With a $12.83 million grant from the FIP, Lao PDR is moving forward with its project to expand community participation in forest management in priority areas and piloting forest landscape management in four northern provinces. Lao PDR’s 2020 Forest Strategy aims to improve the quality and quantity of forested areas and to generate a sustainable stream of forest products.
Funke Oyewole introduces visitors to the CIF and listens to their inquires and ideas at the 10th Carbon Expo in Barcelona, Spain on May 28-31. (Photo: CIF AU)
“What do you do, and how can you help us do what we do?” That was the recurring question from visitors to the Climate Investment Funds’ (CIF) booth at the 10th Carbon Expo last week in Barcelona, Spain from May 28-31. The first forum of the UNFCCC’s Standing Committee on Financebrought us to town, but we stayed to take advantage of the proceeding expo to introduce the CIF to a wider audience. Considered the leading global platform for dialogue between climate finance and carbon markets, industry, and technology, the Carbon Expo was a perfect opportunity for the CIF to reach out to new partners and start some new conversations.
And that we did. Over three days, approximately 100 people visited the CIF booth and engaged directly with us, while still more browsed our colorful exhibit. Consulting firms stopped by interested in exploring business prospects. Social entrepreneurs were looking for funding. International companies sought procurement opportunities. Government representatives from developing nations not involved currently in the CIF asked how they could join. Academics requested information on CIF lessons learned. Even our multilateral development bank partners, including the World Bank and the Asian Development Bank, came by to see what was new.
All were looking for new and different approaches, mechanisms, and markets to expand low carbon growth, and many saw the CIF mitigation programs—the Clean Technology Fund(CTF), the Forest Investment Program(FIP), and the Program for Scaling Up Renewable Energy in Low Income Countries(SREP)—as a possible conduit for innovation. Carbon markets alone, especially in their current state of disarray, cannot propel the global mitigation effort needed to achieve a consolidated low-carbon energy system by 2050. They have to be a part of a broader suite of financial instruments that will provide an incentive to mobilize increasingly higher levels of capital into low carbon infrastructure. These realities did not, however, stop some participants at the Expo from exploring the CIF’s programmatic approaches and interventions at scale. If anything, these discussions helped to establish clearly the need for injecting new innovative thinking in the climate finance landscape.
The CIF is part of this climate finance landscape, and we told all these visitors about the CIF’s own brand of innovation in fostering a programmatic approach to low carbon, climate resilient development. We explained how CIF concessional financing is building private investor confidence in middle and low income countries by supporting government policies and reforms conducive to climate-smart business. We showed how the CIF is catalyzing investments and attracting significant co-financing by supporting risky upfront costs of tested-but-young climate approaches and technologies at a scale never before affordable. We discussed how the lessons being learned on the ground by our 49 pilot countries are shaping the CIF’s way forward, as well as that of the Green Climate Fund.
Engaging the private sector is central to the CIF’s success, and visitors were keen to learn more about opportunities to participate, especially through the CIF’s open call for innovative project proposals that engage the private sector in REDD+, climate resilience, and renewable energy in the pilot countries of the FIP, the Pilot Program for Climate Resilience (PPCR), and the SREP. Over $200 million has been set aside in these three funding windows for this competition, and deadlines are fast approaching in August 2013.
The energy at the Carbon Expo was high, and the mood enterprising. The feeling lingers as we follow up with phone calls and emails to continue the conversations we began in Barcelona. We are not certain where it will all lead, but the CIF is steadfast in its goal to scale up climate finance and knowledge.
Inter-American Development Bank recently approved the first-ever private sector FIP operation, which aims to bolster 60 community forest enterprises in Mexico. The private sector will also engage in Colombia’s CTF project for credit access to energy service companies.
The Forest Investment Program (FIP) supports developing country efforts toward reducing emissions from deforestation and forest degradation (REDD) and promoting sustainable management of forests that leads to REDD and enhancement of forest carbon stocks (REDD+). Achieving the goal of REDD+ requires transformational changes in the way forest resources are governed and managed, including new and effective partnerships between governments, civil society, Indigenous Peoples, local communities, private sector, and international financial institutions.
A new report and four accompanying videos in the CIF Learning series, FIP: REDD+ Stakeholder Collaboration (pdf), identify common challenges encountered by different stakeholder groups in FIP pilot countries who are engaged in REDD+ processes and explain how collaboration can be further enhanced at the country-level as FIP investments are developed and implemented. Based on interviews with over 200 REDD+ stakeholders in four FIP pilot countries —Burkina Faso, Democratic Republic of Congo, Indonesia, and Peru — the report proposes key opportunities and lessons for FIP policy makers regarding consultations, capacity building, and transformational change.
An extension of the report, Incentivizing the Involvement of the Private Sector in REDD+: A Review of Early Experiences and Lessons Learned in the Forest Investment Program(pdf), offers policy makers and development partners a more detailed description of the private sector, the opportunities and constraints private investors face when considering REDD+ involvement, and how the FIP’s engagement and incentive models work to increase their participation in the planning, financing, and implementation of REDD+ investments. The review also shares the perspective of different stakeholder groups towards private sector involvement in the FIP.
Recently endorsed for $50 million, Ghana's FIP investment plan will support efforts to strengthen institutional capacity in forest resources management, expand and diversify management options, improve governance, as well as enhance regulatory framework to streamline tenure and tree rights.
“At a time when demand for climate change financing far outstrips supply, we are pleased that a substantial amount of CIF funding has been secured for countries in Asia and the Pacific, a crucial battleground in the global war against climate change,” said Woochong Um, Deputy Director General of Regional and Sustainable Development Department at the Asian Development Bank (ADB).
CIF partners teamed up over summer 2012 to reflect on how the Forest Investment Program (FIP) is enhancing collaboration with other REDD+ efforts and partners at the country level. Discover what the Democratic Republic of Congo's forests are up against in this first video installment.
At its meeting on May 4, the FIP Sub-Committee endorsed the <a data-cke-saved-href="/sites/default/files/FIP_4_Brazil_IP_0.pdf' target=" href="/sites/default/files/FIP_4_Brazil_IP_0.pdf' target=" _blank"="">investment plan for Brazil and received updates on the investment plans for Indonesia and Ghana, which are currently under preparation. Participants also agreed to continue exploring options for allocating fundint under the FIP reserve, with a view towards encouraging innovative projects and private sector involvement.