Form readiness to full
implementation, financial supportconsiderations from a multilateralperspective
M. J. Sanz
FAOQuestions?
• Complex and uncertain Climate Change finance.
Is REDD+ different?
• REDD+ carbon credits supply likely to be bigger
than demand?
• Where we stand?
• How to match demand of finance to achievesustainable results?
• Is there a single solution? Only one sequence?
• What we learnt while supporting REDD+? Did welearnt something?

Questions?
• Complex and uncertain Climate Change finance.
Is REDD+ different?
• REDD+ carbon credits supply likely to be bigger
than demand?
• Where we stand?
• How to match demand of finance to achievesustainable results?
• Is there a single solution? Only one sequence?
• What we learnt while supporting REDD+? Did welearnt something?

Climate Change
Global FinanceComplex…
Uncertain?

REDD+
short term
versuslong term
Biennial Assessment and Overview of Climate Finance Flows 2014

Questions?
• Complex and uncertain Climate Change finance. Is
REDD+ different?
• REDD+ carbon credits supply likely to be bigger
than demand?
• Where we stand?
• How to match demand of finance to achievesustainable results?
• Is there a single solution? Only one sequence?
• What we learnt while supporting REDD+? Did welearnt something?

REDD+
Supply bigger thandemand?

Assumptions…

A report of the Interim Forest Finance (IFF) Project, January 2014

…. assumptions

Stimulating Interim Demand for REDD+ Emission Reductions: The Need for a Strategic Intervention from 2015 to 2020. A report of the Interim Forest
Finance (IFF) Project, January 2014

Questions?
• Complex and uncertain Climate Change finance. IsREDD+ different?
• REDD+ carbon credits supply likely to be bigger
than demand?
• Where we stand?
• How to match demand of finance to achievesustainable results?
• Is there a single solution? Only one sequence?
• What we learnt while supporting REDD+? Did welearnt something?

REDD+
Interaction of Needs and Sources
Needs- Strategies, plans- Needs for building
capacities andarrangements- Resource needs for
implementation ofpolicies and actions- Needs for
performanceassessments

Financialagreements

Sources- Bilateralarrangements- Multilaterals(Funds and programs):- Readiness-Investments (PAMs)-Result Base Payments

Present (short term)
versusFuture (Long term)-Indirect
Domestic budgets
Other funds
NGOs support

Donor country pledges for REDD+ for the period 2006-2014

Most donors ….
Both (Multilateral and bilateral)
For what?
Scale, timing…?

Source: Compilation of public sector reported data from the REDD+ Partnership Voluntary REDD+ Database and ODI and HBF Climate
Funds Update covering REDD+ financial commitments for 2006 to 2014. From Norman and Nakhooda, 2014.

North-South… South-South… Multilateral… Bilateral…
International… domestic other?

REDD+ Needs……
National
Strategyor- Readiness-Investments (PAMs)-Result Base Payments

NFMS

Action Plan

SIS(safeguards)

FREL/FRLREDD+……Sources- Readiness-Investments (PAMs)-Result Base Payments

Sources- Bilateral arrangements (mostly RBPs)- Multilaterals (Funds and programs), examples:
Readiness

Investments (PAMs)

RBPs

FCPF Readiness Fund

FIP

FCPF Carbon Fund

UNREDD Programme

GEF

GCF?

GCF?

- NGOs projects (mostly readiness)- Domestic budgets (mostly investments)- Voluntary Markets (RBPs)- Others (Amazon Fund, CBFF, etc.)

GCF?

Multilateral isplaying a role….
6 Multilateralfunds: UNREDD,
FCPF (Readiness/Carbon), Amazon Fund,
CBFF, Bio carbon Fund
Initiative for sustainable
forest Landscapes, FIP

…. different aggregation
8.8

Where countries stand?
Long Term
Sustained Mitigation

Strategies andplans

Capacity
Building

Implementation

Investments
PAMs… more like acycle than linear…

RBPs
Contributions toMitigation

Monitoring,
reporting andverification

Short term
Readiness

Questions?

• Complex and uncertain Climate Change finance.
Is REDD+ different?
• REDD+ carbon credits supply likely to be bigger
than demand?
• Where we stand?
• How to match demand of finance to achievesustainable results? Is there a single solution?
Only one sequence?
• What we learnt while supporting REDD+? Did welearnt something?

Exampleto match demand of finance to achieve sustainable results….

Questions?

• Complex and uncertain Climate Change finance.
Is REDD+ different?
• REDD+ carbon credits supply likely to be bigger
than demand?
• Where we stand?
• How to match demand of finance to achievesustainable results? Is there a single solution?
Only one sequence?
• What we learnt while supporting REDD+? Did welearnt something?

Ideal…. but…

Amount of FinanceNot a single standard solution, need to adapt to country situations….

Cumulativeemission
reductions

Result based climate finance

Climate finance (investment)

General finance for sustainable
land use
General finance for activities
leading todeforestation/degradation
TAto match demand of finance to achieve sustainable results….

What we learnt?
• REDD+ not linear, more a cycle. Timing and scale offinance matters to country processes and differences.
• Many countries face barriers for implementing thenational REDD+ policies and measures and significant
funding is required to overcome some of these barriers.
• Long-term, cumulative emission reductions only can becreated and maintained from a financing mix.
• Need to leverage existing finance and ensure this willcontribute to sustainable land use (amount often manytimes larger than climate finance) if long term
mitigations is aimed.

ありがとうMultilateral is playing a role….

> 1,500

Stimulating Interim Demand for REDD+ Emission Reductions: The Need for a Strategic Intervention from 2015 to 2020. A report of theInterim Forest Finance (IFF) Project, January 2014

…. different aggregation

… other updated analysis

Climate Finance Thematic Briefing: REDD+ Finance. Marigold Norman, Alice Caravani, Smita Nakhooda, Charlene Watson, ODI andLiane Schalatek, HBF. December 2014.