reddx - tracking forest finance

Forest Trends is working in thirteen countries to track REDD+ finance from donors to in-country recipients to REDD+ projects on the ground.

The REDDX InitiativeOver US$7.3 billion has been pledged to support REDD+ readiness in the run up to 2015, with US$4.3 billion to be spent in the period between 2010 and 2012. Yet, despite high-level multilateral and bilateral or government financial commitments, information remains limited on exactly how much of this money is actually flowing to the national level, the types of REDD+ activities supported in this Fast Start period, and the organizations managing and actually implementing these activities.

Forest Trends (with funding from the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety’s International Climate Initiative, the Skoll Foundation and the Rights and Resources Initiative) is tracking REDD+ finance in thirteen countries to determine:

• Actual commitments and disbursements of REDD+ finance;• Timelines between when funds are committed and actually disbursed;• The types of organizations receiving and implementing the REDD+ activities (e.g. government, NGOs, large international

consulting firms and consultants, or community organizations);• Types of activities supported by the current financial pledges.• The aim of this initiative is to provide information that will help governments and other REDD+ stakeholders better assess gaps

and needs against national REDD+ strategies and to have a better understanding of the financial flows associated with REDD+ financing.

• Ecuador: Ecuador is reported to have one of the highest deforestation rates in South America at 1.43% per year. The country has prioritized lowering its deforestation rate through a number of national policies. Ecuador’s Ministry of the Environment launched the Socio Bosque Program in 2008 to incentivize the protection of forests, and in 2009, the country’s Plan for Good Living set a national goal to reduce deforestation by 30% by 2013. Ecuador has seen support for its initiatives from the UN-REDD Programme – after Ecuador became a beneficiary country in 2011 – and other international, multilateral and bilateral commitments. The coun-try has also seen an increasing amount of private sector investment.

• Brazil: Brazil is the largest country in South America and the fifth largest and most populous in the world. Forests cover about three-fifths of Brazil’s land area, which represents over 14% of the world’s forest coverage, including one-third of the world’s remaining rainforests. Despite the fact that the deforestation rate in the Brazilian Amazon has decreased in the last decade, defor-estation continues to be a major issue. Currently, five of the Amazon states are a part of the Governor’s Climate and Forests Task Force (GCF). The goal of the GCF is to connect these states and the fourteen others in the partnership with market and non-mar-ket finance. Brazil is currently in the process of developing a national REDD strategy.

• Vietnam: Since the 1990s, Vietnam has seen an increase in forest cover totaling 40% of the country by 2010. Specific regions still have high deforestation rates, which Vietnam is working to lower through a number of multilateral agreements and national poli-cies that support REDD+ activities. The country’s 2008 National Target Program to Respond to Climate Change seeks to evaluate the impact of climate change on Vietnam, and build the capacity of relevant organizations. In November 2010, Vietnam presented its REDD Readiness Preparation Proposal (R-PP) to the World Bank’s Forest Carbon Partnership Facility (FCPF) to obtain support through the FCPF’s Readiness Fund. In late 2012, the country began the UN-REDD Programme’s implementation phase, which aims to reduce emissions in six Vietnamese provinces

• Ghana: Ghana is reported to have one of the highest deforestation rates in Africa at around 2% per year. To combat this loss, Ghana is in the process of building a national strategy to reduce greenhouse gas emissions from forest loss and degradation, with the support of the World Bank´s Forest Carbon Partnership Facility (FCPF) and Forest Investment Program (FIP) as well as private donors.Ghana developed a REDD Readiness Preparation Note (R-PIN) which was approved in July 2008 and a REDD Readiness Preparation Proposal (R-PP) which was signed in August 2009. More recently, Ghana produced a draft investment plan for the FIP which was published in August 2012. This FIP funding will be reported as part of the 2012 data later this year.

• REDD+ data coming in 2013: Colombia, Democratic Republic of Congo, Guyana, Indonesia, Liberia, Mexico, Papua New Guinea, Peru and Tanzania.

REDDX CountriesEcuador, Brazil, Vietnam, Ghana

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Total commitments for REDD+ activities in Ecuador amounted to US$320,216 in 2009, increasing by US$248,000 in 2010 to reach a cumulative total of US$568,216. In 2011, commitments increased by a dramatic 3,520% to reach US$20,572,255. Disbursements of funds have been slow with just 2.3% (or $467,530) released by the end of 2011.

$ 320,216

2009 2010 2011

$ 43,000 $ 187,000

$ 20,572,255

$ 568,216 $ 467,530

13.4% 32.9%

2.3%

Funds committed

Proportion of funds committed already disbursed

ECUADORLevels of REDD+ Funding Flowing

Cumulative commitments and disbursements, 2009-2011

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Our In-Country Partner

Mapping the flows of REDD+ financing to Ecuador highlights that most donor institutions are funding one type of recipient. These exclusive flows of finance are from donor governments to the government of Ecuador, private foundations to international institutions, the private sector to Ecuadorian institutions, and supranational institutions to international institutions.

Multilateral institutions have committed funds to both Latin American institutions – including regional NGOs and community groups spanning several Latin American countries – and international institutions – including international NGOs with headquarters outside the country and international academic institutions – with 95% of these funds directed to international institutions.

ECUADOREmerging Results - Flows of Finance

Donors Recipients

$ 4,217,859

$ 248,000

$ 15,350,180 $ 15,350,180

$ 4,804,215

$ 200,000

$ 217,860

$ 156,216

$ 436,000

Government of Ecuador

Donor Governments

Multilateral Institutions

Private Foundations

Ecuadorian Institutions

International Institutions

Supranational Institutions

Grouped Confidential

Latin American Institutions

Private Sector

$ 164,000

Flows of REDD+ finance between donors and recipients, 2009-2011

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The chart shows the relative levels of funding donors have committed as well as the proportion disbursed by the end of 2011. The percentage of committed funding that has been disbursed varies from 0% to 58%, with an average of 16% disbursement.

ECUADORDonors

Darker shades represent portion already disbursed

Government Agency

Multilateral Financing Institution

Private Foundation

Funds committed

Funds disbursed

UN-REDD$ 3,999,999 $ 0

KfW (Germany)$ 15,350,180 $ 167,530

Moore F.$ 248,000 $ 144,000

Private Sector

Face the Future$ 164,000 $ 37,000

European Union

European Union$ 156,216 $ 6,000

Grouped Confidential$ 436,000 $ 113,000

IDB *$ 217,860 $ 0

* $ 41,400 co-financing by recipient (COICA)

Proportional total donor commitments and disbursements, 2009-2011Darker shades represent portion already disbursed

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To date, the REDD X initiative has tracked REDD+ finance as it flows from donors to the first institution receiving the funding. This so-called “first recipient” will have a legal or formal agreement with the donor specifying the total amount of funding, a timeline for activities and a schedule for when finance will be spent.

The first recipients to receive funding for REDD+ activities in Ecuador are predominantly based in Ecuador. 74.6% of funds committed in the period from 2009 to 2011 have been directed towards funding REDD+ activities through the government of Ecuador, namely the Ministry of the Environment (MAE).

Ecuadorian institutions – including Ecuadorian NGOs, academic institutions, consultants and community groups – are scheduled to receive an additional 1% of the funding from donors, along with Latin American institutions, which include regional NGOs and community groups spanning several Latin American countries. International institutions – including international NGOs with headquarters outside the country and international academic institutions – are scheduled to receive 23.4% of the total funds committed for REDD+ funding in Ecuador.

ECUADORRecipients

Funds committedto Ecuador(2009-2011)

$ 15,350,180Government of Ecuador

Ecuadorian Institutions


74.6%

$ 200,000

1%

$ 4,804,215 23.4%

1%

Latin American Institutions$ 217,860

Commitments to first recipients by location and type

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The chart shows the REDD+ activities supported by the different donor institution types. The list of activities and definitions was drawn from broad agreement among REDD+ experts, including the civil society national partners collecting data across the initiative countries.

It is important to note that the absence of support for an activity from a specific donor type does not constitute a lack of attention to the activity overall, since the activity could be well-funded through other donor types. In Ecuador, the activities supported by the greatest number of donors were monitoring, reporting and verification (MRV) and reference levels, as well as safeguards – each receiving funds from four donor types.

ECUADORREDD+ Activities

Stakeholder engagement

Rights and Tenure

MRV and reference levels

Safeguards Policy & law analysis; REDD

strategy

Institutional strengthening

Forest carbon project design

Forest and land management

Carbon Offsets and perf.-based

payments

Other

DonorGovernments


PrivateFoundations

X

X X X

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X

X

X

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X

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European Union

PrivateSector

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X X X X X

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√ √√X X X X X X X

REDD+ Activities

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BRAZILLevels of REDD+ Funding Flowing

Total commitments increased from US$134.7m in 2009 to US$353.6m in 2010, reaching US$598.6m in 2011. Disbursements have in-creased at a relatively consistent rate in the same period, amounting to 29.9% of total cumulative commitments in 2010 and 29.4% of total REDD+ financing tracked by the end of 2011.

$ 33,239,135

2009 2010 2011

$ 134,716,212

$ 353,628,894

$ 598,604,833

$ 105,889,939 $ 175,789,389

24.7%

29.9%

29.4%

Funds committed



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BRAZILEmerging Results - Flows of Finance

Mapping the flows of REDD+ financing to Brazil highlights that donor government agencies are funding every recipient type with the highest proportion of funding directed to the Amazon Fund (managed by the Brazilian Development Bank, BNDES).

Multilateral institutions have directed funding exclusively to the government of Brazil, while the public-private sector has exclusively funded the public-private sector – namely, the Amazon Fund. Private foundations have directed around 20% of their commitments to international institutions – including international NGOs with headquarters outside the country and international academic in-stitutions – as well as international consultancies between 2009 and 2011. Over 80% of private foundation commitments have been directed toward Brazilian institutions – including Brazilian NGOs, academic institutions, consultants and community groups.

Donors Recipients

$ 20,300,000

$ 28,154,314

$ 545,940,164

$ 78,431,138

$ 11,984,343

$ 23,233,044

$ 886,953

$ 4,210,355

$ 484,069,355

Government of Brazil

Donor Governments


Private Foundations

Brazilian Institutions


Public-Private Sector

International Consultancies


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BRAZILDonors

The chart shows the relative levels of funding donors have committed as well as the proportion disbursed by the end of 2011. This percentage of committed funding that has been disbursed varies from 12% to 100%. Brazil is the only country in the REDD X initiative to show a significant number of donors with 100% disbursal rates.

NORAD (Norway)$ 446,921,500 $ 52,170,806

KfW (Germany)$ 62,581,250 $ 38,866,250

USAID (USA)$ 6,500,000$ 6,500,000

FCO (UK)$ 1,611,165 $ 1,611,165 GIZ (Germany)

$ 28,326,250 $ 28,326,250

World Bank (UK funding)$ 16,000,000 $ 16,000,000

UNEP (Norway funding)$ 4,300,000 $ 4,300,000

Climate Works$ 9,896,381 $ 8,357,465

Packard$ 4,337,361 $ 4,337,361

Ford$ 2,368,000 $ 2,368,000

Moore$ 11,552,572 $ 8,741,737

Petrobras $ 4,210,355 $ 4,210,355


Government Agency

Multilateral Institution

Private Foundation

Funds committed

Funds disbursed

Public-Private Sector


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Norway

BRAZILRecipients


The first recipients receiving funding for REDD+ activities in Brazil are predominantly based in Brazil. 80.9% of funds committed in the period from 2009 to 2011 has been channeled through the Amazon Fund. The government of Brazil – namely, the Ministry of Environment (MMA) – is scheduled to receive an additional 13.1% of the funding from donors, while Brazilian institutions – includ-ing Brazilian NGOs, academic institutions, consultants and community groups –will receive 3.9% of total commitments. International institutions – including international NGOs with headquarters outside the country and international academic institutions – are scheduled to receive 2% of the total funds committed for REDD+ funding in Brazil, and international consultancies 0.15%.

Funds committedto Brazil

(2009-2011)

$ 78,431,138 Government of Brazil

3.9% Brazilian Institutions$ 23,233,044

International Institutions$ 11,984,343

13.1%

2%

International Consultancies$ 886,953

Amazon Fund$ 484,069,355 80.9%

0.15%


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BRAZILREDD+ Activities


It is important to note that the absence of support for an activity from a specific donor type does not constitute a lack of attention to the activity overall, since the activity could be well-funded through other donor types. In Brazil, the activities that received support from all donor types (governments, multilateral institutions, private foundations, and the public-private sector) were stakeholder engagement, rights and tenure, policy, law analysis and development, institutional strengthening, and the implementation of improved forest and land management.

DonorGovernments


PrivateFoundations

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X X

X

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XPublic-PrivateSector

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X

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Rights and Tenure



strategy





payments

Other

REDD+ Activities

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VIETNAMLevels of REDD+ Funding Flowing

$ 12,377,742

2009 2010 2011

$ 578,935

$ 13,723,278

$ 20,013,083

$ 4,905,485

$ 8,432,230

4.7%35.8%

42.1%

Funds committed


Total commitments increased from US$12.4m in 2009 to US$13.8m in 2010, reaching US$20m in 2011. Disbursements have in-creased rapidly in the same period, amounting to 35.8% of total cumulative commitments in 2010 and reaching 42.1% of total REDD+ financing tracked by the end of 2011.


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VIETNAM

VIETNAMEmerging Results - Flows of Finance

Donors Recipients

$ 4,591,957

$ 861,471

$ 14,559,655 $ 10,981,743

Government of Vietnam

Donor Governments


European Union

Vietnamese Institutions


$ 953,872

$ 8,012,467

$ 65,000

International Consultancies

Mapping the flows of REDD+ financing to Vietnam highlights that donor government agencies are funding the government of Vietnam, international institutions, and Vietnamese institutions, with the majority of funding directed towards international institutions.

Multilaterals have directed over 95% of funding to the government of Vietnam, with 3% also supporting international institutions – including international NGOs with headquarters outside the country and international academic institutions – and 1% funding Vietnamese institutions – including NGOs, academic institutions, consultants and community groups. The European Union committed funds to both Vietnamese and international institutions between 2009 and 2011, providing a greater proportion of these funds (67%) to international institutions.


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VIETNAMDonors

The chart shows the relative levels of funding donors have committed as well as the proportion disbursed through end of 2011. This percentage of committed funding that has been disbursed varies from 9% to 100%. However, the majority of donors have disbursement percentages greater than 50%, with an average of 56%.

Funding from USAID is part of a regional program – LEAF, Lowering Emissions in Asia’s Forests – spanning six countries, namely Vietnam, Cambodia, Laos, Thailand, Papua New Guinea, and Malaysia. For the purpose of tracking REDD+ finance in Vietnam under this initiative, the total amount provided by USAID to the six countries was divided equally by six to represent an amount that approximates the support Vietnam is receiving from the donor. REDDX will seek to provide further detail in subsequent data updates on the amounts of regional funding actually flowing to Vietnam.


Government Agency


Funds committed

Funds disbursed

DEFRA (UK)$ 216,712 $ 144,770 FORMIN (Finland)

$ 501,589 $ 304,582

BMU (Germany)$ 2,084,106$ 178,949

JICA (Japan)$ 6,400,000 $ 3,400,000

NORAD (Norway)$ 2,023,915 $ 954,188

USAID (USA)*$ 3,333,333 $ 448,358

IFAD$ 142,201 $ 117,201

UN-REDD$ 4,384,756 $ 2,557,811

World Bank$ 65,000 $ 65,000

European Union$ 861,471 $ 261,370

Supranational Institution

* Regional program.


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Norway

VIETNAMRecipients

Funds committedto Vietnam(2009-2011)


$ 10,981,743 Government of Vietnam

$ 8,012,467

International Consultancies$ 65,000

Vietnamese Institutions$ 953,872

0.3%

4.8%

54.9%

40%


The first recipients receiving funding for REDD+ activities in Vietnam are predominantly based in Vietnam. 54.9% of funds commit-ted in the period from 2009 to 2011 have been directed to the government of Vietnam’s Ministry of Agriculture and Rural Develop-ment (MARD). Vietnamese institutions – including NGOs, academic institutions, consultants and community groups – are scheduled to receive an additional 4.8% of the funding from donors.

International institutions – including international NGOs with headquarters outside the country and international academic institu-tions – are scheduled to receive 40% of the total funds committed for REDD+ activities in Vietnam.


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VIETNAMREDD+ Activities


It is important to note that the absence of support for an activity from a specific donor type does not constitute a lack of attention to the activity overall, since the activity could be well-funded through other donor types.

In Vietnam, the activities that received support from all donor types (governments, multilateral institutions, private foundations, and the public-private sector) were stakeholder engagement, rights and tenure, policy, law analysis and development, institutional strengthening, and the implementation of improved forest and land management.


Rights and Tenure



strategy





payments

Other

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DonorGovernments


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REDD+ Activities

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GHANALevels of REDD+ Funding Flowing

Total cumulative commitments increased from US$1.8m in 2009 to US$14.2m in 2010, reaching US$14.3m in 2011. The sharp in-crease in commitments between 2009 and 2010 was accompanied by a similar relative increase in disbursements but, in general, donors have been slower at releasing committed funds.

In 2009, US$699,256 (or 38.2% of the total committed funds) had been transferred to recipient institutions. Disbursements increased in 2010 and 2011 to reach US$7.6m (or 53% of the total committed funds) by the end of 2011.

$ 699,256

2009 2010 2011

$ 1,828,257

$ 14,223,277 $ 14,325,886

$ 6,461,120 $ 7,604,958

38.2%

45.4% 53%

Funds committed


*The figure represents all known donor commitments for REDD+ activities in Ghana between 2009 and 2011. This includes one commitment for US$7,745 from the Global Forest Coalition to Friends of the Earth. At publication, we could not corroborate the source of the Global Forest Coalition’s (a coalition of NGOs) funding. For this reason, the Global Forest Coalition “commitment” has been included in the total funds committed but has not been tracked in the country charts.


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GHANAEmerging Results - Flows of Finance

Donors Recipients

$ 4,508,716

$ 601,372

$ 9,215,798 $ 12,408,716

Government of Ghana

Donor Governments


Private Foundations

Ghanaian Institutions

International Institutions$ 1,373,307

$ 543,863

Mapping the flows of REDD+ financing to Ghana highlights that donor government agencies are funding the government of Ghana and international institutions, with the majority of funding directed through bilateral government-to-government agreements.

Multilateral institutions are only funding the government of Ghana. Private foundations have committed 90% of their funds to Ghanaian institutions – including Ghanaian NGOs, academic institutions, consultants and community groups – and around 10% of their funding to international institutions – including international NGOs with headquarters outside the country and international academic institutions.


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GHANADonors


Government Agency


Private Foundation

Funds committed

Funds disbursed

NORAD (Norway)$ 555,000$ 385,000

USAID (USA)$ 175,000$ 175,000

BMU (Germany)$ 111,304$ 33,055

ITTO$ 658,716$ 658,716

ADB$ 250,000$ 0

World Bank$ 3,600,000$ 200,000

JICA (Japan)$ 7,800,000$ 5,100,000

DANIDA (Denmark)$ 574,494$ 451,815

Moore F.$ 206,372$ 206,372 Rockefeller F.

$ 395,000$ 395,000

The chart shows the relative levels of funding donors have committed as well as the proportion disbursed through 2011. The percentage of committed funding that has been disbursed varies from 100% to 0%. However, the majority of listed donors tend to have a disbursement percentage greater than 65%.


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Norway

GHANARecipients

Funds committedto Ghana

(2009-2011)$12,408,716Government of Ghana

Ghanaian Institutions


86.6%

$ 543,863

3.8%

9.6%$ 1,373,307


The first recipients receiving funding for REDD+ activities in Ghana are predominantly based in Ghana. 86.6% of funds committed in the period from 2009 to 2011 have been directed towards funding REDD+ activities through the government of Ghana, with the Forest Commission, the Forestry Research Institute of Ghana and the Ministry of Lands & Natural Resources all scheduled to receive funds.

Ghanaian institutions – including NGOs, academic institutions, consultants and community groups – are scheduled to receive an additional 3.8% of the funding from donors. International Institutions – including international NGOs with headquarters outside the country and international academic institutions – are scheduled to receive 9.6% of the total funds committed for REDD+ funding in Ghana.


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GHANAREDD+ Activities


It is important to note that the absence of support for an activity from a specific donor type does not constitute a lack of attention to the activity overall, since the activity could be well-funded through other donor types. In Ghana, the activities that received support from all donor types (governments, multilateral institutions, and private foundations) were stakeholder engagement, monitoring, reporting and verification (MRV) and reference levels.


Rights and Tenure



strategy





payments

Other

DonorGovernments


PrivateFoundations

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X

X X X

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X

REDD+ Activities

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EMERGING GLOBAL PICTURE

SOURCE: State of the Forest Carbon Markets 2012. Ecosystem Marketplace; REDDX Project, Forest Trade and Finance Initiative

TOP 10 THREATENED FOREST HOT-SPOTS

MILLIONS OF $ SUPPORTING FOREST CONSERVATION VIA PRIVATE OFFSETTING

$1-15 MILLION

$15-35 MILLION

$35-50 MILLION

$50-100 MILLION

$100-200 MILLION

MILLIONS OF $ OF REDD FINANCING COMMITTED

MILLIONS OF $ OF REDD FINANCING DISBURSED

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REDDX Looking Forward

Next Step for REDDX:

REDDX is now shifting focus to tracking finance from donors and initial recipients all the way down to the community level in our REDDX countries. Looking at how communities are engaging with REDD+ and the level of funding actually reaching local organiza-tions or community groups is a key component of this study. Data collection for 2012 is already starting to capture how funding is being spent at the local community level.

REDDX is also working with Governments to track their own finance for REDD+. This is important in building a comprehensive pic-ture of all the international and national finance and activities taking place. Such information will also provide a powerful message for national governments in coordinating with donors around under-funded activities.

REDDX currently tracks REDD+ finance in thirteen countries and is now looking to extend the project and track REDD+ finance in additional countries to build a more comprehensive, global picture of finance gaps and needs. Public financing for REDD+ is criti-cal, but information remains patchy on levels of finance going to some of the world’s top forest hotspots and countries with high rates of deforestation. To more effectively determine the full financing picture, it is vital that REDDX increase in scope to track high level public and private funds, revealing the global state of REDD+ financing.

The governments of Kenya and Ethiopia have already requested fast admission to the REDDX initiative to better understand what REDD+ activities are happening in-country. In addition, countries are already asking to use the REDDX methodology to develop national REDD+ Registries (a catalogue of all REDD+ projects in-country and the main way that governments will make decisions about where their funding will go) and tools for wider climate finance tracking. REDDX will look to build capacity and support long term monitoring of REDD+ at the national and regional level.

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reddx - tracking forest finance

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