international tropical timber organization forest ... · 9/20/2012 1 international tropical timber...

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International Tropical Timber OrganizationForest Financing and Recent Developments – ITTO’s Experience

OLI in Support of UNFF

Rome, 19-21 September 2012

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2012 - International Tropical Timber Organization (ITTO) 2

International Tropical Timber Organization (ITTO)Status of Tropical Forests

Tropical forests remain most vulnerable

to deforestation, degradation,

encroachment, over-harvesting and

illegal harvesting

Forests cover 30% of

world’s land area

World’s total forest area continues to

decline; albeit at a slower rate

Critical regions having net loss mainly in the tropics:

• Africa

• South America

• Oceania

• Coastal America

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International Tropical Timber Organization (ITTO)Background Information

Background Information:

• International, intergovernmental organization

• Established and functions under the International

Tropical Timber Agreements (ITTAs)

• Administers and supervises operations of ITTAs

• Operationalized in 1986 with headquarters in

Yokohama, Japan

• International Tropical Timber Council (ITTC),

Committees and Subsidiary Bodies, Secretariat

headed by Executive Director

• Current membership of 62 countries

o 37 consumer members including EU

o 25 producer members

Overarching Objectives:

• To promote the expansion and

diversification of international

trade in tropical timber from

sustainably managed and

legally harvested forests

• To promote the sustainable

management of tropical timber

producing forests (ITTA, 2006)

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International Tropical Timber Organization (ITTO)Operational Work

• ITTA• ITTO Action Plan• ITTC Decisions• ITTO Biennial Work Programme (BWP)• ITTO Thematic Programmes

• Policy consultation, deliberation & development

• Policy research & studies

• Normative work – Guidelines, Criteria, Indicators & Manuals

• Monitoring, assessment and reporting

• Communication and outreach materials

• ITTO Fellowship Programme

POLICYWORK

STRATEGIC POLICY ACTIVITIES

PRE-PROJECTS& PROJECTS

• Relevant, topical & urgent issues

• Formulated & approved under ITTO BWP or ITTC decisions

• Country driver: initiation, implementation & ownership

• 6 months project cycle

• TP calls for proposals

• Address beneficiary needs & priorities

• Grant funding

• 150 projects on-going engaging more than 500 local full time professionals

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International Tropical Timber Organization (ITTO)Financial Accounts & Source of Funds

• Voluntary Contributions• Common Fund for Commodities• Regional and Institutional Financial Institutions• Other Sources

ITTO Financial Accounts

• Assessed contributions• of Members

Source of funds

• Voluntary Contributions • Interest Incomes• Resources from other

private/public sources• Other sources

Administrative Account

Article 19, ITTA,1994, 2006

Special Account

Article 20, ITTA, 1994, 2006

• Project (& Pre-Project) Sub-Account

(earmarked voluntary contributions)

• Thematic Programmes Sub-Account

(un-earmarked voluntary contributions)

Bali Partnership Fund Account

Article 21, ITTA,1994, 2006

• Administration of ITTA, 2006• Basic Administrative Costs

(50:50)• Core Operational Costs

(80:20)

For financing the implementation of approved activities, pre-projects and

projects

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International Tropical Timber Organization (ITTO)Project Cycle

ITTO Project

Cycle

Regular

Project Cycle

Thematic

Programme

Cycle

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International Tropical Timber Organization (ITTO)Project Cycle

Identification/

Formulation

Submission

Appraisal

Approval

Funding

Inception

Implementation

Monitoring & Evaluation

Completion

Closure

ITTO Project Cycle

The ITTO project cycle consists

of the various phases through which

a project moves from first

conception to completion

ITTO Manual for Project formulation (under revision)

ITTO Manual for Project Monitoring, Review, Reporting

and Evaluation

Manual on Standard Operating Procedures for

ITTO Project Cycle(under development)

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International Tropical Timber Organization (ITTO)Thematic Programmes

Tropical Forest Law

Enforcement,

Governance & Trade

Reducing Deforestation and Forest

Degradation and Enhancing Environmental

Services in Tropical Forests

Industry

Development and

Efficiency

Trade and Market

Transparency

Community Forest

Management and

Enterprises

ITTO’s Thematic Programmes

TFLET

1

REDDES

2

CFME

3

TMT

4

IDE

5

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International Tropical Timber Organization (ITTO)Thematic Programme Cycle

Call for proposal

Formulation/Submission

Appraisal

Selection

Funding

Inception

Implementation

Monitoring & Evaluation

Mid-Term Evaluation

(TP Performance)

Completion

Thematic Programme (TP) Cycle

The TP cycle consists of

various phases through which a

project/pre-project/activity moves

from first conception to completion

Manual for Project Formulation

Including a study on the impact

/performance of TP

Manual for Project Monitoring, Review,

Reporting and Evaluation

Manual on Standard Operating

Procedures

Thematic Programme

Sub-Account

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International Tropical Timber Organization (ITTO)ITTA 1983 – Voluntary Contributions From Member Countries

Voluntary Contributions ReceivedFrom Member Countries 1985-1996

Contribution Source Amount

Member Countries 127,360,120.00

Other Sources 1,859,651.00

Total 129,219,771.00

Member Countries Contributions = 15 Countries & EU

Other Sources Contributions = Organizations, Associations & Private Sectors

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International Tropical Timber Organization (ITTO)ITTA 1983 – Voluntary Contributions Received from member countries

Donor Amount

Japan 103,223,931.00

Switzerland 8,579,502.00

U.S.A. 5,991,816.00

Netherlands 2,744,316.00

Denmark 1,685,176.00

UK 1,258,553.00

Norway 930,406.00

Sweden 927,136.00

Union 677,689.00

France 529,900.00

Australia 501,360.00

Austria 170,000.00

Canada 76,109.00

Finland 54,226.00

Korea 10,000.00

total 127,360,120.00 Other donors = Norway, Sweden, Union, France, Australia, Austria, Canada,

Finland & korea

0.99%

1.32%

2.15%

3.04%

4.70%

6.74%

81.05%

100.00%

0% 25% 50% 75% 100%

UK

Denmark

Netherlands

Other Donors

U.S.A.

Switzerland

Japan

total

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International Tropical Timber Organization (ITTO)ITTA 1983 – Voluntary Contributions Received from other sources

Donor Amount

Ito Yokado Corp. 661,852

CFC 592,919

JLIA 402,489

Asahi Woodtec Co 85,763

Ferris University 56,628

JPMA 30,000

UCBT 30,000

total 1,859,651

1.61%

1.61%

3.05%

4.61%

21.64%

31.88%

35.59%

100.00%

0% 25% 50% 75% 100%

JPMA

UCBT

Ferris University

Asahi Woodtec Co

JLIA

CFC

Ito Yokado Corp.

Total

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International Tropical Timber Organization (ITTO)ITTA 1994 – Voluntary Contributions From Member Countries

Voluntary Contributions ReceivedFrom Member Countries 1997 - 2012

Contribution Source Amount

Member Countries 186,332,658.00

Other Sources 8,361,672.00

Total 194,694,330.00

Member Countries Contributions = 18 Countries

Other Sources Contributions = Organizations, Associations & Private Sectors

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International Tropical Timber Organization (ITTO)ITTA 1994 – Voluntary Contributions Received from member countries (1997-2012)

0.70%

1.01%

1.89%

2.21%

4.82%

8.79%

10.63%

13.50%

56.45%

0% 25% 50% 75% 100%

Australia

U.K.

Others

Netherlands

Norway

U.S.A.

Other Member Donors

Switzerland

Japan

Total

Other member donors = Germany, Korea, Finland, France, Denmark, China,

Belgium, New Zealand, Canada & Sweden

Donor Amount

Australia 1,303,776.00

U.K. 1,886,818.00

Others 3,518,317.00


Norway 8,983,029.00

U.S.A. 16,377,408.00

Other Member Donors 19,800,716.00


Japan 105,192,363.00

Total 186,332,658.00

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International Tropical Timber Organization (ITTO)ITTA 1994 – Voluntary Contributions Received from other sources (1997-2012)

Donor Amount

European Union 4,992,761.00

CFC 1,121,544.00

Private 838,165.00

Marubeni/ERM 569,754.00

Abott-Solvay (for CITES) 326,806.00

Seven & I Holdings 299,196.00

INDENA SAS (for CITES) 106,515.00

TNC 70,000.00

UNEP 16,931.00

Friends of Iwokrama, USA 10,000.00

FAO 10,000.00

Total 8,361,672.00

2.55%

3.58%

3.91%

6.81%

10.02%

13.41%

59.71%

100.00%

0% 25% 50% 75% 100%

Others

Seven & I Holdings

Abott-Solvay (for CITES)

Marubeni/ERM

Private

CFC

European Union

Total

Others = INDENA SAS (for CITES), TNC, UNEP, Friends of Iwokrama USA & FAO

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International Tropical Timber Organization (ITTO)ITTA 1994 – Voluntary Contributions Received

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

$20,000,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

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International Tropical Timber Organization (ITTO)ITTA 1994 – Voluntary Contributions Received From Major Donors (2007-2012)

Donor 2007 2008 2009 2010 2011 2012-7

Japan 6,007,612.00 5,581,380.00 5,884,317.00 4,021,725.00 3,206,071.00 3,547,355.00

Switzerland - - 2,000,000.00 1,500,000.00 700,000.00 -

USA 1,000,000.00 1,100,000.00 1,050,000.00 1,115,956.00 900,000.00 -

Netherlands 1,480,000.00 23,914.00 - - 315,000.00 -

UK - 53,000.00 486,780.00 462,600.00 - -

Australia 52,500.00 95,000.00 - 386,608.00

Norway 47,030.00 188,508.00 3,863,958.00 102,940.00 4,260,002.00 -

Korea 50,000.00 37,006.00 52,993.00 40,000.00 20,000.00

Germany - - - 120,393.00 - 715,973.00

China - - - - - -

Total 8,637,142.00 7,078,808.00 13,338,048.00 7,323,614.00 9,421,073.00 4,669,936.00

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International Tropical Timber Organization (ITTO)ITTA 1994 – Voluntary Contributions Received From Japan

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

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International Tropical Timber Organization (ITTO)Thematic Programme (TP) Funding By Donors

Donor Amount

Norway 8,228,960.00


Japan 2,275,953.00


USA 1,312,456.00

UK 949,380.00

Germany 87,871.00

Australia 85,000.00

Finland 69,263.00

JLIA 50,000.00

New Zealand 37,530.00

Sweden 25,000.00

Korea 10,000.00

Total 18,014,453.00

2%

5%

7%

10%

13%

17%

46%

100%

0% 25% 50% 75% 100%

Others

UK

USA

Switzerland

Japan

Netherlands

Norway

Total

Others = Germany, Australia, Finland, JLIA, New Zealand, Sweden & Korea

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International Tropical Timber Organization (ITTO)Breakdown On Donor Thematic Programme Contributions

Donor TFLET REDDES CFME TMT IDE Total

Norway 15,000.00 8,173,960.00 40,000.00 - - 8,228,960.00

Netherlands 3,000,000.00 - - - - 3,000,000.00

Japan 991,235.00 483,782.00 635,000.00 165,936.00 - 2,275,953.00

Switzerland 683,040.00 400,000.00 100,000.00 700,000.00 - 1,883,040.00

USA 537,456.00 175,000.00 300,000.00 300,000.00 - 1,312,456.00

UK 949,380.00 - - - - 949,380.00

Germany 87,871.00 - - - - 87,871.00

Australia 85,000.00 - - - - 85,000.00

Finland 35,199.00 - - 34,064.00 - 69,263.00

JLIA 50,000.00 - - - - 50,000.00

New Zealand 37,530.00 - - - - 37,530.00

Sweden - - 25,000.00 - - 25,000.00

Korea 10,000.00 - - - - 10,000.00

Total 6,481,711.00 9,232,742.00 1,100,000.00 1,200,000.00 - 18,014,453.00

Est. Total 15,000,000.00 18,000,000.00 10,000,000.00 5,000,000.00 10,000,000.00

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6,481,7118,767,258

1,100,000

1,200,000

8,518,2899,232,742

8,900,000

3,800,000

10,000,000

0%

50%

100%

TFLET REDDES CFME TMT IDE

Pledges Balance

International Tropical Timber Organization (ITTO)Pledges Vs. Estimated Total Contributions For Thematic Programmes

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International Tropical Timber Organization (ITTO)Remaining Funds for Thematic Programmes (TP)

515,059.00 879,126.00 99,476.00

273,248.00

6,481,711.00 8,767,258.00 1,100,000.00

1,200,000.00

0%

50%

100%

TFLET REDDES CFME TMT IDE

Remaining Funds Total Pledged Funds

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International Tropical Timber Organization (ITTO)Voluntary Contributions to the Bali Partnership Fund (BPF)

Account Name: Amount

BPF Sub-Account A 25,106,156.00

BPF Sub-Account B 20,604,402.00

Total 45,710,558.00

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International Tropical Timber Organization (ITTO)Financing Trends

195million

370million

80%

36members

Donors

Total ITTO funding mobilized increased from 129 million under ITTA, 1983 to 195 million under ITTA,

1994

Since inception, total ITTO funding mobilized: 370 million for 1000 projects and activities

Three biggest donors comprising Japan, Switzerland and USA account for more than 80% of voluntary contributions under ITTA, 1983 and ITTA, 1984

In recent years, ITTO received sizeable contributions from other donors including Norway,

The Netherlands and EU

The number of ITTO recipient members (producer members and developing consuming members)

increase from 29 under ITTA, 1983 to 36 under ITTA, 1994

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International Tropical Timber Organization (ITTO)Financing Issues

Adequacy

Narrow

Financing Base

Earmarking By

Donors

Needs

Concentration

Financing needs of recipient countries; average financing per recipient country; approved pre-project

and projects not funded; recipient countries’ contributions to Administration Account

3 donors accounting for more than 80% of contributions

Earmarked financing to be used only for designated pre-projects, projects and activities

8 recipient members accounting for 50% of financing

Recipients’ needs VS Donors’ needs

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International Tropical Timber Organization (ITTO)Other Efforts On Financing

1

2

3

4

International, regional and national

foras on Tropical Forest Investment

2006 – 2009

MoUs with like minded

organizations

Participation in relevant calls for

proposals

Collaborative programmes:

ITTO-CITES Programme for

implementing CITES listing of

tropical timber species

ITTO-CBD collaborative initiative to

conserve tropical forests

Investment Fora

Collaborative Programmes

Strategic Partnerships

Calls for Proposals

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