialogue with relevant private sector companies in the design of ER Programs and REDD+ strategy preparation. FOREST CARBON PARTNERSHIP FACILITY 53 As increasing numbers of REDD+ countries (nine as of the end of FY13) move into R-PP implementation— getting ready for REDD+— and, as the development of the pipeline of the Carbon Fund gets underway, the annual expenditures and disbursements of both funds are increasing as forecast. 54 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT 7 FY13 Financial Report of the Facility The PC is responsible for approval of the annual budget for the Readiness Fund and the “Shared Costs” of the Facility, while the participants of the Carbon Fund are responsible for approval of the annual budget for the Carbon Fund as a separate trust fund. 7.1. Budget Approval Process Pursuant to the Charter, the Readiness Fund pays 65 percent and the Carbon Fund pays 35 percent of Shared Costs, With five fiscal years of Readiness Fund and two of the Carbon unless the PC decides otherwise. The PC approved resolutions Fund operation now complete, the budgetary, expenditure, and waiving cost sharing through the end of FY11 (to reflect the financial planning processes within the Facility have become fact that the CF was only fully operational as of May 2011) and more systematized. As increasing numbers of REDD+ countries paying 100 percent of the Shared Costs from the Readiness (nine as of the end of FY13) move into R-PP implementation— Fund. In addition, the PC agreed that cost sharing at the 65/35 getting ready for REDD+—and, as the development of the level would apply from FY12 onward. However, there is an pipeline of the Carbon Fund gets underway, the annual important caveat in Resolution PC/8/2011/8, approved in March expenditures and disbursements of both funds are increasing 2011, in that the PC agreed to a lifetime cap of $12 million on as forecast. The expansion to other DPs in the Readiness Fund the Shared Costs that it will charge to the CF. This resolution has inevitably involved additional complexity in the financial responded to the concerns of several existing and potential processes. On the upside, as the other DPs move into action, CF Participants that an upward limit be placed on such costs, financial commitments and disbursements will accelerate. For given that the PC otherwise makes all decisions regarding their example, in FY13 alone, an additional $11.4 million in funds was composition and annual approvals. disbursed to DPs for grants. The budgets for both the Readiness Fund and the Carbon Fund are based on the World Bank’s fiscal year (beginning 7.2. The Readiness Fund July 1) and are approved annually in accordance with the FCPF Charter. The PC is responsible for approval of the annual budget 7.2.1. Funding Sources for the Readiness Fund and the “Shared Costs” of the Facility, The Facility continued to grow in financial terms during FY13, with while the participants of the Carbon Fund are responsible the Readiness Fund receiving donor contributions of $30 million for approval of the annual budget for the Carbon Fund as a over the past year. Table 4 presents the committed contributions separate trust fund. Both budgets are usually approved in June for the Readiness Fund as of the end of FY13. Although total of the preceding fiscal year. signed Donor Participation Agreements amounted to $258.2 To date, the PC has approved six budgets for the Readiness million, some of the agreements included a phased contribution Fund for FY09–FY14, along with amendments and revisions to into the Readiness Fund spread out over a few years. those budgets during each fiscal year. Three annual budgets In FY13, $30 million cash was received into the Readiness have been approved for the Carbon Fund (FY12, FY13, and FY14). Fund. This was made up of $5.3 million from Finland, $13.1 Informal guidance was sought by the FMT for developmental million from Germany, $7.6 million from the Netherlands, and expenditures prior to that time (before the Fund became fully $4 million from the United States of America. This addition to operational). the $212.6 million in cash received in the previous four fiscal As part of the approval of the Readiness Fund budget, the years brought the total cash contributions through the end of FCPF Charter indicates that the PC shall make decisions on all FY13 to $242.6 million. This leaves outstanding commitments Shared Costs for activities that cut across and benefit both the of $15.6 million from existing signed agreements to be paid by Readiness and Carbon Funds. In practice, the Shared Costs have the European Commission ($2.6 million) and Germany ($13.1 typically included FCPF Secretariat and REDD+ Methodology million) into the Readiness Fund in the coming years. Support activities, such as the costs of travel and expenses for The total contributions of $258.2 million compares to a REDD Country Participants to attend the Participants Assembly total as of the end of FY12 of $239.4 million. This represents an and PC meetings and the work of the TAPs. increase in committed funding during FY13 of more than FOREST CARBON PARTNERSHIP FACILITY 55 ommitments to the Readiness Fund as of June 30, 2013 (in $ thousands) Table 4: C Participant Name FY09 FY10 FY11 FY12 FY13 FY14–16 Total Australia 9,565   7,997 6,330     23,892 Canada     41,360       41,360 Denmark   5,800         5,800 European Commission       2,688   2,560 5,248 Finland 8,956     5,749 5,261   19,966 France 4,612 592   5,136     10,340 Germany     25,956   13,113 13,056 52,125 Italy     5,000       5,000 Japan 5,000 5,000   4,000     14,000 Netherlands 5,000     7,635 7,635   20,270 Norway 5,000 16,398 8,801       30,199 Spain 7,048           7,048 Switzerland 8,214           8,214 United Kingdom     5,766       5,766 United States 500 4,500     4,000   9,000 Committed Funding 53,895 32,290 94,880 31,538 30,009 15,616 258,228 $19 million, with additional contributions of almost $14 million FCPF Readiness Fund Annual Expenditures Table 5:  from Germany and $5.3 million from Finland. (in $ thousands) 7.2.2. Funding Uses FY09 FY10 FY11 FY12 FY13 Activities Actual Actual Actual Actual Actual a) Cash Disbursements Readiness Trust 471 362 366 356 404 As the FCPF moves ahead in the implementation phase, annual Fund Administration expenditures have also generally increased, especially in areas FCPF Secretariat 988 1,321 1,685 2,056 1,690 with a focus on country support. This is the case for the REDD Methodology Support, Country Advisory Services, and Country REDD Methodology 828 1,266 1,921 999 1,841 Support Implementation Support activities. In FY13, the PC approved a somewhat larger budget for operational and administrative Country Advisory 801 793 545 1,073 1,750 support to REDD+, in part to reflect the growing staffing capacity Services of the FMT, in part to reflect the growing program to support IP Country 409 1,660 1,904 1,701 3,213 and CSOs, and in part to reflect the anticipated use of DPs other Implementation than the World Bank. The small increase in Fund Administration Support is attributed to the development of the FCPF M&E Framework. IP and CSO       267 1,089 Table 6 shows the evolution and status of the FY13 budget. Program While an original budget of $12.8 million was approved at PC12, Total Readiness 3,497 5,402 6,421 6,452 9,987 the approval of supplemental funding for additional activities Fund (including increased the overall envelope by $1.32 million, from $12.8 million Carbon Fund to $14.1 million. With the additional budget approved during the Shared Costs) year, the FMT would provide workshops on social inclusion, a Less: Carbon Fund South-South exchange on REDD+ Financing, as well as advance Shared Costs       (1,069) (1,236) work on registries, Reference Levels, and MRV systems. These programs fall under the categories of REDD Methodology Support Total Readiness Fund 3,497 5,402 6,421 5,383 8,752 and Country Advisory Services. For the full list of additional activities approved refer to resolution PC13/2012/4. 56 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT FCPF Readiness Fund Expenditures by Activity for FY13 (in $ thousands) Table 6:  Original Revised Actual Expense Activities Budget Budget Expense Variance Rate (%) Readiness Trust Fund Administration 443 443 404 39 91 FCPF Secretariat 1,456 1,456 1,690 (234) 116 REDD Methodology Support 1,338 2,088 1,841 247 88 Country Advisory Services 1,045 1,618 1,750 (132) 108 Country Implementation Support 5,943 5,943 3,213 2,730 54 IP and CSO Program 2,590 2,590 1,089 1,501 42 Total Readiness Fund (including Carbon Fund Shared Costs) 12,815 14,138 9,987 4,151 71 Less: Carbon Fund Shared Costs (978) (1,240) (1,236) (4) 100 Total Readiness Fund 11,837 12,898 8,752 4,147 68 Figure 2 compares the FY13 final budget with the actual As per table 6, Readiness Fund Administration costs were expenditures by activity on a cash basis. The final budget for the $404,000, or about 91 percent of the $443,000 budgeted in FY13. Readiness Fund net of Shared Costs of $12.9 million compares These costs reflect the work of all World Bank staff involved in to the total Readiness Fund expenditures for the year of $8.75 Fund management, contributions management, accounting, million. The fiscal year therefore closed with spending at 68 legal, and other services required by the Readiness Fund percent of the final budget and $4.1 million unspent. The largest Trustee. A new activity under this category was the development share ($2.4 million) of the underspend is due to the delayed of the M&E Framework for the FCPF. signature of the DP Transfer Agreement with UNDP. The FY13 FCPF Secretariat expenses were $1.69 million (or 116 budget for Country Implementation Support assumed that the percent of budget), compared to the budget of $1.46 million. implementation costs for six countries would be transferred to Expenditures included the standard costs for program UNDP during FY13. A smaller transfer for three countries was management, organization of the annual Participants Assembly finally made in early FY14. and PC meetings, and travel costs for REDD+ Country Another large share of this underspend ($1.5 million) Participants to those meetings. Increasingly, knowledge and relates to the IP and CSO Capacity Building Program. The learning events on REDD+ and other key partner meetings (for budget for this Program for FY13 of $2.6 million includes example, the UN-REDD Programme or REDD+ Partnership) are support through contracts/grants of $1.7 million, including jointly organized to maximize the use of participant time and to a carry-over of grants from FY12. The unspent balance on keep overall costs as low as possible. FCPF Secretariat costs contracts/grants has again been carried over to future financial in FY13 included the cost of hosting and maintaining the FCPF years. The principal reason for this underspend is the change to Web site, strengthened communications to FCPF stakeholders, a new process and structure, whereby IP and CSO Communities and expanded translation of FCPF materials. Secretariat costs administer the Capacity Building program themselves through at $1.69 million, while over budget for FY13, are less than the six Regional Intermediaries (three for IP groups and three for previous year’s costs of $2.1 million. CSO groups). With the budget for REDD Methodology Support activities set at $2.1 million in FY13, and total expenditures at $1.8 million, Figure 2: FY13 Budget Performance (in $ thousands) spending was 88 percent against FY13 plans. The principal reason for this underspend was the deliberate hold-over of work on 5,943 6000 Revised Budget Reference Levels and MRV, awaiting greater clarity on the Carbon Actual Expense Fund Methodological Framework. Costs reflect the expenses of 5000 the independent TAPs supporting the FCPF (consulting contracts, 4000 travel, and meeting costs), including the Carbon Fund TAP, 3,213 and the considerable work on the Pricing and Methodological 3000 2,590 Framework, including costs of the Methodological Framework 2,088 2000 1,456 1,690 1,841 1,618 1,750 Working Group and Design Forums. 1089 The related line item for Country Advisory Services came 1000 443 404 to about $1.75 million, or about 8 percent over the amount 0 originally budgeted in FY13 of $1.6 million. The majority of these Readiness FCPF REDD Country Country IP and CSO Trust Fund Secretariat Administration Methodology Support Advisory Implementation Program Services Support costs came from FMT, forestry, and social development staff FOREST CARBON PARTNERSHIP FACILITY 57 advice and guidance to REDD+ Country Participants on their Table 7: Grant Disbursements to end FY13 (in $ thousands) programs. This included development of the R-PP Assessment Framework and SESA and consultation processes, as well as Total to the sharing of cross-country experiences. This increased level Description Total FY13 FY12 of spending (compared to about $1.1 million in FY12) largely Formulation Grants       reflects the fact that more FMT staff worked in-country with REDD+ countries to develop and share guidance and further AFRICA       develop individual country experiences. The overspend of Cameroon 192 134 58 $132,000 includes approximately $70,000 in work on social DRC 191   191 inclusion, $20,000 on benefit-sharing research, and the Ethiopia 200   200 remainder on a mixture of travel for closer country support and R-PP Assessment Framework Development. Ghana 200   200 Costs for country implementation support totaled $3.2 Kenya 170   170 million, or 54 percent of the planned budget. In previous Liberia 182   182 periods, this line item reflected the direct assistance of World Bank country teams to REDD+ Country Participants, including Mozambique 87 87   technical assistance, grant supervision, and assessments Republic of Congo 195   195 provided to the PC. Now that agreements have been formalized Uganda 166   166 with the new DPs, the costs of country implementation support AFRICA subtotal 1,583 221 1,362 include the costs incurred by partner institutions beyond the World Bank. While spending and activities were generally at LATIN AMERICA & CARRIBEAN the levels anticipated at the start of FY13, as mentioned earlier, most of the underspend is due to the delayed signature of the Colombia 200   200 DP Transfer Agreement with UNDP. Costa Rica 161   161 b) Grant Disbursements El Salvador 150 98 52 An important aspect of the Readiness Fund from its inception Nicaragua 200 77 123 has been that it makes available grant funding to countries— LATIN AMERICA & 711 175 536 the grants are now up to $3.8 million per REDD+ Country CARRIBEAN subtotal Participant—in support of country-led readiness work. The REDD+ Country Participants manage and utilize the grants EAST ASIA & PACIFIC       for REDD+ activities and expenses, which are counted as Indonesia 200 60 140 disbursements in World Bank financial statements only after the REDD+ Country Participant completes reimbursement from Lao PDR 173   173 the grant resources. By the end of FY13, 18 R-PP Formulation Thailand 200 163 37 Grant Agreements had been signed, with 14 of them fulfilled and the remainder actively disbursing. Nine Readiness Preparation Vanuatu 127 106 21 Grants had also been signed; of those seven had disbursements EAST ASIA & 700 329 371 in FY13. These signed agreements represent firm commitments PACIFIC subtotal of approximately $35.4 million. Against these signed grants, approximately $4.9 million in disbursements were fully SOUTH ASIA       processed and expensed by REDD+ Country Participants Nepal 200 200 during the fiscal year (see table 8), bringing the total grant SOUTH ASIA subtotal 200   200 disbursements through the end of FY13 to $9.85 million. Total Formulation Grants 3,194 725 2,469 58 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT Table 7: (continued) FY13 Financial Statement for the Readiness Fund Table 8:  (in $ thousands) Total to Description Total FY13 FY12 Item Amount Preparation Grants       Beginning Balance 189,999 AFRICA       Donor Contributions 30,009 DRC 2,179 1,382 797 Investment Income 897 Ethiopia 400 400   Total Receipts 30,906 Ghana 712 312 400 Cash Disbursements 8,752 Liberia 305 305   Grant Disbursements* 4,923 Republic of Congo 618 237 381 Disbursements to DPs for Grants 11,400 AFRICA subtotal 4,213 2,635 1,578 Total Disbursements 25,075 LATIN AMERICA & CARRIBEAN Fund Balance 195,830 Costa Rica 375 375   *Includes $278,347 of Bank-executed grant disbursements. LATIN AMERICA & CARRIBEAN subtotal 375 375   Table 9 shows the summary financial statement from EAST ASIA & PACIFIC       the opening of the Fund through the end of FY13. Total Donor Contributions received to date are $242.6 million. Investment Indonesia 1,565 1,187 378 income of nearly $4 million brings total receipts to date to Vietnam       $246.5 million. Total disbursements through FY13 are $50.7 EAST ASIA & PACIFIC subtotal 1,565 1,187 378 million and consist of $29.5 million in cash disbursements, $9.8 million in grants to REDD+ countries, and $11.4 million SOUTH ASIA       in disbursement to DPs for readiness grants to countries. The Nepal 500   500 balance of the fund at the end of FY13 was $195.8 million. SOUTH ASIA subtotal 500   500 FY09–FY13 Financial Statement for the Readiness Table 9:  Total Preparation Grants 6,654 4,198 2,456 Fund (in $ thousands) Item Amount TOTAL GRANT Beginning Balance - DISBURSEMENTS 9,848 4,923 4,925 Donor Contributions 242,612 Investment Income 3,921 7.2.3. End of Year Account Balance In summary (see table 8), at the close of FY13, the Readiness Total Receipts 246,533 Fund stood at $195.8 million. Total new funds into the account Cash Disbursements 29,455 totaled about $30.9 million, including donor contributions of Grant Disbursements* 9,848 $30 million (see table 4) and investment income of $0.9 million Disbursements to DPs for Grants 11,400 earned on the account balance. Total disbursements on a cash basis were $25.1 million, made up of cash expenditures of $8.75 Total Disbursements 50,703 million (see table 6), grant disbursements of approximately $4.9 Fund Balance 195,830 million (see table 7), and disbursements to DPs for grants of $11.4 million (see table 8). *Includes $455,197 of Bank-executed grant disbursements. FOREST CARBON PARTNERSHIP FACILITY 59 7.2.4. Financial Commitments over the Longer Term Summary of Long-Term Uses of Readiness Funds Table 10:  Since the term of both Funds runs until December 31, 2020 (with (as of June 30, 2013) CF ERPA payments expected to dominate the latter years of Committed Uses for Funds     financial operations), the annual budgets need to fit into a long- Commitments (grants) to REDD+ term financial planning framework for each Fund, consistent with countries (36 @ $3.8 million)a,b 136.8   World Bank policies for the financial management of trust funds. These policies generally require funds to be fully set aside for Additional grant funding to DRC (for REDD+ countries that commitments made by the participants as well as for meeting the demonstrate significant progress fiduciary obligations entered into by the World Bank as Trustee. on readiness)c 5.0   In order to plan resources over this longer-time horizon, Less grants to REDD+ countries the PC issues resolutions from time to time to establish who did not submit R-PPs by funding priorities and commitments for the coming years. PC14 (3 @ $3.8)d (11.40)   These commitments are considered “notional” when the PC has set aside or allocated financial resources of the Readiness Net Grant Commitments   130.4 Fund that are not yet signed into formal grant agreements or       contracts. They are converted to ”full” commitments once the Administrative, Operations, and grant agreements (or vendor contracts) are signed by recipients Country Support, of which:   75.4 and/or by the World Bank as Trustee of the Readiness Fund, or FY09–FY13 Actual costs 29.2   expenditures are made. As noted above, full signed commitments amount to FY14 Budgeted costs 10.6   approximately $35.4 million. However, there has been a FY15–FY20 Projected costs e 33.6   considerably higher level of notional grant commitments made Reserve for DP capacity for by the FCPF to REDD+ Country Participants. Table 10 provides a dispute resolution 2.0   more complete picture of the level of these notional commitments, together with the necessary notional commitments to operate the Total Uses   205.8 Fund for its full term, including the direct implementation support Notes: costs and associated country services costs. Expecting grants to 36 REDD+ Countries Participants. All 37 originally selected in a.  Table 10 shows the long-term notional commitments or to the FCPF but excluding Equatorial Guinea (PA not signed by February 1, 2012). Due to the current political situation Madagascar’s R-PP has not yet been b.  planned uses of the Fund. The table shows that, as of the end of formally assessed. Through Resolution PC14/2013/2 the PC decides that for FY13, notional commitments of full grants to 36 countries and those REDD+ Country Participants who submitted their R-PP by PC14 but whose the estimated associated costs of the Fund during its lifetime R-PP was not formally assessed by PC14, Readiness Preparation Grant funding would be available to them only if their R-PP is formally assessed by the PC at amount to almost $206 million. or before PC17. This long-term financial plan includes commitments for the The additional $5 million for DRC is already committed per PC Resolution c.  operation of the secretariat by the FMT and the trustee role of PC13/2012/3. Per Resolution PC/10/2011/1.rev, includes Bolivia, Gabon and Paraguay. d.  the World Bank over the full term of the Fund—reflecting the Steady operational budget through FY16 (including an estimate for continuing e.  fact that the Facility is expected to be fully active through that additional activities), with 20% annual cuts thereafter. time, even when the Carbon Fund is supporting programs in select REDD+ Country Participants and making ERPA payments. Total committed and pledged funding to the Readiness Fund 7.3. The Carbon Fund as of June 30, 2013, is approximately $258.2 million (see table 4). 7.3.1. Funding Sources This level of funding is therefore adequate to meet the notional commitments of full Readiness Preparation Grants of up to $3.8 Table 11 shows that total commitments to the Carbon Fund million to all 36 selected REDD+ Country Participants, together as of the end of FY13 amounted to almost $388.5 million. with the estimated costs of the Fund during its lifetime, including This compares to a total as of the end of FY12 of $218.4 the estimated associated country services for those 36 countries. million, representing an increase in funding during FY13 of During FY12, the PC approved access for REDD+ Country approximately $170 million, with additional contributions of Participants to up to $5 million in additional grant funding for approximately $110 million from Norway and $60 million from countries that showed significant progress. The PC took into Germany. All contributions are fully committed funding with account these possible additional grants and the surplus at that signed Participation Agreements. time when considering the future strategic direction of the Fund at PC14 in March 2013. The decision to open the Readiness Fund to new countries will be considered in December 2013 at PC16. 60 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT Commitments to the CF as of June 30, 2013 (in $ thousands) Table 11:  Participant Name FY09 FY10 FY11 FY12 FY13 FY14-17 Total Australia 12,735 5,658 18,393 BP Technology Ventures 5,000 5,000 Canada 5,015 5,015 CDC Climat 5,000 5,000 European Commission 6,347 362 6,709 Germany 4,009 3,819 21,125 15,443 6,556 78,336 129,288 Norway 10,000 161,310 171,310 Switzerland 10,796 10,796 The Nature Conservancy 5,000 5,000 United Kingdom 17,940 17,940 United States of America 10,000 4,000 14,000 Committed Funding 25,356 4,181 71,800 36,912 171,866 78,336 388,451 7.3.2. Funding Uses FCPF Carbon Fund Expenditures by Activity for FY13 Table 13:  (in $ thousands) Table 12 shows all the actual annual expenditures of the Carbon Fund since inception. The Fund has been fully operational since Original Actual Expense May 2011, although some costs were incurred prior to that date, Activities Budget Expense Variance Rate (%) as shown in the table. Shared Costs paid 1,240 1,236 4 100 by the Carbon Fund Table 12: FCPF CF Annual Expenditures (in $ thousands) Carbon Fund 425 260 165 61  Activities FY09 FY10 FY11 FY12 FY13 Administration Actual Actual Actual Actual Actual Marketing to 255 74 181 29 Shared Costs paid by 635 1,728 1,262 Private Sector the Readiness Fund Meeting Logistics 240 318 (78) 133 Shared Costs paid by - - - 1,069 1,236 the Carbon Fund ERPA Costs - Selection and Development of ER-PINs Carbon Fund 183 366 286 260 Business 200 61 139 31 Administration Development Marketing to Private 1 74 Enhanced ER-PIN 600 168 432 28 Sector Total Carbon Fund 2,960 2,117 843 72 Meeting Logistics 183 318 (including Shared Costs) ERPA Costs - Selection and Development of ER-PINs Business 61 The FY13 expenditure of $2.1 million (see table 12) is in Development contrast to the budgeted expenditure of about $3.0 million, an Enhanced ER-PIN 168 underspend of almost $850,000. This expenditure comprises more than $1.2 million for Shared Costs (see Readiness Fund for Total   183 366 1,539 2,117 details), $260,000 for administration, $74,000 for marketing to the private sector, and $318,000 for meetings of the CF (see table 13). FOREST CARBON PARTNERSHIP FACILITY 61 7.3.3. End of Year Account Balance Table 14 shows the summary financial statement for FY13, with a beginning balance at the end of FY12 of almost FY13 Financial Statement for the Carbon Fund Table 14:  $122.3 million. At the close of FY13, the balance of the CF (in $ thousands) stood at almost $293.3 million. New funds into the account Item Amount during FY13 totaled about $173.1 million. The majority was donor contributions of nearly $171.9 million, including Beginning Balance 122,283 payments from Germany, Norway, and the United States Donor Contributions 171,866 of $6.5, $161.3 and $4 million respectively (see table 11). Investment Income 901 Investment income of $0.9 million was earned on the account balance during the reporting period. Expenditures on a cash Payments against Promissory Notes 342 basis totaled $2.1 million (see table 13). Total Receipts 173,109 Table 15 shows the summary financial statement Cash Disbursements 2,117 from the opening of the Fund through the end of FY13. The balance of the Fund at the end of FY13 was almost Fund Balance 293,275 $293.3 million. 62 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT Table 15:  FY09–FY13 Financial Statement for the Carbon 7.3.4. Financial Commitments over the Longer Term Fund (in $ thousands) As outlined in section 7.2.4., since the term of both Funds Item Amount runs until December 31, 2020 (with CF ERPA payments expected to dominate the latter years of financial operations), Beginning Balance   the annual budgets need to fit into a long-term financial Donor Contributions 310,115 planning framework for each fund that is consistent with Less Promissory Note Balances (14,658) World Bank policies for the financial management of trust funds. These policies generally require funds to be fully set Investment Income 2,023 aside for commitments made by the participants as well Total Receipts 297,480 as for meeting the fiduciary obligations entered into by the World Bank as Trustee. The latest long-term financial Cash Disbursements 4,205 plan was presented to the CF Participants at CF6 in March 2013, at which time it was estimated that approximately Total Disbursements 4,205 $360 million would be available for the purchase of ER from Fund Balance 293,275 about five ER Programs. FOREST CARBON PARTNERSHIP FACILITY 63 64 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT 8 Results Measurement Reporting Framework As FY13 is the year in which the FCPF and REDD+ Country Participants transitioned to a new reporting format, data is not consistently available to allow a quantitative analysis. Current Impact/Outcome/ Expected #/ (as of end Output and Relevant Indicators Baseline Target Year FY13) Traffic Light Impact I.1. The FCPF has contributed to the Indicators for See section 4 design of a global regime under or outside impacts 1.1 for examples of UNFCCC that provides incentives for REDD+ (1.1. to 1.5 not yet progress not yet applicable) applicable. Impact level indicators will be assessed at the time of the independed evaluation. I.2. Reduced emissions from deforestation and As above forest degradation from FCPF, especially CF portfolio countries (indicators for 1.2 are not yet applicable) I.3. FCPF has catalyzed the creation of As above recognized global standards for REDD+ I.3.B. Common approach successfully Concept implemented I.4. FCPF has catalyzed investment in REDD+ (CF, As above and grants) I.5. The FCPF has generated momentum to As above address governance and transparency issues and policy reforms related to sustainable forest resource management and REDD+ (not yet relevant) Outcome 1. Efforts successfully undertaken Indicator for out- by countries with FCPF support, to achieve come 1 is not yet emission reductions from deforestation and/or applicable. forest degradation, and to benefit from possible future systems of positive incentives for REDD+ (Readiness Fund) Output 1.1. Readiness Assessment Framework is agreed upon and disseminated FOREST CARBON PARTNERSHIP FACILITY 65 Current Impact/Outcome/ Expected #/ (as of end Output and Relevant Indicators Baseline Target Year FY13) Traffic Light Indicator 1.1. Existence of published assessment 0 completed framework on readiness package Output 1.2. Countries demonstrate an adequate plan to achieve preparedness for REDD+ funding Indicator 1.2.a. Number of R-PPs endorsed by PC 36 30+ by 2015 32 Indicator 1.2.b. Number of Readiness Preparation 7 24 by 2014 9 Grant agreements signed Output 1.3. Countries progress adequately on implementation of their R-PP and Grant Agreements Indicator 1.3.a. Number of mid-term progress 1 7 by June 2014 2 reports presented by countries that follow agreed reporting standards and are presented in a timely manner Indicator 1.3.b. Percentage of countries that 0 Too early to as- are achieving planned milestones according to sess at portfolio approved Readiness Preparation grant (> $3.4 level. See section million) 4. Indicator 1.3.c. Percentage of countries that are 0 Too early to as- overall achieving planned milestones for sub sess at portfolio component as per country annual reporting scale level. See section Sub Component 1 to 9 4. Indicator 1.3.d. Percentage of countries with a 0 60% (of countries 33%, or 3 out of 9, disbursement rate that is in line with agreed with signed grant signed Prepara- Readiness Preparation grant (> $3.4 million) agreements) tion Grants (see disbursement plans of grant agreement (up to section 4) 10% variance with plans) Outcome 2. Selected FCPF countries Indicators 2.A, demonstrate key elements (carbon accounting, 2.B and 2.C for programmatic elements and pricing) of Outcome 2 are not performance-based payment systems for yet applicable. emission reductions generated from REDD+ activities with a view to ensuring equitable benefit sharing and promoting future large-scale positive incentives for REDD+ (Carbon Fund). Output 2.1. Standards and preparations in place for high-quality ER Programs discussed and endorsed by CF Participants and/or PC 66 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT Current Impact/Outcome/ Expected #/ (as of end Output and Relevant Indicators Baseline Target Year FY13) Traffic Light Indicator 2.1. Number and types of standards and management tools discussed and endorsed by CF participants and/or PC for ER programs including: 2.1.a. Methodological framework and Pricing Partly defined Fully developed on track Approach draft by CF7 and final version en- dorsed by CF8 2.1.b. Business processes (ER-PD, ER-PIN, ERPA) ER-PIN, ER-PD, ER- Fully developed on track PA under development draft by CF7 and final version en- dorsed by CF8 2.1.c. Legal documents (General Conditions, Term sheet and Fully defined ERPA Term Sheet is ERPA term sheet) general conditions Term Sheet draft completed, Gen- for ERPA under by PC14 and Gen- eral Conditions development eral Conditions for delayed to PC17 ERPA endorsed by PC16 Output 2.2. Countries have entered in the portfolio of the CF Indicator 2.2.a. Number of early ideas or ER 0 10 by 2015 10 Programs presented by countries to the CF Indicator 2.2.b. Number of REDD countries that 0 5 by 2015 1 LOI signed have signed ERPA Output 2.3. Increased levels of private sector investment for incentivizing, testing, and supporting up-scaling of ER activities Indicator 2.3.a. Number of private participants 2 2 new private 2 total No new PS in CF sector participants participants (see by 2014 section on issues and challenges) Output 2.4. ER Programs are being implemented Indicator 2.4.a is in a timely manner not yet applicable Outcome 3. Engagement of all stakeholders (government, CSOs, IP, private sector, delivery partners) to sustain or enhance livelihoods of local communities and to conserve biodiversity within the approach to REDD+ FOREST CARBON PARTNERSHIP FACILITY 67 Current Impact/Outcome/ Expected #/ (as of end Output and Relevant Indicators Baseline Target Year FY13) Traffic Light Indicator 3.A. Design of national REDD strategies, 0 All national See section 4 for monitoring systems and ER Programs addresses REDD+ strate- examples indicators for enhancement of livelihoods of local gies, monitoring communities and for biodiversity conservation systems and ER programs incor- porate indicators related related to biodiversity conservation and forest community livelihood develop- ment Indicator 3.B Actual examples on the inherent 0 International social and biodiversity benefits of REDD+ and how REDD+ agenda by they are used to inform REDD+ agenda and to 2017 is informed scale up results by documented results from ER Programs Output 3.1. Enhanced capacity of IPs and CSOs to engage in REDD+ processes at the country level 3.1.b. not yet applicable Indicator 3.1.a. (i) Number and type of examples 0 Various new ex-  See section 4 of in-country REDD+ actions where IPs and CSOs amples exist with and local communities participate actively strong evidence of IP and CSO active participation and broad community support in REDD+ programs / readi- ness by 2015 Indicator 3.1.a. (ii) Examples of resources made N/A Examples exist US financed sup- available to enable active participation of IPs, with evidence of port for stake- CSOs, and local communities in national REDD+ resources being holder engage- readiness made available ment in 5 FCPF through national countries, chan- and/or bilateral neled through support to IPs and accredited NGOs/ CSO networks CSOs. to enable active participation in national REDD+ readiness Indicator 3.1.b. Number of IP and REDD+ country Examples of early At least 20 men Estimated at 400 CSO representatives (men/women and/ or youth) participation of and 20 women participants in that have participated and benefitted from stakeholders exist and/or 20 youth total. Breakdown FCPF organized workshops/trainings on SESA, until FY12 reps. participated by stake- governance, MRV aspects/related aspects of and/or trained holder groups REDD+ per country, in a not available. minimum of 15 Participation in participant coun- FMT regional tries by 2015 workshops was well represented by CSO and IPs. 68 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT Current Impact/Outcome/ Expected #/ (as of end Output and Relevant Indicators Baseline Target Year FY13) Traffic Light Indicator 3.1.c. Examples of IPs and REDD+ Representation of IPs Examples in all See section 4 country-CSO representation in institutional and CSOs at national REDD+ Partici- arrangements for REDD+ at the national level level institutional pant Countries, of arrangements institutional had started to get arrangements for attention during R-PP national REDD+ formulation process readiness where IPs and CSOs are represented Output 3.2. Pilots have been successfully Indicator 3.2 b not implemented on ways to sustain and enhance applicable as yet livelihoods and conserve biodiversity (3.2. b is not (pertain to ER Pro- yet applicable) gram implementa- tion) Indicator 3.2.a. Number of countries where 7 in FY12 All countries See section 4 or stakeholder engagement platforms proposed in that have signed data not available RPPs have taken up work and meet regularly Readiness grants at that level of detail in country reports Outcome 4. Knowledge gained in the development of the FCPF and implementation of Readiness Preparation Proposals (under the Readiness Fund) and Emission Reductions Programs (under the Carbon Fund) broadly shared, disseminated and used by international REDD+ practitioners Indicator 4.A. Number of new countries/ 0 A number of 11 Countries stakeholders requesting to become FCPF: new requests to - observers become: - members  ountry Observ- -c ers (2015)  ountry Mem- -c bers (2015) Indicator 4.B. Examples of utilization of/or 0 An increasing See section 4 reference to FCPF knowledge products number of ex- amples exist by 2015 and remains stable afterwards until 2020 Output 4.1. Knowledge products and lessons from Indicators for piloting of REDD+ in general and FCPF activities Output 4.1 are not in particular are developed and disseminated, in yet applicable. accordance with global knowledge management and communication strategy and annual work plans Output 4.2. Participants actively engage in South- south-learning activities Indicator 4.2.a. Number of S-S learning activities in FY12 Increase in 2013- Increase in com- and/or events connecting FCPF countries 14—tbd in work parison to FY12 plans FOREST CARBON PARTNERSHIP FACILITY 69 Current Impact/Outcome/ Expected #/ (as of end Output and Relevant Indicators Baseline Target Year FY13) Traffic Light Indicator 4.2.b. Total number of participants to Increase in 2013- Approximately South-south knowledge exchange activities by 14—tbd in work 400 participants category: plans - REDD+ member countries (men/women) - non-REDD+ member countries (men/women) -IP/CSO representatives from region (men/women) -Private sector representatives from region (men/women) Output 4.3. Strong visibility of REDD+ and FCPF is achieved 4.3.a. Number of neutral/positive mentions of n/a Increase in neutral Yes FCPF and REDD+ issues in different key media and positive men- worldwide per X period tions worldwide— tbd in work plans 4.3.b. Number of negative mentions of FCPF and n/a Decrease of Comparable to REDD+ issues in different key media worldwide negative mentions FY12 per year worldwide 70 FOREST CARBON PARTNERSHIP FACILITY FY13 ANNUAL REPORT Acknowledgments Photo Credits All photos courtesy of the World Bank Photo Library/Rhett A. Butler unless otherwise noted. Design by Corporate Visions, Inc. Copyright ©by Carbon Finance Unit, World Bank Group. All rights reserved. FOREST CARBON PARTNERSHIP FACILITY 71 Carbon Finance Unit The World Bank 1818 H Street, NW Washington, DC 20433, USA www.carbonfinance.org www.forestcarbonpartnership.org 72 FOREST CARBON PARTNERSHIP FACILITY