PALAGKARAYA, Indonesia (20 September, 2011)_A new independent climate fund which will support provincial and state efforts in the implementation of REDD+ programmes was launched today at the Governors Climate and Forest Task Force meeting in Central Kalimantan.
The Governors Climate & Forests Fund or GCF fund will provide states and provinces with the opportunity to access funds worth over $6 million to build innovative Reducing Emission from Deforestation and Degradation programmes (REDD+).
“The GCF Fund is the first facility in the world where public and private donors and investors can directly fund state and provincial REDD+ efforts in multiple countries” said Governor Teras Narang from the Central Kalimantan Province.
“Today the GCF are helping countries to develop new pathways to low emissions development while also advancing the priorities of local forest-dependent people”.
In August 2011, the U.S. Department of State became the GCF Fund’s seed funder, with a commitment of $1.5 million to support improvements in state-wide forest carbon stock assessments and enhanced stakeholder processes. The Fund is pursuing an additional $4.5 million to support ongoing and planned activities for 2012-2013 related to improving forest carbon accounting, model benefit sharing programs and supporting REDD+ implementation activities.
“For investment to flow, investors require some understanding of the risks and some semblance of confidence. The GCF helps provide this and is the sort of initiative needed to channel private investment to reduce deforestation and promote local economic development,” said Ricardo Bayon, Partner at EKO Asset Management Partners.
William Boyd, GCF Senior Advisor, noted “We see this as another example of the GCF leading the way in advancing not only innovative jurisdictional approaches to REDD+, but also in the area of climate finance.”
The GCF also announced today the creation of the GCF Knowledge Database that will provide the most comprehensive data available on jurisdictional REDD+ programs being developed in GCF states and provinces. This database will provide a key tool to monitor the progress of GCF states and provinces in developing their REDD+ programs and to facilitate cross-jurisdictional learning.
The GCF is a unique subnational collaboration between 15 states and provinces from the United States, Brazil, Indonesia, Nigeria, and Mexico that seeks to build REDD+ programs and link them with emerging market and non-market opportunities. More than 20% of the world’s tropical forests are in GCF states and provinces (including approximately 75% of Brazil’s and more than half of Indonesia’s tropical forests).