Forest Investment Program (FIP)
The Forest Investment Program (FIP) is funded by the Strategic Climate Fund (SCF), one of the two Climate Investment Funds (CIF). FIP is designed to increase investments to help countries reduce greenhouse gas emissions from deforestation and forest degradation (REDD), and promote improved sustainable management of forests, leading to emission reductions and the protection of carbon reservoirs. FIP is also a vehicle to build on experience and create new means for broad-scale sharing of knowledge on REDD.
With pledges equaling approximately USD 587 million, FIP is active in eight pilot countries worldwide, including three in Africa: Burkina Faso, Democratic Republic of Congo and Ghana.
The AfDB is supporting each of these African nations as they coordinate with their respective civil societies, private sectors and other development partners to develop their FIP investment strategies. Once approved, the AfDB will begin channeling FIP funds to specific projects along with co-financing form its own resources.
Land and forest degradation account for 60% of Burkina Faso’s GHG emissions. Its REDD+ potential calls for reducing deforestation and forest degradation, sustainably managing existing forests and agroforestry systems, and enhancing forest carbon stocks. This will contribute to a positive carbon balance while supporting rural livelihoods and protecting the considerable remaining biodiversity of the natural semi-arid forests in the southern part of the country.
The AfDB is helping Burkina Faso finalize its FIP Investment Plan. It is requesting USD 30 million to implement projects designed to promote decentralized, sustainable forest management that supports wider stakeholder participation and deeper appreciation of the forest value chain. The AfDB expects to channel about half of the FIP funds to Burkina Faso, along with its own co-financing, to support investments in national forests and nature parks and their administration.
Democratic Republic of Congo
The Democratic Republic of the Congo (DRC) was selected as a FIP pilot country due to its advanced stage in the ‘preparation for REDD+’ process, demonstrated by its being the first country in the Congo Basin with an approved Readiness Preparation Proposal (R-PP). The National REDD Coordination of DRC, with support from a number of technical and financial partners, has also prepared six guidance notes that will inform DRC’s FIP Investment Strategy: 1. Afforestation and reforestation, 2. Subsistence agriculture, 3. Land use planning, 4. Land and forest tenure, 5. Improved wood-fuel stoves, and 6. District-level integrated development.
Arresting deforestation and forest degradation is an important priority for Ghana. It is developing a comprehensive Low Carbon Growth Plan that will address climate change as a part of national and sectoral development strategy. This plan would put FIP/REDD+ activities into a wider national context. In addition, Ghana has a number of instruments and policy frameworks with potential to mainstream FIP investment into development activities. Examples include the Voluntary Partnership Agreement on Forest Law Enforcement, as well as the Governance and Trade and Community Forest Biodiversity Project. Ghana is particularly well placed to exchange lessons learned through the FIP process with neighboring countries, in particular Liberia.
- 31/03/2017 - African Development Bank approves USD 2.3 million to help advance Uganda’s decentralized renewables development program
- 07/03/2017 - African Development Bank and Forest Investment Program sign loan with Form Ghana Ltd to restore Ghana’s forests
- 07/03/2017 - Mali to receive US $25 million concessional loan to build utility-scale solar photovoltaic plant and transform the West African energy market
- 09/02/2017 - Adaptation Benefit Mechanism (ABM) workshop
- 13/01/2017 - Swedish firm wins AfDB contract to develop market-friendly Adaptation Benefit Mechanism for climate resilience