FOREST CARBON
PARTNERSHIP FACILITY
2017 ANNUAL REPORTCONTENTS

2

FOREST CARBON PARTNERSHIP FACILITYACRONYMS

4

FOREWORD

6		

1. GENERAL INTRODUCTION

8

2. PROGRAM OBJECTIVES

10

3. MAIN ACHIEVEMENTS AND RESULTS DURING THE PERIOD

12

3.1. Highlights

12

3.2. Progress at the Impact Level

20

3.3. Progress at the Outcome Level31

3.4. Progress by Output

35

4. ISSUES AND CHALLENGES

62

4.1. Managing Disbursements Prior to Fund Closure

62

4.2. Impediments to Implementation

62

4.3. Identifying and Leveraging Investment Finance62

4.4. Operationalizing Private Sector Engagement62

5. MONITORING OF ASSUMPTIONS AND RISK

64

6. FY17 FINANCIAL REPORT OF THE FACILITY

68

6.1. Financial Overview of the Facility

68

6.2. The Readiness Fund68

6.3. The Carbon Fund76

6.4. Budget Approval Process

79

7. RESULTS MEASUREMENT REPORTING FRAMEWORK80

ANNUAL REPORT 20173

ACRONYMS

4

BioCF

BioCarbon Fund

CBP

Capacity Building Program for Forest-Dependent Indigenous Peoples andSouthern Civil Society Organizations

CF

Carbon Fund

C&I

Criteria and Indicators

COP

Conference of the Parties (to the UNFCCC)

CSO

Civil Society Organization

DGM

Dedicated Grant Mechanism

DP

Delivery Partner

DRC

Democratic Republic of CongoER

Emission Reductions

ERPA

Emission Reductions Payment Agreement

ERPD

Emission Reductions Program Document

ER-PIN

Emission Reductions Program Idea Note

ESMF

Environmental and Social Management Framework

FAO

Food and Agriculture Organization

FCPF

Forest Carbon Partnership Facility

FGRM

Feedback and Grievance Redress Mechanism

FIP

Forest Investment Program

FMT

Facility Management TeamFY

Fiscal Year (World Bank fiscal year, July 1–June 30)

GCF

Green Climate Fund

GHG

Greenhouse gas

GIZ

Deutsche Gesellschaft für Internationale Zusammenarbeit(German development agency)

GOFC-GOLD

Global Observation of Forest and Land Cover Dynamics

IDB

Inter-American Development Bank

IFC

International Finance Corporation

IP

Indigenous Peoples

ISFL

BioCarbon Fund Initiative for Sustainable Forest Landscapes

FOREST CARBON PARTNERSHIP FACILITY

Lao PDR

Lao People’s Democratic Republic

LoI

Letter of Intent

M&E

Monitoring and Evaluation

MF

Methodological Framework

MRV

Measurement, Reporting and Verification

NGO

Nongovernmental Organization

PA

Participants Assembly

PMF

Performance Measurement Framework

PC

Participants Committee

PROFOR

Program on Forests

REDD

Reducing Emissions from Deforestation and Forest Degradation

REDD+

REDD plus conservation of forest carbon stocks, sustainable management of forests,
and enhancement of forest carbon stocks

R-PP

Readiness Preparation Proposal

SBSTA

Subsidiary Body for Scientific and Technological Advice (under UNFCCC)SESAStrategic Environmental and Social Assessment

SFM

Sustainable Forest Management

SIS

Safeguards Information System

SMART (indicators)

Specific, Measurable, Achievable, Relevant and Time-bound (indicators)

TAP

Technical Advisory Panel

UNDP

United Nations Development Programme

UNFCCC

United Nations Framework Convention on Climate Change

UN-REDD

United Nations Collaborative Programme on Reducing Emissions from Deforestation
and Forest Degradation in Developing Countries

WB

World BankANNUAL REPORT 2017

5

FOREWORD

This past year has been a significant one for the Forest Carbon Partnership
Facility (FCPF), with countries leading the shift from preparing to implementing
large-scale Emission Reductions Programs. This transition could not comeat a more urgent time, as sustainable land use–including sustainable forest
management—is a critical avenue to achieving the ambitious national targets
set out in the Paris Agreement.
With the Readiness Fund approaching
maturity and almost fully committed,
countries are well on their way toestablishing the building blocks for
Emission Reductions programs. This
past year, countries, with the aid of
FCPF funds and technical support,
evinced progress on many fronts,
including REDD+ management agreements, stakeholder
consultations and capacity-building, REDD+ strategy
preparation, Reference Emissions Levels, social safeguards,
analysis of drivers of deforestation and National Forest
Monitoring Systems. Furthermore, these efforts often
supported and informed larger national institutional andpolicy frameworks such as climate action plans andagriculture strategies. This crucial forward momentum has
also provided rich lessons that are helping scale up
South-South learning.
In FY17, the Carbon Fund welcomed four additionalcountries—Chile, Ghana, Mexico, and the Republic ofCongo—into its portfolio (some provisionally) bringing thetotal number to six. Momentum behind portfolio
development and diversification continues to build, withfour more countries expected to present their Emission
Reductions Programs by the end of the calendar year.
Meanwhile, the first Emission Reductions Payment
Agreement negotiations, to be conducted with Chile andthe Democratic Republic of Congo, are anticipated in the
coming months and should lead to the first contracts forlarge-scale transactions from REDD+. This progress will
provide important lessons and experiences for “proving theconcept” of REDD+ and catalyzing the realization of REDD+
at scale.

6

FOREST CARBON PARTNERSHIP FACILITY

As the work of the Carbon Fund increasingly addresses thetechnical aspects of countries’ Emission Reductions
Programs, the FCPF finds itself situated at the forefront of
thinking on issues of climate finance. This past year saw
significant discussions centered on areas of fundamental
knowledge—including registries, verifications, and due
diligence on transfer of title. While development of thisknowledge will directly benefit the programs of the Carbon
Fund, its impact is expected to resonate beyond that,
contributing to the work of the United Nations Framework
Convention on Climate Change and others, and cementing
the FCPF’s status as a global thought leader and influencer.
The findings and recommendations of the second
independent evaluation of the FCPF guided the Facility inassessing its relevance, effectiveness, and efficiency, and inmaintaining its responsiveness to countries’ strategic
priorities and climate change ambitions. Responding to theevaluation, the FCPF has increased its focus on strategicareas such as private sector engagement, knowledge andcommunications activities, and gender integration.
We look forward to the coming year, where we expect
momentum to advance unabated. The FCPF will continue towork closely with other actors and initiatives to make surethat financing modalities are aligned, providing countries
with the support they need to drive the REDD+ agenda
ahead. While hurdles lie ahead, I am optimistic thatworking together we are more than capable of meeting thechallenge.
Ellysar Baroudy, Coordinator,
Forest Carbon Partnership Facility

CALLOUT 1,CALLOUT 1CALLOUT 1CALLOUT 1CALLOUT 1,CALLOUT 1CALLOUT 1CALLOUT 1CALLOUT 1,CALLOUT 1CALLOUT 1CALLOUT 1

ANNUAL REPORT 20177

1. GENERALINTRODUCTION
In line with the M&E Framework’s Performance Measurement
Framework (PMF), this year’s annual report provides
information on the main achievements related to theintermediate impacts, outcomes (aligned with the FCPF’s four
strategic objectives), and outputs (short-term results), which
together provide a strategic overview of the FCPF (figure 1).
Specific, Measurable, Achievable, Relevant and Time-bound(SMART) indicators have been developed at the impact,outcome, and output levels to track the progress of the FCPF.
The targets for each indicator have been designed in a waythat ensures results can be achieved within the life span of
the facility. In the coming year, and as a result of the FCPF
evaluation, the M&E Framework will be updated to betterreflect the facility’s maturity.

370
740
MILLION MILLION
8$$The Readiness Fund became

The Carbon Fund became

operational in 2008 and has aoperational in 2011 and has acapital just under $370 million.

capital of $740 million.

FOREST CARBON PARTNERSHIP FACILITYFIGURE 1:
RESULTS CHAIN OF FCPF
INTERVENTIONS

Biodiversity
conserved

Impacts

Intermediate
Impacts

Global regime
that provides
incentives for
REDD+

Other
REDD+
supportOutcomes

Outputs

Sustainable orenhancedlivelihoods of forest
dependent people

Momentumfor good
governance of
SFM, respective
policy reforms
and multistakeholder
participation

Globally
recognized
REDD+
standards

Reduced green
house gases

Reducedemissions fromdeforestationand forest
degredationfrom FCPF,
especially CF
pilotsAdditional
REDD+
investments

Other
REDD+
supportEfforts successfully
undertaken bycountries with FCPF
support to achieve
emission reductions
and benefit from
REDD+

Engagement
for sustainable
livelihoods of forest
communities

ER Performancebased payment
systems effectively
demonstrated

Knowledge gained
from FCPF used byinternational REDD
practitioners

Readiness
Assessment
Framework

Increasedcapacity of IP
and local CSO

ER standards
and guidelines

REDD+
preparedness
plan

Models forsustainable
livelihoods andbiodiversity

Knowledge
management +communication
strategy

Progresstowardreadiness

ER-Programs
agreedIncreased CF
funds including
private sector
investment
ER-programs
timelyimplemented

Knowledge
products
disseminatedActive SouthSouth learning
Strong FCPF
and REDD+
visibility

ANNUAL REPORT 20179

2. PROGRAMOBJECTIVESThe Forest Carbon Partnership Facility (FCPF) is a global partnershipof 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+).
As stated in its charter, the FCPF pursues four
strategic objectives:• To assist eligible REDD+ countries in their efforts
to achieve emission reductions fromdeforestation and/or forest degradation by
providing them with financial and technicalassistance in building their capacity to benefit
from possible future systems of positive
incentives for REDD+;• To pilot a performance-based payment systemfor emission reductions generated from REDD+
activities, with a view to ensuring equitable
sharing and promoting future large-scale
positive incentives for REDD+;• Within the approach to REDD+, to test ways tosustain or enhance the livelihoods of local
communities and to conserve biodiversity; and• To disseminate broadly the knowledge gained in
the development of the Facility and theimplementation of Readiness plans and emission
reductions programs.
The FCPF has two separate but complementary
funding mechanisms—the Readiness Fund and theCarbon Fund—to achieve its strategic objectives.
Together the two funds have raised more than
$1.1 billion.

10

FOREST CARBON PARTNERSHIP FACILITY

The Readiness Fund supports participating
countries in the development of REDD+ strategies
and policies; reference emission levels (RELs);
measurement, reporting, and verification (MRV)systems; and institutional capacity to manage
REDD+, including environmental and social
safeguards. The Readiness Fund became
operational in 2008 and has a capital of just under$370 million.
The Carbon Fund builds on the progress made inreadiness and is designed to pilot performancebased payments for Emission Reductions from
REDD+ programs in a subset of FCPF countries.
The Carbon Fund became operational in 2011 andhas a capital of $740 million.
The FCPF brings together 47 developing countries(18 in Africa, 18 in Latin America and the Caribbean,
and 11 in the East Asia and Pacific Region) and 17
financial contributors (including developed
countries, one private sector participant, and one
Nongovernmental Organization). It has six
categories of observers, including Indigenous
Peoples and Civil Society Organizations (CSOs).
The core of the FCPF’s inclusive governancestructure is composed of the Participants Assembly(PA) and the Participants Committee (PC).

47 17
DEVELOPING
COUNTRIESFINANCIALCONTRIBUTORS

18 in Africa, 18 in Latin America
and the Caribbean, and 11 in the
East Asia and Pacific Region.

Developed countries, one private
sector participant, and one
nongovernmental organization.

ANNUAL REPORT 201711

3. MAIN ACHIEVEMENTS
AND RESULTS DURING
THE PERIOD
3.1. HIGHLIGHTSIn FY17, the Forest Carbon Partnership Facility (FCPF) marked a significant
milestone with Chile, Ghana, Mexico, and the Republic of Congo joining theCarbon Fund portfolio. These four countries, along with Costa Rica and the
Democratic Republic of Congo, are leading the way on large-scale Emission
Reductions Programs.
Moreover, four additional countries—Cameroon, Fiji,
Guatemala, and the Lao People’s Democratic Republic (Lao
PDR)—negotiated and signed a Letter of Intent that
confirms the country’s intention to sell a certain amount of
Carbon Emission Reductions and the FCPF Carbon Fund’s
intention to buy that amount within an agreed time frame.
To date, 18 of the 19 countries selected in the Carbon Fundpipeline have now signed Letters of Intent, with Indonesia
expected to sign in early FY18. Countries that have signed
these documents are now advancing the development of
their Emission Reductions Programs, consistent with the
Methodological Framework and in accordance with theWorld Bank’s due diligence process.
The momentum with which countries have been developing
landscape programs has had a positive effect on thereadiness progress. Advances made under the Readiness
Fund include three new Readiness Preparation Grants forArgentina, Belize, and the Central African Republic, bringing
the total number of countries implementing preparatory
REDD+ activities to 42.
By the end of the reporting period, a total of 12 countries
had reached the mid-term milestone, highlighting
important achievements in the institutional, technical, andsocial aspects of REDD+ readiness. Six countries—Chile,
Ghana, Mozambique, Nepal, the Republic of Congo, andVietnam—also reached the REDD+ readiness stage(Readiness Package), establishing an important foundation
for implementing a large-scale Emission Reductions
Program. The FCPF Participants Committee noted the highquality of the information provided in the Readiness
Packages and the rigor of the self-assessments.

12

FOREST CARBON PARTNERSHIP FACILITY

Total funds committed to the Readiness Fund and theCarbon Fund of the FCPF at the end of FY17 amounted tomore than $1.1 billion, with almost $370 million committed
to the Readiness Fund and $740 million committed to the
Carbon Fund. While the Readiness Fund resources havealready been entirely allocated, the Carbon Fund is likely tocommit all its resources in the next two to three years throughsigned Emission Reductions Payment Agreements (ERPAs).
Grant disbursements from the Readiness Fund havecontinued to accelerate, at the end of FY17 reaching $90
million, excluding grant disbursements made by countries
with Delivery Partners other than the World Bank. A notableachievement this year is the increase in the number ofcountries that is disbursing above plan—up from 3
countries to 10.
FCPF has continued providing tailored technical support tocountries as they design and develop their program
documents and advance critical analytical work. A key
resource is a new suite of 14 training modules developed tohelp countries improve operational forest monitoring andcapacity to measure, report, and verify the results of REDD+
intervention. Other knowledge products—including reports
on carbon emissions registries and an analysis of the roleand limitations of certification schemes in reducing
deforestation in the cocoa supply chain—have helped
document and share lessons learned on important pillars of
REDD+. Finally, several South-South exchanges across Latin
America, along with a series of targeted knowledge
sessions at the Participants Committee meeting held in
September 2016, have allowed participants to network,
share experiences, and open channels of communication
for future cooperation.

TOTAL FUNDSCOMMITTEDTO THE FCPFAMOUNTED TO
MORE THAN$1.1 BILLION...

WITH ALMOST$370 MILLIONCOMMITTED TO
THE READINESS
FUND...

AND $740 MILLIONCOMMITTED TO
THE CARBON
FUND AT THE
END OF FY17.

ANNUAL REPORT 201713

LARGE-SCALE
PROGRAMS IN THE
CARBON FUND
REDD+ countries continue to make strides indeveloping large-scale REDD+ program
proposals that have the potential to transform
rural landscapes. As of the end of FY17, theCarbon Fund pipeline included programs in 19
countries. These diverse and ambitions programs
take a jurisdiction-level approach to engaging
actors in agriculture, energy, transport, land,
mining, and forestry to achieve climate-smart
land use, protect forests, restore degraded land,
and improve local livelihoods.

CAMEROON
Cameroon’s Emission Reductions Program will
focus on an area of 9.3 million hectares along
the country’s southern border, 71 percent of
which is covered with dense tropical rainforest.
The area forms a continuum with the Emission
Reductions Program area in the northern partof the Republic of Congo, enabling the two
governments to control transboundary
emission reductions leakage. While the rate of
deforestation has historically been low, thetarget area is increasingly under threat fromagricultural expansion, industrial and artisanalmining, infrastructure development, and illegal
logging and timber exploitation—among otherdrivers of deforestation. With a total populationin the program areas of 1 million, including
Indigenous Peoples such as the Bakola andBagyeliand Ba’ka, the program will bring
together different actors to advancesustainable land use planning and zoning, andto address deforestation through intensified
agriculture, agroforestry, and more sustainablecocoa production. The program will alsoemphasize sustainable forest management intimber concessions and the introduction of
reduced impact logging.

14

FOREST CARBON PARTNERSHIP FACILITY

CHILE

Chile’s program to reduce emissions from degradationin temperate forests is a cornerstone of the country’s
national forestry strategy. This program, which spans
13.2 million hectares over Chile’s Maule, Biobío,
Araucanía, Los Ríos, and Los Lagos regions, willaddress the three main drivers of deforestation anddegradation: illegal logging, forest fires, and thereplacement of native forests with non-nativeplantations. The government of Chile is committed
to the development of this large-scale program to
reduce deforestation and forest degradation by
improving forest management and focusing on
cross-sectoral issues that affect areas with themost forest cover.

COSTA RICA
Costa Rica is concluding its REDD+ readinessphase and designing an Emission Reductions
Program covering more than 5.1 million hectares
that will be implemented nationally. The
program includes a wide range of policies andmeasures to conserve and enhance carbon
stocks, based on more than 20 years ofexperience with forest conservation andmanagement. At the heart of the program is
Costa Rica’s successful Payment forEnvironmental Services Program and an
extensive protected area system that is
gradually incorporating additional REDD+
activities. The program is developed with theactive participation of relevant stakeholders.
The program, along with the National REDD+
Strategy, will promote the country’s
commitment to carbon neutrality andcontribute to poverty reduction by expanding
an inclusive forestry and agroforestry-based
development model.

DOMINICAN REPUBLIC
CÔTE D’IVOIRE
Côte d’Ivoire’s Emission Reductions
Program combines political commitment
and private sector initiatives in one
subnational geography that is a hot spotof cocoa production and a major area forthe production of palm oil and rubber
plantations. The program area, coveringover 4 million hectares in five of the county’s
Southwest regions (Cavally, Nawa, San
Pedro, Guemon, and Gboklè), includes thecountry’s last remaining large forest block.
The program aims to address the main
drivers of deforestation—including
extension of agricultural production areas,
weak forest governance and illegal logging,
logging for wood energy production, illegal
mining through zero-deforestation
agriculture in partnership with the private
sector, agricultural intensification, andcapacity building for forest monitoring.

DEMOCRATIC REPUBLIC
OF CONGO
The Mai Ndombe Emission Reductions Programaims to implement the Democratic Republic ofCongo’s green development vision at provincial
scale by providing alternatives to deforestation andrewarding performance to address the challenges ofclimate change, poverty reduction, natural resource
management, and protection of biodiversity. Activities
under the program’s four pillars of Agriculture, Energy,
Forests, and Enabling Governance, Population, Land
Use Planning and Tenure, include strengthening
agricultural value chains, developing community
forestry, promoting family planning, and implementing
multilevel capacity building and sustainable
development plans across more than 12 million
hectares in the country’s Mai Ndombe province.
The program’s intervention strategy addresses thefollowing direct drivers of deforestation and forest
degradation: slash-and burn agriculture, fuelwood
production, uncontrolled bush fires, small-scale orartisanal logging, and industrial logging.

The Emission Reductions Program of the Dominican
Republic will be carried out at the national level,encompassing 4.8 million hectares. In addition to
reducing emissions in protected areas throughreforestation in key watersheds, it will contribute to thepreservation of the country’s flora and fauna, 38 percentof which is endemic to the Dominican Republic. To
reach its goals, the program will establish a set ofsustainable livelihoods projects to engage ruralcommunities. Special attention will be given to workin the landscapes bordering Haiti, where a binational
program to promote reforestation and conservation
activities is being implemented. Some of the drivers ofdeforestation and forest degradation to be addressed
are slash-and-burn agriculture and extensive livestock
farming, weak or inexistent forest governance,
unsustainable extraction of timber and non-timber
forest products, and forest fire control. Private sector
participants and cooperative participants from thecocoa, coffee, and livestock sector will play an integral
part in the program.

FIJI
The Emission Reductions Program proposed by Fiji
will cover the islands of Viti Levu, Vanua Levu, andTaveuni, spanning over 1 million hectares of land,
which is 94 percent of the forest cover in Fiji. This
program takes an integrated approach to emission
reductions and removal through afforestation/
reforestation, forest rehabilitation, improved
harvesting practices, national and subnational land
use planning, and sustainable forest management.
It will be implemented in a participatory manner,with communities being given a key role in program
implementation. The program activities are aimed
at the drivers of deforestation and degradation(regular fires to maintain grassland and open forest,
slash-and-burn agriculture, logging) and are inline with national climate change and disaster risk
management policies and activities. The program
places emphasis on enhancing benefits that
extend beyond carbon such as improvements
to the ecosystem, strengthened food security,
enhanced land tenure, and conservation ofsocial and cultural values.

ANNUAL REPORT 201715

LARGE-SCALE
PROGRAMS IN THE
CARBON FUND
GHANA
Ghana’s Cocoa Forest REDD+ Program has a strong
focus on greening the cocoa supply chain that is driving
forest loss through agricultural expansion. Partneringwith the private sector through the Cocoa Board, thegovernment has proposed a community-based approach
to double the cocoa yields in at least 25 percent of thecountry. The program, targeting 92 districts in five
regions (Eastern Region, Central Region, Ashanti Region,
Western Region and Brong-Ahafo Region), seeks tosignificantly reduce the emissions driven by expansion of
cocoa into forest areas, coupled with illegal logging. The
program will cover almost 6 million hectares and focus
on cocoa farming resources and land use interventions,while promoting other tree crops or agroforestry systems(oil palm, rubber, non-timber forest products, andplantations) on soils and land use types that are
unsuitable for cocoa.

GUATEMALA
Building on existing legal and financial frameworks forforest governance developed over the past 15 years,
the Emission Reductions Program in Guatemala will
be a national-level initiative with program activities
covering almost 11 million hectares. The main driversof deforestation are land use change, agricultural
expansion, forest fires, livestock and illegal logging, thehigh opportunity cost of sustainable land use, and thelack of rural employment. The program proposes
engaging in six areas of REDD+ activity: expanding
existing incentives to increase carbon stocks; promoting
sustainable forest management; strengthening
protected areas co-management, agroforestry systems,
and forest plantations; improving governance and law
enforcement on forest lands; and developing a forest
products value chain. In addition to benefitting from the
Guatemalan government’s strong political commitment,a supportive institutional setting for linking these activities
with key government institutions and participation by
local communities has been cultivated.

16

FOREST CARBON PARTNERSHIP FACILITYINDONESIA

Indonesia’s REDD+ Program focuses on East
Kalimantan, an area that contains almost 15 million
hectares of forest, including 400,000 hectares ofpeat lands. The province is promoting its development
objectives through a low-emissions development
approach, which is implemented through provincial
strategies and action plans that build on the region’s
strong leadership in climate change. The program isdesigned to address the overexploitation of forests
linked to timber production, illegal logging, forest
encroachment, and forest fires, through actions that
include improving forest licensing, increasing thenumber of small-scale plantations, and promoting
community-based planning. Also, the program
targets agricultural land to reduce pressure on theforest estate by minimizing the impact of slash-andburn agriculture and the expansion of plantations
and mining.

LAO PDR
Aiming to promote REDD+ through governance,
forest landscapes, and livelihoods, Lao PDR is
preparing an Emissions Reductions Program ina contiguous landscape covering six Northern
provinces: Luang Namtha, Bokeo, Sayabouri,
Oudomxay, Luang Prabang, and Houaphan.
The program area covers over 8 million hectares
across more than one-third of the country.
Deforestation and degradation in the area are
driven directly by shifting cultivation, logging,
agriculture, infrastructure, and mining; andindirectly by weak governance, limited
institutional capacity, poverty, food insecurity,and land tenure insecurity. These drivers andtheir underlying causes will be addressed throughactivities at the provincial level encompassing
governance and law enforcement, forest
landscape management and integrated spatialplanning, livelihood development, payment forenvironmental services, forest restoration, andsustainable forest management certification.

MOZAMBIQUE
MADAGASCAR
Madagascar’s Emission Reductions Program is
explicitly linked to its Integrated Agriculture
Landscape Program, aimed at increasing
productivity in agriculture while improving thesoil quality, conserving water resources, andprotecting vital forests and biodiversity.
Madagascar’s program in the Eastern Humid
Forest Ecoregion covers almost 5 million
hectares, including 14 key watersheds. Becauseof the integrated nature of the program’s design,efforts to address the drivers of deforestation—
primarily unsustainable agricultural expansion,
heavy reliance on wood energy, and logging andmining—are linked directly to efforts to raise
agricultural production, conserve soil and water,and reduce rural poverty. Specific activities inthis context are supporting the shift to moresustainable and productive agricultural
practices, in combination with results-based
payments for forest conservation.

MEXICO
Mexico’s program for a community-basedlandscape approach to reduce greenhouse gas
emissions aims to transform the managementof forests across the landscape through policy
instruments, institutional reforms, andcapacity-building programs. Spanning 8.3
million hectares across five regions (Campeche,
Chiapas, Jalisco, Quintana Roo, and Yucatán),the program will support rural communities inthe development of low-carbon investment
plans that aim to reduce carbon emissions
from deforestation and forest degradation.
The program will scale up the lessons learned
from previous experiences and engage
government and local stakeholders alike toaddress the main drivers of deforestation—
including the lack of public sector coordination,illegal activities, unsustainable forestry farming
practices, land use changes, and the highopportunity cost of sustainable land use options.

The Zambezia Integrated LandscapeManagement Program is an ambitious,
cross-cutting 5.3 million-hectare initiative topromote sustainable rural development in oneof Mozambique’s poorest province, and thefirst of its kind in the country. Small-scale
agriculture is the main driver of deforestationin Zambezia, as smallholders clear forested
lands for crop production, particularly maize
and cassava. Forest extraction for bio-energy
production, particularly charcoal for urban use,
and unsustainable timber harvest, including
through illegal logging to supply to domestic
and international markets, also contribute toboth deforestation and forest degradation. The
program focuses on forest conservation andmanagement, conservation agriculture, biomassenergy management, and land use planning.
These activities will be implemented through a
cooperative approach combining policies,
programs and actions at different levels, andsectors of the government, and involve multiple
stakeholders (government, farmers, communities,
private sector, NGOs) to maximize access tofunds and institutional capacity.

NEPAL
Building on three decades of successfulcommunity forestry programs, Nepal isdeveloping an Emission Reductions Program in 12
districts of Nepal’s Terai Arc Landscape totransform more than 2 million hectares oflandscape and reach a population of 7 million, 80
percent of whom are forest-dependent. The main
drivers of deforestation are unsustainable andillegal wood harvesting, overgrazing, forest fires,and land conversion (encroachment,
resettlement). To address these drivers, Nepal
plans to transfer government-managed forests toparticipatory management models, implement
sustainable management of forest and carbon
enhancement practices, expand alternative
energy initiatives, integrate land use planning,
engage the private sector, and enhancealternative livelihood opportunities focused on
agriculture.

ANNUAL REPORT 201717

LARGE-SCALE
PROGRAMS IN THE
CARBON FUNDNICARAGUA
Nicaragua is developing a 20-year REDD+ Programin the Caribbean Coast Region and the two adjacentreserves: Bosawás and Indio Maíz. The program covers
7 million hectares and aims to cut the deforestation
rate in half through avoided deforestation and forest
degradation, and carbon stock enhancement.
Examples of these activities are forest protection,
sustainable forest management, reforestation, andrestoration, as well as activities that reduce thepressure on native forests, such as agroforestry,silvopastoral systems, and farm intensification.
Complementary measures to improve forest
governance, support sustainable value chains, andstrengthen institutional capacity will also be undertaken.

REPUBLIC OF CONGOThe Emission Reductions Program in the Sangha
and Likouala Departments in Northern Congois anchored in a collaborative public-private
partnership with CIB-OLAM, a leading agribusiness.
The program, which covers 12.4 million hectares,
11.7 million of which are forests, aims to promote asustainable cocoa sector by addressing both directdrivers and underlying causes of deforestation andforest degradation. Emission reductions activities
include engaging forest concessionaires in reduced
impact logging and forest protection; avoiding
conversion of forests with high conservation valuein oil palm and mining concessions; supporting
livelihood improvement through smallholder cocoa
production, through agroforestry systems andsmallholder outgrower schemes, and providing
payment of environmental services for bothindividuals and communities that protect forests.
The program also aims to build governancecapacity and strengthen land-use planning at
national and local levels.

PERU
Peru´s large Emission Reductions Program, spanningmore than 15 million hectares, targets the Amazon
regions of San Martín and Ucayali. These regions areaffected by the main drivers of deforestation in the
Peruvian Amazon: shifting agriculture, medium- tolarge-scale agroindustrial production, and selective
logging. The Ministries of Environment and of
Agriculture and Irrigation, regional governments, andindigenous and private sector organizations will
collaborate on an integrated landscape approach aimed
at improving enabling conditions for sustainable landuse, higher agricultural and forestry productivity, andenhanced competitiveness. These objectives will be
pursued by increasing the institutional, organizational,
and productive capacities, and improving accessto markets.

18

FOREST CARBON PARTNERSHIP FACILITY

VIETNAM
Vietnam’s Emission Reductions
Program encompasses the North-Central
Agro-Ecological Region totaling morethan 5 million hectares across six provincesin the Northern Annamite Mountains.
It aims to reduce emissions throughinterventions in the forestry, energy, andagriculture sectors to promote sustainable
land use and reduce conversion of forest.
Working across key sectors to address
the drivers of deforestation and forest
degradation (agriculture, infrastructure,
shifting cultivation, unsustainable forest
harvesting, and illegal logging), the program
contributes to green growth in Vietnam.

ANNUAL REPORT 201719

3.2. PROGRESS AT THE IMPACT LEVEL

In the following section, progress is reported based on indicators at impact,outcome, and output level, in line with the Performance Measurement
Framework (PMF) as per the FCPF’s Monitoring and Evaluation (M&E)
Framework that was adopted in March 2013. Several indicators, including
those related to Emission Reductions Program implementation under the
Carbon Fund (CF), are not yet applicable. They are therefore not referred to in
the narrative below. Please refer to section 7 (Results Measurement Reporting
Framework) for a tabular aggregation of targets and outputs.
Impact-level Results 1.1: The FCPF has contributed
to the design of a global regime under or outside
the UNFCCC that provides incentives for REDD+
Impact-level indicator 1.1.B: Examples of how FCPF
learning and experience has fed into UNFCCC REDD+
decisions
The World Bank Group’s engagement at the 22nd
Conference of the Parties (COP22) in Marrakesh focusedon helping countries integrate climate change intodevelopment and achieve their Nationally Determined
Contributions (NDCs), unlocking climate finance, greening
the financial sector, and boosting the climate resilience ofcommunities, economies, ecosystems, and infrastructure.
In addition to actively contributing to the agenda for theforest theme day during COP22, the FCPF team supported
the following events: “The Benefits of Global Climate
Funds and the Engagement of IPLCs in Climate Action”;“Unlocking Sustainable Finance”; “Commodity Sourcing
and Forest Protection”; and “Joining Forces to Achieve
SDG15: Delivering on the Global Agenda for Forests,
Climate and Development”.
In May 2017, at the UNFCCC conference in Bonn, theFacility Management Team (FMT) participated in the fourth
UNFCCC voluntary meeting on coordination of support for
implementation of REDD+ activities. At this meeting, theFMT highlighted experiences of engaging with public andprivate sectors in both national and international contexts,
and in combining multiple streams of development andclimate finance to strengthen capacity and facilitate theimplementation of REDD+ readiness and results-based
finance programs. Panel participants also included
national and international representatives from multilateralfinancing entities (Global Environment Facility and Green
Climate Fund (GCF)); countries supporting andimplementing REDD+ programs (Fiji, Dominican Republic,
Democratic Republic of Congo, Uganda, and Germany),
and international stakeholders (UNDP, World Wildlife

20

FOREST CARBON PARTNERSHIP FACILITY

Fund, The Nature Conservancy, Amsterdam Declaration,and the International Renewable Energy Agency (IRENA)).
Building on coordination from previous years, the FCPF
continues to foster active exchange with the GCF. To thisend, the GCF participates in FCPF meetings to facilitatecross-learning and collaboration. In March 2017, the FMT
responded to the call of the GCF for public inputs on thedesign of REDD+ results-based payments. As follow-up to
the submission of these inputs to the GCF, the FMT
participated in a GCF expert workshop held in April 2017,
in Bali. The workshop brought together about 60
attendees from developing and developed countries andinternational organizations to discuss results-based
payments for REDD+ in the GCF and the role of the GCF in
supporting REDD+ actions. The FMT shared lessons
learned from the development and implementation of
FCPF’s Methodological Framework, and the experience
gained in designing institutional and implementation
arrangements for the delivery of results-based payments
in FCPF Carbon Fund programs.

Impact-level Results 1.2: Reduced emissions fromdeforestation and forest degradation from FCPF,
especially Carbon Fund portfolio countries
In FY17, the FCPF placed emphasis on developing thebuilding blocks for the implementation of emission
reductions programs. This includes ongoing work on key
issues such as registries, verifications, and due diligenceon transfer of title.

Impact-level Results 1.3: FCPF has catalyzed thecreation of recognized standards for REDD+
The FCPF has established global standards for REDD+,
including the Readiness Assessment Framework, theCarbon Fund Methodological Framework, and the General
Conditions for Emission Reductions Payment Agreements(ERPAs).

The Readiness Assessment Framework guides REDD+
countries on how to measure and communicate theirprogress on REDD+ readiness, and builds on thefoundation and multistakeholder platforms created during
the readiness preparation phase. It supports countries inmaking the transition from readiness to results-based
payments. The Carbon Fund Methodological Frameworkprovides a global standard for REDD+ transactions at
scale, and guides the piloting of results-based carbon
finance transactions through the FCPF Carbon Fund. The
FCPF is also working with the UNFCCC Secretariat on
coordination of technical issues. The General Conditions
provide the technical and legal underpinning for largescale carbon transactions that will result from future
ERPAs entered into by Carbon Fund Participants andforest countries. The GCF’s performance standards havebeen informed by FCPF’s Methodological Framework.
Impact-level indicator 1.3.A: Examples of non-participant
countries that have adopted FCPF standards in their own
REDD+ process
In Zambia, a terms of reference for a jurisdictional
Strategic Environmental and Social Assessment (SESA)
was finalized. A SESA/Safeguards working group was
also established that will provide oversight of the SESA
process. As described in the previous annual report, the
SESA was part of the preparation of a large-scale Emission
Reductions Program in Zambia’s Eastern province, and wasseen as the best instrument for engaging key stakeholder
groups in structured dialogues about strategy options forthe program.

Impact-level indicator 1.3.B: Common Approachsuccessfully implemented
During FY17, work continued on the implementation of the
FCPF Common Approach. Delivery Partners, the InterAmerican Development Bank (IDB) and the United Nations
Development Programme (UNDP), submitted full reportson the implementation of the Common Approach for thosecountries with active FCPF-financed readiness activities.
Highlights from country-level progress with the Common
Approach include:
In Cambodia, the mid-term report on the program’s work
outlined that the country is committed to developing a
Safeguard Information System (SIS). The country also
finalized and made public its terms of reference for an
Environmental and Social Management Framework(ESMF). In addition, the most recent draft of the country’s
Environment and Natural Resources Code includes
specific references to REDD+, and additional measuresrelated to a Feedback and Grievance Redress Mechanism(FGRM), remedial measures, and social and environmental
assessment and mitigation.
In Guatemala, social and environmental safeguards andpolicies will be applied in accordance with the FCPF
Common Approach. The IDB, as the delivery partner for
Readiness, worked closely with the FMT to prepare theterms of reference of the FGRM, SESA, and ESMF toensure consistency in implementation according to the
Common Approach. The country has also prepared anadvanced draft of the SESA report, including a preliminary
identification of mitigation actions for the identified social

ANNUAL REPORT 201721

and environmental impacts. A series of six workshops todiscuss the potential benefits, challenges, mitigation ofsocial and environment impacts, and the proposal for the
feedback readdress mechanism of the program is being
held with key stakeholders, including Indigenous Peoples
and local communities.
In Peru, a plan for stakeholder participation and involvement
was developed in 2016. The Common Approach served as
the guiding framework for the plan, which was based onreference materials from both the FCPF and the UN-REDD
Programme. The country’s SESA, ESMF, and SIS proposals
were developed between December 2016 and May 2017,
in close coordination with Peru’s Directorate-General for
Climate Change and Desertification, the country’s REDD+
focal point.
In Guyana, the Joint FCPF/UN-REDD Programme
Guidance Note for REDD+ Countries: Establishing andStrengthening Grievance Redress Mechanisms was used
to inform the development of the country’s terms ofreference approved for its GRM. The requirements
regarding stakeholders’ involvement and consultation,
outlined in the Common Approach, were also followed forthe preparation and implementation of Guyana’s inception
workshop, held in October 2016.
Paraguay’s Secretary of Environment is working closelywith UNDP on the country’s Emission Reductions Program.
During a stock-taking mission in July 2016, high-level
representatives from the Ministry of Environment werebriefed on the general features of implementing the FCPF
grant through UNDP, including the Common Approach,the fiduciary and technical advisory role of UNDP, and thealignment with UNDP´s social and environmental
standards. In this context, the SESA will be used as a tool
to adjust REDD+ policies and measures, while the relevant
elements of the ESMF will be integrated with theimplementation framework of Paraguay’s National Forest
Strategy for Sustainable Growth.
Papua New Guinea has established a Social andEnvironmental Safeguards Technical Working Group(TWG) comprised of representatives from different
government departments, civil society organizations(CSOs) and the private sector. The objective of the TWG is
to meet Papua New Guinea’s need to integrate multiple
international safeguard requirements, in particular thoseunder the UNFCCC (Cancún safeguards) and the FCPF(SESA/ESMF), through the adoption of a country approachto safeguards. Against this background, a REDD+
safeguards gap analysis and road map were developedand endorsed by the country’s Climate Change
Development Authority. In addition, a legal assessment ofsafeguards was conducted and a set of recommendations
on linked policies, laws, and regulations subsequently
formulated.

22

FOREST CARBON PARTNERSHIP FACILITYIn Suriname, a consultancy firm was contracted in January
2017 to lead the development of the country’s REDD+
National Vision and Strategy and the SESA/ESMF. A firstnational workshop held in May 2017 sought to identify thebuilding blocks for the country’s draft REDD+ vision,prioritize a preliminary list of relevant policies andmeasures, and define the risks and benefits of thosepriority policies and measures. The workshop brought
together 100 participants, including traditional indigenous
and tribal leaders and “REDD+ Assistants” (whose role is toliaise with indigenous and local communities on REDD+).
Community visits to discuss REDD+ took place in May,
June, and July of the reporting period. A validation
workshop to present the National Vision and Strategy for
REDD+ is planned for October 2017.
The FCPF continues to look for opportunities tocollaborate with other REDD+ initiatives, such as the
UN-REDD Programme and the Climate, Community &Biodiversity Alliance (CCBA), on social and environmental
sustainability issues of mutual concern, including theCommon Approach and its provisions.

Impact-level Results 1.4: FCPF has catalyzed
investments in REDD+ (Carbon Fund and grants)
Impact-level indicator I.4.A: Amount of non-FCPF
investments under the Readiness Preparation Proposal(R-PP) process in Participant Countries and for
implementation of Emission Reductions Programs(e.g., Forest Investment Program (FIP), bilateral donors,
private sector)
The cost of REDD+ readiness often exceeds grant funding
available from the FCPF Readiness Fund. Countries havebeen increasingly successful in leveraging additional
external funding to cover the cost of readiness activities.
As countries demonstrate results in readiness
implementation, strong government ownership of REDD+
objectives, and participatory and inclusive engagement,
they secure the confidence of donors and attract
additional investments, mainly from bilateral andmultilateral sources. Reported non-FCPF funding received
under the R-PP process is captured in table 1 and has
grown compared to last year’s figures. The figures in table
1 are based on progress reporting by countries and may
not be exhaustive. The 27 countries that reported on
non-FCPF investments for readiness together leveraged
cumulative finance of $266 million, while the total volumeof FCPF readiness grants made available to thesecountries amounted to $177 million. Thus, the ratio of
non-FCPF investments for readiness to total FCPF
readiness grants is 3 to 2. It should be noted that thehigher figure for cumulative non-FCPF investments in FY17
is not only due to increased leveraging, but also to
improved reporting by countries compared to FY16.

TABLE 1: AMOUNT OF NON-FCPF INVESTMENTS

RECEIVED UNDER THE R-PP PROCESS FOR REDD+$927,900

Amount Provideda$114,000Government of theUnited States (USAID)$500,000Government of Costa
Rica$200,000Government of Côte
d’Ivoire$245,000

UN-REDD Programme$3,210,000

Government of France(AFD)$2,431,000

Argentina

UN-REDD Programme$571,916

Bhutan

UN-REDD Programme$345,000Government ofGermany (GIZ)$570,465

FIP Investment Plan
Preparation Grant
FIP DGM
Cambodia

Cameroon

Chile

Colombia$1,600,000

UN-REDD Programme
SourceFIP

Government ofGermany (GIZ)
Government of Norway(NORAD)

REDD+ Country

Burkina Faso

Costa Rica

Côte d’Ivoire$30,000,000$250,000$4,500,000

FIP Investment Plan
Preparation Grant$250,000Government of Japan(JICA)$863,160

UN-REDD Programme– FAO$1,176,361

IRD$250,000

EU
Congo, Dem. Rep.

Dominican
Republic$437,000

UNDP$3,110,690

FAO$2,926,450

UNEP$1,346,060

Government ofGermany (GIZ)$845,000Government of
Dominican Republic$432,000$3,000,000

UN-REDD Programme– UNDP-TRAC$1,564,976

UN-REDD Programme– UNEP$64,200

Other (IUCN, WWF, GIZ)

$455,181

Government of
Cameroon (MINEPDED)$169,348

Government of Norway(for Oromia REDD+
readiness program)

UNEP$40,403

Government of Norway(official pledge)$80,000,000

Chile-Mexico Fund

$246,000$180,000

Fiji Ministry for
Fisheries and Forests(MFF)$42,563

IDB
Empresa Minera
Barrick Zaldivar$137,500

Government ofGermany (GIZ)$13,572

Government ofGermany (GIZ)$4,402,000

Gordon and Betty Moore
Foundation$22,800

UN-REDD Programme$4,000,000

Government of
Switzerland - Swiss
State Secretariat of
Economic Affairs(SECO)$400,000

USAID/CNCG$567,544

USAID RCCP

$24,000

BioREDD$518,000

BioREDD$14,070,000

Ethiopia

Fiji

Ghana

Government of theUnited States (USAID/
FCMC)$149,000Government ofGermany (BMUB)/
Winrock/Climate Focus$1,844,000

Moore Foundation$2,480,000

IUCN$24,800

GEF (Corazon
Amazonia)$2,180,000

IDB$200,000

UNDP$487,542

Government of theUnited Kingdom$326,000

Guatemala

GuyanaCARE$12,000

FAO$40,000

Government of Norway$3,110,690

Government ofColombia$3,444,000

Guiana Shield Facility$490,000

Others$6,131,000

Government ofGermany (KfW)$627,000

Guyana REDD+
Investment Fund

$1,708,000

Note: a. It should be noted that figures are based on country reporting and may not be exhaustive.

ANNUAL REPORT 201723

Lao PDR

Madagascar

Government ofGermany (CliPAD
Project through GIZ and
KfW)$15,554,700

Japanese Government(FIM Project, PAREDD
Project, NFIS)$9,000,000

Government ofGermany (GIZ)$12,000

UN-REDD Programme$202,000

FA/PE3/GVT
Nepal$1,349,167

USAID

Nicaragua$965,000Government of Japan(JICA)$2,000Government of theUnited Kingdom (DFID/
SDC)$491,000Government of Finland$360,000

UN-REDD Programme$850,000Government ofGermany (GIZ)$100,000FAO
Peru

Congo, Rep.

Suriname$5,000Gordon and Betty Moore
Foundation$2,010,000

Government ofGermany (KfW)$3,980,000

UN-REDD Programme$960,000

UN-REDD Programme$4,000,000

Government of the
Republic of Congo$600,000

COMIFAC (Regional
REDD+ Project andRegional Project MRV)

$200,000

Amazon Cooperation
Treaty Organization
project$88,400

UN-REDD$52,000

Tanzania

Government of
Norway (Civil Society
Organization Program)$17,000,000

Togo

Government of Togo

$413,900

UN-REDD/FAO$26,000

UgandaVietnam

Combined upfront investment finance typically exceeds
the scale of downstream climate finance that countries
foresee. To date, funding for Emission Reductions
Programs has mainly come from governments, and it’s
essential that countries explore more diverse sources offunding as well as innovative financing options including
bonds, guarantees, and advances.
TABLE 2: AMOUNT OF NON-FCPF INVESTMENTS
RECEIVED FOR IMPLEMENTATION OF ER PROGRAMSREDD+ Country

SourceCameroon

Government ofGermany (KfW)
FIP Investment Plan
Preparation Grant

Chile

Amount Provideda$2,800,000$250,000Government of
Switzerland$1,658,700

GEF$5,863,636

UN-REDD Programme$1,948,670

Australian Development
Corporation$890,797

FERI$50,000$250,000

UN-REDD (targeted
support)$560,000FIP Investment Plan
Preparation Grant
Government of Uganda$1,086,000

UN-REDD$10,178,253

FIP Investment Plan
Preparation Grant

JICA$2,000,000

FIP DGM$4,500,000$1,005,000

FIP$24,000,000

FIP$60,000,000

Côte d'Ivoire

Government ofGermany (BMUB)
Total

Over the past year, an increasing number of countries havestarted actively engaging in the design of future emission
reductions. Countries receive downstream payments fromthe Carbon Fund after emission reductions have beenachieved and verified. However, countries also require
investments to cover substantial upfront financing needs
that are not limited to the forestry sector, but also involvea range of other sectors that affect deforestation andforest degradation, such as agriculture, infrastructure, andmining. Table 2 provides examples of non-FCPF
investments received for implementation of proposed
Emission Reductions Program. The 18 countries thatreported these non-FCPF investments leveraged
cumulative investment finance of $679 million, or an
average of $38 million per country. The figures in table 2
are not exhaustive and only capture reported funding. It
should be noted that the change in this ratio for FY17 is not
only due to increased leveraging, but also to improved
reporting by countries compared to FY16.

Congo, Dem. Rep.
$265,854,008.00

CD2 Corena

FIP Investment Plan
Preparation Grant$4,000,000$250,000$250,000

Note: a. It should be noted that figures are based on country reporting andmay be neither exhaustive nor solely restricted to FCPF program areas in acountry.

24

FOREST CARBON PARTNERSHIP FACILITYFIP DGM
Government of Norway$2,500,000

Congo Basin Forest
Fund (CBFF)$25,000,000

International Tropical
Timber Organization(ITTO)$600,000

CAFI

Dominican
Republic
Ghana

Indonesia$305,000

WWF project "Carbon
Map and Model" fundedby German Ministry ofEnvironment$400,000European Forest
Institute$121,294

UNEP$40,000

Government ofGermany (KfW)$29,371,000

Government ofGermany (GIZ)$22,348,000

FIP$70,000,000

FIP Investment Plan
Preparation Grant$30,000,000

COMIFAC

Lao PDR$250,000FIP DGM$6,500,000

Government ofGermany (KfW)$12,770,000

Government ofGermany (GIZ)$5,683,000

FIP$30,000,000

FIP DGM$4,500,000

FIP Investment Plan
Preparation Grant$250,000Government ofGermany (BMUB)/
Winrock/Climate Focus$1,844,000

GEF$6,000,000

GEF (Corazon
Amazonia)$2,180,000

FIP DGM$4,500,000

Government ofColombia$3,444,000

Government of Norway$15,356,000$25,660,000

FIP$24,000,000

International Bank for
Reconstruction andDevelopment (IBRD)
Government of France(AFD)$2,418,000

FIP DGM$4,500,000

USAID$48,160

UN-REDD$85,000

Japanese Funded
Forest Preservation
Programme (FPP)
Technology Transfer
and Support for trend
analysis of forest landchange, Forest resource
map, biomass andC-Stock estimation andcapacity building$7,800,000

Government ofGermany (GIZ) Forest
Monitoring basedon German Remote
Sensing Technology$555,525

FIP DGMFIP Investment Plan
Preparation Grant
FIP

Guatemala$6,000,000

Madagascar
MexicoPADAP (WB/AFD)
AFD$300,000

FIP$60,000,000

FIP DGM$6,000,000

UN-REDD Programme

Mozambique$108,000,000

FIP Investment Plan
Preparation Grant$650,000$250,000

FIP$24,000,000

Mozbio$46,300,000

Nepal

FIP Investment Plan
Preparation Grant

Nicaragua

GEF

Peru

FIP Investment Plan
Preparation Grant$250,000$1,494,320$250,000

FIP$50,000,000$5,500,000

FIP DGM$5,500,000$250,000

IADB to FIP$450,000$59,970,000

Gordon and Betty Moore
Foundation for biomass
map$126,063

UN-REDD Programme$40,000

IUCN Global Gender
Office$15,000

FIP Investment Plan
Preparation Grant$250,000

Togo

GEF

$6,000,000

Government ofGermany (GIZ/
ProREDD)$1,376,000

World Bank /PGICTFIP/DGM$4,500,000

FIP$24,000,000

Vietnam

UN-REDD Programme$677,513

SNV (Forests and Delta
Programe)$340,000

JICA
Total

$137,000$180,000$679,267,421.00

ANNUAL REPORT 201725

Impact-level Result I.5: The FCPF has generated
momentum to address governance and transparency
issues and policy reforms related to sustainable
forest resource management and REDD+
Impact-level indicator I.5.B: Number of policy reforms
initiated, completed, or under way, complying with REDD+
standards in Participants’ country, potentially include
issues of land tenure
FCPF Readiness Grants make important contributions tonationally driven policy reform that is part of larger,
dynamic national processes. In many countries, FCPF
REDD+ readiness funding is essential in promoting
capacity building, conducting analytical work, developing
processes for social inclusion, and undertaking highly
technical work related to forest carbon assessments andmonitoring. While these activities support and feed policy
reform to strengthen REDD+, the initiation and executionof these reforms require collective action across sectors
and at national and subnational levels, which sometimes
goes beyond the scope of FCPF funding. The following
examples provide a snapshot of important, country-driven
policy reform introduced in FY17 that both guides andinforms REDD+, but should be viewed in the context ofbroader national processes.
In Argentina, intersectoral coordination was strengthened
in July 2016 with the replacement of the Governmental

26

FOREST CARBON PARTNERSHIP FACILITY

Commission on Climate Change with a National Cabinet
for Climate Change. The new National Cabinet is charged
with preparing the country for climate change bydeveloping both a national plan of response and sectoral
action plans at the ministerial level for mitigation andadaptation in vulnerable sectors.
In Belize, the Forestry Department is in the process ofrevising forestry legislation as part of broader forest
reform efforts to strengthen legal frameworks, improveforest management, and increase monitoring andenforcement of forest activities. New amendments to theForest Act impose stiffer fines and penalties for forest
offenses. These amendments are intended to deter illegal
and unsustainable timber and non-timber extractions, andhelp strengthen the country’s legal capacity to tackle
illegal logging and related crimes.
In Bhutan, the new Economic Development Policy,
unveiled early 2017, recognizes the importance of the
agriculture sector in the development process. The Policy
focuses on raising agricultural productivity to achieve
national food security, and includes a commitment tosustainably manage natural resources and promote green
and climate-smart agriculture. The country also revised its
2006 Forest and Nature Conservation Rules andRegulations. All chainsaw and mobile sawmill owners
across the country must now register with Bhutan’s
Department of Forest and Park Services to obtain acertificate of registration to operate. In addition, the rural
timber entitlement was updated, setting maximum
allowances for subsidized timber use in new construction.
In Cambodia, the country’s National Protected Area
Strategic Management Plan (2017–30) has been revised toreflect the new protected area system, as well as theenvironmental and jurisdictional reforms of the Royal
Government of Cambodia. The revised Management Plan
aims to safeguard protected areas that contribute to thecountry’s economy and sustainable development throughthe conservation and sustainable use of its biological,
natural, and cultural resources and other ecosystemservices. Cambodia’s National REDD+ Strategy, developed
through an inclusive and participatory consultation
process, was finalized and launched in August 2016, at anational validation workshop organized by the National
REDD+ Taskforce Secretariat. In addition, forest law
enforcement was brought under the responsibility of thesubnational government through a Prime Ministerial
Instruction, which will be followed by a formal decree.
In Chile, several pieces of legislation have been developed
to support a consistent cross-sectoral policy approach,and incentivize the reduction of emissions fromdeforestation and forest degradation. The government
presented the National Action Plan for Climate Change
2017–22 (NCCAP II), which was developed collectively by
13 ministries and other relevant entities, and builds on thework of the country’s former Action Plan on Climate
Change (NCCAP). NCCAP II focuses on the effective
implementation of climate change adaptation andvulnerability reduction measures, while contributing to thecountry‘s international commitments under the UNFCCC.
Furthermore, the National Strategy for Climate Change
and Vegetable Resources 2017–25 was validated by theCouncil of Ministers for Sustainability in November 2016,
and an amended law on Native Forest Recovery andForestry Development came into force, focusing on
improved regulation of direct financial incentives forforestry management and native forest preservation. There
has also been discussion of a new law on Forestry
Development for Plantations, which is expected to beenacted in 2017, and would fall under the country’s overall
Forestry Policy for 2015–35.
In Costa Rica, the President and the Minister ofEnvironment signed an Executive Decree for the
implementation of Costa Rica’s National REDD+ Strategy.
This was followed by additional decrees that modified thecountry’s existing Forestry Law to improve Indigenous
Peoples’ access to Costa Rica’s Payment for Ecosystem
Services Program, and that brought into force Costa Rica’s
Natural Resources Surveillance Committees. These
committees define measures to govern the monitoring
and control of environmental and natural resources.

ANNUAL REPORT 201727

In the Republic of Congo, the government joined theTropical Forest Alliance (TFA) in July 2016, andsubsequently signed the TFA 2020 Marrakech Declarationfor Sustainable Development in the Oil Palm Sector in
November 2016, as well as a Memorandum on Sustainable
Palm Oil Production in March 2017. The country is working
on developing national principles and an action plan for a
responsible palm oil sector. The Republic of Congo is also
revising its Law on Agriculture to take into account its
National REDD+ Strategy and improve policy for forestsmart development. The Ministry of Agriculture is working
with the FAO to mobilize support for finalizing the law,which is expected to happen in early 2018. In addition, theRepublic of Congo is finalizing a comprehensive andambitious National REDD+ Investment Plan for submission
to the Central African Forest Initiative in November 2017,and developing a new Forest Code.
In El Salvador, a proposed Forestry Law reform is before
the Legislative Assembly for approval. It proposes a seriesof changes to forest protection that extends restricted use
areas in properties that do not have management plans,
thereby significantly increasing the restoration territories
of protected areas. The country is also formulating andconducting consultations on its first Climate Change Law,
which will regulate and foster reforestation activities.
El Salvador reaffirmed its commitment to restore
1 million hectares of degraded land by 2030 when
launching a National Strategy for Landscapes andEcosystems Restoration.
In Ethiopia, the Council of Ministers has approved arevised Forest Development, Conservation and Utilization
Proclamation, which is in front of the National Parliament
for further review. The revised legislation is expected to
improve community rights related to natural andplantation forests under communities’ management,
private investment in the sector, and carbon rights issues,particularly for private and community forests. The Oromia
Proclamation, which establishes the region’s Environment,
Forest, and Climate Change Authority, has legallyinstitutionalized the forest sector in the region, and definesarrangements and responsibilities for forest conservation,
development, and utilization at the regional, zonal, andworeda (district) levels. The government of Ethiopia is also
developing a National Land Use Policy and Integrated
Land Use Plan, which is hosted within the Prime Minister’s
Office. Once approved and operational, the Policy andPlan are expected to improve economic sector
coordination, and enhance forest development andconservation. In addition, the Ministry of Environment,
Forest and Climate Change is developing a Forest Fund
Proclamation, which is expected to establish agovernment-managed forest fund to promote forest
sector investments.

28

FOREST CARBON PARTNERSHIP FACILITY

In Ghana, the Forestry Development Master Plan has been
prepared as a basis for realizing Ghana’s Forest andWildlife Policy. In addition, a new Framework on Tree
Tenure and Benefit Sharing Scheme will design options fortree tenure regimes with accompanying benefit-sharing
mechanisms, to be developed in consultation with a wide
range of stakeholders.
In Guatemala, the National Action Plan for Adaptation and
Mitigation to Climate Change was approved in November
2016. Several other relevant policy initiatives for REDD+
are in various stages of discussion, including an Integral
Rural Development Law; a Territorial Planning Policy that
addresses climate change adaptation and mitigation at the
local, municipal, and national levels; a National Policy on
Indigenous Peoples and Intercultural Relations, which aims
to guarantee the rights of Indigenous Peoples incompliance with a series of international conventions andPeace Agreements; and a Human Settlements Policy inProtected Areas, which is an internal policy of Guatemala’s
National Council for Protected Areas that establishes
guidelines for the reduction of conflicts related to humansettlements in protected areas.
In Honduras, the government is developing a National
Policy for Agroforestry with a sustainable landscapeapproach that has five overarching objectives: reducing
deforestation and degradation; promoting restoration
and reforestation; creating incentives for sustainableproduction; reducing emissions in production chains; andimplementing comprehensive watershed management.
The policy is part of a national dialogue with different
government sectors, including environment, forestry,
and agriculture, and other national stakeholders.
In Indonesia, the president created a Peatland Restoration
Agency in 2016. Further, the Ministry of Environment andForestry issued new regulations for the Management ofForest and Land Fire, involving fire bans in several
provinces and a Climate Village Program that supports
local communities in becoming more engaged in climatechange mitigation and adaptation efforts. The ministry is
also seeking to extend, and eventually make permanent, a
moratorium on expanding oil palm onto natural forest andpeatlands.
In Lao PDR, the Land Law continues to be under revisionand the Forestry Law is being revised to correspond withrevisions in the Land Law, and account for payments forenvironmental services and REDD+. Similarly, Decree No.
38 is being revised to update provisions of the Forestry
and Forest Resources Development Fund.
In Liberia, a draft National Climate Change Policy (NCCP)
was reviewed by the National Climate Change Steering
Committee and validated by stakeholders in the sector,
and will be resubmitted for approval later in theyear. Additionally, in June 2017, the Committee approved

Liberia’s National REDD+ Strategy, which is expected to be
implemented via national management arrangements.
Liberia also signed the Tropical Forest Alliance’s 2020
Principles in Marrakech, in November 2016, along with the
Declaration for Sustainable Oil Palm Development. Partsof this Declaration form the basis for the country’s
Agriculture Transformation Agenda being implemented by
the Ministry of Agriculture. Other ongoing policy initiatives
linked to Liberia’s NCCP include a draft National Wildlife
Law; a new Act to establish the Gola Forest National Park;a Land Rights Act; and a Mining Act that will help reconcile
competing land uses.

promulgation of the country’s Convention on International
Trade in Endangered Species of Wild Fauna and Flora(CITES) Act in 2017, which adapts the CITES provisions to
the Nepalese context. In addition, the Department of
National Park and Wildlife Conservation, in coordination
with the REDD+ Implementation Centre, has prepared andfield-tested a Biodiversity Monitoring Protocol for REDD+.
It will be helpful in addressing environmental safeguards,
particularly in the country’s Emission Reductions Programarea.

In Mozambique, Operação Tronco was launched in March
2017, which is the first forest intelligence and enforcement
operation of its kind in the country. It has already led to thecancellation of several timber operation licenses and theseizure of equipment and more than 150,000 cubic metersof wood on account of infractions, such as theunauthorized stocking and trading of timber. Fees fromfines will be channeled to Mozambique’s National
Sustainable Development Fund to finance ruraldevelopment activities, among others, sustainable energy
enterprises, small-scale agribusinesses, and tourism
lodges. The government is looking to scale up operations,using Operação Tronco as a model for tackling the illegal
trade of other forest and wildlife products.

In Nigeria, a new Economic Recovery and Growth Plan
(2017–22) charts the way to a low-carbon, high-growth,
climate-resilient development path, including atransformation of the agriculture sector to reduce its roleas the leading driver of deforestation. The country’s
Agriculture Promotion Policy (2016–20) intends to boost
productivity through a climate-smart approach to minimize
greenhouse gas (GHG) emissions. Other relevant policy
developments include a REDD+ Strategy for Nigeria’s
Cross River State and the adoption of a REDD+-friendly
policy to reduce pressure on the Cross River National Parkand Ekuri Forest; a draft Climate Change Bill that is
expected to pass in 2017; a review of Nigeria’s National
Forest Policy; and an update of the country’s National
Biodiversity Action Plan, which sets targets for biodiversity
and related livelihoods.

In Nepal, the government approved the 2016 Forestry
Sector Strategy and the country’s Forest Act of 1993 wasamended to incorporate carbon service as a recognized
forest ecosystem service. These were followed by the

In Pakistan, the country’s first National Forest Policy wasapproved in November 2016 by the Council of Common
Interest under the chairmanship of the Prime Minister. The
policy aims to expand national forest coverage, protected

ANNUAL REPORT 201729

areas, natural habitats, and green areas for restoration of
ecological functions and their related economic benefits,
while meeting Pakistan’s obligations under international
forest agreements. The Forest Policy also mainstreams
REDD+ as a tool to curb deforestation, enhance forest
cover, and preserve forest carbon stocks. In addition,
Pakistan’s Cabinet approved the country’s 2016 Climate
Change Act, which will be introduced in Parliament next
session for enactment. The Act proposes creating a
Climate Change Council headed by the Prime Minister,with representation from the subnational governments atthe chief ministerial level. It also seeks to establish a
Climate Change Authority and Climate Change Fund. The
Fund will mobilize resources from both domestic andinternational sources to support mitigation and adaptation
initiatives in the country. Further, in 2017, Pakistan’s federal
government launched the Green Pakistan Programme,with support from all the provinces. The Programme aims
to add 100 million indigenous plants throughout thecountry over the next five years and reorganize wildlife
departments at provincial and territorial levels.
In Peru, the National Forestry and Climate Change
Strategy has been approved, which systematicallydiagnoses the major threats to Peru’s forests and lays out
a plan to mitigate them. The strategy takes an integrated
landscape approach to forest conservation in the context
of climate change mitigation and adaptation. A new
regulation on the country’s National Payments for
Ecosystem Services (PES) ensures that PES is sanctioned
under Peruvian law. Further, Peru’s new Guidance on
Biodiversity Offsets for Andean Ecosystems aims to help
operationalize an existing policy that ensures all
development project activities do not result in a net loss of
biodiversity. The country has also passed a Law on Priorand Informed Consent for Indigenous and Native
Communities and is developing a National Forest Policy
and a new Forestry and Wildlife Law.
In Suriname, a commission is currently working to revise
the country’s Mining Decree. This revision, led by the
Ministry of Natural Resources, seeks to align the Decreewith multilateral environmental agreements andconventions to which Suriname has committed. The
country is also in the advanced stages of ratifying its
Minamata Convention on Mercury.
In Togo, a 2016 national decree established three official
entities for REDD+ management in the country: the
National REDD+ Committee, the National REDD+
Coordination Unit, and the National REDD+ Working
Group. Togo is also engaged in several institutional

30

FOREST CARBON PARTNERSHIP FACILITY

reforms that aim to integrate REDD+ into the country’s
policies and programs, among others, through the creationof a Rural Electricity and Renewable Energy Agency. This
agency will seek to implement a national, $80 billion solar
energy program, which will be of relevance to thecountry’s REDD+ Strategy, which focuses on the link
between forests and energy. Togo is in the process ofadopting a new Agriculture Policy for the agriculture
sector, which will integrate principles of sustainable
development into natural resources management.
In Uruguay, a new National Climate Change Policy(2017–50) proposes to promote the conservation,
recovery, and restoration of natural ecosystems, and theprovision of ecosystem goods and services, based on
adaptive management and sustainable production andconsumption practices. It will also seek to incorporate
climate change mitigation and adaptation in the country‘s
protected areas and relevant ecosystems, including native
forests. The country’s National Biodiversity Strategy(2016–20) includes targets to address ecosystem
resilience and the contribution of biodiversity to carbon
stocks through ecosystem conservation and restoration.
Furthermore, Uruguay’s National Water Plan (2016–30)
links sustainable water use to the need to preserve andrestore ecosystems associated with the quality andquantity of water resources, particularly native forests.
In Vietnam, the Prime Minister approved an updated
version of the 2012 National REDD+ Action Program. The
update covers the period 2017–30 and indicates acommitment by the government to work with theinternational community on taking climate action to
improve people’s livelihoods and the environment. One of
the Program’s main objectives is to increase forest cover
to up to 45 percent of the national territory. Further, inJanuary 2017, Vietnam’s Central Committee—the highest
authority within the Communist Party—issued a new
Directive on Forest Management, Protection andDevelopment that aims to increase Vietnam’s leadership in
forest management and protection. Backed by thishigh-level political commitment, the Directive will mobilize
government agencies, businesses, and civil society at alllevels to improve the effectiveness and efficiency of forest
protection and development in Vietnam. Other policy
initiatives over the past year that have helped strength theenabling environment for REDD+ include a new Forest
Certification Scheme Program (2016–20); a National
Program on Sustainable Poverty Reduction (2016–20); a
Sustainable Forestry Development Target Program(2016–20); and an amendment to Vietnam’s policy on
payment for forest environmental services.

3.3. PROGRESS AT THE OUTCOME LEVEL
Outcome-level Result 1: Efforts successfully
undertaken by countries with FCPF support toachieve emission reductions from deforestation
and/or forest degradation, and to benefit frompossible future systems of positive incentives for
REDD+ (Readiness Fund)
Outcome-level indicator 1.A: Number of Readiness
Packages endorsed by PC (Readiness Packages are in linewith Assessment Framework)
Target: 2 Readiness Packages by 2014, 8 Readiness
Packages by 2015, 20+ Readiness Packages by 2018
In FY17, FCPF’s Participants Committee (PC) adopted
resolutions endorsing six new Readiness Packages thisyear—from Chile, Ghana, Mozambique, Nepal, theRepublic of Congo, and Vietnam—resulting in a fund totalof nine to date. The PC noted the high quality of theinformation provided in the Readiness Packages and therigor of the self-assessments. It also recognized goodpractices demonstrated on different aspects of readiness
implementation in each of the six countries. Chile wasrecognized for effective cross-sectoral coordination andfor pioneering methodologies to measure and monitor
forest degradation; Ghana was commended for its
achievements in mainstreaming REDD+ in national climatechange policies and measures along with its engagementwith the private sector; Mozambique’s team wasrecognized for taking a programmatic, landscape-levelapproach to REDD+; Nepal was praised for its
comprehensive stakeholder engagement in the readinessprocess; the Republic of Congo was commended for its

advancements on technical issues related to carbon
accounting, including reference levels and MRV; andVietnam was applauded for formulating provincial-level
REDD+ action plans based on a subnational analysis ofland tenure and drivers of deforestation and degradation.
Since the first Readiness Package was submitted andendorsed in 2015, overall progress on achieving the
anticipated number of Readiness Packages has been slow.
However, by the end of 2017, it is expected that anotherfive Readiness Packages will be submitted, and several
more are anticipated in the first half of 2018. The parallel
progress on Emission Reductions Program design has
helped countries focus, strengthen, and even accelerate
their readiness activities as gaps in institutional andtechnical arrangements, as well as policy reform
objectives, have become more concrete.

Outcome-level Result 2: Selected FCPF countries
demonstrate key elements (carbon accounting,programmatic elements, and pricing) ofperformance-based payment systems for ERs
generated from REDD+ activities with a view toensuring equitable benefit sharing and promoting
future large-scale positive incentives for REDD+(Carbon Fund)In FY17, countries continued work on key elements ofperformance-based payment systems—developing draft
benefit-sharing plans, exploring pricing options, andaddressing the complexities of carbon accounting.

ANNUAL REPORT 201731

Outcome-level Result 3: Engagement of all
stakeholders (governments, CSOs, Indigenous
Peoples, private sector, and delivery partners) tosustain or enhance livelihoods of local communities
and to conserve biodiversity within the approach to
REDD+
Outcome-level indicator 3.A: Design of national REDD+
strategies, monitoring systems, and Emission Reductions
Programs addresses indicators for enhancement of
livelihoods of local communities and for biodiversity
conservation
As countries move ahead on sustainable, low-carbon
development trajectories, it has become standard practice
to include objectives for climate change mitigation andadaptation that can bring prosperity to the rural poor.
Consequently, national REDD+ strategies and thesubsequent Emission Reductions Programs consistently
address the enhancement of local communities. Countries
have been keen to demonstrate that the strategic
objectives and interventions outlined in REDD+ strategies
catalyze climate benefits along with other environmental
benefits, including biodiversity conservation.
In Mozambique, the Ministry of Land, Environment and
Rural Development (MITADER) finalized and approved anational REDD+ Strategy in November 2016 that focuseson conserving the country’s wooded areas, promoting
sustainable development, reducing deforestation byenhancing forest resilience to climate change, andincreasing carbon stocks—all through an integrated
approach to rural development. This Strategy will avoid
the emission of 170 million (metric) tons of carbon dioxide(MtCO2) per year until 2030. It is divided into six
complementary pillars that focus on: i) improvement ofgovernance, including land-use planning; ii) sustainable
management of forests; iii) alternative sources of energy;iv) protection of conservation areas; v) forest restoration;and vi) sustainable agriculture. The Strategy recognizes
the importance of indicators specifically linked to theimplementation of safeguards, among others, those
focused on community participation and involvement,poverty reduction and benefit sharing, land use plans andland use rights, and forest resources.

32

FOREST CARBON PARTNERSHIP FACILITY

Outcome-level Results 4: Knowledge gained in thedevelopment of the FCPF and implementation of
Readiness Preparation Proposals (under theReadiness Fund) and Emission Reductions Programs(under the Carbon Fund) broadly shared,
disseminated, and used by international REDD+
practitioners
Outcome-level indicator 4.A: Number of new countries/
stakeholders requesting to become FCPF members/
observers
Requests for participation in FCPF meetings in an observerrole have increased from many sources, including nonparticipant countries, civil society, Indigenous Peoples,
academia, and the private sector, indicating the continued
significance of the Facility in piloting REDD+. This interest
generally reflects the increasing maturity in REDD+
readiness that several countries are demonstrating withthe continued submission of mid-term progress reports
and Readiness Packages, and the pioneering work they arecarrying out under the Carbon Fund in the development oflarge-scale REDD+ programs.
In response to the requests to increase the number ofSouthern CSO and Indigenous Peoples observers to the
Carbon Fund, Participants agreed to support participationof additional observers on a case-by-case basis (inaccordance with the Rules of Procedure), but to otherwise
maintain the status quo and continue with ten fixed
observers. Participants felt that representation fromadditional observers would be most effective if such
additional observers were to bring knowledge andexpertise on the specific countries that present Emission
Reductions Program Documents at a given Carbon Fund
meeting, rather than adding more fixed observers.
Carbon Fund Participants also agreed to cover, for a
one-year trial period, the cost of participation of non-profit
organizations that serve as Carbon Fund observers, if
needed and requested. Currently, non-profit organizations
serve in the Northern CSOs, International Organizations,and, sometimes, the private sector seats. In addition,noting the multiple facets of the private sector, Carbon
Fund Participants also requested the private sector
observer to increase outreach to other, relevant private
sector actors, and strive to include both northern andsouthern perspectives in their representation. To help
ensure this breadth of perspectives, the Carbon Fund
Participants also authorized the FMT to consider on an
ad-hoc basis requests from an additional private sector
actor, especially those focused on sustainablecommodities, to attend Carbon Fund meetings.

Box 1: Practical Application of the Methodological Framework
Over the past year, the FCPF has continued to work closely with countries to help them put the Carbon
Fund’s Methodological Framework into practice as they move from readiness efforts to REDD+
implementation.
The Framework is a set of 37 criteria and related indicators associated with five major aspectsof Emission Reductions Programs: level of ambition, carbon accounting, safeguards, sustainable
program design and implementation, and Emission Reductions Program transactions. By June 2017,seven countries had presented their Emission Reductions Program Documents to the Carbon Fund,and it turned out many of the questions and challenges they had encountered when applying the
Framework to real-world programs were related to carbon accounting.
In April 2017, the FCPF brought together 30 participants from REDD+ countries in Rome to identify
specific gaps they had observed while working with the Methodological Framework. During thisworkshop, participants flagged 19 issues and proposed several potential areas for additional guidanceor clarification, especially related to carbon accounting, the establishment of reference levels, analysis
of uncertainty, and technical assessment and knowledge sharing.
The FMT translated all these workshop recommendations into a draft action plan that was presented
at the Carbon Fund meeting held in Paris, in June 2017, where Participants provided inputs into the
proposed plan. The feedback focused on clarifying the system technical experts use to review and rate
Emission Reductions Program Documents; increasing the role of remote sensing experts in program
review as needed; fostering information exchange between review committees and REDD+ countries;
providing countries with early technical guidance regarding uncertainty analysis; and improving
consistency between processes at the national and Emission Reductions Program level.

Box 2: New Forest Monitoring Training a Hit Among REDD+ Countries
More than 750 REDD+ practitioners from 90 countries have improved their forest monitoring skills using a
specialized training program launched in 2016 by the FCPF, in partnership with Wageningen University and the Global
Observation of Forest and Land Cover Dynamics (GOFC-GOLD) Initiative. The program, made up of 14 self-guided
modules with practical country examples and training exercises, was designed to help countries improve forest
monitoring and their capacity to develop reference emission levels and measure, report, and verify the results from
REDD+ activities.
“There was a wide range of technical materials available globally, but it wasn’t user-friendly, or easily accessible anduseful for REDD+ countries. What we have done is develop a comprehensive set of training materials that aretechnically robust yet easy to use, and useful in a developing country context,” says Alexander Lotsch, Senior Carbon
Finance Specialist for the World Bank Group.
FCPF, Wageningen University, and GOFC-GOLD brought together more than 30 world-renowned experts to coauthor the training material, and a team of independent reviewers to help ensure consistency with establishedinternational guidance on forest monitoring. The modules cover, among other topics, REDD+ monitoring design andpolicy context, assessing the drivers of deforestation and forest degradation, assessing forest data, setting forest
reference levels, and reporting on REDD+ performance. The materials are designed to be used in combination with
the FCPF REDD+ Decision Support Tool and GOFC-GOLD Sourcebook, as well as technical guidance from the Global
Forest Observation Initiative, SilvaCarbon, Boston University, and the Food and Agriculture Organization of the UN,
among several other regional and international partners. The training program is regularly updated and freely
available online in English, French, and Spanish under a Creative Commons license.
The modular structure of the content has allowed the FCPF and its partners to tailor the program to different
audiences in a variety of settings, including four regional forest monitoring workshops that trained 160 participantsfrom 43 countries, and catalyzed dozens of South-South exchanges in the months after the training workshops.
Innovative e-learning tools have also been developed, such as a popular series of seven live webinars given from
April to June 2017, and several recorded lectures made available on YouTube. These materials are also accessible
on both the FCPF and GOFC-GOLD websites.

ANNUAL REPORT 201733

Outcome-level indicator 4.B: Examples of utilization of /or reference to FCPF knowledge products
In FY17, the FCPF Secretariat continued to focus onproviding customized support to countries that werepreparing Readiness Packages as well as Emission
Reductions Program Documents for presentation to the
Carbon Fund. Several countries received technicalassistance to respond to the criteria and indicators of the
Carbon Fund Methodological Framework.
During the reporting period, 12 countries used the FCPF’s
Readiness Assessment Framework to prepare their
mid-term progress reports while others, including Ethiopia,
Mozambique, and the Republic of Congo, reported thatthey had used it for multistakeholder self-assessments
related to Readiness Package preparation. Some countries(i.e., the Democratic Republic of Congo, Côte d’Ivoire, andthe Republic of Congo) also noted that they had applied
the Methodological Framework, and two countries (theDemocratic Republic of Congo and the Republic ofCongo) specifically reported using the Buffer Guidelines inthe development of Emission Reductions Programs.
In response to countries’ growing demand for guidanceon the technical aspects of carbon accounting, the FCPF
also launched a series of face-to-face regional workshops
and a webinar series to help countries develop REDD+
MRV systems, which are a critical pillar of Emission
Reductions Programs.
A well-received knowledge product in FY17 was the study
Emissions Trading Registries: Guidance on Regulation,
Development, and Administration, which was jointly
published by the Partnership for Market Readiness and the
FCPF. Given the length of time and capacity needed for

34

FOREST CARBON PARTNERSHIP FACILITY

the development of a registry, it is essential for countries
that are in the process of designing market mechanisms tofactor in specific regulatory, administrative, functional, andtechnical aspects of registry development. Against thisbackdrop, and to further facilitate future registry design
and implementation, the study provides policy makers andother stakeholders with technical insights and guidance on
how to support country-specific decision making andactivities related to registry development.
Building on FCPF work in cocoa-producing countries—
Côte d’Ivoire, Ghana, and the Republic of Congo—a newreport presented a first set of principles for achieving
sustainable, deforestation-free cocoa production.
Eliminating Deforestation from the Cocoa Supply
Chain analyzes current sustainability projects and bestpractices in the cocoa sector and makes the business casefor moving toward deforestation-free production models.
The report, released by the BioCarbon Fund andthe FCPF together with the World Cocoa
Foundation and Climate Focus, describes overarching
principles and key strategies that stakeholders canimplement to lay the groundwork for deforestation-free
production in the cocoa sector. Throughout 2017, theWorld Cocoa Foundation and the leading cocoa producers
will work to develop a global public-private framework ofaction to address deforestation in the cocoa supply chain.
The FCPF will work in parallel to support the effort withanalytical work and consultations. This framework is
expected to be presented at the United Nations Climate
Change conference to be held in Bonn, Germany, in
November 2017.

3.4. PROGRESS BY OUTPUT
Output 1.1: Readiness Assessment Framework is
agreed upon and disseminatedOutput 1.3: Countries progress adequately on
implementation of their R-PP and Grant Agreements

Output-level indicator 1.1: Existence of published
Assessment Framework on the Readiness Package

Output-level indicator 1.3.a: Number of mid-term progress
reports presented by countries that follow agreed
reporting standards and are presented in a timely manner

The Readiness Assessment Framework was adopted in
FY13, in accordance with the target set in the FCPF M&E
Framework. As reported in detail in previous annual
reports, countries have considered its application a helpful
tool for self-assessment of readiness progress.

Output 1.2: Countries demonstrate an adequate
plan to achieve preparedness for REDD+ funding
Output-level indicator 1.2.a: Number of ReadinessPreparation Proposal (R-PPs) endorsed by the ParticipantsCommittee
Target: 30+ Readiness Preparation Proposals by 2015
The FCPF includes 47 REDD+ Country Participants, ofwhich 46 have been actively engaged in the partnership.
The Participants Committee has endorsed the ReadinessPreparation Proposals of 45 countries, the last round of
R-PPs being endorsed in FY14. This number well exceeds
the PMF’s target. In FY17, one previously inactive country,
Gabon, has reengaged in the partnership, and is expected
to submit a Readiness Preparation Proposal in FY18.
Output-level indicator 1.2.b: Number of ReadinessPreparation Grant Agreements signed
Target: 30+ signed Grant Agreements by 2015
In FY17, Argentina, Belize, and the Central African Republic
signed three additional Readiness Preparation Grants,
amounting to $11 million. Thus, of the 45 REDD+ Country
Participants eligible for Readiness financing, a total of 42
had signed their Readiness Preparation Grants by the endof FY17, representing $159.2 million1 in grant resources
allocated for REDD+ Readiness Preparation. The numberof signed Grants lies above the PMF target of 30+ grants
signed by 2015.2 Two additional countries, Paraguay and
Kenya, advanced preparations for Grant signature in FY17
and could sign in FY18.

Progress on reaching the mid-term of readiness
implementation was mixed in FY17. Although 12 countries
submitted mid-term reports (Bhutan, Cambodia, Cameroon,
Colombia, Côte d’Ivoire, Honduras, Lao PDR, Madagascar,
Nicaragua, Peru, Sudan, and Papua New Guinea), 9
mid-term reports are overdue. Upon reaching the midtermof readiness implementation, countries can request
additional Grant funding of up to $5 million. In FY17, all of
the countries that submitted mid-term reports also
requested, and received, additional Readiness funding.
However, progress in moving from the allocation of
additional funding to the actual signing of additional Grant
Agreements has lagged for several countries. In FY17,
Grant Agreements representing an additional $5 million
were signed for four countries (Indonesia, Madagascar,
Nepal, and Vietnam). Four Grants allocated in FY16 remain
pending (Chile, Guatemala, Mexico, and Uganda).
In FY18, an increased focus on portfolio monitoring should
contribute to reducing unnecessary Grant processing
delays across the portfolio.
Output-level indicator 1.3.b: Percentage of countries thatare achieving planned milestones according to approved
Readiness Preparation Grant (> $3.4 million)
At the time of print, reports from the World Bank (forexample, Grant Reporting and Monitoring reports) andfrom other Delivery Partners were, for the most part, not
yet available, as they are generally due by the end of
October of each year.
Output-level indicator 1.3.c: Percentage of countries thatare overall achieving planned milestones for
subcomponent as per country annual reporting scale
According to the PMF, the target is for 100 percent ofcountries to rate their performance in implementing
Readiness Preparation Proposals at subcomponent levelas “progressing well” or above for 80 percent of
subcomponents by 2018. This would indicate expected
progress from the earlier 2015 target of 50 percent ofcountries rating performance at subcomponent level as“further development required” or above for 50 percent of
subcomponents.

1 These figures do not include additional funding of $5 million.
2 The original PMF did not take into account an expanded number of REDD+ Country Participants.

ANNUAL REPORT 201735

Of the 42 countries with signed Readiness Grant
Agreements, 39 Grants have been under implementation
for at least one year, and thus countries are due to reporton annual implementation progress. However, by the print
deadline for the FY17 FCPF Annual Report, only 28
countries had submitted their Country Progress Reports(or a recent mid-term progress report or Readiness
Package, which also include a self-assessment). Of these28 countries, 93 percent rated their performance as“progressing well” or above. Although this figure lies above
the PMF target for 2015, the data may not be fully
representative of the overall portfolio performance, as
better performing countries tend to provide more timely
and consistent reports. More specifically, 13 countries
reported that they have made significant progress against
planned milestones (Cambodia, Chile, Colombia, theDemocratic Republic of Congo, the Republic of Congo,
Costa Rica, Ghana, Guatemala, Nepal, Pakistan, Papua
New Guinea, Sudan, and Vanuatu).
Another 13 countries assessed themselves as progressing
well, although further development is needed for someplanned milestones (Argentina, Bhutan, Cameroon, Côte
d’Ivoire, the Dominican Republic, El Salvador, Honduras,
Lao PDR, Madagascar, Nicaragua, Peru, Togo, andVietnam), and 2 countries reported that further
development is needed to reach planned Readinessmilestones (Guyana and Suriname).
Reporting on this indicator is based on self-assessments,
which may result in inconsistencies across country reports.
The new M&E Framework will aim to address this challenge.
Output-level indicator 1.3.d: Percentage of countries witha disbursement rate that is in line with agreed ReadinessPreparation Grant (>$3.4 million) disbursement plans ofGrant Agreement (up to 10 percent variance with plans)
Disbursement rates have steadily improved over the past
five years. At the end of FY17, grant disbursements fromthe Readiness Fund amounted to $125 million (compared
to $90 million at the end of FY16), including transfers of$35.4 million to Delivery Partners (IDB and UNDP) otherthan the World Bank. A key achievement in FY17 is theincrease in the number of countries that is disbursing
above plan—up from 3 countries to 10. In FY17, 83 percent

36

FOREST CARBON PARTNERSHIP FACILITYof the countries with Readiness Preparation Grants were
disbursing within 50 percent variance (or better) of theirdisbursement plans. That is just slightly lower than thepercent of countries in the same category in FY16, due to alarger pool of countries with signed grants in FY17. The
percentage of countries that are either not yet disbursing
or disbursing at less than 50 percent of plan dropped
slightly—to 14 percent compared with 15 percent of thecountries in FY16.
Despite these improvements in overall disbursement
performance, the portfolio-level target of “60 percent of
the countries disburse with up to 10 percent variance of
their disbursement plans” is not yet being met. Currently,
only 36 percent of the countries meet this target (anincrease compared with the FY16 figure, which was 26
percent).
Some delays in bringing disbursement performance up to
full speed remain. Disbursement performance tends to lag
behind actual implementation performance, as the costsof larger contracts (for example, for technical studies,consultation processes, and safeguards documents) are
typically not disbursed until activities have been
completed and final deliverables submitted.
A more detailed overview of disbursement performance ofthe 42 countries that had signed Grant Agreements by theend of FY17 is provided in table 3. Noteworthy progress on
disbursement (that is, moving up at least two categories
compared with last year) was made by Thailand and
Uruguay. Over the past three years, consistently strong
disbursement performance (consistently within 90 percent
or more of the plan) has been demonstrated by Bhutan,
the Democratic Republic of Congo, Ghana, Indonesia,
Nepal, Nicaragua, and Papua New Guinea.
Three of the 42 countries are not yet disbursing, but since
the Central African Republic signed its Grant Agreement
only in the last three months of FY17, it was actually
expected to start disbursing only in early FY18. Since FY16
there has been an encouraging shift in the number ofcountries from the “within or less than 50 percent of plan”
columns to the “within 90 percent or greater than 100
percent” columns.

TABLE 3: DISBURSEMENT RATES OF COUNTRIES WITH READINESS PREPARATION GRANTS SIGNED BY END OF FY17

More than plan (>100%)

Within 90% of plan

Within 50% of plan

Below 50% of planNot yet disbursing

No grant
agreement

Congo, Democratic Republic

Madagascar

Cambodia

Burkina Faso

Argentina

Kenya

Congo, Republic ofNicaragua

Cameroon

GuyanaBelizeParaguay

Costa Rica

Chile

Colombia

Peru

Central African Republic

Tanzania

Ethiopia

PNG

Côte d’Ivoire

Suriname

Ghana

BhutanDominican Republic

Indonesia

El Salvador

LiberiaFiji

Mozambique

Guatemala

Nepal

Honduras

VietnamLao PDR
MexicoNigeria
Pakistan
PanamaSudan
Thailand
Togo
UgandaUruguay
Vanuatu
10

5

20

4

3

3

ANNUAL REPORT 201737

Output 2.1: Standards and preparations in place forhigh-quality Emission Reductions Programs
discussed and endorsed by Carbon Fund (CF)Participants and/or Participants Committee (PC)
Output-level indicator 2.1: Number and types of standards
and management tools discussed and endorsed by CF
participants and/or PC for Emission Reductions Programs
including:
2.1.a: Methodological Framework and Pricing Approach
Methodological Framework
The Methodological Framework (MF) was adopted by
Carbon Fund Participants at the eighth Carbon Fund
meeting, in December 2013. It provides a global standard
for REDD+ transactions at scale and guides the piloting ofresults-based carbon finance transactions through the
FCPF Carbon Fund.
Pricing Approach
In FY14, Carbon Fund Participants had indicated apreference for fixed pricing under current conditions and awillingness to pay up to $5/tCO2e, while recognizing thatthe ultimate price would be one of the items on the table
at the time of ERPA negotiations.
For the past two years, the FMT has been working withseveral countries, especially those in the Carbon Fundpipeline, to perform analysis and planning for the financing
of Carbon Fund Emission Reductions Programs using thepreviously developed cost assessment tools. Such an
upstream analysis has allowed countries to start
structuring Emission Reductions Programs and to alignvarious streams of finance, including the resources
provided through the FCPF Readiness Fund, otherinvestment finance, and results-based finance through the
Carbon Fund.
To cover the financing gaps of Emission Reductions
Programs, there has been an increased focus on innovative
options, including bonds and guarantees. In FY17, a review
of financing plans for Emission Reductions Programs andoptions to address the financing gap was presented by the
FMT at the 16th meeting of the Carbon Fund (CF16). It will
be updated regularly, as new information becomes
available. The review covered 10 Emission Reductions
Programs—four Programs (Costa Rica, Chile, theDemocratic Republic of Congo, and Mexico) submitted to
the FCPF Carbon Fund for approval; and six programs(Ghana, Madagascar, Mozambique, Nepal, the Republic ofCongo, and Vietnam) that are in advanced stages ofpreparation for submission to the Carbon Fund.

Output-level indicator 2.1.c: Legal documents (General
Conditions, ERPA Term Sheet)
Target: ERPA Term Sheet by the 14th ParticipantsCommittee Meeting, General Conditions for ERPA by the
16th Participants Committee Meeting
The ERPA Term Sheet was endorsed at the 14th
Participants Committee Meeting in March 2013 (FY13),
meeting the PMF target. The General Conditions for the
ERPA were adopted by the 18th Participants Committee
Meeting in November 2014 (FY15), slightly after the PMF
target of 16th Participants Committee Meeting, as theGeneral Conditions hinged on the finalization and approvalof the Methodological Framework for the Carbon Fund,which was approved at the eighth Carbon Fund meeting,in December 2013. With several countries advancing in the
Carbon Fund, draft term sheets are under development
and workshops on the legal and commercial content of afuture ERPA and the related ERPA negotiation process
have been held with Chile, the Democratic Republic ofCongo, and Mexico.
The General Conditions build on the criteria and indicators
specified in the Methodological Framework and provide,
among others, for the general legal rules and proceduresthat are expected to be followed during Emission
Reductions Program design, preparation, andimplementation. They further provide a set of(nonnegotiable) general rules and procedures that apply
to each carbon transaction, while the ERPA covers the(negotiable) commercial terms of such transactions.

Output 2.2: Countries have entered in the portfolioof the Carbon Fund
Output-level indicator 2.2.a: Number of early ideas orEmission Reductions Programs presented by countries to
the CFTo date, 24 countries have presented early ideas for
REDD+ Programs; 20 countries went on to formallypresent Emission Reductions Program Idea Notes (ERPINs); and 19 have been selected into the pipeline (table
4). By the end of FY15, ER-PINs from 11 countries (Chile,
Costa Rica, the Democratic Republic of Congo, Ghana,
Guatemala, Indonesia,3 Nepal, Mexico, Peru, the Republicof Congo, and Vietnam) had been selected into thepipeline of the Carbon Fund. In FY16, nine additional
ER-PINs were presented, of which eight ER-PINs (thosefrom Cameroon, Côte d’Ivoire, the Dominican Republic,
Fiji, Lao PDR, Madagascar, Mozambique, and Nicaragua)

3 Indonesia was provisionally selected into the pipeline on the condition that it submit a revised ER-PIN. Upon presentation of its revised ER-PIN at the 14th
Carbon Fund meeting, Indonesia was formally included in the Carbon Fund pipeline.

38

FOREST CARBON PARTNERSHIP FACILITY

were selected, thus increasing the Carbon Fund pipeline
to 19 countries.
The significant increase in the Carbon Fund pipeline in
FY16 came in response to commitments from Carbon Fund
Participants to provide increased funding to the Carbon
Fund, subject to the presentation of quality program
proposals. With the term of the Carbon Fund extended in
FY15 by five years to the end of 2025, sufficient timeremains for program development of these new additions
to the pipeline, as well as a minimum of five-year terms ofprogram implementation, including verification andpayment of the emission reductions generated.
After selection into the pipeline, countries negotiate andsign a Letter of Intent (LoI) that confirms the country’s
intention to sell, and the FCPF Carbon Fund’s intention tobuy, a certain amount of carbon emission reductions
within an agreed time frame. In FY17, four additionalcountries (Cameroon, Fiji, Guatemala, and Lao PDR)
negotiated and signed a LoI that confirms the country’s
intention to sell and the FCPF Carbon Fund’s intention tobuy a certain amount of Carbon Emission Reductions
within an agreed time frame. 18 of the 19 countries
selected into the Carbon Fund pipeline have signed LoIs,
with Indonesia expected to sign one in early FY18.
Countries that have signed their LoIs are advancing thedevelopment of their Emission Reductions Programs,
consistent with the Methodological Framework and inaccordance with the World Bank’s due diligence process.
In FY17, five additional countries reached the significant
milestone of having prepared Emission Reductions
Program Documents, which they presented to the Carbon
Fund Participants in December 2016 and June 2017. Of
these, Chile and Ghana were selected into the Carbon
Fund without conditions, while Mexico and the Republic ofCongo were selected provisionally. Vietnam, meanwhile,

was invited to revise its Emission Reductions Program andpresent an updated Emission Reductions Program
Document at a future Carbon Fund meeting. The four
selected countries join Costa Rica and the Democratic
Republic of Congo, which were provisionally selected in
FY16. However, having met the required conditions, theDemocratic Republic of Congo has been fully accepted
into the portfolio.
Mozambique, Madagascar, and Nepal have submitted
Emission Reductions Program Documents for TechnicalAdvisory Panel (TAP) review and are expected to present
these for potential selection at the 17th meeting of the
Carbon Fund (CF17) in December 2017. Moreover, Vietnam
is expected to resubmit its Emission Reductions Program
Document at CF17. Another 2–3 countries are expected
to present Emission Reductions Program Documents inearly 2018.
Although the selection of the six Emission Reductions
Programs (be it some provisionally) into the Carbon Fund
portfolio to date presents an important step forward in the
Carbon Fund’s business process, the initial PMF target of
10 Emission Reductions Program Documents presented
and five ERPAs signed by 2015 obviously cannot be met.
ERPA negotiations for the Democratic Republic of Congo,
Chile, and Ghana are expected to commence in FY18
subject to completion of the World Bank’s due diligenceon the programs and fulfillment of conditions as stated in
the respective resolutions for the countries. A first ERPA
signature is expected to be achieved in the first half of FY18.

ANNUAL REPORT 201739

TABLE 4: COUNTRIES THAT HAVE PRESENTED EARLY IDEAS, ER-PINs OR ERPDs TO THE CARBON FUNDCountry

CF2

CF3

CF4

CF5

CF6

CF7

CF9

CF10

CF11

Argentina

Early
Idea

Chile

Early
Idea

ERPIN

Colombia

ERPIN

Early
Idea

Early
Idea

ERPIN
Early
Idea

Early
Idea

Early
Idea

ERPIN

ERPIN
ERPIN

ERPIN

ERPD

ERPIN

ERPD
ERPIN

Dominican
Republic

Early
Idea

ERPIN

Early
Idea

ERPIN

Ethiopia

Early
Idea

Fiji
Early
Idea

Ghana

Early
Idea
Early
Idea

Early
Idea

ERPIN

ERPIN

ERPIN

Guatemala

ERPD
Early
Idea

ERPIN

Guyana

Early
Idea

ERPIN

Lao PDR

Early
Idea

ERPIN

Madagascar

Early
Idea
Early
Idea

Early
Idea

ERPIN

ERPIN

ERPD

Mozambique
Early
Idea

Early
Idea

ERPIN

Early
Idea

ERPIN

ERPIN

Nicaragua
Peru

Early
Idea

Vietnam

Early
Idea

Early
Idea

Early
Idea

ERPIN

ERPIN

ERPIN

Note: CFn = nth meeting of the Carbon Fund; ER-PIN = Emission Reductions Program Idea Note; ERPD = Emission Reductions Program Document.

40

ERPD

ERPD

Early
Idea

Nepal

ERPIN

CF16

ERPIN

Côte d’Ivoire

Mexico

CF15

Early
Idea

Congo,
Republic

Indonesia

CF14

Early
Idea

Cameroon

Costa Rica

CF13

Early
Idea

CambodiaCongo,
Democratic
Republic

CF12

FOREST CARBON PARTNERSHIP FACILITY

ERPD

Output 2.3: Increased levels of private sector
investment for incentivizing, testing, andsupporting up-scaling of emission reductions
activities

opportunities with relevant networks, prepare knowledge
products to inform private sector strategies, and provide
program-specific engagement support, among otheractions.

Output-level indicator 2.3: Number of private sector
participants in Carbon FundIn Burkina Faso, the government is working with aconsortium of local and international companies on a
public-private partnership agreement to collaborate on
deforestation-free shea butter.

Target: two new private sector participants by 2014
The FCPF Carbon Fund is no longer actively pursuing new
private sector participants into the Fund itself, but isinstead focusing on strengthening relationships with theprivate sector, with a view to facilitating public-private
partnerships with companies that produce, trade, or buy
commodities driving deforestation or forest degradation.
In past years, engagement with the private sector
predominantly focused on large consumer goods
companies with global reach that had committed tozero-deforestation commodity supply chains as part of the2014 New York Declaration on Forests. In FY17, theengagement broadened and is increasingly focusing on
the entire private sector, including small producers,
operating locally or nationally.
In response to the evaluation’s call for more private sector
engagement, the FMT presented a new private sector
strategy and a dedicated budget to support collaborative

In Cameroon, early discussions are under way to expand
the IFC/Cargill program focused on training cocoa
farmers. Also, several private sector companies withbusiness in the country’s Emission Reductions Program
area have agreed to actively participate in program
development and indicated interest in potential
partnerships around specific commodities.
In Côte Ivoire, Mondelēz and its suppliers (Cargill, Cemoi)
have expressed their commitment to participate in Côte
d’Ivoire’s Emission Reductions Program. The latter
program will build on Mondelēz’s Cocoa Life Program in
Côte d’Ivoire. The government is exploring with Mondelēz
how to implement zero-deforestation agriculture,including a monitoring and verification system.
In Ghana, the government’s Forestry Commission andnational Cocoa Board are in partnership and exploring
opportunities with companies (a Memorandum of

BOX 3: Responding to FCPF’s Second Evaluation
In response to the second evaluation of the FCPF, the Facility Management Team (FMT) has produced
detailed action plans and papers to address the recommendations, including the following:• A new strategy for increasing private sector engagement and a dedicated budget;• A knowledge-sharing and communications strategy that covers the period 2017–20;• A gender mainstreaming strategy that includes a work plan and associated budget;• A draft action plan for improving the modalities of the Capacity Building Program of Indigenous
Peoples and Southern Civil Society Organizations that includes an increased program budget;• A proposal for reducing delays in disbursement and enhancing efficiency in Readiness grant
implementation;• A note presenting a proposal on strengthening and tailoring Readiness support to countries;• A suggestion for revised indicators that will inform future reporting.
The findings and recommendations of the second independent evaluation of the FCPF will continue toguide the Partnership in assessing its relevance, effectiveness, and efficiency in the context of achanging global environment and in maintaining its responsiveness to countries’ strategic priorities andclimate change ambitions.

ANNUAL REPORT 201741

Understanding for work is in place with Touton and in
progress with Mondeleēz) to jointly promote climatesmart cocoa practices, agroforestry, and communitybased approaches to increase cocoa productivity andmeet evolving global industry demand for sustainablecocoa supply chains. The FCPF-supported program isleveraging national forums such as the Ghana Cocoa
Platform (led by the Cocoa Board) and the Climate-Smart
Cocoa Working Group to further private sector
engagement. There is active dialogue between partners
and the World Cocoa Foundation to foster deforestationfree, climate-smart cocoa. Ghana’s Emission Reductions
Program will build on, and benefit from, private sector
activities funded by the Forest Investment Program,including climate-smart cocoa and commercial plantation
development in partnership with the IFC.
In the Republic of Congo, CIB-OLAM has been a partner(including providing funding) in the development of thecountry’s Emission Reductions Program Idea Note.
CIB-OLAM has partnered with the Ministry of Agriculture
and the Ministry of Forestry Economy and Sustainable
Development to rehabilitate the cocoa market byharnessing OLAM’s strategic market position in the global
cocoa sector. Activities include the intensification ofshade-grown cocoa production in degraded forests toavoid slash-and-burn practices in the primary forest.

Output 3.1: Enhanced capacity of Indigenous
Peoples and CSOs to engage in REDD+ processes atthe country level
Output-level indicator 3.1.a: (i) Number and type of
examples of in-country REDD+ actions where Indigenous
Peoples, CSOs, and local communities participate actively
Target: Various new examples exist with strong evidenceof Indigenous Peoples and CSOs active participation andbroad community support in REDD+ programs/readinessby 2015
During the reporting period, Chile validated its 2017–25
National Strategy on Climate Change and Vegetation
Resources, based on a participatory process. The
formulation and validation process for the strategy
included the active participation of IPs, CSOs, and women.
As part of this stakeholder engagement, 1,813 individuals

BOX 4: Engaging the Private Sector: The Case of Cocoa
In June 2017, the World Bank’s Funds for Forests and Landscapes Climate Finance released a report—
Engaging the Private Sector in Results-Based Landscape Programs—highlighting various initiatives that thesefunds are supporting to engage the private sector in REDD+. Some of the most impressive work in this area ishappening in the cocoa sector, with support from the FCPF.
In Ghana, for example, the government’s Forestry Commission and National Cocoa Board are exploring
opportunities with companies, including OLAM, Mondelēz, and Touton, to meet global demand for sustainablecocoa supply chains by jointly promoting climate-smart cocoa practices, agroforestry, and community-based
approaches to increase cocoa productivity.
In the Republic of Congo, CIB-OLAM, which operates the largest logging company in the country, has helped
develop the country’s Emission Reductions Program Idea Note to the FCPF Carbon Fund, and is partneringwith the Ministry of Agriculture and the Ministry of Forestry Economy and Sustainable Development torehabilitate the cocoa market. Activities include the intensification of shade-grown cocoa production indegraded forests to avoid slash-and-burn practices in the primary forest.
In Côte d’Ivoire, Mondelēz and its suppliers, including Cargill and Cemoi, have expressed their commitment toparticipate in the country’s Emission Reductions Program, which will build on Mondelēz’s Cocoa Life Program.
The government is also exploring with Mondelēz how to implement broader zero-deforestation agriculture.
These country-level efforts are informing a global body of work on how to achieve deforestation-free cocoa. In
May 2017, the FCPF together with the World Bank’s BioCarbon Fund, the World Cocoa Foundation, andClimate Focus released a report, Eliminating Deforestation from the Cocoa Supply Chain, which presents afirst set of principles for achieving sustainable, deforestation-free cocoa production.

42

FOREST CARBON PARTNERSHIP FACILITY

Box 5: Step-by-Step: How Cameroon is Standardizing Training on
Deforestation and Forest Degradation
For many countries, preparing to reduce deforestation and forest degradation and enhance forest carbon stocks
is a complex challenge. This process involves developing national strategies; establishing baselines for forest
cover and emission levels; and ensuring forest-dependent communities are informed and engaged, and will haveaccess to the benefits of these efforts.
This last point—engaging stakeholders—is sometimes the most challenging. In many cases, there are dozens ofgroups in a country, with different priorities and approaches, and unique visions of the challenges and benefits of
REDD+, trying to train forest-dependent communities on everything from the basics of climate change, to forest
and land use sector transformation. The sequencing of topics differs. The materials differ too, and are often not
adapted to the context or capacities of trainees, or to the actual program design process led by the government.
In Cameroon, where rainforests cover nearly 50 percent of the national territory and account for 11 percent of theCongo Basin forests, the national REDD+ Technical Secretariat and the International Union for Conservation of
Nature (IUCN) are spearheading a first-of-its-kind approach to align REDD+ training. They have proposed that allorganizations organize their materials to follow three standardized modules that build on each other. Combined,
these modules give stakeholders comprehensive and sequential nine-day training on REDD+ readiness.
The great advantage of the Secretariat’s new Guidelines for Capacity Building of REDD+ Stakeholders is that they
allow organizations to continue to use their own training materials, which are often costly to develop anddesigned to focus on their unique priority areas. Several organizations have committed to following theguidelines, and their feedback has been unanimously positive.
“These training modules are so valuable because they help us ensure we include all that is necessary to know
about the REDD+ process in Cameroon, and that content is delivered according to the level of those being
trained,” says Hawe Bouba, President of the African Indigenous Women Organisation Central African Network(AIWO-CAN).
Stakeholders validated the three-module approach in January of this year, and once they begin using it in the
coming months, it will be much easier to understand and compare what REDD+ content has been covered andwhere. Communities can know they had Module 1, or Module 1 and 2, so future teaching can take this into
account, while still leaving flexibility for organizations to use their own content.
“Thanks to this progressive module approach, communities finally receive step-by-step training in REDD+ andclimate change. This approach will also help communities develop effective capacity-building initiatives thatfacilitate their involvement at the local and national levels,” says Ako Charlotte Eyong, Project Officer for IUCN’s
Pro-Poor REDD+ Project in Cameroon.

ANNUAL REPORT 201743

participated in the ‘Indigenous Dialogue and Consultation
Process’, while 1,266 participated in SESA workshops, 37
percent of them women and 9 percent Indigenous Peoples.
CSOs have actively participated in the awareness andconsultative programs organized by the National REDD+
Secretariat in Ghana. This development has led to bettercollaboration between government bodies and the CSOs,
and has made it easier for information to be exchanged
between these two entities. For example, during thedevelopment of the Forest Reference Level (submitted in
January 2017), Solidaridad, Nature Conservation ResearchCentre (an indigenous conservation organization), andSNV (Netherlands Development Organisation) provided
useful field-level data that were relevant for estimating

historical emissions. Traditional authorities also play animportant role in the facilitation and information
dissemination of REDD+ in Ghana and in the on-theground human resources needed for program
implementation. The Co-Chair for the National REDD+
Working Group is a Paramount Chief of the Agona
Traditional Council and in his capacity is able to represent
the views and needs of local communities.
In Mozambique, a multi-stakeholder landscape platform
was created, bringing together several stakeholders(government, civil society, academia and private sector) to
discuss and agree on strategic matters relating to thelandscape and foster further coordination among these
actors. In addition, an open geospatial tool was developed,Box 6: A New Chapter for the FCPF Capacity Building Program
The FCPF’s Capacity Building Program for Forest-Dependent Indigenous Peoples and Southern Civil Society
Organizations (CBP) reached an important milestone in 2016–17. Phase 1 of the program, which has supported
27 projects with $2 million in funding since 2008, successfully wrapped up and results were presented at the
UN Permanent Forum on Indigenous Issues in May 2017. Thanks to an budget approved this year, theprogram now has more than $11.5 million in total funding.
Part of the focus of the CBP in Phase 1 was to strengthen REDD+ capacities at the subnational and community
levels. In Panama, for example, the Emberá and Wounaan Indigenous Youth Organization worked withtraditional authorities and communities to quantify the carbon stored in their forests. Training on how todevelop forest inventories and participatory mapping of more than 30 individual plots helped to underscore
for indigenous communities the importance of tropical forests and REDD+ efforts in mitigating climate change.
The results of this work were featured in the February 2017 edition of Ecosphere, the Ecological Society ofAmerica’s journal.
“The FCPF Capacity Building Program is essential for ensuring full and effective participation of Indigenous
Peoples,“ said Chris Meyer of the Environmental Defense Fund and the Northern Civil Society Observer for
FCPF. “This is a program that provides direct results, direct funding and financing to civil society, local
communities, and Indigenous Peoples organizations to ensure they can keep up technically. It has been an
important example for other programs to learn from.”
Phase 2 of the CBP provides funding directly to regional intermediary organizations. This new approach marks
the first time FCPF is providing direct financing to indigenous organizations that are best placed to understandthe specific context and capacity gaps, and can help ensure projects meet the needs of local communities.
Through their role as intermediaries, the regional organizations are also building capacity in areas such as
financial management and procurement.
“The FCPF’s targeted capacity-building program is a model that has really been able to make a difference atthe national level. When you give capacity or resources to Indigenous Peoples’ organizations to engage withnational REDD+ plans, it gives them a responsibility, it gives them the ability, it gives them the understanding
to be able to discuss these things at the national level,” noted Daniel Ole Sapit of the Community Resource
and Development Center and the Indigenous Peoples Observer to the FCPF. “In this way, the program has
been able to bridge gaps that have been existing, and we hope that the second phase will provide even moreresources to these programs to be able to do even more.”

44

FOREST CARBON PARTNERSHIP FACILITY

Box 7: Taking Action on REDD+ Gender Integration in Nepal

In Nepal, in-country CSOs operating at multiple levels, Indigenous Peoples’ Organizations, and local
communities have long distinguished themselves for their strong engagement with REDD+, and FY17 was no
exception. But one of the fresher and more effective examples of the active participation of these stakeholder
groups in this past year came in the context of a concerted, multistakeholder effort to mainstream genderconcerns into Nepal’s coming effort to pilot results-based payments, via a special consultancy that was
funded directly by the FCPF through an allocation made by the Participants Committee at the 21st
Participants Committee Meeting.
The consultant driving this work was the CSO WOCAN (Women Organizing for Change in Agriculture andNatural Resource Management), a women-led international membership network that was established in
2004 with the objective of addressing major gender gaps that emerge from the knowledge and experiencesof sustainable and rural development processes. From January through May 2017, WOCAN conducted agender assessment at the district and community levels within the Terai Arc Landscape (TAL), the jurisdiction
where the Nepalese authorities are designing the country’s first major REDD+ Emission Reductions Program.
The idea was to inform the Program’s baseline regarding the various social, economic, and political conditions
that women face in the forest sector, and to identify opportunities and benefits that would ideally be provided
by REDD+ interventions in the TAL. As a show of commitment to this analytical work, the national REDD
Implementation Center (IC) lent out one of its staff members to provide regular encouragement and support
to the assessment team.
In carrying out the assessment, WOCAN and its collaborators employed participatory methods centered on
focus group discussions and individual interviews. They obtained data from 585 members (384 women and
201 men) of Community Forestry and Collaborative Forestry User Groups in seven districts, six in the TAL and
one in the Hills region. They also provided opportunities for participation via two multistakeholder meetingsin Kathmandu. The last of these meetings involved a vigorous discussion of the findings in the final Assessment
Report, with the participants concluding that the assessment had yielded a solid analysis of gender issues inforestry and REDD+ in the TAL. As follow-up, WOCAN is working with REDD IC staff to ensure that their plans
for the Emission Reductions Program are sufficiently “gendered”; this will include the REDD IC’s support for anational workshop for sectors engaged in land use to discuss the findings for the Assessment Report andpromote future collaboration in implementing its recommendations; and for enabling WOCAN to provide
training to decentralized Women’s Leadership Committees across the 12 districts of the TAL.

ANNUAL REPORT 201745

which contains information of different projects andstakeholders, including deforestation data and land
tenure information.
In Nepal, six separate, five-day REDD+ “training oftrainers” sessions were conducted involving mid-level
REDD+ facilitators of 12 Emission Reductions Program
districts from June to July 2017. A total of 114 participantsfrom 12 districts participated in these training sessions.
The primary objective of this exercise was to build thecapacity of district-level trainers in sharing basic conceptsof REDD+ and policy approaches with local-level
stakeholders. Of the total participants, 65 percent werefrom CSOs such as the Nepal Federation of Indigenous
Nationalities, the Federation of Community Forestry Users
Groups, and the Association of Collaborative Forest
Management Nepal, while 35 percent of the participants
were from government agencies like the District Forest
Offices, and the National Parks and Soil Conservation
Offices. Overall, 32 percent of the training participants
were female.
In Papua New Guinea, the FCPF REDD+ Readiness project
supports the operations of the National REDD+ Strategy(NRS) Technical Working Committee (TWC), Safeguards
TWC, and MRV TWC, established by the Climate Change
Development Authority. The TWCs are multistakeholder
technical and advisory forums created to contribute to thedevelopment and implementation of the NRS by providing
feedback, sharing information, and increasing policy
dialogue and collaboration among diverse stakeholders.
Eco-Forestry Forum, an umbrella organization with amembership of over 15 environmental, governance, andsocial NGOs and community-based organizations working
in different provinces throughout the country has arepresentative who sits on various TWCs as well as on the
FCPF Project Executive Board.
In Peru, a training component has been established tostrengthen the capacity of various actors, including
indigenous groups, in REDD+ consultation andparticipation. A consultancy is presently under way
focused specifically on building understanding anddeveloping a communications plan for indigenous groups
and local communities. This initiative will focus on
designing and implementing a training plan to boost the
informed participation and effective involvement of thesestakeholders, design and implement a communications
plan, and contribute to the establishment of designatedspaces for participation and involvement of REDD+ actorsthat support REDD+ governance efforts. The consultancy
is putting special emphasis on the participation of
AIDESEP (Interethnic Association for the Development of
the Peruvian Rainforest) and CONAP (Confederation of
Amazonian Nationalities of Peru), along with four
subnational centers: Loreto (Iquitos); Amazonas—San

46

FOREST CARBON PARTNERSHIP FACILITY

Martín — Yurimaguas; Pucallpa and Atalaya; and Madrede Dios.
In Sudan, consultation and awareness-raising activities
took place across 17 states, targeting specific groups suchas gum arabic producers, women, pastoralists, andfarmers. These workshops involved all levels of relevant
stakeholder groups, including high-level politicalrepresentatives. A platform for CSOs has been establishedat the national level, whose role is to facilitate dialogue
and raise awareness on REDD+. A platform for gum arabic
producers (local people and forest-dependentcommunities) was established, given their key role in the
REDD+ process in Sudan (the number of people living in
the gum arabic belt is estimated at 7 million). At the statelevel, two platforms have been established in each of the
18 states of Sudan—a formal platform including
government institutions, academia, research institutions,communities, and CSOs (open-ended), and an informal
platform, which brings together mainly CSOs. The main
purpose of the formal platform is to ensure continuous
REDD+ consultations at the state level, while the informal
platform is meant to empower CSOs and ensure theireffective participation.
Continued training has been provided and contracts havebeen signed with 18 REDD+ Assistants (representing
indigenous and tribal communities) in Suriname, whose
work is sharing information about REDD+ with theirrespective indigenous and tribal communities. During thisreporting period, a total of 12 training days were organized
for the REDD+ Assistants. The REDD+ Assistants play animportant role in both bringing information about REDD+
to their local stakeholders and in turn sharing feedback,questions, and messages from communities with REDD+
project management units.
The self-selection process of civil society and Indigenous
People representatives to be engaged in Uganda’s REDD+
process concluded in February 2017. This process wasmanaged by a national NGO, Environmental Alert, andsupported by UN-REDD in collaboration with the FCPF.
The goal of the process was to strengthen public
accountability within emerging REDD+ structures in
Uganda. These representatives will take part in thematic
task forces and national REDD+ institutional arrangements.
This year, Vanuatu’s CSO REDD+ Coordinator was incharge of planning activities to mark “national tree
planting day” on June 21. Events took place across fiveislands: Santo, Malekula, Efate, Erromango and Tanna.
Overall, these activities helped build a better
understanding of REDD+ work in Vanuatu, boost thevisibility of CSO involvement in REDD+ activities there, anddrew diverse crowds including women, school-aged
children, disabled participants, and Indigenous Peoples.

Box 8: Civil Society Actively Engaged in National REDD+ Strategy
Preparation in TogoAs Togo works to prepare its national REDD+ strategy, an important partner has stepped up to the plate: civilsociety. In a country with strong political support for the REDD+ process, a two-year information campaign by the
National REDD+ Coordination Unit has focused on building awareness and dialogue at all levels around forestand climate change issues. The campaign has supported information sharing and the mobilization andcommitment of stakeholders, especially CSOs, around the REDD+ process.
Civil society groups have created platforms and self-organized at the local, regional, and national levels to boost
participation in REDD+ and are also actively taking part in the national REDD+ management bodies. What’s more,these stakeholders have made it a priority to see that local populations have the right information to actively
engage in forest and climate dialogues, while demonstrating the on-the-ground benefits of more sustainable
management of agriculture and forests.
For example, in May and June 2017, Togo’s Women REDD+ Consortium spearheaded a national public awarenesscampaign on climate change, REDD+, and fuelwood efficiency, which reached more than 6,500 women and 600
men in 60 townships. A major driver of forest degradation in the country is the collection of fuelwood forcooking, and women usually handle this task. According to Ms. Essivi Sinmégnon Acakpo-Addra, President of theConsortium, “The goal of this campaign was to mobilize women around the concept of REDD+ and help toreduce the pressure on the forest through more efficient use of fuelwood and charcoal. With the support of theWorld Bank, we have distributed 1,500 improved cook stoves. The stoves produce fewer emissions than
traditional cook stoves, require less fuel, time and money to prepare the same meal, and can minimize thedemands on forests for firewood while reducing the risk of respiratory illnesses in women.”
The National Council of Civil Society Organizations for Sustainable Development in Togo (CNODD) has also beenworking to bring the concept of REDD+ to local communities. In 2016, the group developed an informationalguide called “The tree, the forest and our life on Earth.” Using the guide as its foundation, the CNODD organized
35 workshops on forest and climate change issues with traditional and local leaders of 35 prefectures along with50 radio broadcasts across 25 rural radio stations. “Radio is the best way to reach people. In talking about REDD+
in local languages, we want to help get the communities more directly involved, alongside the government, in thesustainable management of our forest resources,” said Mr. Paul Kanfitine, President of the CNODD.
Finally, the Togolese Coordination of Peasant Organizations and Agricultural Producers (CTOP) has organized five
regional workshops and trained more than 100 producers (who will then train others) on sustainable agricultural
practices and the links between deforestation, farming, and climate change. “We are committed to REDD+
because we hope for more fertile land and more regular rainfall for our crops,” said Mr. Fikou Ougadja, who works
on M&E of the CTOP.
Togo has recently been awarded $35,000 from the FCPF’s capacity building program to further boost REDD+
outreach in the country. The funding, which will go to two NGOs in the country, will support additional awarenessactivities and media campaigns.
The work of these groups to date has been a key factor in reaching stakeholders at all levels. At a time when
Togo is focused on preparing its national REDD+ strategy, it’s more important than ever to have civil society andlocal communities informed and involved.

ANNUAL REPORT 201747

Output-level indicator 3.1.a: (ii) Examples of resources
made available to enable active participation ofIndigenous Peoples, CSOs, and local communities innational REDD+ readiness
The FCPF-supported Capacity Building Program for
Forest-Dependent Indigenous Peoples and Southern Civil
Society Organizations has enhanced the engagement ofIndigenous Peoples in national REDD+ planning andformulation. Moreover, it has acted as a catalyst in
activating partnerships with governments in respect toimplementing consultation activities and representation innational REDD+ structures. A recent budget increase forthe program, approved at the PC meeting in March 2017,brings total funding to $11.5 million.
The second phase of this program began in July 2016 andwill run through June 2018. For this stage of the program,funding goes to regional intermediary organizations thatcoordinate capacity-building activities in their respective
regions.
In addition to being an important step forward in building
support for REDD+ on the ground, this new approachmarks the first time that FCPF is providing direct financing
to indigenous organizations for capacity-building projects.
Previously, the money would have passed through thegovernment or an international non-profit. Regionalorganizations understand the specific regional context
and capacity gaps and can help ensure that the funded
programs meet the needs of intended beneficiaries in theeligible FCPF countries.
At the end of FY17, all six projects under Phase Two of the
Capacity Building Program for Forest-Dependent Peoples
and Southern CSOs had been approved by the World
Bank. Five of the six had advanced to grant signature andwere disbursing, while one project remained in the final
stages of review.
Regional intermediary organizations have taken advantage
of international platforms to share results and lessons
learned from their experiences through the capacitybuilding program. For example, Mainyoito Pastoralist
Integrated Development Organization (MPIDO), a
beneficiary of the program, co-organized an event at
the 22nd Conference of the Parties in Marrakesh, inNovember 2016, focused on the current involvement ofIndigenous Peoples and local communities in actions
related to mitigation and adaptation, including REDD+, inthe Africa region.
A side event to the United Nations Permanent Forum on
Indigenous Issues, in April 2017, on the Indigenous Peoples
Capacity Building Program on REDD+, provided anotheropportunity to share the progress and early results fromthe programs across Africa, Asia, and Latin America withthe larger Indigenous Peoples’ fraternity and gather their

48

FOREST CARBON PARTNERSHIP FACILITY

suggestions on the future of the initiative to inform
engagement with the FCPF.
Output-level indicator 3.1.b: Number of Indigenous
Peoples and REDD+ country CSO representatives (men/women and/or/youth) that have participated andbenefitted from FCPF–organized workshops/training
sessions on Strategic Environmental and Social
Assessments (SESAs), governance, MRV aspects / related
aspects of REDD+
In October 2016, the FCPF organized a stakeholder
engagement workshop with southern CSOs and Indigenous
Peoples’ groups that brought together more than 50
participants from 25 countries, civil society observers fromthe United States and Norway, and a representative fromthe United Nations Development Programme (UNDP).
The overall aim was to provide an update for Indigenous
People and CSO representatives on the progress of the
FCPF Carbon Fund, including the application of the
Methodological Framework. The agenda included asession on complementary initiatives and instruments,
including the FIP and the BioCarbon Fund, which helped
participants learn about other World Bank Group forestand climate resources. The workshop also served as aplatform for Indigenous Peoples and CSOs from Carbon
Fund countries to share their experiences on approaches
to enhancing their meaningful engagement in the design
and implementation of Emission Reductions Programs.
The FMT also supported the participation of FCPF
observers in other international processes and forums,
including the United Nations Permanent Forum on
Indigenous Issues as well as the Conference of the Parties
organized by the UNFCCC.
Output-level indicator 3.1.c: Examples of Indigenous
Peoples and REDD+ country CSO representation in
institutional arrangements for REDD+ at the national level
While not exhaustive, the countries that are known tohave Indigenous People and CSO representation as part ofnational REDD+ technical bodies and/or national
institutional arrangements for REDD+ include Cameroon,
Chile, Colombia, Costa Rica, the Democratic Republic ofCongo, El Salvador, Fiji, Guatemala, Guyana, Honduras,
Indonesia, Kenya, Mexico, Nepal, Nicaragua, Panama, Peru,
the Republic of Congo, Thailand, Uganda, Vanuatu, andVietnam. In Bhutan, Côte d’Ivoire, Ethiopia, Ghana, Liberia,
Madagascar, Mozambique, Nigeria, Uruguay, and Togo,
CSOs and local communities (in the case of Africancountries) are part of these structures.

Box 9: Mainstreaming Gender Considerations in REDD+
The FCPF continues to align its work with the World Bank’s Gender Equality Strategy (FY16–23), to ensure women aretreated as partners in the design and implementation of REDD+. The Bank’s Gender Strategy is focused on removing
barriers to women’s ownership and control of assets, and enhancing women’s voice and agency. The Strategy and its
associated Gender Action Plan are helping the FCPF find new entry points to mainstream and track gender considerations
in REDD+ Readiness and larger Emission Reductions Programs. FY17 was the first year the FCPF had a dedicated budget
for gender work, with initial support going to Ghana, Mexico, and Nepal.
New Country-Level Initiatives
Building on the significant progress on gender and REDD+ in countries the FCPF will fund new gender-sensitive initiatives
in 2017–18 focused on the following:• Pilot gender analysis and integration activities, to enhance women’s participation in the countries’ Emission
Reductions Programs;• Build capacity for women’s organizations and government institutions and agencies working on gender and
REDD+;• Develop Gender Action Plans, to ensure women benefit directly from all forest and landscape interventions;• Review women’s participation in REDD+ decision-making platforms at subnational and national levels;• Ensure gender-sensitive indicators and targets in the monitoring framework for national REDD+ strategies.
New Global-Level Initiatives
In December 2016, the FCPF conducted a gap analysis of its guidelines and methodological frameworks,
recognizing that gender inequalities are sometimes
taken for granted at the program level. These findings
prompted the FCPF to identify a series of activities
and dedicate a budget to improve the way gender is
integrated.
Throughout 2017–18, the FCPF will:• Review FCPF frameworks for Monitoring and
Evaluation (M&E), Readiness Assessment, andCarbon Fund Methodology, to improve the way
countries report on gender activities;• Track and monitor gender inclusion in FCPF
country reports; this will include using the“Gender Tag” tracking mechanism in the Bank’s
Gender Strategy to identify operations that
seek to narrow a gender gap;
• Host knowledge- and experience-sharing
sessions at the country and regional level, as
well as in Participants Committee meetings andother relevant forums.
The FCPF is also collaborating with the Program on
Forests (PROFOR), the Climate Investment Funds(CIF), and other partners to align its gender work with
the Bank’s Gender Strategy, and will continue tointegrate gender in its programs to address gaps andmaximize women’s empowerment in the forest andlandscape sectors.

ANNUAL REPORT 201749

Output 3.2: Pilots have been successfully
implemented on ways to sustain and enhance
livelihoods and conserve biodiversity
Output-level indicator 3.2.a: Number of countries wherestakeholder engagement platforms proposed in
Readiness Preparation Proposals have taken up work andmeet regularly
Based on reporting (which may not be exhaustive),stakeholder engagement platforms are working andmeeting regularly in the following 34 countries: Bhutan,
Cambodia, Cameroon, Chile, Colombia, Costa Rica, Côte
d’Ivoire, the Democratic Republic of Congo, the Dominican
Republic, Ethiopia, Fiji, Ghana, Guatemala, Guyana,
Honduras, Indonesia, Lao PDR, Liberia, Madagascar,
Mexico, Mozambique, Nepal, Nicaragua, Pakistan, Panama,
Papua New Guinea, Peru, the Republic of Congo, Sudan,
Suriname, Togo, Uganda, Vanuatu, and Vietnam.

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

In FY17, the FCPF developed a new knowledge-sharing
and communications strategy, and continued todisseminate knowledge and lessons learned from FCPF
activities through digital and print platforms. This past
year, the FCPF Secretariat continued to boost readershipof its quarterly newsletter, with stories that include
updates on REDD+ country activities, FCPF deadlines,
knowledge products, news reports, and photos andmultimedia products from FCPF events gatheringstakeholders. Nearly 800 targeted subscribers receive thiscontent regularly. The newsletter also drives traffic to the
FCPF website, the main platform for information andknowledge sharing. Over the past fiscal year, the user baseof the FCPF website, which is updated regularly with news
from the Secretariat and country programs, increased by
14 percent.
The FCPF remains actively engaged in promoting its
activities and knowledge through social and digital media.
The FCPF Facebook page dramatically increased its
outreach over the past fiscal year, starting from just over
1,400 followers to surpassing 2,200 followers over only a
12-month period, a jump of 57 percent. Certain posts on
the FCPF Facebook page have reached over 2,900
readers. The FCPF has also shared lessons learned
through online feature stories on topics related to new

Box 10: Diversifying Membership of Pakistan’s National
Steering Committee on REDD+In Pakistan, a National Steering Committee (NSC) on REDD+ has been operating at the federal
level since 2011, under the chairmanship of the Secretary Ministry of Climate Change. The NSC
was set up to enhance multisectoral coordination and multilevel coordination on REDD+ in the
country, and at first, it was composed mainly of national- and provincial-level government
stakeholders. Recent meetings of this body have touched on the need to both increase the sizeof the NSC and diversify its membership. As a result, in December 2016, a reconstituted NSC
met for the first time. It now includes 37 members representing relevant ministries, donor
agencies, national and international NGOs, and academia, as well as representatives fromforest communities and forest industries in focal provinces. The NSC is also more balanced interms of gender representation.
This reform in Pakistan’s national-level institutional architecture for REDD+ has ended up
shaping the national REDD agenda in notable ways. For example, in May 2017, the governmentof Pakistan requested additional funding from the FCPF Participants Committee for scaling up
action and documenting lessons in areas identified by the provinces and duly endorsed by the
expanded NSC, including building the capacities of women, forest owners, and right holders;formulating community-based forest management agreements between villages and theirrespective forest departments; and undertaking feasibility studies, engaging in consultations,and doing analytical work on drivers of deforestation, strategy options, and benefit-sharing
arrangements in relation to the most promising areas for REDD+.

50

FOREST CARBON PARTNERSHIP FACILITY

programs selected into the pipeline, results from the firstphase of the Capacity Building Program for ForestDependent Indigenous Peoples and Southern CSOs andthe importance of private sector engagement, among
others. These stories are promoted through the WorldBank’s communications channels focused on climatechange, environment and natural resources, andagriculture. In addition, the FCPF has an active presenceon the World Bank’s climate change Twitter account(@wbg_climate, which has over 80,000 followers).
Selected knowledge products in FY17 included thefollowing:• The issues around the environmental integrity ofinternational market mechanisms have gained attention
in the wake of the Paris Agreement. To meet thedemand for knowledge on this topic, the FCPF, alongwith the Partnership for Market Readiness, launched thecomprehensive report Emissions Trading Registries—
Guidance on Regulation, Development andAdministration, in October 2016. The report provides
policy makers and other stakeholders with technicalinsights and guidance on how to support countryspecific decision making and activities related to registrydevelopment.
• Over the past fiscal year, the team increased its use ofvideo to engage audiences on WBG online and social
media feeds, making them freely available for otherstakeholders to use. Along with the launch of Voicesfrom the Heart of the Forest: Indigenous Peoples andCivil Society Speak About REDD+ to coincide with the2017 International Day of Forests, the team supported
the production and dissemination of REDD+ in Africa
videos focused on Ghana, Mozambique, and theRepublic of Congo, which are posted on the World Bank
YouTube channel, which has 42,000+ subscribers.
• FCPF, in partnership with the Global Observation ofForest Cover and Land Dynamics (GOFC-GOLD) Land
Cover Office and various other partners (UN-REDD
Programme of the United Nations (FAO/UN-REDD),
REDD+ Partnership, Global Forest Observations
Initiative (GFOI), the Australian government, theSilvacarbon Program, Wageningen University, andBoston University) delivered a series of regional
workshops to train the selected technical experts from
REDD countries working on national forest monitoring,
reporting, verification and reference level development.
Four regional workshops were organized in threedifferent parts of the world between April 2016 andFebruary 2017, with the objective of building on existing
expertise and experiences and developing “multipliers,”by training the trainers. A selected group of about 40
participants from countries in each region were invited
to attend the workshop, aimed at further disseminating

the gained knowledge and insights and train otherrelevant people who are involved in REDD+ monitoring
and reporting in their country.
• During April, May, and June 2017, the FCPF cohosted aseries of seven webinars linked to the aforementioned
regional workshops on the latest tools andmethodologies for REDD+ measurement, reporting, andverification (MRV), in the context of monitoring forest
area and area changes, and the associated carbon
stocks and changes. A total of 576 individuals (34percent female and 66 percent male) participated in thewebinar series, with an average of 183 attendees persession. Participants came from 90 countries, including
37 of the 47 FCPF countries. In feedback surveys,
participants highlighted that the webinars had been
easy to understand, relevant for their work, and that theywould serve as building blocks for their related REDD+
initiatives. All the related REDD+ training materials,
including the REDD+ Sourcebook, the training modules,
and webinars that were sponsored by the FCPF, areavailable online.
• In April 2017, FCPF collaboratively organized a workshop
on lessons learned from carbon accounting elements of
FCPF Carbon Fund Emission Reductions Programs.
Participants discussed the challenges in the applicationof the Methodological Framework from the perspectiveof a REDD+ country, Carbon Fund Participant, andtechnical advisor. A report on the lessons learned andrecommendations for stakeholders is forthcoming. The
team also participated in the NASA Carbon Monitoring
System Applications Policy Speaker Series.
• Another set of workshops was supported by FCPF,
GFOI, GOFC-GOLD, and the Norwegian Space Center,focused on lessons learned in the application of
accuracy assessments of forest cover change maps.
International experts came together in April and June2017 to provide preliminary guidance on how to use theresults from accuracy assessments. An informal set of
guidance points was shared after the June workshop,and formal guidance is expected in the new fiscal year.

ANNUAL REPORT 201751

Output-level indicator 4.1: Examples of activities
undertaken at the national level to generate andinstitutionalize awareness on REDD+ such as
through inclusion of REDD+ in curricula in schools
and universities
A diverse set of activities is carried out by countries togenerate awareness, build capacities on REDD+, andincorporate REDD+ in training events, curricula, and otheropportunities for learning.
Some examples from FY17 include:
In Cambodia, several communications products, including
a newsletter, calendars, and notebooks, were developed
to build awareness of the National REDD+ Strategy
framework, and were distributed to the government,
NGOs, private sector stakeholders, REDD+ technicalteams, the Consultation and Gender Groups, anduniversities. These products were also made available on
the Cambodia REDD+ website and Facebook page. In
addition, three animation videos, at various stages of
production, are being developed to promote the key
messages of the country’s REDD+ Strategy.
In Cameroon, the national REDD+ Technical Secretariat
spearheaded a new approach to streamline how REDD+

52

FOREST CARBON PARTNERSHIP FACILITY

training is done. It convened all the main organizations in
the country that do REDD+ training and helped them
organize their materials into three standardized modules
that build upon one other. Combined, these modules
provide stakeholders with comprehensive and sequential
nine-day training on REDD+ readiness. Organizations arestill able to use their own materials within the standardized
modular framework. In an effort to continue to disseminate
information on the REDD+ process throughout 2017, theSecretariat is planning to produce two documentaries andnine advertisements.
In Chile, a new Master’s Degree Program on Climate
Change and Vegetation Resources has been created. In
addition, the country is now offering a training program forlawyers and other professionals on REDD+-related legal
aspects, focusing on the legislation of carbon rights
transfer. Furthermore, since 2016, Chile’s new Program on
National Greenhouse Gas Inventories and REDD+ Carbon
Reference Levels has trained 55 public officials and otherrelevant professionals.
In Colombia, several communications initiatives over the
past year have helped convey key messages and resultsfrom the country’s National REDD+ Strategy. These efforts
include three “REDD+ Diversa” institutional bulletins;

several deforestation alert newsletters; a new website andsocial media channels on various climate change and
REDD+ topics; infographics and animated videos on the
country’s REDD+ work; and the training of community
reporters who can support the generation anddissemination of REDD+ content. In addition, a series of
tours was developed and carried out in the Chocó –Darién Conservation Corridor to introduce community
representatives, environmental authorities, and otherpartners to early REDD+ initiatives, facilitating theexchange of knowledge and lessons learned in theimplementation of REDD+ and forest governance.
Colombia also launched its “El Pacífico habla de REDD+”(“The Pacific Region is talking about REDD+”) strategy toreach out to Afro-Colombian communities on REDD+
issues. Further, the country’s Pacific Diploma in Creative
Writing Program engaged with REDD+ by soliciting
forest-related stories from Afro-Colombian and black
communities of the Pacific region.
In El Salvador, a Green Networks and Classrooms project
was launched in 2017 that integrates climate change
themes into the core curriculum of public schools. The
project, developed by the Ministry of Education, in
partnership with the Ministry of Environment and Natural
Resources, helps citizens improve local sustainable

environmental management and build more resilient
communities. The project takes into account the needsof different municipalities and local ecosystems, andfocuses on training teachers, creating and replicating
methodological guidance, and restoring degradedecosystems.
In Madagascar, several national and regional-levelknowledge exchanges were organized across the country
on various REDD+ topics, including forest monitoring,
drivers of deforestation and forest degradation, andStrategic Environmental and Social Assessments.
Materials from these exchanges were translated into
Madagascar’s national language, Malagasy, and used tocreate illustrated communications pieces to ensurecommunities, with varying degrees of literacy, would be
able to access the information. The REDD+ Coordination
Office also disseminated these specialized knowledgesharing materials during the country’s Information Day on
Climate Change.
In Panama, the Ministry of Environment, in partnership with
the Albatros Media Foundation, launched the “Living
Forests” campaign to raise awareness about forest
conservation and REDD+. As a key activity under thecountry’s REDD+ communications strategy, the campaign

ANNUAL REPORT 201753

was designed to engage with the public through television,
radio, and print media, as well as through state institutions
and the private sector.
In Sudan, REDD+ information “walk-in-school” sessions
were initiated in February 2017 to provide key stakeholders
with technical information on REDD+. To date, nine suchsessions have trained a total of 180 participants.
In Suriname, several outreach and awareness activities
were organized between June 2016 and February 2017,
including the celebration of the International Day ofForests and World Environment Day. Communications
outputs focused on video and radio productions, including
five movies in English and Dutch, and one in Sranan Tongo;
10 radio coproductions with the Foundation for Forest
Management and Production Control; and 50 televisionand radio broadcasts. Local newspapers in Suriname
picked up a total of 20 stories on REDD+, and thecountry’s REDD+ website, Facebook, and YouTube
channels all saw notable increases in traffic.
In Vietnam, in September 2016, the REDD+ Provincial
Project Management Unit (PPMU) in Da Lat City
collaborated with the local Women’s Union to host a
REDD+ Communications Challenge event. During thecompetition, teams of women from surrounding districts
were issued a series of challenges designed to generate
discussion and awareness on forest conservation, climatechange, and REDD+ implementation. This creative
communications event was considered such a success,that other PPMUs are looking to replicate the event intheir districts, towns, and cities across Lam Dong Province.
Further, in August, the Vietnam Administration of Forestry
and Vietnam’s Agriculture Newspaper launched a writing
contest in Ha Noi, called “The forest is my life.”
Contestants were encouraged to submit articles andstories looking at the economic and spiritual value offorests, as well as the challenges communities face inforest protection and development. The goal of thecontest was to engage the public to learn about the valueof forests for livelihoods and climate change.

Output 4.2: Participants actively engage in SouthSouth learning activities
Output-level indicator 4.2.a: Number of South-South
learning activities and/or events connecting FCPF
countries
A South-South exchange in October 2016 brought
government officials from Suriname to Costa Rica to sharelessons learned on defining a national development
strategy. The participants shared ideas about how theexperience in Costa Rica could help guide the Suriname
team on their own REDD+ strategy. Chile and Mexico also

54

FOREST CARBON PARTNERSHIP FACILITY

shared lessons learned, in this case on REDD+ safeguards,
during a knowledge exchange in Chile in March 2017.
In April 2017, a team from Bhutan visited Mexico as part ofa South-South exchange to increase understanding of
national level REDD+ program implementation andpreparation of a national REDD+ strategy. As part of theagenda, the participants visited indigenous communities
where they learned about community forest management,
ecotourism initiatives, and women’s involvement in natural
resource management.
In June 2017, representatives from Mozambique traveled
to Brazil to partake in a knowledge exchange focused onsustainable rural development. Their weeklong trip
included a visit to the Bahia state and covered topics
ranging from rural credit and extension services to therestoration of natural forest and protected area
management. Building on momentum from the exchange,
a number of next steps have been planned, among others,
establishing a joint task force to address mutual
challenges, providing policy support on the preparation of
the National Forest Program in Mozambique, andadvancing work in Mozambique with subnational entities
and the private sector.
A FCPF Knowledge Exchange Day was held in September
2016 alongside the Participants Committee meeting in
Ghana. The event included sessions focusing on benefitsharing experiences in Ghana, Mexico, and Peru; creating
forest reference levels for UNFCCC; and lessons on
Emission Reductions Program development and review for
the FCPF Carbon Fund. It also gave the participating
countries an opportunity to give valuable feedback for
FCPF’s knowledge strategy and work program for FY17 andbeyond. In short, the event allowed participants to boost
their country’s capacity, exchange information, andpromote mutual learning as part of FCPF’s objective todisseminate knowledge on REDD+.
Output-level indicator 4.2.b: Total number of participants
to South-South knowledge exchange activities by
category
In FY17, the FMT continued providing targeted countrytailored support, training, and capacity building, focusing
in particular on Readiness Packages and Emission
Reductions Program development. An increased
knowledge and communications budget approved for
FY18 responds to increased interest in South-Southexchanges and peer-to-peer study tours.

Output 4.3: Strong visibility of REDD+ and FCPF isachieved
Output-level indicator 4.3.a. Number of neutral/positive
mentions of FCPF and REDD+ issues in different key
media worldwide per year
In the context of the buildup to international climate
negotiations at COP22 in Marrakesh, mentions of the FCPF
in the media have remained consistent and typically been
related to the diversity of countries and Emission
Reductions Programs under development in the Carbon
Fund. Media attention has also included content about
advances in a number of Emission Reductions Programsand emerging engagement and partnership building withthe private sector.

Output-level indicator 4.3.b: Number of negative
mentions of FCPF and REDD+ issues in different key
media worldwide per year
Critical mentions of the FCPF and REDD+ issues ininternational media worldwide have remained consistent
but overall represent a low portion of media coverage.
Negative mentions of the FCPF remain primarily related tosafeguards, land tenure issues, and carbon rights. In
particular, critical environmental NGOs continue to focus
on the potential or perceived risks linked to the proposed
Emission Reductions Programs in Africa. The FCPF
Secretariat or the World Bank as the trustee has
responded, when necessary, to inconsistencies between
FCPF activities and media reports.

ANNUAL REPORT 2017

55

FCPF
READINESS
FUND
47 REDD+ Country
Participants have been
selected into the FCPF andhave signed Participation
Agreements. The map
illustrates the progress
toward readiness completion
as of June 30, 2017.

PARTICPATION AGREEMENTSIGNED: 47
READINESS PREPARATIONGRANT SIGNED: 42
MIDTERM PROGRESS REPORTASSESSED BY PARTICIPANTS
COMMITTEE: 26
READINESS PACKAGE ASSESSEDBY PARTICIPANTS COMMITTEE: 9

56

FOREST CARBON PARTNERSHIP FACILITYIBRD 36759 | SEPTEMBER 2017: This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any otherinformation shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any endorsement or
acceptance of such boundaries.

ANNUAL REPORT 2017

57

FCPF
CARBONFUND
The Carbon Fund pipeline
includes programs in
19 countries. The map
illustrates the progress toward
developing large-scale REDD+
initiatives as of June 30, 2017.

IN CARBON FUNDPIPELINE: 19
IN CARBON FUND PORTFOLIO(PROVISIONALLY): 3
IN CARBON FUND
PORTFOLIO: 3

58

FOREST CARBON PARTNERSHIP FACILITYIBRD 43204 | SEPTEMBER 2017: This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any otherinformation shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any endorsement or
acceptance of such boundaries.

ANNUAL REPORT 2017

59

COORDINATING WITH
OTHER REDD+INITIATIVES
REDD+ has a challenging agenda, given its
multisectoral and multistakeholder dimensions,and the large financial and capacity needs involved.
It is important, therefore, that countries coordinate
all of these initiatives to avoid an overlap in financeand to ensure programs collectively build towardrealizing the country vision for REDD+.

60

FOREST CARBON PARTNERSHIP FACILITY

UNFCCC/Green Climate Fund
Building on coordination fromprevious years, the FCPF continues
to foster active exchange on ideas
and activities with the UNFCCC andthe GCF. The FCPF participates
actively in UNFCCC forums such as
the Conference of the Parties (COP)and the Subsidiary Body for Scientificand Technological Advice (SBSTA),
while the GCF attends FCPF
Participants Committee and FCPF
Carbon Fund meetings to foster
cross-learning and collaboration.
This year, the FCPF responded to
GCF’s call for public inputs on thedesign of REDD+ results-based
payments and a follow-up workshop.
The FCPF continues to share lessons
learned from the development andimplementation of FCPF’s
Methodological Framework, and theexperience gained in designing
institutional and implementation
arrangements for the delivery of
results-based payments in Carbon
Fund programs.

UN-REDD Programme
In FY17, the FCPF and the UN-REDD
Programme continued theircooperation in providing assistanceto countries getting ready for
REDD+. Coordination has entailed
joint country missions and sharing
responsibility for financing readinessactivities. At the global level, the
FCPF and the UN-REDD Programme
continue to work together on
analytical and capacity-building
efforts and events. The COP22 event“Joining Forces to Achieve
Sustainable Development Goal 15(SDG15),” co-organized by the
UN-REDD Programme, FCPF, andother partners, showcased initiatives
across land use sectors and how
these have supported progress
toward delivering on climate change
and the 2030 Agenda for Sustainable
Development. The event explored
how countries can achieve forestryrelated Nationally Determined
Contributions to cut carbon
emissions, which will, in turn, help
achieve SDG15 and make a real
impact on the ground.

Forest Investment Program
The FIP is engaging with other
REDD+ financing instruments (i.e.,
FCPF, BioCarbon Fund) andmultilateral and bilateral funds toseek cofinancing opportunities for
FIP investments. Twelve FIP pilot
countries (Burkina Faso, Côte
d’Ivoire, the Democratic Republic ofCongo, Ghana, Guatemala, Indonesia,
Lao PDR, Mexico, Mozambique,

Nepal, Peru, and the Republic ofCongo) have made significant strides
in linking FIP-supported activities
with other REDD+ financing
instruments and multilateral andbilateral funds. For example, in
Mexico, Monitoring and Evaluation(M&E) systems promoted by the FIP
have been strengthened significantly
and now generate useful information
for CONAFOR (Mexico’s National
Forestry Commission and FIP focal
point), its programs, and otherinitiatives related to REDD+. In
collaboration with the FCPF, the FIP
contributed to Mexico’s MRV for
REDD+, which is completed at thetechnical level.

improving livelihoods and local
environments. The ISFL has
developed operating principles
related to program design and GHG
reporting and accounting. This work
will culminate in the ISFL Emission
Reductions Program Requirements,
expected to be finalized during thefall of 2017. The ISFL has programs in
Colombia, Ethiopia, and Zambia, withan additional program in Indonesia
under consideration. The ISFL
leverages the national REDD+
readiness work of the FCPF and the
UN-REDD Programme, which havecreated important institutional
infrastructure for large-scale land
use programs.

BioCarbon FundPROFOR

Leveraging lessons and experiencefrom a successful track record on
project-based carbon finance in theland use sector, the BioCarbon Fund
(BioCF) embarked on a new initiativein FY14, the Initiative for Sustainable
Forest Landscapes (ISFL). The ISFL
builds on the BioCF’s experiencefrom more than 10 years ofsuccessful project-based carbon
finance in the land use sector. It is amultilateral facility that promotes
and rewards reduced GHG emissions
and increased sequestration throughbetter land management, including
REDD+, climate-smart agriculture,and smarter land use planning andpolicies. The ISFL will achieve its
objective of GHG emission
reductions—and provide additional
benefits of livelihood improvements
and sustainable land use—throughfour key pillars: a jurisdictionallandscape approach, engagementwith the private sector, results-based
finance, and a streamlined approachto implementation.

The Program on Forests (PROFOR)
supports in-depth analyses,
innovative processes, andknowledge-sharing and dialogue insupport of sound forest policy thatcan lead to better outcomes on
issues ranging from livelihoods andfinancing, to illegal logging,biodiversity preservation, and climatechange mitigation and adaptation.
The program is managed by a coreteam based at the World Bank andsupported by multiple donors.
PROFOR collaborates with the FCPF
on knowledge-sharing initiatives andon providing research, tools, andresources that can boost theevidence needed to inform
interventions in the forest sector.
This year, the FCPF worked withPROFOR on gender integration,
forest governance, and benefit
sharing.

The initiative is building a portfolio of
jurisdictional programs spread acrossdiverse geographies that have asignificant impact, and transform
rural areas by protecting forests,
restoring degraded lands, enhancing
agricultural productivity, andGiven FCPF’s broad experience andleadership in large-scale Emission
Reductions Programs, it also engages
with numerous other initiatives on
specific topics relevant to REDD+.

ANNUAL REPORT 201761

4. ISSUES AND
CHALLENGES
Progress has been made in addressing previously identified issues andchallenges. The Facility Management Team (FMT) will continue its efforts tomonitor and address challenges through further follow-up action in FY18.
4.1 MANAGING DISBURSEMENTS PRIORTO FUND CLOSURE

With available resources in the Readiness Fund almost
wholly allocated and the current term of the fund ending in
2020, the FCPF will proactively manage the limited
resources within the remaining term of the fund. Several
countries have experienced delays with either Delivery
Partners’ internal approvals or in-country approvals. While
more rigorous portfolio monitoring has resolved some ofthese delays, in cases where they have not been resolved,
grant funding could be reallocated.

4.2. IMPEDIMENTS TO IMPLEMENTATION
Emission Reductions Programs are large-scale and complex
in nature, and rely on diverse stakeholders for theirsuccessful implementation. These programs aim totransform the way land is used across sectors, and thus arelikely to run into challenges as they move from the design
stage to tangible initiatives. It is therefore essential thatcountries take on a decisive and active leadership role inhelping realize these programs on the ground.

4.3. IDENTIFYING AND LEVERAGINGINVESTMENT FINANCE

The cost of Emission Reductions Program implementation
may often exceed the potential carbon payments thatcountries can generate from verified emission reductions.
Countries are aware that REDD+ is not providing fullrecovery of the implementation cost of REDD+ activities
that a country may carry out. As such, countries should
focus on identifying the investment gaps and aligningvarious streams of upfront investment finance to cover

62

FOREST CARBON PARTNERSHIP FACILITY

implementation costs. These approaches are likely to be
country-specific and may need to include innovative
options such as bonds, guarantees, and other forms ofconcessional finance. Discussions with public and private
institutions in a country can facilitate identification ofalternate financing sources relevant to program context.

4.4. OPERATIONALIZING PRIVATE SECTORENGAGEMENTIn FY17, the FCPF engaged with private sector companies in
the context of emerging Emission Reductions Programs toidentify opportunities for facilitating partnerships between
REDD+ country governments and companies. In the first
instance, the focus will be on companies that produce,
trade, or buy agricultural commodities that have an impact
on forests. One of the main challenges encountered was a
disconnect between company commitments and pledges
made at headquarters, and the reality in decentralizedcompany offices on the ground. In some instances, local
company representatives were not ready to commit todeforestation-free products. In accordance with thepertinent evaluation recommendation, and based on initiallessons learned, the FCPF has developed a plan of action
for private sector engagement and dedicated additional
resources to this end.

ANNUAL REPORT 201763

5. MONITORING
OF ASSUMPTIONSAND RISKThe following table presents a snapshot of assumptions identified in the Log
Frame against key impacts, outcomes and outputs, the level of risk associatedwith these assumptions, and the proposed mitigation measure as relevant.
An assumption in most cases indicates areas/circumstances that are beyond
the control of the governance framework of the FCPF. However, tracking ofassumptions is important to gauge unforeseen consequences in case theassumptions did not hold true. Reference to the impact, outcome and output
where the assumption was referenced in the Log Frame of the M&E Framework
is included the first column of the table.

TABLE 5: OVERVIEW OF ASSUMPTIONS AND RISKS IDENTIFIED IN THE M&E FRAMEWORK

Level at whichassumption is referred toin Log Frame

Original assumptions
from Log Frame

Current
Level of
Risk

Explanation of risk rating

Mitigation measureproposed

Impact 1.1
Outcome 1
Output 2.3
Outcome 3
Outcome 4
Output 4.3

Global climate change
negotiations under
UNFCCC remain
supportive.

—

Technical aspects of
REDD+ have been agreed
upon and REDD+ is
included in the Paris
Agreement.

No mitigation measure isrequired at this stage.

Outcome 1
Outcome 3
Outcome 4

The incentives provided
by REDD+ schemes are
sufficient.

Low

The risk relates toincentives for countries toadvance to the Readiness
Package, stakeholder
engagement, andknowledge disseminationof experiences. Sufficient
resources are available
to countries through the
FCPF and other bilateraland multilateral resources
to advance to theReadiness Package, while
maintaining adequatelevels of stakeholder
engagement.

No mitigation measure isrequired at this stage.

64

FOREST CARBON PARTNERSHIP FACILITY

ANNUAL REPORT 2017

65

66

Outcome 1

For purposes of theReadiness Fund,
submission of theReadiness Package by
REDD+ Participants isvoluntary.

——

The assumption does not
require monitoring.

Outcome 1

There are no extraordinary
circumstances in the
country that prevent thesubmission of Readiness
Packages

Low

At the portfolio level,a small percentage
of countries havesociopoliticalcircumstances that could
slow submission of theReadiness Package.

No mitigation measure isrequired at this stage at
the portfolio level.

Output 1.2

Plans and targets wererealistically assessedby technical experts
before approval, in viewof existing baseline
capacities and participant
countries’ contexts.

Low

R-PPs of all 45 active
countries have beenassessed by the PC. At
the portfolio level, signingof Grant Agreements has
significantly increased(with 42 signed grants). It
is expected that all Grant
Agreements will be signed
by end of FY18, with a few
exceptions due to special
circumstances.

Delivery Partners areactively pursuing signed
Grant Agreements, anddeadlines have been set
for all key milestones

Output 1.3

The political andsocioeconomic context in
the Country Participantsremains stable enoughover the implementation
period so that the capacity
built remains in place.

Low

The overall risk at theportfolio level associatedwith the political andsocioeconomic context forreadiness implementation
remains low.

The diversity of REDD+
countries in the portfolio
is a built-in mitigation
measure.

Outcome 2

Interest in performancebased payments remains
high enough.

Low

The interest of donors
in performance-based
payments schemes
has been high in thereporting period. Interestin performance-based
payments by REDD+
countries is evident fromthe increased submissionof ERPDs to the Carbon
Fund in the reporting
period.

The risk will be monitoredcontinuously in theforthcoming periods.

Output 2.2

A large enough number ofcountries have the capacity
to meet all standards and
FCPF/Delivery Partner
administrative processes
do not put undue burden
on the CF operation.

Low/
MediumIn FY17, four additionalcountries were selected
into the Carbon Fund
portfolio, bringing the total
to six.

Piloting of the
Methodological
Framework in the first few
REDD+ Programs showedcountry capacity to meetthe standards.

Output 2.4

Five REDD+ countries havesigned ERPAs by 2015.

High

The successful selectionof ERPDs will indicate
the timelines for ERPA
signing and program
implementation. The first
ERPA will be signed at the
beginning of FY18 at theearliest. This indicator
will be monitored closely
in FY18.

The business process isclear and realistic. Four
additional ERPDs havebeen selected into the
Carbon Fund in FY17
(two provisionally) andwill proceed to ERPA
negotiations next (or uponfull approval, for those
provisionally selected).

FOREST CARBON PARTNERSHIP FACILITY

Output 3.1

Relevant guidelines in the
Common Approach arefollowed and processes
such as SESA are actually
implemented in countries,
providing for a receptive
environment.

Low

The SESA process has
been rolled out as part ofreadiness implementationin most countries.

At the portfolio level,
progress has been madeon social inclusion
in REDD+ and SESA
implementation. The
application of SESA,
which is marked by aparticipatory approach,has enhanced theanalyses of social andenvironmental risks.

Output 4.2

Events managed directly
by countries (not organized
by FMT itself) are timely
and effectively planned tofeed into the process oflearning, and involve key
stakeholders.

Low

There is diversity in the
FCPF portfolio on how
events are managed at thecountry level. Countries
have demonstrated
increased interest andcapacity to self-organize
to exchange among
themselves.

Countries continue toenhance communicationand stakeholder
engagement capacity
through readiness grants
and other bilateralsources.

Note: CF = Carbon Fund; ERPD = Emission Reductions Program Document; ER-PIN = Emission Reductions Program Idea Note; ERPA = Emission Reductions Payment Agreement;
FCPF = Forest Carbon Partnership Facility; FY = Fiscal Year; FMT = Facility Management Team; M&E = Monitoring and Evaluation; PC = Participants Committee; RPP = ReadinessPreparation Proposal; SESA = Strategic Environmental and Social Assessment; UNFCCC = United Nations Framework Convention on Climate Change;— = not available.

ANNUAL REPORT 201767

6. FY17 FINANCIALREPORT OF THE
FACILITY
6.1. FINANCIAL OVERVIEW OF THE
FACILITY
Committed funds to the Readiness Fund and theCarbon Fund of the FCPF at the end of FY17
totaled more than $1.1 billion, with almost $370
million committed to the Readiness Fund and $740
million committed to the Carbon Fund (tables 7
and 13). The Readiness Fund’s resources have been
entirely allocated, while the Carbon Fund is likely
to commit all its resources in the next two to three
years through signed Emission Reductions
Payment Agreements (ERPAs).
Fund balances at the end of FY17 totaled $920
million, made up of $202 million in the Readiness
Fund and $718 million in the Carbon Fund, withcash balances totaling $630 million—$160 million
in the Readiness Fund and $470 million in the
Carbon Fund (tables 6 and 12)).
The value of grant allocations to REDD+ Countries
at the end of FY17 was $285 million (table 11) while
signed Grant Agreements represent firm
commitments of almost $208 million. Grant
disbursements from the Readiness Fund havecontinued to accelerate such that at the end of
FY17 they amounted to $90 million, excluding
grant disbursements made by countries with
Delivery Partners other than the World Bank(tables 6 and 10).

6.2. THE READINESS FUND
6.2.1.

Fund Balance

Table 6 shows the summary financial statement for
the Readiness Fund from the opening of the fundto the end of FY17. The Readiness Fund balance atthe end of FY17 is $202 million, with a cash balanceof $160 million. The difference of $42 million isrepresented by outstanding contributions from theEuropean Commission ($1 million) and Norway ($41
million), as shown in table 7.

68

FOREST CARBON PARTNERSHIP FACILITY

Total donor contributions received to date amount
to $326 million. Investment income of $20 million
brings the total receipts to date to more than $346
million. Total disbursements to the end of FY17 arealmost $187 million, and consist of $61 million in
cash disbursements, $90 million in grants to
REDD+ Countries, and $35.4 million in
disbursements to Delivery Partners for ReadinessPreparation Grants to countries.
Total new funds into the account during FY17
amounted to about $9.6 million, made up ofinvestment income of $7.2 million earned on theaccount balance and a $2.4 million contribution
installment from Norway. Total disbursements on a
cash basis during FY17 were $43 million, made up
of cash expenditures of $7 million, grant
disbursements of approximately $31 million (ofwhich $0.8 million were for the IP/CSO Capacity
Building Program Grants), and disbursements to
Delivery Partners for grants totaling $5 million.

6.2.2.

Funding Sourcesa) Donor Contributions
Table 7 presents the committed contributions to
the Readiness Fund as of the end of FY17. There is
no real change to report in total contributions of$369 million at the end of FY17 compared to thetotal as of the end of FY16—likewise $369 million.
There are outstanding contributions of $42.6
million from existing signed agreements to be paidby Norway ($41.4 million) and the European
Commission ($1.1 million) into the Readiness Fundin the coming years. These outstanding
contributions represent agreed, phased
contributions, spread out over a number of years.
b) Investment Income
Table 6 shows investment income earned over thelife of the fund. Amounts paid into the trust fund,but not yet disbursed (that is, the fund balance),
are managed by the International Bank forAT
CALLOUTTHE END
1, OF
FY17
CALLOUT
MORE1THAN$1.1
CALLOUTBILLION1 WERECOMMITTED...
CALLOUT 1

ALMOSTCALLOUT 1,$370
MILLIONCALLOUT1
COMMITTEDCALLOUT 1 TOTHE
READINESSCALLOUT1
FUND...

AND$740 MILLIONCALLOUT1,
COMMITTEDCALLOUT 1 TOTHE
CARBONCALLOUT1FUND
CALLOUT 1

ANNUAL REPORT 2017

69

TABLE 6: FCPF READINESS FUND SUMMARY FINANCIAL STATEMENT FY17 ($, THOUSANDS)

Description

Total

Beginning Balance

FY17

FY16

FY15

FY14

FY13

FY12

FY11

FY10

192,767

226,801

224,869

195,830

189,999

165,804

77,69550,945

FY09

Donor Contributions

326,001

2,370

27,01454,00430,00931,53894,88032,29053,895Investment Income

18,224

7,241

3,094

2,008

1,960

897

924

732

821

547

9,611

3,094

29,022

57,98730,90632,462

95,612

33,11154,442

3,497

Investment Income(Transferred from the CF)

2,023

2,023

Total Receipts

346,248

Cash Disbursements

60,784

7,134

7,909

6,914

9,373

8,752

5,383

6,421

5,402

Grant Disbursements*

89,75929,94025,41916,379

8,173

4,923

2,884

1,082

959

IP/CSO Grant Disbursements

832

832

Disbursements to DPs for Grants

35,400

5,000

3,800

3,800

11,40011,400Total Disbursements

186,774

42,90637,12827,09328,94625,075

8,267

7,503

6,361

3,497

Fund Balance (cash)

159,473

159,473

192,767

226,801

224,870

195,830

189,999

165,804

77,69550,945plus Outstanding Contributions

42,567

Fund Balance

202,040

FY10

FY09

Note: CF = Carbon Fund; DPs = Delivery Partners; IP/CSO = Indigenous Peoples/Civil Society Organizations Capacity Building Program.
*Includes $599,694, of Bank-executed grant disbursements

TABLE 7: FCPF READINESS FUND DONOR CONTRIBUTIONS AS OF END OF FY17 ($, THOUSANDS)

Participant Name

Total

Australia

23,892

Canada41,360Denmark

5,800

European Commission

5,192

Finland23,196

France10,340Germany

76,766

Italy

5,000

Japan

14,000Netherlands

20,270

Norway112,723

Spain

7,048

Switzerland

8,214

United Kingdom

5,766

United States of America
Committed Funding

Outstanding*

FY16

FY15

FY14

FY12

FY11
7,997

9,565

41,360
5,800
1,140

1,364
3,230

2,688
5,261

5,749

8,956

5,136
23,784

13,913

13,113

592

4,612

5,000

5,000

16,3985,000

25,956
5,000
4,000

7,635
41,427

2,370

7,635

38,727

5,000
8,801

7,048
8,214
5,766

9,000
368,568

FY13

6,330

4,000
42,567*Amounts may vary due to exchange rate fluctuations.

70

FY17

FOREST CARBON PARTNERSHIP FACILITY

2,370

27,01454,00430,00931,53894,8804,500

500

32,29053,895

Reconstruction and Development (IBRD), which maintains
a pooled investment portfolio (the Pool) for all the trust
funds administered by the World Bank Group. Because all
Participation Agreements with Carbon Fund Participants
indicate that any interest generated by prepaid
contributions shall be channeled to the Readiness Fund,the Readiness Fund receives an allocated share ofinvestment income from this Pool, which consists ofinterest earned on both the Readiness Fund and theCarbon Fund. The total investment income deposited into
the Readiness Fund (on the Readiness and Carbon Fundbalance) up to the end of FY17 was $20 million.

6.2.3. Funding Usesa) Cash Disbursements
Cash disbursements represent all non-grant
disbursements and total $60.8 million from the opening of
the fund to the end of FY17. Table 8 shows the annual
expenditures by activity, while table 9 compares theapproved budget with the actual expenditures by activity
for FY17.
Total cash disbursements for support to REDD+ Countries
over the lifetime of the fund represent around 70 percent
of total cash disbursements, while administrative costs
represent five percent of total cash disbursements. These
country-focused disbursements combined—the cash
disbursements for support to REDD+ Countries of $47
million with the grant disbursements of $91 million (ofwhich $0.8 million are for IP/CSO capacity building, table6) and the disbursements to Delivery Partners for grants of$35 million (table 6)—represent 93 percent of total
disbursements of $187 million (table 6). Administrative andsecretariat costs (which include the cost of all ParticipantsCommittee and Participants Assembly meetings, including
travel costs for REDD+ country participants and someobservers) over the lifetime of the fund of $13.7 million(net of shared costs on secretariat costs) represent just 7
percent of total disbursements of $187 million, whileadministrative costs alone represent less than two percent
of total disbursements. Details may be found in tables 6
and 8.
The FY17 budget for the Readiness Fund, net of sharedcosts, is $7.7 million, while total Readiness Fund
expenditures for the year amount to $7.1 million (table 9).
The ﬁscal year therefore closed with spending at 92
percent of budget and a corresponding underrun of$600,000.
Costs for country implementation support totaled $3.1
million, or 86 percent of the planned budget. This
spending covers the direct assistance of Delivery Partnercountry teams to REDD+ countries, including technicalassistance, grant supervision, and assessments provided
to the Participants Committee. This expense category was
underrun mainly because of a planned replenishment of
the implementation budget for UNDP in the amount of$300,000, which will occur in FY18.
The expenses recorded for country advisory services came
to about $1.58 million, or about 105 percent of the $1.5
million originally budgeted in FY17. The team carried out
substantial work supporting 12 countries in theirsubmission of mid-term reviews, unlocking additional

TABLE 8: FCPF READINESS FUND CASH DISBURSEMENTS ($, THOUSANDS)

Activity

% of
Total

Total

FY17

FY16

FY15

FY14

FY13

FY12

FY11

FY10

FY09

Country Implementation
Support34%

22,713

3,145

4,275

2,676

3,730

3,213

1,701

1,904

1,660

409

Country Advisory Services

18%

12,401

1,584

1,632

1,881

2,342

1,750

1,073

545

793

801

REDD Methodology Support

18%

11,774

1,209

843

1,071

1,796

1,842

999

1,921

1,266

827

Subtotal Support to REDDCountries

70%

46,888

5,939

6,749

5,628

7,868

6,805

3,773

4,370

3,719

2,037

IP and CSO Program

4%

2,927

87

253

480

751

1,089

267

FCPF Secretariat

21%

14,107

2,118

1,434

1,299

1,515

1,690

2,056

1,685

1,321

989

Readiness Trust Fund
Administration

5%

3,114

162

269

327

397

404

356

366

362

471

Total Readiness Fund(including Carbon Fund
Shared Costs)

67,037

8,306

8,706

7,735

10,532

9,988

6,452

6,421

5,402

3,497

Less Carbon Fund Shared
Costs(6,254)(1,172)

(797)

(821)

(1,159)(1,236)(1,069)60,784

7,134

7,910

6,914

9,373

8,752

5,383

6,421

5,402

3,497

Total Readiness Fund

100%

ANNUAL REPORT 201771

TABLE 9: FCPF READINESS FUND CASHDISBURSEMENTS FOR FY17 ($, THOUSANDS)of the budget set aside for administration of the
Indigenous Peoples/CSO grants was used in FY17.

BudgetActualExpense

Variance

ExpenseRate (%)

Country Implementation
Support

3,645

3,145

500

86

Country Advisory
Services

1,508

1,584

(76)

105

REDD Methodology
Support

1,386

1,209

177

87

Subtotal Support to
REDD Countries

6,538

5,939

600

279

IP and CSO Capacity
Building Program

285

87

198

31

FCPF Secretariat

Activity

1,893

2,118

(225)

112

Readiness Trust Fund
Administration

165

162

3

98

Total Readiness Fund(including Carbon Fund
Shared Costs)

8,881

8,306

575

94

Less Carbon Fund
Shared Costs(1,148)(1,172)

24

102

Total Readiness Fund

7,733

7,134

600

92

grant funds of up to $5 million each for work on readiness.
Continued progress was also seen in the form of three
countries signing $3.8 million Readiness Preparation
Grants (Argentina, Belize, and the Central African
Republic) and four countries (Indonesia, Madagascar,
Nepal, and Vietnam) signing grants for additional fundingof up to $5 million this FY. The bulk of these costs camefrom Facility Management Team (FMT), forestry, and social
development staff advice and guidance to REDD+
countries on their programs. Expenditures in FY17 also
included specific work on SESA and ESMF Risk
Management.
With the budget for REDD Methodology Support activities
set at $1.4 million for FY17, and total expenditures at $1.2
million, spending represented 87 percent of the FY17 plan.
The main source of the underspending in this category is
the work planned on gender inclusion, with anunderspending of $170,000 with respect to the budget.
The Indigenous Peoples/CSO Capacity Building Program,including grants, has historically been included in theoperating budget. However, this inclusion means theoperating budget is very dependent on the outflow ofgrants that typically should be accounted for elsewhere,
along with other recipient-executed activities such as thereadiness grant disbursements to countries. As shared atthe 21st Participants Committee Meeting, this report
separates the grants from the real operating budget tobetter reflect the true operating budget. Only 31 percent

72

FOREST CARBON PARTNERSHIP FACILITY

FCPF secretariat expenses were $2.1 million, or 112 percentof the activity budget of $1.9 million. Expenditures
included the standard costs of program management,
organization of the annual Participants Assembly (PA) andParticipants Committee (PC) meetings, and travel costs for
REDD+ Countries and some observers to those meetings.
FCPF secretariat costs include the costs of hosting andmaintaining the FCPF website, communicating with FCPF
stakeholders, and translating FCPF materials. The main
contributing factors to the $225,000 overrun are thefollow-on work for the 2015 Evaluation, increasedtranslation costs associated with the large number of longtechnical documents submitted for review (mid-term
progress reports, Readiness Packages), and the higher
than average cost of the PC/PA meeting in Ghana.
Expenditures on Readiness Trust Fund administration
costs were 98 percent of budget. These administrative
costs reﬂect the work of all World Bank staff involved infund management, contributions management,
accounting, specific legal operations related to the facility
as a whole, and other services required by the Readiness
Fund trustee, including making the arrangements for the
Monitoring and Evaluation Framework (M&E) for the FCPF.
These expenses were in line with the budget.
b) Shared Costs
As part of the approval of the Readiness Fund budget, the
FCPF Charter indicates that the PC shall make decisions
on all shared costs for activities that cut across and beneﬁt
both the Readiness and the Carbon Fund. In practice, theshared costs have typically included FCPF Secretariat and
REDD+ Methodology Support activities, such as the costsof travel and expenses for REDD+ Countries to attend the
PA and PC meetings and the work of the TechnicalAdvisory Panels (TAPs).
Pursuant to the Charter, the Readiness Fund pays 65
percent and the Carbon Fund pays 35 percent of sharedcosts, unless the PC decides otherwise. The PC approved
resolutions waiving cost sharing through the end of FY11
(to reﬂect the fact that the Carbon Fund was only fully
operational as of May 2011) and paying 100 percent of theshared costs from the Readiness Fund. In addition, the PC
agreed that cost sharing at the 65/35 level would apply
from FY12 onward. However, there is an important caveat
in Resolution PC/8/2011/8, approved in March 2011: the PC
agreed to a lifetime cap of $12 million on the shared costs
that it will charge to the Carbon Fund. This resolution
responded to the concern of several existing and potential
Carbon Fund Participants that without an upper limit on
shared costs, the PC would be making all decisions
regarding their composition and annual approvals.

TABLE 10: FCPF READINESS FUND GRANT DISBURSEMENTS THROUGH THE WORLD BANK ONLY ($, THOUSANDS)

Allocation% totaldisb

SignedGrant

Total
Disbursed

FY17

FY16

Burkina Faso

3,800

13%

3,800

508

263

245

Cameroon

8,793

55%

3,793

2,073

510

CAR

3,800

Cote D'Ivoire

8,800

80%

3,800

3,057

DRC

8,791

100%

8,791

8,790

Ethiopia

3,800

100%

3,800

3,799

Ghana

8,586

83%

8,586

7,126

170

100%

170

170

Liberia

8,782

54%

8,782

4,719

1,572

1,689

Madagascar

8,800

30%

8,800

2,665

1,781

883

Mozambique

8,800

83%

8,800

7,322

3,522

1,950

Nigeria

3,800

42%

3,800

1,592

1,092

500

Republic of Congo

8,033

75%

8,033

6,004

1,885

1,582

Sudan

8,800

38%

3,800

1,460

906

554

Togo

3,800

42%

3,800

1,591

970

277

Region/Country

FY15

FY14

FY13

FY12

FY11

516

476

379

134

3

55

1,097

1,232

728

1,233

1,825

2,202

1,161

1,381

797

2,247

694

258

400

2,240

1,204

1,270

312

FY10

AfricaKenya (moved to UNDP)

UgandaAfrica Sub-Total

3,800

1,500

14

177

100

100

400

200
170

682

289

305

851

911

87

1,244

481

237

381

107

75

108

87

344

7,549

84%

3,800

3,199

1,055

644

1,334

(14)

140

40

104,904

63%

86,15554,076

17,38816,384

9,759

4,749

2,856

1,567

694

679

1,233

1,247

518
123

50

163

37

106

21

576

123

50

66

134

East Asia & Pacific

Disbursed

Fiji

3,800

19%

3,800

740

453

287

Indonesia

8,594

44%

8,594

3,802

359

279

167

Lao PDR

8,347

63%

3,772

2,371

1,234

658

305

Thailand

3,800

13%

3,800

500

300

Vanuatu

3,728

26%

3,728

956

467

177

186

Vietnam

8,800

53%

8,800

4,630

1,990

1,055

1,084

501

East Asia & Pacific Sub-Total

37,06940%

32,494

12,999

4,803

2,455

1,742

1,734

1,516

300

479

375

42

98

52

Latin America & Caribbean

Disbursed

Argentina

3,800

3,800

Belize

3,800

Chile

8,800

80%

3,800

3,037

1,463

1,274

Colombia

8,730

28%

3,800

1,067

467

400

Costa Rica

8,758

43%

8,758

3,763

585

732

Dominican Republic

3,800

14%

3,800

534

54

480

El Salvador

3,800

49%

3,800

1,862

1,161

509

Mexico

8,800

59%

3,800

2,242

557

1,019

665

Nicaragua

8,800

82%

3,800

3,126

1,100

1,016

431

378

77

123

Uruguay

3,800

13%

3,800

500

500

Lat Amer & Car Sub-Total

62,88838%

42,95816,129

5,887

5,430

2,827

899

550

3,800

South Asia

1,431

22

139

241

156

139

500

109

91

Disbursed

Bhutan

8,530

52%

3,800

1,989

980

372

637

Nepal

8,233

44%

8,233

3,633

400

327

1414

Pakistan

3,800

25%

3,800

932

481

451

South Asia Sub-Total

20,56341%

15,833

6,554

1,861

1,150

2,051

792

Totals225,42451%

177,439

89,75929,94025,41916,379

8,173

792

4,923

500

109

91

2,884

1,082

959

Note: CAR = Central African Republic; DRC = Democratic Republic of Congo; Lao PDR = Lao People’s Democratic Republic.

ANNUAL REPORT 201773

Shared costs transferred to the Carbon Fund for FY17 wereslightly above budget, at $1.2 million (table 9). Sharedcosts over the lifetime of the Facility up to the end of FY17
are on track to remain well under the lifetime cap of $12
million, as they currently stand at $6.3 million (table 8).
c) Grant Disbursements
An important aspect of the Readiness Fund is that it makes
available grant funding to countries—the initial grants are
up to $3.8 million per REDD+ country—in support ofcountry-led readiness work. The REDD+ Countries
manage and use the grants for REDD+ activities andexpenses. These are counted as disbursements in WorldBank ﬁnancial statements only after the REDD+ country
completes reimbursement from the grant resources. By
the end of FY17, 39 Readiness Preparation Grants were
disbursing—not including the 10 signed grants for
Additional Funding of about $5 million each. Signed
Formulation, Readiness Preparation, and Additional
Funding (of up to $5 million) Grant Agreements represent
firm commitments of about $208 million.
Grant disbursements from the Readiness Fund havecontinued to accelerate, and at the end of FY17 stood at$125 million, including transfers to Delivery Partners other74

FOREST CARBON PARTNERSHIP FACILITY

than the World Bank for onward transfer to REDD+Countries of $35.4 million (table 6).
Grant disbursements, excluding those through Delivery
Partners other than the World Bank, totaled around $90
million at the end of FY17, a continued increase on
previous years. Grants disbursed during FY17 amounted to$30 million, representing an increase of 20 percent on theprevious year. Of the total grant disbursements to date of
approximately $90 million, more than $54 million havebeen made in Africa. More details on the grant
disbursements through the World Bank as Delivery Partnerare provided in table 10.
In addition, disbursements to Delivery Partners on accountof grants totaling $35.4 million represent eight ReadinessPreparation Grants of $3.8 million—three each in FY13 andFY14, one in FY15, one in FY16, and an additional funding
grant of up to $5 million in FY17. This brings the total grant
disbursements of the FCPF to $125 million (table 6). During
FY17, ineligible expenses totaling approximately $360,000
were incurred under the grant with Côte d’Ivoire. The
government took appropriate remedial action, replacing
the staff involved, and plans to reimburse these
expenditures to the World Bank during FY18.

6.2.4. Financial Commitments over the Longer Term
Since the Readiness Fund will run until December 31,
2020, the annual budgets need to fit into a long-term
financial planning framework consistent with World Bank
policies for the ﬁnancial management of trust funds. These
policies generally require funds to be fully set aside tomeet the commitments made by the participants as wellas the ﬁduciary obligations entered into by the World Bankas trustee.
In order to plan resources over this longer-time horizon,
the Participants Committee issues resolutions from time totime to establish funding priorities and commitments forthe coming years. These commitments are considered“notional” when the Participants Committee has set asideor allocated ﬁnancial resources of the Readiness Fund thathave not yet been signed into formal grant agreements orcontracts. They are converted to ”full” commitments once
the Grant Agreements (or vendor contracts) are signed byrecipients and/or the World Bank as trustee of theReadiness Fund, or expenditures are made.
As noted earlier, full signed grant commitments amount toabout $208 million (including grants signed by countries
working with the IDB and UNDP as Delivery Partners).
However, the FCPF has made a considerably higher levelof notional grant commitments to REDD+ countries. Table
11 provides a more complete picture of the level of thesenotional commitments, together with the necessary
notional commitments to operate the fund for its full life,
including the direct implementation support costs andassociated country services costs.
This long-term financial plan includes commitments forthe operation of the secretariat by the FMT and the trustee
role of the World Bank over the full life of the Readiness
Fund—reﬂecting the fact that the facility is expected to be
fully active through that time.
Table 11 shows the long-term notional commitments orplanned uses of the fund. The table shows that, as of theend of FY17, notional commitments of full grants to all
45 active countries and the estimated associated costsof the fund during its lifetime, plus additional funding of
up to $5 million for 25 countries that show significant
progress, amount to $378.5 million. On the other hand,
total committed funding sources (including investment
income) to the Readiness Fund as of June 30, 2017, are$382.4 million (table 11). This level of funding is therefore
adequate to meet the notional commitments of$378.5 million.

TABLE 11: OVERVIEW OF LONG-TERM SOURCES AND
USES OF READINESS FUNDING AS OF JUNE 30, 2017($, MILLIONS)

Description

Amounts ($m)

Totals ($m)

Sources Of Funds
Committed Funding

368.6

Less 15% discount applied to
outstanding contributions that are ina currency other than US dollars, theholding currency of the fund (WorldBank policy)(6.4)

Investment income to date

20.2

Total Available Funding

382.4

Uses of funds
Grant Allocations
Signed grants to REDD Countries(commitments)(207.8)

Allocations to REDD Countries (notyet signed)(77.6)

Allocations to IP/CSO Capacity
Building Program(3.0)

Total Grant Allocations(288.4)

Administrative, Operations, andCountry Support costs over lifetimeof fund
FY09-17 Actual costs(60.8}

FY18-21 Projected costs(28.3)

Reserve for Delivery Partner capacity
for dispute resolution(1.0)

Total Administrative, Operations,and Country Support costs overlifetime of fund(90.1)

Total Uses of Funds(378.5)

Estimated Reserve: Total Available
Funding less Total Uses

3.9

A discussion was held in FY17 on the optimal, final
allocations of the Readiness Fund, thereby fullycommitting that fund. During that discussion, in addition to
the uses of funds shown in table 11, the ParticipantsCommittee agreed to an additional $5 million allocation to
the Capacity Building Program for Indigenous Peoples andSouthern Civil Society Organizations, subject to availabilityof funding. The estimated reserve of $3.9 million has
therefore been wholly allocated to that program, but thefull allocation of $5 million will only be made when the full
funding becomes available.

ANNUAL REPORT 201775

6.3. THE CARBON FUND
6.3.1. Fund Balance

6.3.2. Funding Sources

Table 12 shows the summary financial statement for the
Carbon Fund from its opening to the end of FY17. The
fund’s balance at the end of FY17 is $718 million, with acash balance of $470 million. The difference of $248
million is accounted for by outstanding balances on
promissory notes and outstanding contributions from
Norway and the United Kingdom.

Table 13 presents the committed contributions to the
Carbon Fund as of the end of FY17. In terms of cash, theCarbon Fund received donor contributions of $59.3 million
over the past year from Germany and the United States.
This brought the total cash contributions to the end of
FY17 to $500 million, leaving two outstanding
contributions of $70.3 million (Norway) and $168.7 million(United Kingdom). These outstanding contributions
totaling almost $239 million represent agreed phased
contributions spread out over a number of years.

Total donor contributions received to date are $500.6
million. Total disbursements to the end of FY17 are$21.2 million, made up solely of cash disbursements.
The Carbon Fund has been fully operational since May
2011. No payments have been made for emission
reductions to date.

6.3.3. Funding Uses

Total receipts during FY17 were $59.3 million, made up ofdonor contributions from Germany and the United States,with contribution amounts of $54.8 and $4.5 million
respectively (table 13).
All Participation Agreements with Carbon Fund
Participants indicate that any interest generated by
prepaid contributions shall be channeled to the Readiness
Fund. For this reason, there is no investment income toreport for the Carbon Fund.

Cash disbursements total $21.2 million from the opening of
the fund to the end of FY17. Table 14 shows the annual
expenditures by activity, while table 15 compares theapproved budget with the actual expenditures by activity
for FY17.
The total cash disbursements from the opening of thefund to the end of FY17 of $21.2 million are made up of$4.3 million administration costs, which include all
meetings and financial management, $1.0 million of TAP
work, $3.3 million of technical support by the FMT to
directly support countries, $6.3 million of Emission
Reductions Program Development costs, and finally $6.3
million of shared costs (table 14).

TABLE 12: FCPF CARBON FUND SUMMARY FINANCIAL STATEMENT FY17 ($, THOUSANDS)

Description

Total

FY17

FY16

FY15

FY14

FY13

FY12

FY11

FY10

417,099

350,826

316,474

293,275

122,283

86,39024,70020,356

500,569

59,271

71,68132,222

27,280171,866

36,91271,8004,181(2,023)

901

520

256

346

Total Receipts

500,569

59,271

71,68132,222

25,257

172,767

37,432

72,056

4,527

Cash Disbursements

21,160

6,619

5,432

2,846

2,058

2,117

1,539

366

183

21,160

6,619

5,432

2,846

2,058

2,117

1,539

366

183

25

4,975

469,751

417,099

350,826

316,474

293,275

Beginning Balance

Donor Contributions
Investment Income(transferred to RF)

FY09

25,35625,356

ER Payments
Total Disbursements

less Promissory Note balances(9,658)Fund Balance (cash)

469,751

plus Outstanding Promissory Notes

76

9,658

plus Outstanding Contributions

238,970

Fund Balance

718,379

FOREST CARBON PARTNERSHIP FACILITY

342(10,000)
122,283

86,390(5,000)24,70020,356

TABLE 13: FCPF CARBON FUND DONOR CONTRIBUTIONS AS OF END OF FY17 ($, THOUSANDS)

Participant Name

Total

Australia

18,393

BP Technology Ventures

5,000

Canada5,015

European Commission

6,709

France5,114Germany

178,440

Norway299,938

Switzerland

10,796The Nature Conservancy

5,000

United Kingdom

186,635

United States of America

18,500Committed Funding

739,539

Outstanding*

FY17

FY16

FY15

FY14

FY13

FY12

FY11

5,658

12,735

FY10

FY09

362

6,347

3,819

4,009

5,000
5,015

114
54,771

13,32970,2765,000

32,10827,28058,352

6,556

15,443

21,125

161,310

10,00010,7965,000

168,695

17,9404,500

238,970

4,000

59,271

71,68132,222

27,28010,000171,866

36,91271,8004,181

25,356*Amounts may vary due to exchange rate fluctuations.

TABLE 14: FCPF CARBON FUND CASH DISBURSEMENTS ($, THOUSANDS)
Activity

Total

FY17

FY16

FY15

FY14

FY13

FY12

FY11

FY10

Carbon Fund Administration

4,250

657

555

741

626

652

470

366

183

Carbon Fund TAP

977

514

440

23

Carbon Fund Country Advisory Services

3,331

1,691

1,290

350

ERPA Costs - Development of ER Programs

6,348

2,585

2,351

910

273

229

235

170

273

229

740

Program Development - general

907

Program Development - ER-PDs

5,441

2,585

2,116

Shared Costs

6,254

1,172

797

821

1,159

1,236

1,069

Total Carbon Fund

21,161

6,619

5,432

2,846

2,058

2,117

1,539

366

183

Carbon Fund Administration

2,479

369

343

377

321

234

286

366

183

Meeting Logistics

1,360

288

212

340

263

74

183

318

1

366

183

CF Admin made up of:Marketing to Private Sector

319

Sustaining Costs

91

Total CF Admin

4,250

657

555

24

41

26

741

626

652

470

Note: CF = Carbon Fund; ER = Emission Reductions; ER-PDs = Emission Reductions Program Documents; ERPA = Emission Reductions Payment Agreement; FCPF = Forest Carbon
Partnership Facility; TAP = Technical Advisory Panel.

TABLE 15: FCPF CARBON FUND CASH DISBURSEMENTS FOR FY17 ($, THOUSANDS)

BudgetActualExpense

Variance

Expense Rate (%)

Carbon Fund Administration

717

657

60

92

Carbon Fund TAP

646

514

131

80

Carbon Fund Country Advisory Services

2,128

1,691

437

79

ERPA Program Development

5,077

2,585

2,492

51

Shared Costs

1,148

1,172

(24)

102

Total Carbon Fund

9,716

6,619

3,096

68

Activity

Note: ERPA = Emission Reductions Payment Agreement; FCPF = Forest Carbon Partnership Facility; TAP = Technical Advisory Panel.

ANNUAL REPORT 201777

6.3.3.1. Fund Admin, TAP, and Country Advisory Services

TABLE 16: CARBON FUND SOURCES AND USES AS OF
JUNE 30, 2017 ($, MILLIONS)

The figure for total Carbon Fund expenditures for the year
is $6.6 million, while the final budget for the Carbon Fund,
including Shared Costs, is $9.7 million. The ﬁscal year
therefore closed with spending at 68 percent of budget—an underspending of about $3.1 million. More details are
given in table 15.

Description

Carbon Fund administration costs are slightly below
budget—with 92 percent of the budgeted amount spent.
Total Carbon Fund TAP costs are under budget—at 80
percent of the budgeted amount. This is attributed to afew Emission Reductions Program Documents in thepipeline that did not reach the complete review stage, as
anticipated (Madagascar, Mozambique, Nepal, andVietnam are under initial review as of the drafting of thisreport). Also covered under this activity, a fruitful TAP
Calibration workshop that took place in April 2017, where
30 participants exchanged lessons learned on Emission
Reductions Program Document development. Because of
the usefulness of this event, another one is planned for
FY18.
The budget for Country Advisory Services was $2.1 million,
and was well used, as the FMT provided support toEmission Reductions Program Document development
during the year. The FMT has provided the requested levelof support as 19 countries work to develop Emission
Reductions Program Documents, with FY17 spending on
this item representing about 80 percent of budget. The
ability to combine trips brought the overall cost down, as
more countries were served in a coordinated fashion.
6.3.3.2 ERPA Costs — Development of Emission
Reductions ProgramsOnce Letters of Intent (LoI) have been signed, Emission
Reductions Program Document development funds startflowing. The budget of $5.1 million was calculated basedon an estimated spending amount during FY17 derivingfrom the $650,000 allocations made to programs entering
the Carbon Fund pipeline and signing a LoI. The budget
was made up of the estimated unspent allocation to thecountries that had been invited to join the CF Pipeline in
FY16 plus portions of five more $650,000 allocations forcountries that could be invited in FY17.
Of the countries selected into the Carbon Fund pipeline,
only those that sign a LoI gain access to the $650,000
allocations for Emission Reductions Program Document
development. Currently, of the 19 countries selected into
the pipeline of the Carbon Fund, 18 have signed LoIs, thus
releasing the $650,000 of Emission Reductions Program
Document development funds for each program. Of the$5.1 million budgeted for FY17, $2.6 million were spent in
FY17, representing an underrun of approximately $2.5
million.

78

FOREST CARBON PARTNERSHIP FACILITY

Current Situation

Sources ($m)

739.5

Number of LoIs (#)

19

Number of ER Programs (#)

13

Uses
Costs over Fund Lifetime
Fixed Costs (FY10 to FY26)

22.7

ER Program Costs

30.7

Total Costs

53.4

Available for Purchase of ERs

686.1

Average ER Program

52.8

Note: ER = Emission Reductions.

6.3.4. Shared Costs
As explained earlier, shared costs are directly related to
the Readiness Fund expenses in two key, cross-cuttingareas: FCPF Secretariat and REDD methodology support
costs. The expenditure, as a result of spending in theReadiness Fund, is slightly over budget at $1.2 million, an
expense ratio of 102 percent.

6.3.5. Financial Commitments over the Longer Term
Diverging from the Readiness Fund, the life of the Carbon
Fund was extended to December 2025 by the Carbon
Fund Participants at the 12th Carbon Fund Meeting(Resolution CFM/12/2015/1), to allow for minimal ERPA
terms of at least five years—accommodating a longer than
anticipated program design phase. As pointed out in theReadiness Fund section, the annual budgets need to fit
into a long-term financial planning framework for eachfund that is consistent with World Bank policies for the
ﬁnancial management of trust funds. These policies
generally require funds to be fully set aside to meet thecommitments made by the participants and the ﬁduciary
obligations entered into by the World Bank as trustee. The
long-term financial plan presented at the 16th Carbon
Fund Meeting in Paris, in June 2017 (but with updated
figures for sources shown in table 16), indicates thataround $686 million would be available for the purchaseof emission reductions.

6.4. BUDGET APPROVAL PROCESSThe budgets for both the Readiness Fund and the Carbon
Fund are based on the World Bank’s ﬁscal year (beginning
July 1) and are approved annually in accordance with the
FCPF Charter. The Participants Committee is responsible
for approving the annual budget for the Readiness Fundand the shared costs of the Facility, while the Carbon Fund
Participants are responsible for approving the annual
budget for the Carbon Fund as a separate trust fund.

ANNUAL REPORT 201779

7. RESULTS
MEASUREMENTREPORTING FRAMEWORKTABLE 17. FCPF REPORTING FRAMEWORK

Impact/Outcome/ Output and relevant Indicators

Expected #/target year

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

Current(as of end FY17)
See section 3for examples ofprogress

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

Not yet applicable

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

No applicable target

See section 3for examples ofprogress

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

No applicable target

See section 3for examples ofprogress

Impact I.5. The FCPF has generated momentum to address governanceand transparency issues and policy reforms related to sustainable
forest resource management and REDD+

Not yet applicable

See section 3for examples ofprogress

2 Readiness packages
by 2014, 8 Readiness
Packages by 2015, 20+
Readiness Packages by
2018

9 Readiness
Packages

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)
Outcome Indicator 1.A. Number of Readiness Packages endorsed by PC

Output 1.1. Readiness Assessment Framework is agreed upon anddisseminatedIndicator 1.1. Existence of published assessment framework on
Readiness Package

Assessment Framework Completed
published following PC14
adoption

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

80

Indicator 1.2.a. Number of R-PPs endorsed by PC

30+ R-PPs by 2015

45 R-PPs

Indicator 1.2.b. Number of Readiness Preparation Grant Agreements
signed30+ signed grant
agreement by 2015

44 signed Grant
Agreements

FOREST CARBON PARTNERSHIP FACILITY

Traffic Light

CALLOUT 1,CALLOUT 1CALLOUT 1CALLOUT 1CALLOUT 1,CALLOUT 1CALLOUT 1CALLOUT 1CALLOUT 1,CALLOUT 1CALLOUT 1CALLOUT 1

ANNUAL REPORT 201781

Expected #/target year

Current(as of end FY17)

Indicator 1.3.a. Number of mid-term progress reports presented bycountries that follow agreed reporting standards and are presented in atimely manner

20+ MTRs by 2015,
25+ MTRs by 2018

26 MTRs

Indicator 1.3.b. Percentage of countries that are achieving planned
milestones according to approved Readiness Preparation grant (> $3.4
million)At least 60% of countries
have performance that is
satisfactory or above

GRMs for FY17 notfully available attime of print.

Indicator 1.3.c. Percentage of countries that are overall achieving
planned milestones for subcomponent—as per country annual
reporting scale Subcomponent 1 to 9

By 2015, 50% ofcountries have
performance “further
development required” in
50% of subcomponents

93% of countries
that reported (28of 39 due to report)
have performancethat is satisfactoryor above

Impact/Outcome/ Output and relevant Indicators
Output 1.3. Countries progress adequately on implementation of their
R-PP and Grant Agreements

By 2018, 100% ofcountries implementing
R-PPs have performancethat is “progressingwell” or above for 80% of
subcomponents
Indicator 1.3.d. Percentage of countries with a disbursement rate thatis in line with agreed Readiness Preparation Grant (> $3.4 million)
disbursement plans of grant agreement (up to 10% variance with plans)

60% (of countries
with signed grant
agreements)

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

Not yet applicable as no
ERPA has been signed.

15 out of 42 or 36%
of countries

Output 2.1. Standards and preparations in place for high-quality ER
Programs discussed and endorsed by CF Participants and/or PC
Indicator 2.1. Number and types of standards and management tools
discussed and endorsed by CF participants and/or PC for ER programs
including:
2.1.a. Methodological Framework and Pricing Approach

Fully developed draft by
CF7 and final version
endorsed by CF8

MF endorsed at CF8

2.1.b. Business processes (ER-PIN, ERPD, ERPA)

Fully developed draft by
CF7 and final version
endorsed by CF8

Business process
defined2.1.c. Legal documents (General Conditions, ERPA term sheet)

Fully defined ERPA Term
Sheet draft by PC14 andGeneral Conditions for
ERPA endorsed by PC16

Term Sheet isendorsed at PC14;
General Conditions
endorsed at PC18

Indicator 2.2.a. Number of early ideas or ER Programs presented bycountries to the CF

10 by 201524 early ideas, 19
ER-PINs, 6 ER-PDs

Indicator 2.2.b. Number of REDD+ countries that have signed ERPA

5 by 2015

0(18 LoIs signed)

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

82

FOREST CARBON PARTNERSHIP FACILITY

Traffic LightImpact/Outcome/ Output and relevant Indicators

Expected #/target year

Current(as of end FY17)

Traffic Light

Output 2.3. Increased levels of private sector investment for
incentivizing, testing, and supporting up-scaling of ER activities
Indicator 2.3.a. Number of private participants in CF

2 new private sector
participants by 2014

Output 2.4. ER Programs are being implemented in a timely manner

Not yet applicable as no
ERPA has been signed.

Target is no longer
relevant. New
approach for private
sector engagement
at program level.

Outcome 3. Engagement of all stakeholders (government, CSOs, IP,
private sector, delivery partners) to sustain or enhance livelihoodsof local communities and to conserve biodiversity within the approach
to REDD+

Indicator 3.A. Design of national REDD+ strategies, monitoring systems
and ER Programs addresses indicators for enhancement of livelihoodsof local communities and for biodiversity conservation

All national REDD+
strategies, monitoring
systems and Emission
Reductions Programs
incorporate indicators
related to biodiversity
conservation and forest
community livelihood
development

See section 3for examples ofprogress

Indicator 3.B Actual examples on the inherent social and biodiversity
benefits of REDD+ and how they are used to inform REDD+ agenda andto scale up results

International REDD+
agenda by 2017 isinformed by documented
results from Emission
Reductions Programs

See section 3for examples ofprogress

Indicator 3.1.a. (i) Number and type of examples of in-country REDD+
actions where Indigenous Peoples and CSOs and local communities
participate actively

Various new examples
exist with strong
evidence of Indigenous
Peoples and CSO active
participation and broad
community support
in REDD+ programs /readiness by 2015

See section 3for examples ofprogress

Indicator 3.1.a. (ii) Examples of resources made available to enable
active participation of IPs, CSOs, and local communities in national
REDD+ readiness

Examples exist withevidence of resources
being made available
through national and/or bilateral support toIndigenous Peoples andCSO networks to enable
active participationin national REDD+
readiness

See section 3for examples ofprogress

Indicator 3.1.b. Number of IP and REDD+ country CSO representatives(men/women and/ or youth) that have participated and benefitted
from FCPF organized workshops/trainings on SESA, governance, MRV
aspects/related aspects of REDD+At least 20 men and
20 women and/or 20
youth representatives
participated and/or
trained per country,
in a minimum of 15
participant countries by2015

See section 3for examples ofprogress

Indicator 3.1.c. Examples of IPs and REDD+ country-CSO
representation in institutional arrangements for REDD+ at the nationallevel

Examples in all REDD+
Participant Countries,
of institutionalarrangements fornational REDD+
readiness where
Indigenous Peoples and
CSOs are represented

See section 3for examples ofprogress

Output 3.1. Enhanced capacity of Indigenous Peoples and CSOs toengage in REDD+ processes at the country level

ANNUAL REPORT 201783

Current(as of end FY17)

Impact/Outcome/ Output and relevant Indicators

Expected #/target year

Output 3.2. Pilots have been successfully implemented on ways tosustain and enhance livelihoods and conserve biodiversity

Not yet applicable as no
ERPA has been signed.

Indicator 3.2.a. Number of countries where stakeholder engagement
platforms proposed in Readiness Preparation Proposals have taken up
work and meet regularly

All countries that havesigned Readiness Grants

See section 3for examples ofprogress

Indicator 4.A. Number of new countries/stakeholders requesting tobecome FCPF:- observers- members

A number of new
requests to become:– Country observers– Country members

No Formal requests
in FY17

Indicator 4.B. Examples of utilization of/or reference to FCPF
knowledge products

An increasing numberof examples exist by
2015 and remains stable
afterwards until 2020

See section 3for examples ofprogress

Traffic Light

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

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

See section 3for examples ofprogress

Output 4.2. Participants actively engage in South-South learning
activities

Shift in FY14 to
focus on countrytailored support.

Output 4.3. Strong visibility of REDD+ and FCPF is achieved
4.3.a. Number of neutral/positive mentions of FCPF and REDD+ issues
in different key media worldwide per X period

Increase in neutral
and positive mentions
worldwide—TBD in work
plans

Yes

4.3.b. Number of negative mentions of FCPF and REDD+ issues indifferent key media worldwide per year

Decrease of negative
mentions worldwide

Yes in quantitative
mentions, buttargeted detailed
publications withcritical content

Note: CF = Carbon Fund; CSO = Civil Society Organization; ER = Emission Reductions; ERPA = Emission Reductions Payment Agreement; ERPD = Emission Reductions Program
Document; ER-PIN = Emission Reductions Program Idea Note; FCPF = Forest Carbon Partnership Facility; GRM = Grant Reporting and Monitoring (Report); FYn = Fiscal Year 20n;
IPs = Indigenous Peoples; LoI = Letter of Intent; MRV = Measurement, Reporting and Verification; SESA = Strategic Environmental and Social Assessment;

84

FOREST CARBON PARTNERSHIP FACILITY

Acknowledgments
Photo credits:
Cover: Andrea Borgarello/World Bank; inside
front cover: Lao PDR/Dao Suwannachairop/
SUFORD project; acronyms: Colombia/Franka
Braun/World Bank; page 7: DRC/Laura Otalora/
World Bank; page 11: Costa Rica/Pablo
Cambronero/UN-REDD Programme; page 13:
Lao PDR/Dao Suwannachairop/SUFORD
project; page 19: Lao PDR/Dao
Suwannachairop/SUFORD project; page 21:
Mexico/CONAFOR; page 26: Lao PDR/Hannah
McDonald-Moniz/SUFORD project; page 29:
Colombia/Franka Braun/World Bank; page 31:
Lao PDR/Dao Suwannachairop/SUFORD
project; page 34: Ghana/Rodney Quarcoo/
World Bank; page 37: Mozambique/Andrea
Borgarello/World Bank; page 39: DRC/Laura
Otalora/World Bank; page 43: Cameroon/Florede Preneuf /World Bank; page 45: Nepal/
Simone D. McCourtie/World Bank; page 47:
Togo/courtesy of Togo team; page 49: DRC/
Laura Otalora/World Bank; page 52: DRC/Laura
Otalora/World Bank; page 55: Lao PDR/Hannah
McDonald-Moniz/SUFORD project; page 63:
DRC/Sebastian Ruiz Cabrera/World Bank; page
65: Mozambique/Andrea Borgarello/World
Bank; page 67: Ghana/Rodney Quarcoo/World
Bank; page 69: Mozambique/Andrea
Borgarello/World Bank; page 74: Mexico/
CONAFOR; page 79: Ghana/Rodney Quarcoo/
World Bank; page 81: Mexico/CONAFOR; insideback cover: Mozambique/Andrea Borgarello/World Bank; all others used with permission.
Design: Groff Creative LLC

ANNUAL REPORT 201785

The World Bank
1818 H Street, NW
Washington, DC 20433, USA
www.forestcarbonpartnership.org[ FSC LOGO HERE ]