Download 7. Gilman UNEP

GEF financing to Forests
in a
Max Zieren & Jonathan Gilman, UNEP
Regional Office for Asia and the Pacific
Fourth Regional Workshop on ‘Facilitating financing for Sustainable
Forest Management in SIDS and LFCCs’
22-25 July 2012
Presentation overview
1.
Forests under a Green Economy (GE)
2.
GEF V Strategies for ‘Forests under a Green
Economy’
3.
How to access GEF V funding?
Part I – Forests under a Green
Economy
Green Economy in the context of Rio +20
Part I – Forests under a Green Economy
Agreement on GE as tool for S.D and poverty eradication
Principles of GE
• Tool for sustainable management of natural resources
• Respect national sovereignty
• Strengthened international cooperation (finance, cap
dev, tech. Transfer)
• No trade restrictions or unwarranted conditionalities
• Enhance welfare of IPs, respect their non-market
approaches to poverty reduction
• SCP- consumers and producers
• Leading role of Government
• Business & Industry integrate GE
Part I – Forests under a Green Economy
Green Economy in the context of Rio +20
Rio also called for UN and partners to:
• Develop tool boxes /best practices on GE
policies
• Development methodologies to evaluate
GE policies
• Promote platforms to contribute to GE
learning and exchange of lessons learned
Role for UNFF
Part I – Forests under a Green Economy
Greening an Economy –
by reshaping and refocusing policies, investments and
spending in order to promote clean technologies, green
and decent jobs, renewable energies, waste
management, green buildings and sustainable
agriculture and forests.
Rio +20 Outcome document
Green economy will…contribute to eradicating poverty as well as
sustained economic growth, enhancing social inclusion,
improving human welfare and creating opportunities for
employment and decent work for all, while maintaining the
healthy functioning of the Earth’s ecosystems.
Part I – Forests under a Green Economy
What is the future without change - BAU?
By 2030
 13 million ha forests lost annually
 1.7 billion tonnes C-emissions
(18%)
 1.6 billion people dependent on
forests could be in peril
 Global energy demand up by 45%
 Oil price up to US$180 per barrel
(IEA)
 GHG emissions up 45%
 Global average temperature up 6°C
 Poor countries will suffer costs in
excess of 10% of their GDP (Stern)
Forests emissions 18% &
Agriculture 14% of global !
 Lack of resources such as rare metals, fish, water, good
soils, …??
Part I – Forests under a Green Economy
Alternative - green economy can reduce
poverty
• Strong link between poverty alleviation and wise
management of natural resources and ecosystems.
• Ecosystem services and other non-marketed natural goods
account for 47 to 90% of the so-called ‘GDP of the Poor’
 Hence need to invest in natural capital as a source of
stability and well-being
Natural-resource dependent sectors
and ES (2005)
Brazil
Indonesia India
Original share of GDP (%): agriculture,
forestry, fisheries
6%
11%
17%
Adjusted share of GDP (%): including
non market/ES
17%
15%
20%
Share of ES/non market goods of total
income of the poor (%)
90%
75%
47%
Part I – Forests under a Green Economy
Forest goods and services – foundation for various
sectors transformation to GE:
Services
• Climate/water regulation
• Pollination, nutrient
recycling
• Landscape/culture values
• Transportation
Goods
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Water
Energy, biomass, fuels
Timber, fiber,
NTFP, food
Pharmaceuticals
Genetics
Forests catalyze green economy
Forests under a Green Economy
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Forest industry contributed USD468 billion (1%) of global
gross value added in 2006
Trade in wildlife products est. at USD 15 billion/year
Sales of natural origin pharmaceuticals worth USD75
billion/year
Fiber and fuel: accounts in many countries to 80% of total
energy consumption
Contributions to food products through nutrient
recycling, disease control, pollination, health and agrobiodiversity
More than 1/3 of the world’s population (2.4
billion) relies on wood or other plant-based
fuels for cooking and heating
60, 350, 1,600 million depend on forests to
varying degree
Forests under a Green Economy
Case for valuation & incorporation…
Need full valuation of forests, incorporation in national
accounts, and cost- benefit analysis development
options
Examples:
• Preserving forests provided 2.8 times the economic
benefits compared to deforestation (Kenya)
• Mangrove restoration cost 1.1 million USD- annual
savings of 7.3 million USD in sea dyke maintenance
(Vietnam)
• T21 modeling in Kalimantan (Indonesia)
Indonesia's Green Economy Corridor Initiative
Forests under a Green Economy
Government of Indonesia & UNEP/FAO/UNDP- UNREDD+
Government led: Economic Master Plan Framework – green
economic corridors
Objectives: a) Reduce forest based forest based greenhouse
gas emissions in Kalimantan b) achieve multiple benefits
for people’s livelihoods, the economy and conservation
How: Development of “roadmap for transformation”,
including process, timeline, budget, roles and milestones
Investment package, with pledges, institutional
arrangements and capacity to deliver
Forests under a Green Economy
Continued - Forests in 2050: ‘BAU and
green investment scenario’
Key Forest Sector Indicators in
2050
Business As
Usual
Green Investment
Scenario
Natural Forest Area
(Billion ha)
3.36
3.64
Deforestation rate
(ha/year)
14.9
6.66
Planted forest area
(Million ha)
347
850
Total forest area
(Billion ha)
3.71
4.49
Carbon storage in forests
(Billion tonnes)
431
502
Gross Value Added
(US$, Trillion)
0.9
1.04
Employment (Million)
25
30
Part II - GEF V Strategies for
‘Forests under a Green Economy
(GE)’
GEF support to forests at a glance
• Since its inception in 1991, GEF has financed over 300
projects and programs focusing on forest conservation and
management in developing countries;
• Total GEF allocation to forest initiatives during this period
amounts to > $1.6 billion, leveraging $5 billion from other
sources;
• Until 2006, GEF supported forest projects drawing from the
focal areas of biodiversity and land degradation;
• In response to the growing international recognition of the
role of forests in delivering global benefits across a variety of
themes, in 2007 the GEF Council approved the broadening of
the GEF’s efforts in the field of sustainable forest
management.
Background SFM/REDD+ Financing
• In GEF-5, for the first time a separate funding envelope for SFM/REDD+
has become available for countries willing to invest portions of their
allocations from biodiversity, climate change and land degradation toward
more impactful SFM/REDD+ projects (3:1);
• For SFM/REDD+ this envelope is worth $ 250 m. It operates as an
incentive for developing countries to invest up to $ 750 million of their
allocations from BD, CC and LD for more comprehensive SFM/REDD+
projects and programs.
• Altogether, the GEF will thus make up to $1 billion for SFM/REDD+ funding
available throughout GEF-5. This investment is expected to leverage
substantial additional funding from external sources.
• Types of projects supported: Forest policy (re-)formulation, forest
protected area creation and management, forest inventory and carbon
measurement and monitoring, reduced-impact logging, certification of
timber and non-timber forest products, payment for ecosystem services.
GEF V Strategies for ‘Forests & GE’
GEF Focal Areas:
– Biodiversity (national STAR)
– Climate Change (mitigation & adaptation)
national STAR & others
– Land Degradation (national STAR)
– Sustainable Forest Management/REDD+
(global/national set-aside fund)
– International Waters
– Chemicals
– Cross-cutting capacity development
GEF V Strategies for ‘Forests & GE’
Biodiversity
3 out of the 4 BD objectives target forests and
elements of a GE:
– Improve sustainability of protected areas (e.g.
financing sustainability of forested PAs)
– Mainstream biodiversity conservation and
sustainable use into production landscapes &
sectors (forest policy & regulatory frameworks,
forest biodiversity friendly goods and services)
– Build capacity on ABS (applications Bonn Guidelines
– e.g. public-private partnerships on forests products
bioprospecting, applying national ABS frameworks,
forest PA and local community safeguards, etc) –
also NPIF fund
GEF V Strategies for ‘Forests & GE’
Climate Change - Mitigation
2 out of the 6 CC objectives target forests and
elements of a GE:
– Promote investments in renewable energy
technologies -deployment of reliable, least-cost RE
technologies that address the natural resource
endowments of countries (e.g. where RE would reduce
pressure on forests, protect watersheds for microhydro, 2nd/3rd generation bio-energy, etc)
– Conservation and enhancement of carbon stocks
through sustainable management of LULUCF (e.g.
good management practices/SFM, restoration of forest
carbon stocks, reforestation & peatlands; avoided GHG
emissions/forest conservation)
GEF V Strategies for ‘Forests & GE’
Land Degradation
2 out of the 4 LD objectives relate closely to ‘forests
and elements of a GE’:
– Generate sustainable flows of forest ecosystem
services in arid, semi-arid and sub-humid zones,
including sustaining livelihoods of forest-dependent
people (enhanced enabling environment within dryland
forest sector; improved dryland forest management, and
functionality & cover of dryland forests maintained)
– Reduce pressures on natural resources from competing
land uses in the wider landscape (e.g. avoiding
deforestation from expanding economic sectors such as
plantations; integrated watershed management,
technical capacity to monitor and reduce GHG emissions)
Part III – How to access GEF
funding
GEF Trust Fund
How to access GEF funding
1. Prepare pre-concept /identify lead NEA
2. Choose GEF IA (regional banks, IFAD, UNEP, UNDP,
UNIDO, FAO, WB) – develop PIF concept
3. Consult your national GEF focal point – secure their
STAR allocation
4. Get on NPFE – portfolio shortlist;
5. Use Multi-focal area to target extra SFM/REDD fund
(3:1) for more forest focus
Adaptation Fund (UNFCCC):
How to access GEF funding
1. Administered GEFSEC, but not GEF funding
2. Less than 1 million=small project; regular 1 m +
3. AF Board decides(1 SIDS rep.)
4. Grants for community, national, transboundary and
multi-country initiatives;
5. See programmatic strategy for themes and
approach eligible
6. Has to go through National Implementing Entity
(NIE) or Multilateral Implementing Entities (MIE) –
if qualified like UNDP, UNEP..)
7. Project Formulation Grants Available
Thank you
for your attention!
More info: Max Zieren, UNEP/GEF Regional Focal Point – Asia, UNEP/ROAP
([email protected])