1. BioCFplus BioCFplus FAO, Rome – March 22, 2004 Benoît Bosquet, World Bank Harnessing the carbon market to sustain ecosystems and alleviate poverty

2. BioCFplus Purpose Lesson of the PCF: the availability of carbon finance is not enough to generate good climate change projects Host countries lack the necessary capacity Need for funds to support capacity building “ CF-assist ” = umbrella capacity building for carbon finance in the World Bank: general capacity building needs Also “ plus ” funds dedicated to PCF, CDCF and BioCF: to defray first-of-a-kind, project-specific costs and dissemination

3. BioCFplus Activities Project preparation Baseline Studies, Monitoring Protocols New project types, small-scale projects Carbon delivery mechanisms Contract and train intermediaries between buyer and seller Stakeholder involvement Priority-setting, social assessments Applied research Monitoring methodologies for LULUCF projects Dissemination of lessons learned

4. BioCFplus Business Process Multidonor Technical Assistance Program with: General activities agreed upon at the outset Annual work programs and budget submitted to contributors Annual status reports Standard World Bank auditing of trust funds And/or Individual Technical Assistance Programs with their own procedures Multidonor formula preferred to cut transaction costs

5. BioCFplus Financing Interest income on upfront contributions to BioCarbon Fund Governments of Canada and Italy ~ $50,000 / yr $50,000 = cost of one Baseline Study + draft Monitoring Plan Specific contributions sought from bilateral donors or foundations Financing gap: $285,000 (based on BioCarbon Fund capital @ $20 M)

6. BioCFplus Development Draft framework agreement between UNEP-DPDL and IUCN for 2-year program Support to DNAs and other organizations (formulation, approval, and monitoring of sinks projects) Technical assistance for projects (training on CDM rules; defray transaction costs for BioCarbon Fund projects) Sinks project market survey and promotion Knowledge management World Bank may join agreement Foundations Roundtable on April 1, 2004 to discuss CDCFplus and BioCFplus Discussion with Japan Forest Agency

7. BioCFplus and FAO Join framework agreement between UNEP-DPDL and IUCN, focusing part of the effort on projects Join BioCFplus Multidonor Technical Assistance Program Privileged information about the deals Useful insights into potential of carbon finance to support FAO and member country activities Policy formulation (e.g. National Forest Programs) Program promotion (e.g. Bioenergy Program)

8. www.biocarbonfund.org www.carbonfinance.org