2015 ANNUAL REPORT FOREST CARBON PARTNERSHIP FACILITY CONTENTS ACRONYMS 5 5. ISSUES AND CHALLENGES 45 FOREWORD 7 5.1. Disbursements 45 5.2. Country-Level M&E Frameworks 1. GENERAL INTRODUCTION 9 and Readiness Reporting 45 5.3. Operationalizing Private Sector 2. PROGRAM OBJECTIVES 11 Commitments 45 5.4. Leveraging Investment Finance 45 3. EXECUTIVE SUMMARY 13 6. MONITORING OF ASSUMPTIONS AND RISK 49 4. MAIN ACHIEVEMENTS AND RESULTS DURING THE PERIOD 15 7. FY15 FINANCIAL REPORT OF THE FACILITY 53 4.1. Highlights 15 7.1. Financial Overview of the Facility 53 4.2. Progress at the Impact Level 20 7.2. The Readiness Fund 53 4.3. Progress at the Outcome Level 26 7.3. The Carbon Fund 58 4.4. Progress by Output 28 7.4. Budget Approval Process 61 8. RESULTS MEASUREMENT REPORTING FRAMEWORK 63 FY15 ANNUAL REPORT Acronyms BioCF BioCarbon Fund CF Carbon Fund CFP Carbon Fund Participants C&I Criteria and Indicators CIB Congolaise Industrielle Des Bois COP Conference of the Parties (to the UNFCCC) CSO Civil Society Organization DP Delivery Partner THE FOREST CARBON DRC ER Democratic Republic of Congo Emission Reductions PARTNERSHIP FACILITY ERPA Emission Reductions Payment Agreement ERPD Emission Reductions Program Document ER-PIN Emission Reductions Program Idea Note Demonstrating activities that reduce emissions ESMF Environmental and Social Management Framework from deforestation and forest degradation FAO Food and Agriculture Organization FCPF Forest Carbon Partnership Facility FGRM Feedback and Grievance Response Mechanism FIP Forest Investment Program FMT Facility Management Team FY Fiscal Year (World Bank fiscal year, July 1 through June 30) IDB Inter-American Development Bank IP Indigenous Peoples ISFL BioCarbon Fund Initiative for Sustainable Forest Landscapes 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 PA Participants Assembly PMF Performance Measurement Framework PC Participants Committee 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 RL Reference Level R-PP Readiness Preparation Proposal SBSTA Subsidiary Body for Scientific and Technological Advice (under UNFCCC) SESA Strategic Environmental and Social Assessment SIS Safeguards Information System SMART Specific, Measurable, Attainable, 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 VRD Voluntary REDD+ Database WB World Bank 4 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 5 FY15 ANNUAL REPORT Foreword “In a year from now, we will be able to see whether the momentum leading up to Paris can be catalyzed into the action needed to transform rural landscapes, conserve forests, make a difference in climate change trajectories and, most importantly, to bring prosperity to the rural poor.“ Over the past year, REDD+ countries exhibited that sectoral ministries responsible for rural development, enormous momentum in developing concepts for landscape- forests, and agriculture have. In fact, they need to own scale programs that have the potential for long-term the aspiration to place priority on the conservation and transformation towards a low-carbon society and economy in sustainable management of forests, on climate-smart target jurisdictions. The FCPF Carbon Fund pipeline grew to agriculture, and on making transport, mining, and energy a total of eleven countries in FY15 and to eighteen countries sectors forest-friendly. To make long-lasting positive change in early FY16. across rural landscapes and along the forest frontier, holistic At this time of the year, all eyes are on the upcoming land use plans need to be high on the political agenda of climate negotiations in Paris, and on the analysis of the forest country governments. aggregate effect of national efforts towards low emissions To scale up impact at a pace that counters global and climate resilient development as outlined in countries warming trends, engaging the private sector to spur Intended Nationally Determined Contributions (INDCs) that innovation and capital mobilization is also critical. The FCPF, were submitted to the UNFCCC in advance of the Paris in close coordination with the World Bank’s private sector Climate Conference (COP21). arm, the International Finance Cooperation, is beginning In the context of the FCPF, it was encouraging to see to formalize public-private partnerships with multinational how many of the countries that presented their proposed companies, who themselves are looking to forest-proof their landscape-scale programs to Carbon Fund Participants commodity sourcing practices. While an increasing number in Brussels last month anchored their proposals into the of companies are demonstrating global commitments and broader context of their INDCs. Overall, countries are moving pledges, there are still many challenges to overcome to away from presenting program or sector-based proposals, match public and private interests and to turn actions into and are instead thinking (and acting) along the lines of effective partnerships that deliver on conserving forests economy-wide policy reforms and objectives to realize their in the face of difficult underlying market, policy, and green growth development trajectories. governance environments. It is exciting to see the role the FCPF has to support Looking back at FY15, I found of interest how some countries in turning their intended contributions to global of the countries in the FCFP partnership have taken to climate mitigation targets into reality. As such, we are implementing REDD+ readiness. In the uncertainty of already focusing our eyes on the post-Paris horizon and significant climate finance available for forest carbon paving the way for a proof of concept for REDD+ in a post- in the near term, they have focused both on designing It is exciting to see the Paris world. While the FCPF’s partnership is energized at the readiness activities that contribute to adaptation, which is an imperative for many countries in the reality of a changing role the FCPF has to prospect of the important climate, environmental, economic, climate and on leveraging funds through sound strategies support countries in and social benefits that proposed landscape programs can generate, we have to be mindful of the herculean task that and investment plans. It’s exciting to see the synergies between adaptation and mitigation become more apparent in turning their intended countries still face to turn their landscape proposals into reality. our collaborative efforts around forests and REDD+. “In a year from now, we will be able to see whether contributions to global The cornerstone for success on REDD+ specifically, and low-carbon land use in general, will be ownership at the momentum leading up to Paris can be catalyzed into the action needed to transform rural landscapes, conserve climate mitigation the highest political level. National decision-makers in forests, make a difference in climate change trajectories and, targets into reality. Ministries of Finance and Planning need to share the vision most importantly, bring prosperity to the rural poor.” Ellysar Baroudy Coordinator, Forest Carbon Partnership Facility 6 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 7 FY15 ANNUAL REPORT 1 General Introduction The 2015 Fiscal Year (FY15) 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 Measurement Facility. This report also builds on the reporting structure Framework (PMF), this year’s annual report provides at the country level, which began last year—moving away information on the main achievements related to the from reporting on activities only and allowing for systematic, intermediate impacts, outcomes (aligned with the four FCPF country-specific assessment of readiness progress. objectives), and outputs (short-term results), which together As the FCPF’s main focus has been on readiness and provide a strategic overview of the FCPF (see Figure 1). on laying the ground for future REDD+ activities and piloting Specific, Measurable, Attainable, Relevant and Time-bound performance-based payment systems, it is somewhat (SMART) indicators have been developed at the level of impact, limited in its ability to report on longer-term and impact- outcome, and output to track the progress of the FCPF. The level indicators at this stage. (Impact assessments will be targets for each indicator have been designed in a way that part of the independent evaluations as planned in the M&E ensures results can be achieved within the life span of the Framework.) Figure 1: Result chain of FCPF interventions Outputs Outcome Intermediate Readiness Assessment Impact Impact Framework Efforts successfully undertaken by 47 REDD+ preparedness plan countries with FCPF support to achieve Global regime that emission reductions provides incen tives for Progress towards readiness and benefit from REDD+ REDD+ Increased capacity of IP and Momentum for good local CSO Biodiversity governance of SFM, Engagement for respective policy reforms conserved Models for sustainable and multi-stakeholder livelihoods and biodiversity sustainable liveli- hoods of forest participation communities ER standards and guidelines Globally recognized Sustainable or REDD+ standards enhanced livelihoods ER- Programs agreed of forest dependent people Increased CF funds including ER Performance- Reduced emissions Private sector investment based payment from deforestation systems effectively and forest degra- ER-programs timely demonstrated dation from FCPF, implemented especially CF-Pilots Reduced countries make up the Knowledge management + greenhouse gases FCPF REDD+ Country communication strategy Additional REDD+ Participants. Knowledge products disseminated Knowledge gained from FCPF used by investments international REDD practitioners Active South-South learning Strong FCPF and REDD+ visibility Boundaryof M&E framework 8 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 9 FY15 ANNUAL REPORT 2 Program Objectives The Forest Carbon Partnership Facility (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 $829m 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 funds have raised $829 million. objectives: The Readiness Fund supports participating countries was the total amount raised by • To assist eligible REDD+ Countries in their efforts to in the development of REDD+ strategies and policies, FCPF’s two funding mechanisms achieve Emission Reductions (ER) from deforestation references emission levels (REL), measurement, reporting and verification (MRV) systems, and institutional capacity —the Readiness Fund and the and/or forest degradation by providing them with to manage REDD+, including environmental and social financial and technical assistance in building their Carbon Fund. capacity to benefit from possible future systems of safeguards. The Readiness Fund became operational in positive incentives for REDD+; 2008 and has a capital just under $373 million. The Carbon Fund builds on the progress made in • To pilot a performance-based payments system for readiness and is designed to pilot performance-based ER generated from REDD+ activities, with a view to payments for ER from REDD+ programs in a small number ensuing equitable sharing and promoting future of FCPF countries. The CF became operational in 2011 and large-scale positive incentives for REDD+; has a capital of $456 million. • Within the approach to REDD+, to test ways to The FCPF has grown to 47 developing countries (18 sustain or enhance livelihoods of local communities in Africa, 18 in Latin America and the Caribbean, and 11 and to conserve biodiversity; and in the Asia-Pacific Region) and 17 financial contributors (comprising developed countries, one private sector • To disseminate broadly the knowledge gained in participant, and one Non-Governmental Organization the development of the Facility and implementation (NGO)). It has six categories of observers, including IP and of Readiness Plans and ER Programs. Civil Society Organizations (CSO). The core of the FCPF’s The FCPF has two separate but complementary funding inclusive governance structure is formed by the Participants mechanisms—the Readiness Fund and the Carbon Fund Assembly (PA) and the Participants Committee (PC). (CF)—to achieve its strategic objectives. Together the two 10 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 11 FY15 ANNUAL REPORT 3 Executive Summary In its seventh year of operation, the Forest Carbon Partnership Facility (FCPF) made progress to shape an increasingly diverse portfolio of landscape-level, cross-sectoral, multi-institutional programs that bring public and private partners together around forest conservation, sustainable land use and high-quality emission reductions at scale, which underscore the FCPF’s emphasis on social inclusion in program design and implementation. In FY15, the adoption of the General Conditions for Emission and timber. The FCPF is facilitating this dialogue at both the Reductions Payment Agreements concluded a long, but local and global levels. important, chapter of collaborative work to put in place The momentum with which countries have been the technical and legal underpinning for future large-scale developing landscape programs has positively impacted forest carbon transactions. This also reinforced the FCPF’s readiness progress. As landscape programs shape up, role in setting globally recognized standards for REDD+ and readiness activities, including consultations and participatory pioneering a framework for reducing deforestation and forest processes, become more relevant and concrete. Progress degradation through piloting of results-based finance. under the Readiness Fund included a record number of 13 At the eleventh meeting of the Carbon Fund in October Readiness Preparation Grants signed in FY15, bringing the 2014, the pipeline was increased to a total of 11 ER total number of countries implementing readiness activities Programs with the inclusion of Guatemala and Peru, and the to 35. Another highlight included the endorsement of the provisional inclusion of Indonesia. With a view to providing Readiness Package from the Democratic Republic of Congo adequate time for the development and implementation of by the FCPF Participants Committee as the first country to sound, high-quality Emission Reductions Programs, the advance REDD+ readiness to this important milestone. term of the Carbon Fund was extended by five years until the Looking ahead to FY16, REDD+ countries will focus on end of 2025. The extension was accompanied with pledges following in the footsteps of DRC and carrying out self- for additional contributions and the prospect for pipeline assessments of their readiness progress and submission expansion subject to high-quality proposals. This created of Readiness Packages as a prerequisite for subsequent momentum amongst REDD+ countries, which competed to submission of full-fledged ER Programs for selection into develop and present a record number of nine new ideas for the portfolio of the Carbon Fund. landscape programs at the twelfth meeting of the Carbon At the country level, REDD+ Countries will aim to Fund in April 2015. implement their national REDD+ Strategies, which propose 11 As countries continued to advance the development of actionable multi-sector strategy options to address the their ER Programs, options to address financing gaps in drivers of deforestation and the underlying barriers such as Emission Reductions Programs received increasing attention natural resource rights, land tenure, and governance. and discussion within the partnership. Countries will need A substantial number of mid-term reviews, Readiness to leverage additional upfront investment finance to secure Packages, and ER Program documents are expected to be sufficient resources to deliver program implementation delivered in the next year. With the volume of analysis as and generate results for which carbon payments are well as country and expert reflection feeding into this, the proposed. Countries are also looking into financing FCPF will increasingly focus on harvesting and disseminating options that go beyond traditional bilateral, multilateral knowledge that has been collectively gained in the and public investment finance, and are exploring private Partnership at both country and global levels. sector investments, national budgets, as well as innovative Meanwhile, an independent second program evaluation financing options such as bonds, guarantees, and advances, will be carried out to review relevance, effectiveness, countries in the among others. impact, sustainability, efficiency of the FCPF. The evaluation Carbon Fund pipeline. To achieve impact at scale, countries are further starting is expected to provide guidance on how to improve to engage proactively with the private sector to identify effectiveness and delivery of the Facility by learning lessons partnership opportunities for zero-deforestation supply from REDD+ implementation and to improve the strategic chains around commodities such as cocoa, coffee, cotton, alignment with the priorities of REDD+. 12 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 13 FY15 ANNUAL REPORT Main Achievements and Results 4 During the Period 4.1. Highlights A new milestone in REDD+ readiness was reached when the Democratic Republic of Congo became the first country to present its readiness package in May 2015. While readiness is a relative concept and the readiness package a snapshot of progress made, reaching this important milestone brought the readiness process full circle for the first time since the Readiness Fund became operational in 2008. +13 Increasing maturity in the Readiness Fund is further With the approval of the General Conditions for Emission reflected in the growing number of countries that reported Reductions Payment Agreements (ERPA) in November 2014 on their mid-term progress. In FY15, six additional countries a long, yet important, chapter on the development of the (Costa Rica, Ghana, Liberia, Mexico, Republic of Congo, and technical and legal underpinning of future ERPAs was closed. Vietnam) reached this milestone demonstrating important The FCPF consequently turned its full attention to extending achievements in institutional, technical, and social REDD+ country-tailored technical support to countries as they design readiness and provided important lessons learned for other and develop their program ideas and advance important REDD+ countries. analytical work. Such support included technical assistance Over the last year, another 13 countries entered into to respond to the criteria and indicators of the Methodological Readiness Preparation readiness grant agreements. This brings the total number Framework, including on reference levels and MRV design. of countries implementing readiness activities to 35, Responding to the demand from countries on guidance on Grants signed in FY15. significantly higher than last year’s total of 22. Eight of the technical aspects of carbon accounting, the FCPF further 13 readiness grant agreements were signed by countries launched a web-based decision support tool on reference that were only selected into the Readiness Fund in FY14. levels and MRV design. This demonstrates significantly faster progress by the new Over the last year, emphasis was also placed on the early countries. analysis and on planning for ER Program’s implementation By end of FY15, $211 million in readiness grant funding costs. This effort is intended to support countries with had been allocated, and nearly $107 million had been made structuring their programs and to align different streams of available with signed grants, leveraging at least $186 million up-front investment finance and ensure financial soundness in non-FCPF investments in readiness (this figure is based on of proposals. country reporting and may not be exhaustive). The Readiness Fund also received new donor contributions of $27 million 1 over the past year. This was made up of $23.8 million from st Germany, and $3.2 million from Finland. The Common Approach was fully implemented in FY15 manifesting the FCPF’s commitment to social inclusion. As such, awareness raising and capacity building around social inclusion shifted to country-level activities led by each Delivery Partner. This included guidance to countries on applicable policies and procedures on environmental and social safeguards, access to information, and feedback and R-Package grievance redress mechanisms. endorsed The extension of the term of the Carbon Fund to 2025 created a lot of momentum for pipeline development. In FY15, three additional ER-PINs were presented and Guatemala and Peru were selected and Indonesia provisionally selected into the pipeline, which consequently grew to a total of eleven countries. Further, eight new countries presented their early ideas with the aim to receive feedback from Carbon Fund Participants to develop ER-PINs for presentation and potential selection in FY16. 14 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 15 FY15 ANNUAL REPORT Large-scale Programs in the Carbon Fund Pipeline REDD+ countries continue to make strides in developing large-scale REDD+ program proposals Guatemala that have the potential to transform rural landscapes. As of the end of FY15, the Carbon Fund Building on existing legal and financial frameworks for forest governance developed over the past 15 years, the pipeline includes programs in Chile, Costa Rica, Democratic Republic of Congo, Ghana, Guatemala, emission reductions program in Guatemala will be a national-level initiative with the power to impact 15 million lives. The program will engage in six areas of REDD+ activity: incentives to increase carbon stocks, sustainable forest Indonesia, Mexico, Nepal, Republic of Congo, Peru, and Vietnam. These eleven programs take a management, strengthening protected areas co-management, agroforestry systems and forest plantations, governance landscape-level approach engaging actors in agriculture, energy, transport, land, mining, and and law enforcement on forest lands, as well as development of forest productions value chain. In additional to forestry to achieve climate-smart land-use, protect forests, restore degraded land, and improve benefitting from strong political commitment of the Guatemalan Government, a supportive institutional setting for local livelihoods. The Carbon Fund pipeline remains under development in FY16. linking REDD+ activities in close collaboration with key government institutions has been cultivated. These framework conditions enable consultation with and participation by local communities, and are expected to result in a high degree of involvement of these local communities in forest management in the program. The program will strongly benefit from Chile the Pro-Bosque law, recently approved by Congress, which ensures domestic finance to support the activities proposed Chile’s program to reduce emissions from degradation in temperate forests is a cornerstone for the country’s national in the Emission Reductions Program Idea Note. Investment finance will also be obtained from the Forest Investment forestry strategy. This program—which spans 16.5 million hectares over five regions in Chile—takes action to address Program (FIP). the three main drivers of deforestation and degradation: illegal logging, forest fires and replacement of native forests by exotic plantations. The Government of Chile is committed to the development of this large-scale program to reduce deforestation and forest degradation by improving forest management and focusing on cross-sectoral issues which Indonesia impact areas with most forest cover. The high-level political support for Chile’s program helps generate lessons learned Indonesia’s REDD+ program focuses on East Kalimantan, an area that contains 14.7 million hectares of forest, including for other emission reductions programs under development. 400,000 hectares of peat lands. The province is promoting its development objectives through a low-emissions development initiative, which is implemented through provincial strategies and actions plans that build on the strong leadership in the region on climate change. The program is designed to address the over-exploitation of forests for Costa Rica timber production, illegal logging, forest encroachment, forest fires and the impacts of infrastructure development Costa Rica is currently concluding its REDD+ readiness phase and is designing an emission reductions program. The through actions that include improvements in forest licensing and small-scale plantations, and the promotion of program includes a wide range of policies and measures to conserve and enhance carbon stocks based on more than 20 community-based planning. Key interventions also target actions on agricultural land to reduce pressure on the forest years of experience with forest conservation and management. At the heart of the program is Costa Rica’s successful estate by minimizing the impact of slash-and-burn agriculture, plantation development, and the expansion of mining. Payment for Environmental Services Program and an extensive protected area system that gradually incorporates additional With the implementation of the program, Indonesia hopes to contribute to the national goal of reducing the country’s REDD+ activities. The program is developed with the active participation of relevant stakeholders. It complies with social emissions by 26 percent through its own efforts (and 41 percent with international support). and environmental safeguards and will be implemented at a national level. The program along with the National REDD+ Strategy will promote the country’s commitment to carbon neutrality and will contribute to poverty reduction by expanding an inclusive forestry and agroforestry-based development model. Democratic Republic of Congo The Maï N'dombe emission reductions program is a jurisdictional program which serves as a model for green growth in the Congo Basin and significant climate action on the African continent. The Government of DRC is committed to this innovative large-scale program integrated in DRC’s National REDD+ Strategy framework. Aligned with the investments of Forest Investment Program (FIP) and Congo Basin Forest Fund (CBFF), the Maï N'dombe Emission Reductions Program includes a balanced combination of enabling activities (strengthening governance, capacity building, local level land- use planning, securing and modernizing land tenure, demography) and sectorial activities (reduced impact logging, agroforestry, conservation concessions) over 12.3 million hectares of land in DRC. The program represents a unique partnership to secure a long-term public and private commitment to reducing deforestation and finance for delivering emission reductions, poverty reduction and sustainable development at scale. Ghana Ghana’s Cocoa Forest REDD+ Program is the first REDD+ program in the world to focus on an ecological landscape that is defined by the production of a globally important agricultural commodity—cocoa—which is responsible for significant emissions in the landscape. The program seeks to significantly reduce emissions driven by expansion of cocoa into forest areas, coupled with illegal logging. By tackling these drivers, Ghana aims to secure the future of its forests and significantly improve income and livelihood opportunities for farmers and forest users across the program area. Ghana’s Forestry Commission and Cocoa Board are committed to jointly pursuing a programmatic, landscape strategy to reduce deforestation and forest degradation in the Cocoa Forest Mosaic Landscape, including working with the private sector. 16 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 17 FY15 ANNUAL REPORT Mexico Building on more than 10 years of experience in sustainable forest management, Mexico’s program for a Community- Based Landscape Approach to Reduce Greenhouse Gas (GHG) Emissions aims at transforming the management of forests at the territorial level, and even goes a step further to take an integrated approach at the landscape level. Under the FCPF Carbon Fund, Mexico is developing a community-level program spanning five states and almost 18 million hectares of land. Working in conjunction with the Forest Investment Program (FIP), the program will support rural communities in the development of low-carbon investment plans that aim to reduce carbon emissions from deforestation and forest degradation. The program will scale up the lessons learned from previous experience and give continuity to the management of natural resources at the landscape level. Nepal Reaching a population of seven million people, 80 percent of which are forest dependent, the emission reductions program in Nepal’s Terai Arc Landscape is poised to transform the landscape and many communities in the program area. The main drivers of deforestation are unsustainable and illegal wood harvesting, overgrazing, forest fires, land conservation (encroachment, resettlement). The Government of Nepal is committed to this landscape-level program, which is estimated to generate 14 million tons of CO2 emission reductions in five years. This program will provide substantial learning value for Nepal and for other REDD+ programs globally, as it is testing the community-based forest management model as a building block for scaled up REDD+ programs. The government is dedicated to making this REDD+ initiative successful in reducing emissions, improving forest governance, and enhancing the livelihoods of forest dependent communities. Peru Peru´s large emissions reduction program targets two political regions which encompass most of the drivers of deforestation in the Peruvian Amazon. The Ministries of the Environment and Agriculture, Livestock, and Irrigation, regional governments, and indigenous and private sector organizations will collaborate on an integrated landscape approach aimed at improving enabling conditions related to land-use and increasing agricultural and forestry productivity and competitiveness through increased institutional, organizational, and productive capacities and access to markets. The program forms an important part of Peru´s emerging strategy for LED and green growth and presents multiple synergies with multilateral efforts focusing on the Peruvian Amazon. Republic of Congo The Emission Reductions Program in Northern Congo proposed by the Republic of Congo is a collaborative public- private partnership with CIB-Olam, the leading logging concessionaire in the country. Program activity is built around addressing the drivers of deforestation and degradation based on sustainable forest management in the logging sector and avoiding unplanned deforestation from shifting slash-and-burn agriculture in the program area. These interventions have substantial non-carbon benefits that support the national vision for a green economy building on sustainable management of natural ecosystems, participatory management and the fight against poverty. The emission reductions program works hand-in-hand with the National REDD+ Strategy. The World Bank is exploring opportunities to provide technical and financial support to this project through the Projet Forêt et Diversification Economique (PFDE), which would support agroforestry approaches in the cocoa and banana supply chains, as well as tools, training and plantation monitoring. Vietnam The North Central Agro-Ecological Region is a landscape that is economically, environmentally and socially significant. The jurisdictional program impacting six provinces in the Northern Annamite Mountains aims to make substantial achievements through catalytic carbon finance for sustainable forest-agriculture. Vietnam’s emission reductions program works across key sectors driving deforestation and forest degradation (agriculture; infrastructure; shifting cultivation; unsustainable forest harvesting; illegal logging) which can serve as a paragon of green growth for Vietnam and the wider Association of Southeast Asian Nations (ASEAN) region. The Government of Vietnam is committed to these interventions working with civil society and development partners. 18 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 19 FY15 ANNUAL REPORT 4.2. Progress at the Impact Level experts, and UNDP Country Offices, Regional Service participatory and inclusive stakeholder engagement, they gain In the following section, progress is reported based on indicators at impact, outcomes, and output level in line with the Centers, and all Bureaus. donor confidence and attract additional investments from Performance Measurement Framework (PMF) as per the FCPF’s Monitoring and Evaluation (M&E) Framework that was adopted mainly bilateral and multilateral sources. Reported non-FCPF • Standard Operating Procedures for the Social and in March 2013. Several indicators including those related to emission reductions program implementation under the Carbon investments received under the R-PP process is captured in Environmental Compliance Unit (SECU) were approved Fund (CF), are not yet applicable. Accordingly, they are not referred to in the narrative below. Please refer to Section 8 (Results Table 1 below and has grown significantly compared to last year’s by the Director of UNDP’s Office of Audit and Measurement Reporting Framework) for a tabular aggregation of targets and outputs. figures. Figures in Table 1 below are based on progress reporting Investigations in December 2014 and SECU became by countries and may not be exhaustive. The 23 countries that effective starting January 1, 2015. SECU is now accepting reported on non-FCPF investments for readiness together Impact-level Results 1.1: The FCPF has contributed to the In FY15, the adoption of the General Conditions for Emission complaints from affected people for all UNDP-supported leveraged cumulative finance of $186 million, which represents design of a global regime under or outside UNFCCC that Reductions Payment Agreements (ERPA) was another projects approved after that date. a 1:1.7 ratio compared with the total volume of FCPF readiness provides incentives for REDD+ important contribution to global standards for REDD+. The • In June 2014, UNDP approved Social and Environmental grants ($107 million) made available to these countries. It should approval of the General Conditions at PC18 in November 2014 Standards and the SRM to be integrated into UNDP’s be noted that increased cumulative non-FCPF investments in Impact-level indicator 1.1.B: Examples of how FCPF learning followed a collaborative and inclusive process that took more policies and procedures and effective for all new projects FY15 are not only due to increased leveraging, but also due to and experience has fed into UNFCCC REDD+ decisions than two years due to the many critical, complex, and sensitive starting January 1, 2015. improved reporting by countries compared to FY14. The Standing Committee on Finance (SCF) of the United technical, environmental, social, cultural, and legal issues In FY14, a series of FCPF-sponsored regional workshops Over the past year, an increasing number of countries have Nations Framework Convention on Climate Change (UNFCCC) involved in large-scale REDD+ finance, and the lack of UNFCCC aimed to build capacity on the Common Approach and on social been actively focusing on the design of future ER Programs. made a call for inputs to the Working Paper on Coherence and regulatory guidance on many issues. The General Conditions inclusion. Consequently, in FY15, awareness raising and capacity Significant upfront investments are needed to implement ER Coordination for Financing to Forests. The World Bank made provide the technical and legal underpinning of large-scale building around the Common Approach shifted to the country- Programs and are critical to achieving results for which Carbon a submission in response to the call on January 30, 2015. The carbon transactions that will result from future ERPAs entered level activities led by each DP. This included guidance to countries Fund payments are proposed. However, Carbon Fund payments submission draws upon the World Bank’s experience in extending into between Carbon Fund Participants and forest countries. on applicable policies and procedures on environmental and are downstream payments that are received only subsequent finance to its client countries and in implementing projects and social safeguards, access to information, and feedback and to verification of achieved emission reductions. Countries are programs that address socio-economic, environmental, and Impact-level indicator 1.3.A: Examples of non-participant grievance redress mechanisms. therefore seeking investments to cover substantial upfront global good dimensions of forests. The submission covered countries that have adopted FCPF standards in their own In FY15, the three active FCPF DPs further produced a joint financing needs that are not limited to the forestry sector, but aspects related to committing finance to REDD+ readiness; REDD+ process guidance note on Establishing and Strengthening Grievance more importantly cover a spectrum of other sectors which augmenting resources for investment; financing results-based No concrete country examples have been recorded in FY15. As Redress Mechanisms, which has been made widely available. impact deforestation and forest degradation, such as agriculture, actions; and improving coherence and coordination in delivery of per the FCPF’s M&E framework it is also not expected that new Training for operational staff of the DPs included a session infrastructure, mining, and others. Table 2 below provides adequate and predictable financing in support of climate change examples and results can be reported at the impact level for each on “Safeguards for REDD+” that was conducted for WB staff in examples of non-FCPF investments received for implementation mitigation and sustainable forest management objectives. fiscal year. March 2015. The training session touched on a number of areas of proposed ER Programs. The 14 countries that reported on non- The Green Climate Fund adopted a Performance However, other funds which provide results-based finance, relating to the Common Approach, in particular SESA/ESMF FCPF investments received for implementation of ER Programs Measurement Framework where performance measurement for such as the World Bank’s BioCarbon Fund are carefully reviewing implementation. In June 2015, a calibration workshop was held together leveraged cumulative investment finance of $1.112 REDD+ will be informed by the FCPF Methodological Framework. the FCPF’s Methodology Framework to inform their own for IDB and FMT staff on a number of FCPF operational issues, million, or an average of $83 million per country. Figures in Table This highlights the learning value the FCPF can offer from initial emerging performance measurement frameworks and may including Common Approach implementation. 2 are not exhaustive and only capture reported funding. application of the FCPF Methodological Framework. adapt certain standards of the Methodological Framework. The FCPF continues to look for opportunities to collaborate Combined upfront investment finance typically exceeds the with other REDD+ initiatives, such as the United Nations scale of downstream climate finance that countries foresee. Impact-level Results 1.2: Reduced emissions from Impact-level indicator 1.3.B: Common Approach Collaborative Programme on Reducing Emissions from Countries are therefore also looking into financing options that deforestation and forest degradation from FCPF, successfully implemented Deforestation and Forest Degradation in Developing Countries go beyond traditional bilateral, multilateral and public investment especially CF portfolio countries FY15 represented a roll-out of implementation of the FCPF (UN-REDD) and the Climate, Community & Biodiversity Alliance finance, and are exploring private sector investments, as well This impact-level result is not yet applicable. Common Approach. For the first time, both Delivery Partners (CCBA), on social and environmental sustainability issues as innovative financing options such as bonds, guarantees, (DPs), the Inter-American Development Bank (IDB) and the of mutual concern, including the Common Approach and its advances, and others. Impact-level Results 1.3: FCPF has catalyzed the creation of United Nations Development Programme (UNDP), submitted provisions. recognized standards for REDD+ full reports on the implementation of the Common Approach for In previous years, the FCPF established global standards those countries with active FCPF-financed implementation of Impact-level Results 1.4: FCPF has catalyzed investment in for REDD+ with the adoption of the Readiness Assessment readiness activities. Reports from the IDB covered Guatemala REDD+ (CF, and grants) Framework and the adoption of the Methodological Framework and Peru, and reports from the UNDP covered Honduras and for the Carbon Fund. The Readiness Assessment Framework Suriname. Impact-level indicator I.4.A: Amount of non-FCPF investments guides REDD+ countries on how to measure and communicate In addition, the UNDP reported on the progress made in under R-PP process in Participant countries and for their relative progress on REDD+ readiness, and builds on the setting up an accountability mechanism for REDD+. Key advances implementation of ER Programs (e.g., FIP, bilateral donors, foundation and multi-stakeholder platforms created during the included: private sector) readiness preparation phase. It supports countries to make • Between June 2011 and June 2014, UNDP consulted The cost of REDD+ readiness often exceeds grant funding the transition from readiness to results-based payments. The extensively on the proposed procedures and institutional available from the FCPF Readiness Fund. Countries have Methodological Framework for the Carbon Fund provides a set-up for a) the Social and Environmental Compliance been increasingly successful in leveraging additional external global standard for REDD+ transactions at scale and guides the Review and b) the Stakeholder Response Mechanism funding to finance the cost of readiness activities. As countries piloting of results-based carbon finance transactions through (SRM), reaching out to over 10,000 people and receiving demonstrate initial results in readiness implementation, the FCPF Carbon Fund. more than 300 contributions from civil society, external strong government ownership in REDD+ objectives, and 20 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 21 FY15 ANNUAL REPORT Table 1: Amount of non-FCPF investments received under the Ethiopia Government of Norway $5,000,000 Table 2: Amount of non-FCPF investments received for Guatemala IADB $500,000 R-PP process for REDD+ (in $)* implementation of ER Programs (e.g., FIP, bilateral donors, Government of the UK (DFID) $5,000,000 FIP $24,250,000 private sector), if relevant (in $)* REDD+ Country Source Amount Provided Indonesia Government of Germany (KfW) $29,371,000 Fiji Fiji Ministry for Fisheries and $42,563 Bhutan UN-REDD Programme $345,000 Forests (MFF) REDD+ Country Source Amount Provided Government of Germany (GIZ) $22,348,000 Burkina Faso FIP $30,000,000 Government of Germany (GIZ) $13,572 Colombia BioREDD $14,070,000 FIP $105,000,000 FIP DGM $4,500,000 Ghana Gordon and Betty Moore $170,063 Côte d'Ivoire FIP $20,000,000 FIP DGM $6,500,000 Cameroon Government of Cameroon $169,348 Foundation Democratic FIP $60,000,000 Lao PDR Government of Germany (KfW) $12,770,000 (MINEPDED) Government of Switzerland— $400,000 Republic of FIP DGM $6,000,000 Congo Government of Germany (GIZ) $5,683,000 Cambodia UN-REDD Programme $4,001,050 Swiss State Secretariat of Government of Norway $2,500,000 FIP $30,000,000 Economic Affairs (SECO) Government of Japan (JICA) $14,000,000 Congo Basin Forest Fund $25,000,000 FIP DGM $4,500,000 Guatemala Government of the US (USAID) $200,000 UN-REDD Programme–FAO $650,312 (CBFF) USAID/CNCG $100,000 FIP (sub-projects) $61,900,000 International Tropical Timber $600,000 UN-REDD Programme–UNDP- $126,326 Madagascar AFD $333,315 USAID/PRCC $50,000 Organization TRAC COMIFAC $305,000 Mexico FIP $60,000,000 UN-REDD Programme–Target $200,000 IUCN $20,000 UNEP $40,000 FIP DGM $6,000,000 Support IADB $100,000 Ethiopia Government of Norway (for $3,000,000 UN-REDD Programme $650,000 UN-REDD Programme–UNEP $140,000 UNDP $30,000 Oromia REDD+ readiness Government of Norway $15,356,000 Colombia Government of Germany (GIZ) $4,402,000 Guyana Government of Norway $3,110,690 program) International Bank for $25,660,000 UN-REDD Programme $4,000,000 Guiana Shield Facility $490,000 Government of Norway $50,000,000 Reconstruction and BioREDD $518,000 Government of Germany (KfW) $627,000 (official pledge) Development (IBRD) Government of the US $149,000 Guyana REDD+ Investment Fund $1,708,000 Government of Norway $10,000,000 Government of France (AFD) $2,418,000 (USAID/FCMC) (for national readiness Lao PDR Government of Germany (CliPAD $15,554,700 Nicaragua GEF $1,494,320 performance) Government of Germany (BMU)/ $1,844,000 Project through GIZ and KfW) FIP $50,000,000 Winrock/Climate Focus Ghana Japanese Funded Forest $7,800,000 Japanese Government (FIM $9,000,000 Preservation Programme Peru FIP DGM $5,500,000 Moore Foundation $2,480,000 Project, PAREDD Project, NFIS) (FPP) Technology Transfer IADB to FIP $450,000 GEF (Corazon Amazonia) $2,180,000 Madagascar Government of Germany (GIZ) $13,333 and Support for trend analysis GEF $6,000,000 of forest land change, Forest Government of the UK $326,000 UN-REDD Programme $297,000 resource map, biomass and RoC Government of Germany (GIZ/ $3,633,000 Government of Colombia $3,444,000 FA/PE3/GVT $1,412,000 C-Stock estimation and ProREDD) Others $6,131,000 Capacity building Togo GEF/West African Economic $93,358 Mozambique UN-REDD Programme $4,000,000 Government of Germany (GIZ) $555,525 and Monetary Union/UNDP/ Côte d'Ivoire Government of Côte d’Ivoire $1,270,110 Nepal Government of the US (USAID) $1,136,600 Forest Monitoring based on Ministry of Environment and UN-REDD Programme $3,210,000 Government of the UK (DFID/SDC) $1,467,500 German Remote Sensing Forest Resources Government of Finland $780,000 Technology Government of France (AFD) $3,333,150 World Bank/Project $1,561 FIP $55,330,000 Management Integrated Government of Japan $360,000 Chile Government of Switzerland $1,800,000 Gordon and Betty Moore $126,063 Disaster and Land (NAMA Forest) Nicaragua Government of Germany (GIZ) $100,000 Foundation for biomass map IADB $190,000 FAO $5,000 TOTAL $1,112,238,748 UN-REDD Programme $40,000 Empresa Minera Barrick Zaldivar $137,500 Peru Gordon and Betty Moore $2,010,000 IUCN Global Gender Office $15,000 *It should be noted that figures are based on country reporting and may not be Foundation exhaustive. Costa Rica Government of Germany (GIZ) $1,600,000 Government of Germany (KfW) $3,980,000 UN-REDD Programme $760,000 UNREDD $960,000 Government of Norway $114,000 (NORAD) Tanzania Government of Norway (Civil $17,000,000 Society Organization program) Government of the US (USAID) $500,000 Togo Government of Germany (GIZ/ $1,367,000 Government of Costa Rica $200,000 ProREDD) Republic of UN-REDD Programme $4,000,000 World Bank/PGICT $1,289,000 Congo Government of Republic of Congo $600,000 Uganda Government of Austria $830,286 COMIFAC (Regional REDD+ $200,000 CIF/FIP (in preparation) $250,000 Project and Regional Project MRV) UN-REDD Programme (in $1,867,000 Democratic UNDP $3,110,690 preparation) Republic of FAO $2,926,450 Congo TOTAL $185,645,303 Acronyms: UNEP $1,346,060 US United States *It should be noted that figures are based on country reporting and may not be UK United Kingdom exhaustive. 22 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 23 FY15 ANNUAL REPORT Impact-level Results 1.5: The FCPF has generated momentum following three measures directly relate to REDD+: i) completion reorganization, a new unit was created that is responsible compensation for ecosystem and environmental services to address governance and transparency issues and policy of the conversion process of legal forest titles and efforts to for managing externally funded projects, fund raising, and associated with the management and protection of forests. reforms related to sustainable forest resource management combat illegal logging; ii) enhanced transparency in the forest donor coordination. With several new and existing large- In Mexico, the Integral Territorial Management Model, and REDD+ sector; iii) implementation of the REDD+ process. scale investment operations active around land use, forestry, with its approach to sustainable forest development, and While the land tenure reform process began slowly in and REDD+ in Mozambique, the new institutional structure REDD+ have been successfully incorporated in the 2014-2018 Impact-level indicator 1.5.B: Number of policy reforms initiated, 2012, the inclusion of issues such as land-use planning in has proven efficient. Over the course of the last year it National Forestry Program (PRONAFOR), which sets forth completed or underway complying with REDD+ standards in the governance matrix has provided new momentum for the contributed significantly to the acceleration of the roll-out and the objectives, strategies and lines of action for the period of Participants’ country, potentially include issues of land tenure reform process. As a result, a Ministry of Land-use Planning implementation of several landscape initiatives on the ground, 2014-2018. Amongst others, the National Forestry Program Policy reform must be considered as part of larger, dynamic was recently created and the national commission has been as well as REDD+ strategy development at the national level. aims to apply multisectoral territorial management models for national processes, to which FCPF Readiness Grants can deployed to provincial and local levels. A dialogue has started Legislative reform in Ethiopia further brought the rural communities with a view to enhancing land-use methods make important contributions, but which are entirely driven by around the development of a national land-use plan. environment and forest under a single institutional arrangement in the rural sector. Moreover, forest governance systems will autonomous national governments. In many countries, FCPF In Colombia, for the first time, a chapter on green growth under the new Ministry of Environment and Forest, which was be promoted and social participation will be strengthened REDD+ readiness funding is essential to promote capacity has been included in the National Development Plan for the established in 2013. This institutional reform has made forest to support planning, consultation and dialogue between building, analytical work, social inclusion processes, and period of 2014-2018. One of the main objectives is to focus issues (conservation, management and restoration) much more government and broader society. The law includes measures highly technical work related to forest carbon assessments on sustainable and low-carbon growth, with reduction of prominent in the national agenda. The recently-elected new to ensure that rural land owners, rural communities and and monitoring. While these activities support and feed deforestation stated as one of the priority actions. The National Government has reorganized the Ministry into the Ministry of Indigenous Peoples can contribute to program implementation. policy reform processes in support of REDD+, initiation and Development Plan provides an important frame of action for Environment, Forestry and Climate Change with the objective to In Peru, a new Ecosystem Services Law was passed in completion of policy reform requires collective action across further policy reform around REDD+. align coordination around forest management, climate change June 2014. The law was adopted on World Environment Day sectors and leadership at national and sub-national levels that In Mozambique, sectoral mandates were aligned in January adaptation, and mitigation matters. and provides a legal framework to recognize the maintenance go beyond the leverage of FCPF readiness grant funding. As 2015 with the creation of a new Ministry (Ministry of Land, In Guatemala, Congress approved the Probosque Program, of ecosystem services, including greenhouse gas emissions such, the following examples provide a snapshot of important Environment and Rural Development, MITADER) responsible through Law Number 02-2015, which will help scale up existing reductions, biodiversity conservation, and the preservation of progress made in FY15 on policy reform that guides and informs for land, environment, rural development, protected areas and forest incentive programs, by devoting 1 percent of the national natural beauty. Investments in watershed services are also REDD+, but that must be viewed in the context of broader forests. This brought together partly overlapping mandates budget to incentivize the establishment of an additional incorporated. The law and related regulations will contribute national processes. of the previous Ministry for Coordination of Environmental 40,000 hectares of natural forest protection, reforestation and to the development of local, regional, and national initiatives to DRC has integrated REDD+ into the country’s Economic Affairs (MICOA) and the Ministry of Agriculture (MINAG). agroforesty. Beneficiaries of the Probosque Program include reward actions that ensure the provision of ecosystem services, Governance Matrix and progress is regularly monitored under The creation of the new Ministry has streamlined policy small land owners, cooperatives, and indigenous communities including REDD+, which generate economic, social and the supervision of the Ministry of Finance. More specifically, the reform and coordination of activities in the land use sector, with communal tenure. The incentive program promotes environmental benefits. including on REDD+ activities. As part of the institutional 24 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 25 FY15 ANNUAL REPORT 4.3. Progress at the Outcome Level Ghana completed its National REDD+ Strategy in January six countries applied the Assessment Framework as they took 2015. The strategy will be implemented in a three-phased stock of readiness progress at mid-term stage. Several new BOX 1: WEB-BASED TOOL ON REFERENCE LEVELS AND Outcome-level Result 1: Efforts successfully undertaken by approach, with the initial implementation phase focusing on countries used the Assessment Framework to strategically MRV DESIGN countries with FCPF support to achieve ER from deforestation Avoided Deforestation, Carbon Stock Enhancements, and plan and prioritize their readiness activities. Most prominently, and/or forest degradation, and to benefit from possible future biodiversity conservation. The strategy does not yet include DRC became the first country to advance to preparation of the The FCPF REDD+ Decision Support Toolbox is a new systems of positive incentives for REDD+ (Readiness Fund) concrete indicators related to non-carbon benefits, but states Readiness Package, and to apply the Assessment Framework internet-based, interactive and data-driven decision Outcome-level indicator 1.A: Number of Readiness Packages that Ghana is expected to have a functional MRV system to document the country’s self-assessment of its readiness support tool to help countries build their REDD+ programs. endorsed by PC (R-Packages are in line with assessment in place and use existing methodologies, such as from the progress. Users can explore options to develop a forest reference framework) Climate Community and Biodiversity (CCB) standards for In FY15, the FCPF Secretariat continued to place its emission level and a forest monitoring system, both of monitoring biodiversity impact. emphasis on providing customized support to countries that which are essential to measure, report and verify the Target: 2 R-Packages by 2014, 8 R-Packages by 2015, 20+ It is important to emphasize that in the context of Ghana, were preparing early ideas, ER-PINs, as well as draft ER- impact of REDD+ interventions. The toolbox is intended to R-Packages by 2018 efforts are already underway to implement REDD+ activities at PDs for presentation to the Carbon Fund. Several countries be used by forest countries as they consider key design In FY15, DRC was the first country to have its Readiness the jurisdictional and project levels which may be premised on received technical assistance to respond to the criteria and and technical components of their national or subnational Package endorsed by the PC. The R-Package provided a Verified Carbon Standard (VCS) and CCBA standards, but also indicators of the Methodological Framework for the Carbon REDD+ programs. It provides practical guidance based on snapshot of DRC’s readiness progress relative to the country’s a national monitoring and reporting regime of greenhouse Fund. Responding to the demand from countries on guidance existing REDD+ frameworks including the UN Framework circumstances and recognized that capacity continues to be gases (GHGs) to the UNFCCC is already on-going, under on technical aspects of carbon accounting, the FCPF launched Convention on Climate Change and the FCPF’s Carbon built beyond the R-Package milestone. An important value the National Greenhouse Gas Inventory (NGHGI). Thus, as a web-based decision support tool on reference levels and Fund Methodological Framework. of the R-Package was the participatory and inclusive multi- Ghana’s REDD+ implementation structure evolves, it will MRV design (see Box 1), which is supporting countries with the stakeholder self-assessment conducted by the country. be important to consider MRV systems and modalities for technical preparation of ER Programs. Complementary to the REDD+ Decision Support Toolbox, The PC was pleased with new legislation under preparation project, jurisdictional and national levels, including possible A well-received knowledge product in FY15 was a study on a comprehensive set of training material was produced related to Indigenous Peoples’ rights. DRC was encouraged options for combining these modalities in a seamless MRV Early Lessons from Jurisdictional REDD+ and Low Emissions jointly with the Global Observation of Forest and Land to continue to strengthen institutional arrangements to implementation system. Development Programs that was jointly published by The Cover Dynamics (GOFC-GOLD) initiative. This training coordinate and implement REDD+ activities and to make Ethiopia issued a first draft of its National REDD+ Nature Conservancy and the FCPF. The study features eight material provides additional in-depth technical guidance progress on REDD+-related policy reforms including land-use Strategy in November 2014. The Strategy envisages that of the most advanced jurisdictional REDD+/Low Emissions and reference material. The material was developed with planning and land tenure. implementation of REDD+ is based on a set of principles that Development programs worldwide designed to reduce forest- a network of international technical experts and peer- While the submission and endorsement of the first ensures climate benefits along with co-benefits, such as related emissions. Six of these programs have also been reviewers and builds on established international good R-Package at PC19 in May 2015 represented an important biodiversity and livelihoods, while respecting the rights of local selected into the pipeline of the FCPF Carbon Fund. The report practice guidance on pertinent methods and technology for milestone for the FCPF, overall progress towards reaching communities and forest dependent communities. The strategy provides insights into the dynamics and realities on the ground forest monitoring. A modular structure allows the material this important readiness milestone is slightly lagging behind states that Ethiopia plans to develop a MRV system that will experienced in these jurisdictions and serves as a resource to be used in different settings (workshops or hands-on earlier anticipated targets. For PC20 in November 2015 help track a range of non-carbon benefits, such as biodiversity for practitioners, forest country governments, donors and training) and be tailored to different audiences (REDD+ only one additional R-Package is expected to be submitted. and social benefits others working to advance jurisdictional REDD+ at landscape policy or in-country technical experts). The material However, a number of additional R-Packages are expected scale. The joint study finds that with appropriate investment includes 14 technical modules with practical country to be ready for PC21 in May/June 2016. The parallel Outcome-level Result 4: Knowledge gained in the development and support, jurisdictional REDD+ programs have the potential examples and training exercises. progress on ER Program design has helped countries focus, of the FCPF and implementation of Readiness Preparation to become transformational models of forest-friendly strengthen, and even accelerate readiness activities as gaps Proposals (under the Readiness Fund) and Emission development. in institutional and technical arrangements, as well as policy Reductions Programs (under the Carbon Fund) broadly shared, reform objectives, become more concrete. disseminated and used by international REDD+ practitioners Outcome-level Result 2: Selected FCPF countries demonstrate Outcome-level Indicator 4.A: Number of new countries/ key elements (carbon accounting, programmatic elements stakeholders requesting to become FCPF members/observers and pricing) of performance-based payment systems for In FY14, 11 new countries (Belize, Bhutan, Burkina Faso, Côte ER generated from REDD+ activities with a view to ensuring d’Ivoire, Dominican Republic, Fiji, Nigeria, Pakistan, Republic equitable benefit sharing and promoting future large-scale of Sudan, Togo and Uruguay) were selected into the FCPF. positive incentives for REDD+ (Carbon Fund) This followed a decision by the PC to reopen the partnership This outcome-level result is not yet applicable. to new countries. In FY15, a reopening of the partnership was not under consideration and no additional countries Outcome-level Result 3: Engagement of all stakeholders submitted expressions of interest to become FCPF members (governments, CSO, IP, private sector, delivery partners) to or observers. sustain or enhance livelihoods of local communities and to conserve biodiversity within the approach to REDD+ Outcome-level indicator 4.B: Examples of utilization of/or reference to FCPF knowledge products Outcome-level indicator 3.A: Design of national REDD+ The Guide to the FCPF Readiness Assessment Framework strategies, monitoring systems and ER Programs addresses continues to be the most utilized knowledge product to inform indicators for enhancement of livelihoods of local communities countries at different stages of readiness preparation. In FY15, and for biodiversity conservation 26 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 27 FY15 ANNUAL REPORT 4.4. Progress by Output The focus of the World Bank and the other DPs remains implementing R-PPs are making either significant, good Disbursement rates of countries with Readiness Table 3:  on providing technical assistance and guidance to countries or at least mixed progress against planned milestones.6 Preparation Grants signed by end of FY15 Output 1.1: Readiness Assessment Framework is agreed upon to accelerate readiness implementation and disbursement of More specifically, the status for FY15 is as follows. Of all 35 and disseminated More readiness funds. countries with signed grant agreements,7 11 countries are than plan Within 90% Within 50% Less than Not yet Output-level indicator 1.1: Existence of published assessment reporting to have made significant progress against planned (>100%) of plan of plan 50% of plan disbursing framework on Readiness Package Output 1.3: Countries progress adequately on implementation milestones (Cameroon, Chile, Costa Rica, DRC, Ethiopia, Bhutan Chile Costa Rica Cambodia Burkina Faso of their R-PP and Grant Agreements Ghana, Guatemala, Liberia, Nepal, Nicaragua, and the The Readiness Assessment Framework was adopted in FY13 DRC Côte d'Ivoire Cameroon Guyana Colombia Republic of Congo). Six countries are progressing well, but as per the target set in the FCPF M&E Framework. It has since Output-level Indicator 1.3.a: Number of mid-term progress need further development against some planned milestone Ghana Mexico Ethiopia Indonesia El Salvador been a widely used tool that countries have applied for a self- reports presented by countries that follow agreed reporting (Cambodia, Côte d’Ivoire, Honduras, Mozambique, Peru assessment of their readiness progress. In FY15, six countries Honduras Mozambique Guatemala Lao PDR Fiji standards and are presented in a timely manner and Vanuatu). Six countries reported that they need further (Costa Rica, Ghana, Liberia, Mexico, Republic of Congo, and Uganda Nepal Liberia Madagascar Compared to previous years, an increasing number of countries development to reach planned readiness milestones (El Vietnam) applied the Readiness Assessment Framework as reached mid-term or readiness implementation. In FY15, six Salvador, Guyana, Indonesia, Mexico, Uganda, and Vietnam). Papua New a tool for stock-taking to inform their mid-term review and Nicaragua Guinea Nigeria countries (Costa Rica, Ghana, Lao PDR, Mexico, the Republic of Finally, 12 countries are in the very early stages of R-PP focus readiness activities going forward. In addition, DRC was Congo, and Vietnam) presented their mid-term progress reports implementation (i.e., grant agreements have been effective Republic of the first country to present a Readiness Package based on the Peru Pakistan on national REDD+ readiness, compared to two countries for less than a year and countries are generally in the process Congo Assessment Framework. in FY14,4 and just one in FY13. All six countries as well as of staffing implementation structures, operationalizing Togo Suriname Sudan Indonesia5 also submitted requests for additional funding and implementation arrangements, and planning readiness Output 1.2: Countries demonstrate an adequate plan to achieve Vanuatu were each allocated additional grants of $5 million. Also, Ghana activities). These 12 countries consequently reported the need preparedness for REDD+ funding for further development to reach implementation milestones Vietnam progressed to signing the extension of the Grant Agreement Output-level Indicator 1.2.a: Number of R-PPs endorsed by PC in FY15, while the other countries are expected to sign grant (Bhutan, Burkina Faso, Colombia, Fiji, Lao PDR, Madagascar, 5 countries 4 countries 10 countries 8 countries 8 countries Target: 30+ R-PPs by 2015 agreements in FY16. Nigeria, Pakistan, PNG, Sudan, Suriname and Togo). Since the end of FY14, the R-PPs of all 45 active FCPF countries These mid-term reports provided a wealth of information tends to lag behind actual implementation, and does not on progress made and valuable lessons learned for other Output-level Indicator 1.3.d: Percentage of countries with of the total 47 REDD+ countries1 have been endorsed by the immediately reflect implementation progress. REDD+ countries. A common point of encouragement to a disbursement rate that is in line with agreed Readiness PC. No additional R-PPs were endorsed in FY15. The current A more detailed overview of disbursement rates for the countries was to continue efforts to strengthen stakeholder Preparation Grant (> $3.4 million) disbursement plans of grant status of 45 endorsed R-PPs well exceeds the PMF’s target and 35 countries that had signed grant agreements by the end of engagement platforms, both at central and decentralized levels, agreement (up to 10% variance with plans) amounts to a total of $211 million2 in grant resources allocated FY15 is provided as follows (see Table 3). Five countries are for REDD+ readiness preparation. to ensure participation of civil society and Indigenous Peoples, While disbursement rates have improved significantly over disbursing beyond targets, they are: Bhutan, DRC, Ghana, taking into account aspects of gender and youth. Countries were the last two years, the portfolio-level target of “60 percent Honduras, and Uganda. Four countries are disbursing within Output-level Indicator 1.2.b: Number of Readiness Preparation further encouraged to continue cross-sectoral collaboration of countries disburse with up to 10 percent variance of their 90 percent of plan, these are: Chile, Côte d’Ivoire, Mexico, and Grant agreements signed and dialogue to substantiate integrated, multi-sector landscape disbursement plans” is not yet being met. Currently, only 26 Mozambique. Ten countries are disbursing within 50 percent approaches to national land-use planning efforts. percent of countries with Readiness Preparation Grants are of plan: Costa Rica, Cameroon, Ethiopia, Guatemala, Nepal, Target: 30+ signed grant agreements by 2015 disbursing within 10 percent variance of their plan, while 28 Nicaragua, Republic of Congo, Togo, Vanuatu, and Vietnam. Continuing the positive trend established in FY14, a large Output-level Indicator 1.3.b: Percentage of countries that are percent of countries are disbursing within 50 percent of plan, Eight countries are disbursing at less than 50 percent of number of countries progressed to the next milestone in the achieving planned milestones according to approved and 46 percent are either disbursing at less than 50 percent of plan: Cambodia, Guyana, Indonesia, Lao PDR, Liberia, Papua stepwise approach to readiness and signed their Readiness Readiness Preparation grant (> $3.4 million) plan or are not yet disbursing. New Guinea, Peru, and Suriname. Eight countries are not yet Preparation Grants. In FY15, 13 additional Readiness One of the reasons for not meeting portfolio targets is At the time of print, reports from the World Bank (e.g., Grant disbursing, they are: Burkina Faso, Colombia, El Salvador, Fiji, Preparation Grants were signed by Bhutan, Burkina Faso, due to the number of new countries that were accepted into Reporting and Monitoring reports) and from other Delivery Madagascar, Nigeria, Pakistan, and Sudan. While El Salvador Colombia, Côte d’Ivoire, Fiji, Lao PDR, Madagascar, Nigeria, the FCPF and that consequently signed Readiness Grants only Partners were, in most part, not yet available as they are signed its grant in mid FY14, the other seven countries only Pakistan, Papua New Guinea (PNG), Sudan, Togo, and Vanuatu. very recently. Another reason may be that countries set overly generally due by the end October of each year. The analysis signed their grant agreements in the last five months of As a result, a total of 35 countries are now implementing ambitious disbursement targets. For example, the costs of for indicator 1.3.b. was therefore based on country progress FY15 and were thus focused on getting accounts, financial readiness activities. This is above the PMF target of 30+ grants large contracts (e.g., for technical studies, SESA process and reports. management systems, and other fiduciary requirements set up. signed by 2015. The due diligence process on the final R-PP (the safeguards documents) typically are not disbursed until final Disbursement rates across the portfolio are expected step that precedes grant signature) was completed for another deliverables have been submitted. As such, disbursements Output-level Indicator 1.3.c: Percentage of countries that are to increase in FY16, as countries with recently signed Grant three countries (Argentina, Dominican Republic, and Thailand) overall achieving planned milestones for subcomponent as per Agreements progress with procurement and implementation. in FY15 and they are thus expected to sign Readiness Grants in country annual reporting scale 1 Two countries are currently not active in the FCPF: Bolivia and Gabon. early FY16. 2 This figure includes initial readiness funding of $3.8 million as well as As per the PMF, the target by 2015 is for 50 percent of countries Output 2.1: Standards and preparations in place for high- The volume of funds that have been made available to additional funding of $5 million for selected countries. implementing R-PPs to show performance (at the subcomponent 3 These figures do not include additional funding of $5 million. quality ER Programs discussed and endorsed by CF countries in FY15 in signed Readiness Preparation Grants level) advancing with 50 percent of subcomponents rated as 4 Costa Rica and Ghana presented at PC17 in early July 2014 in Lima. While they Participants and/or PC amounts to $49.4 million in FY15 alone, or a total of $133 were already reported on in the 2014 Annual Report, strictly speaking they fall million since the beginning of the Fund.3 Countries that were “further development required.” By 2018, the PMF states, 100 into FY15. percent of countries would be expected to have progressed to 80 5 Indonesia presented its mid-term progress report in FY14, but only requested Output-level Indicator 2.1: Number and types of standards and selected into the FCPF in FY14 took significantly less time from additional funding in FY15. percent of subcomponents rated at “progressing well” or above. management tools discussed and endorsed by CF participants R-PP approval to grant signature. As a result, over one-third of 6 The remaining 6 percent represent the two countries that did not submit The PMF target for 2015 has been met, as only 34 progress reports for FY15. and/or PC for ER programs including: all Readiness Grants were signed in FY15. 7 Countries who have not yet signed grant agreements and are thus not percent reported to “require further development” to achieve implementing FCPF-financed readiness activities are not required to use the implementation milestones, while 66 percent of countries PMF’s reporting format. 2.1.a: Methodological Framework and Pricing Approach 28 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 29 FY15 ANNUAL REPORT Methodological Framework start structuring ER Programs and to align various streams Output 2.2: Countries have entered in the portfolio of the CF In FY15, Carbon Fund Participants extended the term of the The Methodological Framework (MF) was adopted by Carbon of finance, including the resources provided through the FCPF Carbon Fund by five years to December 31, 2025, to allow time Fund Participants at the eighth Carbon Fund meeting (CF8), Readiness Fund, other investment finance and results-based Output-level Indicator 2.2.a: Number of early ideas or ER for the development of sound ER Programs and at least five- in December 2013, in Paris. It provides a global standard for finance through the Carbon Fund. Programs presented by countries to the CF year terms of program implementation, as well as verification REDD+ transactions at scale and guides the piloting of results- To date, 24 countries have presented an Early Idea with the aim and payment of Emission Reductions generated. based carbon finance transactions through the FCPF Carbon Output-level Indicator 2.1.c: Legal documents (General of receiving early feedback and expert advice and/or have also With the extension of the term of the Carbon Fund, CFPs Fund. Conditions, ERPA term sheet) presented a full-fledged ER-PIN with the aim of being selected also indicated interest in increasing funding to the Carbon Fund, Target: ERPA Term Sheet by PC14, General Conditions for ERPA into the Carbon Fund pipeline (see Table 4). subject to quality proposals. As such, countries were invited to Pricing Approach by PC16 By the end of FY14, ER-PINs from eight countries (Chile, present early ideas for potential ER Programs at CF12 in April Costa Rica, DRC, Ghana, Nepal, Mexico, Republic of Congo, 2015. Nine new countries (Argentina, Cameroon, Côte d’Ivoire, Discussions on the Pricing Approach for the Carbon Fund were The ERPA Term Sheet was endorsed at the fourteenth and Vietnam) had been selected into the pipeline of the Carbon Dominican Republic, Fiji, Guyana, Lao PDR, Mozambique, and on hold in FY15. Previously, Carbon Fund Participants had Participant Committee meeting (PC14) in March 2013 (FY13) Fund. In FY15, three additional ER-PINs were presented. Nicaragua) presented their early ideas with the aim to receive indicated a preference for fixed pricing under current conditions meeting the PMF target. Guatemala and Peru were selected into the pipeline and feedback from CFPs related to further developing the Early and a willingness to pay up to $5/t CO2e, while recognizing that In FY15, another important milestone was reached with the Indonesia was conditionally selected into the pipeline, thus Ideas into ER-PINs for presentation at CF13 in October 2015. the ultimate price is subject to negotiations at the time of ERPA adoption of the General Conditions for Emission Reductions increasing the Carbon Fund pipeline to 11 countries. In FY15, six additional countries negotiated and entered negotiations. Payment Agreements (ERPA) at PC18 in November 2014. REDD+ Countries have not yet provided signals on This milestone was reached after a collaborative and their price expectations, and first requested support on inclusive process that lasted over two-and-a-half years and Countries that have presented early ideas or ER-PINs to the Carbon Fund Table 4:  cost assessment and financial analysis of ER Programs to included several informal and formal sessions and workshops, better understand the cost associated with ER Program outreach to countries, and informal expert discussion groups. A Country CF2 CF3 CF4 CF5 CF6 CF7 CF9 CF10 CF11 CF12 implementation. While countries understand that REDD+ thorough and inclusive process was followed, due to the many Argentina Early Idea is an incentive mechanism that helps to co-finance the critical, complex, and sensitive technical, environment, social, Cambodia Early Idea implementation of REDD+ activities that a country may put in cultural, and legal issues involved in large-scale REDD+ finance, place, a better understanding of ER Program implementation and the lack of UNFCCC regulatory guidance on many issues. Cameroon Early Idea costs is critical to countries as they can factor these into price The approval of the General Conditions closed a long, yet Chile Early Idea ER-PIN ER-PIN negotiations. important, chapter on the development of the technical and Colombia Early Idea In FY15, the FMT has been working with a number of legal underpinning of future ERPAs. The delay of approval to countries, especially those in the Carbon Fund pipeline, to PC18, compared to the original PMF target of PC16, was due to Costa Rica Early Idea Early Idea ER-PIN ER-PIN perform early analysis and planning for financing of Carbon fact that the General Conditions hinged upon the finalization and Côte d’Ivoire Early Idea Fund ER Programs using the cost assessment tools developed approval of the Methodological Framework for the Carbon Fund Democratic previously. Such upstream analysis has allowed countries to (see Box 2). Republic of Early Idea Early Idea ER-PIN ER-PIN Congo Dominican Early Idea Republic Ethiopia Early Idea Fiji Early Idea BOX 2: GENERAL CONDITIONS FOR EMISSION REDUCTIONS PAYMENT AGREEMENTS (ERPA) Indonesia Early Idea Early Idea Early Idea ER-PIN The General Conditions (GCs) are the legal underpinning of large-scale carbon transactions. They provide for general rules and procedures for the sale and payment for Emission Reductions (ER) to be generated and verified under an Emission Mexico Early Idea Early Idea ER-PIN Reductions Program. The General Conditions will be incorporated into each Emission Reductions Payment Agreement Ghana Early Idea ER-PIN (ERPA) by way of reference and are non-negotiable. Guatemala Early Idea ER-PIN Relation to the Methodological Framework: The General Conditions build on the criteria and indicators specified in the Guyana Early Idea Methodological Framework and provide, among others, for the general legal rules and procedures that are expected to be Lao PDR Early Idea followed during Emission Reductions Program design, preparation, and, implementation. Madagascar Early Idea Mozambique Early Idea Content of the General Conditions: Whereas the Emission Reductions Payment Agreement (ERPA) will cover the commercial terms of a carbon transaction that are negotiable on a case-by-case basis, the General Conditions provide for Nepal Early Idea ER-PIN a set of (non-negotiable) general rules and procedures that apply to each transaction. Such rules and procedures cover, Nicaragua Early Idea among other things, issues related to the sale, transfer and payment for verified ERs, the allocation of responsibilities Peru Early Idea ER-PIN ER-PIN in terms of ER Program development, ER Program Registration, ER Monitoring and ER Verification, ER Program/Sub- Project implementation and operation, application of World Bank Operational Policies (including environmental and social Republic of Early Idea ER-PIN ER-PIN Congo safeguards policies), benefits and benefit sharing principles, Reversals, Reversal Management Mechanisms, ER Program Buffer, transfer of Title to ERs, Events of Default and related remedies, governing law and dispute settlement. Vietnam Early Idea Early Idea Early Idea ER-PIN 30 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 31 FY15 ANNUAL REPORT into a Letter of Intent (LOI) with the World Bank in its role expressed their support for improving cocoa farming in Côte In Nicaragua, active stakeholder engagement was achieved Working Group, SESA Task Force, etc. This process is being as the trustee for the FCPF Carbon Fund. Therefore eight of d’Ivoire and exploring the basis for cooperation between the through the SESA and related processes (e.g., FGRM supported jointly by the FCPF and the UN-REDD Programme the eleven countries selected into the Carbon Fund pipeline Côte d’Ivoire’s emerging Emission Reductions Program area construction, social communications). Key stakeholders in the and is aimed at increasing the representativeness of CSOs and have now signed LOIs. Signature is pending in the remaining and the pilot of Mondelēz’ Cocoa Life program. A partnership Northern and Southern Autonomous Regions of the Caribbean IPs in these national REDD+ structures. three countries. In Guatemala signature is awaiting election offers opportunities to scale-up investments to increase Coast, the sub-region of the country where MARENA expects In Liberia, strong leadership by CSOs and traditional outcomes, in Indonesia signature is pending submission of a farmers’ productivity, enhanced training, and increased access most of REDD+ implementation activities will take place, were communities in the REDD+ process has been evident. The revised ER-PIN, and in Peru signature is subject to institutional to agricultural inputs, which in turn contributes to reduce the consulted in seven pre-SESA meetings with the objective to feed ongoing SESA process has thus far received support from local discussions. pressure for agricultural expansion into forest areas. In the into the preparation of the national REDD+ Strategy led by the communities. Country-level CSOs are in the forefront in terms In terms of next steps, countries selected into the Carbon Republic of Congo, CIB-OLAM has been a longstanding partner, Ministry of Environmental and Natural Resources (MARENA). of stakeholder engagement, and they are actively participating Fund pipeline will now advance the development of their ER including in the development of the country’s ER-PIN. OLAM During the initial seven pre-SESA meetings, the need for in the community-based consultation activities. Programs consistent with the MF and in accordance with the has partnered with the Government to rehabilitate the Congo’s additional awareness raising and training around REDD+ on In Mozambique, emphasis was placed on strategic World Bank’s due diligence process. They will also need to cocoa market by harnessing OLAM’s strategic market position the Caribbean Coast was identified and MARENA revised its communication and public consultation as part of the SESA prepare their Readiness Package and have the Readiness in the global cocoa sector. Activities include the intensification SESA work plans accordingly. Consequently, an additional process. In total, 22 public consultations were held and a Package endorsed by the PC before submitting their ER of shade grown cocoa production with communities in degraded 23 consultation workshops were carried out. These not only number of additional awareness raising activities carried out. Program Document for potential selection into the Carbon Fund forests to avoid slash-and-burn practices in the primary forest. covered topics of standard concern for SESA, such as forest District- and community-level consultations were implemented portfolio. Based on country capacity and expected timelines to Another example is Ghana, where the FCPF supports a governance structures at the national and subnational levels, in seven districts covering the different regions of the country. progress through the Carbon Fund business process, the first partnership between the National Cocoa Board, small-scale but also other topics, such as improved forest management At the national level, a steering committee was created by ERPD submissions to the Carbon Fund are expected in FY16. cocoa farmers and cocoa-sourcing private sector companies. practices. national decree, which has civil society representation and is Therefore, there is no possibility of signing five ERPAs by 2015 Partnership opportunities evolve around promoting climate- In Ethiopia, representatives of civil society organizations meeting regularly. To better engage regional stakeholders, two as per target in the FCPF M&E Framework. smart cocoa practices, agroforestry, and community-based and “underserved communities” are actively engaged in the provincial level landscape/REDD+ Forums were established. approaches to increase cocoa productivity and meet evolving REDD+ working groups, including the SESA task force. The task Consultations were accompanied by a comprehensive Output 2.3: Increased levels of private sector investment for global industry demand for sustainable cocoa supply chains. force played a critical role in providing oversight to the SESA communications plan, which included radio, TV, an online incentivizing, testing, and supporting up-scaling of ER activities process and the development of the Environmental and Social cartoon, pamphlets, and policy briefings. Output 3.1: Enhanced capacity of IP and CSOs to engage in Management Framework (ESMF) in Ethiopia. The CSOs and Civil society actors and Indigenous Peoples representatives Output-level indicator 2.3: Number of private sector participants REDD+ processes at the country level the organizations representing underserved communities in have been actively engaged in national- and community-level in Carbon Fund Ethiopia represented in the Task Force include: Climate Change activities related to ER Program development in a number Target: Two new private sector participants by 2014 Output-level indicator 3.1.a: (i) Number and type of examples Forum (CCF) Ethiopia, Ethiopia Environmental Journalists of countries. For example, in Nepal and Vietnam, IPs were of in-country REDD+ actions where IP and CSOs and local Association, Farm Africa, Initiative for Living Community Action, included in the government’s team tasked with drafting the ER- While the FCPF Carbon Fund is no longer actively pursuing communities participate actively Pastoralist Forum Ethiopia, and SOS Sahel. Over the last year, PIN. Both countries further have oversight committees for ER new private sector participants into the Fund itself, the FCPF is instead focusing on strengthening relationships with the private Target: Various new examples exist with strong evidence of IP local consultations were targeted in the Oromia region, the Program development in place in which IPs are represented. IPs sector with a view to facilitating public-private partnerships with and CSO active participation and broad community support in geographical area proposed for an ER Program and active have been instrumental in providing input and drafting relevant companies that produce, trade or buy commodities that have a REDD+ programs/readiness by 2015 participation of CSOs and local communities at the local-level sections on consultations, SESA, land tenure, and benefit role in driving deforestation or forest degradation. In Mexico, the CONAF Roundtable for Indigenous Peoples and (i.e., the Kebele and Woreda levels) was notable. sharing. In DRC, CSO and IP platforms have been involved The important role that the private sector can have for Rural Dwellers was established in 2014. It aims to provide To strengthen public accountability within emerging in drafting of the MTR and R-Package for DRC and are now REDD+ featured prominently at the UN Secretary General’s support and feedback to the consultation process on the REDD+ structures in Uganda, a self-selection process has actively engaging in consultations on ER Program design in the Summit on climate change that took place in New York in 2014, national REDD+ Strategy (ENAREDD+). Amongst others, been planned to select CSO and IP representatives for REDD+ Maï N’dombe region (see Box 3). and the resulting New York Declaration on Forests. With climate the roundtable is intended to provide additional input to the institutional arrangements such as the REDD+ Technical change impacting the bottom line of private sector business consultation plan for the strategy; develop a joint methodology and the security of supply chains, combined with growing for implementing of the ENAREDD+ consultations, with consumer awareness of the deforestation impact of certain emphasis on modalities directed at rural and indigenous commodities, the private sector has an increased interest in communities, to ensure that they are culturally relevant; developing working relationships with the public sector to evaluate the ENAREDD+ consultation process and make address underlying constraints. Such constraints include the recommendations at each phase; and help to systematize the need for land policy reform, improved smallholder capacity in comments and opinions expressed during the consultation supply chain management, transformative shifts to sustainable phase and make recommendations for their inclusion in the farming practices, and improved enabling environments for final ENAREDD+ document. The following organizations are private sector to decouple increased agricultural production involved in the roundtable: State Union of Community Foresters from deforestation. of Oaxaca, A.C. (UESCO), the National Union of Communal In FY15, the FCPF escalated its engagement with selected Forest Organizations A.C. (UNOFOC), the Governing Council private sector companies to help facilitate public-private of the Mexican Network of Rural Forestry Organizations A.C. partnerships that take deforestation out of the commodity (RED MOCAF), the Indigenous Tourism Network of Mexico supply chains. REDD+ Countries are also increasingly aware of (RITA), the Wirrarica Interstate Union of Ceremonial Centers of the importance of engaging the private sector to achieve impact Nayarit, Jalisco and Durango, and the Union of Sierra de Juarez at scale. Communities, A.C. (UCOSIJ). For example, Mondelēz International and its suppliers have 32 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 33 FY15 ANNUAL REPORT BOX 3: EXAMPLES OF PROJECTS TO ENHANCE THE CAPACITY OF IP AND CSOS TO ENGAGE IN REDD+ PROCESSES BOX 3: continued Nepal: Participation in REDD+ Decision-Making team to present Indigenous Peoples’ views on SESA Amazon Region: Developing a Forest Carbon Map for Kenya: Enhancing Indigenous and Local Community and Consultation of Indigenous Peoples and other relevant issues. Indigenous Territories and Protected Areas (Instituto del Consultation and Participation in Sustainable Forest Marginalized Forest Dependent Communities Bien Común) Management • Developing case studies and articles on indigenous From January 2012 to July 2014, the Nepal Federation Indigenous Territories and Protected Areas account for The project, implemented by the Kenyan Indigenous knowledge and customary institutions contributing to of Indigenous Nationalities (NEFIN) implemented a 55 percent of all carbon stored in the Amazon; however, Peoples’ organization Mainyoito Pastoralist Integrated climate change adaptation and mitigation in Nepal. capacity building project financed by the FCPF IP/ logging, agriculture, mining, infrastructure projects Development Organization (MPIDO), enhanced CSO Capacity Building Program based on a set of Panama: Strengthening REDD+ Capacities of Guna and oil drilling increasingly threaten these lands, indigenous and local community consultation and REDD+ themes that were identified as crucial by Leaders, Women and Youth in the Gunayala Comarca which cover 4.1 million square kilometers spanning participation in sustainable forest management and several Indigenous Peoples’ communities in Nepal. From 2013-2014 the Panama-based organization nine South American countries. From September REDD+ activities. The project facilitated the preparation NEFIN adopted a two-tiered implementation approach, Fundación para la Promoción del Conocimiento Indígena 2013 to December 2014, the Instituto del Bien Común of several studies addressing central REDD+ themes developing a capacity building and awareness-raising (FPCI) implemented a project financed by the FCPF IP/ (IBC), a non-governmental organization based in Peru, from a Kenyan Indigenous Peoples perspective. Project project at the national and local level (in six districts: CSO Capacity Building Program to strengthen REDD+ developed and disseminated a Forest Carbon Map for implementation adopted a strategic thematic approach Khotang, Sindhupalchok, Sankhuwashabha, Dolakha, capacity of Guna leaders, women and youth. Following Amazon Indigenous Territories and Protected Areas. and identified four focus areas for study: (a) land tenure, Dhading and Rolpa). The ultimate aim was to enhance their customary consultation processes, the project The project, partially financed through a grant made (b) benefit sharing arrangements, (c) governance the participation of indigenous and rural communities included a series of workshops and activities on social from the Forest Carbon Partnership Facilities’ capacity and institutional frameworks, and (d) indicators on dwelling in Tarai Hill and Mountain areas to participate and environmental safeguards issues at the community building program, facilitated the collaboration between Indigenous Peoples in the context of national REDD+ in REDD+ Readiness decision-making processes level in the Guna Yala Comarca. The project enhanced a network of scientists, NGO networks, indigenous design, implementation and monitoring. The studies and consultation. The International Work Group for the understanding of REDD+ issues with the Indigenous organizations and policy experts working on REDD+ were conducted by a team of consultants, who are Indigenous Affairs (IWGIA) and the Indigenous Peoples' Peoples’ community, notably the participation of and strengthened forest carbon mapping capacities themselves members of Indigenous communities in International Center for Policy Research and Education indigenous women’s participation in the various capacity of representatives of the Technical Secretariat of the Kenya with a shared cultural background, including (TEBTEBBA) supported the preparation of training building activities and the informed participation of rural Amazon level NGO Coordinadora de las Organizaciones local knowledge and language of communities visited, materials led by NEFIN. Key activities included: stakeholders in the national REDD+ Readiness process Indígenas de la Cuenca (COICA) and representatives of familiarity with local geographical and political in Panama. Key activities included: several COICA member organizations. It also reinforced dynamics, and extensive contacts and relationships • Preparing training materials, including Land, Forest the centrality of the role and positioning of Indigenous within some of the project sites. Key activities involved: and Indigenous Peoples' Rights in Relation to Climate • Holding two training workshops on REDD+ topics, Peoples and other rural stakeholders in the Amazon Change and REDD and Frequently Asked Questions including climate change, adaptation, mitigation, with • Provide baseline information on land tenure status Region national REDD+ processes. on Climate Change and REDD+ and a video on the participation of Guna leaders and authorities, and within Indigenous territories. climate change and REDD+. Guna women, and youth. Subsequently, project activities included the preparation • Developing a report on Indigenous Peoples’ REDD+ of a general outline to develop the Forest Carbon Map • Holding project meetings and eight capacity • Progressing in the study on social and environmental benefits sharing and financing mechanism from a and a workshop allowing the review of the Forest building workshops, with a gender balance, across safeguards, which is being implemented following Kenyan Indigenous Peoples’ perspective. Carbon Map design for Amazon Indigenous Territories the country. Altogether 143 women and 135 men customary rules. • Conducting an analysis of the National REDD+ and National Protected Areas and a draft informative participated in the various activities, including 278 strategies to examine the extent to which Indigenous • Disseminating project activities at the local level, document describing the approach, methodology, Indigenous Peoples’ leaders, and journalists and CSO Peoples’ issues have been incorporated. This through community activities and local radio. and results of the Forest Carbon Mapping. The peer- representatives. included a report and documentary on community reviewed study was released at the UN climate • NEFIN organized a consultation meeting among conference in Peru (December 2014) and was widely engagement. Indigenous Peoples and the SESA consultants’ disseminated via numerous international media coverage articles. 34 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 35 FY15 ANNUAL REPORT Output-level indicator 3.1.a: (ii) Examples of resources made In FY15, FCPF observers expressed their appreciation of REDD+ include Cameroon, Chile, Colombia, Costa Rica, DRC, El produced quarterly, also drives traffic to the FCPF website, available to enable active participation of IP, CSOs, and local the role the FCPF has had in building a trustful partnership Salvador, Fiji, Guatemala, Guyana, Honduras, Indonesia, Kenya, the main platform for information and knowledge sharing. The communities in national REDD+ readiness between observers, countries and the Facility itself, and its Mexico, Nepal, Nicaragua, Panama, Peru, Republic of Congo, FCPF website, which continues to be updated with news from REDD+ Countries are increasingly recognizing the value that role in facilitating inclusion and participation of IPs at global, Thailand, Uganda, Vanuatu, and Vietnam. In Bhutan, Côte the Secretariat and country programs, had an increase in visits active participation of IP, CSO, and local communities can bring regional, and most importantly, national level. d’Ivoire, Ethiopia, Ghana, Liberia, Madagascar, Mozambique, of 14 percent over the past fiscal year. In addition, there was a to national REDD+ readiness. Nigeria, Uruguay, and Togo, CSOs and local communities (in the 30 percent boost in the volume of users of the website over this The Government of Nepal, for example, allocated significant Output-level indicator 3.1.c: Examples of IPs and REDD+ case of African countries) are part of these structures. period compared to the previous fiscal year. resources of $250,000 from their REDD+ readiness grant to the country-CSO representation in institutional arrangements for The FCPF also remains engaged in promoting its activities national CSO/IP Alliance Platform to enable its active support to REDD+ at the national level Output 3.2: Pilots have been successfully implemented on ways and knowledge through social and digital media. The FCPF the consultation process under the readiness phase. The CSO/ Governments are paying increasing attention to effective to sustain and enhance livelihoods and conserve biodiversity Facebook page dramatically increased its outreach over the IP Alliance allocated the funds onwards to involved IP and CSO processes and institutional arrangements for engagement past fiscal year, starting at under 200 followers to surpassing organizations in an effort to enhance capacity at decentralized of IPs and civil society in national and sub-national REDD+ Output-level indicator 3.2.a: Number of countries where 700 followers over only a 12-month period. Certain posts on the levels. planning and implementation. This is not only based on the stakeholder engagement platforms proposed in RPPs have FCPF Facebook page have reached over 400 readers. The FCPF In Fiji, Vanuatu, and Thailand readiness grant resources FCPF’s commitment to social inclusion, but also increasingly taken up work and meet regularly has also shared lessons learned through online feature stories have also been set aside to support similar efforts of organizing a result of positive experiences made by countries that have The majority of countries have established or are in the on topics related to new programs selected into the pipeline, and strengthening of REDD+ CSO Platform. led the way with inclusive institutional arrangements and seen processes of operationalizing stakeholder engagement engagement of Indigenous Peoples in program design and the benefits, such as constructive ways to prevent grievance, ensure platforms and associated inclusion processes to deepen landscape approach, among others. These stories are promoted Output-level indicator 3.1.b: Number of IP and REDD+ country input from all stakeholders, and improve the overall public participation and collaboration with a wide range of local, through the World Bank’s communication channels focused CSO representatives (men/women and/or youth) that have perception of REDD+ processes. subregional, and national stakeholders relevant to REDD+. An on Climate Change, Environment and Natural Resources and participated and benefitted from FCPF organized workshops/ As a result, IPs are now represented in many national example is provided in Box 5. Agriculture. In addition, the FCPF has an active presence on trainings on SESA, governance, MRV aspects/related aspects of institutional arrangements for REDD+, such as national REDD+ the World Bank’s Climate Change Twitter account (@wbclimate) REDD+ technical bodies and steering committees. In many countries, Output 4.1: Knowledge products and lessons from piloting which has over 50,000 followers. FCPF observers from Africa, Asia and LAC participated they are actively contributing to the planning and design of of REDD+ in general and FCPF activities in particular are Selected knowledge products in FY15 included: in a high-level dialogue organized by the World Bank and REDD+ readiness implementation as well as the design of developed and disseminated, in accordance with global In March 2015, the FCPF hosted a webinar with three experts attended by World Bank Group senior management, including REDD+ pilots and programs. In countries where IP and CSO knowledge management and communication strategy and who collaborated on a study on the “Forest Carbon Assessment the World Bank Group’s President. This meeting focused groups are not yet represented in the highest-level of national annual work plans in the Amazon’s Indigenous and Protected Areas.” The work on mechanisms for deepening IP inclusion in World Bank REDD+ committees (typically at the ministerial level), efforts In FY15, the FCPF continued to disseminate knowledge and was led by the Amazonian Network of Georeferenced Socio- processes for sustainable development. FCPF observers have continue being made by these groups for permanent inclusion lessons learned from FCPF activities through digital and print Environmental Information (RAISG) in collaboration with the also been actively supported by the FMT to participate in other into these top-level coordination arrangements. platforms. This past year, the FCPF Secretariat launched a Woods Hole Research Center, COICA (Coordination of Indigenous international processes and fora, like the UN Permanent Forum While not exhaustive, the countries that are known to newsletter, Inside FCPF, to share timely updates on REDD+ Organizations of the Amazon River Basin) and the Environmental on Indigenous Issues, as well as in the Conference of Parties have IPs and CSOs representation as part of national REDD+ Country activities, FCPF deadlines, knowledge products, and Defense Fund, and partially financed through a grant from the meetings organized by UNFCCC. technical bodies and/or national institutional arrangements for images from FCPF events with stakeholders. The newsletter, Forest Carbon Partnership Facility. BOX 4: IMPLEMENTATION OF THE FCPF CAPACITY BUILDING PROGRAM (CBP) FOR FOREST-DEPENDENT PEOPLES BOX 5: EXAMPLE OF A STAKEHOLDER ENGAGEMENT PLATFORM: MOBILIZING CIVIL SOCIETY ORGANIZATIONS FOR AND SOUTHERN CSOS PARTICIPATION IN REDD+ ACTIVITY IN CAMEROON Implementation of the IP/CSO Capacity Building Program continued in FY15, with emphasis shifting to the start-up of the The From March to December 2013, the REDD+ and Climate Change Platform of Cameroon (REFACOF) implemented a Program’s second phase. Significant progress was made on clarifying and following the processing steps within the World project financed by the FCPF IP/CSO Capacity Building Program to organize and mobilize civil society organizations from Bank for the six new grants (two per regional bloc) to be provided under this phase. 30 of Cameroon’s Sub-Districts to enhance full, direct and effective participation of indigenous and local communities in the REDD+ Readiness process. The focus areas involved monitoring and reporting on REDD+ actions including dynamics A workshop was organized in May 2015 in Washington, DC, to strengthen capacity of grant recipient organizations on deforestation and forest degradation, sustainable forest management, conservation of forest and biodiversity, enhanced (previously referred to as “regional intermediary organizations”). The workshop helped recipients to: i) refine the design of forest carbon stock, and social, environmental, and governance-related safeguards. The project allowed the REDD+ and their projects; ii) better reflect the regional context in their nascent work plans; and iii) understand project implementation Climate Change Platform to reach communities at the local level and engage community focal points for REDD+ and arrangements for the projects more fully. Climate Change related initiatives. Key achievements included: Slower progress was seen in other areas, such as in the solicitation and securing of no-objections from REDD+ country governments to operate the CBP in their countries, in keeping with World Bank guidelines for small grants. Consequently, • Organizing a repertoire of 331 civil society organizations engaged in REDD+ and Climate Change activities in a self-selected group of PC members, the “FCPF Capacity Building Program Monitoring Group”, was established to Cameroon (including Indigenous Peoples organizations, women’s organizations, and youth organizations, among monitor the FMT’s advances on the preparation and approval of grants under Phase 2. The FMT reports to the group on a others). quarterly basis. • Setting community coordination structures in 10 regions in Cameroon, composed of 80 female and male Meanwhile, during FY15, 10 of the 12 active contracts under Phase 1 of the CBP were completed and closed. The two coordinators. contracts that remain open, which have a total remaining balance of $44,688, were entered into with IP organizations in Latin America, and they are expected to conclude in the third quarter of FY16. To date, 26 contracts totaling $ 1.9 million have been completed and closed. 36 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 37 FY15 ANNUAL REPORT In April 2015, the FCPF jointly published a report, “Early contribute to poverty reduction, focusing on Output 4.3: Strong visibility of REDD+ and FCPF is achieved Output-level Indicator 4.3.b: Number of negative mentions Lessons from Jurisdictional REDD+ and Low Emissions smallholders in the timber supply chains, organization of FCPF and REDD+ issues in different key media Development Programs,” with The Nature Conservancy. The of small producers to participate in plantations Output-level Indicator 4.3.a: Number of neutral/positive worldwide per year report features eight jurisdictional REDD+/LED programs activities, extension and support services and public- mentions of FCPF and REDD+ issues in different key media Critical mentions of the FCPF and REDD+ issues in international designed to reduce forest-related emissions (six of these private partnerships; worldwide per X period media worldwide have dropped following the approval of key jurisdictions have been admitted into the FCPF Carbon Fund In the context of the build up to international climate technical and thematic guidance, such as the Methodological pipeline). The joint study finds that with appropriate investment • Increase awareness on the latest advances on negotiations at COP21 in Paris, mentions of the FCPF in the Framework. Some negative mentions of the FCPF remain related and support, jurisdictional REDD+/LED programs have the silviculture and technologies on fast-growing media have remained consistent and have been related to how to safeguards for land tenure and carbon rights. The FCPF potential to become transformational models of forest-friendly species with particular emphasis on applicability for the FCPF is piloting REDD+ at scale and putting into practice Secretariat has responded when necessary to inconsistencies development. smallholder forestry; environmental sustainability in what is under discussion in the international policy forum. between FCPF activities and media reports. In May 2015 the FCPF launched a report on a forest forest plantation, including the relationship between Media attention focused on additional selection of ER-PINs governance assessment for REDD+ implementation through forest plantations and the reduction of pressure on the into the Carbon Fund pipeline as well as general interest in application of the PROFOR forest governance tool carried out native forest; emerging engagement and partnership building with the in Lao PDR. The publication includes background information private sector. • Enable participants to bring home skills and on the knowledge and experience from implementing the forest transferable knowledge on public policies and governance diagnostic exercise as part of the country’s REDD- incentives to foster forest plantations by the private readiness process. sector (large, small, domestic and international) that In May 2015, the FCPF launched a Technical Decision could be applied in their country contexts and used to Support Tool and associated Training Material, both of which formulate concrete actions; are available through the FCPF website. The Tool guides countries with the development of forest reference emission • Provide participants with knowledge on tools to access levels (emission baselines) and forest monitoring capacity. More to finance, smart subsidies and innovative sources specifically, it supports REDD+ countries with making a variety of financing for forest activities and how to create a of technical and policy decisions and with advancing capacity positive investment climate for forest activities and building and training. The REDD+ Decision Support Tool allows wood industry; users to explore policy, methodological and technological options and gain deeper understanding with a set of comprehensive • To establish and strengthen lasting partnerships with technical training materials. The toolbox is intended to be used Brazilian entities and agencies working in the forestry by FCPF countries as they consider key design and technical sector that can be sustained after the study tour. components of their national or subnational REDD+ programs. It provides practical guidance based on existing REDD+ frameworks On November 4, 2014 a Joint FCPF–UN-REDD Programme including the UN Framework Convention on Climate Change the Knowledge Exchange Day was held in the context of the UN- FCPF’s Carbon Fund Methodological Framework. REDD Policy Board and FCPF PC meetings in Arusha, Tanzania. In June 2015, the FCPF and UN-REDD Programme jointly The event helped build capacity, foster South-South knowledge published a Guidance Note on Establishing and Strengthening exchange, and promote mutual learning as part of the FCPF’s Grievance Redress Mechanisms, which serves to strengthen objective to disseminate knowledge on REDD+. The knowledge in-country capacity for grievance resolution in order to respond to day brought together 150 participants and included: i) a panel contentious issues, complaints and disputes, and provides tools session on country perspectives on coordination of different to help carry out activities to assess and strengthen grievance multilateral, bilateral, and private funding streams for REDD+, ii) redress mechanisms during the readiness phase. a technical capacity building session on forest carbon monitoring, in particular on design of the reference emission level and a Output as per PMF 4.2: Participants actively engage in South- forest monitoring systems, iii) several parallel South-South South learning activities knowledge exchange session on six thematic topics ranging from safeguards approaches to payment for environmental services Output-level Indicator 4.2.a: Number of S-S learning activities schemes. and/or events connecting FCPF countries Output-level Indicator 4.2.b: Total number of participants to From February 23-28, 2015 representatives from government South-South knowledge exchange activities by category and private sector in Ethiopia and Mozambique traveled to Brazil for a South-South knowledge exchange on sustainable In FY15, the FMT’s focus has been on providing targeted, forest plantations. The study trip included meetings and country-tailored support, training, and capacity building learning sessions with government, private sector and research with R-Package as well as ER Program development. In institutions on how forest plantations can promote rural FY15, countries emphasis was more on advancing program development and reduce pressure on native forests. The study development than on requesting South-South exchanges. tour aimed to: More requests for South-South exchanges are expected to come in FY16. • Increase participants’ knowledge on how re/ afforestation activities and planted forests can 38 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 39 FY15 ANNUAL REPORT FCPF REDD+ COUNTRY PARTICIPANTS 40 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 41 FY15 ANNUAL REPORT Coordinating with other REDD+ Initiatives Participants. Most of the carbon assets will be used to meet compliance targets under the UNFCCC’s Kyoto Protocol, which ended in 2012. REDD+ has a challenging agenda given its multi-sectoral and multi- Leveraging lessons and experience from a successful track record on project-based carbon finance in the land-use stakeholder dimensions, and the large financial and capacity needs sector, the BioCF embarked on a new initiative in FY13, the Initiative for Sustainable Forest Landscapes (ISFL). The involved. It is important, therefore, that development partners come ISFL builds on the lessons and experience from a successful 10-year track record on project-based carbon finance in the land-use sector. The multilateral facility promotes and rewards reduced greenhouse gas emissions from the land together to provide a package of financial and technical assistance 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 to better serve their client countries. 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. UN-REDD Programme The ISFL has made progress since its inception in 2013, establishing policies, guidelines, and processes essential for the administration of the Initiative. Further, the Initiative has identified, selected, and opened jurisdictional windows as part In FY15, the FCPF and the UN-REDD Programme continued their cooperation in providing assistance to countries to get of its portfolio. The first jurisdiction to be added to the ISFL pipeline was Oromia, Ethiopia. In FY15, the ISFL also added a ready for REDD+. Coordination has entailed joint country missions and sharing responsibility for financing readiness program in Zambia’s Luangwa valley. 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. The UN-REDD Programme further REDD+ Partnership consulted with the FCPF on its 2016-2020 UN-REDD Programme Strategy. In FY15, several knowledge activities were During FY15, the FMT again served as Secretariat of the REDD+ Partnership. The FMT oversaw the completion of key planned and carried out jointly. Further, a joint Knowledge Day was organized in conjunction with the UN-REDD Policy priorities of the REDD+ Partnership’s 2014 work program, including organizing the final REDD+ Partnership global Board and FCPF Participants Committee meeting, that brought together over 150 participants and stakeholders from both meeting in Lima (November 2014), contracting a scoping paper on public private partnerships, and procuring an analysis initiatives to jointly reflect on progress and achievements made with REDD+ readiness as well as implementation since the of the 2014 data from the Voluntary REDD+ Database. At the Lima meeting, partners decided to close the REDD+ two initiatives became operational five years ago. Partnership, but opted to continue the internet-based Voluntary REDD+ Database for two more years in order to collect and publish transparent data on international public funding for REDD+. Responding to this request, the FMT developed Forest Investment Program a detailed work plan and two-year contract, which was awarded to FAO. The FMT will continue to manage and provide quality control for the contract throughout 2015 and 2016, thus ensuring the continuation of the database. 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 23 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), and additionally 14 countries have been selected into the FIP in May 2015. The FIP and FCPF are active in the following countries: Cambodia, Cameroon, Côte d’Ivoire, Guatemala, Guyana, Honduras, Mozambique, Nepal, Republic of Congo, Uganda, Zambia. Implementation at the country level is based on FIP investment plans that have been developed through a country- led process, 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 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 PC19 meeting and presented an update of implementation activities in FIP countries, which are also supported by the FCPF Readiness Fund. The FIP has also continued to take advantage of the established FCPF roster of experts for the independent review of investment plans prior to their endorsement by the FIP Sub-Committee. 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 emission reductions with strong environmental and socio-economic benefits for local communities. In the first-generation trust funds, about 80 percent of the BioCF’s resources were earmarked for afforestation and reforestation projects under the Clean Development Mechanism (CDM); the remainder was allocated to REDD+ and sustainable land management projects (including agriculture). BioCF projects have a range of different objectives, including fuel wood production, timber production, and environmental restoration. With the development of 10 CDM- or VCS-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 assets to its 42 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 43 FY15 ANNUAL REPORT 5 Issues and Challenges The overall progress on FCPF outputs and outcomes as intended for the FY15 reporting period has been satisfactory. While progress has been made to resolve previously identified challenges related to disbursement and country-level Monitoring and Evaluation (M&E) reporting, the Facility Management Team (FMT) will continue its efforts to monitor and address these with further follow-up action in FY16. 5.1. Disbursements Operationalizing Private Sector Commitments 5.3.  In FY15, the recent trend of an acceleration in grant In FY15, the FCPF engaged with private sector companies in disbursements continued. The $16.4 million in grants the context of emerging ER Programs to identify opportunities disbursed during FY15, represented an increase of over for facilitating partnerships between REDD+ country 100 percent compared to the previous year. In addition, the governments and companies that produce, trade, or buy number of new readiness grants signed in FY15 increased agricultural commodities that impact on forests. One of the from 22 to a total of 35. Six countries reached mid-term main challenges encountered was a disconnect between status in the past year and are now in the process of signing company commitments and pledges made at headquarters additional grants of $5 million each. It is therefore expected and the reality in decentralized company offices on the ground. that disbursement will continue to increase significantly in the In some instances, local company representatives were not coming year. ready to commit to deforestation-free products. To bridge this However, several countries are yet to sign their grant gap, the FCPF has reached out to both company headquarters agreements and others may benefit from increased attention and local country offices in parallel in an effort to achieve to disbursement targets. The FCPF will continue to assist shared objectives. The FCPF is further exploring partnership countries in meeting disbursement targets based on a set of opportunities by focusing on existing sustainable agriculture actions presented and discussed at PC16 in December 2013 activities and initiatives by companies in the ER Program area. (refer to FMT Note 2013-6). Leveraging Investment Finance 5.4.  Country-level M&E Frameworks and 5.2.  The cost of ER Program implementation may often exceed Readiness Reporting potential carbon payments that countries can generate Compared to the previous year, country progress reporting in from verified emission reductions. Countries are aware that line with the FCPF’s Monitoring and Evaluation Framework REDD+ is not serving to provide full cost recovery of the improved in FY15. All countries with signed grant agreements implementation cost of REDD+ activities that a country may reported on progress. While countries applied the PMF’s new carry out. As such, countries are increasingly focusing on reporting format, the quality of the reporting continues to vary identifying and aligning various streams of upfront investment widely. finance to cover implementation cost. The FCPF has been A number of countries (i.e., Ghana, Kenya, Liberia, and supporting countries in identifying potential sources of 100% Nepal amongst others) can draw on their national M&E investment finance. However, additional sources, including systems for robust monitoring data of national REDD+ through innovative financing mechanisms may be needed. In readiness and emerging REDD+ programs. A national M&E FY16, the FCPF will continue to provide guidance on innovative system helps countries keep track of activities and results, financing options as well as support countries with leveraging as well as identify and address gaps. However, at the overall traditional investment finance. portfolio level, progress with the development of national level M&E frameworks has been slow. In FY15, the FMT continued to reach out to countries to offer guidance and support for preparation of M&E Grant disbursement frameworks, but demand has remained low. The independent evaluation of the FCPF in FY16 may increased by 100% in FY15 provide an opportunity to review the FCPF’s M&E Framework, compared to FY14 consider the relevance of all criteria and indicators in the current PMF and identify barriers for country reporting. 44 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 45 FY15 ANNUAL REPORT FCPF supports countries efforts to achieve emission reductions from deforestation and/or forest degradation, and to benefit from possible future systems of positive incentives for REDD+. 46 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 47 FY15 ANNUAL REPORT Risk: 6 Monitoring of Assumptions and Risk The following table presents a snapshot of assumptions identified in the Log Frame against key impacts, outcomes and outputs, the level of risk associated with these assumptions, and the proposed mitigation measure as relevant. An assumption in most cases Across the portfolio indicates areas/circumstances that are beyond the control of the completion of SESAs and governance framework of the FCPF. ESMFs is still low. However, tracking of assumptions is important to gauge the M&E Framework is included in Column 1 of the table. unforeseen consequences in case the assumptions did not A second table with new risks that were previously not hold true. Reference to the impact, outcome and output identified in the Log frame is also included. where the assumption was referenced in the Log Frame of 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 Low Technical aspects on REDD+ The risk associated with this Outcome 1 negotiations under UNFCCC have been agreed on and the assumption is beyond the direct Output 2.3 remain supportive. remaining uncertainty is the control of the FCPF. The FCPF Outcome 3 inclusion of REDD+ in a new continues to remain responsive Outcome 4 climate agreement. and to inform the negotiation Output 4.3 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 require Readiness Fund, submission monitoring. of the R-Package by REDD+ Participants is voluntary. Outcome 1 There are no extraordinary Medium At the portfolio level, some No mitigation measure is circumstances in the countries have socio-political required at this stage at the country that prevent circumstances that could slow portfolio level. submission of RPs. submission of the R-Package. 48 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 49 FY15 ANNUAL REPORT Level at which Current Level at which Current assumption is Original assumptions level Explanation of Mitigation assumption is Original assumptions level Explanation of Mitigation referred to in LF from LF of risk risk rating measure proposed referred to in LF from LF of risk risk rating measure proposed Output 1.2 Plans and targets were Low R-PPs of all 45 active DPs are actively pursuing signed Output 4.2 Events managed directly Medium There is diversity in the Countries continue to enhance realistically assessed by countries have been assessed grant agreements. by countries (not organized FCPF portfolio on how communication and stakeholder technical experts before by the PC. At the portfolio by FMT itself) are timely events are managed at the engagement capacity through approval in view of existing level, signing of grant and effectively planned to country level. Assessment readiness grants and other baseline capacities and agreements has significantly feed into the process of is based on feedback. Broad bilateral sources. participant countries’ increased with 35 signed learning and involve key feedback received by the FMT contexts. grants. It is expected that stakeholders. from country stakeholders all grant agreements will suggests that processes in be signed by end of FY16, country have been inclusive. with the exception of special circumstances. Output 1.3 The political and socio- Low The overall risk at the The diversity of REDD+ countries New risks/previously unidentified risks that have a Mitigation measure proposed economic context in the portfolio level associated in the portfolio is a built-in bearing on annual work planning and intervention logic Participant countries with the political and mitigation measure. 1. Weak procurement capacity has delayed the start of readiness Readiness grants are recipient-executed and are supporting the hiring remains stable enough over socio-economic context for implementation in some countries. of procurement experts and/or the procurement training needs of the implementation period readiness implementation relevant staff of the national REDD+ coordination office. 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 forthcoming high enough. schemes has been high in the periods. 2. Reduced interest of private sector in REDD+ at the country level Countries encourage a dialogue with relevant private sector companies reporting period. Interest in in the design of ER Programs and REDD+ strategy preparation. performance-based payments by REDD+ countries is evident from the additional ER-PINs and early ideas presented to the CF. Output 2.2 A large enough number of Medium/ The assumption is in relation Piloting of the MF in the first few countries have the capacity High to the likelihood of countries REDD+ countries is proposed to meet all standards and entering the CF portfolio. The and will provide a realistic FCPF/DP administrative risk rating is subjective and assessment of country capacity processes do not put undue based on the early feedback to meet the standards. burden on the CF operation. from REDD+ countries in the course of the development of the MF. Output 2.4 Five REDD+ countries have High The successful selection The business process (under signed ERPAs by 2015. of ER-PDs will indicate the preparation) is realistic. timelines for ERPA signing and program implementation. The term of the Carbon Fund has been extended until 2025 to allow adequate time for ER Program development and implementation. Output 3.1 Relevant guidelines in the Low/ The SESA process is starting At the portfolio level, some Common Approach are Medium to be rolled out in readiness stakeholder groups identified followed and processes implementation in several a need to enhance in-country such as SESA are actually countries. understanding of the SESA. implemented in countries, Among other efforts, the FMT providing for a receptive has held regional-level, social environment. inclusion workshops to mitigate this gap and ensure proper SESA implementation. 50 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 51 FY15 ANNUAL REPORT 7 FY15 Financial Report of the Facility The value of grant allocations to REDD+ Countries at the end of FY15 was about $211 million whilst signed grant agreements represent firm commitment of over $143 million. 7.1. Financial Overview of the Facility (see Table 6) and investment income of $2 million earned on the account balance. Total disbursements on a cash basis during Committed funds to the Readiness Fund and the Carbon Fund FY15 were $27 million, made up of cash expenditures of $6.9 of the FCPF at the end of FY15 total almost $829 million, with million, grant disbursements of approximately $16.4 million, and $373 million committed to the Readiness Fund and $456 million disbursements to Delivery Partners for grants of $3.8 million. committed to the Carbon Fund (see Tables 6 and 12). Both funds are well-resourced with committed funding more than 7.2.2. Funding Sources adequately covering current funding needs. Fund balances at the end of FY15 total $723 million, made a) Donor Contributions up of $276 million in the Readiness Fund and $447 million in Table 6 presents the committed contributions to the Readiness the Carbon Fund, with cash balances of $227 million in the Fund as at the end of FY15. The fund continued to grow in Readiness Fund and $351 million in the Carbon Fund (see financial terms during FY15, with total contributions of $373 Tables 5 and 11). million at the end of FY15 compared to a total as at the end of The value of grant allocations to REDD+ Countries at the FY14 of $357 million. The additional commitment from Germany end of FY15 was $211 million (Table 10) whilst signed Grant during FY15 of almost $24 million represents a good portion Agreements represent firm commitments of over $143 million. of this increase. However this gain was offset slightly by Grant disbursements from the Readiness Fund have continued unfavorable exchange rates affecting outstanding contributions. to accelerate such that at the end of FY15 they were $61 million, In terms of cash, the Readiness Fund received donor including transfers to Delivery Partners other than the World contributions of $27 million over the past year. This was made Bank for onward transfer to REDD+ Countries of $26.6 million up of $23.8 million from Germany, and $3.2 million from (Table 5). That end of FY15 figure equates to a nearly 50 percent Finland. This brought the total cash contributions to the end of increase of the cumulative grant disbursement figure in a single FY15 to $323.6 million. This leaves outstanding contributions fiscal year. of $49 million from existing signed agreements to be paid by Norway ($47.8 million) and the European Commission 7.2. The Readiness Fund Term of Carbon Fund ($1.1 million) into the Readiness Fund in the coming years. extended to 7.2.1. Fund Balance These outstanding contributions represent agreed phased 2025 contributions spread out over a number of years. Table 5 shows the summary financial statement for the fund from the opening of the fund to the end of FY15. The Readiness b) Investment Income Fund balance at the end of FY15 is a healthy $276 million, with a cash balance of $227 million. The difference of $49 million is Table 5 shows Investment Income figures over the life of the represented by outstanding contributions from the European fund. Amounts paid into the trust fund, but not yet disbursed Commission and Norway as shown in Table 6. (the fund balance), are managed by the International Bank Total Donor Contributions received to date are $324 million. for Reconstruction and Development (IBRD), which maintains Investment income of $9.9 million brings the total receipts to a pooled investment portfolio (the Pool) for all of the trust date to nearly $334 million. Total disbursements to the end of funds administered by the World Bank Group. Because all FY15 are nearly $107 million and consist of $45.7 million in cash Participation Agreements with Carbon Fund Participants disbursements, $34.4 million in grants to REDD+ countries, indicate that any interest generated by prepaid contributions and $26.6 million in disbursements to Delivery Partners for shall be channeled to the Readiness Fund, the Readiness Fund Readiness Grants to countries. receives an allocated share of investment income from this Pool Total new funds into the account during FY15 amounted to which consists of interest for both the Readiness Fund and the about $29 million, made up of donor contributions of $27 million Carbon Fund. The total investment income deposited into the 52 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 53 FY15 ANNUAL REPORT Readiness Fund (on the Readiness and Carbon Fund balance) amounting to $2.0 million has been credited to the Readiness 7.2.3. Funding Uses contributions management, accounting, specific legal up to the end of FY15 was $9.9 million. During FY15, investment Fund. operations related to the facility as a whole, and other services a) Cash Disbursements income on the combined Readiness and Carbon Fund balances required by the Readiness Fund Trustee, including making the Cash disbursements represent all non-grant disbursements arrangements for the Monitoring and Evaluation Framework and total $45.7 million from the opening of the fund to the end for the FCPF. These lower than anticipated expenses reflect the Table 5: FCPF Readiness Fund Summary Financial Statement FY15 (in $ thousands) of FY15. Table 7 shows the annual expenditures by activity, team’s gaining efficiencies as stability grows around key routine whilst Table 8 compares the approved budget with the actual tasks. Description Total FY15 FY14 FY13 FY12 FY11 FY10 FY09 expenditures by activity for FY15. FCPF Secretariat expenses were $1.3 million, or 76 percent Beginning Balance 224,870 195,830 189,999 165,804 77,695 50,945 As the FCPF continues progress on grant implementation, of the activity budget of $1.7 million. Expenditures included annual expenditures have predictably increased in areas with the standard costs for program management, organization of a focus on country support. This is the case for the REDD the annual PA and PC meetings, and travel costs for REDD+ Donor Contributions 323,631 27,014 54,004 30,009 31,538 94,880 32,290 53,895 Methodology Support, Country Advisory Services and Country countries and some observers to those meetings. Increasingly, Investment Income 7,889 2,008 1,960 897 924 732 821 547 Implementation Support activities. Total cash disbursements knowledge and learning events on REDD+ and other key Investment Income (transferred from for these country focused activities over the lifetime of the 2,023 2,023 partner meetings (e.g., the UN-REDD Programme or REDD+ the Carbon Fund) fund represent 75 percent of cash disbursements, whilst Partnership) are jointly organized to maximize the use of Total Receipts 333,543 29,022 57,987 30,906 32,462 95,612 33,111 54,442 administrative costs represent under six percent of total participant time. FCPF Secretariat costs include the costs of cash disbursements. Combined, the cash disbursements hosting and maintaining the FCPF website, communications to Cash Disbursements 45,742 6,914 9,373 8,752 5,383 6,421 5,402 3,497 for these country focused activities of $34.2 million with the FCPF stakeholders, and translation of FCPF materials. Part of Grant Disbursements* 34,400 16,380 8,173 4,923 2,884 1,082 959 grant disbursements of $34.4 million and the disbursements the $400,000 underrun is due to a video communications project to Delivery Partners for grants of $26.6 million, these that was put on hold as well as lower translation costs due to Disbursements to the DPs for Grants 26,600 3,800 11,400 11,400 country focused disbursements represent 89 percent of total fewer than anticipated large technical documents (R-Packages) Total Disbursements 106,742 27,093 28,946 25,075 8,267 7,503 6,361 3,497 disbursements of $106.8 million. Administrative and Secretariat requiring that costly service. costs (which include the cost of all Participants Committee With the budget for REDD Methodology Support activities Fund Balance (cash) 226,801 226,801 224,870 195,830 189,999 165,804 77,695 50,945 (PC) and Participants Assembly (PA) meetings, including travel set at almost $1.3 million for FY15, and total expenditures at plus Outstanding Contributions 48,934 costs for REDD+ country participants and some observers) $1.1 million, spending was 85 percent of FY15 plans. Costs 275,735 over the lifetime of the fund of $13.2 million represent just reflect the low Technical Advisory Support (TAP) expenses 12 percent of total disbursements of $106.8 million, whilst (consulting contracts, travel, and meeting costs) again due to Fund Balance administrative costs alone represent less than three percent of fewer than anticipated R-Packages coming to the Participants *Includes $599,694 of Bank-executed grant disbursements (FY15 $6,159). total disbursements. Refer to Tables 5 and 7 for details. Committee requiring review. The underspend of $186,000 is The FY15 budget for the Readiness Fund net of Shared also due to delays in the REDD+ Program Cost Assessment Costs of $10.3 million compares to the total Readiness Fund work, which has been budgeted for and will be completed in FCPF Readiness Fund Donor Contributions as of end of FY15 (in $ thousands) Table 6:  expenditures for the year of $6.9 million (see Table 8). The fiscal FY16. year therefore closed with spending at 67 percent of budget and The expenses recorded for Country Advisory Services came Participant Name Total Outstanding* FY15 FY14 FY13 FY12 FY11 FY10 FY09 an underspend of over $3.4 million. to about $1.9 million, or about 92 percent of the $2.1 million Australia 23,892 6,330 7,997 9,565 Expenditures on Readiness Trust Fund Administration costs originally budgeted in FY15. The majority of these costs came Canada 41,360 41,360 were 80 percent of budget. These administrative costs reflect from Facility Management Team (FMT), forestry, and social the work of all World Bank staff involved in fund management, development staff advice and guidance to REDD+ countries on Denmark 5,800 5,800 European Commission 5,172 1,120 1,364 2,688 Finland 23,196 3,230 5,261 5,749 8,956 FCPF Readiness Fund Cash Disbursements (in $ thousands) Table 7:  France 10,340 5,136 592 4,612 Activity % of Total Total FY15 FY14 FY13 FY12 FY11 FY10 FY09 Germany 76,766 23,784 13,913 13,113 25,956 Readiness Trust Fund Administration 6% 2,683 327 397 404 356 366 362 471 Italy 5,000 5,000 FCPF Secretariat 23% 10,555 1,299 1,515 1,690 2,056 1,685 1,321 989 Japan 14,000 4,000 5,000 5,000 REDD Methodology Support 21% 9,722 1,071 1,796 1,842 999 1,921 1,266 827 Netherlands 20,270 7,635 7,635 5,000 Country Advisory Services 20% 9,185 1,881 2,342 1,750 1,073 545 793 801 Norway 116,740 47,814 38,727 8,801 16,398 5,000 Country Implementation Support 33% 15,293 2,676 3,730 3,213 1,701 1,904 1,660 409 Spain 7,048 7,048 IP and CSO Program 6% 2,587 480 751 1,089 267 Switzerland 8,214 8,214 Total Readiness Fund (including Carbon Fund Shared United Kingdom 5,766 5,766 Costs) 50,027 7,735 10,532 9,988 6,452 6,421 5,402 3,497 United States of America 9,000 4,000 4,500 500 Less Carbon Fund Shared Costs -9% (4,285) (821) (1,159) (1,236) (1,069) Committed Funding 372,565 48,934 27,014 54,004 30,009 31,538 94,880 32,290 53,895 Total Readiness Fund 100% 45,742 6,914 9,373 8,752 5,383 6,421 5,402 3,497 *Amounts may vary due to exchange rate fluctuations. 54 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 55 FY15 ANNUAL REPORT their programs. Expenditures in FY15 included specific work c) Grant Disbursements Table 9: FCPF Readiness Fund Grant Disbursements (in $ thousands) on Governance and Grievance Redress Mechanisms as well as An important aspect of the Readiness Fund is that it makes Description Total FY15 FY14 FY13 FY12 FY11 FY10 SESA and ESMF Risk Management. available grant funding to countries—the grants are now up Costs for Country Implementation Support totaled $2.7 AFRICA to $3.8 million per REDD+ country—in support of country-led million, or 69 percent of the planned budget. This spending Burkina Faso readiness work. The REDD+ countries manage and utilize the covers the direct assistance of Delivery Partner country teams grants for REDD+ activities and expenses. These are counted Cameroon 1,047 476 379 134 3 55 to REDD+ countries, including technical assistance, grant as disbursements in World Bank financial statements only after supervision, and assessments provided to the PC. Cote d'Ivoire 728 728 the REDD+ country completes reimbursement from the grant Overall, the largest share ($1.6 million) of the Readiness Democratic Republic of Congo 5,732 2,202 1,161 1,381 797 14 177 resources. By the end of FY15, 26 Readiness Preparation Grants Fund underspend continues to be due to delays in implementing were disbursing—more than double the figure at end FY14. Ethiopia 1,552 694 258 400 100 100 the new Capacity Building Program for Indigenous Peoples, Civil Signed Formulation, Readiness Preparation, and Additional Ghana 3,386 1,204 1,270 312 400 200 Society Organizations and other forest dwellers (the IP and CSO Funding (of up to $5 million) grant agreements, represent firm Program). The principal reason for these delays is the change to Kenya 170 170 commitments of over $143 million. a new process and structure whereby IP and CSO Communities Liberia 1,458 682 289 305 107 75 Grant disbursements from the Readiness Fund have administer the Capacity Building Program themselves through accelerated as predicted and at the end of FY15 were $61 Mozambique 1,849 851 911 87 six Regional Intermediaries (three for IP groups and three for million, including transfers to Delivery Partners other than the CSO groups). The budget for this Program for FY15 of $2.1 Republic of Congo 2,538 1,244 481 237 381 108 87 World Bank for onward transfer to REDD+ countries of $26.6 million includes support through contracts/grants of $1.6 Togo 344 344 million (see Table 5). million. The unspent balance on contracts/grants will be carried Grant disbursements, excluding those through Delivery Uganda 1,500 1,334 (14) 140 40 over to future financial years since the life of the program was Partners other than the World Bank, total more than $34.4 extended to FY17 as agreed at PC17 in Lima, Peru. AFRICA subtotal 20,304 9,760 4,749 2,856 1,567 694 679 million at the end of FY15, a continued exponential increase on previous years. Grants disbursed during FY15 were $16.4 b) Shared Costs million, representing an increase of over 100 percent on the LATIN AMERICA & CARRIBEAN As part of the approval of the Readiness Fund budget, the previous year. Of the total grant disbursements to date of Chile 300 300 FCPF Charter indicates that the PC shall make decisions on all approximately $34.4 million, more than $20 million of these Colombia 200 66 134 Shared Costs for activities that cut across and benefit both the disbursements have been made in Africa. The details of the Readiness and Carbon Funds. In practice, the Shared Costs have grant disbursements are provided in Table 9. Costa Rica 2,446 1,431 479 375 22 139 typically included FCPF Secretariat and REDD+ Methodology In addition, disbursements to Delivery Partners for grants El Salvador 192 42 98 52 Support activities, such as the costs of travel and expenses for of $26.6 million represent seven Readiness Preparation Grants Mexico 665 665 REDD+ countries to attend the Participants Assembly and PC of $3.8 million, three each in FY13 and FY14 and one more in meetings and the work of the TAPs. FY15. Nicaragua 1,009 431 378 77 123 Pursuant to the Charter, the Readiness Fund pays 65 LATIN AMERICA & CARRIBEAN subtotal 4,812 2,827 899 550 241 156 139 percent and the Carbon Fund pays 35 percent of Shared Costs, Table 8: FCPF Readiness Fund Cash Disbursements unless the PC decides otherwise. The PC approved resolutions for FY15 (in $ thousands) waiving cost sharing through the end of FY11 (to reflect the fact EAST ASIA & PACIFIC Expense that the Carbon Fund was only fully operational as of May 2011) Actual Rate Indonesia 3,165 167 1,233 1,247 518 and paying 100 percent of the Shared Costs from the Readiness Activity Budget Expense Variance (%) Lao PDR 478 305 123 50 Fund. In addition, the PC agreed that cost sharing at the 65/35 Readiness Trust Fund 410 327 83 80 Thailand 200 163 37 level would commence from FY12 onward. However, there is an Administration important caveat in Resolution PC/8/2011/8 approved in March Vanuatu 313 186 106 21 FCPF Secretariat 1,719 1,299 420 76 2011, in that the PC agreed to a lifetime cap of $12 million on Vietnam 1,586 1,085 501 REDD Methodology 1,257 1,071 186 85 the Shared Costs that it will charge to the Carbon Fund. This Support EAST ASIA & PACIFIC subtotal 5,741 1,742 1,734 1,516 576 123 50 resolution responded to the concerns of several existing and Country Advisory 2,050 1,881 169 92 potential Carbon Fund Participants that an upward limit be Services placed on such costs given that the PC otherwise makes all SOUTH ASIA Country Implementation 3,880 2,676 1,204 69 decisions regarding their composition and annual approvals. Support Bhutan 637 637 Shared Costs transferred to the Carbon Fund for FY15 were IP and CSO Program 2,065 480 1,585 23 Nepal 2,906 1,414 792 500 109 91 about $200,000 under budget at $0.8 million. Shared Costs over the lifetime of the Facility up to the end of FY15 are on track Total Readiness Fund 11,381 7,735 3,646 68 SOUTH ASIA subtotal 3,543 2,051 792 500 109 91 (including Carbon Fund to remain well under the lifetime cap of $12 million as they Shared Costs) currently stand at $4.3 million (see Tables 7 and 8). Less Carbon Fund Shared (1,042) (821) (220) Total Grant Disbursements 34,400 16,380 8,143 4,923 2,884 1,082 959 Costs Total Readiness Fund 10,339 6,914 3,425 67 56 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 57 FY15 ANNUAL REPORT 7.2.4. Financial Commitments over the Longer Term Table 10:  Summary of Long-Term Sources and Uses of Table 11: FCPF Carbon Fund Summary Financial Statement FY15 (in $ thousands) Since the term of the Readiness fund runs until December 31, Readiness Funding as of June 30, 2015 (in $ millions) Description Total FY15 FY14 FY13 FY12 FY11 FY10 FY09 2020, the annual budgets need to fit into a long-term financial Explanation of which Totals Beginning Balance 316,474 293,275 122,283 86,390 24,700 20,356 planning framework consistent with World Bank policies for the financial management of trust funds. These policies generally Committed Funding 372.6 Donor Contributions 369,503 32,108 27,280 171,866 36,912 71,800 4,181 25,356 require funds to be fully set aside for commitments made by Committed Uses for Funds     the participants as well as for meeting the fiduciary obligations Commitments (grants) to REDD+ Investment Income (2,023) 901 520 256 346 entered into by the World Bank as Trustee. (transferred to Readiness Fund) countries (47 @ $3.8 million) 178.6   In order to plan resources over this longer-time horizon, Total Receipts 369,503 32,108 25,257 172,767 37,432 72,056 4,527 25,356 Additional grant funding to 8 the PC issues resolutions from time to time to establish Countries (Costa Rica, DRG, funding priorities and commitments for the coming years. Ghana, Indonesia, Liberia, Mexico, Cash Disbursements 9,109 2,846 2,058 2,117 1,539 366 183 These commitments are considered “notional” when the PC Republic of Congo, and Vietnam) for REDD+ countries that demonstrate ER Payments has set aside or allocated financial resources of the Readiness significant progress on readiness 40   Total Disbursements 9,109 2,846 2,058 2,117 1,539 366 183 Fund that are not yet signed into formal grant agreements or contracts. They are converted to ”full” commitments once the Less grants to REDD+ countries who grant agreements (or vendor contracts) are signed by recipients did not submit R-PPs by PC14 (2 @ less Promissory Note balances (9,569) 5,089 342 (10,000) (5,000) $3.8)1 (7.60)   and/or by the World Bank as Trustee of the Readiness Fund, or Fund Balance (cash) 350,826 350,826 316,474 293,275 122,283 86,390 24,700 20,356 expenditures are made. Net Grant Commitments   211 plus Outstanding Promissory Notes 9,569 As noted earlier in the report, full signed commitments     plus Outstanding Contributions 86,554 amount to almost $143 million. However, there has been a considerably higher level of notional grant commitments made by Administrative, Operations, and the FCPF to REDD+ countries. Table 10 provides a more complete Country Support   83.5 Fund Balance 446,949 picture of the level of these notional commitments, together with FY09–FY15 Actual costs 47.7   the necessary notional commitments to operate the fund for its FY16–FY21 Projected costs 33.8   full term, including the direct implementation support costs and Reserve for Delivery Partner capacity associated country services costs. for dispute resolution 2.0   This long-term financial plan includes commitments for the operation of the Secretariat by the FMT and the trustee role of the Total Uses 294.5 World Bank over the full term of the Readiness Fund—reflecting FCPF Carbon Fund Donor Contributions as of end of FY15 (in $ thousands) Table 12:  the fact that the Facility is expected to be fully active through that time. Estimated Reserve: Committed Participant Name Total Outstanding* FY15 FY14 FY13 FY12 FY11 FY10 FY09 funding less Total Uses 78.1 Table 10 shows the long-term notional commitments or Australia 18,393 5,658 12,735 planned uses of the fund. The table shows that, as of the end Proposed Commitments Per country Totals BP Technology Ventures 5,000 5,000 of FY15, notional commitments of full grants to all 45 active Additional grant commitments for countries and the estimated associated costs of the fund during those that demonstrate significant Canada 5,015 5,015 its lifetime amount to nearly $280 million. progress on readiness ($5 million European Commission 6,709 362 grant plus 0.3 million for support Total committed funding to the Readiness Fund as of June costs per country for 14 additional France 5,000 5,000 6,347 30, 2015, is $372.6 million (see Table 6). This level of funding is countries (total of 22 countries) 5.3 74.2 therefore adequate to meet the notional commitments of full Germany 126,244 15,904 32,108 27,280 6,556 15,443 21,125 3,819 4,009 Total Potential Additional Uses 74.2 Readiness Preparation Grants of up to $3.8 million to all 45 active Norway 171,310 161,310 10,000 selected REDD+ countries, together with the estimated costs of Total Surplus   3.9 Switzerland 10,796 10,796 the fund during its lifetime, including the estimated associated 1. Bolivia, Gabon. The Nature Conservancy 5,000 5,000 country services for those countries. Funds are also available to provide additional grants of up to $5 million for up to 22 countries United Kingdom 88,590 70,650 17,940 showing significant progress. Total Donor Contributions received to date are $369.5 United States of America 14,000 4,000 10,000 million. Total disbursements to the end of FY15 are $9.1 million, 7.3. The Carbon Fund made up solely of cash disbursements. The Carbon Fund has Committed Funding 456,057 86,554 32,108 27,280 171,866 36,912 71,800 4,181 25,356 only been fully operational since May 2011, so there are no 7.3.1. Fund Balance payments for emission reductions to date. *Amounts may vary due to exchange rate fluctuations. Table 11 shows the summary financial statement for the fund Total receipts during FY15 were $32.1 million, all from from the opening of the fund to the end of FY15. The Carbon donor contributions from Germany (see Table 12). Fund balance at the end of FY15 is a healthy $446 million, with All Participation Agreements with Carbon Fund Participants a cash balance of $351 million. The difference of $96 million indicate that any interest generated by prepaid contributions is represented by outstanding balances on promissory notes, shall be channeled to the Readiness Fund. For this reason, and outstanding contributions from Germany and the United there is no investment income to report for the Carbon Fund. Kingdom. 58 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 59 FY15 ANNUAL REPORT 7.3.2. Funding Sources Table 13: FCPF Carbon Fund Cash Disbursements well as extended team support to finalize the ERPA General Fund was extended to December 2025 by the Carbon Fund Table 12 presents the committed and pledged contributions (in $ thousands) Conditions accounts for this overspend. Participants at CF12 (Resolution CFM/12/2015/1) to allow for Program Development costs were underspent against minimal ERPA terms of at least 5 years accommodating a to the Carbon Fund as at the end of FY15. While the Fund  Activity Total FY15 FY14 FY13 FY12 FY11 FY10 budget by almost $4.2 million, making up most of the Carbon longer than anticipated program design phase. As outlined continued to enjoy great financial health during FY15, exchange Carbon Fund 3,038 741 626 652 470 366 183 Fund underspend for FY15. The bulk of the underspend on in the Readiness Fund section, the annual budgets need to fit rate fluctuations (a stronger USD) affecting outstanding Administration Program Development costs was related to the $650,000 into a long-term financial planning framework for each fund contributions from Germany and the United Kingdom decreased allocations made to programs entering the Carbon Fund that is consistent with World Bank policies for the financial the value of total contributions to $456 million at the end of the Program 1,785 1,283 273 229 Development pipeline and signing a Letter of Intent (LoI). The budget for these management of trust funds. These policies generally require fiscal year compared to a total as at the end of FY14 of $470 allocations was made up of the estimated unspent allocation funds to be fully set aside for commitments made by the million. Shared Costs 4,285 821 1,159 1,236 1,069 to the five countries that were invited to join the CF Pipeline participants as well as for meeting the fiduciary obligations In terms of cash, the Carbon Fund received donor Total 9,109 2,846 2,058 2,117 1,539 366 183 in FY14 plus five more $650,000 allocations for countries that entered into by the World Bank as Trustee. The long-term contributions of $32.1 million over the past year from Germany. could be invited in FY15. Those FY14 invitees are Costa Rica, financial plan presented at CF13 in Washington in April 2015 This brought the total cash contributions to the end of FY15 to DRC, Ghana, Mexico and Nepal. The five additional $650,000 indicates that no more than $420 million would be available for $370 million, leaving two outstanding contributions of $15.9 Table 14: FCPF Carbon Fund Cash Disbursements for FY15 allocations were intended for countries that were anticipated the purchase of emission reductions. million and $70.7 million from existing signed agreements (in $ thousands) to present ER-PINs in FY15, to be approved on a case-by-case to be paid respectively by Germany and the United Kingdom basis by CF Participants. 7.4. Budget Approval Process into the Carbon Fund in the coming years. These outstanding Actual Expense Of the countries selected into Carbon Fund pipeline, The budgets for both the Readiness Fund and the Carbon Fund contributions represent agreed phased contributions spread out  Activity Budget Expense Variance Rate (%) only those that sign a Letter of Intent (LoI) gain access to the are based on the World Bank’s fiscal year (beginning July 1) and over a number of years. Carbon Fund 665 741 (76) 111 $650,000 allocations for ER-PD development. As of the end of are approved annually in accordance with the FCPF Charter. The 7.3.3. Funding Uses Administration FY15, of the eleven countries selected into the pipeline of the Participants Committee (PC) is responsible for approval of the Program 5,457 1,283 4,174 24 Carbon Fund, only eight have signed LoIs, thus releasing the annual budget for the Readiness Fund and the Shared Costs Cash disbursements total $9.1 million from the opening of the $650,000 of ER-PD Development funds. Of the $4.5 million Development of the Facility, whilst the participants of the Carbon Fund are fund to the end of FY15. Table 13 shows the annual expenditures budgeted for these allocations in FY15, only about $740,000 was by activity, whilst Table 14 compares the approved budget with Shared Costs 1,042 821 220 79 responsible for approval of the annual budget for the Carbon spent in FY15, representing an underspend of approximately Fund as a separate trust fund. the actual expenditures by activity for FY15. $3.8 million. Total 7,164 2,846 4,318 40 To date, the PC has approved eight budgets for the The total cash disbursements from the opening of the fund As explained earlier, Shared Costs are directly related to to the end of FY15 of $9.1 million are made up of $3.0 million Readiness Fund for FY09-FY16, along with some revisions to the Readiness Fund expenses in two key cross cutting areas: those budgets during each fiscal year. Five annual budgets administration costs, $1.8 million of Program Development Expenditures for Carbon Fund Administration costs were FCPF Secretariat and REDD Methodology Support costs. The costs, and $4.3 million of Shared Costs (see Table 13). have been approved for the Carbon Fund (FY12-FY16). Informal over budget by 11 percent. These administrative costs reflect expenditure as a result of spending in the Readiness Fund is The total Carbon Fund expenditures for the year of $2.8 guidance was sought by the Facility Management Team (FMT) the work of all World Bank staff involved in fund management, $220,000 below the budget of $1.0 million, an expense ratio of million compares to the final budget for the Carbon Fund, for developmental expenditures prior to that time (before the contributions management, accounting, legal, and other 79 percent. including Shared Costs, of $7.2 million. The fiscal year therefore fund became fully operational). services required by the Carbon Fund Trustee, including a share closed with spending at 40 percent of budget—an underspend of of the costs of the development of the Monitoring and Evaluation 7.3.4. Financial Commitments over the Longer Term more than $4.3 million. Refer to Table 14 for details. Framework for the FCPF. Extensive work by the Legal team as Diverging from the Readiness Fund, the life of the Carbon 60 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 61 FY15 ANNUAL REPORT 8 Results Measurement Reporting Framework As FY15 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 Target Year FY15) Traffic Light Indicators for See section 4 impacts 1.1 for examples of Impact I.1. The FCPF has contributed to the design of a global regime under or to 1.5 not yet progress. outside UNFCCC that provides incentives for REDD+ applicable. Impact level indicators will be assessed at the time of the independed evaluation Impact I.2. Reduced emissions from deforestation and forest degradation from Not yet applicable FCPF, especially CF portfolio countries Impact I.3. FCPF has catalyzed the creation of recognized global standards for Not applicable See section 4 REDD+ target for examples of progress. I.4. FCPF has catalyzed investment in REDD+ (CF, and grants) Not yet applicable See section 4 for examples of progress. SMART Specific, measurable, Impact I.5. The FCPF has generated momentum to address governance and transparency issues and policy reforms related to sustainable forest resource management and REDD+ Outcome 1. Efforts successfully undertaken by countries with FCPF support, to Not yet applicable See section 4 for examples of progress. achieve emission reductions from deforestation and/or forest degradation, and attainable, relevant, to benefit from possible future systems of positive incentives for REDD+ time-bound (SMART) (Readiness Fund) indicators are measured Outcome Indicator 1.A. Number of Readiness Packages endorsed by PC 2 R-packages by 1 R-package for each impact, outcome 2014, 8 R-Packages and output in the M&E by 2015, 20+ R-Packages by 2018 Framework. Output 1.1. Readiness Assessment Framework is agreed upon and disseminated Indicator 1.1. Existence of published assessment framework on readiness Assessment Completed package Framework published following PC14 adoption Output 1.2. Countries demonstrate an adequate plan to achieve preparedness for REDD+ funding 62 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 63 FY15 ANNUAL REPORT Current Current Impact/Outcome/ Expected #/ (as of end Impact/Outcome/ Expected #/ (as of end Output and Relevant Indicators Target Year FY15) Traffic Light Output and Relevant Indicators Target Year FY15) Traffic Light Indicator 1.2.a. Number of R-PPs endorsed by PC 30+ R-PPs 45 2.1.c. Legal documents (General Conditions, ERPA term sheet) Fully defined ERPA Term Sheet is en- by 2015 Term Sheet draft by dorsed at PC14; PC14 and General General Condi- Conditions for ERPA tions endorsed at endorsed by PC16 PC18 Indicator 1.2.b. Number of Readiness Preparation Grant agreements signed 30+ signed grant 35 agreements by 2015 Output 2.2. Countries have entered in the portfolio of the CF Indicator 2.2.a. Number of early ideas or ER Programs presented by countries to 10 by 2015 24 early ideas, 11 Output 1.3. Countries progress adequately on implementation of their R-PP and the CF ER-PINs Grant Agreements Indicator 1.3.a. Number of mid-term progress reports presented by countries that 20+ by 2015, 9 follow agreed reporting standards and are presented in a timely manner 25+ by 2018 Indicator 2.2.b. Number of REDD countries that have signed ERPA 5 by 2015 0 (8 LOIs signed) Indicator 1.3.b. Percentage of countries that are achieving planned milestones At least 60% of GRMs for FY15 not according to approved Readiness Preparation grant (> $3.4 million) countries have fully available at Output 2.3. Increased levels of private sector investment for incentivizing, testing, performance that time print and supporting up-scaling of ER activities is satisfactory or above Indicator 2.3.a. Number of private participants in CF 2 new private Target is no sector participants longer relevant. by 2014 New approach Indicator 1.3.c. Percentage of countries that are overall achieving planned By 2015, 50% of 66% of countries for private sector milestones for sub component—as per country annual reporting scale countries have have performance engagement at performance “fur- that is satisfactory program level ther development or above required” in 50% of sub components Output 2.4. ER Programs are being implemented in a timely manner Not yet applicable as no ERPA has been signed Indicator 1.3.d. Percentage of countries with a disbursement rate that is in line 60% (of countries 9/35 or 26% of with agreed Readiness Preparation grant (> $3.4 million) disbursement plans of with signed grant countries grant agreement (up to 10% variance with plans) agreements) 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+ Outcome 2. Selected FCPF countries demonstrate key elements (carbon Not yet applicable accounting, programmatic elements and pricing) of performance-based payment as no ERPA has systems for emission reductions generated from REDD+ activities with a view been signed Indicator 3.A. Design of national REDD strategies, monitoring systems and All national REDD+ See section 4 to ensuring equitable benefit sharing and promoting future large-scale positive ER Programs addresses indicators for enhancement of livelihoods of local strategies, monitor- for examples of incentives for REDD+ (Carbon Fund) communities and for biodiversity conservation ing systems and ER progress programs incor- porate indicators Output 2.1. Standards and preparations in place for high-quality ER Programs related related discussed and endorsed by CF Participants and/or PC to biodiversity conservation and Indicator 2.1. Number and types of standards and management tools discussed forest community and endorsed by CF participants and/or PC for ER programs including: livelihood development 2.1.a. Methodological framework and Pricing Approach Fully developed MF endorsed at draft by CF7 and CF8 Indicator 3.B. Actual examples on the inherent social and biodiversity benefits of International See section 4 final version en- REDD+ and how they are used to inform REDD+ agenda and to scale up results REDD+ agenda by for examples of dorsed by CF8 2017 is informed by progress documented results from ER Programs 2.1.b. Business processes (ER-PIN, ERPD, ERPA) Fully developed Business process draft by CF7 and defined final version en- Output 3.1. Enhanced capacity of IPs and CSOs to engage in REDD+ processes at dorsed by CF8 the country level 64 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 65 FY15 ANNUAL REPORT Current Impact/Outcome/ Expected #/ (as of end Output and Relevant Indicators Target Year FY15) Traffic Light Indicator 3.1.a. (i). Number and type of examples of in-country REDD+ actions Various new ex- See section 4 where IPs and CSOs and local communities participate actively amples exist with for examples of strong evidence of progress 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 available to enable active Examples exist See section 4 participation of IPs, CSOs, and local communities in national REDD+ readiness with evidence of re- for examples of sources being made progress available through national and/or bilateral support to IPs and CSO networks to enable active participation in national REDD+ readiness Indicator 3.1.b. Number of IP and REDD+ country CSO representatives (men/ At least 20 men See section 4 women and/ or youth) that have participated and benefitted from FCPF organized and 20 women and/ for examples of workshops/trainings on SESA, governance, MRV aspects/related aspects of or 20 youth reps. progress REDD+ participated and/or trained per country, in a minimum of 15 participant coun- tries by 2015 Indicator 3.1.c. Examples of IP and REDD+ country CSO representation in Examples in all 32 countries institutional arrangements for REDD+ at the national level REDD+ Participant Countries, of insti- See section 4 tutional arrange- for examples of ments for national progress REDD+ readiness where IPs and CSOs are represented Output 3.2. Pilots have been successfully implemented on ways to sustain and Not yet applicable General enhance livelihoods and conserve biodiversity as no ERPA has been signed Conditions Indicator 3.2.a. Number of countries where stakeholder engagement platforms proposed in RPPs have taken up work and meet regularly All countries that have signed Readiness Grants See section 4 for examples of progress for ERPA Outcome 4. Knowledge gained in the development of the FCPF and endorsed. 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/stakeholders requesting to become FCPF: A number of 0 countries in - Observers new requests to FY15 - Members become: country -  observers country -  members 66 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 67 FY15 ANNUAL REPORT Current Impact/Outcome/ Expected #/ (as of end Output and Relevant Indicators Target Year FY15) Traffic Light The cornerstone Indicator 4.B. Examples of utilization of/or reference to FCPF knowledge products An increasing See section 4 for success on REDD+ number of ex- amples exist by for examples of progress 2015 and remains and low-carbon land use stable afterwards until 2020 will be ownership at the Output 4.1. Knowledge products and lessons from piloting of REDD+ in general See section 4 highest political level. and FCPF activities in particular are developed and disseminated, in accordance with global knowledge management and communication strategy and annual for examples of progress work plans Output 4.2. Participants actively engage in South-south learning activities Shift in FY14 to focus on country- tailored support Output 4.3. Strong visibility of REDD+ and FCPF is achieved 4.3.a. Number of neutral/positive mentions of FCPF and REDD+ issues in different Increase in neutral Yes key media worldwide per X period and positive men- tions worldwide— TBD in work plans 4.3.b. Number of negative mentions of FCPF and REDD+ issues in different key Decrease of Improvements on media worldwide per year negative mentions FY14 worldwide 68 FOREST CARBON PARTNERSHIP FACILITY FOREST CARBON PARTNERSHIP FACILITY 69 Acknowledgments Photo Credits Photos courtesy of: Catherine Sear, Franka Braun, Karin Kaechele, Katie O’Gara, Nicholas Soikan, Nina Doetinchem. Design by Corporate Visions, Inc. 70 FOREST CARBON PARTNERSHIP FACILITY The World Bank 1818 H Street, NW Washington, DC 20433, USA www.forestcarbonpartnership.org