Archive for the ‘world bank’ Category

With the approval of the readiness plans for Guyana and Panama, the World Bank moves its Forest Carbon Partnership Facility forward despite civil society protests World Bank Information Center, 29 June 2009

bicThe third meeting of the Participants Committee (PC) of the World Bank’s Forest Carbon Partnership Facility (FCPF) was held in Montreaux, Switzerland, from 15-18 June 2009. On the agenda for this meeting were readiness plans (R-Plans) from three countries: Guyana, Panama and Indonesia. While there was significant debate within the PC around weaknesses in all three R-plans, the political pressure to move the process forward won the day, with approval of the Guyana and Panama plans, and approval pending for Indonesia.

The TAP reports for Guyana, Panama and Indonesia all noted significant weaknesses in the R-Plans, one of the main complaints being that their analysis of the drivers of deforestation was incomplete and poorly aligned with their proposed strategies. Another big issue is the weak governance of forests in the majority of REDD countries, Guyana and Panama being among those with relatively strong institutional frameworks. Because many of the last remaining areas of forest in the world are home to indigenous peoples who are, in many cases, responsible for their preservation, states must finally recognize the land and natural resource rights of their indigenous peoples. Such recognition must be accompanied by demarcation, land titling and effective protections against encroachment by miners, loggers and settlers. This requires political will at the top level of government, and entails some degree of confrontation with powerful economic interests who are currently profiting from deforestation.

The approval of the R-Plans also places the spotlight on the governments of Guyana, Panama and Indonesia, who, as the first countries to formally begin REDD readiness under the auspices of the World Bank, will be carefully scrutinized. The experiences of these pilot countries will be used to assess whether the FCPF process is capable of facilitating sustained and effective engagement with civil society and indigenous peoples, and of producing high quality plans for reducing deforestation that are credible both nationally and internationally.

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Cutting corners: how the FCPF is failing forests and peoples Kate Dooley, Tom Griffiths, Helen Leake, Saskia Ozinga, FERN, November 2008

cutting cornersIn December 2007 the World Bank launched its Forest Carbon Partnership Facility to act as a ‘catalyst’ to promote public and private investment in ‘REDD’ (Reduced Emissions from Deforestation and Forest Degradation) and to support demonstration pilot projects for developing and implementing national REDD strategies. To access the funds gathered by the Facility countries had to submit Readiness Project Idea Notes (R-PINs).

This FERN-FPP report analyses nine of the first 25 R-PINs1 approved to try to assess the extent to which the Facility is fulfilling some key social commitments set out in its Charter, and to determine whether or not it is addressing some of the main concerns raised by indigenous peoples and
civil society organizations relating to REDD, including governance, human rights, land tenure, and Free Prior and Informed Consent (FPIC).

“Overall, this review finds the process to date has been rushed, implicitly directed towards a market based REDD and dominated by centralized government, with little to no consultation with indigenous peoples, local communities or civil society organizations. The poor quality of some R-PINs that have been approved suggests that the Bank’s carbon finance unit is keen to get the Facility up and running as quickly as possible, and this accelerated approach has meant that approval of R-PINs has been rushed and corners have been cut. Furthermore, the review finds that the FCPF is not meeting some of the key social commitments it has made.” – Extract from Cutting Corners

The report concludes that both the process and the proposals adopted do not respect the Bank’s own guidelines. The report also includes an annex which details the World Bank funded REDD process.

Download Cutting Corners [pdf]… Also available in French and Spanish.

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Financing Flows and Needs to Implement the Non-Legally Binding Instrument On All Types of Forests: A study prepared for the Advisory Group on Finance of the Collaborative Partnership on Forests with the support of the Program on Forests (PROFOR) of the World Bank, October 2008

UN Forum on Forests

Written by Markku Simula, this background paper was prepared for the Advisory Group on Finance of the Collaborative Partnership on Forests, in advance of the meeting of the Ad Hoc Expert Group on Finance of the UN Forum on Forests (UNFF), which will be held from 10-14 November 2008, in Vienna, Austria. The paper maps the needs and available sources and mechanisms for funding, taking into account recent developments, including in the climate change regime.

According to the paper, avoiding deforestation would be among the lowest cost mitigation options to avoid increasing CO2 emissions and possibly also increasing carbon sinks. At the same time, other benefits like biodiversity conservation, poverty reduction and climate change adaptation could also be
enhanced. Through carbon revenue, prospects for the economic viability of SFM in developing
countries are expected to substantially improve as at least part of the ecosystem services that
forests provide could be remunerated.

“REDD compensation as a win-win instrument is being increasingly supported by practically all stakeholders for a variety of reasons. For tropical country governments REDD can represent an opening of a new source of financing for national priorities; for donor countries it can be a low cost option for carbon offsets; for environmental NGOs REDD can generate additional resources for biodiversity conservation; for the rural poor badly needed income and financial support to community development as well as a means to improve their forest tenure rights; for the private sector REDD can be an additional source of funding to make SFM financially viable; for political elites yet another opportunity of income; for multilateral development banks REDD can open up new ways of doing business in the context of maintenance of global public goods; and for intergovernmental organizations it offers a new area of intervention in technical assistance and a new funding source.” — Markku Simula, extract from Financing Flows and Needs to Implement the Non-Legally Binding Instrument On All Types of Forests

The report notes that meeting such a broad range of varied interests in REDD schemes will be difficult and several issues need clarification: (i) uncertainty about co-benefits, (ii) risk for violating the rights of indigenous and other local populations, (iii) possible impact on land prices, (iv) equity in distribution of REDD payments, (v) governance arrangements of REDD schemes, (vi) slowness of necessary national-level policy and legal reform processes, (vii) stakeholder participation, (viii) limited access to REDD financing by only forest-rich countries, (ix) possible exclusion of countries which have already addressed deforestation, (x) possible exclusion of drylands and other low carbon intensity forest lands, (xi) definitions and methodologies for treatment of land degradation and restoration of deforested areas, (xii) measures to address underlying causes for deforestation and forest degradation, (xiii) lack of proper understanding on the role of timber harvesting in carbon stock management, (xiv) the level of REDD application (national, sub-national or project), (xv) use of a market mechanism or a fund mechanism, (xvi) possible flooding of the carbon offset markets with REDD credits, (xvii) transaction costs, etc.

Download the Financing Flows and Needs to Implement the Non-Legally Binding Instrument On All Types of Forests paper [pdf]…

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High Demand Prompts Forest Carbon Partnership Facility to Expand Beyond Original 20 Developing Countries
World Bank | 24 October 2008


With more than 40 developing countries asking to become part of the Forest Carbon Partnership Facility, the FCPF has announced that it aims to expand its expected number of developing country participants from 20 countries to 30. T

Twenty-five developing countries selected so far to benefit from the FCPF are working with 11 industrialized countries and one non-governmental organization in an innovative partnership and international financing mechanism to combat tropical deforestation and climate change. The FCPF is comprised of two components—a Readiness Fund and a Carbon Fund.

“I am impressed by the level of interest expressed in the FCPF by developing countries… We thought 20 would be a reasonable target, but more than 40 countries have said they were interested. Countries are investing considerable time and resources to prepare themselves for REDD, and they should be commended for taking these steps.” — Katherine Sierra, Vice President, Sustainable Development, the World Bank

The developing countries accepted into the Facility include 10 in Africa (Cameroon, the Democratic Republic of Congo, Ethiopia, Gabon, Ghana, Kenya, Liberia, Madagascar, Republic of Congo and Uganda); 10 in Latin America (Argentina, Bolivia, Colombia, Costa Rica, Guyana, Mexico, Nicaragua, Panama, Paraguay and Peru); and five in Asia and the South Pacific (Lao PDR, Nepal, Papua New Guinea, Vanuatu and Vietnam).

The FCPF aims to reduce deforestation and forest degradation by compensating developing countries for greenhouse gas emission reductions. Tropical and sub-tropical countries will receive grant support as they build their capacity to tap into future systems of positive incentives for REDD, in particular by establishing emissions reference levels, adopting REDD strategies, and designing monitoring systems.

In addition, indigenous peoples will benefit from one of the first decisions of the FCPF Participants Committee, elected this week in meetings in Washington. Made up of 10 donor and carbon fund participants and 10 developing country participants, the committee approved a Capacity Building Program for forest-dependent indigenous peoples and other forest dwellers—a US$1,000,000 ‘small grants’ program to build effective links with forest-dependent indigenous peoples and other forest dweller communities on REDD through the FCPF.

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Climate change aid bitter-sweet for Guyana says president
Caribbean Net News | 1 August 2008

GUYANA: Guyana’s President Bharrat Jagdeo says he is pleased that Guyana is among 14 countries selected for financial aid for combating tropical deforestation and climate change from an initial US$82 million partnership. Guyana will receive the funding from the Forest Carbon Partnership Facility (FCPF), which is aimed at reducing deforestation and forest degradation by compensating developing countries for greenhouse gas emission reductions. However, the Guyanese leader expresses dissatisfaction with the mechanism through which these payments will be effected.

“I’m arguing that it should change. It’s a clean development mechanism and I’m arguing that this should be changed to a market-based mechanism especially to trade carbon and carbon dioxide from forest, that is, sequestered through tropical rain forests.” — Bharrat Jagdeo, President of Guyana

He argued that the forests produce the same type of service to the rest of the world and he did not understand why they should be treated any differently.

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14 countries win REDD funding to protect tropical forests
MongaBay | 24 July 2008


Fourteen countries have been selected by the World Bank to receive funds for conserving their tropical forests under an innovative carbon finance scheme. The 14 developing countries include six in Africa (the Democratic Republic of Congo, Gabon, Ghana, Kenya, Liberia, Madagascar); five in Latin America (Bolivia, Costa Rica, Guyana, Mexico, Panama); and three in Asia (Nepal, Lao PDR, and Vietnam). The countries will receive grant support as they build their capacity for REDD, including establishing emissions reference levels, adopting strategies to reduce deforestation, and designing monitoring systems.

The initiative, known as the Forest Carbon Partnership Facility (FCPF), was unveiled last year as a way to kick start Reducing Emissions from Deforestation and Degradation (REDD), a proposed mechanism that would reward countries with carbon credits for preserving their forest cover. Globally deforestation accounts for nearly one-fifth of anthropogenic greenhouse gas emissions — more than the transport sector.

“Deforestation and forest degradation together are the second leading man-made cause of global warming. They are responsible for about 20% of global greenhouse gas emissions, and the main source of national emissions in many developing countries. For that reason, we have been eager to initiate this partnership and assist countries while building a body of knowledge on how best to reduce greenhouse gas emissions by protecting forests and helping the people who benefit from them.” — Joëlle Chassard, Manager of the World Bank’s Carbon Finance Unit

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World Bank told to step back from forest reform
Carbon Positive | 16 July 2008

NETHERLANDS: Forestry experts agree on the need for a new global partnership to ensure sustainable forests initiatives deliver on environmental needs and work for the poor. But they say the World Bank, which last year proposed the collaboration, should not take an active role in the initiative. That’s the message in a report by the International Institute for Environment and Development (IIED), based on a survey of more than 600 forest experts in Brazil, China, Ghana, Guyana, India, Russia and Mozambique, as well as those attending international meetings.

The World Bank last year proposed a new global programme, the Global Forests Partnership (GFP), to reduce deforestation and unsustainable forestry use, drawing together the Bank’s and other forest initiatives under one umbrella. The thrust of the IIED report conclusions is that the World Bank should step away from such a process and take a “hands off” approach that allows smaller, forest-dependent stakeholders to build a truly effective alliance from the bottom up. It appears this feedback to some extent reflects resistance among some NGOs about the World Bank taking an active role after what they felt was a negative experience with its programmes in the past. The survey respondents also agreed that the programme has to tie in with sustainable forests initiatives at global, national and local levels to be effective.

The IIED says a key challenge of relevance for a GFP is how it can add value beyond the the Collaborative Partnership on Forests (CPF), an alliance of 14 mostly UN forest-related organisations to support the work of the United Nations Forum on Forests (UNFF) and enhance cooperation and coordination on forest issues. The IIED report suggests a staged development process targeting a launch of the partnership within three years. It recommends the World Bank review its processes and mechanisms before revising its Forest Sector Business Plan. This would, among other things, remove “the contradictions created by actions in other sectors affecting forests”.

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