Design and implementation of REDD+programs at the jurisdictional scale throughthe World Bank Forest Climate Funds
Alexander LotschSenior Carbon Finance Specialist
World Bank Group
January 28, 2016
FFPRI Workshop, Tokyo (via webex)

Humbo, Ethiopia

2004Today

LAND REQUIREMENTS FROM DIFFERENT SECTORSARE MULTIPLE, LARGE AND COMPETINGHigh land demand
scenario for 2050

Source: Canadell & Schulze 2014

TRANSFORMING LANDSCAPES REQUIRESINNOVATIVE WAYS TO …
ENGAGE PEOPLE

HARNESS TECHNOLOGYLEVERAGE FINANCE

THE CHALLENGE WE ADDRESS:TO PROMOTE RURAL DEVELOPMENT IN A CLIMATE-SMART WAY

CLIMATE CHANGE:
1/4 of global greenhouse gas emissions
come from deforestation, unsustainableagricultural practices and land-use.
Agriculture is the main driver ofdeforestation worldwide.

RURAL POVERTY:
75% of the world’s poor are rural anddepend on healthy landscapes for theirlivelihoods, food security, and development
opportunities.

Reverse emission trends: Land can be a Reverse land degradation trends:
carbon sink if managed well.
alleviate poverty and share prosperity.

Forests and Landscapes Climate Finance (CCGFL)
Working toward climate smart landscapes“Transforming land, lives, and the way we do business.”• $1.6 billion of carbon finance for forests and landscape transformation• Pioneering new incentive mechanism: Results-based finance for emission
reductions at the landscape level• Working across Sectors: Environment, Agriculture, Energy & Extractives• Global reach: Operations in 54 countries and in 5 regions• Fostering public-private sector partnerships: Collaboration with IFC (WorldBank private sector arm) and commodity corporates at global and local level

OUR FUNDS ($1.6 BILLION)
Forest Carbon Partnership Facility (since 2008) $1.3M
Readiness$360M
Carbon Fund
$956M

Grants and technical assistance fornational-level readiness in 47 countries
Results-based finance for jurisdictions

Initiative for Sustainable Forest Landscapes (ISFL)(2013) $300M
Technical Assistance $75M
Result-based payments $225M

For jurisdictional programsin 4 countries

BioCF Tranche 1 & 2 (CDM and voluntary markets) (2004) $90M
Technical Assistance $6.3M

methodology innovation globally

Result-based payments $83.3M

for 20+ projects in 16 countries
7

SCALING-UP OUR PROGRAMS:
In parallel, we are supporting
countries to be ready to take climatesmart land-use to national scale100
million ha(FCPF Readiness Fund)

Average scale ofintervention

10 millionha

To scale-up impact, we now target
landscape-level transformation(BioCF ISFL & FCPF Carbon Fund)

In 2004 we began project-levelpilots to change land-use(BioCF T1/2)-10,000 ha2004

2015

Key outcomes so far
Learning value
Step in the right
direction to desired
impact on climate
2030

8

Where we work:
14 countries with large scale climate-smart land-use programs under development(FCPF Carbon Fund & BioCF ISFL)

54 countries with REDD+ readiness support (FCPF) or projects (BioCF T1/T2)

MexicoNepal
Vietnam

Ghana

GuatemalaEthiopia

Colombia

Costa Rica

Indonesia
RoCPeru

ZambiaChileDRC

Our work across sectors:
To achieve climate-smart land use, protect forests,
restore degraded land, and improve local livelihoods, weneed action across sectors. Example actions include:
Agriculture:

Decouple deforestation from agriculturecommodity growth

Energy:Improve the fuelwood/charcoal value
chainTransport:

Plan to minimize environmental impact

Land:

Invest in land use planning, address land
tenure issues

Mining:Set “high” environmental management
standards

Forestry:

Governance, Sustainable Forest
Management, Community Forestry

Our Business Model:
EnablingEnvironment••••

Development
ActionPolicy and Strategy
Capacity Building
Social Inclusion
Consultation•••

Low-Carbon
Development
Benefits

Investments in low
carbon development
Sustainable
Management ofForests
Climate-smart
agriculture•••

Poverty Alleviation
Shared Prosperity
Climate Change
Mitigation andAdaptation

We provide:
Grant Funding;Technical Assistance

We “crowd-in”:

Results-Based Finance forEmission Reductions

Private and Public Finance (including IDA,IBRD, FIP, GEF financing)An inclusive, innovative and transparent
approach to engage stakeholders

14

The REDD+ Decision
Support Toolbox
Online tool with a simple interface,supported by a comprehensive database,that• Informs the technical approach for reference
levels (RL), forest monitoring, andmeasurement reporting and verification(MRV)• Facilitates technical and policy decisions
related to RL and MRV• Integrates a range of variables required forestimation emissions

forestcarbonpartnership.org/dst

REDD+ training materials
 Developed by GOFC-GOLD LC PO & Wageningen
University in partnership with the FCPF

 Respond to the need for technical assistanceand guidance for countries to develop capacities
and implement REDD+ monitoring and reporting Provide a set of modular training materials thatcan be used in combination with complementary
guidance documents

 Based on GOFC-GOLD Sourcebook, building
upon the GOFC-GOLD expert network,
supported by independent review process For developing countries and capacity
development efforts

STANDARDS WE HAVE DEVELOPEDTO PILOT REDD+REDD+ READINESS ASSESSMENT FRAMEWORKCARBON FUND METHODOLOGICAL FRAMEWORKGENERAL CONDITIONS FOR EMISSION
REDUCTION PAYMENT AGREEMENTS

Key Features of Carbon Fund REDD+ Programs
CostaRica

Mexico

Ghana

DRC

Nepal

Chile

Rep. ofCongo

Vietnam

Guatemala

Peru

Indonesia[million ha, % of country]

4.1(80%)17.7(9%)5.9(25%)12.3(5%)2.3(15%)16.5(22%)12.4(36%)5.1(16%)10.9(100%)15.6(12%)12.5(9%)Forest Area in Accounting
Area [million ha, % ofn/a17.7(100%)

4.6(77%)9.8(80%)1.2(52%)8.4(51%)12(97%)

2.3(45%)3.7(34%)13.1(84%)

4.2
(34%)

(10.615.3)

6.2

28.5

23.9

4.4

9.4

6.2

.71

11.5

17.6

60.7

[million tCO2e/yr]

n/an/an/a

6.0

n/an/a5.1

n/an/a3.1

n/a

Estimated Program ER
2016-2020 (5 years)

14.72.4

8.7

18.5

34.22

14.0

7.5

11.73

20.62

21

20.73,453.44

Accounting Area

Accounting Area]

Average Annual Emissions
during Reference Period[million tCO2e/yr]

HFLD Adjustment[million tCO2e]-4.71

1 Emissions minus Removals
2 ERs from reduced emissions plus enhanced removals
3 Includes adjustment for High Forest Low Deforestation (per Methodological Framework)
4 Adjusted from ER-PIN to align with 5 year program period(16-15.3)

Key Features of Carbon Fund REDD+ Programs(cont.)Countries/Characteristics
Accounting Area [millionha, % of country]
Forest Area in Accounting
Area [million ha, % ofAccounting Area]
Average Annual Emissions
during Reference Period[million tCO2e/yr]

Cote d’Ivoire

Dominican

RepublicFiji

Lao PDR

Madagascar

Mozambique

Nicaragua

4.2
[13%]

4.8
[100%]

1.6[90%]

8.1
[35%]

4.7[8%]

3.8[5%]

7[54%]1.1[28%]1.9[39 %]

1[62%]

4.2
[52%]

4.0
[85%]

2.3
[59%]

2.9
[42%]

15.8

(emissions)0.3(emissions)

12.1

3.9

21.5

2.8

5.4

6.9

(removals)

Estimated Program ERs*
[million tCO2e]
Total ERs offered toCarbon Fund ** [milliontCO2e]7.2(removals)

15

15.6

3.6

7.0

16.4

5.8

13.7

16.5

7.5

3.6

7.0

16.4

8.7

11

* Values normalized to correspond to 5-year ERPA **As per ER-PIN, not adjusted (5+ years) # Annually; outstanding questions on CF Method. Framework

Example Vietnam: 6 Provinces
Ecological Regional Approach:• The North Central AgroEcological Region (NCAR).
• 6 provinces; 5.1 M. ha total
area (16% Vietnam); 2.3 M.
ha of forests; 160 MtCO2e
emitted during 2000-2010.
• 11 M. people in the region.
• Jurisdictional approach:
Provincial REDD+ Action Plans• Ambitious, scalable financing,implementation and capacity
building plans for eachprovince• Broad support of government
priorities from several
development partners

Example Vietnam: Phased Implementation
2016

REDD+ readiness preparation
Development of National
Strategies on Climate
Change, SD and Green
Growth, NRAP and otherrelated policies/measures,and capacity-building

Implementation ofnational policies, further
capacity-building; resultsbased demonstration
activities

2020

REDD+ implementation

Results-based actions –fully MRV’ed

Financing of Program Activities(incl. WB Policy Lending jointly with JICA,
AFD through budget support)

COUNTRY EXAMPLE BIOCF ISFL: ETHIOPIA
Program profile
Jurisdiction
Size of jurisdiction
Population in jurisdiction
Accounting area
Implementing agency
Proposed funding envelope size
Date program opened

22

Oromia Forested Landscape Program (OFLP)
Oromia State, Ethiopia
28.5 million hectares
30+ million
All forests in Oromia
Oromia Forest and Wildlife Enterprise andregional bureaus$18 million upfront grant, up to $50 million forER payments
September 2014

Implementation of REDD+ at scale requires …
• Sound governance and stakeholder engagement• Leveraging of finance, including from the privatesector• Investment finance, clear financial flows andinnovative benefit sharing• Sustained technical support and capacity building,especially at the jurisdictional level• Leadership and effective inter-sector coordination

THANK YOU