Reducing Emissions from Deforestation and Forest Degradation in Developing Countries (REDD) and. the Forest Carbon Partnership Facility.

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1 Reducing Emissions from Deforestation and Forest Degradation in Developing Countries (REDD) and the Forest Carbon Partnership Facility May 25, 2009

2 The 2 C goal can only be reached if emissions from deforestation and forest degradation are reduced Emissions from the forest sector account for almost one fifth of total emissions Transportation

3 Reducing emissions from the forest sector is cost effective, direct and leads to additional benefits Relative to other ways of reducing emissions, reducing emissions from the forest sector is: Cost effective cost of reaching 2 C goal reduced by up to 50% globally if forest sector included Immediate impact emission reduction techniques and approaches well known and available so emissions can be reduced faster In addition, protecting remaining tropical forests has huge co-benefits Biodiversity conservation Improved livelihoods Adaptation to climate change

4 Cost of action lower than that of inaction Cost of establishing REDD in 40 countries: $4 billion over 5 years (for research, analysis and knowledge sharing; policy and institutional reform; and demonstration activities) Annual payments needed to reduce deforestation by half: $17-33 billion/year If no action is taken: Global loss of GDP due to climate change linked to deforestation could reach $1 trillion/year by 2100

5 FCPF Country Participation South America Argentina Bolivia Chile Colombia Ecuador Guyana Paraguay Peru Suriname Meso America Costa Rica El Salvador Guatemala Honduras Mexico Nicaragua Panama Southeast Asia & Pacific Cambodia Indonesia Lao PDR Malaysia Papua New Guinea Philippines Thailand Vanuatu Vietnam Africa Cameroon Central African Republic Dem. Republic of Congo Equatorial Guinea Ethiopia Gabon Ghana Kenya Liberia Madagascar Mozambique Republic of Congo Senegal Sierra Leone Sudan Tanzania Uganda Zambia South Asia Nepal Pakistan

6 The phases of a REDD mechanism Critical to show progress on REDD Readiness before Copenhagen (Dec. 09) Global REDD Fund/Market (UNFCCC) Reforms & Investments (UN-REDD, FIP) REDD Readiness (FCPF, UN-REDD)

7 Defining Readiness: 1. Assess Land Use, Forest Policy and Governance * 2. Organize its REDD Readiness Management ** 3. Design its national REDD Strategy Readiness Plan (R-Plan) 4. Design its REDD Implementation Framework 5. Assess the Impacts of REDD Strategy 6. Assess the Investment and Capacity Building Needs 7. Establish its national Reference Scenario 8. Design its national Monitoring, Verification & Reporting System 9. Design a Readiness Management System (optional) * The actual assessment is required ** A Consultation and Outreach Plan is required

8 Response to Bali decision and UNFCCC Country-driven, country-owned Coordinated international support effort REDD requires an integrated strategic approach Inclusive, transparent, multi-stakeholder national strategy building processes Results-based compensation Effective monitoring, reporting and verification Contribute to sustainable development

9 Learning from and involving local and indigenous communities Engagement with Indigenous Peoples and Civil Society Local and indigenous peoples and communities included in governance structures and involved in national strategy building for REDD Consultation process Incorporation of key issues and challenges highlighted by IPs and forest dependent people: Land tenure Forest governance Benefit sharing Indigenous knowledge Participation in the design of REDD strategies, etc. UN Declaration on the Rights of Indigenous Peoples is the guide

10 Make REDD Happen The FCPF: a Partnership to

11 Readiness Mechanism Carbon Finance Mechanism Two Mechanisms READINESS FUND Capacity Building ( ) Target ~$185 million Available $107 million CARBON FUND Payments for Emission Reductions (2010-?) Target ~$200 million Available $51 million

12 FCPF Governance Technical Advisory Panels Participants Assembly - Forum for exchange of information - Meets at least annually - Opportunity for subgroups to meet and discuss experiences, elect their representatives All Eligible REDD Countries, Donors and Buyers Readiness Fund (Bank as Trustee) Participants Committee (PC) Observers Primary decision making body, including all policy issues Facility Management Team (Bank) Carbon Fund (Bank as Trustee) Carbon Fund Participants Committee Decision making on specific carbon transactions

13 PARTICIPANTS COMMITTEE REDD COUNTRIES CONTRIBUTORS Participants Committee and Observers Bolivia DRC Gabon Ghana Guyana Madagascar Mexico Nepal Panama Vietnam AFD Australia Germany Japan Netherlands Norway Switzerland TNC United Kingdom United States OBSERVERS Forest-Dependent Peoples, Private sector, International Organizations, NGOs, UNFCCC Secretariat, UN-REDD Programme

14 The FIP is part of the Strategic Climate Fund 4 objectives: WB Forest Investment Program (FIP) The Forest Investment Program is being designed to contribute to the second phase of REDD reforms and investments Finance scaled-up investments for implementation of ongoing national REDD processes Promote transformational change resulting in reduction of globally significant emissions Generate understanding and learning of links between investments and outcomes Pilot replicable models to leverage additional and sustained financial resources, especially from private sector

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