forestcarbonpartnership.org...acronyms 5 foreword 7 1. general introduction. 9 2. program objectives...

FOREST CARBON PARTNERSHIP FACILITY

2015ANNUAL REPORT

ACRONYMS 5

FOREWORD 7

1. GENERAL INTRODUCTION 9

2. PROGRAM OBJECTIVES 11

3. EXECUTIVE SUMMARY 134. MAIN ACHIEVEMENTS AND RESULTS DURING THE PERIOD 15

4.1. Highlights 15 4.2. ProgressattheImpactLevel 20 4.3. ProgressattheOutcomeLevel 26 4.4. ProgressbyOutput 28

5. ISSUES AND CHALLENGES 45

5.1. Disbursements 45 5.2. Country-LevelM&EFrameworks andReadinessReporting 45 5.3. OperationalizingPrivateSector Commitments 45 5.4. LeveragingInvestmentFinance 45

6. MONITORING OF ASSUMPTIONS AND RISK 49

7. FY15 FINANCIAL REPORT OF THE FACILITY 53

7.1. FinancialOverviewoftheFacility 53 7.2. TheReadinessFund 53 7.3. TheCarbonFund 58 7.4. BudgetApprovalProcess 61

8. RESULTS MEASUREMENT REPORTING FRAMEWORK 63

C O N T E N T S

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FY15 ANNUAL REPORT

FOREST CARBON PARTNERSHIP FACILITY4 FOREST CARBON PARTNERSHIP FACILITY

THE FOREST CARBON PARTNERSHIP FACILITYDemonstrating activities that reduce emissions from deforestation and forest degradation

BioCF BioCarbonFundCF CarbonFundCFP CarbonFundParticipantsC&I CriteriaandIndicatorsCIB CongolaiseIndustrielleDesBoisCOP ConferenceoftheParties(totheUNFCCC)CSO CivilSocietyOrganizationDP DeliveryPartnerDRC DemocraticRepublicofCongoER EmissionReductionsERPA EmissionReductionsPaymentAgreementERPD EmissionReductionsProgramDocumentER-PIN EmissionReductionsProgramIdeaNoteESMF EnvironmentalandSocialManagement FrameworkFAO FoodandAgricultureOrganizationFCPF ForestCarbonPartnershipFacilityFGRM FeedbackandGrievanceResponseMechanismFIP ForestInvestmentProgramFMT FacilityManagementTeamFY FiscalYear(WorldBankfiscalyear, July1throughJune30)IDB Inter-AmericanDevelopmentBankIP IndigenousPeoplesISFL BioCarbonFundInitiativeforSustainable ForestLandscapesLaoPDR LaoPeople’sDemocraticRepublicLOI LetterofIntentM&E MonitoringandEvaluationMF MethodologicalFrameworkMRV Measurement,Reporting,andVerificationNGO Non-GovernmentalOrganizationPA ParticipantsAssemblyPMF PerformanceMeasurementFrameworkPC ParticipantsCommitteeREDD ReducingEmissionsfromDeforestationand ForestDegradationREDD+ REDD plus conservationofforestcarbonstocks, sustainablemanagementofforests,and enhancementofforestcarbonstocksRL ReferenceLevelR-PP ReadinessPreparationProposalSBSTA SubsidiaryBodyforScientificandTechnological Advice(underUNFCCC)SESA StrategicEnvironmentalandSocialAssessmentSIS SafeguardsInformationSystemSMART Specific,Measurable,Attainable,Relevantand(indicators) Time-bound(indicators)TAP TechnicalAdvisoryPanelUNDP UnitedNationsDevelopmentProgrammeUNFCCC UnitedNationsFrameworkConventionon ClimateChangeUN-REDD UnitedNationsCollaborativeProgrammeon ReducingEmissionsfromDeforestationand ForestDegradationinDevelopingCountriesVRD VoluntaryREDD+DatabaseWB WorldBank

Acronyms

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FY15 ANNUAL REPORT


Overthepastyear,REDD+countriesexhibitedenormousmomentumindevelopingconceptsforlandscape-scaleprogramsthathavethepotentialforlong-termtransformationtowardsalow-carbonsocietyandeconomyintargetjurisdictions.TheFCPFCarbonFundpipelinegrewtoatotalofelevencountriesinFY15andtoeighteencountriesinearlyFY16.

Atthistimeoftheyear,alleyesareontheupcomingclimatenegotiationsinParis,andontheanalysisoftheaggregateeffectofnationaleffortstowardslowemissionsandclimateresilientdevelopmentasoutlinedincountriesIntendedNationallyDeterminedContributions(INDCs)thatweresubmittedtotheUNFCCCinadvanceoftheParisClimateConference(COP21).

InthecontextoftheFCPF,itwasencouragingtoseehowmanyofthecountriesthatpresentedtheirproposedlandscape-scaleprogramstoCarbonFundParticipantsinBrusselslastmonthanchoredtheirproposalsintothebroadercontextoftheirINDCs.Overall,countriesaremovingawayfrompresentingprogramorsector-basedproposals,andareinsteadthinking(andacting)alongthelinesofeconomy-widepolicyreformsandobjectivestorealizetheirgreengrowthdevelopmenttrajectories.

ItisexcitingtoseetheroletheFCPFhastosupportcountriesinturningtheirintendedcontributionstoglobalclimatemitigationtargetsintoreality.Assuch,wearealreadyfocusingoureyesonthepost-ParishorizonandpavingthewayforaproofofconceptforREDD+inapost-Parisworld.

WhiletheFCPF’spartnershipisenergizedattheprospectoftheimportantclimate,environmental,economic,andsocialbenefitsthatproposedlandscapeprogramscangenerate,wehavetobemindfuloftheherculeantaskthatcountriesstillfacetoturntheirlandscapeproposalsintoreality.

ThecornerstoneforsuccessonREDD+specifically,andlow-carbonlanduseingeneral,willbeownershipatthehighestpoliticallevel.Nationaldecision-makersinMinistriesofFinanceandPlanningneedtosharethevision

thatsectoralministriesresponsibleforruraldevelopment,forests,andagriculturehave.Infact,theyneedtoowntheaspirationtoplacepriorityontheconservationandsustainablemanagementofforests,onclimate-smartagriculture,andonmakingtransport,mining,andenergysectorsforest-friendly.Tomakelong-lastingpositivechangeacrossrurallandscapesandalongtheforestfrontier,holisticlanduseplansneedtobehighonthepoliticalagendaofforestcountrygovernments.

Toscaleupimpactatapacethatcountersglobalwarmingtrends,engagingtheprivatesectortospurinnovationandcapitalmobilizationisalsocritical.TheFCPF,inclosecoordinationwiththeWorldBank’sprivatesectorarm,theInternationalFinanceCooperation,isbeginningtoformalizepublic-privatepartnershipswithmultinationalcompanies,whothemselvesarelookingtoforest-prooftheircommoditysourcingpractices.Whileanincreasingnumberofcompaniesaredemonstratingglobalcommitmentsandpledges,therearestillmanychallengestoovercometomatchpublicandprivateinterestsandtoturnactionsintoeffectivepartnershipsthatdeliveronconservingforestsinthefaceofdifficultunderlyingmarket,policy,andgovernanceenvironments.

LookingbackatFY15,IfoundofinteresthowsomeofthecountriesintheFCFPpartnershiphavetakentoimplementingREDD+readiness.Intheuncertaintyofsignificantclimatefinanceavailableforforestcarboninthenearterm,theyhavefocusedbothondesigningreadinessactivitiesthatcontributetoadaptation,whichisanimperativeformanycountriesintherealityofachangingclimateandonleveragingfundsthroughsoundstrategiesandinvestmentplans.It’sexcitingtoseethesynergiesbetweenadaptationandmitigationbecomemoreapparentinourcollaborativeeffortsaroundforestsandREDD+.

“Inayearfromnow,wewillbeabletoseewhetherthemomentumleadinguptoPariscanbecatalyzedintotheactionneededtotransformrurallandscapes,conserveforests,makeadifferenceinclimatechangetrajectoriesand,mostimportantly,bringprosperitytotheruralpoor.”

EllysarBaroudyCoordinator,ForestCarbonPartnershipFacility

ItisexcitingtoseetheroletheFCPFhastosupportcountriesin

turningtheirintendedcontributionstoglobal

climatemitigationtargetsintoreality.

“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.“

Foreword

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FY15 ANNUAL REPORT


InlinewiththeM&EFramework’sPerformanceMeasurementFramework(PMF),thisyear’sannualreportprovidesinformationonthemainachievementsrelatedtotheintermediateimpacts,outcomes(alignedwiththefourFCPFobjectives),andoutputs(short-termresults),whichtogetherprovideastrategicoverviewoftheFCPF(seeFigure1).Specific,Measurable,Attainable,RelevantandTime-bound(SMART)indicatorshavebeendevelopedatthelevelofimpact,outcome,andoutputtotracktheprogressoftheFCPF.Thetargetsforeachindicatorhavebeendesignedinawaythatensuresresultscanbeachievedwithinthelifespanofthe

Facility.Thisreportalsobuildsonthereportingstructureatthecountrylevel,whichbeganlastyear—movingawayfromreportingonactivitiesonlyandallowingforsystematic,country-specificassessmentofreadinessprogress. AstheFCPF’smainfocushasbeenonreadinessandonlayingthegroundforfutureREDD+activitiesandpilotingperformance-basedpaymentsystems,itissomewhatlimitedinitsabilitytoreportonlonger-termandimpact-levelindicatorsatthisstage.(ImpactassessmentswillbepartoftheindependentevaluationsasplannedintheM&EFramework.)

countries make up the FCPF REDD+ Country Participants.

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.

GeneralIntroduction

Figure 1: Result chain of FCPF interventions

47

1

Sustainable or enhanced livelihoods of forest dependent

peopleReduced emissions from deforestation and forest degra-dation from FCPF,

especially CF-Pilots

Momentum for good governance of SFM,

respective policy reforms and multi-stakeholder

participation

Engagement for sustainable liveli-hoods of forest communities

Globally recognized REDD+ standards

Biodiversity conserved

Knowledge gained from FCPF used by international REDD

practitioners

ER- Programs agreed

ER standards and guidelines

ER-programs timely implemented

Increased CF funds including Private sector investment

REDD+ preparedness plan

Readiness Assessment Framework

Progress towards readiness

Knowledge products disseminated

Knowledge management + communication strategy

Strong FCPF and REDD+ visibility

Active South-South learning

Increased capacity of IP and local CSO

Models for sustainable livelihoods and biodiversity

Additional REDD+ investments

Reduced greenhouse

gases

ER Performance-based payment

systems effectively demonstrated

Efforts successfully undertaken by

countries with FCPF support to achieve

emission reductions and benefit from

REDD+

Boundaryof M&E framework

Global regime that provides incentives for

REDD+

ImpactIntermediateImpact

OutcomeOutputs

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FY15 ANNUAL REPORT


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 management of forests, and the enhancement of forest carbon stocks in developing countries (activities commonly referred to as REDD+).

ProgramObjectives

As stated in its charter, the FCPF pursues four strategic objectives:

• ToassisteligibleREDD+Countriesintheireffortsto achieveEmissionReductions(ER)fromdeforestation and/orforestdegradationbyprovidingthemwith financialandtechnicalassistanceinbuildingtheir capacitytobenefitfrompossiblefuturesystemsof positiveincentivesforREDD+;

• Topilotaperformance-basedpaymentssystemfor ERgeneratedfromREDD+activities,withaviewto ensuingequitablesharingandpromotingfuture large-scalepositiveincentivesforREDD+;

• WithintheapproachtoREDD+,totestwaysto sustainorenhancelivelihoodsoflocalcommunities andtoconservebiodiversity;and

• Todisseminatebroadlytheknowledgegainedin thedevelopmentoftheFacilityandimplementation ofReadinessPlansandERPrograms.

TheFCPFhastwoseparatebutcomplementaryfundingmechanisms—theReadinessFundandtheCarbonFund(CF)—toachieveitsstrategicobjectives.Togetherthetwo

fundshaveraised$829million. The Readiness Fund supportsparticipatingcountriesinthedevelopmentofREDD+strategiesandpolicies,referencesemissionlevels(REL),measurement,reportingandverification(MRV)systems,andinstitutionalcapacitytomanageREDD+,includingenvironmentalandsocialsafeguards.TheReadinessFundbecameoperationalin2008andhasacapitaljustunder$373million. TheCarbon Fundbuildsontheprogressmadeinreadinessandisdesignedtopilotperformance-basedpaymentsforERfromREDD+programsinasmallnumberofFCPFcountries.TheCFbecameoperationalin2011andhasacapitalof$456million. TheFCPFhasgrownto47developingcountries(18inAfrica,18inLatinAmericaandtheCaribbean,and11intheAsia-PacificRegion)and17financialcontributors(comprisingdevelopedcountries,oneprivatesectorparticipant,andoneNon-GovernmentalOrganization(NGO)).Ithassixcategoriesofobservers,includingIPandCivilSocietyOrganizations(CSO).ThecoreoftheFCPF’sinclusivegovernancestructureisformedbytheParticipantsAssembly(PA)andtheParticipantsCommittee(PC).

was the total amount raised by FCPF’s two funding mechanisms

—the Readiness Fund and the Carbon Fund.

$829m2

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FY15 ANNUAL REPORT


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.

ExecutiveSummary

3InFY15,theadoptionoftheGeneralConditionsforEmissionReductionsPaymentAgreementsconcludedalong,butimportant,chapterofcollaborativeworktoputinplacethetechnicalandlegalunderpinningforfuturelarge-scaleforestcarbontransactions.ThisalsoreinforcedtheFCPF’sroleinsettinggloballyrecognizedstandardsforREDD+andpioneeringaframeworkforreducingdeforestationandforestdegradationthroughpilotingofresults-basedfinance. AttheeleventhmeetingoftheCarbonFundinOctober2014,thepipelinewasincreasedtoatotalof11ERProgramswiththeinclusionofGuatemalaandPeru,andtheprovisionalinclusionofIndonesia.Withaviewtoprovidingadequatetimeforthedevelopmentandimplementationofsound,high-qualityEmissionReductionsPrograms,thetermoftheCarbonFundwasextendedbyfiveyearsuntiltheendof2025.Theextensionwasaccompaniedwithpledgesforadditionalcontributionsandtheprospectforpipelineexpansionsubjecttohigh-qualityproposals.ThiscreatedmomentumamongstREDD+countries,whichcompetedtodevelopandpresentarecordnumberofninenewideasforlandscapeprogramsatthetwelfthmeetingoftheCarbonFundinApril2015. AscountriescontinuedtoadvancethedevelopmentoftheirERPrograms,optionstoaddressfinancinggapsinEmissionReductionsProgramsreceivedincreasingattentionanddiscussionwithinthepartnership.Countrieswillneedtoleverageadditionalupfrontinvestmentfinancetosecuresufficientresourcestodeliverprogramimplementationandgenerateresultsforwhichcarbonpaymentsareproposed.Countriesarealsolookingintofinancingoptionsthatgobeyondtraditionalbilateral,multilateralandpublicinvestmentfinance,andareexploringprivatesectorinvestments,nationalbudgets,aswellasinnovativefinancingoptionssuchasbonds,guarantees,andadvances,amongothers. Toachieveimpactatscale,countriesarefurtherstartingtoengageproactivelywiththeprivatesectortoidentifypartnershipopportunitiesforzero-deforestationsupplychainsaroundcommoditiessuchascocoa,coffee,cotton,

andtimber.TheFCPFisfacilitatingthisdialogueatboththelocalandgloballevels. Themomentumwithwhichcountrieshavebeendevelopinglandscapeprogramshaspositivelyimpactedreadinessprogress.Aslandscapeprogramsshapeup,readinessactivities,includingconsultationsandparticipatoryprocesses,becomemorerelevantandconcrete.ProgressundertheReadinessFundincludedarecordnumberof13ReadinessPreparationGrantssignedinFY15,bringingthetotalnumberofcountriesimplementingreadinessactivitiesto35.AnotherhighlightincludedtheendorsementoftheReadinessPackagefromtheDemocraticRepublicofCongobytheFCPFParticipantsCommitteeasthefirstcountrytoadvanceREDD+readinesstothisimportantmilestone. LookingaheadtoFY16,REDD+countrieswillfocusonfollowinginthefootstepsofDRCandcarryingoutself-assessmentsoftheirreadinessprogressandsubmissionofReadinessPackagesasaprerequisiteforsubsequentsubmissionoffull-fledgedERProgramsforselectionintotheportfoliooftheCarbonFund. Atthecountrylevel,REDD+CountrieswillaimtoimplementtheirnationalREDD+Strategies,whichproposeactionablemulti-sectorstrategyoptionstoaddressthedriversofdeforestationandtheunderlyingbarrierssuchasnaturalresourcerights,landtenure,andgovernance. Asubstantialnumberofmid-termreviews,ReadinessPackages,andERProgramdocumentsareexpectedtobedeliveredinthenextyear.Withthevolumeofanalysisaswellascountryandexpertreflectionfeedingintothis,theFCPFwillincreasinglyfocusonharvestinganddisseminatingknowledgethathasbeencollectivelygainedinthePartnershipatbothcountryandgloballevels. Meanwhile,anindependentsecondprogramevaluationwillbecarriedouttoreviewrelevance,effectiveness,impact,sustainability,efficiencyoftheFCPF.TheevaluationisexpectedtoprovideguidanceonhowtoimproveeffectivenessanddeliveryoftheFacilitybylearninglessonsfromREDD+implementationandtoimprovethestrategicalignmentwiththeprioritiesofREDD+.

countries in the Carbon Fund pipeline.

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FY15 ANNUAL REPORT


IncreasingmaturityintheReadinessFundisfurtherreflectedinthegrowingnumberofcountriesthatreportedontheirmid-termprogress.InFY15,sixadditionalcountries(CostaRica,Ghana,Liberia,Mexico,RepublicofCongo,andVietnam)reachedthismilestonedemonstratingimportantachievementsininstitutional,technical,andsocialREDD+readinessandprovidedimportantlessonslearnedforotherREDD+countries. Overthelastyear,another13countriesenteredintoreadinessgrantagreements.Thisbringsthetotalnumberofcountriesimplementingreadinessactivitiesto35,significantlyhigherthanlastyear’stotalof22.Eightofthe13readinessgrantagreementsweresignedbycountriesthatwereonlyselectedintotheReadinessFundinFY14.Thisdemonstratessignificantlyfasterprogressbythenewcountries. ByendofFY15,$211millioninreadinessgrantfundinghadbeenallocated,andnearly$107millionhadbeenmadeavailablewithsignedgrants,leveragingatleast$186millioninnon-FCPFinvestmentsinreadiness(thisfigureisbasedoncountryreportingandmaynotbeexhaustive).TheReadinessFundalsoreceivednewdonorcontributionsof$27millionoverthepastyear.Thiswasmadeupof$23.8millionfromGermany,and$3.2millionfromFinland. TheCommonApproachwasfullyimplementedinFY15manifestingtheFCPF’scommitmenttosocialinclusion.Assuch,awarenessraisingandcapacitybuildingaroundsocialinclusionshiftedtocountry-levelactivitiesledbyeachDeliveryPartner.Thisincludedguidancetocountriesonapplicablepoliciesandproceduresonenvironmentalandsocialsafeguards,accesstoinformation,andfeedbackandgrievanceredressmechanisms. TheextensionofthetermoftheCarbonFundto2025createdalotofmomentumforpipelinedevelopment.InFY15,threeadditionalER-PINswerepresentedandGuatemalaandPeruwereselectedandIndonesiaprovisionallyselectedintothepipeline,whichconsequentlygrewtoatotalofelevencountries.Further,eightnewcountriespresentedtheirearlyideaswiththeaimtoreceivefeedbackfromCarbonFundParticipantstodevelopER-PINsforpresentationandpotentialselectioninFY16.

WiththeapprovaloftheGeneralConditionsforEmissionReductionsPaymentAgreements(ERPA)inNovember2014along,yetimportant,chapteronthedevelopmentofthetechnicalandlegalunderpinningoffutureERPAswasclosed.TheFCPFconsequentlyturneditsfullattentiontoextendingcountry-tailoredtechnicalsupporttocountriesastheydesignanddeveloptheirprogramideasandadvanceimportantanalyticalwork.SuchsupportincludedtechnicalassistancetorespondtothecriteriaandindicatorsoftheMethodologicalFramework,includingonreferencelevelsandMRVdesign.Respondingtothedemandfromcountriesonguidanceontechnicalaspectsofcarbonaccounting,theFCPFfurtherlaunchedaweb-baseddecisionsupporttoolonreferencelevelsandMRVdesign. Overthelastyear,emphasiswasalsoplacedontheearlyanalysisandonplanningforERProgram’simplementationcosts.Thiseffortisintendedtosupportcountrieswithstructuringtheirprogramsandtoaligndifferentstreamsofup-frontinvestmentfinanceandensurefinancialsoundnessofproposals.

MainAchievementsandResultsDuringthePeriod

44.1. 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.

Readiness Preparation Grants signed in FY15.

+13

1stR-Package endorsed

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FY15 ANNUAL REPORT


Guatemala Buildingonexistinglegalandfinancialframeworksforforestgovernancedevelopedoverthepast15years,theemissionreductionsprograminGuatemalawillbeanational-levelinitiativewiththepowertoimpact15millionlives.TheprogramwillengageinsixareasofREDD+activity:incentivestoincreasecarbonstocks,sustainableforestmanagement,strengtheningprotectedareasco-management,agroforestrysystemsandforestplantations,governanceandlawenforcementonforestlands,aswellasdevelopmentofforestproductionsvaluechain.InadditionaltobenefittingfromstrongpoliticalcommitmentoftheGuatemalanGovernment,asupportiveinstitutionalsettingforlinkingREDD+activitiesinclosecollaborationwithkeygovernmentinstitutionshasbeencultivated.Theseframeworkconditionsenableconsultationwithandparticipationbylocalcommunities,andareexpectedtoresultinahighdegreeofinvolvementoftheselocalcommunitiesinforestmanagementintheprogram.TheprogramwillstronglybenefitfromthePro-Bosquelaw,recentlyapprovedbyCongress,whichensuresdomesticfinancetosupporttheactivitiesproposedintheEmissionReductionsProgramIdeaNote.InvestmentfinancewillalsobeobtainedfromtheForestInvestmentProgram(FIP).

Indonesia Indonesia’sREDD+programfocusesonEastKalimantan,anareathatcontains14.7millionhectaresofforest,including400,000hectaresofpeatlands.Theprovinceispromotingitsdevelopmentobjectivesthroughalow-emissionsdevelopmentinitiative,whichisimplementedthroughprovincialstrategiesandactionsplansthatbuildonthestrongleadershipintheregiononclimatechange.Theprogramisdesignedtoaddresstheover-exploitationofforestsfortimberproduction,illegallogging,forestencroachment,forestfiresandtheimpactsofinfrastructuredevelopmentthroughactionsthatincludeimprovementsinforestlicensingandsmall-scaleplantations,andthepromotionofcommunity-basedplanning.Keyinterventionsalsotargetactionsonagriculturallandtoreducepressureontheforestestatebyminimizingtheimpactofslash-and-burnagriculture,plantationdevelopment,andtheexpansionofmining.Withtheimplementationoftheprogram,Indonesiahopestocontributetothenationalgoalofreducingthecountry’semissionsby26percentthroughitsownefforts(and41percentwithinternationalsupport).

Large-scale Programs in the Carbon Fund Pipeline

REDD+countriescontinuetomakestridesindevelopinglarge-scaleREDD+programproposalsthathavethepotentialtotransformrurallandscapes.AsoftheendofFY15,theCarbonFundpipelineincludesprogramsinChile,CostaRica,DemocraticRepublicofCongo,Ghana,Guatemala,Indonesia,Mexico,Nepal,RepublicofCongo,Peru,andVietnam.Theseelevenprogramstakealandscape-levelapproachengagingactorsinagriculture,energy,transport,land,mining,andforestrytoachieveclimate-smartland-use,protectforests,restoredegradedland,andimprovelocallivelihoods.TheCarbonFundpipelineremainsunderdevelopmentinFY16.

Chile Chile’sprogramtoreduceemissionsfromdegradationintemperateforestsisacornerstoneforthecountry’snationalforestrystrategy.Thisprogram—whichspans16.5millionhectaresoverfiveregionsinChile—takesactiontoaddressthethreemaindriversofdeforestationanddegradation:illegallogging,forestfiresandreplacementofnativeforestsbyexoticplantations.TheGovernmentofChileiscommittedtothedevelopmentofthislarge-scaleprogramtoreducedeforestationandforestdegradationbyimprovingforestmanagementandfocusingoncross-sectoralissueswhichimpactareaswithmostforestcover.Thehigh-levelpoliticalsupportforChile’sprogramhelpsgeneratelessonslearnedforotheremissionreductionsprogramsunderdevelopment.

Costa Rica CostaRicaiscurrentlyconcludingitsREDD+readinessphaseandisdesigninganemissionreductionsprogram.Theprogramincludesawiderangeofpoliciesandmeasurestoconserveandenhancecarbonstocksbasedonmorethan20yearsofexperiencewithforestconservationandmanagement.AttheheartoftheprogramisCostaRica’ssuccessfulPaymentforEnvironmentalServicesProgramandanextensiveprotectedareasystemthatgraduallyincorporatesadditionalREDD+activities.Theprogramisdevelopedwiththeactiveparticipationofrelevantstakeholders.Itcomplieswithsocialandenvironmentalsafeguardsandwillbeimplementedatanationallevel.TheprogramalongwiththeNationalREDD+Strategywillpromotethecountry’scommitmenttocarbonneutralityandwillcontributetopovertyreductionbyexpandinganinclusiveforestryandagroforestry-baseddevelopmentmodel.

Democratic Republic of Congo TheMaïN'dombeemissionreductionsprogramisajurisdictionalprogramwhichservesasamodelforgreengrowthintheCongoBasinandsignificantclimateactionontheAfricancontinent.TheGovernmentofDRCiscommittedtothisinnovativelarge-scaleprogramintegratedinDRC’sNationalREDD+Strategyframework.AlignedwiththeinvestmentsofForestInvestmentProgram(FIP)andCongoBasinForestFund(CBFF),theMaïN'dombeEmissionReductionsProgramincludesabalancedcombinationofenablingactivities(strengtheninggovernance,capacitybuilding,locallevelland-useplanning,securingandmodernizinglandtenure,demography)andsectorialactivities(reducedimpactlogging,agroforestry,conservationconcessions)over12.3millionhectaresoflandinDRC.Theprogramrepresentsauniquepartnershiptosecurealong-termpublicandprivatecommitmenttoreducingdeforestationandfinancefordeliveringemissionreductions,povertyreductionandsustainabledevelopmentatscale.

Ghana Ghana’sCocoaForestREDD+ProgramisthefirstREDD+programintheworldtofocusonanecologicallandscapethatisdefinedbytheproductionofagloballyimportantagriculturalcommodity—cocoa—whichisresponsibleforsignificantemissionsinthelandscape.Theprogramseekstosignificantlyreduceemissionsdrivenbyexpansionofcocoaintoforestareas,coupledwithillegallogging.Bytacklingthesedrivers,Ghanaaimstosecurethefutureofitsforestsandsignificantlyimproveincomeandlivelihoodopportunitiesforfarmersandforestusersacrosstheprogramarea.Ghana’sForestryCommissionandCocoaBoardarecommittedtojointlypursuingaprogrammatic,landscapestrategytoreducedeforestationandforestdegradationintheCocoaForestMosaicLandscape,includingworkingwiththeprivatesector.

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FY15 ANNUAL REPORT


Mexico Buildingonmorethan10yearsofexperienceinsustainableforestmanagement,Mexico’sprogramforaCommunity-BasedLandscapeApproachtoReduceGreenhouseGas(GHG)Emissionsaimsattransformingthemanagementofforestsattheterritoriallevel,andevengoesastepfurthertotakeanintegratedapproachatthelandscapelevel.UndertheFCPFCarbonFund,Mexicoisdevelopingacommunity-levelprogramspanningfivestatesandalmost18millionhectaresofland.WorkinginconjunctionwiththeForestInvestmentProgram(FIP),theprogramwillsupportruralcommunitiesinthedevelopmentoflow-carboninvestmentplansthataimtoreducecarbonemissionsfromdeforestationandforestdegradation.Theprogramwillscaleupthelessonslearnedfrompreviousexperienceandgivecontinuitytothemanagementofnaturalresourcesatthelandscapelevel.

Nepal Reachingapopulationofsevenmillionpeople,80percentofwhichareforestdependent,theemissionreductionsprograminNepal’sTeraiArcLandscapeispoisedtotransformthelandscapeandmanycommunitiesintheprogramarea.Themaindriversofdeforestationareunsustainableandillegalwoodharvesting,overgrazing,forestfires,landconservation(encroachment,resettlement).TheGovernmentofNepaliscommittedtothislandscape-levelprogram,whichisestimatedtogenerate14milliontonsofCO2emissionreductionsinfiveyears.ThisprogramwillprovidesubstantiallearningvalueforNepalandforotherREDD+programsglobally,asitistestingthecommunity-basedforestmanagementmodelasabuildingblockforscaledupREDD+programs.ThegovernmentisdedicatedtomakingthisREDD+initiativesuccessfulinreducingemissions,improvingforestgovernance,andenhancingthelivelihoodsofforestdependentcommunities.

Peru Peru´slargeemissionsreductionprogramtargetstwopoliticalregionswhichencompassmostofthedriversofdeforestationinthePeruvianAmazon.TheMinistriesoftheEnvironmentandAgriculture,Livestock,andIrrigation,regionalgovernments,andindigenousandprivatesectororganizationswillcollaborateonanintegratedlandscapeapproachaimedatimprovingenablingconditionsrelatedtoland-useandincreasingagriculturalandforestryproductivityandcompetitivenessthroughincreasedinstitutional,organizational,andproductivecapacitiesandaccesstomarkets.TheprogramformsanimportantpartofPeru´semergingstrategyforLEDandgreengrowthandpresentsmultiplesynergieswithmultilateraleffortsfocusingonthePeruvianAmazon.

Republic of Congo TheEmissionReductionsPrograminNorthernCongoproposedbytheRepublicofCongoisacollaborativepublic-privatepartnershipwithCIB-Olam,theleadingloggingconcessionaireinthecountry.Programactivityisbuiltaroundaddressingthedriversofdeforestationanddegradationbasedonsustainableforestmanagementintheloggingsectorandavoidingunplanneddeforestationfromshiftingslash-and-burnagricultureintheprogramarea.Theseinterventionshavesubstantialnon-carbonbenefitsthatsupportthenationalvisionforagreeneconomybuildingonsustainablemanagementofnaturalecosystems,participatorymanagementandthefightagainstpoverty.Theemissionreductionsprogramworkshand-in-handwiththeNationalREDD+Strategy.TheWorldBankisexploringopportunitiestoprovidetechnicalandfinancialsupporttothisprojectthroughtheProjetForêtetDiversificationEconomique(PFDE),whichwouldsupportagroforestryapproachesinthecocoaandbananasupplychains,aswellastools,trainingandplantationmonitoring.

Vietnam TheNorthCentralAgro-EcologicalRegionisalandscapethatiseconomically,environmentallyandsociallysignificant.ThejurisdictionalprogramimpactingsixprovincesintheNorthernAnnamiteMountainsaimstomakesubstantialachievementsthroughcatalyticcarbonfinanceforsustainableforest-agriculture.Vietnam’semissionreductionsprogramworksacrosskeysectorsdrivingdeforestationandforestdegradation(agriculture;infrastructure;shiftingcultivation;unsustainableforestharvesting;illegallogging)whichcanserveasaparagonofgreengrowthforVietnamandthewiderAssociationofSoutheastAsianNations(ASEAN)region.TheGovernmentofVietnamiscommittedtotheseinterventionsworkingwithcivilsocietyanddevelopmentpartners.

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4.2. Progress at the Impact Level

Inthefollowingsection,progressisreportedbasedonindicatorsatimpact,outcomes,andoutputlevelinlinewiththePerformanceMeasurementFramework(PMF)aspertheFCPF’sMonitoringandEvaluation(M&E)FrameworkthatwasadoptedinMarch2013.SeveralindicatorsincludingthoserelatedtoemissionreductionsprogramimplementationundertheCarbonFund(CF),arenotyetapplicable.Accordingly,theyarenotreferredtointhenarrativebelow.PleaserefertoSection8(ResultsMeasurementReportingFramework)foratabularaggregationoftargetsandoutputs.

Impact-level Results 1.1: The FCPF has contributed to the design of a global regime under or outside UNFCCC that provides incentives for REDD+

Impact-level indicator 1.1.B: Examples of how FCPF learningandexperiencehasfedintoUNFCCCREDD+decisions

TheStandingCommitteeonFinance(SCF)oftheUnitedNationsFrameworkConventiononClimateChange(UNFCCC)madeacallforinputstotheWorkingPaperonCoherenceandCoordinationforFinancingtoForests.TheWorldBankmadeasubmissioninresponsetothecallonJanuary30,2015.ThesubmissiondrawsupontheWorldBank’sexperienceinextendingfinancetoitsclientcountriesandinimplementingprojectsandprogramsthataddresssocio-economic,environmental,andglobalgooddimensionsofforests.ThesubmissioncoveredaspectsrelatedtocommittingfinancetoREDD+readiness;augmentingresourcesforinvestment;financingresults-basedactions;andimprovingcoherenceandcoordinationindeliveryofadequateandpredictablefinancinginsupportofclimatechangemitigationandsustainableforestmanagementobjectives.

TheGreenClimateFundadoptedaPerformanceMeasurementFrameworkwhereperformancemeasurementforREDD+willbeinformedbytheFCPFMethodologicalFramework.ThishighlightsthelearningvaluetheFCPFcanofferfrominitialapplicationoftheFCPFMethodologicalFramework.

Impact-level Results 1.2: Reduced emissions from deforestation and forest degradation from FCPF, especially CF portfolio countries

Thisimpact-levelresultisnotyetapplicable.

Impact-level Results 1.3: FCPF has catalyzed the creation of recognized standards for REDD+

Inpreviousyears,theFCPFestablishedglobalstandardsforREDD+withtheadoptionoftheReadinessAssessmentFrameworkandtheadoptionoftheMethodologicalFrameworkfortheCarbonFund.TheReadinessAssessmentFrameworkguidesREDD+countriesonhowtomeasureandcommunicatetheirrelativeprogressonREDD+readiness,andbuildsonthefoundationandmulti-stakeholderplatformscreatedduringthereadinesspreparationphase.Itsupportscountriestomakethetransitionfromreadinesstoresults-basedpayments.TheMethodologicalFrameworkfortheCarbonFundprovidesaglobalstandardforREDD+transactionsatscaleandguidesthepilotingofresults-basedcarbonfinancetransactionsthroughtheFCPFCarbonFund.

InFY15,theadoptionoftheGeneralConditionsforEmissionReductionsPaymentAgreements(ERPA)wasanotherimportantcontributiontoglobalstandardsforREDD+.TheapprovaloftheGeneralConditionsatPC18inNovember2014followedacollaborativeandinclusiveprocessthattookmorethantwoyearsduetothemanycritical,complex,andsensitivetechnical,environmental,social,cultural,andlegalissuesinvolvedinlarge-scaleREDD+finance,andthelackofUNFCCCregulatoryguidanceonmanyissues.TheGeneralConditionsprovidethetechnicalandlegalunderpinningoflarge-scalecarbontransactionsthatwillresultfromfutureERPAsenteredintobetweenCarbonFundParticipantsandforestcountries.

Impact-levelindicator1.3.A:Examplesofnon-participantcountriesthathaveadoptedFCPFstandardsintheirownREDD+process

NoconcretecountryexampleshavebeenrecordedinFY15.AspertheFCPF’sM&Eframeworkitisalsonotexpectedthatnewexamplesandresultscanbereportedattheimpactlevelforeachfiscalyear. However,otherfundswhichprovideresults-basedfinance,suchastheWorldBank’sBioCarbonFundarecarefullyreviewingtheFCPF’sMethodologyFrameworktoinformtheirownemergingperformancemeasurementframeworksandmayadaptcertainstandardsoftheMethodologicalFramework.

Impact-levelindicator1.3.B:CommonApproachsuccessfullyimplemented

FY15representedaroll-outofimplementationoftheFCPFCommonApproach.Forthefirsttime,bothDeliveryPartners(DPs),theInter-AmericanDevelopmentBank(IDB)andtheUnitedNationsDevelopmentProgramme(UNDP),submittedfullreportsontheimplementationoftheCommonApproachforthosecountrieswithactiveFCPF-financedimplementationofreadinessactivities.ReportsfromtheIDBcoveredGuatemalaandPeru,andreportsfromtheUNDPcoveredHondurasandSuriname. Inaddition,theUNDPreportedontheprogressmadeinsettingupanaccountabilitymechanismforREDD+.Keyadvancesincluded:

• BetweenJune2011andJune2014,UNDPconsulted extensivelyontheproposedproceduresandinstitutional set-upfora)theSocialandEnvironmentalCompliance Reviewandb)theStakeholderResponseMechanism (SRM),reachingouttoover10,000peopleandreceiving morethan300contributionsfromcivilsociety,external

experts,andUNDPCountryOffices,RegionalService Centers,andallBureaus.

• StandardOperatingProceduresfortheSocialand EnvironmentalComplianceUnit(SECU)wereapproved bytheDirectorofUNDP’sOfficeofAuditand InvestigationsinDecember2014andSECUbecame effectivestartingJanuary1,2015.SECUisnowaccepting complaintsfromaffectedpeopleforallUNDP-supported projectsapprovedafterthatdate.

• InJune2014,UNDPapprovedSocialandEnvironmental StandardsandtheSRMtobeintegratedintoUNDP’s policiesandproceduresandeffectiveforallnewprojects startingJanuary1,2015.

InFY14,aseriesofFCPF-sponsoredregionalworkshopsaimedtobuildcapacityontheCommonApproachandonsocialinclusion.Consequently,inFY15,awarenessraisingandcapacitybuildingaroundtheCommonApproachshiftedtothecountry-levelactivitiesledbyeachDP.Thisincludedguidancetocountriesonapplicablepoliciesandproceduresonenvironmentalandsocialsafeguards,accesstoinformation,andfeedbackandgrievanceredressmechanisms. InFY15,thethreeactiveFCPFDPsfurtherproducedajointguidancenoteonEstablishingandStrengtheningGrievanceRedressMechanisms,whichhasbeenmadewidelyavailable. TrainingforoperationalstaffoftheDPsincludedasessionon“SafeguardsforREDD+”thatwasconductedforWBstaffinMarch2015.ThetrainingsessiontouchedonanumberofareasrelatingtotheCommonApproach,inparticularSESA/ESMFimplementation.InJune2015,acalibrationworkshopwasheldforIDBandFMTstaffonanumberofFCPFoperationalissues,includingCommonApproachimplementation. TheFCPFcontinuestolookforopportunitiestocollaboratewithotherREDD+initiatives,suchastheUnitedNationsCollaborativeProgrammeonReducingEmissionsfromDeforestationandForestDegradationinDevelopingCountries(UN-REDD)andtheClimate,Community&BiodiversityAlliance(CCBA),onsocialandenvironmentalsustainabilityissuesofmutualconcern,includingtheCommonApproachanditsprovisions.

Impact-level Results 1.4: FCPF has catalyzed investment in REDD+ (CF, and grants)

Impact-levelindicatorI.4.A:Amountofnon-FCPFinvestmentsunderR-PPprocessinParticipantcountriesandforimplementationofERPrograms(e.g.,FIP,bilateraldonors,privatesector)

ThecostofREDD+readinessoftenexceedsgrantfundingavailablefromtheFCPFReadinessFund.Countrieshavebeenincreasinglysuccessfulinleveragingadditionalexternalfundingtofinancethecostofreadinessactivities.Ascountriesdemonstrateinitialresultsinreadinessimplementation,stronggovernmentownershipinREDD+objectives,and

participatoryandinclusivestakeholderengagement,theygaindonorconfidenceandattractadditionalinvestmentsfrommainlybilateralandmultilateralsources.Reportednon-FCPFinvestmentsreceivedundertheR-PPprocessiscapturedinTable1belowandhasgrownsignificantlycomparedtolastyear’sfigures.FiguresinTable1belowarebasedonprogressreportingbycountriesandmaynotbeexhaustive.The23countriesthatreportedonnon-FCPFinvestmentsforreadinesstogetherleveragedcumulativefinanceof$186million,whichrepresentsa1:1.7ratiocomparedwiththetotalvolumeofFCPFreadinessgrants($107million)madeavailabletothesecountries.Itshouldbenotedthatincreasedcumulativenon-FCPFinvestmentsinFY15arenotonlyduetoincreasedleveraging,butalsoduetoimprovedreportingbycountriescomparedtoFY14. Overthepastyear,anincreasingnumberofcountrieshavebeenactivelyfocusingonthedesignoffutureERPrograms.SignificantupfrontinvestmentsareneededtoimplementERProgramsandarecriticaltoachievingresultsforwhichCarbonFundpaymentsareproposed.However,CarbonFundpaymentsaredownstreampaymentsthatarereceivedonlysubsequenttoverificationofachievedemissionreductions.Countriesarethereforeseekinginvestmentstocoversubstantialupfrontfinancingneedsthatarenotlimitedtotheforestrysector,butmoreimportantlycoveraspectrumofothersectorswhichimpactdeforestationandforestdegradation,suchasagriculture,infrastructure,mining,andothers.Table2belowprovidesexamplesofnon-FCPFinvestmentsreceivedforimplementationofproposedERPrograms.The14countriesthatreportedonnon-FCPFinvestmentsreceivedforimplementationofERProgramstogetherleveragedcumulativeinvestmentfinanceof$1.112million,oranaverageof$83millionpercountry.FiguresinTable2arenotexhaustiveandonlycapturereportedfunding. Combinedupfrontinvestmentfinancetypicallyexceedsthescaleofdownstreamclimatefinancethatcountriesforesee.Countriesarethereforealsolookingintofinancingoptionsthatgobeyondtraditionalbilateral,multilateralandpublicinvestmentfinance,andareexploringprivatesectorinvestments,aswellasinnovativefinancingoptionssuchasbonds,guarantees,advances,andothers.

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Table 1: Amount of non-FCPF investments received under the R-PP process for REDD+ (in $)*

REDD+ Country Source Amount Provided

Bhutan UN-REDDProgramme $345,000

BurkinaFaso FIP $30,000,000

FIPDGM $4,500,000

Cameroon GovernmentofCameroon(MINEPDED)

$169,348

Cambodia UN-REDDProgramme $4,001,050

GovernmentofJapan(JICA) $14,000,000

UN-REDDProgramme–FAO $650,312

UN-REDDProgramme–UNDP-TRAC

$126,326

UN-REDDProgramme–TargetSupport

$200,000

UN-REDDProgramme–UNEP $140,000

Colombia GovernmentofGermany(GIZ) $4,402,000

UN-REDDProgramme $4,000,000

BioREDD $518,000

GovernmentoftheUS(USAID/FCMC)

$149,000

GovernmentofGermany(BMU)/Winrock/ClimateFocus

$1,844,000

MooreFoundation $2,480,000

GEF(CorazonAmazonia) $2,180,000

GovernmentoftheUK $326,000

GovernmentofColombia $3,444,000

Others $6,131,000

Côted'Ivoire GovernmentofCôted’Ivoire $1,270,110


GovernmentofFrance(AFD) $3,333,150

Chile GovernmentofSwitzerland(NAMAForest)

$1,800,000

IADB $190,000

EmpresaMineraBarrickZaldivar $137,500

CostaRica GovernmentofGermany(GIZ) $1,600,000

UN-REDDProgramme $760,000

GovernmentofNorway(NORAD)

$114,000

GovernmentoftheUS(USAID) $500,000

GovernmentofCostaRica $200,000

RepublicofCongo


GovernmentofRepublicofCongo $600,000

COMIFAC(RegionalREDD+ProjectandRegionalProjectMRV)

$200,000

DemocraticRepublicofCongo

UNDP $3,110,690

FAO $2,926,450

UNEP $1,346,060

Ethiopia GovernmentofNorway $5,000,000

GovernmentoftheUK(DFID) $5,000,000

Fiji FijiMinistryforFisheriesandForests(MFF)

$42,563

GovernmentofGermany(GIZ) $13,572

Ghana GordonandBettyMooreFoundation

$170,063

GovernmentofSwitzerland—SwissStateSecretariatofEconomicAffairs(SECO)

$400,000

Guatemala GovernmentoftheUS(USAID) $200,000

USAID/CNCG $100,000

USAID/PRCC $50,000

IUCN $20,000

IADB $100,000

UNDP $30,000

Guyana GovernmentofNorway $3,110,690

GuianaShieldFacility $490,000

GovernmentofGermany(KfW) $627,000

GuyanaREDD+InvestmentFund $1,708,000

LaoPDR GovernmentofGermany(CliPADProjectthroughGIZandKfW)

$15,554,700

JapaneseGovernment(FIMProject,PAREDDProject,NFIS)

$9,000,000

Madagascar GovernmentofGermany(GIZ) $13,333


FA/PE3/GVT $1,412,000

Mozambique UN-REDDProgramme $4,000,000

Nepal GovernmentoftheUS(USAID) $1,136,600

GovernmentoftheUK(DFID/SDC) $1,467,500

GovernmentofFinland $780,000

GovernmentofJapan $360,000

Nicaragua GovernmentofGermany(GIZ) $100,000

FAO $5,000

Peru GordonandBettyMooreFoundation

$2,010,000

GovernmentofGermany(KfW) $3,980,000

UNREDD $960,000

Tanzania GovernmentofNorway(CivilSocietyOrganizationprogram)

$17,000,000

Togo GovernmentofGermany(GIZ/ProREDD)

$1,367,000

WorldBank/PGICT $1,289,000

Uganda GovernmentofAustria $830,286

CIF/FIP(inpreparation) $250,000

UN-REDDProgramme(inpreparation)

$1,867,000

TOTAL $185,645,303

*Itshouldbenotedthatfiguresarebasedoncountryreportingandmaynotbeexhaustive.

Table 2: Amount of non-FCPF investments received for implementation of ER Programs (e.g., FIP, bilateral donors, private sector), if relevant (in $)*

REDD+ Country Source Amount Provided

Colombia BioREDD $14,070,000

Côted'Ivoire FIP $20,000,000

DemocraticRepublicofCongo

FIP $60,000,000

FIPDGM $6,000,000

GovernmentofNorway $2,500,000

CongoBasinForestFund(CBFF)

$25,000,000

InternationalTropicalTimberOrganization

$600,000

COMIFAC $305,000

UNEP $40,000

Ethiopia GovernmentofNorway(forOromiaREDD+readinessprogram)

$3,000,000

GovernmentofNorway(officialpledge)

$50,000,000

GovernmentofNorway(fornationalreadinessperformance)

$10,000,000

Ghana JapaneseFundedForestPreservationProgramme(FPP)TechnologyTransferandSupportfortrendanalysisofforestlandchange,Forestresourcemap,biomassandC-StockestimationandCapacitybuilding

$7,800,000

GovernmentofGermany(GIZ)ForestMonitoringbasedonGermanRemoteSensingTechnology

$555,525

FIP $55,330,000

GordonandBettyMooreFoundationforbiomassmap

$126,063


IUCNGlobalGenderOffice $15,000

Guatemala IADB $500,000

FIP $24,250,000

Indonesia GovernmentofGermany(KfW) $29,371,000

GovernmentofGermany(GIZ) $22,348,000

FIP $105,000,000

FIPDGM $6,500,000

LaoPDR GovernmentofGermany(KfW) $12,770,000

GovernmentofGermany(GIZ) $5,683,000

FIP $30,000,000

FIPDGM $4,500,000

FIP(sub-projects) $61,900,000

Madagascar AFD $333,315

Mexico FIP $60,000,000

FIPDGM $6,000,000


GovernmentofNorway $15,356,000

InternationalBankforReconstructionandDevelopment(IBRD)

$25,660,000

GovernmentofFrance(AFD) $2,418,000

Nicaragua GEF $1,494,320

FIP $50,000,000

Peru FIPDGM $5,500,000

IADBtoFIP $450,000

GEF $6,000,000

RoC GovernmentofGermany(GIZ/ProREDD)

$3,633,000

Togo GEF/WestAfricanEconomicandMonetaryUnion/UNDP/MinistryofEnvironmentandForestResources

$93,358

WorldBank/ProjectManagementIntegratedDisasterandLand

$1,561

TOTAL $1,112,238,748

*Itshouldbenotedthatfiguresarebasedoncountryreportingandmaynotbeexhaustive.

Acronyms:USUnitedStatesUKUnitedKingdom

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Impact-level Results 1.5: The FCPF has generated momentum to address governance and transparency issues and policy reforms related to sustainable forest resource management and REDD+

Impact-levelindicator1.5.B:Numberofpolicyreformsinitiated,completedorunderwaycomplyingwithREDD+standardsinParticipants’country,potentiallyincludeissuesoflandtenure

Policyreformmustbeconsideredaspartoflarger,dynamicnationalprocesses,towhichFCPFReadinessGrantscanmakeimportantcontributions,butwhichareentirelydrivenbyautonomousnationalgovernments.Inmanycountries,FCPFREDD+readinessfundingisessentialtopromotecapacitybuilding,analyticalwork,socialinclusionprocesses,andhighlytechnicalworkrelatedtoforestcarbonassessmentsandmonitoring.WhiletheseactivitiessupportandfeedpolicyreformprocessesinsupportofREDD+,initiationandcompletionofpolicyreformrequirescollectiveactionacrosssectorsandleadershipatnationalandsub-nationallevelsthatgobeyondtheleverageofFCPFreadinessgrantfunding.Assuch,thefollowingexamplesprovideasnapshotofimportantprogressmadeinFY15onpolicyreformthatguidesandinformsREDD+,butthatmustbeviewedinthecontextofbroadernationalprocesses. DRChasintegratedREDD+intothecountry’sEconomicGovernanceMatrixandprogressisregularlymonitoredunderthesupervisionoftheMinistryofFinance.Morespecifically,the

followingthreemeasuresdirectlyrelatetoREDD+:i)completionoftheconversionprocessoflegalforesttitlesandeffortstocombatillegallogging;ii)enhancedtransparencyintheforestsector;iii)implementationoftheREDD+process. Whilethelandtenurereformprocessbeganslowlyin2012,theinclusionofissuessuchasland-useplanninginthegovernancematrixhasprovidednewmomentumforthereformprocess.Asaresult,aMinistryofLand-usePlanningwasrecentlycreatedandthenationalcommissionhasbeendeployedtoprovincialandlocallevels.Adialoguehasstartedaroundthedevelopmentofanationalland-useplan. InColombia,forthefirsttime,achapterongreengrowthhasbeenincludedintheNationalDevelopmentPlanfortheperiodof2014-2018.Oneofthemainobjectivesistofocusonsustainableandlow-carbongrowth,withreductionofdeforestationstatedasoneofthepriorityactions.TheNationalDevelopmentPlanprovidesanimportantframeofactionforfurtherpolicyreformaroundREDD+. InMozambique,sectoralmandateswerealignedinJanuary2015withthecreationofanewMinistry(MinistryofLand,EnvironmentandRuralDevelopment,MITADER)responsibleforland,environment,ruraldevelopment,protectedareasandforests.ThisbroughttogetherpartlyoverlappingmandatesofthepreviousMinistryforCoordinationofEnvironmentalAffairs(MICOA)andtheMinistryofAgriculture(MINAG).ThecreationofthenewMinistryhasstreamlinedpolicyreformandcoordinationofactivitiesinthelandusesector,includingonREDD+activities.Aspartoftheinstitutional

reorganization,anewunitwascreatedthatisresponsibleformanagingexternallyfundedprojects,fundraising,anddonorcoordination.Withseveralnewandexistinglarge-scaleinvestmentoperationsactivearoundlanduse,forestry,andREDD+inMozambique,thenewinstitutionalstructurehasprovenefficient.Overthecourseofthelastyearitcontributedsignificantlytotheaccelerationoftheroll-outandimplementationofseverallandscapeinitiativesontheground,aswellasREDD+strategydevelopmentatthenationallevel. LegislativereforminEthiopiafurtherbroughttheenvironmentandforestunderasingleinstitutionalarrangementunderthenewMinistryofEnvironmentandForest,whichwasestablishedin2013.Thisinstitutionalreformhasmadeforestissues(conservation,managementandrestoration)muchmoreprominentinthenationalagenda.Therecently-electednewGovernmenthasreorganizedtheMinistryintotheMinistryofEnvironment,ForestryandClimateChangewiththeobjectivetoaligncoordinationaroundforestmanagement,climatechangeadaptation,andmitigationmatters. InGuatemala,CongressapprovedtheProbosqueProgram,throughLawNumber02-2015,whichwillhelpscaleupexistingforestincentiveprograms,bydevoting1percentofthenationalbudgettoincentivizetheestablishmentofanadditional40,000hectaresofnaturalforestprotection,reforestationandagroforesty.BeneficiariesoftheProbosqueProgramincludesmalllandowners,cooperatives,andindigenouscommunitieswithcommunaltenure.Theincentiveprogrampromotes

compensationforecosystemandenvironmentalservicesassociatedwiththemanagementandprotectionofforests. InMexico,theIntegralTerritorialManagementModel,withitsapproachtosustainableforestdevelopment,andREDD+havebeensuccessfullyincorporatedinthe2014-2018NationalForestryProgram(PRONAFOR),whichsetsforththeobjectives,strategiesandlinesofactionfortheperiodof2014-2018.Amongstothers,theNationalForestryProgramaimstoapplymultisectoralterritorialmanagementmodelsforruralcommunitieswithaviewtoenhancingland-usemethodsintheruralsector.Moreover,forestgovernancesystemswillbepromotedandsocialparticipationwillbestrengthenedtosupportplanning,consultationanddialoguebetweengovernmentandbroadersociety.Thelawincludesmeasurestoensurethatrurallandowners,ruralcommunitiesandIndigenousPeoplescancontributetoprogramimplementation. InPeru,anewEcosystemServicesLawwaspassedinJune2014.ThelawwasadoptedonWorldEnvironmentDayandprovidesalegalframeworktorecognizethemaintenanceofecosystemservices,includinggreenhousegasemissionsreductions,biodiversityconservation,andthepreservationofnaturalbeauty.Investmentsinwatershedservicesarealsoincorporated.Thelawandrelatedregulationswillcontributetothedevelopmentoflocal,regional,andnationalinitiativestorewardactionsthatensuretheprovisionofecosystemservices,includingREDD+,whichgenerateeconomic,socialandenvironmentalbenefits.

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4.3. Progress at the Outcome Level

Outcome-level Result 1: Efforts successfully undertaken by countries with FCPF support to achieve ER from deforestation and/or forest degradation, and to benefit from possible future systems of positive incentives for REDD+ (Readiness Fund)

Outcome-levelindicator1.A:NumberofReadinessPackagesendorsedbyPC(R-Packagesareinlinewithassessmentframework)

Target:2R-Packagesby2014,8R-Packagesby2015,20+R-Packagesby2018

InFY15,DRCwasthefirstcountrytohaveitsReadinessPackageendorsedbythePC.TheR-PackageprovidedasnapshotofDRC’sreadinessprogressrelativetothecountry’scircumstancesandrecognizedthatcapacitycontinuestobebuiltbeyondtheR-Packagemilestone.AnimportantvalueoftheR-Packagewastheparticipatoryandinclusivemulti-stakeholderself-assessmentconductedbythecountry.ThePCwaspleasedwithnewlegislationunderpreparationrelatedtoIndigenousPeoples’rights.DRCwasencouragedtocontinuetostrengtheninstitutionalarrangementstocoordinateandimplementREDD+activitiesandtomakeprogressonREDD+-relatedpolicyreformsincludingland-useplanningandlandtenure. WhilethesubmissionandendorsementofthefirstR-PackageatPC19inMay2015representedanimportantmilestonefortheFCPF,overallprogresstowardsreachingthisimportantreadinessmilestoneisslightlylaggingbehindearlieranticipatedtargets.ForPC20inNovember2015onlyoneadditionalR-Packageisexpectedtobesubmitted.However,anumberofadditionalR-PackagesareexpectedtobereadyforPC21inMay/June2016.TheparallelprogressonERProgramdesignhashelpedcountriesfocus,strengthen,andevenacceleratereadinessactivitiesasgapsininstitutionalandtechnicalarrangements,aswellaspolicyreformobjectives,becomemoreconcrete.

Outcome-level Result 2: Selected FCPF countries demonstrate key elements (carbon accounting, programmatic elements and pricing) of performance-based payment systems for ER generated from REDD+ activities with a view to ensuring equitable benefit sharing and promoting future large-scale positive incentives for REDD+ (Carbon Fund)

Thisoutcome-levelresultisnotyetapplicable.

Outcome-level Result 3: Engagement of all stakeholders (governments, CSO, IP, private sector, delivery partners) to sustain or enhance livelihoods of local communities and to conserve biodiversity within the approach to REDD+

Outcome-levelindicator3.A:DesignofnationalREDD+strategies,monitoringsystemsandERProgramsaddressesindicatorsforenhancementoflivelihoodsoflocalcommunitiesandforbiodiversityconservation

GhanacompleteditsNationalREDD+StrategyinJanuary2015.Thestrategywillbeimplementedinathree-phasedapproach,withtheinitialimplementationphasefocusingonAvoidedDeforestation,CarbonStockEnhancements,andbiodiversityconservation.Thestrategydoesnotyetincludeconcreteindicatorsrelatedtonon-carbonbenefits,butstatesthatGhanaisexpectedtohaveafunctionalMRVsysteminplaceanduseexistingmethodologies,suchasfromtheClimateCommunityandBiodiversity(CCB)standardsformonitoringbiodiversityimpact. ItisimportanttoemphasizethatinthecontextofGhana,effortsarealreadyunderwaytoimplementREDD+activitiesatthejurisdictionalandprojectlevelswhichmaybepremisedonVerifiedCarbonStandard(VCS)andCCBAstandards,butalsoanationalmonitoringandreportingregimeofgreenhousegases(GHGs)totheUNFCCCisalreadyon-going,undertheNationalGreenhouseGasInventory(NGHGI).Thus,asGhana’sREDD+implementationstructureevolves,itwillbeimportanttoconsiderMRVsystemsandmodalitiesforproject,jurisdictionalandnationallevels,includingpossibleoptionsforcombiningthesemodalitiesinaseamlessMRVimplementationsystem. EthiopiaissuedafirstdraftofitsNationalREDD+StrategyinNovember2014.TheStrategyenvisagesthatimplementationofREDD+isbasedonasetofprinciplesthatensuresclimatebenefitsalongwithco-benefits,suchasbiodiversityandlivelihoods,whilerespectingtherightsoflocalcommunitiesandforestdependentcommunities.ThestrategystatesthatEthiopiaplanstodevelopaMRVsystemthatwillhelptrackarangeofnon-carbonbenefits,suchasbiodiversityandsocialbenefits

Outcome-level Result 4: Knowledge gained in the development of the FCPF and implementation of Readiness Preparation Proposals (under the Readiness Fund) and Emission Reductions Programs (under the Carbon Fund) broadly shared, disseminated and used by international REDD+ practitioners

Outcome-levelIndicator4.A:Numberofnewcountries/stakeholdersrequestingtobecomeFCPFmembers/observers

InFY14,11newcountries(Belize,Bhutan,BurkinaFaso,Côted’Ivoire,DominicanRepublic,Fiji,Nigeria,Pakistan,RepublicofSudan,TogoandUruguay)wereselectedintotheFCPF.ThisfollowedadecisionbythePCtoreopenthepartnershiptonewcountries.InFY15,areopeningofthepartnershipwasnotunderconsiderationandnoadditionalcountriessubmittedexpressionsofinteresttobecomeFCPFmembersorobservers.

Outcome-levelindicator4.B:Examplesofutilizationof/orreferencetoFCPFknowledgeproducts

TheGuidetotheFCPFReadinessAssessmentFrameworkcontinuestobethemostutilizedknowledgeproducttoinformcountriesatdifferentstagesofreadinesspreparation.InFY15,

sixcountriesappliedtheAssessmentFrameworkastheytookstockofreadinessprogressatmid-termstage.SeveralnewcountriesusedtheAssessmentFrameworktostrategicallyplanandprioritizetheirreadinessactivities.Mostprominently,DRCbecamethefirstcountrytoadvancetopreparationoftheReadinessPackage,andtoapplytheAssessmentFrameworktodocumentthecountry’sself-assessmentofitsreadinessprogress. InFY15,theFCPFSecretariatcontinuedtoplaceitsemphasisonprovidingcustomizedsupporttocountriesthatwerepreparingearlyideas,ER-PINs,aswellasdraftER-PDsforpresentationtotheCarbonFund.SeveralcountriesreceivedtechnicalassistancetorespondtothecriteriaandindicatorsoftheMethodologicalFrameworkfortheCarbonFund.Respondingtothedemandfromcountriesonguidanceontechnicalaspectsofcarbonaccounting,theFCPFlaunchedaweb-baseddecisionsupporttoolonreferencelevelsandMRVdesign(seeBox1),whichissupportingcountrieswiththetechnicalpreparationofERPrograms. Awell-receivedknowledgeproductinFY15wasastudyonEarlyLessonsfromJurisdictionalREDD+andLowEmissionsDevelopmentProgramsthatwasjointlypublishedbyTheNatureConservancyandtheFCPF.ThestudyfeatureseightofthemostadvancedjurisdictionalREDD+/LowEmissionsDevelopmentprogramsworldwidedesignedtoreduceforest-relatedemissions.SixoftheseprogramshavealsobeenselectedintothepipelineoftheFCPFCarbonFund.Thereportprovidesinsightsintothedynamicsandrealitiesonthegroundexperiencedinthesejurisdictionsandservesasaresourceforpractitioners,forestcountrygovernments,donorsandothersworkingtoadvancejurisdictionalREDD+atlandscapescale.Thejointstudyfindsthatwithappropriateinvestmentandsupport,jurisdictionalREDD+programshavethepotentialtobecometransformationalmodelsofforest-friendlydevelopment.

BOX 1: WEB-BASED TOOL ON REFERENCE LEVELS AND MRV DESIGN

TheFCPFREDD+DecisionSupportToolboxisanewinternet-based,interactiveanddata-drivendecisionsupporttooltohelpcountriesbuildtheirREDD+programs.Userscanexploreoptionstodevelopaforestreferenceemissionlevelandaforestmonitoringsystem,bothofwhichareessentialtomeasure,reportandverifytheimpactofREDD+interventions.ThetoolboxisintendedtobeusedbyforestcountriesastheyconsiderkeydesignandtechnicalcomponentsoftheirnationalorsubnationalREDD+programs.ItprovidespracticalguidancebasedonexistingREDD+frameworksincludingtheUNFrameworkConventiononClimateChangeandtheFCPF’sCarbonFundMethodologicalFramework.

ComplementarytotheREDD+DecisionSupportToolbox,acomprehensivesetoftrainingmaterialwasproducedjointlywiththeGlobalObservationofForestandLandCoverDynamics(GOFC-GOLD)initiative.Thistrainingmaterialprovidesadditionalin-depthtechnicalguidanceandreferencematerial.Thematerialwasdevelopedwithanetworkofinternationaltechnicalexpertsandpeer-reviewersandbuildsonestablishedinternationalgoodpracticeguidanceonpertinentmethodsandtechnologyforforestmonitoring.Amodularstructureallowsthematerialtobeusedindifferentsettings(workshopsorhands-ontraining)andbetailoredtodifferentaudiences(REDD+policyorin-countrytechnicalexperts).Thematerialincludes14technicalmoduleswithpracticalcountryexamplesandtrainingexercises.

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4.4. Progress by Output

Output 1.1: Readiness Assessment Framework is agreed upon and disseminated

Output-levelindicator1.1:ExistenceofpublishedassessmentframeworkonReadinessPackage

TheReadinessAssessmentFrameworkwasadoptedinFY13asperthetargetsetintheFCPFM&EFramework.Ithassincebeenawidelyusedtoolthatcountrieshaveappliedforaself-assessmentoftheirreadinessprogress.InFY15,sixcountries(CostaRica,Ghana,Liberia,Mexico,RepublicofCongo,andVietnam)appliedtheReadinessAssessmentFrameworkasatoolforstock-takingtoinformtheirmid-termreviewandfocusreadinessactivitiesgoingforward.Inaddition,DRCwasthefirstcountrytopresentaReadinessPackagebasedontheAssessmentFramework.

Output 1.2: Countries demonstrate an adequate plan to achieve preparedness for REDD+ funding

Output-levelIndicator1.2.a:NumberofR-PPsendorsedbyPCTarget:30+R-PPsby2015

SincetheendofFY14,theR-PPsofall45activeFCPFcountriesofthetotal47REDD+countries1havebeenendorsedbythePC.NoadditionalR-PPswereendorsedinFY15.Thecurrentstatusof45endorsedR-PPswellexceedsthePMF’stargetandamountstoatotalof$211million2ingrantresourcesallocatedforREDD+readinesspreparation.

Output-levelIndicator1.2.b:NumberofReadinessPreparationGrantagreementssigned

Target:30+signedgrantagreementsby2015

ContinuingthepositivetrendestablishedinFY14,alargenumberofcountriesprogressedtothenextmilestoneinthestepwiseapproachtoreadinessandsignedtheirReadinessPreparationGrants.InFY15,13additionalReadinessPreparationGrantsweresignedbyBhutan,BurkinaFaso,Colombia,Côted’Ivoire,Fiji,LaoPDR,Madagascar,Nigeria,Pakistan,PapuaNewGuinea(PNG),Sudan,Togo,andVanuatu.Asaresult,atotalof35countriesarenowimplementingreadinessactivities.ThisisabovethePMFtargetof30+grantssignedby2015.TheduediligenceprocessonthefinalR-PP(thestepthatprecedesgrantsignature)wascompletedforanotherthreecountries(Argentina,DominicanRepublic,andThailand)inFY15andtheyarethusexpectedtosignReadinessGrantsinearlyFY16. ThevolumeoffundsthathavebeenmadeavailabletocountriesinFY15insignedReadinessPreparationGrantsamountsto$49.4millioninFY15alone,oratotalof$133millionsincethebeginningoftheFund.3CountriesthatwereselectedintotheFCPFinFY14tooksignificantlylesstimefromR-PPapprovaltograntsignature.Asaresult,overone-thirdofallReadinessGrantsweresignedinFY15.

ThefocusoftheWorldBankandtheotherDPsremainsonprovidingtechnicalassistanceandguidancetocountriestoacceleratereadinessimplementationanddisbursementofreadinessfunds.

Output 1.3: Countries progress adequately on implementation of their R-PP and Grant Agreements

Output-levelIndicator1.3.a:Numberofmid-termprogressreportspresentedbycountriesthatfollowagreedreportingstandardsandarepresentedinatimelymanner

Comparedtopreviousyears,anincreasingnumberofcountriesreachedmid-termorreadinessimplementation.InFY15,sixcountries(CostaRica,Ghana,LaoPDR,Mexico,theRepublicofCongo,andVietnam)presentedtheirmid-termprogressreportsonnationalREDD+readiness,comparedtotwocountriesinFY14,4andjustoneinFY13.AllsixcountriesaswellasIndonesia5alsosubmittedrequestsforadditionalfundingandwereeachallocatedadditionalgrantsof$5million.Also,GhanaprogressedtosigningtheextensionoftheGrantAgreementinFY15,whiletheothercountriesareexpectedtosigngrantagreementsinFY16. Thesemid-termreportsprovidedawealthofinformationonprogressmadeandvaluablelessonslearnedforotherREDD+countries.Acommonpointofencouragementtocountrieswastocontinueeffortstostrengthenstakeholderengagementplatforms,bothatcentralanddecentralizedlevels,toensureparticipationofcivilsocietyandIndigenousPeoples,takingintoaccountaspectsofgenderandyouth.Countrieswerefurtherencouragedtocontinuecross-sectoralcollaborationanddialoguetosubstantiateintegrated,multi-sectorlandscapeapproachestonationalland-useplanningefforts.

Output-levelIndicator1.3.b:PercentageofcountriesthatareachievingplannedmilestonesaccordingtoapprovedReadinessPreparationgrant(>$3.4million)

Atthetimeofprint,reportsfromtheWorldBank(e.g.,GrantReportingandMonitoringreports)andfromotherDeliveryPartnerswere,inmostpart,notyetavailableastheyaregenerallyduebytheendOctoberofeachyear.Theanalysisforindicator1.3.b.wasthereforebasedoncountryprogressreports.

Output-levelIndicator1.3.c:Percentageofcountriesthatareoverallachievingplannedmilestonesforsubcomponentaspercountryannualreportingscale

AsperthePMF,thetargetby2015isfor50percentofcountriesimplementingR-PPstoshowperformance(atthesubcomponentlevel)advancingwith50percentofsubcomponentsratedas“furtherdevelopmentrequired.”By2018,thePMFstates,100percentofcountrieswouldbeexpectedtohaveprogressedto80percentofsubcomponentsratedat“progressingwell”orabove. ThePMFtargetfor2015hasbeenmet,asonly34percentreportedto“requirefurtherdevelopment”toachieveimplementationmilestones,while66percentofcountries

implementingR-PPsaremakingeithersignificant,goodoratleastmixedprogressagainstplannedmilestones.6Morespecifically,thestatusforFY15isasfollows.Ofall35countrieswithsignedgrantagreements,711countriesarereportingtohavemadesignificantprogressagainstplannedmilestones(Cameroon,Chile,CostaRica,DRC,Ethiopia,Ghana,Guatemala,Liberia,Nepal,Nicaragua,andtheRepublicofCongo).Sixcountriesareprogressingwell,butneedfurtherdevelopmentagainstsomeplannedmilestone(Cambodia,Côted’Ivoire,Honduras,Mozambique,PeruandVanuatu).Sixcountriesreportedthattheyneedfurtherdevelopmenttoreachplannedreadinessmilestones(ElSalvador,Guyana,Indonesia,Mexico,Uganda,andVietnam).Finally,12countriesareintheveryearlystagesofR-PPimplementation(i.e.,grantagreementshavebeeneffectiveforlessthanayearandcountriesaregenerallyintheprocessofstaffingimplementationstructures,operationalizingimplementationarrangements,andplanningreadinessactivities).These12countriesconsequentlyreportedtheneedforfurtherdevelopmenttoreachimplementationmilestones(Bhutan,BurkinaFaso,Colombia,Fiji,LaoPDR,Madagascar,Nigeria,Pakistan,PNG,Sudan,SurinameandTogo).Output-levelIndicator1.3.d:PercentageofcountrieswithadisbursementratethatisinlinewithagreedReadinessPreparationGrant(>$3.4million)disbursementplansofgrantagreement(upto10%variancewithplans)

Whiledisbursementrateshaveimprovedsignificantlyoverthelasttwoyears,theportfolio-leveltargetof“60percentofcountriesdisbursewithupto10percentvarianceoftheirdisbursementplans”isnotyetbeingmet.Currently,only26percentofcountrieswithReadinessPreparationGrantsaredisbursingwithin10percentvarianceoftheirplan,while28percentofcountriesaredisbursingwithin50percentofplan,and46percentareeitherdisbursingatlessthan50percentofplanorarenotyetdisbursing. OneofthereasonsfornotmeetingportfoliotargetsisduetothenumberofnewcountriesthatwereacceptedintotheFCPFandthatconsequentlysignedReadinessGrantsonlyveryrecently.Anotherreasonmaybethatcountriessetoverlyambitiousdisbursementtargets.Forexample,thecostsoflargecontracts(e.g.,fortechnicalstudies,SESAprocessandsafeguardsdocuments)typicallyarenotdisburseduntilfinaldeliverableshavebeensubmitted.Assuch,disbursements

tendstolagbehindactualimplementation,anddoesnotimmediatelyreflectimplementationprogress. Amoredetailedoverviewofdisbursementratesforthe35countriesthathadsignedgrantagreementsbytheendofFY15isprovidedasfollows(seeTable3).Fivecountriesaredisbursingbeyondtargets,theyare:Bhutan,DRC,Ghana,Honduras,andUganda.Fourcountriesaredisbursingwithin90percentofplan,theseare:Chile,Côted’Ivoire,Mexico,andMozambique.Tencountriesaredisbursingwithin50percentofplan:CostaRica,Cameroon,Ethiopia,Guatemala,Nepal,Nicaragua,RepublicofCongo,Togo,Vanuatu,andVietnam.Eightcountriesaredisbursingatlessthan50percentofplan:Cambodia,Guyana,Indonesia,LaoPDR,Liberia,PapuaNewGuinea,Peru,andSuriname.Eightcountriesarenotyetdisbursing,theyare:BurkinaFaso,Colombia,ElSalvador,Fiji,Madagascar,Nigeria,Pakistan,andSudan.WhileElSalvadorsigneditsgrantinmidFY14,theothersevencountriesonlysignedtheirgrantagreementsinthelastfivemonthsofFY15andwerethusfocusedongettingaccounts,financialmanagementsystems,andotherfiduciaryrequirementssetup. DisbursementratesacrosstheportfolioareexpectedtoincreaseinFY16,ascountrieswithrecentlysignedGrantAgreementsprogresswithprocurementandimplementation.Output 2.1: Standards and preparations in place for high-quality ER Programs discussed and endorsed by CF Participants and/or PC

Output-levelIndicator2.1:NumberandtypesofstandardsandmanagementtoolsdiscussedandendorsedbyCFparticipantsand/orPCforERprogramsincluding:

2.1.a:MethodologicalFrameworkandPricingApproach

Table 3: Disbursement rates of countries with Readiness Preparation Grants signed by end of FY15

More than plan (>100%)

Within 90% of plan

Within 50% of plan

Less than 50% of plan

Not yet disbursing

Bhutan Chile CostaRica Cambodia BurkinaFaso

DRC Côted'Ivoire Cameroon Guyana Colombia

Ghana Mexico Ethiopia Indonesia ElSalvador

Honduras Mozambique Guatemala LaoPDR Fiji

Uganda Nepal Liberia Madagascar

NicaraguaPapuaNewGuinea

Nigeria

RepublicofCongo

Peru Pakistan

Togo Suriname Sudan

Vanuatu

Vietnam

5 countries 4 countries 10 countries 8 countries 8 countries

1TwocountriesarecurrentlynotactiveintheFCPF:BoliviaandGabon.2Thisfigureincludesinitialreadinessfundingof$3.8millionaswellas

additionalfundingof$5millionforselectedcountries.3Thesefiguresdonotincludeadditionalfundingof$5million.4CostaRicaandGhanapresentedatPC17inearlyJuly2014inLima.Whilethey

werealreadyreportedoninthe2014AnnualReport,strictlyspeakingtheyfallintoFY15.

5Indonesiapresenteditsmid-termprogressreportinFY14,butonlyrequestedadditionalfundinginFY15.

6Theremaining6percentrepresentthetwocountriesthatdidnotsubmitprogressreportsforFY15.

7CountrieswhohavenotyetsignedgrantagreementsandarethusnotimplementingFCPF-financedreadinessactivitiesarenotrequiredtousethePMF’sreportingformat.

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MethodologicalFramework

TheMethodologicalFramework(MF)wasadoptedbyCarbonFundParticipantsattheeighthCarbonFundmeeting(CF8),inDecember2013,inParis.ItprovidesaglobalstandardforREDD+transactionsatscaleandguidesthepilotingofresults-basedcarbonfinancetransactionsthroughtheFCPFCarbonFund.

PricingApproach

DiscussionsonthePricingApproachfortheCarbonFundwereonholdinFY15.Previously,CarbonFundParticipantshadindicatedapreferenceforfixedpricingundercurrentconditionsandawillingnesstopayupto$5/tCO2e,whilerecognizingthattheultimatepriceissubjecttonegotiationsatthetimeofERPAnegotiations. REDD+Countrieshavenotyetprovidedsignalsontheirpriceexpectations,andfirstrequestedsupportoncostassessmentandfinancialanalysisofERProgramstobetterunderstandthecostassociatedwithERProgramimplementation.WhilecountriesunderstandthatREDD+isanincentivemechanismthathelpstoco-financetheimplementationofREDD+activitiesthatacountrymayputinplace,abetterunderstandingofERProgramimplementationcostsiscriticaltocountriesastheycanfactortheseintopricenegotiations. InFY15,theFMThasbeenworkingwithanumberofcountries,especiallythoseintheCarbonFundpipeline,toperformearlyanalysisandplanningforfinancingofCarbonFundERProgramsusingthecostassessmenttoolsdevelopedpreviously.Suchupstreamanalysishasallowedcountriesto

startstructuringERProgramsandtoalignvariousstreamsoffinance,includingtheresourcesprovidedthroughtheFCPFReadinessFund,otherinvestmentfinanceandresults-basedfinancethroughtheCarbonFund.

Output-levelIndicator2.1.c:Legaldocuments(GeneralConditions,ERPAtermsheet)

Target:ERPATermSheetbyPC14,GeneralConditionsforERPAbyPC16

TheERPATermSheetwasendorsedatthefourteenthParticipantCommitteemeeting(PC14)inMarch2013(FY13)meetingthePMFtarget. InFY15,anotherimportantmilestonewasreachedwiththeadoptionoftheGeneralConditionsforEmissionReductionsPaymentAgreements(ERPA)atPC18inNovember2014. Thismilestonewasreachedafteracollaborativeandinclusiveprocessthatlastedovertwo-and-a-halfyearsandincludedseveralinformalandformalsessionsandworkshops,outreachtocountries,andinformalexpertdiscussiongroups.Athoroughandinclusiveprocesswasfollowed,duetothemanycritical,complex,andsensitivetechnical,environment,social,cultural,andlegalissuesinvolvedinlarge-scaleREDD+finance,andthelackofUNFCCCregulatoryguidanceonmanyissues. TheapprovaloftheGeneralConditionsclosedalong,yetimportant,chapteronthedevelopmentofthetechnicalandlegalunderpinningoffutureERPAs.ThedelayofapprovaltoPC18,comparedtotheoriginalPMFtargetofPC16,wasduetofactthattheGeneralConditionshingeduponthefinalizationandapprovaloftheMethodologicalFrameworkfortheCarbonFund(seeBox2).

Output 2.2: Countries have entered in the portfolio of the CF

Output-levelIndicator2.2.a:NumberofearlyideasorERProgramspresentedbycountriestotheCF

Todate,24countrieshavepresentedanEarlyIdeawiththeaimofreceivingearlyfeedbackandexpertadviceand/orhavealsopresentedafull-fledgedER-PINwiththeaimofbeingselectedintotheCarbonFundpipeline(seeTable4). BytheendofFY14,ER-PINsfromeightcountries(Chile,CostaRica,DRC,Ghana,Nepal,Mexico,RepublicofCongo,andVietnam)hadbeenselectedintothepipelineoftheCarbonFund.InFY15,threeadditionalER-PINswerepresented.GuatemalaandPeruwereselectedintothepipelineandIndonesiawasconditionallyselectedintothepipeline,thusincreasingtheCarbonFundpipelineto11countries.

InFY15,CarbonFundParticipantsextendedthetermoftheCarbonFundbyfiveyearstoDecember31,2025,toallowtimeforthedevelopmentofsoundERProgramsandatleastfive-yeartermsofprogramimplementation,aswellasverificationandpaymentofEmissionReductionsgenerated. WiththeextensionofthetermoftheCarbonFund,CFPsalsoindicatedinterestinincreasingfundingtotheCarbonFund,subjecttoqualityproposals.Assuch,countrieswereinvitedtopresentearlyideasforpotentialERProgramsatCF12inApril2015.Ninenewcountries(Argentina,Cameroon,Côted’Ivoire,DominicanRepublic,Fiji,Guyana,LaoPDR,Mozambique,andNicaragua)presentedtheirearlyideaswiththeaimtoreceivefeedbackfromCFPsrelatedtofurtherdevelopingtheEarlyIdeasintoER-PINsforpresentationatCF13inOctober2015. InFY15,sixadditionalcountriesnegotiatedandentered

Country CF2 CF3 CF4 CF5 CF6 CF7 CF9 CF10 CF11 CF12

Argentina EarlyIdea

Cambodia EarlyIdea

Cameroon EarlyIdea

Chile EarlyIdea ER-PIN ER-PIN

Colombia EarlyIdea

Costa Rica EarlyIdea EarlyIdea ER-PIN ER-PIN

Côte d’Ivoire EarlyIdea

Democratic Republic of Congo

EarlyIdea EarlyIdea ER-PIN ER-PIN

Dominican Republic

EarlyIdea

Ethiopia EarlyIdea

Fiji EarlyIdea

Indonesia EarlyIdea EarlyIdea EarlyIdea ER-PIN

Mexico EarlyIdea EarlyIdea ER-PIN

Ghana EarlyIdea ER-PIN

Guatemala EarlyIdea ER-PIN

Guyana EarlyIdea

Lao PDR EarlyIdea

Madagascar EarlyIdea

Mozambique EarlyIdea

Nepal EarlyIdea ER-PIN

Nicaragua EarlyIdea

Peru EarlyIdea ER-PIN ER-PIN

Republic of Congo

EarlyIdeaER-PIN ER-PIN

Vietnam EarlyIdea EarlyIdea EarlyIdea ER-PIN

Table 4: Countries that have presented early ideas or ER-PINs to the Carbon Fund

BOX 2: GENERAL CONDITIONS FOR EMISSION REDUCTIONS PAYMENT AGREEMENTS (ERPA)

TheGeneralConditions(GCs)arethelegalunderpinningoflarge-scalecarbontransactions.TheyprovideforgeneralrulesandproceduresforthesaleandpaymentforEmissionReductions(ER)tobegeneratedandverifiedunderanEmissionReductionsProgram.TheGeneralConditionswillbeincorporatedintoeachEmissionReductionsPaymentAgreement(ERPA)bywayofreferenceandarenon-negotiable.

Relation to the Methodological Framework: TheGeneralConditionsbuildonthecriteriaandindicatorsspecifiedintheMethodologicalFrameworkandprovide,amongothers,forthegenerallegalrulesandproceduresthatareexpectedtobefollowedduringEmissionReductionsProgramdesign,preparation,and,implementation.

Content of the General Conditions:WhereastheEmissionReductionsPaymentAgreement(ERPA)willcoverthecommercialtermsofacarbontransactionthatarenegotiableonacase-by-casebasis,theGeneralConditionsprovideforasetof(non-negotiable)generalrulesandproceduresthatapplytoeachtransaction.Suchrulesandprocedurescover,amongotherthings,issuesrelatedtothesale,transferandpaymentforverifiedERs,theallocationofresponsibilitiesintermsofERProgramdevelopment,ERProgramRegistration,ERMonitoringandERVerification,ERProgram/Sub-Projectimplementationandoperation,applicationofWorldBankOperationalPolicies(includingenvironmentalandsocialsafeguardspolicies),benefitsandbenefitsharingprinciples,Reversals,ReversalManagementMechanisms,ERProgramBuffer,transferofTitletoERs,EventsofDefaultandrelatedremedies,governinglawanddisputesettlement.

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intoaLetterofIntent(LOI)withtheWorldBankinitsroleasthetrusteefortheFCPFCarbonFund.ThereforeeightoftheelevencountriesselectedintotheCarbonFundpipelinehavenowsignedLOIs.Signatureispendingintheremainingthreecountries.InGuatemalasignatureisawaitingelectionoutcomes,inIndonesiasignatureispendingsubmissionofarevisedER-PIN,andinPerusignatureissubjecttoinstitutionaldiscussions. Intermsofnextsteps,countriesselectedintotheCarbonFundpipelinewillnowadvancethedevelopmentoftheirERProgramsconsistentwiththeMFandinaccordancewiththeWorldBank’sduediligenceprocess.TheywillalsoneedtopreparetheirReadinessPackageandhavetheReadinessPackageendorsedbythePCbeforesubmittingtheirERProgramDocumentforpotentialselectionintotheCarbonFundportfolio.BasedoncountrycapacityandexpectedtimelinestoprogressthroughtheCarbonFundbusinessprocess,thefirstERPDsubmissionstotheCarbonFundareexpectedinFY16.Therefore,thereisnopossibilityofsigningfiveERPAsby2015aspertargetintheFCPFM&EFramework.

Output 2.3: Increased levels of private sector investment for incentivizing, testing, and supporting up-scaling of ER activities

Output-levelindicator2.3:NumberofprivatesectorparticipantsinCarbonFundTarget:Twonewprivatesectorparticipantsby2014

WhiletheFCPFCarbonFundisnolongeractivelypursuingnewprivatesectorparticipantsintotheFunditself,theFCPFisinsteadfocusingonstrengtheningrelationshipswiththeprivatesectorwithaviewtofacilitatingpublic-privatepartnershipswithcompaniesthatproduce,tradeorbuycommoditiesthathavearoleindrivingdeforestationorforestdegradation. TheimportantrolethattheprivatesectorcanhaveforREDD+featuredprominentlyattheUNSecretaryGeneral’sSummitonclimatechangethattookplaceinNewYorkin2014,andtheresultingNewYorkDeclarationonForests.Withclimatechangeimpactingthebottomlineofprivatesectorbusinessandthesecurityofsupplychains,combinedwithgrowingconsumerawarenessofthedeforestationimpactofcertaincommodities,theprivatesectorhasanincreasedinterestindevelopingworkingrelationshipswiththepublicsectortoaddressunderlyingconstraints.Suchconstraintsincludetheneedforlandpolicyreform,improvedsmallholdercapacityinsupplychainmanagement,transformativeshiftstosustainablefarmingpractices,andimprovedenablingenvironmentsforprivatesectortodecoupleincreasedagriculturalproductionfromdeforestation. InFY15,theFCPFescalateditsengagementwithselectedprivatesectorcompaniestohelpfacilitatepublic-privatepartnershipsthattakedeforestationoutofthecommoditysupplychains.REDD+Countriesarealsoincreasinglyawareoftheimportanceofengagingtheprivatesectortoachieveimpactatscale. Forexample,MondelēzInternationalanditssuppliershave

expressedtheirsupportforimprovingcocoafarminginCôted’IvoireandexploringthebasisforcooperationbetweentheCôted’Ivoire’semergingEmissionReductionsProgramareaandthepilotofMondelēz’CocoaLifeprogram.Apartnershipoffersopportunitiestoscale-upinvestmentstoincreasefarmers’productivity,enhancedtraining,andincreasedaccesstoagriculturalinputs,whichinturncontributestoreducethepressureforagriculturalexpansionintoforestareas.IntheRepublicofCongo,CIB-OLAMhasbeenalongstandingpartner,includinginthedevelopmentofthecountry’sER-PIN.OLAMhaspartneredwiththeGovernmenttorehabilitatetheCongo’scocoamarketbyharnessingOLAM’sstrategicmarketpositionintheglobalcocoasector.Activitiesincludetheintensificationofshadegrowncocoaproductionwithcommunitiesindegradedforeststoavoidslash-and-burnpracticesintheprimaryforest. AnotherexampleisGhana,wheretheFCPFsupportsapartnershipbetweentheNationalCocoaBoard,small-scalecocoafarmersandcocoa-sourcingprivatesectorcompanies.Partnershipopportunitiesevolvearoundpromotingclimate-smartcocoapractices,agroforestry,andcommunity-basedapproachestoincreasecocoaproductivityandmeetevolvingglobalindustrydemandforsustainablecocoasupplychains.

Output 3.1:Enhanced capacity of IP and CSOs to engage in REDD+ processes at the country level

Output-levelindicator3.1.a:(i)Numberandtypeofexamplesofin-countryREDD+actionswhereIPandCSOsandlocalcommunitiesparticipateactivelyTarget:VariousnewexamplesexistwithstrongevidenceofIPandCSOactiveparticipationandbroadcommunitysupportinREDD+programs/readinessby2015

InMexico,theCONAFRoundtableforIndigenousPeoplesandRuralDwellerswasestablishedin2014.ItaimstoprovidesupportandfeedbacktotheconsultationprocessonthenationalREDD+Strategy(ENAREDD+).Amongstothers,theroundtableisintendedtoprovideadditionalinputtotheconsultationplanforthestrategy;developajointmethodologyforimplementingoftheENAREDD+consultations,withemphasisonmodalitiesdirectedatruralandindigenouscommunities,toensurethattheyareculturallyrelevant;evaluatetheENAREDD+consultationprocessandmakerecommendationsateachphase;andhelptosystematizethecommentsandopinionsexpressedduringtheconsultationphaseandmakerecommendationsfortheirinclusioninthefinalENAREDD+document.Thefollowingorganizationsareinvolvedintheroundtable:StateUnionofCommunityForestersofOaxaca,A.C.(UESCO),theNationalUnionofCommunalForestOrganizationsA.C.(UNOFOC),theGoverningCounciloftheMexicanNetworkofRuralForestryOrganizationsA.C.(REDMOCAF),theIndigenousTourismNetworkofMexico(RITA),theWirraricaInterstateUnionofCeremonialCentersofNayarit,JaliscoandDurango,andtheUnionofSierradeJuarezCommunities,A.C.(UCOSIJ).

InNicaragua,activestakeholderengagementwasachievedthroughtheSESAandrelatedprocesses(e.g.,FGRMconstruction,socialcommunications).KeystakeholdersintheNorthernandSouthernAutonomousRegionsoftheCaribbeanCoast,thesub-regionofthecountrywhereMARENAexpectsmostofREDD+implementationactivitieswilltakeplace,wereconsultedinsevenpre-SESAmeetingswiththeobjectivetofeedintothepreparationofthenationalREDD+StrategyledbytheMinistryofEnvironmentalandNaturalResources(MARENA).Duringtheinitialsevenpre-SESAmeetings,theneedforadditionalawarenessraisingandtrainingaroundREDD+ontheCaribbeanCoastwasidentifiedandMARENAreviseditsSESAworkplansaccordingly.Consequently,anadditional23consultationworkshopswerecarriedout.ThesenotonlycoveredtopicsofstandardconcernforSESA,suchasforestgovernancestructuresatthenationalandsubnationallevels,butalsoothertopics,suchasimprovedforestmanagementpractices. InEthiopia,representativesofcivilsocietyorganizationsand“underservedcommunities”areactivelyengagedintheREDD+workinggroups,includingtheSESAtaskforce.ThetaskforceplayedacriticalroleinprovidingoversighttotheSESAprocessandthedevelopmentoftheEnvironmentalandSocialManagementFramework(ESMF)inEthiopia.TheCSOsandtheorganizationsrepresentingunderservedcommunitiesinEthiopiarepresentedintheTaskForceinclude:ClimateChangeForum(CCF)Ethiopia,EthiopiaEnvironmentalJournalistsAssociation,FarmAfrica,InitiativeforLivingCommunityAction,PastoralistForumEthiopia,andSOSSahel.Overthelastyear,localconsultationsweretargetedintheOromiaregion,thegeographicalareaproposedforanERProgramandactiveparticipationofCSOsandlocalcommunitiesatthelocal-level(i.e.,theKebeleandWoredalevels)wasnotable. TostrengthenpublicaccountabilitywithinemergingREDD+structuresinUganda,aself-selectionprocesshasbeenplannedtoselectCSOandIPrepresentativesforREDD+institutionalarrangementssuchastheREDD+Technical

WorkingGroup,SESATaskForce,etc.ThisprocessisbeingsupportedjointlybytheFCPFandtheUN-REDDProgrammeandisaimedatincreasingtherepresentativenessofCSOsandIPsinthesenationalREDD+structures. InLiberia,strongleadershipbyCSOsandtraditionalcommunitiesintheREDD+processhasbeenevident.TheongoingSESAprocesshasthusfarreceivedsupportfromlocalcommunities.Country-levelCSOsareintheforefrontintermsofstakeholderengagement,andtheyareactivelyparticipatinginthecommunity-basedconsultationactivities. InMozambique,emphasiswasplacedonstrategiccommunicationandpublicconsultationaspartoftheSESAprocess.Intotal,22publicconsultationswereheldandanumberofadditionalawarenessraisingactivitiescarriedout.District-andcommunity-levelconsultationswereimplementedinsevendistrictscoveringthedifferentregionsofthecountry.Atthenationallevel,asteeringcommitteewascreatedbynationaldecree,whichhascivilsocietyrepresentationandismeetingregularly.Tobetterengageregionalstakeholders,twoprovinciallevellandscape/REDD+Forumswereestablished.Consultationswereaccompaniedbyacomprehensivecommunicationsplan,whichincludedradio,TV,anonlinecartoon,pamphlets,andpolicybriefings. CivilsocietyactorsandIndigenousPeoplesrepresentativeshavebeenactivelyengagedinnational-andcommunity-levelactivitiesrelatedtoERProgramdevelopmentinanumberofcountries.Forexample,inNepalandVietnam,IPswereincludedinthegovernment’steamtaskedwithdraftingtheER-PIN.BothcountriesfurtherhaveoversightcommitteesforERProgramdevelopmentinplaceinwhichIPsarerepresented.IPshavebeeninstrumentalinprovidinginputanddraftingrelevantsectionsonconsultations,SESA,landtenure,andbenefitsharing.InDRC,CSOandIPplatformshavebeeninvolvedindraftingoftheMTRandR-PackageforDRCandarenowactivelyengaginginconsultationsonERProgramdesignintheMaïN’domberegion(seeBox3).

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BOX 3: EXAMPLES OF PROJECTS TO ENHANCE THE CAPACITY OF IP AND CSOS TO ENGAGE IN REDD+ PROCESSES

Nepal: Participation in REDD+ Decision-Making and Consultation of Indigenous Peoples and other Marginalized Forest Dependent Communities

FromJanuary2012toJuly2014,theNepalFederationofIndigenousNationalities(NEFIN)implementedacapacitybuildingprojectfinancedbytheFCPFIP/CSOCapacityBuildingProgrambasedonasetofREDD+themesthatwereidentifiedascrucialbyseveralIndigenousPeoples’communitiesinNepal.NEFINadoptedatwo-tieredimplementationapproach,developingacapacitybuildingandawareness-raisingprojectatthenationalandlocallevel(insixdistricts:Khotang,Sindhupalchok,Sankhuwashabha,Dolakha,DhadingandRolpa).TheultimateaimwastoenhancetheparticipationofindigenousandruralcommunitiesdwellinginTaraiHillandMountainareastoparticipateinREDD+Readinessdecision-makingprocessesandconsultation.TheInternationalWorkGroupforIndigenousAffairs(IWGIA)andtheIndigenousPeoples'InternationalCenterforPolicyResearchandEducation(TEBTEBBA)supportedthepreparationoftrainingmaterialsledbyNEFIN.Keyactivitiesincluded:

• Preparingtrainingmaterials,includingLand,ForestandIndigenousPeoples'RightsinRelationtoClimateChangeandREDDandFrequentlyAskedQuestionsonClimateChangeandREDD+andavideoonclimatechangeandREDD+.

• Holdingprojectmeetingsandeightcapacitybuildingworkshops,withagenderbalance,acrossthecountry.Altogether143womenand135menparticipatedinthevariousactivities,including278IndigenousPeoples’leaders,andjournalistsandCSOrepresentatives.

• NEFINorganizedaconsultationmeetingamongIndigenousPeoplesandtheSESAconsultants’

teamtopresentIndigenousPeoples’viewsonSESArelevantissues.

• DevelopingcasestudiesandarticlesonindigenousknowledgeandcustomaryinstitutionscontributingtoclimatechangeadaptationandmitigationinNepal.

Panama: Strengthening REDD+ Capacities of Guna Leaders, Women and Youth in the Gunayala ComarcaFrom2013-2014thePanama-basedorganizationFundaciónparalaPromocióndelConocimientoIndígena(FPCI)implementedaprojectfinancedbytheFCPFIP/CSOCapacityBuildingProgramtostrengthenREDD+capacityofGunaleaders,womenandyouth.Followingtheircustomaryconsultationprocesses,theprojectincludedaseriesofworkshopsandactivitiesonsocialandenvironmentalsafeguardsissuesatthecommunitylevelintheGunaYalaComarca.TheprojectenhancedtheunderstandingofREDD+issueswiththeIndigenousPeoples’community,notablytheparticipationofindigenouswomen’sparticipationinthevariouscapacitybuildingactivitiesandtheinformedparticipationofruralstakeholdersinthenationalREDD+ReadinessprocessinPanama.Keyactivitiesincluded:

• HoldingtwotrainingworkshopsonREDD+topics,includingclimatechange,adaptation,mitigation,withtheparticipationofGunaleadersandauthorities,andGunawomen,andyouth.

• Progressinginthestudyonsocialandenvironmentalsafeguards,whichisbeingimplementedfollowingcustomaryrules.

• Disseminatingprojectactivitiesatthelocallevel,throughcommunityactivitiesandlocalradio.

Amazon Region: Developing a Forest Carbon Map for Indigenous Territories and Protected Areas (Instituto del Bien Común)IndigenousTerritoriesandProtectedAreasaccountfor55percentofallcarbonstoredintheAmazon;however,logging,agriculture,mining,infrastructureprojectsandoildrillingincreasinglythreatentheselands,whichcover4.1millionsquarekilometersspanningnineSouthAmericancountries.FromSeptember2013toDecember2014,theInstitutodelBienComún(IBC),anon-governmentalorganizationbasedinPeru,developedanddisseminatedaForestCarbonMapforAmazonIndigenousTerritoriesandProtectedAreas.Theproject,partiallyfinancedthroughagrantmadefromtheForestCarbonPartnershipFacilities’capacitybuildingprogram,facilitatedthecollaborationbetweenanetworkofscientists,NGOnetworks,indigenousorganizationsandpolicyexpertsworkingonREDD+andstrengthenedforestcarbonmappingcapacitiesofrepresentativesoftheTechnicalSecretariatoftheAmazonlevelNGOCoordinadoradelasOrganizacionesIndígenasdelaCuenca(COICA)andrepresentativesofseveralCOICAmemberorganizations.ItalsoreinforcedthecentralityoftheroleandpositioningofIndigenousPeoplesandotherruralstakeholdersintheAmazonRegionnationalREDD+processes.

Subsequently,projectactivitiesincludedthepreparationofageneraloutlinetodeveloptheForestCarbonMapandaworkshopallowingthereviewoftheForestCarbonMapdesignforAmazonIndigenousTerritoriesandNationalProtectedAreasandadraftinformativedocumentdescribingtheapproach,methodology,andresultsoftheForestCarbonMapping.Thepeer-reviewedstudywasreleasedattheUNclimateconferenceinPeru(December2014)andwaswidelydisseminatedvianumerousinternationalmediacoveragearticles.

Kenya: Enhancing Indigenous and Local Community Consultation and Participation in Sustainable Forest Management

Theproject,implementedbytheKenyanIndigenousPeoples’organizationMainyoitoPastoralistIntegratedDevelopmentOrganization(MPIDO),enhancedindigenousandlocalcommunityconsultationandparticipationinsustainableforestmanagementandREDD+activities.TheprojectfacilitatedthepreparationofseveralstudiesaddressingcentralREDD+themesfromaKenyanIndigenousPeoplesperspective.Projectimplementationadoptedastrategicthematicapproachandidentifiedfourfocusareasforstudy:(a)landtenure,(b)benefitsharingarrangements,(c)governanceandinstitutionalframeworks,and(d)indicatorsonIndigenousPeoplesinthecontextofnationalREDD+design,implementationandmonitoring.Thestudieswereconductedbyateamofconsultants,whoarethemselvesmembersofIndigenouscommunitiesinKenyawithasharedculturalbackground,includinglocalknowledgeandlanguageofcommunitiesvisited,familiaritywithlocalgeographicalandpoliticaldynamics,andextensivecontactsandrelationshipswithinsomeoftheprojectsites.Keyactivitiesinvolved:

• ProvidebaselineinformationonlandtenurestatuswithinIndigenousterritories.

• DevelopingareportonIndigenousPeoples’REDD+benefitssharingandfinancingmechanismfromaKenyanIndigenousPeoples’perspective.

• ConductingananalysisoftheNationalREDD+strategiestoexaminetheextenttowhichIndigenousPeoples’issueshavebeenincorporated.Thisincludedareportanddocumentaryoncommunityengagement.

BOX 3: continued

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Output-levelindicator3.1.a:(ii)ExamplesofresourcesmadeavailabletoenableactiveparticipationofIP,CSOs,andlocalcommunitiesinnationalREDD+readiness

REDD+CountriesareincreasinglyrecognizingthevaluethatactiveparticipationofIP,CSO,andlocalcommunitiescanbringtonationalREDD+readiness. TheGovernmentofNepal,forexample,allocatedsignificantresourcesof$250,000fromtheirREDD+readinessgranttothenationalCSO/IPAlliancePlatformtoenableitsactivesupporttotheconsultationprocessunderthereadinessphase.TheCSO/IPAllianceallocatedthefundsonwardstoinvolvedIPandCSOorganizationsinanefforttoenhancecapacityatdecentralizedlevels. InFiji,Vanuatu,andThailandreadinessgrantresourceshavealsobeensetasidetosupportsimilareffortsoforganizingandstrengtheningofREDD+CSOPlatform.Output-levelindicator3.1.b:NumberofIPandREDD+countryCSOrepresentatives(men/womenand/oryouth)thathaveparticipatedandbenefittedfromFCPForganizedworkshops/trainingsonSESA,governance,MRVaspects/relatedaspectsofREDD+

FCPFobserversfromAfrica,AsiaandLACparticipatedinahigh-leveldialogueorganizedbytheWorldBankandattendedbyWorldBankGroupseniormanagement,includingtheWorldBankGroup’sPresident.ThismeetingfocusedonmechanismsfordeepeningIPinclusioninWorldBankprocessesforsustainabledevelopment.FCPFobservershavealsobeenactivelysupportedbytheFMTtoparticipateinotherinternationalprocessesandfora,liketheUNPermanentForumonIndigenousIssues,aswellasintheConferenceofPartiesmeetingsorganizedbyUNFCCC.

InFY15,FCPFobserversexpressedtheirappreciationoftheroletheFCPFhashadinbuildingatrustfulpartnershipbetweenobservers,countriesandtheFacilityitself,anditsroleinfacilitatinginclusionandparticipationofIPsatglobal,regional,andmostimportantly,nationallevel.

Output-levelindicator3.1.c:ExamplesofIPsandREDD+country-CSOrepresentationininstitutionalarrangementsforREDD+atthenationallevel

GovernmentsarepayingincreasingattentiontoeffectiveprocessesandinstitutionalarrangementsforengagementofIPsandcivilsocietyinnationalandsub-nationalREDD+planningandimplementation.ThisisnotonlybasedontheFCPF’scommitmenttosocialinclusion,butalsoincreasinglyaresultofpositiveexperiencesmadebycountriesthathaveledthewaywithinclusiveinstitutionalarrangementsandseenbenefits,suchasconstructivewaystopreventgrievance,ensureinputfromallstakeholders,andimprovetheoverallpublicperceptionofREDD+processes. Asaresult,IPsarenowrepresentedinmanynationalinstitutionalarrangementsforREDD+,suchasnationalREDD+technicalbodiesandsteeringcommittees.Inmanycountries,theyareactivelycontributingtotheplanninganddesignofREDD+readinessimplementationaswellasthedesignofREDD+pilotsandprograms.IncountrieswhereIPandCSOgroupsarenotyetrepresentedinthehighest-levelofnationalREDD+committees(typicallyattheministeriallevel),effortscontinuebeingmadebythesegroupsforpermanentinclusionintothesetop-levelcoordinationarrangements. Whilenotexhaustive,thecountriesthatareknowntohaveIPsandCSOsrepresentationaspartofnationalREDD+technicalbodiesand/ornationalinstitutionalarrangementsfor

REDD+includeCameroon,Chile,Colombia,CostaRica,DRC,ElSalvador,Fiji,Guatemala,Guyana,Honduras,Indonesia,Kenya,Mexico,Nepal,Nicaragua,Panama,Peru,RepublicofCongo,Thailand,Uganda,Vanuatu,andVietnam.InBhutan,Côted’Ivoire,Ethiopia,Ghana,Liberia,Madagascar,Mozambique,Nigeria,Uruguay,andTogo,CSOsandlocalcommunities(inthecaseofAfricancountries)arepartofthesestructures.

Output 3.2: Pilots have been successfully implemented on ways to sustain and enhance livelihoods and conserve biodiversity

Output-levelindicator3.2.a:NumberofcountrieswherestakeholderengagementplatformsproposedinRPPshavetakenupworkandmeetregularly

Themajorityofcountrieshaveestablishedorareintheprocessesofoperationalizingstakeholderengagementplatformsandassociatedinclusionprocessestodeepenparticipationandcollaborationwithawiderangeoflocal,subregional,andnationalstakeholdersrelevanttoREDD+.AnexampleisprovidedinBox5.

Output 4.1: Knowledge products and lessons from piloting of REDD+ in general and FCPF activities in particular are developed and disseminated, in accordance with global knowledge management and communication strategy and annual work plans

InFY15,theFCPFcontinuedtodisseminateknowledgeandlessonslearnedfromFCPFactivitiesthroughdigitalandprintplatforms.Thispastyear,theFCPFSecretariatlaunchedanewsletter,InsideFCPF,tosharetimelyupdatesonREDD+Countryactivities,FCPFdeadlines,knowledgeproducts,andimagesfromFCPFeventswithstakeholders.Thenewsletter,

producedquarterly,alsodrivestraffictotheFCPFwebsite,themainplatformforinformationandknowledgesharing.TheFCPFwebsite,whichcontinuestobeupdatedwithnewsfromtheSecretariatandcountryprograms,hadanincreaseinvisitsof14percentoverthepastfiscalyear.Inaddition,therewasa30percentboostinthevolumeofusersofthewebsiteoverthisperiodcomparedtothepreviousfiscalyear. TheFCPFalsoremainsengagedinpromotingitsactivitiesandknowledgethroughsocialanddigitalmedia.TheFCPFFacebookpagedramaticallyincreaseditsoutreachoverthepastfiscalyear,startingatunder200followerstosurpassing700followersoveronlya12-monthperiod.CertainpostsontheFCPFFacebookpagehavereachedover400readers.TheFCPFhasalsosharedlessonslearnedthroughonlinefeaturestoriesontopicsrelatedtonewprogramsselectedintothepipeline,engagementofIndigenousPeoplesinprogramdesignandthelandscapeapproach,amongothers.ThesestoriesarepromotedthroughtheWorldBank’scommunicationchannelsfocusedonClimateChange,EnvironmentandNaturalResourcesandAgriculture.Inaddition,theFCPFhasanactivepresenceontheWorldBank’sClimateChangeTwitteraccount(@wbclimate)whichhasover50,000followers.

Selected knowledge products in FY15 included:

InMarch2015,theFCPFhostedawebinarwiththreeexpertswhocollaboratedonastudyonthe“ForestCarbonAssessmentintheAmazon’sIndigenousandProtectedAreas.”TheworkwasledbytheAmazonianNetworkofGeoreferencedSocio-EnvironmentalInformation(RAISG)incollaborationwiththeWoodsHoleResearchCenter,COICA(CoordinationofIndigenousOrganizationsoftheAmazonRiverBasin)andtheEnvironmentalDefenseFund,andpartiallyfinancedthroughagrantfromtheForestCarbonPartnershipFacility.

BOX 4: IMPLEMENTATION OF THE FCPF CAPACITY BUILDING PROGRAM (CBP) FOR FOREST-DEPENDENT PEOPLES AND SOUTHERN CSOS

Implementation of the IP/CSO Capacity Building Program continued in FY15, with emphasis shifting to the start-up of the Program’s second phase. Significant progress was made on clarifying and following the processing steps within the World Bank for the six new grants (two per regional bloc) to be provided under this phase.

A workshop was organized in May 2015 in Washington, DC, to strengthen capacity of grant recipient organizations (previously referred to as “regional intermediary organizations”). The workshop helped recipients to: i) refine the design of their projects; ii) better reflect the regional context in their nascent work plans; and iii) understand project implementation arrangements for the projects more fully.

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, a self-selected group of PC members, the “FCPF Capacity Building Program Monitoring Group”, was established to monitor the FMT’s advances on the preparation and approval of grants under Phase 2. The FMT reports to the group on a quarterly basis.

Meanwhile, during FY15, 10 of the 12 active contracts under Phase 1 of the CBP were completed and closed. The two 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.

BOX 5: EXAMPLE OF A STAKEHOLDER ENGAGEMENT PLATFORM: MOBILIZING CIVIL SOCIETY ORGANIZATIONS FOR PARTICIPATION IN REDD+ ACTIVITY IN CAMEROON

The From March to December 2013, the REDD+ and Climate Change Platform of Cameroon (REFACOF) implemented a project financed by the FCPF IP/CSO Capacity Building Program to organize and mobilize civil society organizations from 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 on deforestation and forest degradation, sustainable forest management, conservation of forest and biodiversity, enhanced forest carbon stock, and social, environmental, and governance-related safeguards. The project allowed the REDD+ and Climate Change Platform to reach communities at the local level and engage community focal points for REDD+ and Climate Change related initiatives. Key achievements included:

• Organizing a repertoire of 331 civil society organizations engaged in REDD+ and Climate Change activities in Cameroon (including Indigenous Peoples organizations, women’s organizations, and youth organizations, among others).

• Setting community coordination structures in 10 regions in Cameroon, composed of 80 female and male coordinators.

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InApril2015,theFCPFjointlypublishedareport,“EarlyLessonsfromJurisdictionalREDD+andLowEmissionsDevelopmentPrograms,”withTheNatureConservancy.ThereportfeatureseightjurisdictionalREDD+/LEDprogramsdesignedtoreduceforest-relatedemissions(sixofthesejurisdictionshavebeenadmittedintotheFCPFCarbonFundpipeline).Thejointstudyfindsthatwithappropriateinvestmentandsupport,jurisdictionalREDD+/LEDprogramshavethepotentialtobecometransformationalmodelsofforest-friendlydevelopment. InMay2015theFCPFlaunchedareportonaforestgovernanceassessmentforREDD+implementationthroughapplicationofthePROFORforestgovernancetoolcarriedoutinLaoPDR.Thepublicationincludesbackgroundinformationontheknowledgeandexperiencefromimplementingtheforestgovernancediagnosticexerciseaspartofthecountry’sREDD-readinessprocess. InMay2015,theFCPFlaunchedaTechnicalDecisionSupportToolandassociatedTrainingMaterial,bothofwhichareavailablethroughtheFCPFwebsite.TheToolguidescountrieswiththedevelopmentofforestreferenceemissionlevels(emissionbaselines)andforestmonitoringcapacity.Morespecifically,itsupportsREDD+countrieswithmakingavarietyoftechnicalandpolicydecisionsandwithadvancingcapacitybuildingandtraining.TheREDD+DecisionSupportToolallowsuserstoexplorepolicy,methodologicalandtechnologicaloptionsandgaindeeperunderstandingwithasetofcomprehensivetechnicaltrainingmaterials.ThetoolboxisintendedtobeusedbyFCPFcountriesastheyconsiderkeydesignandtechnicalcomponentsoftheirnationalorsubnationalREDD+programs.ItprovidespracticalguidancebasedonexistingREDD+frameworksincludingtheUNFrameworkConventiononClimateChangetheFCPF’sCarbonFundMethodologicalFramework. InJune2015,theFCPFandUN-REDDProgrammejointlypublishedaGuidanceNoteonEstablishingandStrengtheningGrievanceRedressMechanisms,whichservestostrengthenin-countrycapacityforgrievanceresolutioninordertorespondtocontentiousissues,complaintsanddisputes,andprovidestoolstohelpcarryoutactivitiestoassessandstrengthengrievanceredressmechanismsduringthereadinessphase.

Output as per PMF 4.2: Participants actively engage in South-South learning activities

Output-levelIndicator4.2.a:NumberofS-Slearningactivitiesand/oreventsconnectingFCPFcountries

FromFebruary23-28,2015representativesfromgovernmentandprivatesectorinEthiopiaandMozambiquetraveledtoBrazilforaSouth-Southknowledgeexchangeonsustainableforestplantations.Thestudytripincludedmeetingsandlearningsessionswithgovernment,privatesectorandresearchinstitutionsonhowforestplantationscanpromoteruraldevelopmentandreducepressureonnativeforests.Thestudytouraimedto:

• Increaseparticipants’knowledgeonhowre/afforestationactivitiesandplantedforestscan

contributetopovertyreduction,focusingonsmallholdersinthetimbersupplychains,organizationofsmallproducerstoparticipateinplantationsactivities,extensionandsupportservicesandpublic-privatepartnerships;

• Increaseawarenessonthelatestadvancesonsilvicultureandtechnologiesonfast-growingspecieswithparticularemphasisonapplicabilityforsmallholderforestry;environmentalsustainabilityinforestplantation,includingtherelationshipbetweenforestplantationsandthereductionofpressureonthenativeforest;

• Enableparticipantstobringhomeskillsandtransferableknowledgeonpublicpoliciesandincentivestofosterforestplantationsbytheprivatesector(large,small,domesticandinternational)thatcouldbeappliedintheircountrycontextsandusedtoformulateconcreteactions;

• Provideparticipantswithknowledgeontoolstoaccesstofinance,smartsubsidiesandinnovativesourcesoffinancingforforestactivitiesandhowtocreateapositiveinvestmentclimateforforestactivitiesandwoodindustry;

• ToestablishandstrengthenlastingpartnershipswithBrazilianentitiesandagenciesworkingintheforestrysectorthatcanbesustainedafterthestudytour.

OnNovember4,2014aJointFCPF–UN-REDDProgrammeKnowledgeExchangeDaywasheldinthecontextoftheUN-REDDPolicyBoardandFCPFPCmeetingsinArusha,Tanzania.Theeventhelpedbuildcapacity,fosterSouth-Southknowledgeexchange,andpromotemutuallearningaspartoftheFCPF’sobjectivetodisseminateknowledgeonREDD+.Theknowledgedaybroughttogether150participantsandincluded:i)apanelsessiononcountryperspectivesoncoordinationofdifferentmultilateral,bilateral,andprivatefundingstreamsforREDD+,ii)atechnicalcapacitybuildingsessiononforestcarbonmonitoring,inparticularondesignofthereferenceemissionlevelandaforestmonitoringsystems,iii)severalparallelSouth-Southknowledgeexchangesessiononsixthematictopicsrangingfromsafeguardsapproachestopaymentforenvironmentalservicesschemes.

Output-levelIndicator4.2.b:TotalnumberofparticipantstoSouth-Southknowledgeexchangeactivitiesbycategory

InFY15,theFMT’sfocushasbeenonprovidingtargeted,country-tailoredsupport,training,andcapacitybuildingwithR-PackageaswellasERProgramdevelopment.InFY15,countriesemphasiswasmoreonadvancingprogramdevelopmentthanonrequestingSouth-Southexchanges.MorerequestsforSouth-SouthexchangesareexpectedtocomeinFY16.

Output 4.3: Strong visibility of REDD+ and FCPF is achieved

Output-levelIndicator4.3.a:Numberofneutral/positivementionsofFCPFandREDD+issuesindifferentkeymediaworldwideperXperiod

InthecontextofthebuilduptointernationalclimatenegotiationsatCOP21inParis,mentionsoftheFCPFinthemediahaveremainedconsistentandhavebeenrelatedtohowtheFCPFispilotingREDD+atscaleandputtingintopracticewhatisunderdiscussionintheinternationalpolicyforum.MediaattentionfocusedonadditionalselectionofER-PINsintotheCarbonFundpipelineaswellasgeneralinterestinemergingengagementandpartnershipbuildingwiththeprivatesector.

Output-levelIndicator4.3.b:NumberofnegativementionsofFCPFandREDD+issuesindifferentkeymediaworldwideperyear

CriticalmentionsoftheFCPFandREDD+issuesininternationalmediaworldwidehavedroppedfollowingtheapprovalofkeytechnicalandthematicguidance,suchastheMethodologicalFramework.SomenegativementionsoftheFCPFremainrelatedtosafeguardsforlandtenureandcarbonrights.TheFCPFSecretariathasrespondedwhennecessarytoinconsistenciesbetweenFCPFactivitiesandmediareports.

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FCPFREDD+COUNTRYPARTICIPANTS

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FY15 ANNUAL REPORT


REDD+ has a challenging agenda given its multi-sectoral and multi-stakeholder dimensions, and the large financial and capacity needs involved. It is important, therefore, that development partners come together to provide a package of financial and technical assistance to better serve their client countries.

UN-REDD Programme

InFY15,theFCPFandtheUN-REDDProgrammecontinuedtheircooperationinprovidingassistancetocountriestogetreadyforREDD+.Coordinationhasentailedjointcountrymissionsandsharingresponsibilityforfinancingreadinessactivities.Atthegloballevel,coordinationbetweentheFCPFandtheUN-REDDProgrammeinvolvesjointschedulingofgovernancebodymeetings,theharmonizationofprogrammaticdocuments,thecoordinationofanalyticalandcapacity-buildingefforts,andthejointdeliveryofsecretariatservicestotheREDD+Partnership.TheUN-REDDProgrammefurtherconsultedwiththeFCPFonits2016-2020UN-REDDProgrammeStrategy.InFY15,severalknowledgeactivitieswereplannedandcarriedoutjointly.Further,ajointKnowledgeDaywasorganizedinconjunctionwiththeUN-REDDPolicyBoardandFCPFParticipantsCommitteemeeting,thatbroughttogetherover150participantsandstakeholdersfrombothinitiativestojointlyreflectonprogressandachievementsmadewithREDD+readinessaswellasimplementationsincethetwoinitiativesbecameoperationalfiveyearsago.

Forest Investment Program

TheForestInvestmentProgram(FIP)supportsdevelopingcountryeffortstoreducedeforestationandforestdegradation,andpromotesustainableforestmanagementthatleadstoERandenhancementofforestcarbonstocks(REDD+).TheFIPfocusesonsizableinvestmentsin23countriesinordertoachieveeconomictransformationandgenerateglobalknowledge.TheFIPiscurrentlyactiveineightpilotcountries(Brazil,BurkinaFaso,theDRC,Ghana,Indonesia,LaoPDR,Mexico,andPeru),andadditionally14countrieshavebeenselectedintotheFIPinMay2015.TheFIPandFCPFareactiveinthefollowingcountries:Cambodia,Cameroon,Côted’Ivoire,Guatemala,Guyana,Honduras,Mozambique,Nepal,RepublicofCongo,Uganda,Zambia.

ImplementationatthecountrylevelisbasedonFIPinvestmentplansthathavebeendevelopedthroughacountry-ledprocess,thatbuildonFCPFreadinessorequivalentprocessesanddrawontheR-PPsandtheemergingREDD+strategies.CoherenceandcooperationacrossthedifferentFIPandFCPFactivitieshavebeenachievedespeciallyinDRC,Ghana,Indonesia,andMexico,asgovernmentsensurethatactivityplanningiscloselycoordinatedbetweenthetwoinitiatives.Atthesecretariatlevel,theFCPFisanobservertotheFIPgoverningbodyandhassharedpertinentinformationwiththeCommittee,forinstance,ontheFCPFReadinessAssessmentFramework.FIPhasequallyparticipatedinthePC19meetingandpresentedanupdateofimplementationactivitiesinFIPcountries,whicharealsosupportedbytheFCPFReadinessFund.TheFIPhasalsocontinuedtotakeadvantageoftheestablishedFCPFrosterofexpertsfortheindependentreviewofinvestmentplanspriortotheirendorsementbytheFIPSub-Committee.

BioCarbon Fund

TheBioCarbonFund(BioCF)isapublic-privatecarbonfund,operationalsince2004,thatpioneersprojectsthatsequesterorconservecarboninforest-andagro-ecosystems,mitigatingclimatechangeandimprovinglivelihoods.TheoverallgoaloftheFundistodemonstratethatland-basedactivitiescangeneratehigh-qualityemissionreductionswithstrongenvironmentalandsocio-economicbenefitsforlocalcommunities.Inthefirst-generationtrustfunds,about80percentoftheBioCF’sresourceswereearmarkedforafforestationandreforestationprojectsundertheCleanDevelopmentMechanism(CDM);theremainderwasallocatedtoREDD+andsustainablelandmanagementprojects(includingagriculture).BioCFprojectshavearangeofdifferentobjectives,includingfuelwoodproduction,timberproduction,andenvironmentalrestoration.Withthedevelopmentof10CDM-orVCS-approvedmethodologiesandavarietyofcapacityandoutreachactivities,theBioCFhasactivelypromotedthedevelopmentoftheforestcarbonmarketandpioneeredforestcarbontransactionsonthebasisoflocalknow-how.TheBioCFdelivered80-90percentofthecarbonassetstoits

Participants.MostofthecarbonassetswillbeusedtomeetcompliancetargetsundertheUNFCCC’sKyotoProtocol,whichendedin2012.

Leveraginglessonsandexperiencefromasuccessfultrackrecordonproject-basedcarbonfinanceintheland-usesector,theBioCFembarkedonanewinitiativeinFY13,theInitiativeforSustainableForestLandscapes(ISFL).TheISFLbuildsonthelessonsandexperiencefromasuccessful10-yeartrackrecordonproject-basedcarbonfinanceintheland-usesector.Themultilateralfacilitypromotesandrewardsreducedgreenhousegasemissionsfromthelandsector,includingREDD+,moresustainableagriculture,aswellassmarterland-useplanningandpolicies.ISFLwillhelpcountriesidentifyandpromoteclimate-smartagriculturalandlow-carbonland-usepracticesinselectedgeographicalareaswhereagricultureisamajorcauseofdeforestation.Theinitiativewillbuildaportfolioofjurisdictionalprogramsspreadacrossdiversegeographiesthathavesignificantimpactandtransformruralareasbyprotectingforests,restoringdegradedlands,enhancingagriculturalproductivity,andbyimprovinglivelihoodsandlocalenvironments.

TheISFLhasmadeprogresssinceitsinceptionin2013,establishingpolicies,guidelines,andprocessesessentialfortheadministrationoftheInitiative.Further,theInitiativehasidentified,selected,andopenedjurisdictionalwindowsaspartofitsportfolio.ThefirstjurisdictiontobeaddedtotheISFLpipelinewasOromia,Ethiopia.InFY15,theISFLalsoaddedaprograminZambia’sLuangwavalley.

REDD+ Partnership

DuringFY15,theFMTagainservedasSecretariatoftheREDD+Partnership.TheFMToversawthecompletionofkeyprioritiesoftheREDD+Partnership’s2014workprogram,includingorganizingthefinalREDD+PartnershipglobalmeetinginLima(November2014),contractingascopingpaperonpublicprivatepartnerships,andprocuringananalysisofthe2014datafromtheVoluntaryREDD+Database.AttheLimameeting,partnersdecidedtoclosetheREDD+Partnership,butoptedtocontinuetheinternet-basedVoluntaryREDD+DatabasefortwomoreyearsinordertocollectandpublishtransparentdataoninternationalpublicfundingforREDD+.Respondingtothisrequest,theFMTdevelopedadetailedworkplanandtwo-yearcontract,whichwasawardedtoFAO.TheFMTwillcontinuetomanageandprovidequalitycontrolforthecontractthroughout2015and2016,thusensuringthecontinuationofthedatabase.

Coordinating with other REDD+ Initiatives

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IssuesandChallenges

5.1. Disbursements

InFY15,therecenttrendofanaccelerationingrantdisbursementscontinued.The$16.4millioningrantsdisbursedduringFY15,representedanincreaseofover100percentcomparedtothepreviousyear.Inaddition,thenumberofnewreadinessgrantssignedinFY15increasedfrom22toatotalof35.Sixcountriesreachedmid-termstatusinthepastyearandarenowintheprocessofsigningadditionalgrantsof$5millioneach.Itisthereforeexpectedthatdisbursementwillcontinuetoincreasesignificantlyinthecomingyear. However,severalcountriesareyettosigntheirgrantagreementsandothersmaybenefitfromincreasedattentiontodisbursementtargets.TheFCPFwillcontinuetoassistcountriesinmeetingdisbursementtargetsbasedonasetofactionspresentedanddiscussedatPC16inDecember2013(refertoFMTNote2013-6).

5.2. Country-level M&E Frameworks and Readiness Reporting

Comparedtothepreviousyear,countryprogressreportinginlinewiththeFCPF’sMonitoringandEvaluationFrameworkimprovedinFY15.Allcountrieswithsignedgrantagreementsreportedonprogress.WhilecountriesappliedthePMF’snewreportingformat,thequalityofthereportingcontinuestovarywidely. Anumberofcountries(i.e.,Ghana,Kenya,Liberia,andNepalamongstothers)candrawontheirnationalM&EsystemsforrobustmonitoringdataofnationalREDD+readinessandemergingREDD+programs.AnationalM&Esystemhelpscountrieskeeptrackofactivitiesandresults,aswellasidentifyandaddressgaps.However,attheoverallportfoliolevel,progresswiththedevelopmentofnationallevelM&Eframeworkshasbeenslow. InFY15,theFMTcontinuedtoreachouttocountriestoofferguidanceandsupportforpreparationofM&Eframeworks,butdemandhasremainedlow. TheindependentevaluationoftheFCPFinFY16mayprovideanopportunitytoreviewtheFCPF’sM&EFramework,considertherelevanceofallcriteriaandindicatorsinthecurrentPMFandidentifybarriersforcountryreporting.

5.3. Operationalizing Private Sector Commitments

InFY15,theFCPFengagedwithprivatesectorcompaniesinthecontextofemergingERProgramstoidentifyopportunitiesforfacilitatingpartnershipsbetweenREDD+countrygovernmentsandcompaniesthatproduce,trade,orbuyagriculturalcommoditiesthatimpactonforests.Oneofthemainchallengesencounteredwasadisconnectbetweencompanycommitmentsandpledgesmadeatheadquartersandtherealityindecentralizedcompanyofficesontheground.Insomeinstances,localcompanyrepresentativeswerenotreadytocommittodeforestation-freeproducts.Tobridgethisgap,theFCPFhasreachedouttobothcompanyheadquartersandlocalcountryofficesinparallelinanefforttoachievesharedobjectives.TheFCPFisfurtherexploringpartnershipopportunitiesbyfocusingonexistingsustainableagricultureactivitiesandinitiativesbycompaniesintheERProgramarea.

5.4. Leveraging Investment Finance

ThecostofERProgramimplementationmayoftenexceedpotentialcarbonpaymentsthatcountriescangeneratefromverifiedemissionreductions.CountriesareawarethatREDD+isnotservingtoprovidefullcostrecoveryoftheimplementationcostofREDD+activitiesthatacountrymaycarryout.Assuch,countriesareincreasinglyfocusingonidentifyingandaligningvariousstreamsofupfrontinvestmentfinancetocoverimplementationcost.TheFCPFhasbeensupportingcountriesinidentifyingpotentialsourcesofinvestmentfinance.However,additionalsources,includingthroughinnovativefinancingmechanismsmaybeneeded.InFY16,theFCPFwillcontinuetoprovideguidanceoninnovativefinancingoptionsaswellassupportcountrieswithleveragingtraditionalinvestmentfinance.

5The 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.

Grant disbursement increased by 100% in FY15 compared to FY14

100%

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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+.

FCPF

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FY15 ANNUAL REPORT


However,trackingofassumptionsisimportanttogaugeunforeseenconsequencesincasetheassumptionsdidnotholdtrue.Referencetotheimpact,outcomeandoutputwheretheassumptionwasreferencedintheLogFrameof

theM&EFrameworkisincludedinColumn1ofthetable.AsecondtablewithnewrisksthatwerepreviouslynotidentifiedintheLogframeisalsoincluded.

Level at which assumption is referred to in LF

Original assumptions from LF

Current level of risk

Explanation of risk rating

Mitigation measure proposed

Impact1.1Outcome1Output2.3Outcome3Outcome4Output4.3

GlobalclimatechangenegotiationsunderUNFCCCremainsupportive.

Low TechnicalaspectsonREDD+havebeenagreedonandtheremaininguncertaintyistheinclusionofREDD+inanewclimateagreement.

TheriskassociatedwiththisassumptionisbeyondthedirectcontroloftheFCPF.TheFCPFcontinuestoremainresponsiveandtoinformthenegotiationprocess.

Outcome1Outcome3Outcome4

TheincentivesprovidedbyREDD+schemesaresufficient.

Low TheriskrelatestoincentivesforcountriestoadvancetotheReadinessPackage,stakeholderengagement,andknowledgedisseminationofexperiences.SufficientresourcesareavailabletocountriesthroughtheFCPF,otherbilateralandmultilateralresourcestoadvancetotheR-Package,whilemaintainingadequatelevelsofstakeholderengagement.

Nomitigationmeasureisrequiredatthisstage.

Outcome1 ForpurposesoftheReadinessFund,submissionoftheR-PackagebyREDD+Participantsisvoluntary.

N/A − Theassumptiondoesnotrequiremonitoring.

Outcome1 TherearenoextraordinarycircumstancesinthecountrythatpreventsubmissionofRPs.

Medium Attheportfoliolevel,somecountrieshavesocio-politicalcircumstancesthatcouldslowsubmissionoftheR-Package.

Nomitigationmeasureisrequiredatthisstageattheportfoliolevel.

MonitoringofAssumptionsandRisk

6ThefollowingtablepresentsasnapshotofassumptionsidentifiedintheLogFrameagainstkeyimpacts,outcomesandoutputs,thelevelofriskassociatedwiththeseassumptions,andtheproposedmitigationmeasureasrelevant.Anassumptioninmostcasesindicatesareas/circumstancesthatarebeyondthecontrolofthegovernanceframeworkoftheFCPF.

Across the portfolio completion of SESAs and ESMFs is still low.

Risk:

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FY15 ANNUAL REPORT







Output1.2 Plansandtargetswererealisticallyassessedbytechnicalexpertsbeforeapprovalinviewofexistingbaselinecapacitiesandparticipantcountries’contexts.

Low R-PPsofall45activecountrieshavebeenassessedbythePC.Attheportfoliolevel,signingofgrantagreementshassignificantlyincreasedwith35signedgrants.ItisexpectedthatallgrantagreementswillbesignedbyendofFY16,withtheexceptionofspecialcircumstances.

DPsareactivelypursuingsignedgrantagreements.

Output1.3 Thepoliticalandsocio-economiccontextintheParticipantcountriesremainsstableenoughovertheimplementationperiodsothatthecapacitybuiltremainsinplace.

Low Theoverallriskattheportfoliolevelassociatedwiththepoliticalandsocio-economiccontextforreadinessimplementationremainslow.

ThediversityofREDD+countriesintheportfolioisabuilt-inmitigationmeasure.

Outcome2 Interestinperformance-basedpaymentsremainshighenough.

Low Theinterestofdonorsinperformance-basedpaymentsschemeshasbeenhighinthereportingperiod.Interestinperformance-basedpaymentsbyREDD+countriesisevidentfromtheadditionalER-PINsandearlyideaspresentedtotheCF.

Theriskwillbemonitoredcontinuouslyintheforthcomingperiods.

Output2.2 AlargeenoughnumberofcountrieshavethecapacitytomeetallstandardsandFCPF/DPadministrativeprocessesdonotputundueburdenontheCFoperation.

Medium/High

TheassumptionisinrelationtothelikelihoodofcountriesenteringtheCFportfolio.TheriskratingissubjectiveandbasedontheearlyfeedbackfromREDD+countriesinthecourseofthedevelopmentoftheMF.

PilotingoftheMFinthefirstfewREDD+countriesisproposedandwillprovidearealisticassessmentofcountrycapacitytomeetthestandards.

Output2.4 FiveREDD+countrieshavesignedERPAsby2015.

High ThesuccessfulselectionofER-PDswillindicatethetimelinesforERPAsigningandprogramimplementation.ThetermoftheCarbonFundhasbeenextendeduntil2025toallowadequatetimeforERProgramdevelopmentandimplementation.

Thebusinessprocess(underpreparation)isrealistic.

Output3.1 RelevantguidelinesintheCommonApproacharefollowedandprocessessuchasSESAareactuallyimplementedincountries,providingforareceptiveenvironment.

Low/Medium

TheSESAprocessisstartingtoberolledoutinreadinessimplementationinseveralcountries.

Attheportfoliolevel,somestakeholdergroupsidentifiedaneedtoenhancein-countryunderstandingoftheSESA.Amongotherefforts,theFMThasheldregional-level,socialinclusionworkshopstomitigatethisgapandensureproperSESAimplementation.






Output4.2 Eventsmanageddirectlybycountries(notorganizedbyFMTitself)aretimelyandeffectivelyplannedtofeedintotheprocessoflearningandinvolvekeystakeholders.

Medium ThereisdiversityintheFCPFportfolioonhoweventsaremanagedatthecountrylevel.Assessmentisbasedonfeedback.BroadfeedbackreceivedbytheFMTfromcountrystakeholderssuggeststhatprocessesincountryhavebeeninclusive.

Countriescontinuetoenhancecommunicationandstakeholderengagementcapacitythroughreadinessgrantsandotherbilateralsources.

New risks/previously unidentified risks that have a bearing on annual work planning and intervention logic


1.Weakprocurementcapacityhasdelayedthestartofreadinessimplementationinsomecountries.

Readinessgrantsarerecipient-executedandaresupportingthehiringofprocurementexpertsand/ortheprocurementtrainingneedsofrelevantstaffofthenationalREDD+coordinationoffice.

2.ReducedinterestofprivatesectorinREDD+atthecountrylevel CountriesencourageadialoguewithrelevantprivatesectorcompaniesinthedesignofERProgramsandREDD+strategypreparation.

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7.1. Financial Overview of the Facility

CommittedfundstotheReadinessFundandtheCarbonFundoftheFCPFattheendofFY15totalalmost$829million,with$373millioncommittedtotheReadinessFundand$456millioncommittedtotheCarbonFund(seeTables6and12).Bothfundsarewell-resourcedwithcommittedfundingmorethanadequatelycoveringcurrentfundingneeds. FundbalancesattheendofFY15total$723million,madeupof$276millionintheReadinessFundand$447millionintheCarbonFund,withcashbalancesof$227millionintheReadinessFundand$351millionintheCarbonFund(seeTables5and11). ThevalueofgrantallocationstoREDD+CountriesattheendofFY15was$211million(Table10)whilstsignedGrantAgreementsrepresentfirmcommitmentsofover$143million.GrantdisbursementsfromtheReadinessFundhavecontinuedtoacceleratesuchthatattheendofFY15theywere$61million,includingtransferstoDeliveryPartnersotherthantheWorldBankforonwardtransfertoREDD+Countriesof$26.6million(Table5).ThatendofFY15figureequatestoanearly50percentincreaseofthecumulativegrantdisbursementfigureinasinglefiscalyear.

7.2. The Readiness Fund

7.2.1. Fund Balance

Table5showsthesummaryfinancialstatementforthefundfromtheopeningofthefundtotheendofFY15.TheReadinessFundbalanceattheendofFY15isahealthy$276million,withacashbalanceof$227million.Thedifferenceof$49millionisrepresentedbyoutstandingcontributionsfromtheEuropeanCommissionandNorwayasshowninTable6. TotalDonorContributionsreceivedtodateare$324million.Investmentincomeof$9.9millionbringsthetotalreceiptstodatetonearly$334million.TotaldisbursementstotheendofFY15arenearly$107millionandconsistof$45.7millionincashdisbursements,$34.4millioningrantstoREDD+countries,and$26.6millionindisbursementstoDeliveryPartnersforReadinessGrantstocountries. TotalnewfundsintotheaccountduringFY15amountedtoabout$29million,madeupofdonorcontributionsof$27million

(seeTable6)andinvestmentincomeof$2millionearnedontheaccountbalance.TotaldisbursementsonacashbasisduringFY15were$27million,madeupofcashexpendituresof$6.9million,grantdisbursementsofapproximately$16.4million,anddisbursementstoDeliveryPartnersforgrantsof$3.8million.

7.2.2. Funding Sources

a)DonorContributions

Table6presentsthecommittedcontributionstotheReadinessFundasattheendofFY15.ThefundcontinuedtogrowinfinancialtermsduringFY15,withtotalcontributionsof$373millionattheendofFY15comparedtoatotalasattheendofFY14of$357million.TheadditionalcommitmentfromGermanyduringFY15ofalmost$24millionrepresentsagoodportionofthisincrease.Howeverthisgainwasoffsetslightlybyunfavorableexchangeratesaffectingoutstandingcontributions. Intermsofcash,theReadinessFundreceiveddonorcontributionsof$27millionoverthepastyear.Thiswasmadeupof$23.8millionfromGermany,and$3.2millionfromFinland.ThisbroughtthetotalcashcontributionstotheendofFY15to$323.6million.Thisleavesoutstandingcontributionsof$49millionfromexistingsignedagreementstobepaidbyNorway($47.8million)andtheEuropeanCommission($1.1million)intotheReadinessFundinthecomingyears.Theseoutstandingcontributionsrepresentagreedphasedcontributionsspreadoutoveranumberofyears.

b)InvestmentIncome

Table5showsInvestmentIncomefiguresoverthelifeofthefund.Amountspaidintothetrustfund,butnotyetdisbursed(thefundbalance),aremanagedbytheInternationalBankforReconstructionandDevelopment(IBRD),whichmaintainsapooledinvestmentportfolio(thePool)forallofthetrustfundsadministeredbytheWorldBankGroup.BecauseallParticipationAgreementswithCarbonFundParticipantsindicatethatanyinterestgeneratedbyprepaidcontributionsshallbechanneledtotheReadinessFund,theReadinessFundreceivesanallocatedshareofinvestmentincomefromthisPoolwhichconsistsofinterestforboththeReadinessFundandtheCarbonFund.Thetotalinvestmentincomedepositedintothe

Term of Carbon Fund

extended to

2025

FY15FinancialReportoftheFacility 7ThevalueofgrantallocationstoREDD+CountriesattheendofFY15wasabout$211millionwhilstsignedgrantagreementsrepresentfirmcommitmentofover$143million.

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ReadinessFund(ontheReadinessandCarbonFundbalance)uptotheendofFY15was$9.9million.DuringFY15,investmentincomeonthecombinedReadinessandCarbonFundbalances

amountingto$2.0millionhasbeencreditedtotheReadinessFund.

Table 5: FCPF Readiness Fund Summary Financial Statement FY15 (in $ thousands)

Description Total FY15 FY14 FY13 FY12 FY11 FY10 FY09

Beginning Balance 224,870 195,830 189,999 165,804 77,695 50,945

DonorContributions 323,631 27,014 54,004 30,009 31,538 94,880 32,290 53,895

InvestmentIncome 7,889 2,008 1,960 897 924 732 821 547

InvestmentIncome(transferredfromtheCarbonFund)

2,023 2,023

Total Receipts 333,543 29,022 57,987 30,906 32,462 95,612 33,111 54,442

CashDisbursements 45,742 6,914 9,373 8,752 5,383 6,421 5,402 3,497

GrantDisbursements* 34,400 16,380 8,173 4,923 2,884 1,082 959

DisbursementstotheDPsforGrants 26,600 3,800 11,400 11,400

Total Disbursements 106,742 27,093 28,946 25,075 8,267 7,503 6,361 3,497

Fund Balance (cash) 226,801 226,801 224,870 195,830 189,999 165,804 77,695 50,945

plusOutstandingContributions 48,934

275,735

Fund Balance

Table 6: FCPF Readiness Fund Donor Contributions as of end of FY15 (in $ thousands)

Participant Name Total Outstanding* FY15 FY14 FY13 FY12 FY11 FY10 FY09

Australia 23,892 6,330 7,997 9,565

Canada 41,360 41,360

Denmark 5,800 5,800

EuropeanCommission 5,172 1,120 1,364 2,688

Finland 23,196 3,230 5,261 5,749 8,956

France 10,340 5,136 592 4,612

Germany 76,766 23,784 13,913 13,113 25,956

Italy 5,000 5,000

Japan 14,000 4,000 5,000 5,000

Netherlands 20,270 7,635 7,635 5,000

Norway 116,740 47,814 38,727 8,801 16,398 5,000

Spain 7,048 7,048

Switzerland 8,214 8,214

UnitedKingdom 5,766 5,766

UnitedStatesofAmerica 9,000 4,000 4,500 500

Committed Funding 372,565 48,934 27,014 54,004 30,009 31,538 94,880 32,290 53,895

7.2.3. Funding Uses

a)CashDisbursements

Cashdisbursementsrepresentallnon-grantdisbursementsandtotal$45.7millionfromtheopeningofthefundtotheendofFY15.Table7showstheannualexpendituresbyactivity,whilstTable8comparestheapprovedbudgetwiththeactualexpendituresbyactivityforFY15. AstheFCPFcontinuesprogressongrantimplementation,annualexpenditureshavepredictablyincreasedinareaswithafocusoncountrysupport.ThisisthecasefortheREDDMethodologySupport,CountryAdvisoryServicesandCountryImplementationSupportactivities.Totalcashdisbursementsforthesecountryfocusedactivitiesoverthelifetimeofthefundrepresent75percentofcashdisbursements,whilstadministrativecostsrepresentundersixpercentoftotalcashdisbursements.Combined,thecashdisbursementsforthesecountryfocusedactivitiesof$34.2millionwiththegrantdisbursementsof$34.4millionandthedisbursementstoDeliveryPartnersforgrantsof$26.6million,thesecountryfocuseddisbursementsrepresent89percentoftotaldisbursementsof$106.8million.AdministrativeandSecretariatcosts(whichincludethecostofallParticipantsCommittee(PC)andParticipantsAssembly(PA)meetings,includingtravelcostsforREDD+countryparticipantsandsomeobservers)overthelifetimeofthefundof$13.2millionrepresentjust12percentoftotaldisbursementsof$106.8million,whilstadministrativecostsalonerepresentlessthanthreepercentoftotaldisbursements.RefertoTables5and7fordetails. TheFY15budgetfortheReadinessFundnetofSharedCostsof$10.3millioncomparestothetotalReadinessFundexpendituresfortheyearof$6.9million(seeTable8).Thefiscalyearthereforeclosedwithspendingat67percentofbudgetandanunderspendofover$3.4million. ExpendituresonReadinessTrustFundAdministrationcostswere80percentofbudget.TheseadministrativecostsreflecttheworkofallWorldBankstaffinvolvedinfundmanagement,

contributionsmanagement,accounting,specificlegaloperationsrelatedtothefacilityasawhole,andotherservicesrequiredbytheReadinessFundTrustee,includingmakingthearrangementsfortheMonitoringandEvaluationFrameworkfortheFCPF.Theselowerthananticipatedexpensesreflecttheteam’sgainingefficienciesasstabilitygrowsaroundkeyroutinetasks. FCPFSecretariatexpenseswere$1.3million,or76percentoftheactivitybudgetof$1.7million.Expendituresincludedthestandardcostsforprogrammanagement,organizationoftheannualPAandPCmeetings,andtravelcostsforREDD+countriesandsomeobserverstothosemeetings.Increasingly,knowledgeandlearningeventsonREDD+andotherkeypartnermeetings(e.g.,theUN-REDDProgrammeorREDD+Partnership)arejointlyorganizedtomaximizetheuseofparticipanttime.FCPFSecretariatcostsincludethecostsofhostingandmaintainingtheFCPFwebsite,communicationstoFCPFstakeholders,andtranslationofFCPFmaterials.Partofthe$400,000underrunisduetoavideocommunicationsprojectthatwasputonholdaswellaslowertranslationcostsduetofewerthananticipatedlargetechnicaldocuments(R-Packages)requiringthatcostlyservice. WiththebudgetforREDDMethodologySupportactivitiessetatalmost$1.3millionforFY15,andtotalexpendituresat$1.1million,spendingwas85percentofFY15plans.CostsreflectthelowTechnicalAdvisorySupport(TAP)expenses(consultingcontracts,travel,andmeetingcosts)againduetofewerthananticipatedR-PackagescomingtotheParticipantsCommitteerequiringreview.Theunderspendof$186,000isalsoduetodelaysintheREDD+ProgramCostAssessmentwork,whichhasbeenbudgetedforandwillbecompletedinFY16. TheexpensesrecordedforCountryAdvisoryServicescametoabout$1.9million,orabout92percentofthe$2.1millionoriginallybudgetedinFY15.ThemajorityofthesecostscamefromFacilityManagementTeam(FMT),forestry,andsocialdevelopmentstaffadviceandguidancetoREDD+countrieson

Table 7: FCPF Readiness Fund Cash Disbursements (in $ thousands)

Activity % of Total Total FY15 FY14 FY13 FY12 FY11 FY10 FY09

ReadinessTrustFundAdministration 6% 2,683 327 397 404 356 366 362 471

FCPFSecretariat 23% 10,555 1,299 1,515 1,690 2,056 1,685 1,321 989

REDDMethodologySupport 21% 9,722 1,071 1,796 1,842 999 1,921 1,266 827

CountryAdvisoryServices 20% 9,185 1,881 2,342 1,750 1,073 545 793 801

CountryImplementationSupport 33% 15,293 2,676 3,730 3,213 1,701 1,904 1,660 409

IPandCSOProgram 6% 2,587 480 751 1,089 267

TotalReadinessFund(includingCarbonFundSharedCosts) 50,027 7,735 10,532 9,988 6,452 6,421 5,402 3,497

LessCarbonFundSharedCosts -9% (4,285) (821) (1,159) (1,236) (1,069)

Total Readiness Fund 100% 45,742 6,914 9,373 8,752 5,383 6,421 5,402 3,497

*Includes$599,694ofBank-executedgrantdisbursements(FY15$6,159).

*Amountsmayvaryduetoexchangeratefluctuations.

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theirprograms.ExpendituresinFY15includedspecificworkonGovernanceandGrievanceRedressMechanismsaswellasSESAandESMFRiskManagement. CostsforCountryImplementationSupporttotaled$2.7million,or69percentoftheplannedbudget.ThisspendingcoversthedirectassistanceofDeliveryPartnercountryteamstoREDD+countries,includingtechnicalassistance,grantsupervision,andassessmentsprovidedtothePC. Overall,thelargestshare($1.6million)oftheReadinessFundunderspendcontinuestobeduetodelaysinimplementingthenewCapacityBuildingProgramforIndigenousPeoples,CivilSocietyOrganizationsandotherforestdwellers(theIPandCSOProgram).TheprincipalreasonforthesedelaysisthechangetoanewprocessandstructurewherebyIPandCSOCommunitiesadministertheCapacityBuildingProgramthemselvesthroughsixRegionalIntermediaries(threeforIPgroupsandthreeforCSOgroups).ThebudgetforthisProgramforFY15of$2.1millionincludessupportthroughcontracts/grantsof$1.6million.Theunspentbalanceoncontracts/grantswillbecarriedovertofuturefinancialyearssincethelifeoftheprogramwasextendedtoFY17asagreedatPC17inLima,Peru.

b)SharedCosts

AspartoftheapprovaloftheReadinessFundbudget,theFCPFCharterindicatesthatthePCshallmakedecisionsonallSharedCostsforactivitiesthatcutacrossandbenefitboththeReadinessandCarbonFunds.Inpractice,theSharedCostshavetypicallyincludedFCPFSecretariatandREDD+MethodologySupportactivities,suchasthecostsoftravelandexpensesforREDD+countriestoattendtheParticipantsAssemblyandPCmeetingsandtheworkoftheTAPs. PursuanttotheCharter,theReadinessFundpays65percentandtheCarbonFundpays35percentofSharedCosts,unlessthePCdecidesotherwise.ThePCapprovedresolutionswaivingcostsharingthroughtheendofFY11(toreflectthefactthattheCarbonFundwasonlyfullyoperationalasofMay2011)andpaying100percentoftheSharedCostsfromtheReadinessFund.Inaddition,thePCagreedthatcostsharingatthe65/35levelwouldcommencefromFY12onward.However,thereisanimportantcaveatinResolutionPC/8/2011/8approvedinMarch2011,inthatthePCagreedtoalifetimecapof$12millionontheSharedCoststhatitwillchargetotheCarbonFund.ThisresolutionrespondedtotheconcernsofseveralexistingandpotentialCarbonFundParticipantsthatanupwardlimitbeplacedonsuchcostsgiventhatthePCotherwisemakesalldecisionsregardingtheircompositionandannualapprovals. SharedCoststransferredtotheCarbonFundforFY15wereabout$200,000underbudgetat$0.8million.SharedCostsoverthelifetimeoftheFacilityuptotheendofFY15areontracktoremainwellunderthelifetimecapof$12millionastheycurrentlystandat$4.3million(seeTables7and8).

c)GrantDisbursements

AnimportantaspectoftheReadinessFundisthatitmakesavailablegrantfundingtocountries—thegrantsarenowupto$3.8millionperREDD+country—insupportofcountry-ledreadinesswork.TheREDD+countriesmanageandutilizethegrantsforREDD+activitiesandexpenses.ThesearecountedasdisbursementsinWorldBankfinancialstatementsonlyaftertheREDD+countrycompletesreimbursementfromthegrantresources.BytheendofFY15,26ReadinessPreparationGrantsweredisbursing—morethandoublethefigureatendFY14.SignedFormulation,ReadinessPreparation,andAdditionalFunding(ofupto$5million)grantagreements,representfirmcommitmentsofover$143million. GrantdisbursementsfromtheReadinessFundhaveacceleratedaspredictedandattheendofFY15were$61million,includingtransferstoDeliveryPartnersotherthantheWorldBankforonwardtransfertoREDD+countriesof$26.6million(seeTable5). Grantdisbursements,excludingthosethroughDeliveryPartnersotherthantheWorldBank,totalmorethan$34.4millionattheendofFY15,acontinuedexponentialincreaseonpreviousyears.GrantsdisbursedduringFY15were$16.4million,representinganincreaseofover100percentonthepreviousyear.Ofthetotalgrantdisbursementstodateofapproximately$34.4million,morethan$20millionofthesedisbursementshavebeenmadeinAfrica.ThedetailsofthegrantdisbursementsareprovidedinTable9. Inaddition,disbursementstoDeliveryPartnersforgrantsof$26.6millionrepresentsevenReadinessPreparationGrantsof$3.8million,threeeachinFY13andFY14andonemoreinFY15.

Table 9: FCPF Readiness Fund Grant Disbursements (in $ thousands)

Description Total FY15 FY14 FY13 FY12 FY11 FY10

AFRICA

BurkinaFaso

Cameroon 1,047 476 379 134 3 55

Coted'Ivoire 728 728

DemocraticRepublicofCongo 5,732 2,202 1,161 1,381 797 14 177

Ethiopia 1,552 694 258 400 100 100

Ghana 3,386 1,204 1,270 312 400 200

Kenya 170 170

Liberia 1,458 682 289 305 107 75

Mozambique 1,849 851 911 87

RepublicofCongo 2,538 1,244 481 237 381 108 87

Togo 344 344

Uganda 1,500 1,334 (14) 140 40

AFRICA subtotal 20,304 9,760 4,749 2,856 1,567 694 679

LATIN AMERICA & CARRIBEAN

Chile 300 300

Colombia 200 66 134

CostaRica 2,446 1,431 479 375 22 139

ElSalvador 192 42 98 52

Mexico 665 665

Nicaragua 1,009 431 378 77 123

LATIN AMERICA & CARRIBEAN subtotal 4,812 2,827 899 550 241 156 139

EAST ASIA & PACIFIC

Indonesia 3,165 167 1,233 1,247 518

LaoPDR 478 305 123 50

Thailand 200 163 37

Vanuatu 313 186 106 21

Vietnam 1,586 1,085 501

EAST ASIA & PACIFIC subtotal 5,741 1,742 1,734 1,516 576 123 50

SOUTH ASIA

Bhutan 637 637

Nepal 2,906 1,414 792 500 109 91

SOUTH ASIA subtotal 3,543 2,051 792 500 109 91

Total Grant Disbursements 34,400 16,380 8,143 4,923 2,884 1,082 959

Table 8: FCPF Readiness Fund Cash Disbursements for FY15 (in $ thousands)

Activity BudgetActual

Expense Variance

Expense Rate

(%)

ReadinessTrustFundAdministration

410 327 83 80

FCPFSecretariat 1,719 1,299 420 76

REDDMethodologySupport

1,257 1,071 186 85

CountryAdvisoryServices

2,050 1,881 169 92

CountryImplementationSupport

3,880 2,676 1,204 69

IPandCSOProgram 2,065 480 1,585 23

TotalReadinessFund(includingCarbonFundSharedCosts)

11,381 7,735 3,646 68

LessCarbonFundSharedCosts

(1,042) (821) (220)

Total Readiness Fund 10,339 6,914 3,425 67

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FY15 ANNUAL REPORT


7.2.4. Financial Commitments over the Longer Term

SincethetermoftheReadinessfundrunsuntilDecember31,2020,theannualbudgetsneedtofitintoalong-termfinancialplanningframeworkconsistentwithWorldBankpoliciesforthefinancialmanagementoftrustfunds.ThesepoliciesgenerallyrequirefundstobefullysetasideforcommitmentsmadebytheparticipantsaswellasformeetingthefiduciaryobligationsenteredintobytheWorldBankasTrustee. Inordertoplanresourcesoverthislonger-timehorizon,thePCissuesresolutionsfromtimetotimetoestablishfundingprioritiesandcommitmentsforthecomingyears.Thesecommitmentsareconsidered“notional”whenthePChassetasideorallocatedfinancialresourcesoftheReadinessFundthatarenotyetsignedintoformalgrantagreementsorcontracts.Theyareconvertedto”full”commitmentsoncethegrantagreements(orvendorcontracts)aresignedbyrecipientsand/orbytheWorldBankasTrusteeoftheReadinessFund,orexpendituresaremade. Asnotedearlierinthereport,fullsignedcommitmentsamounttoalmost$143million.However,therehasbeenaconsiderablyhigherlevelofnotionalgrantcommitmentsmadebytheFCPFtoREDD+countries.Table10providesamorecompletepictureofthelevelofthesenotionalcommitments,togetherwiththenecessarynotionalcommitmentstooperatethefundforitsfullterm,includingthedirectimplementationsupportcostsandassociatedcountryservicescosts. Thislong-termfinancialplanincludescommitmentsfortheoperationoftheSecretariatbytheFMTandthetrusteeroleoftheWorldBankoverthefulltermoftheReadinessFund—reflectingthefactthattheFacilityisexpectedtobefullyactivethroughthattime. Table10showsthelong-termnotionalcommitmentsorplannedusesofthefund.Thetableshowsthat,asoftheendofFY15,notionalcommitmentsoffullgrantstoall45activecountriesandtheestimatedassociatedcostsofthefundduringitslifetimeamounttonearly$280million. TotalcommittedfundingtotheReadinessFundasofJune30,2015,is$372.6million(seeTable6).ThisleveloffundingisthereforeadequatetomeetthenotionalcommitmentsoffullReadinessPreparationGrantsofupto$3.8milliontoall45activeselectedREDD+countries,togetherwiththeestimatedcostsofthefundduringitslifetime,includingtheestimatedassociatedcountryservicesforthosecountries.Fundsarealsoavailabletoprovideadditionalgrantsofupto$5millionforupto22countriesshowingsignificantprogress.

7.3. The Carbon Fund

7.3.1. Fund Balance

Table11showsthesummaryfinancialstatementforthefundfromtheopeningofthefundtotheendofFY15.TheCarbonFundbalanceattheendofFY15isahealthy$446million,withacashbalanceof$351million.Thedifferenceof$96millionisrepresentedbyoutstandingbalancesonpromissorynotes,andoutstandingcontributionsfromGermanyandtheUnitedKingdom.

TotalDonorContributionsreceivedtodateare$369.5million.TotaldisbursementstotheendofFY15are$9.1million,madeupsolelyofcashdisbursements.TheCarbonFundhasonlybeenfullyoperationalsinceMay2011,sotherearenopaymentsforemissionreductionstodate. TotalreceiptsduringFY15were$32.1million,allfromdonorcontributionsfromGermany(seeTable12). AllParticipationAgreementswithCarbonFundParticipantsindicatethatanyinterestgeneratedbyprepaidcontributionsshallbechanneledtotheReadinessFund.Forthisreason,thereisnoinvestmentincometoreportfortheCarbonFund.

Table 10: Summary of Long-Term Sources and Uses of Readiness Funding as of June 30, 2015 (in $ millions)

Explanation of which Totals

Committed Funding 372.6

Committed Uses for Funds

Commitments(grants)toREDD+countries(47@$3.8million) 178.6

Additionalgrantfundingto8Countries(CostaRica,DRG,Ghana,Indonesia,Liberia,Mexico,RepublicofCongo,andVietnam)forREDD+countriesthatdemonstratesignificantprogressonreadiness 40

LessgrantstoREDD+countrieswhodidnotsubmitR-PPsbyPC14(2@$3.8)1 (7.60)

Net Grant Commitments 211

Administrative, Operations, and Country Support 83.5

FY09–FY15Actualcosts 47.7

FY16–FY21Projectedcosts 33.8

ReserveforDeliveryPartnercapacityfordisputeresolution 2.0

Total Uses 294.5

Estimated Reserve: Committed funding less Total Uses 78.1

Proposed Commitments Per country Totals

Additionalgrantcommitmentsforthosethatdemonstratesignificantprogressonreadiness($5milliongrantplus0.3millionforsupportcostspercountryfor14 additionalcountries(totalof22countries) 5.3 74.2

Total Potential Additional Uses 74.2

Total Surplus 3.9

1.Bolivia,Gabon.

Table 11: FCPF Carbon Fund Summary Financial Statement FY15 (in $ thousands)

Description Total FY15 FY14 FY13 FY12 FY11 FY10 FY09

Beginning Balance 316,474 293,275 122,283 86,390 24,700 20,356

DonorContributions 369,503 32,108 27,280 171,866 36,912 71,800 4,181 25,356

InvestmentIncome(transferredtoReadinessFund)

(2,023) 901 520 256 346

Total Receipts 369,503 32,108 25,257 172,767 37,432 72,056 4,527 25,356

CashDisbursements 9,109 2,846 2,058 2,117 1,539 366 183

ERPayments

Total Disbursements 9,109 2,846 2,058 2,117 1,539 366 183

lessPromissoryNotebalances (9,569) 5,089 342 (10,000) (5,000)

Fund Balance (cash) 350,826 350,826 316,474 293,275 122,283 86,390 24,700 20,356

plusOutstandingPromissoryNotes 9,569

plusOutstandingContributions 86,554

Fund Balance 446,949

Table 12: FCPF Carbon Fund Donor Contributions as of end of FY15 (in $ thousands)

Participant Name Total Outstanding* FY15 FY14 FY13 FY12 FY11 FY10 FY09

Australia 18,393 5,658 12,735

BPTechnologyVentures 5,000 5,000

Canada 5,015 5,015

EuropeanCommission 6,709 362

France 5,000 5,000 6,347

Germany 126,244 15,904 32,108 27,280 6,556 15,443 21,125 3,819 4,009

Norway 171,310 161,310 10,000

Switzerland 10,796 10,796

TheNatureConservancy 5,000 5,000

UnitedKingdom 88,590 70,650 17,940

UnitedStatesofAmerica 14,000 4,000 10,000

Committed Funding 456,057 86,554 32,108 27,280 171,866 36,912 71,800 4,181 25,356

*Amountsmayvaryduetoexchangeratefluctuations.

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7.3.2. Funding Sources

Table12presentsthecommittedandpledgedcontributionstotheCarbonFundasattheendofFY15.WhiletheFundcontinuedtoenjoygreatfinancialhealthduringFY15,exchangeratefluctuations(astrongerUSD)affectingoutstandingcontributionsfromGermanyandtheUnitedKingdomdecreasedthevalueoftotalcontributionsto$456millionattheendofthefiscalyearcomparedtoatotalasattheendofFY14of$470million. Intermsofcash,theCarbonFundreceiveddonorcontributionsof$32.1millionoverthepastyearfromGermany.ThisbroughtthetotalcashcontributionstotheendofFY15to$370million,leavingtwooutstandingcontributionsof$15.9millionand$70.7millionfromexistingsignedagreementstobepaidrespectivelybyGermanyandtheUnitedKingdomintotheCarbonFundinthecomingyears.Theseoutstandingcontributionsrepresentagreedphasedcontributionsspreadoutoveranumberofyears.

7.3.3. Funding Uses

Cashdisbursementstotal$9.1millionfromtheopeningofthefundtotheendofFY15.Table13showstheannualexpendituresbyactivity,whilstTable14comparestheapprovedbudgetwiththeactualexpendituresbyactivityforFY15. ThetotalcashdisbursementsfromtheopeningofthefundtotheendofFY15of$9.1millionaremadeupof$3.0millionadministrationcosts,$1.8millionofProgramDevelopmentcosts,and$4.3millionofSharedCosts(seeTable13). ThetotalCarbonFundexpendituresfortheyearof$2.8millioncomparestothefinalbudgetfortheCarbonFund,includingSharedCosts,of$7.2million.Thefiscalyearthereforeclosedwithspendingat40percentofbudget—anunderspendofmorethan$4.3million.RefertoTable14fordetails.

ExpendituresforCarbonFundAdministrationcostswereoverbudgetby11percent.TheseadministrativecostsreflecttheworkofallWorldBankstaffinvolvedinfundmanagement,contributionsmanagement,accounting,legal,andotherservicesrequiredbytheCarbonFundTrustee,includingashareofthecostsofthedevelopmentoftheMonitoringandEvaluationFrameworkfortheFCPF.ExtensiveworkbytheLegalteamas

Table 13: FCPF Carbon Fund Cash Disbursements (in $ thousands)

Activity Total FY15 FY14 FY13 FY12 FY11 FY10

CarbonFundAdministration

3,038 741 626 652 470 366 183

ProgramDevelopment

1,785 1,283 273 229

SharedCosts 4,285 821 1,159 1,236 1,069

Total 9,109 2,846 2,058 2,117 1,539 366 183

wellasextendedteamsupporttofinalizetheERPAGeneralConditionsaccountsforthisoverspend. ProgramDevelopmentcostswereunderspentagainstbudgetbyalmost$4.2million,makingupmostoftheCarbonFundunderspendforFY15.ThebulkoftheunderspendonProgramDevelopmentcostswasrelatedtothe$650,000allocationsmadetoprogramsenteringtheCarbonFundpipelineandsigningaLetterofIntent(LoI).ThebudgetfortheseallocationswasmadeupoftheestimatedunspentallocationtothefivecountriesthatwereinvitedtojointheCFPipelineinFY14plusfivemore$650,000allocationsforcountriesthatcouldbeinvitedinFY15.ThoseFY14inviteesareCostaRica,DRC,Ghana,MexicoandNepal.Thefiveadditional$650,000allocationswereintendedforcountriesthatwereanticipatedtopresentER-PINsinFY15,tobeapprovedonacase-by-casebasisbyCFParticipants. OfthecountriesselectedintoCarbonFundpipeline,onlythosethatsignaLetterofIntent(LoI)gainaccesstothe$650,000allocationsforER-PDdevelopment.AsoftheendofFY15,oftheelevencountriesselectedintothepipelineoftheCarbonFund,onlyeighthavesignedLoIs,thusreleasingthe$650,000ofER-PDDevelopmentfunds.Ofthe$4.5millionbudgetedfortheseallocationsinFY15,onlyabout$740,000wasspentinFY15,representinganunderspendofapproximately$3.8million. Asexplainedearlier,SharedCostsaredirectlyrelatedtotheReadinessFundexpensesintwokeycrosscuttingareas:FCPFSecretariatandREDDMethodologySupportcosts.TheexpenditureasaresultofspendingintheReadinessFundis$220,000belowthebudgetof$1.0million,anexpenseratioof79percent.

7.3.4. Financial Commitments over the Longer Term

DivergingfromtheReadinessFund,thelifeoftheCarbon

FundwasextendedtoDecember2025bytheCarbonFundParticipantsatCF12(ResolutionCFM/12/2015/1)toallowforminimalERPAtermsofatleast5yearsaccommodatingalongerthananticipatedprogramdesignphase.AsoutlinedintheReadinessFundsection,theannualbudgetsneedtofitintoalong-termfinancialplanningframeworkforeachfundthatisconsistentwithWorldBankpoliciesforthefinancialmanagementoftrustfunds.ThesepoliciesgenerallyrequirefundstobefullysetasideforcommitmentsmadebytheparticipantsaswellasformeetingthefiduciaryobligationsenteredintobytheWorldBankasTrustee.Thelong-termfinancialplanpresentedatCF13inWashingtoninApril2015indicatesthatnomorethan$420millionwouldbeavailableforthepurchaseofemissionreductions.

7.4. Budget Approval Process

ThebudgetsforboththeReadinessFundandtheCarbonFundarebasedontheWorldBank’sfiscalyear(beginningJuly1)andareapprovedannuallyinaccordancewiththeFCPFCharter.TheParticipantsCommittee(PC)isresponsibleforapprovaloftheannualbudgetfortheReadinessFundandtheSharedCostsoftheFacility,whilsttheparticipantsoftheCarbonFundareresponsibleforapprovaloftheannualbudgetfortheCarbonFundasaseparatetrustfund. Todate,thePChasapprovedeightbudgetsfortheReadinessFundforFY09-FY16,alongwithsomerevisionstothosebudgetsduringeachfiscalyear.FiveannualbudgetshavebeenapprovedfortheCarbonFund(FY12-FY16).InformalguidancewassoughtbytheFacilityManagementTeam(FMT)fordevelopmentalexpenditurespriortothattime(beforethefundbecamefullyoperational).

Table 14: FCPF Carbon Fund Cash Disbursements for FY15 (in $ thousands)

Activity BudgetActual

Expense VarianceExpenseRate (%)

CarbonFundAdministration

665 741 (76) 111

ProgramDevelopment

5,457 1,283 4,174 24

SharedCosts 1,042 821 220 79

Total 7,164 2,846 4,318 40

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FY15 ANNUAL REPORT


Specific, measurable, attainable, relevant, time-bound (SMART) indicators are measured for each impact, outcome and output in the M&E Framework.

SMART

ResultsMeasurementReportingFramework 8As 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.

Impact/Outcome/ Output and Relevant Indicators

Expected #/Target Year

Current (as of end FY15) Traffic Light

Impact I.1. The FCPF has contributed to the design of a global regime under or outside UNFCCC that provides incentives for REDD+

Indicatorsforimpacts1.1to1.5notyetapplicable.Impactlevelindicatorswillbeassessedatthetimeoftheindependedevaluation

Seesection4forexamplesofprogress.

Impact I.2. Reduced emissions from deforestation and forest degradation from FCPF, especially CF portfolio countries

Notyetapplicable

Impact I.3. FCPF has catalyzed the creation of recognized global standards for REDD+

Notapplicabletarget

Seesection4forexamplesofprogress.

I.4. FCPF has catalyzed investment in REDD+ (CF, and grants) Notyetapplicable Seesection4forexamplesofprogress.

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+

Notyetapplicable Seesection4forexamplesofprogress.

Outcome 1. Efforts successfully undertaken by countries with FCPF support, to achieve emission reductions from deforestation and/or forest degradation, and to benefit from possible future systems of positive incentives for REDD+ (Readiness Fund)

OutcomeIndicator1.A.NumberofReadinessPackagesendorsedbyPC 2R-packagesby2014,8R-Packagesby2015,20+R-Packagesby2018

1R-package

Output1.1.ReadinessAssessmentFrameworkisagreeduponanddisseminated

Indicator1.1.Existenceofpublishedassessmentframeworkonreadinesspackage

AssessmentFrameworkpublishedfollowingPC14adoption

Completed

Output1.2.CountriesdemonstrateanadequateplantoachievepreparednessforREDD+funding

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FY15 ANNUAL REPORT





Indicator1.2.a.NumberofR-PPsendorsedbyPC 30+R-PPsby2015

45

Indicator1.2.b.NumberofReadinessPreparationGrantagreementssigned 30+signedgrantagreementsby2015

35

Output1.3.CountriesprogressadequatelyonimplementationoftheirR-PPandGrantAgreements

Indicator1.3.a.Numberofmid-termprogressreportspresentedbycountriesthatfollowagreedreportingstandardsandarepresentedinatimelymanner

20+by2015,25+by2018

9

Indicator1.3.b.PercentageofcountriesthatareachievingplannedmilestonesaccordingtoapprovedReadinessPreparationgrant(>$3.4million)

Atleast60%ofcountrieshaveperformancethatissatisfactoryorabove

GRMsforFY15notfullyavailableattimeprint

Indicator1.3.c.Percentageofcountriesthatareoverallachievingplannedmilestonesforsubcomponent—aspercountryannualreportingscale

By2015,50%ofcountrieshaveperformance“fur-therdevelopmentrequired”in50%ofsubcomponents

66%ofcountrieshaveperformancethatissatisfactoryorabove

Indicator1.3.d.PercentageofcountrieswithadisbursementratethatisinlinewithagreedReadinessPreparationgrant(>$3.4million)disbursementplansofgrantagreement(upto10%variancewithplans)

60%(ofcountrieswithsignedgrantagreements)

9/35or26%ofcountries

Outcome 2. Selected FCPF countries demonstrate key elements (carbon accounting, programmatic elements and pricing) of performance-based payment systems for emission reductions generated from REDD+ activities with a view to ensuring equitable benefit sharing and promoting future large-scale positive incentives for REDD+ (Carbon Fund)

NotyetapplicableasnoERPAhasbeensigned

Output2.1.Standardsandpreparationsinplaceforhigh-qualityERProgramsdiscussedandendorsedbyCFParticipantsand/orPC

Indicator2.1.NumberandtypesofstandardsandmanagementtoolsdiscussedandendorsedbyCFparticipantsand/orPCforERprogramsincluding:

2.1.a.MethodologicalframeworkandPricingApproach FullydevelopeddraftbyCF7andfinalversionen-dorsedbyCF8

MFendorsedatCF8

2.1.b.Businessprocesses(ER-PIN,ERPD,ERPA) FullydevelopeddraftbyCF7andfinalversionen-dorsedbyCF8

Businessprocessdefined




2.1.c.Legaldocuments(GeneralConditions,ERPAtermsheet) FullydefinedERPATermSheetdraftbyPC14andGeneralConditionsforERPAendorsedbyPC16

TermSheetisen-dorsedatPC14;GeneralCondi-tionsendorsedatPC18

Output2.2.CountrieshaveenteredintheportfoliooftheCF

Indicator2.2.a.NumberofearlyideasorERProgramspresentedbycountriestotheCF

10by2015 24earlyideas,11ER-PINs

Indicator2.2.b.NumberofREDDcountriesthathavesignedERPA 5by2015 0(8LOIssigned)

Output2.3.Increasedlevelsofprivatesectorinvestmentforincentivizing,testing,andsupportingup-scalingofERactivities

Indicator2.3.a.NumberofprivateparticipantsinCF 2newprivatesectorparticipantsby2014

Targetisnolongerrelevant.Newapproachforprivatesectorengagementatprogramlevel

Output2.4.ERProgramsarebeingimplementedinatimelymanner NotyetapplicableasnoERPAhasbeensigned

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+

Indicator3.A.DesignofnationalREDDstrategies,monitoringsystemsandERProgramsaddressesindicatorsforenhancementoflivelihoodsoflocalcommunitiesandforbiodiversityconservation

AllnationalREDD+strategies,monitor-ingsystemsandERprogramsincor-porateindicatorsrelatedrelatedtobiodiversityconservationandforestcommunitylivelihooddevelopment

Seesection4forexamplesofprogress

Indicator3.B.ActualexamplesontheinherentsocialandbiodiversitybenefitsofREDD+andhowtheyareusedtoinformREDD+agendaandtoscaleupresults

InternationalREDD+agendaby2017isinformedbydocumentedresultsfromERPrograms


Output3.1.EnhancedcapacityofIPsandCSOstoengageinREDD+processesatthecountrylevel

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FY15 ANNUAL REPORT





Indicator3.1.a.(i).Numberandtypeofexamplesofin-countryREDD+actionswhereIPsandCSOsandlocalcommunitiesparticipateactively

Variousnewex-amplesexistwithstrongevidenceofIPandCSOactiveparticipationandbroadcommunitysupportinREDD+programs/readi-nessby2015


Indicator3.1.a.(ii).ExamplesofresourcesmadeavailabletoenableactiveparticipationofIPs,CSOs,andlocalcommunitiesinnationalREDD+readiness

Examplesexistwithevidenceofre-sourcesbeingmadeavailablethroughnationaland/orbilateralsupporttoIPsandCSOnetworkstoenableactiveparticipationinnationalREDD+readiness


Indicator3.1.b.NumberofIPandREDD+countryCSOrepresentatives(men/womenand/oryouth)thathaveparticipatedandbenefittedfromFCPForganizedworkshops/trainingsonSESA,governance,MRVaspects/relatedaspectsofREDD+

Atleast20menand20womenand/or20youthreps.participatedand/ortrainedpercountry,inaminimumof15participantcoun-triesby2015


Indicator3.1.c.ExamplesofIPandREDD+countryCSOrepresentationininstitutionalarrangementsforREDD+atthenationallevel

ExamplesinallREDD+ParticipantCountries,ofinsti-tutionalarrange-mentsfornationalREDD+readinesswhereIPsandCSOsarerepresented

32countries


Output3.2.Pilotshavebeensuccessfullyimplementedonwaystosustainandenhancelivelihoodsandconservebiodiversity

NotyetapplicableasnoERPAhasbeensigned

Indicator3.2.a.NumberofcountrieswherestakeholderengagementplatformsproposedinRPPshavetakenupworkandmeetregularly

AllcountriesthathavesignedReadinessGrants


Outcome 4. Knowledge gained in the development of the FCPF and implementation of Readiness Preparation Proposals (under the Readiness Fund) and Emission Reductions Programs (under the Carbon Fund) broadly shared, disseminated and used by international REDD+ practitioners

Indicator4.A.Numberofnewcountries/stakeholdersrequestingtobecomeFCPF:-Observers-Members

Anumberofnewrequeststobecome:-country

observers-country

members

0countriesinFY15

General Conditions for ERPA endorsed.

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FY15 ANNUAL REPORT





Indicator4.B.Examplesofutilizationof/orreferencetoFCPFknowledgeproducts Anincreasingnumberofex-amplesexistby2015andremainsstableafterwardsuntil2020


Output4.1.KnowledgeproductsandlessonsfrompilotingofREDD+ingeneralandFCPFactivitiesinparticulararedevelopedanddisseminated,inaccordancewithglobalknowledgemanagementandcommunicationstrategyandannualworkplans


Output4.2.ParticipantsactivelyengageinSouth-southlearningactivities ShiftinFY14tofocusoncountry-tailoredsupport

Output4.3.StrongvisibilityofREDD+andFCPFisachieved

4.3.a.Numberofneutral/positivementionsofFCPFandREDD+issuesindifferentkeymediaworldwideperXperiod

Increaseinneutralandpositivemen-tionsworldwide—TBDinworkplans

Yes

4.3.b.NumberofnegativementionsofFCPFandREDD+issuesindifferentkeymediaworldwideperyear

Decreaseofnegativementionsworldwide

ImprovementsonFY14

The cornerstone for success on REDD+

and low-carbon land use will be ownership at the highest political level.

70 FOREST CARBON PARTNERSHIP FACILITY

Acknowledgments

PhotoCredits

Photoscourtesyof:CatherineSear,FrankaBraun,KarinKaechele,KatieO’Gara,NicholasSoikan,NinaDoetinchem.

DesignbyCorporateVisions,Inc.

The World Bank1818 H Street, NWWashington, DC 20433, USA

www.forestcarbonpartnership.org

forestcarbonpartnership.org...acronyms 5 foreword 7 1. general introduction. 9 2. program objectives...

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