Green Climate Fund support for the early phases of …...Green Climate Fund support for the early phases of REDD‐plus GCF/B.17/16 2 July 2017 Meeting of the Board 5 – 6 July 2017

GreenClimateFundsupportfortheearlyphasesofREDD‐plus

GCF/B.17/16

2July2017

MeetingoftheBoard5–6July2017Songdo,Incheon,RepublicofKoreaProvisionalagendaitem19(b)

Summary

AsperdecisionB.14/03,paragraph(b),thisdocumentprovidesinformationonGCF

proceduresandmodalitiestosupporteffortsbynationaldesignatedauthoritiesandfocal

pointstoengagewiththeGCFinearlyphasesofREDD‐plus.

GCF/B.17/16Pageb

Tableofcontents

I.  Introduction 1 

1.1.  Mandate 1 

1.2.  Linkageswithotherdocuments 1 

1.3.  Background 1 

II.  GreenClimateFundprinciplesandobjectivesinthecontextofREDD‐plus 2 

III.  GreenClimateFundmodalitiestoaccessfinance 5 

3.1.  ReadinessandPreparatorySupportProgramme 5 

3.2.  Projectpreparationfacility 6 

3.3.  Fundingproposalapprovalcycle 6 

3.4.  Requestforproposals 6 

IV.  GreenClimateFundsupportforREDD‐plusphases 7 

4.1.  GCFsupportforphase1 7 

4.2.  GCFsupportforPhase2 8 

4.3.  GCFsupportforPhase3 12 

V.  Supportforcapacitybuildingandstakeholderengagement 12 

VI.  Complementarityandcoherencewithotherfunds 13 

AnnexI:DraftdecisionoftheBoard 16 

GCF/B.17/16Page1

I. Introduction

1.1. Mandate

1. Atitsfourteenthmeeting,theBoard,throughdecisionB.14/03,paragraph(b),requestedtheSecretariattodevelopfurtherguidancetosupporteffortsbynationaldesignatedauthorities(NDAs)orfocalpoints(FPs)toengagewiththeGCFinearlyphasesofREDD‐plususingexistingmodalities,toolsandprogrammes.

2. Thisdocumentrespondstotheabove‐mentionedrequest,andprovidesguidancetosupportNDAsorFPstoengagewiththeGCFintheearlyphasesofREDD‐plus.

1.2. Linkageswithotherdocuments

3. Thisdocumenthaslinkageswithdocumentsonthefollowing:

(a) ProgressonsupportforREDD‐plus;1

(b) SupportforREDD‐plus;2

(c) TheGCFandtheParisAgreement;3

(d) Furtherdevelopmentofsomeindicatorsintheperformancemeasurementframeworks;4

(e) Strategyonaccreditation;5

(i) Furtherdevelopmentoftheinitialresultsmanagementframework,includingtheinitiallogicframeworkforREDD‐plusresults‐basedpayments;6and

(ii) Theguidingframeworkandproceduresforaccreditingnational,regionalandinternationalimplementingentitiesandintermediaries,includingtheGCFfiduciaryprinciplesandstandardsandenvironmentalandsocialsafeguards.7

1.3. Background

4. UndertheUnitedNationsFrameworkConventiononClimateChange(UNFCCC),Partiesagreedtocollectivelyaimtoslow,haltandreverseforestcoverandcarbonloss,inaccordancewithnationalcircumstancesandinaconsistentmannerwiththeultimateobjectiveoftheConvention.Inthatregard,from2007to2015,PartiestotheConventionadoptedseveraldecisionsonthismatteraimingtosetthefoundationsforaglobalinitiativetoreduceemissionsfromdeforestationandforestdegradation,consideringtheroleofconservation,sustainableforestmanagementandenhancementofforestcarbonstocks(knownasREDD‐plus).

5. The decisions adopted regarding REDD‐plus require that these activities should beundertaken in phases, beginningwith the development of national strategies or actionplans,policies and measures, and capacity‐building (phase 1), followed by the implementation ofnationalpoliciesandmeasuresandnationalstrategiesoractionplansthatcouldinvolvefurthercapacity‐building, technology development and transfer and results‐based demonstration

1GCF/B.15/Inf.07.2GCF/B.14/03.3GCF/B.13/06.4GCF/B.13/26.5GCF/B.13/12.6GCF/B.08/07.7GCF/B.07/02.

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activities (phase 2), and evolving into results‐based actions that should be fully measured,reportedandverified(phase3).8

6. TheimplementationofthephasesofREDD‐plusatthescaleintendedwillrequiresignificantmobilizationofmultiplesourcesoffunding(publicandprivate,domesticandinternational,multilateralandbilateral)fromallavailablesources.However,currentfundsareinadequatetosupportactionatthescaleneeded.Thus,investmentswillneedtolookbeyondtheongoingREDD‐plusinitiatives,mainlyfundedbydonorfunds,towardinnovativesolutionstocatalyseadditional(publicandprivate)funding.Despitethelimitedavailabilityoffunding,over70countrieshaveengagedinimplementationofearlyphasesofREDD‐plusasconceivedbytheUNFCCC.9

7. TheGCFcurrentlyprovidessupporttomaintainandamplifyeffortstoimplementtheearlyphasesofREDD‐plusinrecognitionthatREDD‐plusoffersacross‐cuttingapproachtocontributetoglobaleffortstoreduceemissionsandcontributetolow‐emissionandclimateresilientdevelopmentpathwaysindevelopingcountries,whilesimultaneouslygeneratinglocalbenefits,whichinsomecasescouldassistwithadaptationtoclimatechange.

Figure1:REDD‐plusphasesandthefinancialarchitectureforREDD‐plus

II. GreenClimateFundprinciplesandobjectivesinthecontextofREDD‐plus

8. TheGCFhassetaninitialinvestmentframeworkwiththepurposeoftranslatingitsoverallobjectivesandprinciplesintoclearguidelinesforinvestmentdecisions.TheGCFsupportforREDD‐plusisguidedbytheseinstitution‐levelprinciplesandthereforeadherestotheinvestmentframeworkcriteriaasfollows:

(a) Paradigmshift:definedasthedegreetowhichtheproposedactivitycancatalyseimpactbeyondaone‐offprojectorprogrammeinvestment.InpromotingparadigmshiftinthecontextofREDD‐plus,GCFinvestmentsaimtoaddressthedriversofdeforestationtodeliverREDD‐plusresults,lookingbeyondthe“forestsector,”consideringforestsaspartofawiderlandscape.Ratherthanadiscreteinterventionwithdelineatedboundaries,REDD‐plusinvestmentswillrequireachangeinapproachrelatedtotheroleofforestsandwiderlandusetomeetdevelopmentneedsandachieveenvironmental

8UNFCCCdecision1/CP.16,paragraph73.9Morethan70countriesparticipateincurrentREDD‐plusinitiativessuchastheForestCarbonPartnershipFacility,UN‐REDD,REDDEarlyMovers,CAFI,AmazonFundandbilateralagreements.

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sustainability.Interventionsshouldencourageashifttolow‐emission,sustainabledevelopmentpathwayswhileforestcoverandforestcarbonlossisslowed,haltedandreversed.Thisrequirescoordinationbetweendifferentsectors,anddoingsoatthenationalorsub‐nationalscale.ThisredefinitionoftherelationshipbetweeneconomicgrowthandsocialandenvironmentalhealthisrelatedtotheGCF’sobjectiveofa‘paradigmshift.’Overall,REDD‐plusismorethanamechanismforprovidingeconomicincentivestoreducedeforestationandforestdegradation;ithasthepotentialtoinducetransformationalchangethatovercomesbusiness‐as‐usualpractices;10

Governmentactorsplayavitalroleinparadigmshiftinginvestmentsbyestablishingandenforcingthenecessaryenablingenvironmenttofacilitatechanges.Equallyimportanthowever,istheinvolvementoflocalcommunities,indigenouspeoples,civilsocietyorganizations,andtheprivatesector.Onlythroughcoordinationofalltheseactorsandeconomicsectorsatscalewillcountriesbeabletoleverageenoughresources,anddrivechangesthroughtheirinterventions.11Generally,thismeansthatprogramsshouldbestrategicallydesignedandimplementedinkeepingwithnationalcontextsandpriorities.ForREDD‐plus,theyshouldidentifyREDD‐plusinvestmentsthroughstrategicprogrammingapproaches.GCFREDD‐plusinvestments,hence,shoulddovetailwiththecountry’sNationallyDeterminedContribution(NDC),andlow‐emissionandclimate‐friendlydevelopmentpathway.TheUNFCCCrequirementsforREDD‐plusalreadydelineatestepstoensurethisthroughtherequirementtoproduceREDD‐plusstrategiesoractionplans;12

(b) Impactpotential:Referstothepotentialoftheprogramme/projecttocontributetotheachievementofGCFobjectivesandresultareas(discussedfurtherbelow).REDD‐plusinvestmentswithGCFsupportshoulddeliverresultsinalignmenttothefund‐levelimpactareaofreducedemissionsfromlanduse,deforestation,forestdegradation,andsustainableforestmanagementandconservationandenhancementofforestcarbonstocks13.CountriesapplyingforGCFREDD‐plusinvestmentshouldaimtomonitorandmeasurethemitigationimpactofactivitiesthroughanationalforestmonitoringsystem(NFMS)atthenationallevel,includingreportingonhowdisplacementofemissionsarebeingaddressed.InthosecountrieswhereanNFMShasyettobedeveloped,orisintheprocessofdesignandimplementation,mitigationimpactscanstillbedemonstratedusingrobustmethodologiesandthemostrecentdataavailableinthecountryorregiononaninterimbasis.REDD‐plusinvestmentsthatalsoprovideadaptationbenefitsand/orincreasedresiliencewilllikewiseneedtobereportedandmeasuredwiththeuseofappropriatemethodologiesifincludedintheproposaltotheGCF;

(c) Sustainabledevelopmentpotential:TheGCFaimstoredefinetherelationshipbetweeneconomicgrowthandenvironmentalandsocialwell‐being.Thus,GCFinvestmentsmustservebroaderbenefitstowardsustainabledevelopment.Asactionstoimprovesustainablelandmanagement,suchasthosebeingincentivizedthroughREDD‐plusactivities,canhavewidersocialandeconomicbenefits,theGCFencouragesdevelopingcountriestoengageinthem.Furthermore,theGCFrecognizesthattheseactivitiesoftenproduceadditionalnon‐carbonbenefits,andhighlightstheimportanceofsafeguarding,andwherepossibleimprovingthem,withemphasisongenderissues,indigenouspeople’srights,andenvironmentalintegrity.Theseadditionalnon‐carbonbenefitswillalsoneedtobereportedandmeasuredwiththeuseofappropriatemethodologies;

10Korhonen‐kurki,K.etal2014.EnablingfactorsforestablishingREDD‐plusinacontextofweakgovernance.ClimatepolicyVol.14,No.2,167–186,http://dx.doi.org/10.1080/14693062.2014.852022

11Brickel,E.AparadigmshiftinthinkingonREDD‐plus.201212UNFCCCDecision1/CP.1613DecisionGCF/B.07/04.InitialResultsManagementFrameworkoftheFund

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(d) Needsoftherecipient:thevulnerabilityandfinancingneedsofbeneficiarycountriesandpopulationsarealwaysconsideredwhenassessingfundingproposals.WhendesigningandimplementingREDD‐plususingsupportfromtheGCF,itisimportanttoanalysethedegreeofclimatevulnerabilityandthesocio‐economicconditionsofthepopulationstobeinvolvedintheproject/programme.REDD‐pluswill,inmostcases,involveruralcommunities,indigenouspeopleandforest‐dependentgroups,whoseneedsandvulnerabilityshouldbeconsideredintheprocessofdesigningandimplementingGCFinvestments.TheGCFmakesitaprioritytoenhancecountries’capacitiestosafeguardtherightsoflocalandindigenouscommunities,andseeksstrictadherencetoitsenvironmentalandsocialsafeguards(ESS)standardsandtheUNFCCCguidanceforREDD+(whenpursuingresults‐basedpayments)initsreviewoffundingproposals;

(e) Countryownership:theGCFaimstoachieveitsgoalswithacountry‐drivenapproach.Inthatsense,anyproposedREDD‐plusinvestmentstobeconsideredforGCFsupportshouldbeanchoredinthenationalREDD‐plusstrategiesand/oractionplansandalignedwiththeNDCsaswellasotherrelevantclimatechangepoliciesandplanninginstrumentsofacountrythatincludeland‐basedinterventions,suchasnationallyappropriatemitigationactions(NAMAs)ornationaladaptationplans(NAPs).Alignmentwithanationalstrategy/actionplancanbedemonstratedintermsofboththetypesofactivities,andthescale,monitoring,andaccountingoflanduseandemissionreductions.Inthisregard,programmesatsubnationalornationalscalesareencouragedasactionsatthisscalecanmoreclearlydemonstratethecountry’soverallprogressinachievingitsREDD‐plusgoals.However,iftheyarewellintegratedinnationalstrategies,activitieswithlocalcommunitiesoractivitiesthatdriveprivateinvestmentatsmallerscalesmayalsobeattractive.ThroughouttheplanningprocessandimplementationofREDD‐plusactivitieswithsupportfromtheGCF,relevantstakeholdersandcivilsocietygroupsshouldbeconsulted,withparticularattentiontotherightsofindigenouspeoplesandgenderissues;and

(f) Efficiencyandeffectiveness:GCFinvestmentsinREDD‐plusshoulddemonstrateeconomicandfinancialsoundness.ThediversityofactorsandcircumstancesaroundREDD‐plusinvestmentsmakeitnecessarytoconductadetailedanalysis,identifyingtheappropriatefinancialstructure(fundingamount,financialinstrument,tenor,andterm)foreachactivity.TheGCFencouragescountriestodevelopinvestmentplansorfinancialstrategiesatthescaleforeseeninthenationalREDD‐plusstrategies/actionplans,toprovideinsightintotheirfinancialneedsforachievingREDD‐plusresults(whichcanbescaleddowntomatchindividualinvestmentsinthefuture,asnecessary).Suchinvestmentplansorfinancialstrategiesshouldincludeananalysisofbarriersand/orbottlenecksthatpreventdomesticorprivatefinancefrombeingmobilized;ananalysisofalternativesourcesoffinanceincludinginnovativefinancingoptions;ananalysisofcurrentfinanceflows(domesticandprivate)intheforestryandlandusesector;andidentificationofmeanstoleveragepublicandprivatesectorinvestments,aswellasassurethelong‐termfinancialsustainabilityoftheinvestments.

Whenidentifyinginterventions,countriesareencouragedtoprovideexplanationsofhowthebestavailabletechnologiesand/orpractices,includingthoseofindigenouspeoplesandlocalcommunities,areconsideredandapplied.

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III. GreenClimateFundmodalitiestoaccessfinance

3.1. ReadinessandPreparatorySupportProgramme

9. The Readiness and Preparatory Support Programme (the readiness programme)provides resources for strengthening the institutional capacities of establishedNDAs, FPs ordirectaccessentities (DAEs) to efficientlyandeffectively engagewith theGCF.Resourcesareavailableintheformoffinancialandtechnicalsupport,bythemeansoftemplatesandtechnicalguidanceanduptoUSD1millionpercountryperyear(notexclusiveforREDD‐plus,butforallactivitiesidentifiedbytheNDA).ReadinessFundingcanbeaccessedforavarietyofreadinessactivities,asappropriate.

10. AsanexampleofsomeREDD+activitiesthatcouldbesupportedthroughthereadinessprogramme14arepresentedasfollows:

(a) EstablishingandstrengtheningNDAsorFPs:Underthiscategory, theNDA/FPmaystrengthenitsnationalcoordinationandconsultationmechanisms.AllkeyrelevantactorsinclimatechangeincludingtheREDD‐plusnationalentity/focalpointtotheUNFCCCareexpectedtobeinvolvedinthisprocesstoensurethecountryeffectiveengagementwiththeGCF.

(b) Strategic framework, including the preparation of country programmes: Thiscategory includes developing a country programme, which may extend to a nationalREDD‐plus strategy/action plan (e.g. analysis of policies and measures, stakeholderconsultations,analysisofdriversofdeforestation, financialanalysisandassessmenttoidentifyfinancialgaps,barriersandneeds,andsoon).Italsoincludesthedevelopmentoftools, methods and templates to scale up successful models through programmaticapproaches.

(c) Supportforaccreditationandaccrediteddirectaccessentities:TheNDA/FPmayusetheGCFreadinessresourcestosupportnationalorregionalentitiesspecialisedinREDD+activitiesthatarecandidatesforaccreditationfordirectaccess,tounderstandtheGCFaccreditationprocessandbuildtheircapacityinfiduciarystandardsandenvironmentalandsocialsafeguardsortheCancunsafeguards.

(d) Informationsharing,experienceexchangeandlearning:TheReadinessProgrammemay support information and knowledge sharing, including conducting regionalworkshops with NDAs/FPs, existing and potential AEs, REDD+ national entity/focalpoints,civil societyandotherstakeholders toraiseawarenessof themodalitiesof theFundandopportunitiestoengageinREDD+implementation.

(e) Formulationofnationaladaptationplansand/orplanningprocesses:Whereland‐basedactivitiesareidentifiedforaddressingadaptationpriorities,countriesmayexplorepossiblecomplementaritybetweentheiradaptationplanswithREDD‐plusactivities.

11. Asthislistisnotexhaustiveandissubjecttofurtherrevision,NDA/FPcouldalsoconsiderhowresourcesmadeavailablefromthereadinesscouldsupportthemstrengtheninginstitutionalcapacitytoundertakesomeofREDD‐plusphase1activities.It isimportanttoremarkthattheactivitiesmentionedaboveareonlyindicativeexamples.CountriesareencouragedtoformulatetheiractivitiesbasedontheirspecificneedsfollowingcorrespondingBoarddecisionsrelatedtothereadinessprogramme.

14Indicativelistofactivitiestobeincludedinthereadinessprogramme,asadoptedbytheBoard,ispresentedinAnnexVIItoDecisionB.13/32(DocumentGCF/B.13/32/Rev.01)

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3.2. Projectpreparationfacility

12. The Project Preparation Facility (PPF) supports project and programme preparationrequestsfromallaccreditedentities(AEs),especiallydirectaccessentities,andparticularlyforprojects in the micro‐to‐small size category, for a maximum amount of USD 1.5 million perproject/programme. Support for PPF requests is usually provided in the form of grants andrepayablegrants,butequitymaybeconsideredforprivatesectorprojects.

13. ThePPFsupportsthe followingactivities:(a)pre‐feasibilityandfeasibilitystudiesandproject design; (b) environmental, social and gender studies; (c) risk and complianceassessments;(d)identificationofproject‐andprogramme‐levelindicatorsinlinewiththeGCF’sresults management framework (RMF); (e) pre‐contract services; (f) advisory services tofinancially structure a proposed activity; and (g) other project preparation activities withsufficient justification. For REDD‐plus, NDAs/FPs may work with AEs to consider how theirnationalREDD‐plusstrategy/actionplansandinvestmentplanscanbeconvertedintoconcretefundingproposals.

3.3. Fundingproposalapprovalcycle

14. The GCF provides finance for projects/programmes that propose to contribute to itsobjectives,performagainstitsinvestmentframework,andcomplywithitspolicies.TheBoardwillreceivefundingproposalsonaregularbasisforitsconsiderationatBoardmeetingsaspertheinitialproposalapprovalprocess.15

15. GCFREDD‐plusinvestmentswillneedtorespondtothefund‐levelimpactareaofreducedemissionsfromlanduse,deforestation,forestdegradation,andsustainableforestmanagementandconservationandenhancementofforestcarbonstocks.Insomecases,REDD‐plusproposalsmay includeoneormore fund‐level impact areas, including for adaptation, suchas increasedresilienceandenhanced livelihoodsof themostvulnerablepeople, communities,andregions;increased resilience of health and well‐being, and food and water security and improvedresilienceofecosystemsandecosystemservices.

16. GCF funding is channelled through AEs whose maximum project size, 16 fiduciaryfunctions, 17 and environmental and social risks 18 are defined by their accreditation type.Depending on the fiduciary function that each AE is accredited for, they should identify theappropriatefinancialinstrumentforimplementingtheproposedproject/programme.Countries,through theirNDAs,may consider selectingAEs thathave thenecessary fiduciary capacity tocarryouttheneededactivities,andAEsmayconsiderpartneringwithotherAEstoincreasetheirscopeandtargetmoreambitiousandimpactfulinterventions.

3.4. Requestforproposals

17. Requests for proposals (RFPs) are issued by the GCF to fill current gaps in climatefinancing.InissuinganRFP,theGCFmayacceptproposalsfromentitiesithasnotyetaccredited.TheseRFPsaredesignedonanad‐hocbasisandcanbetailoredtoREDD‐plusimplementationinlaterstages(phases2and3).

15GCF/B.07/03Initialproposalapprovalprocess16Projectsizecategoryrefertothefollowingfourtypes:MicroproposalscanhaveatotalsizeofuptoandincludingUS$10million;smallproposalscanhaveatotalsizeofaboveUS$10millionanduptoandincludingUS$50million;mediumproposalscanhaveatotalsizeofaboveUS$50millionanduptoandincludingUS$250million;andlargeproposalscanhaveatotalsizeofaboveUS$250million(Decision08/02).

17Projectmanagement,grantawardand/orfundingallocation,andon‐lendingand/orblending(Decision08/02).18RiskcategoriesincludeCategoryA/Intermediation1(high),CategoryB/Intermediation2(medium),andCategoryC/Intermediation3(low).MoredetailsarepresentedinAnnexIofdocumentGCF/B.07/11.

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IV. GreenClimateFundsupportforREDD‐plusphases

18. The implementation of REDD‐plus phases is not necessarily sequential as variousactivitiescanbeimplementedinparallel.Forinstance,REDD‐plusimplementationcanbestartedwithout a comprehensive national strategy,whichmay bedeveloped in due course basedonlessonslearned.Ontheotherhand,capacity‐buildinganddemonstrationactivitiescanbepartofbothphase1andphase2.Eachcountrywilldetermineitsowncourseofactionbuttheabove‐mentionedphasesprovideausefulframeworkforassessingfinancingneedsforREDD‐plus,andareinkeepingwithUNFCCCdecisions.19

19. Thedescriptionsbelowdelineatepossibleactivitiesthatcanbefinancedinthecontextofthe GCF modalities for financing REDD‐plus. It is not an exhaustive list, and countries areencouraged to formulate their activities in accordance to their national circumstances andcapacities.

4.1. GCFsupportforphase1

20. Phase1ofREDD‐plus includes thedevelopmentofnational strategiesoractionplans,policiesandmeasures,andothercapacitybuildingactivities.AsrequestedbydecisionstakenbytheConferenceofParties(COP)totheUNFCCC,20countries implementingREDD‐pluswiththeexpectationof adequateandpredictable financialand technical support shoulddevelopa: (a)national REDD‐plus strategy or action plan; (b) national forest reference emission level; (c)robust and transparent national forest monitoring system; and (d) safeguards informationsystem.TheGCFcurrentlyoffersmodalities,windows,andprogrammestoassistcountrieswiththeseactivitiesthroughtheReadinessProgrammetakingintoaccountthecapofUSD1millionperyearpercountry foralleligible activitieswhichmay includeREDD‐plusactivities.AbriefdescriptionofGCFsupportfordevelopingtheseelementsisprovidedbelow:

(a) DevelopmentofanationalREDD‐plusstrategyoractionplanandinvestmentplans:Through the Readiness and Preparatory Support Programme, the GCF can supportpreparationoftheREDD‐plusstrategyoractionplan,withspecificassistanceanalysingthedriversofdeforestationandforestdegradation, landtenureandforestgovernanceissues (including analysis of policies and measures), safeguards and genderconsiderations, and more. The plan should be ambitious in scale, aligned with thecountry’sclimatechangestrategies(e.g.NAMAs,NAPs,nationalclimatechangestrategies,etc.), andensure the fullandeffectiveparticipationof relevantstakeholders, includingindigenouspeoplesandlocalcommunities.Inadditiontohelpingtoassurethattheaboverequirements aremet, theGCF can also supportpreparationof an investmentplan toaddressidentifiedimplementationissues.Thisfinancialplanshouldspecifythefinancialneeds,gaps,barriersandwaystoleverage(private,public,andothersourcesoffinance),seekinglongtermfinancialsustainabilityoftheinvestments.Suchanalysiswillfeedintothe development of the country programme for the GCF, which identifies strategicprioritiesforengagementwiththeGCF;

(b) Designanationalforestreferenceemissionlevel:GCFreadinessfundingcouldalsobeavailable to support countries to design a forest reference emissions level (FREL) orincludedaspartofafundingproposal;

(c) Designandestablishthenationalforestmonitoringsystem:Readinesssupportcanalsoassistcountriestoestablishanationalforestmanagementsystemby,forexample,buildingtechnicalcapacitytomonitor,report,andverifyemissionsreductionsfromforestand land‐use activities. It is also possible to access finance for the implementation of

19Simula,M.2010.AnalysisofREDD‐plusfinancinggapsandoverlaps.REDD‐plusPartnership.20UNFCCCdecision1/CP.16paragraph71

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national forestmonitoring systems as part of a funding proposal through the regularprojectcycle,providedtheseeffortsarecoupledwithrelatedemissionsreductionactions.Theseinvestmentswillneedtoincludewaystosecurelongtermfinancialsustainabilityand appropriate capacities to maintain the system beyond the timeframe of theproject/programmefinanced;and

(d) DesignanddevelopasystemforimplementingtheCancunREDD‐plusSafeguards:inaccordancewithrulesestablishedbytheUNFCCC,countriesmustrespectandaddressthe UNFCCC decisions on safeguards. GCF readiness support can assist countries toadheretotheserules.Heretoo,fundingforaddressingtheCancunREDD‐plusSafeguardscouldalternativelybeincludedintheprojectcycleaspartofafundingproposal.

21. The development and implementation of the above activities will require significantinvestments in capacity building and consultations. These capacity‐building and consultationneedscouldbeincludedaspartoftheactivitiesfinancedwithGCFreadinesssupport,andcouldbemaintainedaspartofafundingproposal.Thelong‐termfinancialsustainabilityaftertheGCFfinancehasbeenfullyexecutedformaintainingtheseactivitiesneedstobeidentifiedandsecured(furtherdescribedinsectionV).

4.2. GCFsupportforPhase2

22. Phase 2 includes the implementation of national policies and measures and nationalstrategies or action plans, which might involve additional capacity building, technologydevelopment and transfer and results‐based demonstration activities. The implementation oftheseactivitiesis likelytoderivefromdifferentsourcesoffundingas inmostcases,nosinglesourcewillbeabletocoverallfinancialneeds.

23. REDD‐plusinvestmentsinphase2couldbefinancedthroughvarioussources,includingdomestic government agency budgets and/or private investments, and international climatefinance.Asdescribedaboveinthecontextofphase1,theGCFcansupportpreparingREDD‐plusstrategiesandplansaswellasanalysingthe fundingsourcesandneeds fromcountries in theprocess of implementing REDD‐plus programmes. Based on these analyses, the appropriateinterventions,instruments,andsourcesoffinancewouldbeidentifiedandincludedinafundingproposaltotheGCF.Furtherreadinesssupportfundingmayalsobeallocatedifrequiredonacase‐by‐case basis. Investments will need to apply to fund‐level impact areas of reducedemissionsfromlanduse,deforestation,forestdegradation,andsustainableforestmanagementand conservation and enhancement of forest carbon stocks, and be assessed against thecorrespondingindicatorsortheGCFresultsmanagementframework(RMF).21

24. REDD‐plus investments may include public and/or private investments across manydifferentsectorsatmultiplescales.Therefore,proposedinvestmentsintheforestandlandusesectorshouldtakeintoaccountthecharacteristicsofdifferentactorsandtheirroles,activities,and financial instruments,whichmayvaryaccording to thedifferent land‐useactivitiesbeingproposedforreducingemissionsandachievingsustainabledevelopment.Keyactorsmayincludegovernments (national, subnational, local); local communities (indigenous communities, ruralcommunities, forest‐dependent groups, etc.); private sector (producers, providers, financialinstitutions,serviceproviders,etc.);civilsocietyorganizations,andotherrelevantstakeholders.

25. Dependingontheirrolesandcapacities,theseactorswillbeinvolvedindifferenttypesofinvestments at different points in time and space. Nevertheless, they should be closelycoordinated.Thiscomplexinteractionamongactorswithdiverseinterests(suchasfoodsecurity,povertyalleviation,humanwelfare,industrialization,conservation,etc.)aroundapieceoflandislikelytoposeachallengetotheimplementationofREDD‐plusinvestments. Equally,pursuing

21DecisionGCF/B.07/04.InitialResultsManagementFrameworkoftheFund

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emissions reduction from deforestation and forest degradation without considering thecompeting interestsandneeds thatdrive landuseactivitiesaround forestareaswill result inimpracticablesolutionsinthelongterm.

26. Inordertomanagethecomplexityoftheseinteractionsandthediversityofinterestsandneeds concerning different land uses around forest areas, the concept of the “landscapeapproach”22 has emerged as a way to identify interventions that could address all involvedstakeholders. In a broad sense, the landscape approach relates to coordinating agriculture,restorationofdegradedlands,sustainableforestmanagement,andconservationinanintegratedmanner.This approach applies tovirtually all eligibleREDD‐plus activities,23andwill requireeffortfromgovernmentsandinvolvementfromarangeofstakeholders,includingcommunitiesandprivatesectoractorsinvolvedinthelandscape,inordertobesocially,environmentallyandfinanciallysustainable.

Figure2:exampleofpossibleinterventionsatthelandscapelevel24

27. Phase2 investment through theGCF fundingproposalapproval cycle shouldconsideridentifyingtheappropriateinterventionsatdifferentscalesbasedonthecircumstancesoftheareaswheretheinvestmentsareanticipated.Asshownintheexampleinfigure2above,theseinterventions could be identified according to major land uses: previously forested lands,managedforests,andprimaryforests,anddescribedbelow:

(a) Previously forested lands: to reduce pressure on forests and prevent increasingdeforestation,possiblealternativescouldincludeincreasingproductivityofagriculturallands throughmoreefficientandproventechnologies tomaximize theuseof the landthrough climate‐smart and more sustainable agriculture, enhancing carbons stocksthroughreforestationandagroforestryandimplementingrestorationofnaturalforestswherepossible;

(b) Managed forests: for these forests,whichare threatenedbydeforestationdue to theirproximitytotheagriculturalfrontier,thereisaneedtoincreasetheperceivedvaluefortheir maintenance. This may come in the form of sustainable forest management fortimberornon‐timberforestproducts,paymentforecosystemservices,andecotourism,whereviable;and

22Onedefinitionoflandscapeapproachisasfollows”Farms,forests,waterbodiesandsettlementsarenotisolatedelementsbutpartofawiderlandscapeinwhichalllandusesareintegrated.Alandscapesapproachentailsviewingandmanagingmultiplelandusesinanintegratedmanner,consideringboththenaturalenvironmentandthehumansystemsthatdependonit”http://www.landscapes.org/glf‐2013/about/

23UNFCCCdecision1/CP.16paragraph7024ImageadaptedfromtheFIPinvestmentplanforPeru2013.ClimateInvestmentFunds.

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(c) Primary forests: recognizing land tenure rights, strengthening law enforcementmeasures,creatinglarge‐scaleprotectedareasthroughproperconsultationmechanisms(among other activities of minimum or no human intervention), will contribute tomaintainingthelivelihoodsandculturalvaluesofforest‐dependentpeoplelivinginandaroundtheseareasandtothelong‐termconservationoftheseforestsandtheecosystemservicesprovidedbythem.

28. Theactivitiesdescribedaboveforillustrativepurposes,wouldrequiretwomajortypesof interventions: interventions to generate the enabling conditions (usually a government’sresponsibility),andprivatesectorinterventions.

29. The interventions related to generating enabling conditions, would rely mostly ongovernmentactorsatdifferentlevels.Theseinterventionsinthelandusesectortypicallyincludepublicsectorinvestmentssuchas:

(a) landtenurereformandlanduseplanning;

(b) strengtheninglawenforcementandregulatoryframework;

(c) policy,legalandinstitutionalreformsintheforestryandrelatedsectors;

(d) developmentofnationalforestinventories;and

(e) strengtheninginstitutionalandlocalcapacitiesofrelevantstakeholders inthe forestryandlandusesectors.

30. Such investments are typically financed through domestic budgets, although somecountrieswould require additional support to be able to establish enabling conditions in theforestryandlandusesector.Inthesecases,theGCFcouldprovidesupporttoimplementtheseactivities through concessional loans, or eventually grant instruments as part of a fundingproposal.Thiswouldrequiresubstantialjustificationandanalysisofthebarriersandbottleneckspreventingdomesticorothersourcesfromfinancingtheseactivities,andananalysistoidentifywaystosecurethefinancialsustainabilityofsuchinvestments.

31. AsmentionedinsectionIIabove,proposedinvestmentsforGCFsupportshouldrespondto theFund‐level impactareasof “reducedemissions from landuse,deforestation, and forestdegradation through sustainable forest management and conservation and enhancement offorest carbon stocks,” by, amongst other things, addressing drivers of deforestation such asagriculturalexpansion.Fundingproposalswillneedtoarticulateacleartheoryofchangethatdemonstratesthelinkagesbetweentheimpactareasandtheproposedinvestments.Ideally,theyshould delineate how progress toward achieving enabling conditions could catalyse privateinvestments from different actors that could support the financial sustainability of suchinvestments.

32. The GCF encourages innovation in public sector investments in order to maximizeeffectiveness,efficiencyandreturnonGCF investments in social, climate, and financial terms.Examplesofinnovativefinanceincludeongoingforgivenessofloans,whereloanscouldbemadewithpredeterminedconditionsrelatedtomonitoredachievementofforestandlanduseclimatechangeoutcomes.Similarly, loanscombinedwithoutput‐basedgrantsmightalsobeexplored.Output‐basedgrantschemespaygrantsonlyondeliveryofthedesiredoutputs,whichcouldbelinked to reduction of emissions from deforestation, or increased forest cover throughreforestation/afforestation,restorationofforest,orforestconservationinterventions.

33. TheoverallpictureofREDD+financemakesitclearthatpublicsourcesoffundingwillnotbesufficienttotriggerthenecessarytransformationalchangeatthelandscapelevel.Theeffortsfrom governments cannot achieve their targets for emissions reductions or low‐emissions

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development without alignment with private sector actions, primarily in the major emittingsectors.25

34. The GCF’s role in relation to the private sector focuses on addressing barriers andreducingriskstoprivatesectorinvestmentinadaptationandmitigationactivities.Thesebarriersandrisksmayincludemarketfailures,insufficientcapacity,lackofawarenessofhowtomobilizeprivatecapital,and/orlackofexpertiseatscaleinaccordancewithnationalplansandpriorities.26

35. The following principles need to be followed for structuring funding for anyproject/programmethroughthePrivateSectorFacility(PSF)oftheGCF,whichaimstoaddresstheabove‐mentionedbarriers:

(a) additionality,meaningGCF fundingshouldnot financeanything thatcanotherwisebefinancedbythemarketoncommercialterms;

(b) abilityto“crowd‐in”privateinvestment;

(c) potentialforcommercialsustainability;and

(d) minimizingtheconcessionalitywithininstruments

36. Overall, there are no restrictions on private sector activities in relation to REDD‐plusfinancingthroughtheGCF.Acknowledgingthewidediversityofactorsinforestryandlandusesectors,theGCFcouldprovideavarietyoffinancialinstrumentstosupportprivatesectoractorsdirectly or through financial intermediaries. In this case, finance is expected to crowd ininvestmentsthatwouldotherwisenotbefeasiblefortheprivatesectoractors.

37. TheGCFcanassistprivatesectoractorsinvolvedinthevalue‐chainsofagriculturalandforest commodities that generate large sources of emissions from deforestation and forestdegradation to shift to deforestation‐free supply chains. This supportmay include increasingcapacities at the producer level through technical assistance with grant and non‐grantinstruments,aswellasparticipatingdirectlyorindirectlyintheinvestmentsthroughequityorguarantees for reducing certain risks. For example, The GCF can promote climate smartagriculture,agroforestryandreforestationbyclosingthefinancegapthatrendersbusiness‐as‐usualtobemoreprofitablethanimprovedpractices(intheshortterm),andatthesametimeitcanpromoteactionsthatreducepressureonforests.Thisassistancerequiresthecreationofanincentivestructureforfarmerstochoosetoimplementclimatesmartpracticesandtoreducetheperceived risks for investment in productivitywhile establishingmechanisms to prevent theexpansionofagriculturalactivitiesintoforestedlands.SomeexamplesofGCFsupportfortheseactivitiesmaycomeintheformof,butarenotlimitedto:

(a) Providingfundingandinstrumentstogeneratecreditlineswithimprovedloanconditionsforsustainableagriculturalpracticesconditional tomaintainingnatural forestsand/orincreasingforestareas;

(b) Financingtechnicalassistancetosmall‐scalefarmerstoimprovecapacitiesandgenerateopportunitiestoengageindeforestation‐freesupplychains;and

(c) Providingguaranteestoreducemarketrisks,andotherrisksinherenttotheforestryandlandusesectors,includingclimatevariability.

38. Private sector actors also include those involved in the generation and trading ofemissionsreductionsfromREDD‐plusactivitiesattheprojectlevel.Tofacilitateprivatesectorinvestment in REDD‐plus, the GCF is open to exploring integration of project‐level activities

25Graham,P;Silva‐Chavez,G.2016.TheimplicationsoftheParisClimateAgreementforPrivatesectorrolesinREDD+.

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towardsachievinglargerscalesofresultsatthenationalorsubnationallevel,inalignmentwithnationalstrategies,UNFCCCrequirements,andGCFpolicies.

39. TheabovedescriptionoftheprivatesectorroleinREDD‐plusisabriefpresentationofthe opportunities and synergies that could be triggered through GCF investments. A moreelaborateanddetailedanalysisoftheengagementoftheprivatesectorintheforestandlanduseactivitiesisforeseentobedevelopedasrequestedbytheCOP.

4.3. GCFsupportforPhase3

40. InaccordancewithitsGoverningInstrument,theGCFwillprovidefinancingintheformofgrantsandconcessionallending,andthroughothermodalities,instruments,orfacilitiesasmaybeapprovedby theBoard.TheGoverningInstrumentalsospecifies that theGCFmayemployresults‐basedfinancingapproaches,including,inparticularforincentivizingmitigationactions,andpaymentforverifiedresults,whereappropriate.27FurtherdevelopmentinoperationalizingGCFresults‐basedpaymentsforphase3ofREDD‐plusisbeingconductedseparately.28

V. Supportforcapacitybuildingandstakeholderengagement

41. CapacitybuildingandstakeholderengagementwillberequiredacrossallREDD+phases,atdifferentlevelsofintensityandpointsintime,andtargetingdifferentgroupsofpeople.TheseactivitieswillneedtobemaintainedacrossallthephasesofREDD+,andtheGCFwillprovidesupportforthemthroughitsvariousmodalities.

42. UNFCCCDecision1/CP.16(paragraph73)statesthatcapacitybuildingispartoftheearlystages ofREDD‐plus (as countries developnational strategies or actionplans), aswell as theimplementationstageasitalsoconcernsexecutionofpoliciesandmeasures.TheGCFcansupportcapacity building, including technology development and transfer, throughout the phases ofREDD+. It will focus on investments that build local and long‐lasting capacities and thatcontribute to the core criteria of the GCF, e.g. capacities that lead to impact, paradigm shift,countryownership,andthatmeettheneedsofthecountry.

43. Decision 1/CP.16 also includes several safeguards that “should be promoted andsupported”. These safeguards refer to “respect for the knowledge and rights of indigenouspeoplesandmembersoflocalcommunities”and“thefullandeffectiveparticipationofrelevantstakeholders,inparticular,indigenouspeoplesandlocalcommunities”inREDD+.TheGCFcansupport the development of stakeholder engagement processes, including assistance withstakeholder consultations, and responding to countries’ needs for engaging stakeholdersthroughoutthedevelopmentandimplementationofnationalREDD‐plusstrategies.Forexample,consultationsandstakeholderengagementactivitiesmaybesupportedbytheGCF:atthetimeofelaborationoftheREDD‐plusstrategyoractionplan(throughthereadinessprogramme);duringthe preparation of a funding proposal (through the PPF), particularly to ensure that keystakeholdersare involved inthe implementationof futureGCF investments;or inpreparingaREDD‐plusRBPproposal,forexampleengagingstakeholdersindevelopingabenefit‐sharingplanforresults‐basedpaymentsandduringtheimplementationofREDD‐plusinvestments(throughfundingproposals).

27Governinginstrumentparagraph5528BoarddocumentGCF/B.17/13PilotProgrammeforResults‐basedPayments

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VI. Complementarityandcoherencewithotherfunds

44. ThereareawiderangeofbilateralandmultilateralfinancinginitiativesforsupportingearlyphasesofREDD+.Twenty‐onedonorcountriescollectivelypledgedalmostUSD5billionthrough bilateral agreements between 2006 and 2014,29andmore thanUSD4 billion of thissupport for REDD+has been pledged and (partially) disbursed throughmultilateral funds orprogrammessince2008.Thesefunds/programmesincludetheAmazonFund,theCentralAfricanForest Initiative (CAFI), the Congo Basin Forest Fund (CBFF), the Forest Carbon PartnershipFacility (FCPF)’sReadinessFundandCarbonFund, theForest InvestmentProgram (FIP), theGlobalEnvironmentFacility(GEF)’sSustainableForestManagement(SFM)REDD+Strategy,theBioCarbonFund’s Initiative forSustainableForestLandscapes (ISFL), theREDDEarlyMovers(REM) initiative, the United Nations Collaborative Programme on Reducing Emissions fromDeforestation and Forest Degradation in Developing Countries (UN‐REDD) Programme andseveral other bilateral agreements such asNorway‐Guyana, Norway‐Peru,Norway‐Indonesia,Norway‐Liberia, Norway‐Vietnam, Norway‐Tanzania, Norway‐Ethiopia, Colombia‐Norway‐Germany‐UnitedKingdom.

45. Inaddition,supportforREDD+isalsoprovidedbymultilateraldevelopmentbanksandphilanthropicorganizationswithoutnecessarilybeing labelledasREDD‐plusbutpursuing thesameoutcomes. Similarly, several emerging countries are increasinglyprioritizingREDD‐pluswithintheirnationalbudgets.Therefore,GCFwillseekcomplementaryandcoherenceforREDD‐plusfinancewithotherfundsandinitiativesbutalsowithdomesticpublicfinanceandleveragingprivatefinance.

Figure3.SomeoftheexistinginitiativesprovidingREDD+finance30

46. Theseinitiativeshavedifferentobjectivesandindicatorsformeasuringimpacts,buttherearesubstantialoverlapsintheirareasoffinancing.ThemajorimplicationofdistributingREDD‐plusfinancethroughthesescatteredinitiativesisthatdevelopingcountrieswithlimitedcapacityneedtofollowandcomplywithdifferentrulesandprocedurestoaccessfunds.31Tominimizethe

29Norman,M.,andNakhooda,S.,2015.TheStateofREDD+Finance.,CGDClimateandForestPaperSeries#5.30Theinitiativespresentedinthisfigureandtable1belowarenotexhaustive,andthereareotherREDD+financiersincludingbilateralinitiativesandprivatefinanciers.

31Wiseman,V.,2014.TheDirectionofREDD+Financing:MergingAhead?Availableat:http://sdg.iisd.org/commentary/policy‐briefs/the‐direction‐of‐redd‐financing‐merging‐ahead/

GEFSFM

CentralAfrican

ForestInitiativeBilateralagreements

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burdenassociatedwiththis,includingduplicationofwork,andtoincreaseefficiencyofresources,theGCFwillwork toensurecomplementarityandcoherencewiththese initiatives tosupportforestcountries’activitiestoachievetheirREDD‐plusobjectives.Table1belowdescribesthetypeofsupportofferedbysomeoftheregionalandinternationalREDD‐plusfinancinginitiatives:

Table1.Support forearlyphasesofREDD‐plusbysomeof theregional/international financinginitiatives

AreasofsupportforearlyphasesofREDD‐plus

AmazonFund

Managementofpublicforestsandprotectedareas Control,monitoringandenvironmentalinspection Sustainableforestmanagement Economicactivitiesdevelopedfromthesustainableuseofvegetation Ecologicalandeconomiczoning,territorialplanningandlandregularization Conservationandsustainableuseofbiodiversity Recoveryofdeforestedareas

CAFI DevelopingandimplementingNationalInvestmentFrameworksendorsedatthehighestlevelbynationalinstitutionswithcrosssectoralmandates

Promotinginclusiveparticipationofallstakeholders Providingfundingbasedontheachievementofpolicyandprogrammatic

milestonesthatarespecifiedinlettersofintent

CBFF Forestmanagementandsustainablepractices Livelihoodsandeconomicdevelopment Monitoring,assessmentandverification Benefitsfromcarbonmarketsandpaymentforecosystemservices CapacitybuildingforREDD+;formonitoring,assessmentandverification;andin

sustainableforestmanagement

FCPFReadinessFund&UNREDD

Readinessorganizationandconsultations PreparingthenationalREDD‐plusstrategy DevelopingaFREL/FRL Designingasystemfornationalforestmonitoringandinformationonsafeguards Schedulingandbudgeting Designingaprogrammonitoringandevaluationframework

FIP Capacitybuilding/institutionalstrengtheningandgovernancereform Forestmonitoring/MRV Supportforlandscapeapproaches Sustainableforestmanagement

GEFSFM Maintainforestresources:Reducepressuresonhighconservationvalueforestsbyaddressingthedriversofdeforestation

Enhancedforestmanagement:MaintainflowsofforestecosystemservicesandimproveresiliencetoclimatechangethroughSFM.

Restoredforestecosystems:Reversethelossofecosystemserviceswithindegradedforestlandscapes

Increasedregionalandglobalcooperation:Enhanceregionalandglobalcoordinationoneffortstomaintainforestresources,enhanceforestmanagement,andrestoreforestecosystemsthroughthetransferofinternationalexperienceandknow‐how

ISFL Makingimprovementstocountries’ enablingenvironmentsforsustainablelanduse

Pilotingofactivitiesandkeypartnerships,includingengagementwiththeprivatesector

Developingsystemsformonitoring,reporting,andverifyingreductionsinGHGemissionstopreparejurisdictionsforpayments

47. Several existing tools createdby other initiatives could be instrumental in identifyingopportunitiesforcollaboration(e.g.thereadinessassessmentframeworkcreatedbyFCPFand

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UN‐REDD),orareaswhereresourcesfromdifferentinitiativescanbeallocated(e.g.UN‐REDD’scountryneedsassessments).

48. Onthecountryside,thereiswidevariationinestimatesoffinancingneededpercountryfor implementing the early phases of REDD‐plus. According to an analysis by the UNFCCCStandingCommitteeonFinance,theaveragecostofundertakingREDD+readinessactivitiesfor21countriesvariedfromUSD4to27millionpercountry,asvoluntarilyreportedtotheFCPFandUN‐REDD.32Inordertoensureefficiencyandconsistencyinthe implementationoftheREDD‐plusactivities,aswellastransparencyoffinancing,itiscrucialthatneedsareclearlyassessedaccording to common criteria. In order for this to happen, funding institutions need tocomplementandcommunicatewithotherfunds,sincenosinglefinancinginitiativecanfullymeetcountries’needs.

49. InadditiontotheinitiativesdescribedaboveWhilesupportforearlyphasesforREDD‐plushasbeenprovidedalreadythroughtheseinitiativesformanyREDD‐pluscountries,therearestillfinancinggapsthattheGCFcanfill.Thesegapsincludesupportfordevelopingcountriesthatdidnothaveaccess,oronlyhadpartialaccess,tootherinitiatives.Insuchcases,theGCFcouldprovide initial support in the absence of other initiatives, or complimentary support wherepreviousand/orongoingeffortsexist.TheGCFisalsoeagertostimulateprivatesectorsupportfor REDD‐plus. Thus, it intends towork in collaborationwith other climate funds aswell asdirectlywithcountriesand/orprivatesectorentitiestoachievecomplementarityandcoherenceandavoidduplicationofefforts

50. Procedurally,countriesrequestingGCFfundingwillalsoneedtoplayaroleinmaximizingsynergies among existing financial initiatives by contributing additional information.When acountrypreparesaproposaltotheGCFtoreceivesupportforearlyphasesofREDD‐plus,itwillberequestedtoprovidecompleteandtransparentinformationaboutplannedand/orongoingactivitiesthataresupportedbyotherinitiatives.CountrieswillalsobeencouragedtobuildonandscaleupexistingREDD‐plusactivitiesinordertoachievelargerimpactstomeettheGCF’scommitment topromoteparadigmshift. Inaddition, informationaboutdomesticallocationofresources supporting REDD‐plus will be requested, because it is essential to achievingcomplementarityandmaximizeefficiencyofresources.

51. TheGCFwillmake itscontribution to theREDD‐plus finance landscapebyworking toensure complementarity and coherence with other REDD‐plus financing initiatives. It willsupportcountriestomakeprogresstowardachievingtheirREDD‐plusgoalsbyincreasingthescaleofREDD+actionsandfinance,andhelpingcountriesadvancethroughphases1and2(andeventually into phase 3). Furthermore, as part of the GCF’s Operational Framework onComplementarityandCoherence,33theGCFintendstoidentifythematicsynergiesonREDD‐plusbetweenproject/programmeportfoliosacrossclimatefundsaspartofitswork.Thiscouldoccurboth as part of programming efforts at the country level, and as part of designing efforts forprogrammes specifically aiming to scale up successful experiences from funding andimplementingproposals. These efforts, taken togetherwill allow theGCF tomeet its goals ofenhancing complementarity at the activity level and promoting coherence at the nationalprogramminglevel.

52. TheGCFacknowledgesthateachcountry’sneedsandcircumstancescanvarygreatlyandassuch,theinformationprovidedabovemaynotbeapplicableforsomecountriespreparingtocarryoutREDD‐plusactivities.TheGCFiswillingtoworkwitheachcountrytomeetitsneedsand to fill the funding gap so that REDD‐plus can deliver its promises for climate changemitigationandadaptation,aswellasnon‐carbonbenefits.

32SCF/2015/10/11Workingpaperoncoherenceandcoordination:issuesrelatedtofinanceforforests,takingintoaccountdifferentpolicyapproaches.

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AnnexI:DraftdecisionoftheBoard

TheBoard,havingconsidereddocumentGCF/B.17/16titled“GCFsupportforearly

phasesofREDD‐plus”,

(a) TakesnoteofthedocumentprovidedtosupporteffortsbynationaldesignatedauthoritiesandfocalpointstoengagewiththeGCFinearlyphasesofREDD‐plususingexistingmodalities,toolsandprogrammes.

(b) Encouragesnationaldesignatedauthoritiesandfocalpointstoaccessreadinesssupportdirectly,ortocollaboratewithreadinessdeliverypartnersandaccreditedentitiestosubmitreadinessrequests,forearlyphasesofREDD‐plus,usingtheexistingmodalitiesforaccessingreadinessandpreparatorysupport.

(c) Furtherencourages nationaldesignatedauthoritiesandfocalpointstocollaboratewithaccreditedentitiestosubmitconceptnotes,projectpreparationfacilityrequestsandfundingproposalsthatwillfacilitatesupportforearlyphasesofREDD‐plus.

(d) RequeststheSecretariattoprepareappropriatecommunicationmaterialinordertofacilitateaccesstotheinformationpresentedinthedocument“GCFsupportforearlyphasesofREDD‐plus”andupdatetheinformationprovidedinlightoffutureBoarddecisionswhenneeded.

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