Working with Forest-Related Climate Funds
To support the region in the Reducing Emissions from Deforestation and forest Degradation (REDD) agenda, the IDB is expanding its role as an implementing agency for climate change-related funds. The IDB is responding quickly to the current financing opportunities to scale up its support to Latin America and the Caribbean. Currently, the IDB is supporting the following REDD related funds:
The Forest Investment Program (FIP):
The FIP is a targeted program of the Strategic Climate Fund (SCF), which is one of two funds within the framework of the Climate Investment Funds (CIF).
The FIP supports developing countries’ efforts to reduce deforestation and forest degradation (REDD) and promotes sustainable forest management that leads to emission reductions and the protection of carbon reservoirs. It achieves this by providing scaled-up financing to developing countries for readiness reforms and public and private investments, identified through national REDD readiness or equivalent strategies.
In Latin American and the Caribbean, the FIP as of 2011 had three pilot countries: Brazil, Mexico, and Peru. The IDB is leading the program in Peru, and co-leading the program in Brazil.
Forest Carbon Partnership (FCPF):
The FCPF assists developing countries in their efforts to reduce emissions from deforestation and forest degradation and foster conservation, sustainable management of forests, and enhancement of forest carbon stocks--called REDD+--by providing value to standing forests.
The Forest Carbon Partnership Facility builds the capacity of developing countries in tropical and subtropical regions to reduce emissions from deforestation and forest degradation and to tap into any future system of positive incentives for REDD.
In Latin American and the Caribbean, the FCPF is working with 15 countries. The IDB is leading the program in Peru and Guyana.
The Guyana REDD Investment Fund (GRIF):
The GRIF is intended to be a model for REDD payments to countries with low deforestation rate and high forest cover. More specifically, the GRIF will be an instrument to get Guyana “ready” for compliance markets or non-compliance market for emissions reductions from deforestation and forest degradation. It is a transitional instrument as the country envisions a future economy in which forest and environmental services will figure prominently.
Through the GRIF, Guyana and Norway, invited the IDB to act as GRIF Partner Entities to implement specific projects and programs to prevent and control emissions from deforestation and degradation.