Semi-Annual Report on FIP Operations. Mafalda Duarte, Program Manager May 15, 2015
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1 Semi-Annual Report on FIP Operations Mafalda Duarte, Program Manager May 15, 2015
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3 FIP Overview Total endorsed SC Approved MDB Approved Disbursed Funding (USD M) Projects Total endorsed Endorsed Investment Plans (8) Endorsed DGM concepts Endorsed Private Sector Set Aside Concepts Funding (USD M) Projects
4 Strategic Issues 1) FIP is expanding to new pilot countries and to new projects and programs in existing FIP pilot countries 2) The CIF AU, in collaboration with MDBs, is seeking to better understand ways to strengthen private sector engagement in the FIP; 3) Further clarification on the role of the FIP in the phased approach to REDD+; 4) Understanding current delivery rates for FIP funding approval, including progress in the DGM; 5) The FIP reporting agenda is in implementation and the CIF AU is acquiring capacity to support country results reporting; 6) Planning continues for the upcoming FIP Pilot Countries Meeting in Kinshasa, DRC
5 14 6 CRITERIA & PROCESS FOR ACCESSING FIP RESOURCES (1) Expansion of the FIP: new pilot countries Eligible countries submit EoIs Independent Expert Group Established Expert Group assesses EoIs & prepares recommendations FIP Sub Committee selects new pilot countries Scores of the 36 EOIs based on the Expert Group s assessment Africa Asia Pacific Mozambique Ecuador Guatemala Congo Republic Nepal Ivory Coast Tunisia Bangladesh Zambia Cambodia Cameroon Guyana Honduras Rwanda Uganda Madagascar Morocco Sudan Nicaragua Belarus Uruguay Ethiopia Kenya Kyrgyz Republic Afghanistan Turkey Tanzania Vanuatu Benin Dominica Samoa Haiti Jordan Montenegro St Lucia Togo ECA LAC MENA Category 1 Category 2 Category 3 Category 4
6 (1) Expansion of the FIP: new projects Pilot countries submit Project/Program Concept Notes Independent Expert Group Established Expert Group assesses Concept Notes & prepares recommendations FIP Sub Committee selects new projects/programs Country MDB Grant USD M Loan USD M Concept Note Title Assessment 100 Point Total EAP Lao PDR IBRD & IFC LAC Brazil IBRD IDB AFR Scaling Up Sustainable Forest Management Project Integrated Landscape Management in the Cerrado Biome Ecological Restoration Financing in the Cerrado Biome Peru IDB High Value Native Timber Reforestation On Degraded Lands In The Peruvian Amazon 66 Burkina AfDB Sustainable Management of the Fuelwood Sector 61 Faso DRC AfDB Support Project for the Development of Agroforestry in Four 51 Provinces Ghana IBRD Reducing Degradation and Deforestation due to Mining In 71 Forest Landscapes 74 72
7 (2) Private Sector engagement in the FIP Strengthening private sector engagement in the FIP: Study (co funded with IBRD), Stimulating private sector engagement in REDD+ sustainable forest management and landscape restoration efforts to broaden the understanding of how productive uses of forests and forest products could significantly contribute to increased climate change mitigation outcomes to identify options for enhanced private sector REDD+ sustainable forest value chain and landscape restoration investment efforts and engagement strategies. Innovative approach to engaging the private sector: Strategic Climate Fund (SCF) Private Sector Facility Enables a robust pipeline of innovative private sector projects and programs across SCF A first come, first serve approach Eligibility open to more countries One pool of fungible money and a single facility avoiding separate program calls for proposals Economies of scale & improved process efficiency
8 (3) FIP in the wider REDD+ architecture FIP is considered the REDD+ Missing Middle Phase I READINESS Phase 2 IMPLEMENTATION Phase 3 RESULTS BASED PAYMENTS Policy and strategy Investments in low carbon Poverty alleviation and shared Capacity building development prosperity Consultations Sustainable forest management Mitigation outcomes Social inclusion Smart agriculture Adaptation measures Green value chains 2 studies to better understand the FIP s relationship and position within REDD+: (1) Linkages between REDD+ Readiness and the Forest Investment Program (2) Linkages between the FIP and Performance based mechanisms (Agenda Item #) 50% of resources are allocated to enhancing enabling environment for forest landscape management and conservation and enhancing forest monitoring The other nearly 50 % is allocated to site specific demonstratio n investments
9 (4) Variance in delivery rates for FIP funding approval Indicative Allocation and FIP Funding Approvals by FIP Pilot (USD Millions) Burkina Faso, DRC, and Mexico 100% FIP funding approval USD M Indicative Allocation USD M Funding Approved Mexico, Burkina Faso and DRC 100% MDB approval as well FIP Funding Approval expected to increase by USD million to a total USD million FIP approved by end FY15
10 (5) FIP reporting agenda in implementation FIP results reporting is now an integral part of the FIP operational cycle & the first round of results reports submitted used a diverse range of methodologies for greenhouse gas (GHG) accounting Study commissioned: comparative analysis of the ex-ante GHG emission reduction accounting methodologies used in FIP projects. Recommendations are expected to help harmonize ex-ante and MRV GHG emission reduction accounting for FIP projects. The CIF AU has acquired greater capacity in order to support country results reporting beyond the support provided by MDBs and has already agreed to support Lao PDR. (6) Knowledge Management Update Planning continues for the upcoming FIP Pilot Countries Meeting in Kinshasa, DRC in June 2015, in conjunction with the Government of DRC.
11 Implementation Status of FIP # of projects under development for submission to FIP Sub Committee # of projects with FIP Sub Committee funding approval being processed for MDB approval # of projects with FIP Sub Committee funding approval and MDB approval All FIP Investment Plans endorsed 5 projects under implementation and disbursing Pipeline is active, FIP funding approval request steadily flowing in
12 Co-financing in FIP In endorsed FIP investment plans (in preparation and FIP funding approved) Leverage Ratios % % 94 9% % % Government Private Sector MDBs Bilaterals Others Co financing Partners: Governments MDBs European Commission Agence Francaise de Development GEF JICA FCPF KFW Moore Foundation Based on projections (IP stage) 1:2.2 Based on approved projects 1:2:8
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