Amazon Fund for Forest Conservation and Climate

Project description

Title: Amazon Fund for Forest Conservation and Climate
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ) and Norway’s International Climate and Forest Initiative (NICFI) conducted by the Norwegian Ministry of Foreign Affairs
Country: Brazil
Lead executing agency: Banco Nacional de Desenvolvimento Econômico e Social (BNDES) – Brazilian National Bank for Economic and Social Development
Overall term: 2010 to 2019

Cocoa fruit: Raquel Agra

Context

Brazil’s national policy for climate change aims to reduce deforestation in the Amazon region by 80 per cent by the year 2020 and reduce the country’s CO2 emissions by up to 38,9 per cent. Regional measures included in the Plan for the Prevention and Control of Deforestation in the Legal Amazon (PPCDAm) have contributed to reducing the annual deforestation rate from 27,772 square kilometres in 2004 to 6,947 square kilometres in 2017 – a decrease of 75 per cent.

In 2008, the Brazilian Government established the Amazon Fund. This is the world’s leading results-based national REDD+ financing mechanism (REDD+ stands for ‘reducing emissions from deforestation and forest degradation’ plus conservation, sustainable management of forests and the enhancement of forest carbon stocks in developing countries).

The Amazon Fund has already received USD 1.2 billion from international donors in order to reach it´s aim of reducing deforestation. Norway is the principal donor with a contribution of USD 1.1 billion. Germany’s Kreditanstalt für Wiederaufbau (KfW) has contributed EUR 55 million to date.

The Brazilian National Bank for Economic and Social Development (Banco Nacional de Desenvolvimento Econômico e Social (BNDES)) manages the Amazon Fund, thereby ensuring the Brazilian Government’s ownership in that initiative.

The involvement of key actors at federal, state and civil society levels in the Amazon Fund Guidance Committee´s (COFA) decision-making processes ensures broad-based ownership of the Fund.

Objective

The Amazon Fund has improved its performance qualitatively and quantitatively.

Firebrigades

Approach

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH is working on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) to advise the Amazon Fund staff of the Brazilian development bank BNDES. It advises potential applicants and implementing organisations of the public sector, and partially the third sector, as well as, in the course of evaluations, the direct project beneficiaries – mainly in the Amazon states.

The cooperation project is being cofinanced by the Norwegian Government until December 2018, with a contribution of EUR 3.45 million.

Results

The following results have been achieved to date:

  • The effectiveness of resource allocation and the number of projects supported by the Fund have been consolidated and substantially increased. In 2010, the Fund supported 13 projects, with disbursements totalling USD 5 million. By 2018, this figure had risen to 100 projects, with disbursements totalling nearly USD 426 million (as at September 2018).
  • The project has promoted new strategic topics such as sustainable production (2012), environmental management in indigenous protected areas (2014) and the Brazilian environmental registry CAR (Cadastro Ambiental Rural, 2015). In 2017, the Amazon Fund began issuing invitations to tender for promotional measures in the areas of sustainable and inclusive value chains and reforestation of deforested areas, to a total value of USD 146 million. Funding lines were established to develop agrarian reform settlements sustainably and strengthen the capacities of state authorities to control deforestation. To support the invitations to tender, workshops for potential applicants were planned and held in various states and broadcast online.
  • GIZ helped to improve project implementation by providing skills development measures on an online learning platform in administrative and financial management, project management and impact monitoring accompanied by on-site trainings. Training materials, including a monitoring guide, were also produced. The project advised larger projects directly with regard to resolving implementation bottlenecks. An interim report has shown that direct advice leads to a 50 per cent increase in disbursements, on average. In the case of the Brazilian deforestation control authority (Brazilian Institute of Environment and Renewable Natural Resources, IBAMA), disbursements increased by as much as 74 per cent.
  • GIZ helped to carry out six ex post impact evaluations of completed projects. These evaluations demonstrated contributions to reducing deforestation and restoring degraded areas of land. One project, for example, set up a regional market for seedlings to be used for reforestation, thereby laying the foundations for a sustainable local production system. An overall evaluation of the Amazon Fund is planned to take place in 2019.
© GIZ