GEF Strategy for Sustainable Forest Management Projects

NB: Samoa is proposing a Sustainable Forest Management Project under G-PAS funding for 2008 because the rainforests of Samoa remain under threat of:
1. Climate Change
2. Agricultural Expansion
3. Logging
4. Invasive Species
5. Bushfires
6. Volcanoes and
7. Human encroachment

However, today, as the cost of living escalates in the rural villages, villagers are tempted to cash-in on their forest resources in a non-sustainable manner. Therefore, the design of this project is to help create and stimulate the rural economic environment by creating new businesses, possibly even micro-enterprises which are funded by microfinancing institutions like South Pacific Business Development (SPBD).

Without sufficient income for all families in the rural villages, forest destruction will continue unabated. This project hopes to reverse this trend.

Finally, we would like to take a novel approach by packaging our rainforest conservation efforts with a microfinancing programme, something that was implemented successfully in Tamilnadu State in India with villagers agreeing not to graze their cattle inside the forests and cease making charcoal non-sustainably. The microfinancing provided efficient wood-burning stoves as well as allowed farmers to upgrade the quality of their dairy cows, increasing their profitability.

In addition, Samoa plans to harmonize this forest conservation project with an agroforestry project, offering further economic incentives to villagers.

Wish us luck.




PROGRAMME FRAMEWORK FOR PROJECTS FALLING UNDER THE GEF STRATEGY FOR SUSTAINABLE FOREST MANAGEMENT


1. UNDERSTANDING SUSTAINABLE FOREST MANAGEMENT

Sustainable forest management (SFM), as a dynamic and evolving concept, aims to maintain and enhance the economic, social and environmental values of all types of forests, for the benefit of present and future generations.[1] SFM is a broad concept, referring to the conservation and appropriate use of forests and trees to sustain livelihoods, including; conservation of biological diversity; prevention, control and reversal of land degradation; using trees and forest cover to combat desertification and mitigate or adapt to climate change; and the sustainable production of wood and non-wood forest products and services.

2. PURPOSE

The purpose of this programme framework is to identify priority areas for GEF investment in sustainable forest management (SFM) that are consistent with the GEF mandate to generate global environmental benefits and are in alignment with the strategic programmes already identified in biodiversity, climate change and land degradation. It aims to identify where progress towards SFM would make the greatest contribution to achieving the objectives in these three focal areas. Given the emphasis placed on having country-driven projects in the GEF, it presents activities that are more indicative than prescriptive and should be used as a guide for countries and agencies in their project development and submission to the GEF.

The projects falling under this strategy will contribute to implementation of the forest-related commitments and programmes of work of the Convention on Biological Diversity (CBD), the UN Framework Convention on Climate Change (UNFCCC) and the UN Convention to Combat Desertification (UNCCD). They will also contribute to implementation of the non-legally binding instrument on all types of forests adopted by UNFF, which presents a range of national and international actions that should be taken to support SFM. The projects will, in particular, support achievement of the global biodiversity target 2010 set by CBD and the global objectives on forests set by UNFF. These objectives, also welcomed by CBD, include reversing the loss of forest cover; enhancing forest-based economic, social and environmental benefits; and increasing the area of protected forests and other areas of sustainably managed forests, as well as the proportion of forest products coming from sustainably managed forests.

3. BENEFITS OF THE PROGRAMMATIC APPROACH

To gain additional benefits from the consolidation of GEF forest-related activities into one coherent programme, countries and agencies should consider opportunities to submit projects that cover one or more focal areas (biodiversity, climate change and land degradation), use integrated approaches and build upon existing structures, networks and partnerships working to support SFM. In particular, for activities on the sustainable management and use of forest resources, projects should promote approaches that are multi-sectoral, ecosystem-based and consider forests within the wider production landscape.

3.1 Multi-sectoral approach

Efforts to promote SFM, sustainable land management, conservation of biological diversity and climate change mitigation and adaptation must be coherent and complementary. In addition, as many of the underlying causes of forest degradation and deforestation occur outside the sector, problems in the forestry sector can not be addressed in isolation. Therefore, implementation of the SFM strategy will be enhanced if countries consider which other sectors may or may not have an impact on GEF activities and act accordingly in their project design. In particular, consideration of sectors such as agriculture, livestock, transport, industry and energy are likely to be most relevant in terms of project impacts and sustainability. Furthermore, many of the activities in support of the sustainable management and use of forest resources could be greatly enhanced with strong private-sector participation from the forest industry and others.

3.2 Emphasis on the whole landscape

Many landscapes are potentially valuable for both conservation and production, but the majority are used for production with only limited protection of soil, water and ecosystem functions. Sometimes this current mix of uses is a result of tradition but, more often than not, it is in response to the evolving policy and regulatory framework governing land use. All projects should consider basic actions that will overcome any biases against conserving and producing global environmental benefits alongside the need to support local livelihoods.

Another important consideration is the potential for projects to involve local people in the production of global environmental benefits while supporting their livelihoods. Projects that complement GEF interventions with national commitments and investments in activities that are visible at the local level and directly involve local citizens are more likely to be sustainable in the long-run and should deliver additional valuable benefits in terms of poverty alleviation. Thus, strong national leadership in project design, execution and monitoring; domestic public and private sector investment; benefits delivered in rural landscapes; and involvement and engagement of civil society in project execution should be emphasised in projects.
3.3 Building on existing structures networks and partnerships

For efficient and effective implementation of this programme, projects should build on and use existing structures, mechanisms, and networks, such as: national forest programmes; national and global forest assessments; biodiversity strategies and action plans; national, regional and sub-regional action programmes under the UNCCD; and National Adaptation Programmes for Action, etc. This programme will support the integration and implementation of the provisions of environmental conventions within these existing structures and networking between countries tackling similar issues to encourage learning and exchange.

At the international level, linkages and collaboration should also be sought with established partnerships, such as: the Collaborative Partnership on Forests; the National Forest Programme Facility; and the Global Forest Alliance (PROFOR), as well as with other GEF-supported programmes (such as the Small Grant Programme, the Public-Private Partnership Fund and the Strategic Investment Programme for Sustainable Land Management in Sub-Saharan Africa) and the projects and programmes of all major international agencies working in the forestry sector. Implementation of the programme should also follow the principles outlined in the Paris Declaration on Aid Effectiveness.[2]

4. GEF ENGAGEMENT IN SUSTAINABLE FOREST MANAGEMENT

The GEF framework strategy for SFM establishes strategic objectives, expected outcomes and identifies their linkages to specific focal area programmes (see Table 1). It also presents a number of operational considerations that should be taken into account in projects, suggests various activities that could be undertaken and presents performance indicators for each programme. The framework strategy (GEF/C.31/10) should be read in conjunction with this paper for further details on some of these operational considerations. This paper presents - in more detail - the objectives, priorities, activities, expected outcomes and indicators that will be supported by the GEF in each strategic programme.

Table 1. Objectives for GEF investments in sustainable forest management.

Goal of GEF support to sustainable forest management:
Sustainable management of forests to achieve global benefits
Strategic objective and expected impact
Supported through existing focal area strategic programme
Supported through new strategic programme
SO-1: Conservation and sustainable use of forest biodiversity

Forest biodiversity conserved and sustainably used in protected area systems
Biodiversity: “Sustainable financing for protected area systems at the national level”

Biodiversity/Climate Change/Land Degradation: “Management of LULUCF as a means to protect carbon stocks and reduce greenhouse gas emissions”
Biodiversity: “Strengthening terrestrial protected area networks”
SO-2: Sustainable management and use of forest resources

Production forests sustainably managed
Biodiversity: “Strengthening the policy and regulatory framework for mainstreaming biodiversity”
Biodiversity/Climate Change/Land Degradation: “Promoting sustainable energy production from biomass”
Biodiversity “Prevention, control and management of invasive alien species”
Biodiversity: “Fostering markets for biodiversity goods and services”
Land Degradation: “Sustainable forest management in production landscapes”
Climate Change: “Promoting sustainable energy production from biomass”
Source: GEF/C.31/10 (11 May 2007).

5. CONSERVATION OF GLOBALLY-SIGNIFICANT FOREST BIODIVERSITY

5.1 Sustainable financing for protected area systems at the national level[3]

Objective: The objective of this programme will be to support the development of sustainable financing for protected area management. This will contribute to the GEF biodiversity objective to catalyse the sustainability of protected area systems.

Focus: The lack of funding to support protected area management activities is generally well recognised (WCMC, 1999; Bruner et al, 2003) and this has led to great interest in the development of innovative financing mechanisms. Mechanisms to finance protected areas are many and varied, including traditional mechanisms (such as: national budget allocations; entry fees; and user fees) and more recent innovative arrangements (such as: ecological taxes; conservation or forest trust funds; payments for environmental services (PES); debt-for-nature swaps; and public-private partnerships).

GEF-supported interventions must respond to specific country situations, but they should also reflect the capacity and potential within countries to produce multi ecosystem service benefits (e.g. from carbon, water, biodiversity, etc.) and to raise revenue from these new and innovative sources. Where countries have significant potential to raise new sources of finance, the development of sustainable financing arrangements in forest protected areas would seem most feasible. It is envisaged that this will be most likely in countries where forests account for a significant proportion of protected area systems, but consideration will also be given to supporting countries where forest ecosystems have significant potential to generate new revenue because of their notable conservation value.

Types of projects: Projects to be implemented under this programme are likely to focus mostly on technical assistance and capacity building. Activities should draw upon accepted good practice developed by GEF and others[4] and could include: the development of appropriate forestry policies and legislation to support sustainable financing of forest protected areas; development of business plans for forest protected areas; and building capacity in forestry institutions responsible for managing protected areas so that future management is based upon sound business planning as well as conservation biology principles.

Activities in individual sites may be funded through this strategic programme, but only if they demonstrate replicable innovations in revenue generation that can be applied more broadly across other forest protected areas.

Outcome and indicators: The expected outcome of this programme is that revenue generation in forest protected areas will diversify and increase towards the level that is required to meet management objectives. Indicators will include the total amount of funding received for forest protected area management and the degree of diversification in revenue streams achieved for this purpose.

5.2 Strengthening terrestrial protected area networks

Objective: The objective of this programme in SFM will be to increase the area of under-represented forest ecosystems. This will contribute to the GEF biodiversity objective to catalyse the sustainability of protected area systems.

Focus: While forests are already quite well represented in protected area networks at the continental scale (see Table 2), there are numerous GEF recipient countries where little or no forest is formally protected or where forests are absent from protected area systems. For example, analysis of statistics on forest cover and protected areas suggests that about 89 countries have less than 10 percent of their forests in protected areas (FAO, 2000). In many of these cases, further expansion of protected forest areas would help to achieve the CBD’s target that at least 10% of each of the world's ecological regions are effectively conserved.[5]

Unfortunately, information about specific forest types in protected areas is not readily available, so there may also be a number of countries that have generally quite high levels of forest protection, but still have significant and ecologically important forest types missing or under-represented in their protected area systems. In addition, the importance of regional and national biological corridors to counteract fragmentation may have been overlooked in protected area systems in some places.

Table 2. Representation of forests in protected areas in GEF recipient countries

Region
Forest cover
Protected area coverage
Average annual deforestation
All land
Protected areas
All land
Forest
2005
2000
2005
2000
2000-05
(percent)
(percent)
(percent)
(percent)
(percent)
Africa
21
32
12
8
-0.6
Asia
19
16
9
10
0.2
Oceania
63
100
8
5
-0.5
Europe
45
22
3
7
0.0
Central America
34
26
10
13
-0.5
South America
46
76
20
12
-0.5
World
30
36
11
9
-0.3
Source: FAO (2000 and 2006); UNEP-WCMC (2007). Note: Central America includes Mexico and the Caribbean. The figures for deforestation include all types of forest, so losses of natural forest (e.g. in Asia) are likely to be higher than the figures shown here.

This programme will focus on countries that have a generally low proportion of forests (less than 10 percent) in protected areas and countries with under-representation of specific, ecologically important forest types. In addition, added emphasis may be given to those countries where current reductions in the area of natural forest are relatively high.

Types of projects: Projects to be implemented under this programme will be largely oriented towards technical assistance and capacity building (e.g. review of national legislation to ensure it supports improved and participatory decision-making on the establishment of protected areas, as well as their effective management), with possibly some small amounts of investment (e.g. in protected area infrastructure). Support may also be given to develop landscape-wide protected area network planning, in order to counteract deforestation, forest degradation and forest fragmentation and to strengthen forest ecosystems in and around protected areas. However, to ensure the sustainability of the protected area system, projects will need to demonstrate that domestic resources are also allocated to any new protected area at a level that is equal to that found throughout the protected area system.

Outcome and indicators: The expected outcome of this programme is improved coverage of under-represented forest ecosystems in national protected area systems and improved management of those new areas. Indicators will include statistics on area of forests in protected areas and management effectiveness as measured by individual protected area scorecards.[6] It is expected that country projects submitted for financing will indicate clearly the current protected area coverage of a target forest ecosystem and the objective that the project will achieve.

6. SUSTAINABLE MANAGEMENT AND USE OF FOREST RESOURCES

6.1 Strengthening the policy and regulatory framework for mainstreaming biodiversity

Objective: The objective of this programme in SFM will be to develop capacity and support the establishment and effective implementation of policies, laws and regulations that integrate the sustainable use and conservation of biodiversity into management of forests used for production. This will contribute to the GEF biodiversity objective to mainstream biodiversity into production landscapes.

Focus: Only slightly more than half of all GEF recipient countries currently make specific reference to biodiversity conservation in their forest legislation (see Table 3) and recognition of biodiversity conservation objectives in operational policies, procedures and manuals (regulatory frameworks) is even lower. However, many countries have recently revised their forestry policies and legislation (or are in the process of doing so) to reflect their intentions to manage forests sustainably. As part of this, biodiversity conservation objectives (and environmental functions of forests more generally) are starting to appear more prominently in policy statements and relevant legislation.

Table 3. Number of GEF recipient countries where biodiversity conservation is included or mentioned in forest laws

Region
Countries where forest laws and regulations mention biodiversity conservation
Number of forest laws and regulations mentioning biodiversity conservation
(number)
(percent)
(number)
Africa (53 countries)
20
38
36
Asia (35 countries)
24
69
117
Oceania (14 countries)
2
14
3
Europe (17 countries)
12
71
44
Central America (21 countries)
16
76
65
South America (12 countries)
11
92
102
World (152 countries)
85
56
367
Source: FAO (2007). Note: Central America includes Mexico and the Caribbean.

Despite this progress, the capacity of many forestry administrations to develop and implement procedures to mainstream biodiversity conservation into their activities remains quite limited. For example, information about the value of biodiversity is lacking at the country level and additional background work on this is needed to provide incentives for public and private actors to press for policy and regulatory reform.

This programme will concentrate on strengthening country capacity to mainstream biodiversity conservation objectives into public oversight of forest management and harvesting activities. Emphasis will be given to those countries that have high forest cover and a high proportion of natural forest with a focus on solidly embedding biodiversity conservation into the regulatory framework.

Types of projects: Projects to be implemented under this programme are likely to focus mostly on technical assistance and capacity building, especially in the areas of policy and legal reform. They could include, for example, the development of regulatory frameworks to promote biodiversity conservation in production activities and measures to strengthen private-sector compliance with such regulations. In recognition of the growing importance of small-scale producers in forestry, these activities could be implemented at the national level or in local pilot projects to mainstream biodiversity conservation into decentralised and traditional governance structures.

Outcome and indicators: The expected outcome of this programme is that policy and regulatory frameworks governing the forestry sector will be modified to incorporate measures supporting the conservation and sustainable use of forest biodiversity. The indicator for this outcome will be the degree to which forestry polices and regulations include measures to conserve biodiversity (as measured by GEF tracking tools).

6.2 Prevention, control and management of invasive alien species

Objective: The objective of this programme will be to halt or reverse ecosystem degradation and reductions in biodiversity due to the spread of invasive alien species. This will contribute to the GEF biodiversity objective to safeguard biodiversity.

Focus: The spread of invasive alien species has been identified as a major direct driver of change in biodiversity and ecosystems, particularly in island ecosystems. In forests, the extent of the problem is significant and increasing, in particular due to climate change.

Most GEF recipient countries have specific legislation, policies or procedures to control pests, which include invasive alien species that affect forests. However, the forestry sector in most GEF countries are unaware of this legislation, which can be used equally to control forest pests. For example, Table 4 shows the number of countries that have forest laws and regulations that are at least partly relevant to this issue. Only 17 percent of countries have some of these measures specific to forestry in place and the number that have measures specifically to control forest invasive alien species is likely to be much lower than this. As noted above, this is particularly a concern in small island states where measures are currently almost non-existent.

Table 4. Number of GEF recipient countries that have specific forest laws and regulations relevant to control of invasive alien species (not including general plant protection laws)

Region
Countries with some forest laws and regulations relevant to control of invasive alien species
Number of relevant forest laws and regulations
(number)
(percent)
(number)
Africa (53 countries)
2
4
2
Asia (35 countries)
3
9
5
Oceania (14 countries)
1
7
1
Europe (17 countries)
5
29
15
Central America (21 countries)
8
38
26
South America (12 countries)
7
58
35
World (152 countries)
26
17
84
Source: FAO (2007). Note: Central America includes Mexico and the Caribbean.

The focus of this programme will be in countries where invasive alien species are a high threat to biodiversity and current capacity to address this problem is weak. It will also focus on countries where forests account for a major share of native biodiversity and invasive alien species pose a threat to that forest biodiversity.[7] However, interventions will require a holistic, cross-sectoral approach, so interventions must not focus solely on the problem of invasive alien species in forests.

Careful attention should be given to strengthening country capacity and development of national infrastructure to meet their commitments under the Biodiversity Convention and agreements such as the International Plant Protection Convention (IPPC), as this will influence their ability to manage and prevent the spread of invasive alien species as well as trade in forest and other biological products.

Types of projects: Projects to be implemented under this programme are likely to focus mostly on technical assistance, risk assessment and capacity building. Activities could include the following: strengthening national policies and legislation; improving information and communication about invasive alien species (e.g. information networks); developing and implementing appropriate risk analysis procedures and early detection and rapid response procedures; and managing alien species invasions. In addition, in order to comprehensively manage invasive alien species, activities in the forestry sector must be co-ordinated and co-operate with other relevant national institutions, such as departments of environment and agriculture (plant protection).

Outcome and indicators: The expected outcome of this programme is that a greater number of countries will have management frameworks that prevent and mitigate the impact of invasive alien species on biodiversity and ecosystem services. The indicators for this outcome will be the extent to which policies, legislation, procedures and other mechanisms are put in place to control invasive alien species (for more details, see: GEF/C.31/10 (11 May 2007), p 22) and statistics about the detection of new invasive species and spread of existing ones in countries.

6.3 Fostering markets for biodiversity goods and services

Objective: The objective of this programme in SFM will be to develop cost-effective market-based instruments to provide financial incentives for biodiversity conservation in forests used for production. This will contribute to the GEF biodiversity objective to mainstream biodiversity into production landscapes.

Focus: In general, two types of market-based instruments can be used to support biodiversity conservation in production forests. The first is PES schemes, where affected parties pay forest managers for the environmental benefits that are provided by good forest management (including, for example: biodiversity; watershed protection; carbon storage; and maintenance of landscape or amenity benefits). The second type of instrument is certification schemes, where purchasers of products pay a premium above average market prices to producers that guarantee that their products have been produced in a certain way (e.g. in a way that produces additional environmental and social benefits).

For PES development, the factors likely to influence the feasibility and success of implementation are similar to those mentioned above (for development of PES in forest protected areas), except that the total forest cover in a country is a more relevant indicator of the potential to introduce PES schemes outside forest protected areas. For certification, a major driving force is likely to be the proportion of forest products that are exported.

This programme will focus on countries that have high potential for the development of PES schemes in forestry and/or for the development of certification schemes. Noting that several national and international forest certification schemes already exist, interventions in the latter area could focus on the development of certification in countries where this is not currently taking place or building capacity in countries to increase the area of forests certified under existing schemes.

Types of projects: Projects to be implemented under this programme will focus on technical assistance and capacity building, with limited investments in knowledge management and information services. Activities may include the review of national legislation to ensure it supports the development and functioning of PES schemes in forestry and/or of certification schemes. GEF will not directly support the sustainable baseline costs of sustainable forest management, logging activities or the costs of achieving forest certification (see: GEF/C.31/10 (11 May 2007), pp 82-83). However, GEF will support: the development of national standards; increasing country capacity to extend coverage of forest certification schemes (including the capacity of the private-sector and communities); ecological analysis of existing forest certification; incorporation of additional ecosystem services under forest certification; training and market information services; strengthening certified supply chain management and traceability systems; and facilitating access to finance for producers working towards certification.

Outcome and indicators: The expected outcome of this programme is the creation of new markets for environmental services from forests and incorporation in forest certification standards of technically rigorous biodiversity standards. The indicators are the increased revenues generated by these markets, the number of hectares of forest benefiting from this financing mechanism and the number of published certification systems incorporating technically rigorous biodiversity standards.

6.4 Sustainable forest management in production landscapes

Objective: The objective of this programme will be to strengthen SFM in production landscapes where this would make a significant contribution to achieving sustainable land management. This will contribute to both of the GEF strategic objectives for land degradation.

Focus: Analysis by GEF has already indicated the locations where interventions to halt or reverse forest degradation are likely to make the biggest contribution to reducing land degradation and, in addition, may contribute to biodiversity and climate change objectives. Regional priorities that have been identified are the margins and buffer zones of the Congo and Amazon Basins, South-East Asia, Central American dry and montane forests and the South American Chaco and Atlantic forests. In addition, the following types of forest are also prioritised: savanna, cerrado and miombo ecosystems, forest fragments and humid forest margins.[8]

The underlying causes of forest and land degradation are many and varied. Ultimately, this is usually driven by a combination of natural factors and poverty, particularly in locations where other factors (e.g. policies, institutions, land tenure arrangements) do not support sustainable land use. The most visible causes of forest degradation in such areas are often fire, the unsustainable harvesting of forest products (e.g. woodfuel) and the expansion of agricultural activities into forest areas. Thus, the greatest benefits under this programme are expected to come from interventions that address these issues within the context of the overall mosaic of forests and other land uses, particularly in locations where the forests and/or land are fragile.

The focus of this programme will be countries in the regions or containing the forest types noted above with, where appropriate, an emphasis on locations where deforestation and forest degradation are relatively high. Furthermore, given the need for an holistic, landscape approach to combating forest and land degradation, preference will be given to projects that embrace broad, cross-sectoral approaches to solving this problem and include the active participation of the private-sector and local communities.

Types of projects: Projects to be implemented under this programme are likely to include a mixture of investment, technical assistance, capacity building and small amounts of research. Projects may support: strengthening policies, legislation and institutions so that forests are better integrated into wider land management at the landscape level (e.g. strengthening land-use planning and monitoring of forest and tree resources); developing and implementing strategies to avoid the degradation of forest margins and forest fragments (e.g. through forest rehabilitation); activities to combat unsustainable harvesting of forest products and conversion of forests to other unsustainable uses; and projects that replicate successful SFM practices in the wider landscape to restore the integrity of forest ecosystems.

Outcome and indicators: The expected outcomes of this programme are reduced land degradation and an increase in multiple benefits from ecosystem services through improved forest management in humid forest margins, forest fragments and semi-arid and sub-humid ecosystems. The indicators for this outcome will be measures of improvements in the enabling environment in support of this outcome and physical measures of achievement such as the increase in the area of forests where better management practices are applied (for more details, see: GEF/C.31/10 (11 May 2007), p 89).

6.5 Promoting sustainable energy production from biomass[9]

Objective: The objective of this programme will be to promote the adoption of modern and verifiably sustainable practices of energy production from forest resources. This will contribute to a number of GEF climate change objectives to promote renewable energy and increase energy efficiency.

Focus: Forests and the wood processing industry have potential to produce renewable energy and contribute to reductions in carbon emissions through the utilisation of harvesting and processing wastes as well as the planting, management and harvesting of trees specifically for use in modern renewable energy facilities. In addition, improvements in existing conversion and utilisation technologies can increase the efficiency of biomass energy use, thus contributing to reductions in emissions per unit of energy produced and reducing pressure on forests. However, current standards verifying the sustainability of biomass production are inadequately developed.

GEF will support the development of methodologies and criteria to ensure that biomass energy is produced sustainably (see section 7.2). Until this is completed, this programme will continue to focus mainly on increasing production of energy from wood waste and from improvements in woodfuel conversion and utilisation technologies.

Countries with high potential to increase the sustainable use of woodfuel are likely to include those where large wood processing industries produce high volumes of wood residues and there are few markets for these waste materials. In addition, the existing level of woodfuel use is another indicator of where such projects may be feasible and where projects to improve conversion and utilisation technologies may also be most beneficial.

In the near-term, projects under this programme will focus on countries with high levels of woodfuel use and high volumes of available wood residues. In the longer-term (once sustainability criteria are available), projects may, in addition, focus on countries where significant areas of land are available for the production of energy crops and where woodfuel production can be sustainably increased from existing trees and forests without harmful impacts.

Types of projects: Projects to be implemented under this programme will be largely oriented towards investment, with some technical assistance (e.g. reviewing relevant legislation) and some targeted research in the fields of knowledge generation and management. Projects will support the use of woodfuel for the production of electricity and heat in modern efficient technologies[10] and, in a small number of cases, may support research to examine the suitability and sustainability of biofuel production from wood. It also is expected that most projects will include the active participation of private-sector energy producers and/or consumers. As already noted, GEF will only support projects that ensure that biomass energy use is sustainable and does not contribute to deforestation, reduced soil fertility, or increased greenhouse gas emissions beyond project boundaries.

Outcome and indicators: The expected outcome of this programme is reduced emissions of greenhouse gases though increased use of modern and sustainable practices and technologies for the production, conversion and utilisation of woodfuel. The indicators for this outcome will be the additional amount of renewable energy produced by projects and the amount of emissions avoided, including beyond the project boundaries.

7. CROSS-CUTTING PROGRAMMES

In support of the new strategy on sustainable forest management, GEF will support two cross-cutting programmes. The first will be to promote forest conservation as a means to protect carbon stocks and avoid CO2 emissions. This will comprise the development of a methodology to assess carbon benefits in all GEF natural resource activities and, in specific circumstances, the implementation of measures in support of reducing emissions from land-use, land-use change and forestry (LULUCF). The second programme will be to develop sustainability criteria for sustainable biomass production.

7.1 Management of LULUCF as a means to protect carbon stocks and reduce greenhouse gas emissions [11]

Assessment of the carbon benefits from GEF natural resource activities

Background: Since its inception, the GEF has financed many projects dealing with the management of natural resources. Many of these projects have reported benefits in terms of protection and/or increases in carbon stocks and the reduction of carbon emissions from land-use activities and/or land cover changes. However, a study conducted by the GEF Evaluation Office concluded that in many projects:

- carbon benefits (above or below ground) were not clearly identified and measured;

- monitoring carbon benefits was an exercise to satisfy the GEF and not integrated into projects; and

- methodologies for measuring carbon benefits in natural resource projects were not comparable.

As long as there is no reliable and comparable methodology for measuring or estimating carbon benefits in GEF natural resource projects, the claim of carbon as a global environmental benefit from such projects remains weak.

Objective: The objective of this work will be to develop a methodology that will allow the GEF to measure and/or estimate their carbon benefits in a reliable, standardised and comparable way in all their natural resource activities. This activity is placed under the forest strategy, although the results of this work should be applicable to the full range of GEF activities in natural resources (i.e. forests, land and water) and cover all carbon sinks and sources.

Activities: This work will include developing a methodology to measure and/or estimate changes in carbon as a result of GEF interventions and pilot-testing this methodology in a few sites (to include forests, other land and water resources). Specifically, the methodology should:

- be applicable for all above and below ground carbon and be able to measure/estimate carbon stocks and flows at any time throughout a project;

- be applicable to all climate zones and land use/cover types and be readily applicable to all GEF projects dealing with natural resources (biodiversity, climate change, land degradation and international waters),

- be relatively simple, easy to use and cost-effective (i.e. feasible), but scientifically robust;

- pay special attention to the issues of additionality, leakage and permanence;

- be successfully tested in all climate zones and land use/cover types; and

- be a flexible tool that enables countries to examine the impact of policies and projects on carbon benefits (e.g. to identify trade-offs or develop scenarios) and can be used for a variety of tasks in addition to GEF activities (e.g. engaging in the emerging carbon markets and assessing LULUCF activities).

These activities will be implemented as a global programme. However, countries may also wish to collaborate in the programme using their climate change GEF resource allocations (e.g. in activities related the last bullet point above).

Output: The output of this component will include guidelines for measurement and estimation of carbon benefits in individual projects and a tracking tool/protocol to be applied in all GEF projects dealing with natural resources that will allow aggregation of carbon benefits by various variables (e.g. climate zone, land use type, land cover, country, GEF focal area, GEF investment, etc.). This will include a standardised database that individual GEF projects will use to store and present these statistics. An indicative timeframe is that this work should be completed by 2009.

In addition, for countries participating in these activities, the output will be improved institutional and technical capacity to monitor and measure emissions from, and sequestration in, the LULUCF sector.

Implementation of measures in support of reducing emissions from LULUCF

Background: Reducing emissions from LULUCF can provide a relatively cost-effective way of offsetting emissions, either by increasing the removals of greenhouse gases from the atmosphere (e.g. by planting trees or managing forests), or by reducing emissions (e.g. by curbing deforestation). However, there are drawbacks as it may often be difficult to estimate greenhouse gas removals and emissions resulting from activities of LULUCF. In addition, greenhouse gases may be unintentionally released into the atmosphere if a sink is damaged or destroyed through a forest fire or disease.

Objective: The objective of this part of the programme will be to assist countries to prepare and implement national measures to reduce emissions from LULUCF.

Activities: This could include the following activities:

- technical assistance for policy formulation and capacity building to develop measures to reduce emissions from LULUCF;

- developing and testing policies and regulations to slow the drivers of undesirable land-use changes;

- work with resource managers (including local communities) to develop alternative livelihoods and improved natural resource management techniques that would reduce emissions and/or sequester carbon in LULUCF activities.

GEF-supported interventions in this area will be country-driven (and will be supported from countries’ climate change GEF resource allocations), but they should also reflect the capacity and potential within countries to produce significant climate change benefits from LULUCF activities. Specifically, small-scale pilot investments (e.g. in the third activity listed above) will only be considered in a limited number of cases, where information and knowledge about drivers of land-use change are sufficiently well-understood and adequate policies and regulations in support of LULUCF activities are already in place. Furthermore, such investments will be required to utilise the methodology developed in the first part of this programme.

Output: The output of this component will be the number of countries adopting policies and regulations to support greenhouse gas emission reductions through improved LULUCF practices and tons CO2 avoided through small-scale pilot investments in LULUCF activities.

7.2 Sustainability criteria for sustainable biomass production

Background: Most GEF support to biomass energy production is currently focused on the utilisation of biomass wastes and residues and increasing efficiency of existing conversion and utilisation technologies. In the near future, it is expected that support will be given to biomass projects that use biomass planted for dedicated energy purposes and biomass not currently used for other purposes. In addition, as the conversion of cellulose biomass to liquid fuels becomes more feasible (in technical and economic terms), GEF support to these new approaches is expected to grow.

Sustainability criteria concern both the biofuel production from agro- as well as forest biomass and wastes. Promotion of agro-fuel production, e.g. in oil palm plantations, can have a direct relation to sustainable forestry, through land conversions, peat swamp drainage, etc.

It will therefore be essential to develop appropriate sustainability criteria to ensure that biomass energy projects do not have a negative impact on the objectives of the GEF in other focal areas and that the biomass production itself is environmentally sustainable. A further benefit of this work would be the contribution it would make to the development of certification standards for bioenergy production.

Objective: The objective of this work will be to develop sustainability criteria that will be used by the GEF in all future biomass energy projects.

Activities: The SFM programme will link with other international initiatives developing sustainability indicators, criteria and/or safeguards for sustainable biomass production[12] Currently, the most prominent international report on biomass energy is “Sustainable bioenergy: a framework for decision makers” (UN, 2007). This report presents a comprehensive framework of issues that should be considered in the development of biomass energy policies and projects, although each issue is not explored in great detail.

Using this report as a starting point, this work will select and prioritise the issues that are most relevant to the development of sustainability criteria for GEF biomass energy projects. It will then develop a more detailed and specific set of operational activities, guidelines and procedures that will be used in future projects. Specifically, this work is likely to include the following activities:

- reviewing the existing literature on the sustainability of different types of biomass energy projects (e.g. from past GEF projects, projects and reports of other GEF agencies and the general policy and scientific literature on this issue);

- selection and prioritisation of issues for inclusion in the sustainability criteria and, in consultation with the GEF secretariat and other interested parties, development and refinement of these issues into a set of detailed, operational and action-orientated statements;

- consultation and peer review of the sustainability criteria by countries and appropriate technical bodies; and

- submission of a final set of sustainability criteria for approval by the GEF Council
Output: The output of this activity will be the final sustainability criteria adopted by the GEF. An indicative framework for this work is that it should be completed in time for submission to the GEF Council in late 2008.
[1] As adopted in the “Non-legally binding Instrument on All Types of Forests” (NLBI) at the seventh session of the United Nations Forum on Forests (UNFF), April 2007.
[2] For further details, see: http://www.oecd.org/dataoecd/11/41/34428351.pdf.

[3] Financial sustainability for protected area systems is defined and associated GEF activities to support it are articulated in GEF/C.31/10 para 13, page 12.

[4] For example: GEF Experience with Conservation Trust Funds (GEF Evaluation Report # 1-99).

[5] Decision VII/30 of the Conference of the Parties to the Convention on Biological Diversity.
[6] GEF/C.31/10 page 20, Table 2, enumerates precisely the indicators needed.
[7] In countries where invasive alien species are a major problem in general but forests are not a major part of the problem, they will be addressed under the more general Biodiversity Focal Area Strategy.
[8] Although these forest types do not cover all arid and semi-arid areas that are a focus of GEF land degradation activities, it should be noted that other locations are not mentioned here because they are already covered in several existing regional GEF projects.
[9] GEF/C.31/10 paragraph 22, page 86.

[10] Note that this does not preclude interventions to support the adoption of more efficient conversion and utilization technologies in rural and non-industrial settings.

[11] Note that this also appears in the framework strategy for climate change as: “Promoting reduction of greenhouse gas emissions from, and increasing carbon sequestration in, the land use, land use change, and forestry sector”.
[12] For example, The Global Bioenergy Partnership (GBEP), and the NGO-led sustainable biomass process hosted by the University of Lausanne (EPFL).