June, 2024
Pioneering Climate Finance for Forest Conservation
Pioneering Climate Finance for Forest Conservation
June, 2024
Results story
Third Evaluation of the Forest Carbon Partnership Facility now published.

Plants are taken care of in a nursery in May 2024 in Bach Ma National Park, Thua Thien Hue Province, Vietnam. Linh Pham / World Bank

The third independent evaluation of the Forest Carbon Partnership Facility (FCPF) is now available for download. This important assessment, conducted by an independent body, provides an in-depth review of the FCPF's achievements and challenges since its inception in 2008. Established to advance REDD+ initiatives, the FCPF has been instrumental in global efforts to combat climate change by reducing emissions from deforestation and forest degradation, conserving forest carbon stocks, promoting sustainable forest management, and enhancing carbon stocks.

With support from 17 governmental and non-governmental entities, including the private sector, FCPF assists 47 developing countries across Africa, Asia-Pacific, Latin America, and the Caribbean. Its two funding mechanisms, the Readiness Fund (RF) and the Carbon Fund (CF), collectively exceed USD 1.3 billion. The third evaluation, commissioned in April 2023, focuses on assessing the final phase of the RF which closed in December 2022, ongoing CF implementation, and FCPF’s broader influence on REDD+ architecture and sustainable development.

Key Findings and Impact

The evaluation concluded that FCPF has played a crucial role in the REDD+ and results-based climate finance landscape both globally and at the country level. It has helped countries develop the necessary capacities for REDD+ and carbon market readiness while generating significant co-benefits such as improved livelihoods, biodiversity conservation, and inclusivity.  

"The FCPF's success in integrating climate finance with sustainable forest management practices sets a new standard for global climate action," said Erwin De Nys, Manager, Climate Finance Mobilization at the World Bank. "We are proud of the progress made and are committed to leveraging these insights to scale up our efforts."

Key Highlights from the Evaluation
  1. Significant Emission Reductions: By the end of 2025, FCPF expects to achieve or exceed its target of 144 million of carbon dioxide equivalent (tCO2e), generating 167.8 million tons  tCO2e in emission reductions.  
  2. Advancing REDD+ Readiness: Nearly 60% of the 46 FCPF countries have reached readiness in at least three of the four building blocks of REDD+ readiness, with 74% having their Readiness Packages endorsed. Participating countries mobilized a total of USD 2.6 billion in support of readiness activities, further bolstering their capacity to implement REDD+ initiatives.
  3. Co-benefits and Inclusivity: FCPF activities have generated significant co-benefits, including improved livelihoods, biodiversity conservation, and inclusivity. The evaluation noted the protection or conservation of 11.4 million hectares of forests and the restoration of over 120,000 hectares.
  4. Private Sector Engagement: The establishment of 68 partnerships with the private sector has been crucial in fostering sustainable land use and forestry practices. These partnerships have played a significant role in advancing REDD+ and results-based climate finance initiatives.
  5. Behavioral Changes and Capacity Building: The evaluation documented emerging behavioral changes among forest communities and governments, as well as positive impacts on livelihoods and biodiversity. FCPF has been instrumental in building the readiness capacity of countries to deliver and access REDD+ finance.
Management Response and Actions

In response to the evaluation, FCPF management committed to addressing the recommendations to sustain and enhance the impact of the program. Key actions will include exploring ways to ensure ongoing financial and capacity-building support for lower-income countries, enhance stakeholder engagement for greater transparency and effective representation, and develop alternative financing mechanisms for High Forest, Low Deforestation (HFLD) countries. Additionally, going forward management will focus on applying Theory of Change (TOC) tools to improve program design and strengthening private sector engagement to foster sustainable land use practices and high-integrity forest carbon markets.

"The evaluation highlights the critical role FCPF has played in building foundational capacities for REDD+ enabling countries to access to result-based payments including carbon markets," said Andres Espejo, Fund Manager for FCPF. "The lessons learned will guide our ongoing work within FCPF and the design of sustainable forest and land use programs under the Scaling Climate Action by Lowering Emissions (SCALE) multi-donor trust fund, setting the stage for even greater impact in the future."

Download the full evaluation report here or read the 4-page summary here.