Indonesia - FCPF Readiness Preparation Grant FCPFR - Forest Carbon Partnership Facility

Transcription

1 Assignment: TF Indonesia - FCPF Readiness Preparation Grant FCPFR - Forest Carbon Partnership Facility Task Team Leader: Approving Manager: Dinesh Aryal - Iain G. Shuker Summary Information TF Status ACTV Recipient Country Indonesia Executed By Recipient Managing Unit GEN2A Grant Start Date / End Date 06/10/2011 to 05/31/2020 Original Grant Amount 3,196, Grant Amount 8,196, Outstanding Commitments 0.00 Cumulative Disbursements 4,043, as of 06/30/2018 Disbursed 07/01/2017 to 06/30/ , Donor TF MULTIPLE DONORS This GRM report includes the following sections: Overview, Components, Outcome, Execution, Program(FCPFR), Disbursements. Page 1 of 6

2 OVERVIEW Overall Assessments Grant Objectives: The Development Objective of this grant is to contribute to the development of Indonesia#s capacity to design a sound national REDD+ strategy, develop national and sub-national reference scenarios and establish a forest monitoring and carbon accounting system, consistent with local, regional and national conditions and circumstances Overall progress from 07/01/2017 to 06/30/2018 with regard to Achieving Grant Objectives: Comment: The overall project implementation has showed slow progress toward achieving grant objectives. It is critical for Indonesia to expedite the implementation of planned activities supported by the readiness grant, notably any analytics that are deemed important to provide technical inputs to the Emission Reduction Program Document (ERPD) in support of the preparation of result-based payment program in East Kalimantan. Furthermore, delay in implementation has also slowed the progress in creating REDD+ readiness enabling environment at the national and provincial level, including institutional and technical capacity at all levels. Overall progress from 07/01/2017 to 06/30/2018 with regard to Implementation of Grant Financed Activities: Comment: The overall progress of project implementation is facing significant delays due mainly to slow progress in the implementation of key activities, notably procurement of key studies that are needed to advance the preparation of Emission Reduction Program Document (ERPD), led jointly by the Ministry of Environment and Forestry (MOEF) and Regional Council on Climate Change (DDPI # the responsible agency appointed to coordinate FCPF Carbon Fund in East Kalimantan). The delay has adversely affected the completion of a robust and technically sound ERPD. Despite slow progress in commencing a number of key activities, significant progress has been made in the development of ERPD during the reporting period supported by other development partners, such as GGGI, GIZ, TNC and WWF. These development partners have been actively providing important technical support to fill the gap in advancing the development of ERPD. The overall progress on safeguards aspect has been modest. The long procurement process of consulting service is finally completed. The consulting firm has been selected and contract signing is likely completed in August 2018 (status: completed). The consulting firm is expected to develop Strategic Environmental and Social Assessment (SESA) and develop Environment and Social Management Framework (ESMF) for East Kalimantan Emission Reduction Program (ERP). The SESA is also going to contribute to the development of Jambi ERP. Grant follow-up and structure Description and context of Grant: Indonesia is a strategic country for REDD+ implementation and also an active participant in REDD+ dialogue internationally since the UNFCCC COP 13 in Bali. It has been participating in a number of REDD+ programs supported by bilateral and multilateral donor initiatives, including FCPF Readiness Fund. Indonesia#s Readiness Preparation Proposal (R-PP) was endorsed by FCPF Participants Committee for US$ 3.6 million readiness fund and US$5 million additional fund to assist the GOI in preparing REDD+ implementation that will lead to sustainable financing and improved sustainable management of forest resources. The development objective of the FCPF Readiness Fund is to contribute to the development of Indonesia#s capacity to design a sound national REDD+ strategy, develop national and sub-national reference scenarios and establish a forest monitoring and carbon accounting system, all consistent with local, regional and national conditions and circumstances. The project is national in scope and contribute to financing for capacity building, research and information dissemination for supporting the national REDD+ framework. Indonesia has made global commitments for sustainable forest management and reducing emission. As such the GOI has issued moratorium on issuing new licenses for oil palm and in peatlands. Furthermore, Indonesia has made commitment in its Nationally Determined Contribution (NDC) to reduce emissions up to 29% by 2030 through using government budget and up to 41% by 2030 with international financial support. Expected follow up (if any): Follow up Bank project/loan/credit/grant Page 2 of 6

3 Comment on follow up: The potential inclusion of Indonesia into the FCPF Carbon Fund portfolio during the upcoming Carbon Fund Meeting in February 2019, GOI and the Bank will continue its partnership in Emission Reduction Program in East Kalimantan, as designed in the ERPD. End Date of Last Site Visit: Restructuring of Grant: No restructuring is considered. However, as a result of grant restructuring in November 2016 which provided US$5 million additional funding, the FCPF Readiness Fund is also supporting the REDD+ readiness in subnational level including capacity building activities in East Kalimantan and Jambi, and the development of ER Program in East Kalimantan. OUTCOME Comments on outcome achieved from 07/01/2017 to 06/30/2018 Grant Outcome Indicators No Outcome indicators are defined or used for this grant. COMPONENTS Output and Implementation by Component Component 1 - Analytical work Completed All activities under Component 1 has been completed and reported in the previous GRM All activities under Component 1 has been completed and reported in the previous GRM Component 2 - Management of readiness process Under Implementation Capacity of REDD+ related institutions strengthened; REDD+ ownership strengthened; awareness and capacities of all REDD+ actors improved Dissemination of information is an ongoing activity (publications are publicly available online; Training on SESA/ESMF was held in EK participated by relevant stakeholders EK, Jambi & MOEF Component 3 - Reference Emissions Level (REL) and Measurement, Reporting and Verification (MRV) Under Implementation Increased certainty in GHG estimates from reduced emissions and increased removals, and stabilization of forest carbon stocks PSPs were established and monitored in six districts in EK; Data management was done through web-based carbon monitoring system Page 3 of 6

4 Component 4 - Regional Data Collection and Capacity Building Under Implementation The targeted districts have sufficient capacity to prepare for REDD+ Activities are focusing on facilitation in support of the development of ERPD in East Kalimantan and project preparation for BioCF program in Jambi e.g. FGD, public consultation to relevant sectors Comment on planned and actual Output Comment on component implementation progress The overall project implementation during the reporting period has been on supporting the finalization of ERPD development for Emission Reduction Program in East Kalimantan. Activities include workshop, focus group discussion, consultation to relevant stakeholders at national and subnational level. Procurement process has also been focusing on hiring consultants/firm to support the ERPD development. The component 3 rating has been down-graded due to delay in commissioning studies and technical assistance which has affected the MRV system. EXECUTION Bank project related to the grant Project ID / Name: Project Global Focal Area: Product Line: P Indonesia- FCPF REDD Readiness Lending Climate change CN - Carbon Offset Implementing agency and contact details Agency: Contact: Address: Research Development & Innovation Agency, Directorate General of Climate Change Dr. Syaiful Anwar Research Development and Innovation Agency, Ministry of Environment and Forestry Phone: syaifula09@gmail.com Website: PROGRAM Program Specific Questions 1. Describe progress in how the Grant activities are being coordinated with other REDD+-related initiatives, including those funded by Describe progress in how the Grant activities are being coordinated with other REDD+-related initiatives, including those f The institutional responsibilities for climate change and REDD+ are placed under the Directorate General of Climate Change (DGCC), Ministry of Environment and Forestry, where DGCC plays as key role as the national focal point for climate change issues. This has created opportunities to further advance and align development partner- and government-led activities going forward to help achieve the GOI#s NDC targets. As the GOI is currently preparing two large-scale sub-national performance-based payment programs in East Kalimantan and Jambi, a main challenge faced by the GOI, particularly the FCPF CF, is the mobilization of up-front investment finance for activities that will result in reduced emissions. In addition, both programs must be carefully coordinated with other activities financed by national and sub-national government, development partners and NGOs, including those financed by the World Bank under the Sustainable Landscape Management Program (i.e. FIP, DGM, GEF Social Forestry, One Map, FCPF, BioCF ISFL). As the World Bank is also providing support for other programs Page 4 of 6

5 involving community development, agricultural development and governance reforms, the World Bank can contribute to and play a coordinating role between MOEF and other development partners, and leverage financing to support the government#s priorities to achieve the national NDC targets. 2. Describe any important changes in the technical design or approach related to the Grant activities. The Project Development Objective (PDO), project beneficiaries and categories of activities under Additional Funding (AF) remain unchanged. However, since the AF was designed to directly support the design of two large-scale jurisdictional Emission Reduction Programs in East Kalimantan and Jambi, additional key result indicators were added to support the achievement of the AF grant objectives: i) Indonesia will be REDD+ ready (based on the assessment criteria of the Readiness Package; and ii) large-scale ER Program at the sub-national level will be designed to pilot the implementation of REDD+. 3. Describe progress in addressing key capacity issues (implementation, technical, financial management, procurement) related to this Grant. The additional funding has budget allocation to support the establishment of program management unit to support the implementation of FCPF Readiness Fund, and preparation of FCPF Carbon Fund and BioCarbon Fund programs. This unit will consist of consultants who will support in project management, technical, fiduciary (financial and procurement) management, and other related skills including monitoring, reporting, carbon accounting, economist/nrm, social development, environment, communication, private sector and commodity related experts. The additional funding will also be available to support capacity building particularly at sub-national level with the main focus on East Kalimantan and Jambi to advance their capacity and readiness going forward. The Project Coordinator was recently hired and has been instrumental in the development of ERPD, while selection of PMU was cancelled due to both parties not able to reach an agreement at the contract negotiation stage. FOERDIA proposed to hire several individual consultants instead. There is lack of capacity of procurement services units which resulted in procurement delays. The Bank has provided hands-on support to FOERDIA and DGCC. 4. Describe progress in addressing social and environmental issues (including safeguards) related to the Grant. Is the SESA conducted in accordance with the Common Approach? The Grant has contributed to strengthening in-country safeguards capacity and awareness through various processes to identify and respond to potential environmental and social risks associated with implementation of REDD+ activities. MoEF has carried out significant analytical work and stakeholder consultations as part of the broader REDD+ development, including country safeguards initiatives, SIS-REDD+ and PRISAI (Principles, Criteria, and Indicators for REDD+ Safeguards). While existing efforts represent an immense amount of work toward strengthening systems and capacity for safeguards management, there is not yet a comprehensive analysis of environmental and social risks, understanding of country systems and safeguards capacity across implementation levels, which represent gaps for the completion of the SESA. Furthermore, necessary consultations with target communities in East Kalimantan, including Adat communities, are yet to be carried out as part of the finalization of ER program design and expected to continue during program implementation. To address these gaps, MoEF has procured additional capacity to advance the SESA processes which include additional analytical work, consultations, and stock-taking exercise of previous safeguards processes. A complete SESA draft is expected to be produced by November Is the ESMF prepared in accordance with the Common Approach? The development of the ESMF to govern management of environmental and social risks associated with the program is currently on-going. A preliminary draft is available, however key gaps exist particularly with regards to measures to address potential activities under each of the strategic options in the ERPD. The ESMF is expected to be built on the country systems, including country safeguards initiatives such as SIS REDD+, PRISAI with gap filling measures being embedded in the framework to ensure full compliance with the World Bank#s safeguards policies. To expedite the completion of the ESMF, the same consultant for the SESA has been assigned to support MoEF to finalize the ESMF which also includes a capacity-building strategy at the implementation level to respond to potential risks associated with the proposed activities in the ERPD. The ESMF is expected to be completed by November Page 5 of 6

6 6. Describe progress in stakeholder consultation, participation, disclosure of information, and the FGRM related to this Grant. DGCC has recently mobilized a consulting firm to assist with the preparation of the SESA and ESMF. As part of the preparation process, DGCC, with support from the firm and East Kalimantan Council for Climate Change (DDPI), is leading engagement with key stakeholders, including target communities. Further public consultations for the finalization of the program design are planned. DISBURSEMENTS Disbursements Summary in USD Date From Date To Planned Cumulative Planned Period Actual Cumulative Actual Period 01/01/ /30/ /01/ /31/ , , /01/ /30/ , , /01/ /31/ , , /01/ /30/ ,509, , /01/ /31/ ,022, , /01/ /30/ ,604, , /01/ /31/ ,766, , /01/ /30/ ,766, /01/ /31/ ,934, , /01/ /30/ ,045, , /01/ /31/ ,196, , /01/ /30/ ,403, , /01/ /31/ ,556, , /01/ /30/ ,043, , /01/ /31/ /01/ /30/ /01/ /31/ /01/ /30/ Page 6 of 6