The presentation of Mirko Serkovic, of the World Bank, to the IIED-hosted Moving ahead with Reducing Emissions from Deforestation and forest Degradation (REDD+) workshop on 9-10 April 2014. The presentation, made in the third session on experiences from the ground and REDD+ financing, focused on the BioCarbon Fund Initiative for Sustainable Forest Landscapes and the Forest Carbon Partnership Facility Carbon Fund. More information on the World Bank's work: http://www.worldbank.org/. Further details of the workshop and IIED's work on REDD+ are available via http://www.iied.org/coverage-moving-ahead-redd-prospects-challenges-workshop.

1. REDD+ FINANCING: BIOCF AND FCPF
WORLD BANK CARBON FINANCE UNIT
Mirko Serkovic
April 2014

2. 2
• RBF involves testing mechanisms whereby the country (or actors within the countries)
would receive payments against demonstrating results towards REDD+
• These results could be:
1. Proxies to emissions reductions, such as policy reforms that create an enabling
environment to reducing deforestation or investments towards law enforcement or
towards creating incentives for agriculture expansion into degraded areas (as
opposed to expanding into primary forests);
2. GHG emissions reduction from deforestation verified by a third party
THE NEED FOR RESULTS-BASED FINANCING (RBF) FOR REDD+
Intermediary Indicators
•XX HAs under community
management
•YY HAs under conservation
agriculture
•Land use plan adopted
•…
Emissions Reductions
• Measured against an agreed
baseline and verified by a
third party
Y1Y2Y3Y4Y5…Y30
REDD+
sustainability
and scale up

3. 3
WORLD BANK FINANCING INSTRUMENTS FOR REDD+
• Two instruments managed by the World Bank offer this type of
results based financing:
Forest Carbon Partnership Facility (FCPF)
• The FCPF’s Carbon Fund is designed to pilot performance-based
payments for emission reductions from REDD+ programs in a
small number of FCPF countries
BioCarbon Fund (BioCF)
• Through the Initiative for Sustainable Forest Landscapes (ISFL)
the BioCF promotes and rewards GHG emissions reductions from
the land sector, including REDD+, more sustainable
agriculture, as well as smarter land use planning and policies

4. 4
• Both instruments offer:
– New incentives for sustainable land-use that contribute to sustainable
development goals
– Performance-based payments for verified emission reductions
– Scalable approaches through Emissions Reductions Programs
– Technical assistance on REDD+
– Valuable co-benefits (biodiversity, rural poverty, social, etc.)
– Diversity of learning opportunities that address drivers of deforestation
– Others…
SIMILARITIES

5. 5
DIFFERENCES
FCPF
Carbon Fund
• $465 million for 4 large-scale
programs
• Operates through 2020
• Exclusively REDD+
• Offers access to cutting-edge
knowledge on REDD+ through a
network of other participant
countries
• Experience with working towards
alignment of national REDD+
frameworks
• Others…
BioCF
Initiative for Sustainable
Forested Landscapes
• $300 million for 4 large-scale
programs
• Operates through 2030
• Integrated landscape-level
interventions (REDD+ and other land
uses)
• Includes significant portion of grant
funding to build the enabling
environmental for ER payments
• Focused on private sector
engagement, targeting commodities
that lead to deforestation
• Others…

6. 6
PHASES OF REDD+
Results-based actions fully
measured, reported
and verified
Implementation of national
strategies, action plans + capacity
building + results-based
demonstration activities
Development of national
strategies, action plans
+ capacity building
1- Readiness
2-
Investment
3- Payments
for results

7. 7
THE TIME TO ACT IS NOW - WE HAVE “THE WIND AT OUR BACK”:
7
“Supply side” changes:
• Increased donor interest to invest in the forest & climate nexus Additional $470m
pledged since COP19 with indications for more to come. (Interest in
REDD+, Landscape Restoration, Agroforestry, Climate-Smart Agriculture)
• Increasing private sector investments (international & national)
• “Demand side” changes:
• Big commitments from multi-nationals to make their supply-chains deforestation-
free. (Commodity Roundtables, Certification)
• High interest from country governments to participate in emerging global forest &
climate financing mechanisms and to be part of the current “global community of
practice for REDD+” (as seen in recent additions to the FCPF).
“Consumer side” changes:
• Lacy Act, FLEGT, EU Timber Regulation
• Public procurement

8. 8
Key features:
• Implementing sustainable forest management and agroforestry as a
conservation and climate change adaptation instrument
• Increasing sustainable wood production and consumption (to replace
higher GHG-emitting construction materials)
• Adding value to forest lands and forest products (e.g.,timber for
building materials) to contribute to poverty
• Embedded in broader national goal of carbon neutrality and poverty
reduction
FCPF EXAMPLE: COSTA RICA
Sustainable Forest Management

9. 9
BIOCF EXAMPLE: ETHIOPIA
Participatory Forest
Management
Increase
agricultural
productivity
Improve cooking
stoves / biogas
Intensified livestock
management
Integrated Landscape Management

10. 10
Thank you!
Mirko Serkovic
Email: mserkovic@worldbank.org