Ian Gray Natural Resources GEF Familiarization Seminar Washington, DC January 17 – 19, 2012 How To Prepare Multi-Focal Area Projects SFM/REDD+ Projects

SFM/REDD+ Strategy Goal: achieve multiple environmental benefits from improved management of all types of forests. Impacts: effective provisioning of forest ecosystem services and strengthened livelihoods of people dependent on the use of forest resources How does it operate? – Investments from at least 2 GEF Focal Areas → maximizing multiple benefits – 3:1 incentive funding – Available for investments between $2 million and $30 million

How The Incentive Mechanism Works Investments from 2+ FAs seeking multiple benefits from managing forests sustainably Incentive funds released in ratio of 3:1 of FA investment STAR Resources BD CC LD e.g. BD $1,500,000 LD $1,500,000 + SFM $1,000,000 Total Project $4,000,000

Experience Already Growing From FAO FRA 2006

SFM/REDD+ Objectives 1.Reduce pressure on forest resources and generate sustainable flows of forest ecosystem services – Projects may include: Forest policy (re-)formulation, forest certification, community and small-holder forestry, PES, reduced- impact logging, integrated forest fire management 2.Strengthen the enabling environment to reduce GHG emissions from REDD-plus – Projects may include: Competition for land use, building of technical and institutional capacities to monitor GHG emissions, testing approaches that allow for the generation of revenues from the carbon market

SFM/REDD+ Results Framework Achieve multiple environmental benefits from improved management of all types of forests 1. Reduce pressures on forest resources and generate sustainable flows of forest ecosystem services 1.1 Enhanced enabling environment within the forest sector and across sectors Effectiveness of policies that integrate SFM principles 1.2 Good management practices applied in existing forests a) Forest area under FSC certification measured in hectares b) Enhanced carbon sinks from reduced forest degradation 1.3 Good management practices adopted by relevant economic actors a) Services generated in forests b) Services generated in the wider landscape 2. Strengthen the enabling environment to reduce GHG emissions from deforestation and forest degradation and enhance carbon sinks from LULUCF activities 2.1 Enhanced institutional capacity to account for GHG emission reduction and increase in carbon stocks Capacity to certify forest derived carbon credits 2.2 New revenue for SFM created through engaging in the carbon market Total revenue from carbon market Goal Objectives Outcomes Indicators Payments for ecosystem services systems established Forest area under sustainable management, separated by forest type Types and quantity of services generated through SFM National institutions certifying carbon credits National forest carbon monitoring systems in place Innovative financing mechanisms established Carbon credits generated National institutions certifying carbon credits National forest carbon monitoring systems in place Innovative financing mechanisms established Carbon credits generated Outputs

Lessons From Early Projects Wide range of forest situations applicable Landscape level approach Best projects have benefits from forests at core Synergies – whole greater than sum of parts A ‘bolt-on’ SFM component does not work Forest dependents & livelihoods – How linked to developing GEBs Importance of on-the-ground presence in field activities Inter-agency coordination PES becoming common – use STAP guidance

Lessons From Early Projects Be clear what issues the project will address Baseline – often presented as if FD is absent – NFPs, R-PPs, inventories Indicators of impacts and outcomes Remember the carbon benefits – Especially BD/LD projects

Existing SFM/REDD+ Projects 13 projects and 3 programs $45 million allocated from incentive Mixed landscape interventions

Questions? Thank you for your attention