Amazon forest conservation and climate fund

Project description

Title: Amazon forest conservation and climate fund
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Brazil
Lead executing agency: Banco Nacional de Desenvolvimento Econômico e Social (BNDES)
Overall term: 2010 to 2016
Brazil. Organic cocoa pod. (Photo Raquel Agra) © GIZ

Context

Around half of Brazil’s greenhouse gas emissions are caused by changes in land use and deforestation. In order to reduce global emissions, the UN climate finance model REDD+ was developed. The Brazilian Amazon Fund is considered a successful example of how this model can be implemented. International donors pay into the Fund on the basis of verifiable reductions achieved in deforestation. Brazil is committed to using the funds for its further efforts in combating deforestation in the Brazilian Amazon region. The Brazilian Development Bank (BNDES) manages the Fund; Germany and Norway are the chief contributors.

At the end of April 2016, the Amazon Fund was the global leader in comparison with other climate funds. Continuing challenges include improving the managerial capacity of the applicants for financial support, as well as assessing the Fund’s impacts.

Objective

The performance capacity of the Amazon Fund has improved in terms of both quality and quantity.

© GIZ

Approach

GIZ primarily advises the team of the Amazon Fund at BNDES. Potential applicants for support are advised locally in the states of the Amazon region. Advisory services include:

  • Expanding the Fund’s portfolio by identifying new funding approaches.
  • Improving project applications submitted to the Fund.
  • Capacity building for applicants through training activities on project planning and implementation as well as impact monitoring and evaluation.
  • Developing methods for overall programme impact monitoring and evaluation.
  • Collecting and disseminating knowledge about project regions and management for the Amazon Fund team.
  • Supporting the Fund’s institutional and financial sustainability.

The cooperation project is cofinanced by the Government of Norway.

Results

  • Improved project applications and increased allocation of funds
    The applications for support from the Brazilian Rural Environmental Registry (CAR) have been improved; 10 projects are now being funded. Furthermore, the project has assisted with the preparation of invitations to tender, for example in the field of environmental and land management in indigenous areas. The effectiveness of the allocation of funds and the number of projects supported by the Fund have been substantially increased: in 2010 the Fund financed 13 projects with disbursements totalling 5 million US dollars, in 2016 the figure rose to 82 projects with disbursements totalling nearly 232 million US dollars.
  • Training measures
    A long-term strategy for training was devised. It helps to identify the main challenges facing projects supported by the Fund. With GIZ assistance, courses on project planning and implementation as well as impact monitoring and evaluation were developed and conducted.
  • Impact monitoring and evaluation
    Standard indicators and guidelines on impact monitoring and evaluation were created for the support areas of federal state fire management and sustainable value chain development. They help the projects to carry out monitoring, reporting and evaluation on the basis of standardised methods. This facilitates a better overview of the overall impact of the Amazon Fund.
  • Institutional and financial sustainability
    The Amazon Fund currently has more than 1 billion US dollars. It has become an internationally recognised and attractive instrument for financing efforts to address the impacts of climate change. As a result, the Fund was pledged an additional 700 million euros in international funding during the 2015 UN Climate Conference in Paris.

Over the long term, the Fund is contributing to reductions in greenhouse gas emissions by protecting forests and promoting the Amazon region’s sustainable development. Supported by financing through the Fund:

  • In 2015, an area about the size of Manhattan (New York City) was reforested (approximately 7,000 hectares).
  • More than half of the indigenous areas within the Amazon region received support with land management planning. This represents an area roughly twice the size of Germany.
  • Management of 94 protected areas covering 14 million hectares, an area double the size of Ireland, was improved.
  • New conservation areas were established on areas covering over 7,000 hectares.
  • Projects on sustainable production systems are benefiting 86,000 people. More than 22,000 members of the indigenous population are direct beneficiaries of Amazon Fund projects.
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