Forest Carbon Partnership Facility

Update on Carbon Fund Progress since CF19

Twentieth Meeting of the Carbon Fund (CF20)

Washington DC

July 8-11, 2019

Carbon Fund Pipeline and Portfolio

DRC

Guatemala

Chile

Mexico

Ghana

RoC

Nepal

Vietnam

Peru

Costa Rica

Indonesia

Cote d’Ivoire

Dominican Rep.

Nicaragua

Lao PDR

Mozambique

MadagascarFiji

ER-PINs selected into the FCPF CF pipeline (19)

ERPDs selected into the FCPF CF portfolio (13)

Cameroon

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Progress since CF19

Pipeline and Portfolio

Countries selected into the portfolio since CF19:

• Cote D’Ivoire submitted a revised ERPD per resolution CFM19/2019/2 and having received no objections from CFPs was accepted into the portfolio.

• Indonesia submitted a revised ERPD per resolution CFM19/2019/1 and having received no objections from CFPs was accepted into the portfolio.

• Republic of Congo submitted a revised ERPD per resolution CFM18/2019/1 and having received no objections from CFPs was accepted into the portfolio.

WBG Decision Meetings:

• Decision meetings for the FCPF programs in Vietnam was held in March.

• Decision meetings for the FCPF programs in Cote D’Ivoire, Indonesia, Lao PDR , Madagascar, Nepal, and Republic of Congo will be held in the coming months.

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Progress since CF19

ERPAs

ERPA signings• Ghana ERPA signed!

ERPA negotiations• Chile is currently negotiating their ERPA.

ERPA preparation workshops: • ERPA preparation workshops were held in Lao PDR

in May and in Cote D’Ivoire, Indonesia and Republic of Congo in June, bringing the total to thirteen.

ERPA pre-negotiations • Mexico, under a new administration, is re-engaging in pre-

negotiations.

• Madagascar, Nepal and Vietnam have shared their Initial expectations on the draft ERPA term sheet with the Trustee.

• FMT has initiated pre-negotiations with Cote D’Ivoire and Lao PDR.

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Progress since CF19 ERPD Technical Assessments

Technical Assessments completed for 7th batch of ERPDs:

• Assessments of ERPDs from the Dominican Republic, Fiji, Guatemala, Nicaragua and Peru by the TAP and CFPs completed for presentation and potential selection at CF20.

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Progress since CF19 Private Sector Engagement

• A Workshop on “Unlocking Private Sector Finance For Sustainable Landscape Management” was held in collaboration with IETA in March.

• Working with the the Tropical Forest Alliance (via their Commodity-first approach) and the World Business Council For Sustainable Development (via their Soft Commodities forum) to take advantage of synergies in overlapping jurisdictions.

• Developing South-South Knowledge Exchanges on Early Warning and MRV systems (to be held in Colombia) and cocoa agroforestry (to be held in Brazil).

• Working with the Sustainable Vanilla initiative to develop a Sustainable Agroforestry guideline for vanilla production in Madagascar and a platform for vanilla.

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Progress since CF19 Measurement, Reporting, and Verification

Methodological framework• Guidance on technical corrections of GHG emissions and removals for the reference

period: Mozambique is the first country to notify the FMT of their intention to improve their reference level through technical corrections to methodologies.

• Guidance on reporting periods: The FMT has begun applying this guidance–which sets rules for defining reporting periods in ERPDs and ERPAs and ensures alignment across ER programs–as part of ERPA pre-negotiations.

Verifications• The Verification

standard and the TORs for verification entities are in the final stage of development.

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The FCPF continues to collaborate with REDD+ countries to provide technical support and to help formulate policy and sector-strategies concerning land and policy-relevant analysis of women's natural and productive resources.

• Analysis and Research: Identifying concrete lessons learned from gender-responsive activities and plans from implementation globally across the FCPF and beyond (including the Forest Investment Program for example). This includes global analytical work, guidance notes and communication tools for dissemination. Analytical work has also been initiated on inclusion of behavioral diagnostics to gender analysis/assessment (in Costa Rica, Guatemala and Mexico) and on customary land tenure (in Fiji, Laos, Cambodia and Vietnam).

Progress since CF19 Mainstreaming Gender in REDD+

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• Strengthening Institutional Capacity: Providing support to governments and local stakeholders to improve their knowledge and build their capacity through knowledge sharing and workshops. Workshops are focusing on gender mainstreaming in global ER Programs and increasing discourse among indigenous women.

• Gender Responsive Strategies and Plans: Developing strategies, plans and specific targeted interventions to support gender mainstreaming in REDD+ implementation and ERPAs/BSPs based on previous work and by leveraging existing project activities in Mozambique and the DR and through the DGM.

Progress since CF19 Mainstreaming Gender in REDD+

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• The FMT is launching a global survey of land tenure in REDD+ countries to determine the current situation and map out opportunities to accelerate the legal recognition of collective forest rights. The study will contribute to the protection of carbon-rich tropical forestlands and the pursuit of national ER commitments in the context of equity, poverty reduction, and sustainable development priorities

• The study aims to (i) identify and prioritize national and sub-national opportunities to advance the legal recognition of collective land and forest tenure rights, through operational investments that could be undertaken by the governments, civil society actors, and international collaborators in selected FCPF countries, and ii) to assess whether and how progress towards REDD+ readiness and ERP preparation to date have influenced changes in the forest tenure rights of IPs and local communities.

• The study will prioritize countries in the CF portfolio.

Progress since CF19 Land Tenure

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• Supported a South-South Knowledge Exchanges (SSKE) focused on REDD+ Readiness and Emission Reductions Program Design hosted in Da Nang, Vietnam in March. An SSKE on mainstreaming gender in REDD+ to be held in Nairobi, Kenya next week.

• Finalizing an “Analysis of Best Practices for Benefit Sharing in Jurisdictional Results-Based Land Use Programs”.

• Held BBLs and knowledge sessions on topics such as MRV, Registries, and Financing of ER Programs.

• Developed a continuous stream of strategic features and blogs to keep forests and REDD+ highly visible online.

• Launched a new FCPF website providing a much improved user experience, simplified navigation, and more appealing design.

Progress since CF19 Communications and Knowledge-Sharing

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HOMEPAGE

Progress since CF19Communications and Knowledge-Sharing

New FCPF Website!

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MEETINGS

COUNTRIES

FIJI

Progress since CF19 Communications and Knowledge-Sharing

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TOPICS

GENDER

REDD+ STRATEGIES

Progress since CF18 Communications and Knowledge-Sharing

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Topics and Decisions for CF20Resolutions

Six Resolutions to be considered at this meeting:

• Decisions on whether to proceed to negotiating an ERPA for proposed ER Programs from the Dominican Republic, Fiji, Guatemala, Nicaragua and Peru (i.e. potential selection of ERPDs from pipeline into portfolio of the Carbon Fund).

• Approval of the FY20 Budget

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Topics and Discussion for CF20

• Options and considerations on payments for Emission Reductions generated before ERPA signing.

• Verification standards, which sets the modalities and procedures for verifications under the Carbon Fund.

• Registries, including the architecture, an analysis of associated risks and legal issues, a budget, and a proposed road map of next steps.

Discussions at this meeting (outcomes to be captured in the Chair’s Summary where relevant):

• Sign ERPAs by end of Calendar year 2019 -> Main Priority

• Complete due diligence and appraisal for countries selected into the portfolio.

• Continue to build country capacity for ERPA negotiations (commercial terms, contract ERs vs option ERs, etc.).

• Continue support countries in ER Program development and implementation

• Support countries in meeting remaining indicators of the Methodological Framework (e.g., Benefit-Sharing-arrangements, ER title transfer ability, etc.), including through South-South Knowledge Exchanges

• Verification process in place, and ready for the first verification and payment

• Registry operational, ready for the first issuance

• CORSIA program requirements

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Focus Areas of FMT for FY20

Thank

YOU

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