Forest Carbon Partnership Facility


Contents

  1. 1 Summary
  2. 2 Graphs and statistics - Carbon Fund
  3. 3 Graphs and statistics - Readiness Fund
  4. 4 Basic Description
  5. 5  Fund Governance
  6. 6 Relationship with Official Development Assistance
Summary

The Forest Carbon Partnership Facility (FCPF) is a World Bank programme and consists of a Readiness Fund and a Carbon Fund. The FCPF was created to assist developing countries to reduce emissions from deforestation and forest degradation, enhance and conserve forest carbon stocks, and sustainably manage forests (REDD+).

Graphs and statistics - Carbon Fund



Graphs and statistics - Readiness Fund


 
    Notes

  •  Latest confirmation received from Fund Managers: May 30, 2013. Contributions data is as of October 2013. Projects data is as of May 30, 2013.
  • FCPF reports total receipts (pledges & deposits) from: 
    • NICFI of US$91.2 million. NICFI reports contributions of US$85 million to FCPF. This discrepancy might be due to variations or fluctuations in exchange rates.
    • UK-ICF of US$23.7 million. UK-ICF reports contributions of US$10 million to FCPF. This discrepancy might be due to the inclusion of contributions from UK-ICF’s predecessor, the UK Environmental Transformation Fund (ETF), in CTF reports.
    • IFCI of US$30.3 million, which corresponds with IFCI's reported contribution of 'over US$30 million' to FCPF.


Basic Description

Name of Fund

Forest Carbon Partnership Facility (FCPF)

 
Official Fund Website
 
www.forestcarbonpartnership.org


Date Created
Date fund proposed: Initial discussions in 2006, concept note dated 16 March 2007.

Date fund made operational: 25 June 2008*.

*The FCPF became operational upon the operational date of the Readiness Fund.
 
Proposed Life of Fund

 
Both the Readiness Fund and the Carbon Fund of the FCPF are established through to 2020.

Administrating Organisation

The World Bank

Objectives

The FCPF aims to:

 1.     Provide financial and technical assistance to

  • assist eligible REDD Countries achieve emission reductions from deforestation and/or forest degradation; and
  • build recipient country capacity for benefitting from possible future systems with positive incentives for REDD;

 2.     Pilot an emissions reduction performance-based payment system generated from REDD activities, to ensure equitable benefit sharing and promote future large scale positive incentives for REDD;

 3.     Test ways within the REDD approach to conserve biodiversity and sustain or enhance livelihoods of local communities; and

 4.     Disseminate the knowledge gained through the development and implementation of the FCPF and related programmes.


Activities Supported

Activities supported by the FCPF:

  • The Readiness Fund helps prepare developing countries for participation in a future, large-scale, system of positive incentives for REDD. This includes support for: 
    • Developing national reference scenarios for REDD; 
    • Adopting a national REDD strategy that reduces emissions, conserves biodiversity and enhances the livelihoods of forest-dependent indigenous peoples and other forest dwellers; and
    • Designing and implementing accurate measurements, monitoring and verification systems to enable reporting on emissions from deforestation and forest degradation. 
  • The Carbon Fund provides payments for verified emission reductions from REDD+ programs in countries that have made considerable progress towards REDD+ readiness. Assistance is divided into four main categories: 
    • General Economic Policies and Regulations (taxation, subsidies, rural credit, certification, law enforcement).
    • Forest Policies and Regulations (taxation, subsidies, certification, concession regimes, securing land tenure and land rights, forest law, governance and enforcement, zoning, protected areas, payments for environmental services (PES)).
    • Forest Management (forest fires, reduced impact logging, reforestation).
    • Rural Development (community development, rural electrification, community forestry)

Conditions & Eligibility Requirements

Conditions for participation in the Readiness Fund


  1. Being an Eligible REDD Country
    • An eligible REDD country is:
      1. A Borrowing Member State of the IBRD or IDA; and 
      2. Located in the Tropical Area or Sub-tropical Area
  2. Relevance of Country in the REDD context
    • Priority should be given to countries with following characteristics:
    • Significant forest area and carbon stock;
    •  High relevance of forests in the national economy; and
    • High current or projected deforestation or forest degradation rates.
  3.  Quality of the Readiness Plan Idea Note (R-PIN)
    • Evaluation of R-PIN quality includes the extent of programme ownership by the government and relevant stakeholders, coherence with national or sectoral strategies, and feasibility to reduce deforestation and forest degradation. 
  4. Geographic and Biome Balance
    • Selection takes into account the need to balance experiences and learning across different continents and across the world’s main forest biomes.
  5. Variety of Approaches
    • Consideration is given to approaches that can contribute to the learning objective of the FCPF.


Conditions for participation in the Carbon Fund

A few countries that have successfully participated in the Readiness Fund may be selected, on a voluntary basis, to participate in the Carbon Fund.

 
Accessing the Fund

Participation in the Readiness Fund

  1. An Eligible REDD Country submits a Readiness Preparation Proposal Idea Note to the Facility Management Team; 
  2. Upon approval by the Participants Committee, the Eligible REDD Country enters into a REDD Country Participation Agreement with the Trustee of the Readiness Fund; and 
  3. The Trustee of the Readiness Fund may enter into one or more Grant Agreements to fund a Readiness Preparation Proposal by a REDD Country Participant.

Participation in the Carbon Fund

A few countries that have successfully participated in the Readiness Fund may be selected, on a voluntary basis, to participate in the Carbon Fund.  Countries that have made considerable progress towards REDD+ readiness, submit programme proposals that are assessed according to the following criteria:

  • Potential for generating high quality sustainable emissions reductions and social and environmental benefits;
  • Scale of implementation;
  • Consistency with emerging compliance standards under the UNFCCC and other regimes;
  • Potential to generate learning value for the FCPF and other participants;
  • Clear and transparent ‘benefit sharing’ mechanisms with broad community support; and
  • Transparent stakeholder consultations.
 
 

 Fund Governance

Decision Making Structure

 

The FCPF governance structure consists of a:

  • Participants Assembly;
  • Participants Committee;
  • Carbon Fund Participants Committee;
  • Facility Management Team;
  • Trustee of the Readiness Fund;
  • Trustee of the Carbon Fund; and
  • One or more Ad Hoc Technical Advisory Panels.
Participants Assembly
The Participants Assembly provides oversight and guidance to the Participants Committee. Primarily a forum for information exchange and knowledge sharing, it is attended by participants from the Carbon Fund, eligible REDD countries and donor countries. To overturn decisions of the Participants Committee, a minimum of two-thirds majority from REDD Country Participants and two-thirds collective majority from Donor Participants and Carbon Fund Participants is required.

Observers to the Participants Assembly:
Representatives of Relevant International Organizations, Relevant Non-governmental Organizations, Forest-Dependent Indigenous Peoples and Forest Dwellers and Relevant Private Sector Entities, may be invited by the Facility Management Team to attend Annual Participant Assembly Meetings as observers.

Participants Committee
The Participants Committee is the managerial body responsible for overseeing and facilitating operations of the FCPF. The Committee consists of 28 members (14 REDD Country Participants and 14 members collectively from Donor Participants and Carbon Fund Participants) and each member is entitled to one vote.  Decisions are made by consensus but should efforts to reach consensus fail, a two thirds majority of members present and voting will suffice.

Observers to the Participants Committee:
One representative each from relevant international organizations, non-governmental organizations, Forest-Dependent Indigenous Peoples and Forest Dwellers, private sector entities, the UN-REDD Programme and UNFCCC Secretariat, will be invited to attend the meetings of the Participants Committee as observers.  These representatives do not have voting rights, but may express their views on issues under discussion.

The Carbon Fund Participants Committee
The Carbon Fund Participants Committee makes decisions on specific carbon transactions.

Facility Management Team
The Facility Management Team is responsible for the day-to-day operations of the FCPF. 

Ad Hoc Technical Advisory Panels
One or more Ad Hoc Technical Advisory Panels may be established by FCPF’s governance bodies (Participants Committee or the Facility Management Team, etc.) for the purpose of securing technical advice and information.  Each Ad Hoc Technical Advisory Panel shall is independent and impartial.

Non-Government Stakeholder Participation

 

Forest dwelling and indigenous peoples were not consulted prior to the launch of the FCPF in 2007. However, the World Bank responded to criticisms of this consultation failure, by organising a series of three regional consultations with representatives of forest dwellers and indigenous people in Kathmandu, Bujumbura and La Paz. As a result of these consultations, it was decided that representatives of indigenous peoples would be included on each of the FCPF Technical Advisory Panels and that they are fully consulted in the formulation of national REDD strategies.

Information Disclosure

 
The Readiness Fund and each of the Tranches of the Carbon Fund have separate records and ledger accounts. The Fund Trustees provide to the Participants, all financial information relating to receipts, disbursements and fund balance via the World Bank’s Trust Funds Donor Center secure website. Disbursement information is also made available in the FCPF Annual Report and on the FCPF website.

Disclosure Policy

Prior to each Annual Meeting of the Participants Assembly, the Facility Management Team will provide annual progress reports to Participants regarding the activities of the Facility for the previous Fiscal Year.

Additionally, the Facility Management Team shall make the following documents available to the Participants and to the public: 
  • R-PINs for those Eligible REDD Countries that have been selected as REDD Country Participants, R-PPs, Grant Agreements, reports on implementation of Grant Agreements and any other information submitted by REDD Country Participants;
  • Reports and conclusions of the Participants Committee;
  • Information on Emission Reductions Programs selected by the Carbon Fund Participants;
  • Where appropriate, findings and advice from the Ad Hoc Technical Advisory Panels;
  • Information on good practices and lessons of experience learned through operation of the Facility; and
  • Any other information as deemed appropriate by the Facility Management Team.
 
 Safeguard Policies
 
The FCPF’s delivery partners are expected to follow the World Bank’s overarching safeguard policies, which fall under the following relevant categories: environmental assessments; natural habitats; forests; physical cultural resources, involuntary resettlement; and indigenous peoples.

The FCPF Readiness Fund has adopted a so-called ‘common approach’ for addressing social and environmental safeguards with multiple delivery partners. The FCPF has produced joint ‘Programme Guidelines on Stakeholder Engagement in REDD+’ with the UN-REDD programme, and also requires adherence to its guidance on disclosure of information.

The Centre for International Environmental Law (CIEL) advocates a human rights-based approach to REDD+ safeguards that is consistent with international human rights obligations and centred on a “do no harm” approach to interventions. It has criticised the FCPF’s safeguard approach for not being sufficiently rights-based, because the World Bank’s policies and procedures do not fully reflect existing human rights obligations. On the other hand, CIEL approves the FCPF’s explicit recognition of the need for a grievance and redress mechanism for instances when REDD+ activities have unintended negative consequences on local stakeholders.


 Issues Raised


FCPF Progress
An external evaluation of the FCPF in 2011 confirmed that the FCPF has made significant progress, specifically in building in-country capacity and disseminating lessons learned.  However, the report was critical of the pace of financial commitments and disbursements from the Readiness Fund, the inflexibility of rates to adjust to country needs, the lack of in-country procurement capacity and the limited country level involvement of World Bank staff.

Non-government Stakeholder Consultation and Participation
The FCPF was criticised for its failure to adequately consult non-government stakeholders prior to its public launch in 2007. Failure to facilitate full consultation and participation of indigenous and local peoples is a recurring criticism.

Human Rights, Indigenous Rights and Traditional/Customary Rights
In a report by the Forest Peoples Programme and FERN, the World Bank was criticised for failing to uphold commitments on human rights. The FCPF Draft Charter fails to include any safeguards for indigenous rights, and there are concerns that the process and content of FCPF ignores traditional and customary rights, implying that all control of forest lands rests with governments.  

Project/Programme Failings
Civil society groups, including Rainforest Foundation and Global Witness have criticised the Peru R-PP for presenting an incomplete picture on the drivers of deforestation and governance issues, specifically in relation to the on-going conflicts between indigenous groups and industrial logging companies and mining concessionaires. The FCPF process in Cameroon sparked similar concerns, glossing over critical land tenure, carbon rights, and benefit sharing issues.   

 
 

Relationship with Official Development Assistance

Inclusion as Official Development Assistance?

Yes.

Financial Instrument/ Delivery Mechanism Used (e.g. grant, loan)

The Readiness Fund is grant-based. Within the Carbon Fund, funds are delivered in exchange for emission reductions.

 

Nature of Recipient Country Involvement

 

The FCPF is characterized by a governance structure that gives equal weight to developing and industrialized countries.  The FCPF respects recipient countries’ national policies and sovereign rights to manage their own natural resources.  Recipient countries’ determine specific strategy options and the manner in which to use the Readiness Mechanism (to prepare for REDD) or the Carbon Mechanism (to reduce GHG emissions). The countries are given autonomy to individually prepare and submit proposals to the Facility under both mechanisms.