9 September 2015: The Third Forum of the Standing Committee on Finance (SCF) under the UNFCCC focused on enhancing coherence and coordination of forest financing. The Forum addressed forests in the context of both mitigation and adaptation to climate change. The outcomes of the discussions are set to guide the SCF in shaping conclusions and, potentially, recommendations to the Conference of the Parties (COP) on coherence and coordination on financing for forests.

The Forum was held on 8-9 September 2015, in Durban, South Africa, in parallel to the World Forestry Congress (WFC). On the first day of the Forum, participants focused on the existing landscape of forest finance, both public and private, hearing presentations on forest finance under the architecture of land-use finance and under the UNFCCC, the Convention on Biological Diversity (CBD) and the UN Forum on Forests (UNFF). According to the presentations, overall land-use funding amount to approximately US$8 billion, with financial flows to and investment in forests totaling more than US$1 billion.

Following several presentations offering perspectives on how best to create coherence in the delivery of forest financing, a number of presenters from multilateral financial institutions, national governments and international organizations considered how to best use public or private finance for adaptation and mitigation through forests.

On the second day, the scope narrowed to ways and means to transfer payments for results-based actions and the provision of financial resources for alternative approaches. Presenters addressed how to ensure all forest benefits are achieved, including economic, ecological and social. A final session covered joint public-private approaches.

Participants highlighted that further clarity on the availability of funding for REDD+ is needed, especially for phases II and III (demonstration activities and full-scale implementation, respectively), as most REDD+ funding is currently concentrated in phase I (readiness). Discussions also dwelled on the drivers of deforestation, underscoring the need to recognize agriculture as a key driver. In trying to enhance coordination of forest financing at the international level, many raised the importance of being cognizant of national development plans.

Break-out groups convened throughout the two days to discuss these issues in more depth. The findings of the discussions will be summarized in an executive summary of the Forum, which will inform the SCF in its continued deliberations on the coherence and coordination of financing for forests. The Committee will consider the report at its 11th meeting, to be held from 26-28 October 2015, in Bonn, Germany.

The SCF was established to assist the COP in exercising its functions with respect to the Financial Mechanism of the Convention. The COP requested the SCF, in decision 7/CP.19 to consider the issue of financing for forests, taking into account different policy approaches, in its work on coherence and coordination. By COP decision 9/CP.19, the SCF was also tasked to focus its soonest forum on financing for forests. [SCF Website] [SCF Third Forum Webpage] [UNFCCC Press Release] [Forum Concept Note] [IISD RS Sources]