Progress report on theImplementation of ITTO’s New
Financing Architecture – Phase II
Decision 4(LVI)
Item 17(a) & (b) of the Council Agenda
Fifty-seventh Session of the ITTC
29 November – 3 December 2021
INTERNATIONAL TROPICAL TIMBER ORGANIZATION (ITTO)

Implementation of Decision 4(LVI)“Implementing ITTO’s New Finance Architecture – Phase II”
Paragraph

Description

Status1. Adopt the ProgrammaticLines

The goals and objectives of each of the four ProgrammaticLines as contained in Annex A have been adopted

COMPLETED

2. Streamlined project cycle

Online Concept Note (CN) form and online CN/project database COMPLETED
developed

3. Funding scenarios

The different funding scenarios under the Programmatic
Approach as outlined in Annex B have been acknowledged

COMPLETED

4. First Open call for concept
notes

Launched in December 2020, closed in April 2021. Received 12valid submissions.

COMPLETED

5. New roles andresponsibilities in thestreamlined project cycle

New, respective roles and responsibilities of each of theparticipating actors in the streamlined project cycle have been
acknowledged.

COMPLETED

6. Activities outside corebudget to be CNsActivities to be funded outside the core budget will be includedin the Concept Note Database

ONGOING

7. Indicate how BWP aligns
with Programmatic Lines

Alignment with the Programmatic Lines are already indicated in COMPLETED /the BWP ‘21-22 document.
ONGOING

Implementation of Decision 4(LVI)“Implementing ITTO’s New Finance Architecture – Phase II” - continued
Paragraph

Description

Status

8. Virtual informed feedbackloop

The virtual informed feedback loop will continue to be utilized
where applicable

COMPLETED /ONGOING

9. Implementing Decision8(LV) - Advisory Board,engaging with funding
mechanisms including GEF

Advisory Board has had four meetings - in April & October 2020 COMPLETED /and April & July 2021.
ONGOING
Details explained under “Implementation of Decision 8(LV) &Decision 4(LVI)

10. Formal TORs for Advisory
Board

Draft developed and agreed by Advisory Board and proposed to COMPLETED
ITTC57 for consideration

11. Propose structure andapproach for review ofDecision 5(LIV) in 2022

Secretariat proposes to postpone the review until at least 2023, ONGOING
and that the review be undertaken by a 2-person team throughmember surveys and selected visits; suggest more discussion at
ITTC 57 (including future of regular project cycle)

12. Report on implementation The report is made at ITTC57of Decision 4(LVI)COMPLETED

13. Utilization of Working
CapitalONGOING$25,000 of $200,000 authorized utilized to date for thedevelopment of the online systems

Engagement with other bodies called for by Decisions 8(LV) and 4(LVI))
Item

Description

Status

1. Engage with secretariat of GEF

ITTO letter sent in May 2021

COMPLETED

2. Extend the MoU with CBD and UNCCD

CBD MoU agreed in Feb 2021;
UNCCD discussions commenced

COMPLETED/ONGOING

3. Establish MoU with UNFCCC

Letter sent in April 2021, no response yet

ONGOING

4. Convey ITTO priorities for GEF-7,
engage in the GEF Steering Committees

ITTO letter sent in May 2021 to all GEF and
CBD focal points in member countries plus
CBD Secretariat conveying priorities andinforming of relevant projects requiring
funds

COMPLETED

5. Formal accreditation to the GCF

The accreditation process with the GCF
continues and is work in progress (thelatest response to GCF’s requests for more
information was sent in September 2021).

ONGOING2021 Call for Concept Notes under funding scenario 4 of Decision 4 (LVI) - Results

Submissions

Screened and published

Received donor interest

Developed into projectFunding pledged or sought related to the pilot Programmatic Approach
Fundraising efforts

Program Line

2019: Japan Forestry Agency / LSSC-related training modules in Congo Basin countries

PL 1: LSSC

USD 316,000

Operational

USD 316,000

2019: German BMEL – Regional Teak Program – Mekong Region

PL 1: LSSC

USD 1.24 million

Operational

USD 1.24 million

2019: German BMEL - Programme on Legal and Sustainable Supply Chains (LSSC) for
Tropical Wood and Forest Products

PL 1: LSSC

USD 2.39 million

Operational

USD 2.39 million

2020: German BMEL funding agreement for Global Forest Education
Survey/Platform; Consortium FAO (lead)-IUFRO-ITTO
2020: Japan Emergency Forest Fire Project (Peru, Indonesia)

PL 4: Emerging

USD 124,000

Operational

USD 124,000

PL 4: Emerging

USD 2.2 million

Operational

USD 2.2 million

2020: Soko Gakkai/Japan Local community and climate adaptation

PL 2: FLR

USD 90,000

Operational

USD 90,000

2020: Japan Forestry Agency/LSSC-related activities in China, Myanmar and VietNam
2021: Japan Forestry Agency/PD922/21 Rev.1(I) “Promotion of Sustainable
Domestic Wood Consumption in Vietnam”

PL 1: LSSC

USD 723,000

Operational

USD 723,000

PL 1: LSSC

USD 339,500

PledgedUSD 339,500

Request from German BMEL to submit proposal for transfer of the Global Timber
Tracking Network from EFI to ITTO

PL 1: LSSC

TBC

Discussions with BMEL
ongoing

USD 0

Building LSSC capacities for tropical enterprises; trade associations, governments; MoUwith SAR Macau under discussion
EU Draft Proposal under the EU Action Plan to Protect and Restore the World’s Forests– submitted January 2020
German BMU-IKI Call for Proposals - Thematic Program – West Africa: Forest landscaperestoration by local communities/women; DL 06 April 2020

Pl 1: LSSC

TBC

USD 0

PL 1: LSSC

EUR 10 million

PL 3: FLR

EUR 16 million

Dialogue started but stalled due to
COVID 19
Submitted: January 31,2020 - unsuccessful
Submitted: April 6, 2020 unsuccessful

German BMU-IKI Call for Proposals - Indonesia Social Forestry: Development ofBamboo Economy; DL 30 April 2020

PL1: LSSC

EUR 15 million

Submitted: April 29, 2020 unsuccessful

USD 0

Totals: 1. Secured a) 2019b) 2020c) 2021

Tentative Budget~USD 3.95 mil.
~USD 3.14 mil.
USD 339,500

StatusActual results to date

USD 0
USD 0

~USD 3.95 million~USD 3.14 million
USD 339,500

Funding Received - Voluntary Contributions (2019-2021)

Non-PA

PA-

0.50

1.00

1.50

20192020

2.00

2021(Projected)

2.50

3.00

3.50
Millions (US$)

Projects/activities/CNs pending financePending financeTotal budget

No.

Projects$10,242,521

23

BWP activities
Concept Notes
Total$3,497,216$1,936,356$15,676,093

181253

Projects Sunset by the end of 2022

$6,018,966

11Projects and CNs Sunset after 2022

$4,223,556

12

Note: 8 projects were sunset in 2021 with a total budget of $2,274,655.

Adoption of the ToR for Decision 4(LVI) Advisory Board andthe timeline and ToR for the review under Decision 5(LIV)on the pilot programmatic approach• ToR of Advisory Board• Composition• Mode of Operation• Role and Responsibilities• ED/OiC to prepare a second progress report on theimplementation of the pilot approach for ITTC58• Postpone review of implementation of Decision 5(LIV) untilat least 2023, take final decision of timing and ToR of thereview at ITTC58