This document presents the current GCF approach to financing for forests, including alternative approaches, as mandated under decision GCF/B.32/10, Annex I, paragraph (e). In the context of the United Nations Framework Convention on Climate Change (UNFCCC), forest finance breaks down into two categories: reducing emissions from deforestation and forest degradation as well as the sustainable management of forests and the conservation and enhancement of forest carbon stocks (REDD+); and alternative approaches, such as joint mitigation and adaptation approaches for the integral and sustainable management of forests (JMA). Accordingly, this paper proposes an operational definition of GCF forest finance and analyses (i) GCF financial support for all three phases of REDD+ (readiness, implementation and results-based payments); and (ii) GCF financial support for JMA.
The analysis shows that out of GCF’s portfolio through the thirty-second meeting of the Board (B.32), GCF has approved a total of USD 2.73 billion in forest finance (including readiness). This amount includes USD 851.1 million for REDD+ activities and USD 1.73 billion that meet the requirements of JMA. Results also show that these approaches are not mutually exclusive: in fact, much of the financing for REDD+ phases I and II (REDD+ readiness and implementation) also qualify as JMA. The paper concludes on the advantages of building on the complementarities between the two approaches to shift forests towards low emission and climate resilient development pathways. A list of approved funding proposals is provided in annex I.