Governors’ Climate & Forests Task Force Annual Meeting outcomes Chiapas, Mexico

1. Governors’ Climate & Forests Task Force Annual Meeting outcomes Chiapas, Mexico October 11, 2011

2. Presentation Overview • Breakout Sessions – Recommendations to GCF • Decision-making Process • 2012 Chair • New Members • Task 1 Report • Task 2 GCF Fund • Task 3 GCF Database • Task 4 Communications & Outreach • 2011 Resources • 2012 Funding & Long-term Organization of GCF • Draft Governance Document • COP-17 Durban Event • Rio +20

3. Breakout Sessions at GCF Annual Meeting 1. Alignment of State and National REDD+ Policies 2. New Opportunities for REDD+ Finance, Land Use & REDD+ Institutional Arrangements 3. Safeguards and REDD+: Lessons and Opportunities for Jurisdictional Programs 4. Legal Frameworks and Institutional Arrangements for Subnational REDD+

4. Recommendations to GCF – 1a 1a: Alignment of State and National REDD+ Policies • Build capacity and opportunities to strengthen the decentralization processes at the subnational level. • REDD+ must take into account full involvement of right holders and setup guidelines based on general principles. • Further advance sub-national arrangements as they are essential to REDD+.

5. Recommendations to GCF – 1b 1b: New Opportunities for REDD+ Finance, Land Use & REDD+ Institutional Arrangements • Think outside of the UNFCCC box, the GCF as agile motor of innovation • GCF Fund to support low emission rural development? • REDD must become one component of a new rural development paradigm to address rising commodity prices • Need broader political support • Transition from implementing REDD project by project to jurisdictional level • With state- and province-wide programs, focused on lowering jurisdiction-wide deforestation/degradation, greater focus on policy alignment, institutional innovation that are both core to development

6. Recommendations to GCF – 1b cont’d • Grow demand for GCF credits beyond California • Europe, Australia, public finance opportunities • Lower Risk for Private Investors • Risks: performance, market, political, natural disasters • Mechanisms for lowering risk: insurance for REDD credits, minimum price for credits

7. Recommendations to GCF – 2a 2a: Safeguards and REDD+: Lessons and Opportunities for Jurisdictional Programs • Jurisdictional safeguards should: • Consider the Cancun Agreement Annex I, have a good stakeholder process in place, be easy to implement, monitor and enforce, conform to subnational legal framework and have provisions for indigenous right • When developing policies and programs, “there should be a guarantee on peoples’ full involvement and representation in every process and stage, especially in the projects’ decision making processes. Peoples should be guaranteed the same rights as other parties.” - “Peoples’ Demands” Statement 20 Sept. • Work to ensure that REDD Free Prior and Informed Consent (FPIC)is extended to all land allocation decisions, not only for REDD projects. • GCF jurisdictions should use REDD+ SES standards (represents global best practices)

8. Recommendations to GCF – 2b 2b: Legal Frameworks and Institutional Arrangements for Subnational REDD+ • Create a list of best practices and viable technical and legal models that states could adapt and/or integrate in their own public policies. • Encourage the integration of vertical and horizontal public policies between levels of regulatory institutions to achieve a minimum regulatory coherence.  • Create tools to help stakeholders increase the coordination between REDD policies and levels of related regulation.

9. GCF Business Meeting

10. GCF Decision-making process New Rule: • If after a first round of discussion, there is no consensus, there is a reply round of discussions at which point, the majority decision of 2/3 of those members present and voting is followed. • If a 2/3 vote is not achieved, the decision is tabled. Former Rule: • Where there is no consensus, the majority of those members voting and present carries, with dissenting opinions or alternative views noted

11. 2012 Chair - Chiapas, Mexico • Expectations: • Secure finances to implement GCF activities • Coordinate with GCF members • Assist with stakeholder/intergovernmental outreach • Help organize and lead GCF Annual Meeting • Other recommendations • Start working on Mexico-specific announcements (multi-state efforts on social and environmental safeguards) • Explore ways to further develop jurisdictional REDD programs & link ejidos and drivers of deforestation in Mexico to these programs • Work on national-state alignment

12. New Members • Madre de Dios, Peru • West Papua, Indonesia* Requirements to become a new member: • Letter from a founding member and from the Governor of the interested jurisdiction • Expectations for members, including active participation in the GCF, • Attendance and involvement at meetings and activities • Communications with stakeholders and other members • Institutional and funding support for GCF participation • Regular updates about REDD+ advances

13. Task 1 Subnational REDD+ Frameworks Report • Task 1 Report: Revised, translatedand ready for review • November 1, 2011: all members to review and provide additional input and suggestions on technical consultants to assist • November 18, 2011: GCF Secretariat and Coordinators to make additional revisions based on input received and to release for review by stakeholders • December 2011: ver. 1.0 release

14. Task 2 GCF Fund – Overview • GCF Member mandate implemented (Santarém 2010) • To address critical collective needs of members • GCF Fund Concept Note (circulated) • U.S. 501(c)(3) entity created • $1.5 million grant from U.S. Department of State (8/2011) for 2 collective needs for 2012-2013: • improved forest carbon stock assessments; and • enhanced stakeholder processes

15. Task 2 GCF Fund – Governance Structure • GCF Fund Executive Director (interim William Boyd) • Staff Person/Project Associate • Legal and accounting consultants • Board of Directors (5) • 3 nominated by the GCF states and provinces: • 1 by 5 Indonesian provinces; • 1 by 5 Brazilian states;and • 1 by remaining 6 GCF members in U.S., Mexico, Nigeria and Peru • 2 nominated by large donors • GCF members and donors review and approve the entire group of 5. If the entire group is not approved, the process must be repeated.

16. Task 2 GCF Fund – Governance Structure cont’d • Board members: • Serve staggered, single fixed terms; • Are responsible for overseeing the Fund and approving all grants; • May request assistance from the GCF Secretariat in soliciting proposals, arranging terms of reference, and administering grants; • May elect to include individuals (e.g., from the private sector, from governments, from other REDD+ funds) in an advisory capacity with respect to funding priorities; and • Must coordinate closely with the GCF Secretariat and members

17. Task 2 GCF Fund - Status • Goal is for the Fund to be operational in early 2012; • Governance Structure approved at annual meeting • Secretariat empowered by members to: • Complete drafting of the by-laws for approval by the GCF members (Oct-Nov 2011); • Assist with the hiring of the Executive Director, Project Associate, and legal/accounting consultants • Continue to pursue additional funding; and • Formally announce Fund at COP-17 in Durban, South Africa (Dec 2011)

18. Task 3 GCF Database • Circulate database pages to members for internal review (update, edit, and do general quality control of information. Leads?) • Oct 2011 – GCF members submitrevisions . If no revisions are submitted, this will be understood as acceptance of the current version. • Nov 2011 – Markiton Demand, the Secretariat, Coordinators and database consultants make final round of editsand issue “soft launch” • Dec 2011—GCF formally rolls out the database at COP-17

19. Task 4 Communications & Outreach - Update Current Activities • GCF Stakeholder Policy implementation • Annual Report of Activities • website improvements www.gcftaskforce.org • Monthly GCF newsletter • GCF Brochure and booth materials (COP) Needs • Member 1-page handouts • GCF primers for new Governors and state/province staff in 2012

20. 2011 Resources – Remaining • Technical Workshops – Mexico & Cross-River State: $30,000 * Mexican states need to work to implement post-workshop follow-up for use of full $15,000 allocated • Consultants, country coordinators, database, event coordination : $108,520* (amount remaining after re-allocating ~ $11,000 for COP 17 Side Event and Other travel estimated shortfalls) • Total remaining: $138,520

21. 2012 Funding & Long-term Organization of GCF The funding proposal for 2012 activities that the GCF Secretariat submitted to ClimateWorks and Moore was provisionally approved. • $1,300,000 USD (maximum amount allowable by the foundations for this cycle) • A substantial increase in funds for GCF Coordination in Brazil and Indonesia and continuation of the GCF’s four Task Groups • The funders advise the GCF to be looking to diversify its funding sources moving forward • During 2012, the GCF will need to discuss the long-term organization of the GCF

22. 2012 Budget • Annual Meeting - $110,000 • Technical workshops (6 @ $15,000 each) - $90,000 • COP 18 event - $15,000 • Cross-Jurisdictional Working Group - $15,000 • GCF Secretariat (3 part-time and 2 full-time employees) - $309,341 • Consultants; country coordinators; database; event coordination - $648,242 • Project Administration - $10,000 • Indirect Costs to University of Colorado Office of Contracts & Grants - $72,417 • Other Travel - $30,000 Total: $1,300,000

23. Draft GCF Governance Policy • Outgrowth of GCF Meeting in Santarem (2010) • GCF Secretariat prepared and circulated the draft Governance Policy in English, Portuguese, Indonesian, and Spanish • November 18, 2011: GCF members submit any proposedrevisions to the GCF Governance Policy. • If no revisions are received, it will be understood as acceptance of the current version. • December 2, 2011: Secretariat will finalize the Governance Policy

24. COP-17 – Update • UNFCCC 17th Conference of the Parties (COP) in Durban, South Africa 28 November - 9 December, 2011 • GCF Secretariat submitted an application for an official side event to highlight the public release of the GCF REDD+ Knowledge Database and the GCF Fund • Applications under review by UNFCCC until mid October • GCF Secretariat also submitted an application to have a booth at Forest Day 5 • Approved applications announced Oct 30th • GCF Secretariat is exploring venues for a GCF Reception • Does your state plan to attend the COP-17? • Let us know if so—if Governors and other high-level officials do not attend, GCF may focus efforts on Forest Day and the official side event (if approved) and forgo the reception.

25. Rio +20 • 4-6 June 2012, Rio de Janiero Brazil • Two themes • A green economy in the context of sustainable development and poverty eradication; and • The institutional framework for sustainable development • Considering appropriate level of involvement for GCF • Possibility for better turnout than what is expected at the COP • Might be easier to get more participants for a formal, high level reception (if we forgo at the COP) • More time to develop a strategy, GCF announcement, etc.

26. Thank you!

27. EXTRA SLIDES

28. Task 2 GCF Fund - Overview Member Mandate (Santarém 2010) • Independent • Transparent • Rapid • Measurable • Scalable • Regular auditing • Collective needs and “proof of concept” activities • Iterates with GCF Database • Multi-million dollar • Multi-year • Promotes linkages with national REDD+ programs

29. Task 2 GCF Fund – Overview cont’d Proof-of-Concept Activities (in Selected GCF States/Provinces): Model Benefit-Sharing Arrangements Development of Sub-National REDD+ Registries Technical Improvements to Measurement and Monitoring (clouds and degradation) Leveraging private investment Collective Needs (all 13 GCF tropical forest states assisted): Progress toward achieving IPCC Tier 2 forest carbon assessments; Reference level development; REDD+ program design and capacity based on a common GCF Subnational REDD+ Platform being developed by GCF members; and Enhanced stakeholder processes

30. 2011 Resources • Annual Meeting= $110,000 • Technical workshops ( 6 @ $15,000 each) - $90,000 • COP 17 event - $15,000* (Likely to exceed) • Cross-Jurisdictional Workshops (2 @ $15,000 each) - $30,000 • GCF secretariat (3 part-time and 1 full-time employees) = $224,731 • Consultants; country coordinators; database; event coordination= $390,000 • Project Administration = $10,000 • Indirect Costs to University of Colorado Office of Contracts & Grants = $62,466 • Other Travel = $20,000 * (Likely to exceed) • Total: $952,197

31. 2011 Resources – Breakdown of Consultant Expenditures • Brazil country coordinator – IDESAM- $60,00 • Indonesia country coordinator – Kemitraan - $60,000 • Document Translation- $20,856 • Task Group Consultants– Emerald Planet, Tropical Forest Group, Keyvan Izadi- $42,909 • Other Consulting Work - Darren Anderson (GCF website creation); BeeSpring Design (Graphic Design); Keyvan Izadi - $44,968 • Central Kalimantan Event Coordination, Facilitation, and Simultaneous Translation– $40,000