INTERNATIONAL TROPICALTIMBER COUNCIL

Distr.
GENERAL
ITTC(LVI)/1613 November 2020
Original: ENGLISH

FIFTY-SIXTH SESSION
9-13 November 2020
Virtual Session

DECISION 4(LVI)
IMPLEMENTING ITTO’S NEW FINANCING ARCHITECTURE – PHASE II
The International Tropical Timber Council,
Recalling the objectives of Article 1 of the ITTA, 2006;
Acknowledging the need for the Organization to improve its financial architecture and to adapt theoperations of the Secretariat in order to more effectively carry out its mandate of the ITTA;
Recalling the legal obligation of Members to pay their assessed contributions to the Administrative
Budget, which contributes to the overall operational strength of the Organization to fulfill its mandate;
Recalling Decision 9(LIII), which established the Ad-hoc Working Group on Financing Infrastructure
and Fundraising Strategies and Decision 5(LIV), which approved, among other elements: the piloting of anadditional fundraising approach, an electronic survey to gain more information on Member’s views on thefunding situation and possible solutions, and extended by one year the mandate of the Ad-hoc Working
Group on Financing Infrastructure and Fundraising Strategies to develop a proposal for a “streamlined
project cycle” and assist in the development of appropriate themes to be used in fundraising proposals;
Further recalling Decision 8(LV), which approved, among other elements: the piloting of the
programmatic approach and the four programme lines, the establishment of a “virtual informed feedbackloop”, the establishment of an advisory board to advise on the implementation of the programmatic
approach, and the convening of an ad hoc working group to further refine the elements of a streamlined
project cycle process, review the project concept note template, and develop brief descriptions and 3-4
objectives for each of the four programmatic lines;
Recognizing that the International Tropical Timber Organization has expertise in areas which theGlobal Environment Facility (GEF) addresses, including sustainable forest management, food systems, land
use and degradation, and climate change; and noting that discussions for the 8th replenishment of the GEF
began in 2020;
Taking into consideration the work and recommendations of the Ad-hoc Working Group onImplementing ITTO’s New Financing Architecture (document ITTC(LVI)/9);
Noting the need for transparency, oversight, and call for active Membership involvement and input inthe proposed financial architecture and streamlined project cycle;
Recalling that Council Decision 8(LV) decided to pilot the programmatic approach and the four
programmatic lines for the period 2020-2022;
Decides to:
1.

Adopt the goals and objectives of each of the four Programmatic Lines as contained in Annex A(Programmatic Lines Goals and Objectives);

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2.

Implement a streamlined project cycle by:a.

Adopting the project concept note (CN) as contained in Annex C;b.

Requesting the Executive Director to launch an annual call for project concept notes(CNs), at least six months before the annual Expert Panel meeting, in addition to special
calls for CNs when specific funding opportunities arise;c.

Requesting the ITTO Secretariat to develop a CN and project proposal database as soon
as possible;d.

Encouraging Members and the Executive Director to submit project ideas utilizing thenew project CN, as appropriate;e.

Recognizing the role of the Expert Panel may now entail virtual review, as needed, inbetween their annual meeting;f.

Applying the current qualification criteria and sunset provisions for projects to the concept
notes, in order to manage the volume and relevancy of the proposals;g.

Applying existing financial rules and project manuals during the pilot phase.

3.

Acknowledge the different funding scenarios under the Programmatic Approach as outlined in
Annex B (Financing Flows under the Pilot Programmatic Approach);

4.

Request the Executive Director to issue a first open call for concept notes and small project
proposals under financing scenario 4 as soon as possible; and potentially more calls under theadditional 3 financing scenarios, based on emerging funding opportunities;

5.

Acknowledge the new, respective roles and responsibilities of each of the participating actors inthe streamlined project cycle and different funding scenarios under the Programmatic Approach;

6.

Request the Executive Director to ensure that activities to be funded outside the core budget
are formulated as CNs and included in the database, or as Council Decisions, in order to assess
Member priorities and donor interest and financing, prior to being incorporated into the BWP;

7.

Request the Secretariat to continue to indicate in the Biennial Work Programme (BWP) how
each activity aligns with the Programmatic Line(s);8.

Request the Secretariat to provide Members with necessary information in a timely manner
under the virtual informed feedback loop to ensure transparency and adequate time forMembers to provide feedback;9.

Request the Executive Director to continue to implement the activities requested underDecision 8(LV), including periodically convening the Advisory Board; and engaging with funding
mechanisms, including the GEF and its partners ahead of its eighth replenishment process;

10.

Request the Advisory Board to develop formal terms of reference for its work, to be consideredby the Council at its Fifty-seventh Session;

11.

Request the Secretariat to propose the structure and approach for the review of theimplementation of Decision 5(LIV) in 2022, including the long-term effectiveness and feasibilityof the pilot approach, for consideration by the Council at its Fifty-seventh Session;

12.

Request the Executive Director to report on the progress made and challenges encountered in
the implementation of this Decision at its Fifty-seventh Session;

13.

Authorize the Executive Director to utilize up to US$200,000 from the Working Capital Accountto implement this Decision.

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Annex A
Programmatic Lines Goals and Objectives
Programmatic Line #1: Legal & Sustainable Supply Chains (LSSC)
Goal: To enhance capacity in tropical timber supply chains to meet the increasing demand forsustainability and assurance that products are from legal sources.
Objectives:• Promote and strengthen networks and collaboration amongst consumers, producers, tradeassociations, traders, and civil society to help build legal and sustainable supply chains;and expand and diversify markets for tropical timber sourced from sustainably managed
forests.
• Improve market intelligence and information sharing on the international timber market andtrade aimed at achieving greater transparency on market information and trends, including
on the development of forest legality requirements in countries.
• Identify and promote incentives throughout the tropical timber demand and supply chain to
increase efforts to address sustainability, legality and traceability.
• Enhance the capacity of tropical timber producing countries for the production of legal andsustainable timber and non-timber products and services.
• Raise awareness of the critical role that sustainably managed tropical forests play incontributing to the three pillars of sustainability (economic, social and environmental),including the achievement of the SDGs and other global forest related goals andcommitments.
Programmatic Line #2: Conservation of Biodiversity and Ecosystem Services
Goal: To maintain and/or enhance biodiversity and ecosystem services of tropical forests and forest
landscapes, while maintaining the sustainable production of timber and other products and services.
Objectives:• Encourage the full valuation of forest landscapes, including ecosystem services andbiodiversity, as well as the collection and/or use of existing ecological and biological datathat contributes to sustainable management of tropical forests.
• Promote innovative approaches, technologies and practices (including payment forecosystem services) and strengthen technical skills aimed at maintaining and/orenhancing tropical biodiversity and ecosystem services in production forests.
• Assist in building countries’ capacity to implement the ITTO/IUCN Guidelines for theConservation and Sustainable Use of Biodiversity in Tropical Production Forests and otherrelevant ITTO and internationally acknowledged guidelines.
• Enhance further collaboration with international organisations, including the secretariats ofCITES and the CBD, to enhance countries’ capacity to implement forest biodiversity goals,including the CITES listings of tropical tree species.

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Programmatic Line #3: Forest Landscape Restoration and Resilient Livelihoods
Goal: To scale up the area of forest landscapes restored and to increase the provision of goods andservices from planted and restored forests, thereby generating opportunities for local employment andcontributing to wider development goals.
Objectives:• Promote the utilization and implementation of the ITTO Guidelines for forest landscaperestoration in the tropics.
• Facilitate the improvement of knowledge and skills in FLR and the sustainable
management of restored and planted forests.
• Assist ITTO tropical member countries in building capacity to plan and implement tropicalforest landscape restoration (FLR) in the field.
Programmatic Line #4: Emerging Issues and Innovation
Goal: To address emerging/urgent issues and innovation focused on achieving ITTA objectives thatare not covered under the other programmatic lines.
Objectives:• Allow for funding flexibility and a streamlined approach to address specific issues not
captured by the other programmatic lines.
• Respond to opportunities that allow ITTO and its members to be at the forefront ofinnovation, pilot new approaches or studies, and be able to react to emerging international
development policy priorities.
• Assist members to manage and adapt to natural, socioeconomic, and financial crises
affecting sustainable tropical forest management and timber production and trade.
• Leverage ITTO’s network and information/data expertise to assist countries to respond toemerging/urgent issues.

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Annex B
Financing Flows under the Pilot Programmatic Approach

Financing Scenario 1 under the Programmatic Approach
Launch Call for Concept
Notes (depending on theFunding opportunity(thematic, regional) is
identified (e.g. willingness offunding opportunity there may
be limits on the region andtheme as well as the number ofconcept notes that can besubmitted)

donor to provide funding, call for
proposal/ competitive tender)

Coordination of thedevelopment andreview of full proposal
by Secretariat based on
ITTO objectives andframework, directly withtarget recipient.
Revisionof proposal

Match-making
betweenDonor & Recipient

Concept
Notes (CN)

Reviewed concept notes areplaced in the donor/projectmatching database(Co-development
process: improvingproposal/ concept note)
VirtualExpert Panel

Only those eligible tosubmit proposals
Secretariat
under ITTA canchecks
submit CNs
conformity of(including proposals from Regular ProjectCycle)

Secretariat decides to proceed
based on feedback

appraiseson request

Virtual Informed
Feedback Loop

Funding
decision bydonorYes

Agreement is signed& Project is funded(more than 1 month
before agreement)

No
Secretariat decides NOT toproceed based on feedback
and undertakes necessary
consultations

Project is notfunded(subject to sunsetprovision)

Financing Scenario 2 under the Programmatic Approach

Immediate funding
opportunity is identified

Existing Concept notes/
proposals in the donor/projectmatching database arereferred to

Coordination of thedevelopment and review
of full proposal by
Secretariat based on ITTO
objectives and framework,
directly with targeted
Recipient.

(including proposals from Regular ProjectCycle)

Match-making
betweenDonor & Recipient(Co-development process:
improving proposal/ conceptnote)

VirtualExpert Panelappraiseson request

Revisionof proposal

Funding
decision bydonorYes

Virtual InformedFeedback Loop

Secretariat decides to proceed
based on feedback(period could be less than
1 month before
agreement but at least 1
week before agreement)

No
Secretariat decides NOT toproceed based on feedback
and undertakes necessary
consultations

Agreement is signed& Project is funded
Project is notfunded(subject to sunset
provision)

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Financing Scenario 3 under the Programmatic Approach
Funding opportunities
identified requiring
funding agreements* to besigned upfront

Coordination of thedevelopment and review
of full proposal by
Secretariat based on ITTO
objectives andframework, directly withtargeted Recipient.

Virtual Informed
Feedback Loop

Funding
decision by
donor

Funding Agreement
is signed(period could be less than
1 month but at least 1
week before agreement)

Secretariat decides NOT to proceed
based on feedback and undertakes
necessary consultations

VirtualExpert Panel

Revisionof proposal

Secretariat decides to proceed
based on feedback

Launch Callfor Concept
Notes ifpossible

Agreement isnot signed

Match-making
betweenDonor & Recipient(Co-development
process: improving
proposal/ conceptnote)

Existing concept notes/ proposals
in the donor/ project matching
database are referred to(including proposals from Regular Project Cycle)

appraiseson request

Project Agreement
is signed & funded

Yes
Project is notfundedNo(subject to sunsetprovision)* Funding agreement between donor and secretariat

Financing Scenario 4 under the Programmatic Approach
integrating the Regular Project Cycle.
Full proposals (transitional arrangement)

Annual/Biannual OpenCall for Concept Notes/
Full Proposals*(Launched at least 6 months before
Expert Panel)

Match-making
betweenDonor & Recipient(Co-development process)ExpertPanelappraiseson request

objectives and framework,
directly with target recipient.

Funding
decision bydonorNo

Only those eligible tosubmit proposals under
ITTA can submit CNs

Secretariat
checksconformityof Concept
Notes

Council approves
Category 1 Projects

Concept Notes/
Proposals

Coordination of thedevelopment and review
of full proposal by
Secretariat based on ITTO

Revisionof proposal

Concept Notes (CN)Expert Panelappraises Proposals

Integrated intodonor/projectmatching database(ProgrammaticApproach PL1-4)

Not pledged
at Council

Virtual Informed
Feedback LoopYes(more than 1 monthbefore agreement)* Small project proposals with an ITTO budget less than $150,000 and 24 months areto be submitted following the format in the ITTO Manual for Project Formulation.

Secretariat decides
to proceed based onfeedbackPledges madeat Council toapproved
projects

Agreement is signed& Project is funded
Project is notfunded (subject toSecretariat decides NOT tosunset provision)
proceed based on feedback
and undertakes necessary consultationsITTC(LVI)/16Page 7

Annex C
Project Concept Note (CN)
1. General Description
1.1. Project Title
1.2. Submitting Country/ies
1.3. Specific Location & Country/ies/regions/areas benefitting from the project
1.4. Endorsement from ITTO Focal Point1

1.5. Intended Project Duration (in months)
1.6. Indicative Budget (in US$)ITTO Budget:Counterpart Budget:
Total Budget:

US$
US$
US$

2

1.7. Programme Line Focus☐Legal and Sustainable Supply Chains☐Biodiversity in Productive Forests☐Forest Landscape Restoration and Resilient Livelihoods☐Emerging Issues and Innovation
3

1.8. Project Type☐Capacity Building/Training☐Community/field-based project implementation☐Pilot/demonstration project☐Analytical work/studies☐Workshop/meeting/seminar☐Innovation☐Policy development/implementation☐Market/product development
4☐Other
1.9. Proposal Summary (max. 2000 characters)
2. Proponent Information
2.1. Executing Agency (EA) Information
Name of Agency/Organization/Institution:
Name of main Contact Person:
Email, phone/fax, URL:
2.2. Type of Organization☐Governmental Agency☐Civil Society Organization☐University/Research Institute☐International Organization☐Private Sector/Industry Associationiv☐Other
2.3. Collaborating Agency/ies (same info as above for EA);
2.4. Relevant experience of EA: (max. 500 characters)

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3. Relevance (max 2000 characters for each sub-section)
3.1. Conformity with ITTO objectives (ITTA, 2006) and priorities (current SAP)
3.2. Relevance to the ITTO Programme Lines
3.3. Relevance to the Sustainable Development Goals (SDGs) and the Global Forest Goals (GFGs) and otherforest related global agenda
3.4. Relevance to submitting country’s policies
3.5. Linkages to previous/ongoing ITTO and other projects/activities (if any)

4. Project synopsis (max. 2000 characters for each sub-section)
4.1. Objectives (reflecting reference to elements within all ITTO Guidelines as applicable)
4.2. Key problem(s) to be addressed
4.3. Main stakeholders and beneficiaries
4.4. Key activities
4.5. Expected outcomes and impacts, including innovation/transformation
4.6. Existing funding for (related) initiative(s)/established contacts to potential donors
4.7. Any other information deemed necessary/important
4.8. Risk mitigation measures

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5. Indicative Budget (in US$)1.

Description
PersonnelITTO2.

Sub-contracts

3.

Travel and DSA

4.

Capital Items

5.

Consumables

6.

Publication/Dissemination

7.

MiscellaneousCounterpart

TOTAL
TO BE COMPLETED BY ITTO
ITTO Project Monitoring & Review
Annual/Final Audit
ITTO Programme Support
GRAND TOTALi (PDF, JPG, PNG attachment) – without endorsement the CN will not be considered
ii Check 1iii Check up to 3iv Textbox for manual input
v Proponent to identify potential or anticipated risks and how they will be mitigated
1(PDF, JPG, PNG attachment) – without endorsement the CN will not be considered

ck 13Check up to 3
4
Textbox for manual input

*

*

*

TOTAL