The Forest Carbon Partnership Facility (FCPF) of the World Bank, at its Carbon Fund Eighth Meeting (CF8), which met in Paris from 8-9 December 2013, has announced the approval of the Methodological Framework, a set of rules guiding the finance of large-scale investments in tropical forest conservation and restoration.
16 December 2013: The Eighth Meeting of the Carbon Fund (CF8) of the Forest Carbon Partnership Facility (FCPF) approved the Methodological Framework, which presents a set of rules guiding the finance of large-scale investments in tropical forest conservation and restoration.
The Methodological Framework is meant to be employed by Carbon Fund participants, along with other selection criteria, to select Emission Reductions (ER) Programs into the Carbon Fund portfolio, including programs proposed by REDD+ countries. The Carbon Fund currently has $390 million available for allocation.
The Methodological Framework is a set of 37 criteria and related indicators, associated with five major aspects of ER Programs: level of ambition; carbon accounting; safeguards; sustainable program design and implementation; and ER Program transactions. Approval of the Methodological Framework follows a two-year process that includes input from governments, private companies, civil society and indigenous peoples organizations. The Framework represents the first set of rules provided by an international body for the finance of global warming emissions reductions from the prevention of tropical forest destruction. CF8 took place in Paris, France, from 8-9 December 2013.
In addition, at the 16th FCPF Participants Committee Meeting (PC16), which was held from 13-15 December 2013, in Geneva, Switzerland, the Government of Norway announced a $100 million pledge to the FCPF Readiness Fund. The UK also confirmed its readiness to further contribute to the Fund.
According to the World Bank, “The financial boost to the readiness fund made it possible to select eight of the so called ‘candidate countries’ into the FCPF. The countries – Bhutan, Burkina Faso, Cote d’Ivoire, Fiji, the Dominican Republic, Nigeria, Pakistan, and Togo – have been allocated readiness grants totaling $30.4 million.”
The FCPF is a global partnership of government, private sector, civil society and indigenous peoples focused on supporting REDD+ readiness, finance and implementation. The FCPF consists of the Readiness Fund, which at $360 million, provides grant financing to countries to develop and implement national strategies for REDD+, and the Carbon Fund, currently at $390 million, which is meant to provide payments upon verification that emissions have been reduced. The World Bank is the Trustee of the Readiness Fund and the Carbon Fund, and provides secretariat services through a Facility Management Team. [World Bank Press Release] [Nature Conservancy Press Release] [FCPF Meeting Resolution] [FCPF Website] [World Bank blog]