This document discusses maximizing financing for jurisdictional REDD+ through accessing complementary sources of climate finance. It outlines the GCF REDD+ Results-Based Payments pilot program and potential next steps, including expanding the program to engage more countries and the private sector. The document also discusses considerations for integrating carbon market elements and accounting at subnational and national levels to leverage funding from compliance and voluntary carbon markets while meeting UNFCCC requirements.

1. 11th November 2020
GCF REDD+ RESULTS-BASED
PAYMENTS
Maximizing Financing for Jurisdictional REDD+:Accessing
Complementary Sources of Climate Finance
Juan Chang
Principal Forest and Land Use Specialist

2. GCF IN INTERNATIONAL REDD+ FINANCE
UN-REDD
FCPF Readiness Fund
Green Climate Fund
Phase 1 Phase 2 Phase 3
Forest Investment Program
GEF-SFM
REDD Early Movers
FCPF Carbon Fund
Amazon Fund
CentralAfrican
Forest Initiative
Congo Basin Forest Fund
Bilateral agreements
BioCarbon Fund
GCF supports all phases of REDD+

3. INVESTMENTS BY THE FUND’S RESULTS AREAS
Projected portfolio
0 500 1000 1500 2000 2500
Ecosystem & Ecosystem services
Infrastructure & built environment
Health, well being, and food & water security
Most vulnerable people & communities
Forestry and land use
Buildings, cities and industries & appliances
Low emission transport
Energy access & power generation
Public Private
29%
2%
17%
16%
12%
10%
8%
6%
1,131 M USD
(Public USD 1,003M +
Private USD 128M)

4. POST-B.27 PORTFOLIO SCENARIO
GCF REDD+ RBP PILOT PROGRAMME
Approved Projects REDD+ RBPs (USD)
Brazil (FP100) 96.5 M USD (18.8 M tCO2eq)
Ecuador (FP110) 18.6 M USD (3.6 M tCO2eq)
Chile (FP120) 63.6 M USD (12.4 M tCO2eq)
Paraguay (FP121) 50 M USD (9.8 M tCO2eq)
Colombia (FP134) 28.2 M USD (6.95 M tCO2eq)
Indonesia (FP130) 103.8 M USD (20.3 M tCO2eq)
Argentina (FP142) 82 M USD (18.8 M tCO2eq)
Costa Rica (FP144) 54.1 M USD (10.6 M tCO2eq)
Total (USD) USD 497 M
101 M tCO2eq
$-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
$450,000,000
$500,000,000
$550,000,000
B.19 B.20 B.21 B.22 B.23 B.24 B.25 B.26 B.27 B.28
GCF
Results-based
payments
(USD)
REDD+ Results-based Payments (USD) under the RfP
(executed and projected)

5. GCF REDD+ RBP REVIEW AND ANALYSIS
PROCESS (ROADMAP INVITING BOARD
MEMBERS)

6. GCF REDD+ RBP 2
CurrentTOR with
adjustments
Period of results
Dec 2013 – Dec 2018
ImprovedTOR
Period of results
Dec 2018 – Dec 2023
NewTOR for private sector
Period of results
Dec 2018 – Dec 2023
- Same rules, procedures
and GCF tools or minimum
changes
- Priority to new countries in
other regions (Asia,Africa)
- Some rules and procedures
will be modified
- Some scorecard elements
may be adjusted (e.g.
definitions, uncertainties)
- All countries eligible
- A pipeline of proposals will
be generated
- Safeguards framework will
need to be provided
- A floor/matching price could
be offered. Upside to be
shared with host country
- Private sector could be asked
to express demand
- Voluntary participation
- Accounting at jurisdictional
scale at minimum
- Analysis of REDD+ standards
in relation to UNFCCC
requirements
- ERs retired in the country of
origin
Early draft ideas

7. UNFCCC Requirements - scorecard
Carbon Markets
Standards/Requirements
GCF: US$ 5
RBP
GCF: US$ 3
Voluntary Carbon Market: >US$ 3
- Should/could GCF provide a
matching price?
- How much should it be?
- Should there be eligibility criteria for
identifying off-takers?
- How the price bidding should be?
How to trigger competition to
increase the amount?
- What additionalVoluntary Carbon
Market Standards’ elements should
a country develop to be able to
access to the private sector window?
- What rules and procedures should
be in place?
- How should/could a country integrate carbon market
elements into their UNFCCC FREl/FRL and MRV?
- How to integrate lower level carbon accounting into
subnational/national?
- What features should the registry system have?
How could the private sector “window” look like?

8. CARBON ACCOUNTING AND TRANSACTIONS COULD OCCUR
SEPARATELY
National Scale (Country)
National / Sub-national
Registry
ER (UNFCCC)
ER (UNFCCC+)
US$ 5
GCF REDD+ RBP
US$ 3 US$ > 3
Off-taker
$$
ER
ER
$$
$$
Sub-National
(Jurisdiction)
Project
ER
ER+

9. SOME THOUGHTS
• The main objective is to reduce deforestation, degradation and restore
forest
• All possible sources of finance and solutions are needed to implement REDD+
• Non-market approaches must co-exist with market-based approaches
• Carbon Markets are essential to leverage private finance for REDD+
• Voluntary carbon markets can contribute to Countries’ NDCs if these are
retired in the country of origin (not exported and avoiding corresponding
adjustment)
• Double claiming doesn’t have an impact on achieving climate goals as long as
there isn’t double counting at government level
• Carbon accounting and commercial transactions can/should occur
independently (benefit sharing options)
• “Nesting” project level interventions to national/sub national FREL/FRL may
require detailed trade-off analysis.