Forest Carbon Partnership Facility

Participants Committee Meeting (FCPF PC3)Montreux, Switzerland

June 16-18, 2009

Application of World Bank Safeguard Policies to Readiness Fund Operation

• PC discussion in Panama asked:• When do Safeguards apply, at what stage?• How will they be applied, e.g., for

consultation?

• Bank internal discussions suggest:• Build on international good practices for

consultations, environmental and social safeguards

• Reviewing how Safeguards apply to FCPF stages, suggesting:

• Development of overarching frameworks first, then• Specific Safeguards applied once the REDD strategy

and activities become known

•

Working to Clarify How and When World Bank Safeguards Apply

Phase 1

Working Towards Readiness:Phases, Documents, Milestones, Legal

AgreementsPhase FCPF Document Milestone WB Legal Agreement

Phase 1:Formulation Proposal

Readiness Plan Idea Note (R-PIN)

Assessment of R-PIN by Participants Committee, leading to selection of country into partnership

• All 37: Participation Agreement

• 20 + 5: Grant Agreement ($200,000) to prepare R-Plan/R-PP (optional)

Readiness Preparation Proposal (R-PP)Readiness Plan (R-Plan)

Assessment of R-PP by Participants Committee, leading to approval of Readiness Grant (subject to completion of due diligence by World Bank)

Selected countries: Grant Agreement (up to $3.6 million) to implement contents of the R-Plan/R-PP and prepare R-Package

Phase 2:Preparing for Readiness

Readiness Package (R-Package)

Assessment of R-Package by Participants Committee, leading to recognition of progress made towards REDD readiness

Further work may be necessary to reach Readiness

World Bank Assistance & Due Diligence

Phase FCPF Document

Assistance & Due Diligence WB Legal Agreement

Phase 1:Formulation Proposal

Readiness Plan Idea Note (R-PIN)

Review R-PIN, as a courtesy • Participation Agreement

• Grant Agreement

Readiness Preparation Proposal (R-PP)Readiness Plan (R-Plan)

• Assistance: - Comment on R-PP drafts- Contribute to R-PP text

• Due diligence: - FCPF-wide: Design and fine-tune

environmental and social due diligence framework (Safeguard Policies)

- Countries where grant would be allocated: Review consistency with framework

Selected countries: Grant Agreement

Phase 2:Preparing for Readiness

Readiness Package (R-Package)

• Assistance (in countries where grant is allocated): Comment on draft components of readiness; contribute to component design

• Due diligence (in countries where grant has been allocated): Review consistency with framework

• Phase 1 – Before Readiness Preparation Grant is signed:

– Conduct diagnostic work: initial analysis of environmental and social context

• E.g., assessment of land use, forest policy and governance in R-PP

– Present expected outcomes, opportunities and risks related to the program

• E.g., stakeholder analysis

– Conduct initial consultations with representatives of key stakeholder groups in a transparent manner

• Information exchanges ≠ Consultations

• Community level consultations are not required at this stage

– Finalize Terms of Reference for Phase 2, which would have been consulted upon

Phase 1

A Framework for Environmental and Social Due Diligence:

Candidate Approach: Strategic Environmental and Social Assessment (SESA)

• Phase 2 – While the R-Package is being prepared: execute the ToR prepared in Phase 1

– Continue and complete the diagnostic work required, including a more structured and detailed stakeholder analysis

– Conduct transparent consultations involving representatives of key stakeholders and interest groups (including indigenous peoples and forest dwellers, based on the principle of free, prior and informed consultation, seeking to build broad community support among concerned groups)

– Finalize environmental and social management frameworks

• These frameworks incorporate procedures for ongoing consultations with concerned stakeholder groups; capacity building measures as needed; and procedures for project specific environmental and social impact assessments and action plans

A Framework for Environmental and Social Due Diligence:

Candidate Approach: Strategic Environmental and Social Assessment (SESA)

• We are pioneering and learning together

• If approach is adopted, would it affect first 3 R-Plans? If so, how?

• Other next steps:

– More detailed discussion at October meeting

– Learn and adjust if necessary

– In the meantime, World Bank ready to provide clarifications and help countries design their national framework as they prepare and implement their Terms of Reference

– Training on SESA and its application to REDD readiness as part of workshops on R-PPs

Further Thoughts on

Environmental and Social Due Diligence Framework