FOREST INVESTMENT PROGRAM Dedicated Grant Mechanism for Indigenous Peoples and Local Communities (DGM)

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Source: CIFOR FOREST INVESTMENT PROGRAM Dedicated Grant Mechanism for Indigenous Peoples and Local Communities (DGM) April 3, 2012 Andrea Kutter CIF Administrative Unit 1

Presentation Structure 1. Context leverage 3. public Design and Principles private sector Complementarily with partners 2. Development Process 4. Components and FIP Resources 5. Implementation Arrangements 6. Status 2 Module 1

Context Dedicated Grant Mechanism for Indigenous Peoples and Local Communities: 38. A dedicated grant mechanism should be established under the FIP to provide grants to indigenous Japan peoples and 1,200 local communities in country or regional pilots to support their participation in the development of the Norway FIP investment strategies, 175 programs and projects. At the implementation stage grants to indigenous peoples and local communities should be an integral component of each pilot. 3 Module 1

Development Process Complementarity participants. with partners April 2010: New York City, USA. Workshop at the UN Permanent Forum on Indigenous Issues to discuss the grant mechanism. November 2010: Accra, Ghana. Workshop for African pilot countries with 34 participants. January 2011: Vientiane, Lao PDR. Workshop for Asian pilot countries with 45 participants. February 2011: Lima, Peru. Workshop for pilot countries in Latin America with 38 February 2011: Sidney, Australia. Workshop for Pacific Island countries with17 participants. April 2011: Bangkok, Thailand. 1 st Global Workshop with 50 participants. May 2011: Washington DC, USA. 2 nd Global Workshop with 30 participants. 4 Module 1

DGM Design Principles Multilateral Use Development of good practices Banks and build on/enhance Japan existing mechanisms 1,200 Leverage other resources through Netherlands institutional synergies 79 Consistency with FIP Design Document Australia (including provision 129 of consistency with national laws); Clear link to FIP investment plan and its objectives; Country-specific approaches no blueprint Full and effective participation of indigenous peoples groups and local communities; On the ground activities and activities Switzerland supporting the 20 enhancement of the capacity of indigenous peoples and local communities to participate fully, United effectively States and continuously 2,000 in REDD+ activities in FIP pilot countries; 5 Module 1

Design Principles Multilateral Development in Country Banks A Indigenous Peoples Dedicated Grant Mechanism Local /traditional communities FIP Investment Plan for Pilot Country Investment Norway Investment Investment 175 Project Project Project Private Sector 6 Module 1 Other national partners

Components Brazil Democratic Republic Ghana Burkina Faso of Congo Indonesia Lao PDR Mexico Peru Dedicated Grant Mechanism Global Component 7 Module 1

Resources requested Component Percentage Australia US$ million 129 Canada Distribution 92 Burkina Faso 9% 4.5 Brazil 13% 6.5 DRC 12% Japan 6 1,200 Ghana 11% Netherlands 5.5 79 Indonesia 13% Norway 6.5 175 Lao PDR 9% Spain 4.5 117 Mexico 12% Sweden 6 86 Peru Switzerland 11% 5.5 20 Global United Kingdom 10% 5 1,319 TOTAL 50 8 Module 1

Implementation Arrangements Principles Ownership and joint decision-making Australia by indigenous 129 peoples and local communities Supported by Government Partnership and collaboration among MDBs lead MDB for each country and global program Transparency and accountability in decision-making processes Flexibility, efficiency and administrative clarity Lessons from country implementation captured and shared by the global component 9 Module 1

Implementation Arrangements Decentralized Approach Global component to provide guidance to country- components Each pilot country program to have a national executing agency that disburses Germany the funds to eligible 804 indigenous peoples and local communities A National Steering Committee for each country will be main decision making body Spain (government will 117 be involved) An MDB lead for the implementation in each country Global knowledge sharing and United networking States activities 2,000 through a global executing agency 10 Module 1

The Global Steering Committee and Pledges National to date Steering Committees will have Indigenous Peoples, Australia Local Communities, 129 MDBs and Government representation Role: Multilateral Leadership Development and oversight Banks Identification of eligible activities Decision-making rules and procedures in accordance with agreed approach for DGM Facilitate complaint and mediation mechanisms Ensures synergies with global/national United Kingdom REDD+ processes 1,319 and FIP investment plans Reporting Implementation Arrangements Collaborative Governance 11 Module 1

Status General Points: Four pilot countries have requested Denmark an initial 26 meeting to discuss more, incl. the implementing MDB and the potential use of existing mechanisms Global component (implemented Netherlands by the World 79 Bank) waiting for identification of 8 pilot country IP/LC/TC representatives (2 each) to form the interim steering committee By November 2012: at least 4 out of 8 country processes in preparation and global component 12 Module 1

. For more information, please visit: www.climateinvestmentfunds.org 13 Module 1