- ODA funding for REDD+ projects in the DRC has increased in size and diversity of donors between 2010-2021, with an average of $11.4 million committed and $8.11 million disbursed per year. However, the DRC's disbursement rate is lower than the global average.
- A new major donor is the Bezos Earth Fund (private development fund), which disbursed 100% of committed funds. Large institutions like development banks have low disbursement rates (<50%).
- There are currently 2 REDD+ projects in the DRC generating an estimated $31.6 million annually from trading carbon credits in the voluntary carbon market, compared to $8
Landscape of REDD+ Funding Disbursements in DRC and Updates on REDD+ projects
1. Landscape of REDD+ Funding
Disbursements in DRC
and Updates on REDD+ projects
Dr. Stibniati Atmadja, CIFOR-ICRAF
s.atmadja@cifor-icraf.org
17 October 2023
University of Kinshasa
2. Background
How has public and private funds
contributed to financing REDD+ in
DRC?
โข 1st SciPol Dialogue (Dec 2022)
โข Analyzing ODA until 2019
โข How much funds were
committed?
โข Who were the main donors
and channels?
โข How does DRC compare to
other countries?
โข General overview of REDD+
projects globally
3. Background
โข Now: 2nd SciPol Dialogue (Oct
2023)
โข Analyzing ODA until 2021
โข How much funds were
committed vs. disbursed?
โข How does DRC compare to
other countries?
โข Are actors linked to
disbursement rate?
โข General overview of REDD+
projects in DRC
โข Ongoing and new projects
OECD-CRS data
tagged for REDD+
activities using
keywords
ID-RECCO database
updated using
Verra registry
4. Finance from where?
Public
Private
This presentation: Developed country contributions: ODA transfers (โREDD+
Aidโ) and Voluntary Carbon Markets/VCM (โREDD+ Market)
There are others not included (e.g., domestic funds, regional funds)
Private
(since
2021)
5. REDD+ ODA Funding: Committed vs. Disbursed
Definition (OECD)
Commitme
nt
โcommitment is a firm obligation,
expressed in writing and backed by the
necessary funds, undertaken by an official
donor to provide specified assistance to a
recipient country or a multilateral
organizationโ
Disbursem
ent
โthe release of funds to or the purchase of
goods or services for a recipient; by
extension, the amount thus spent.
Disbursements record the actual
international transfer of financial
resources, or of goods or services valued
at the cost to the donor.โ
Expectation:
โข Commitments are Disbursed (100%
rate)
But
โข Commitments often are not
disbursed (<100% rate)
Why? Some possibilities
โข Donor conditions (procurement, co-
financing, aid-effectiveness),
โข Recipient capacity (programming,
fund absorption),
โข Both sidesโ bureaucratic and
technical delays [1]
[1] Savvidou, G. "Quantifying international public finance
for climate change adaptation in Africa." Climate
Policy 21.8 (2021): 1020-1036. (link)
7. REDD+ ODA Funding: Committed vs. Disbursed in DRC
UK
0%
Spain
0%
Canada
1%
France
3%
USA
4%
Korea
6%
Belgium
9%
Sweden
10%
Norway
15%
GEF
6%
CIF
22%
Arcus
Foundation
0,0%
Bezos Earth
Fund
19%
UNDP
5%
REDD+ ODA Fund (Committed)
2010-2021, USD 139m
UK
5%
Spain
0%
Canada
1%
France
0%
USA
3% Korea
0%
Belgium
12%
Sweden
14%
Norway
16%
GEF
0%
CIF
15%
Arcus Foundation
0,1%
Bezos Earth Fund
27%
UNDP
7%
REDD+ ODA Fund (Disbursed)
2010-2021, USD 97m
New major donor: Bezos Earth Fund
100% disbursed
9 donors = 95% commitments
(Vs 4 donors by 2019)
8. International
NGO
University,
college, etc
Donor country-
based NGO
UN
Agencies/funds/
commissions
Regional
Development
Bank
Public sector
institutions
WB Group
0%
20%
40%
60%
80%
100%
120%
0
5
10
15
20
25
30
35
40
%
Disbursed
USD
Million
(defl)
Funding channels
REDD+ Funds for DRC by Funding Channel
2010-2021
Commitment Disbursement % Dibursed
100%
REDD+ ODA Funding: Funding channels
โข Channel = first implementing
partner
โข Foreign CSOs have high
disbursement rates (Small,
nimble?)
โข โLargeโ institutions (e.g.,
development banks, public
sector institutions) = low
disbursement rates (<=50%)
โข Largest channel: UN Agencies <
DRC average disbursement
rates (65%)
โข There is no local NGO?
9. Summary
2010-2021
โข ODA funding in DRC increased in size and
diversity of donors
โข Ave. $11,4m/year committed, $8,11m/year
disbursed
โข DRC: Lower disbursement rate compared to
Global REDD+ funds
โข New major player: Bezos Earth Fund (Private
Development Fund), 100% disbursement
โข Large portion of DRC REDD+ funds are
channeled through foreign CSOs โ high
disbursement rates.
โข Lack of local CSOs as channel โ why?
โข Large portion of committed REDD+ funds go
through development banks โ low (<50%)
disbursement rates
โข Why?
10. Quick Update on REDD+ Projects in DRC
Evolution
โข 2014: 14 projects
โข 2020: 3 projects, certified
VCS/CCB and CDM, trading
credits on VCM
โข 2023: 4 additional in the
VCS pipeline
๏ 2 huge projects
๏ Increase the area in projects
from 491 thousand ha to 4,9
million (10x)
Name
Certification
status Area (Ha)
Est. Annual
Emission
Reductions
Isangi REDD+ project
Certified - VCS +
CCB
187,571 324,534
The Mai N'dombe REDD+
Project
Certified - VCS 299,640 5,671,613
Ibi-Bateke Certified - CDM 4,129 54,511
DRC REDD+ Carbon Credit
Harvesting Project
Under validation -
VCS
1,346,360 27,604,998
Kokolopori Bonobo Peace
Forest Grouped REDD ProjectUnder devโt - VCS 421,000 1,047,213
Tshopo Lomami Grouped
REDD Project
Under validation -
VCS
446,080 2,944,128
Sankuru Peace Forest
Grouped REDD Project
Under validation -
VCS 2,190,831
7,390,562
11. REDD+ Projects in DRC โ Trading from VCM
Name
Est. Annual
Emission
Reductions
Annual
ave. traded
in VCMa
Ratio
estimated
vs. Traded
Est. Traded
(ratio 0,53)
Isangi REDD+ project 324,534 173 953 1: 0.54 173 953
The Mai N'dombe
REDD+ Project 5,671,613
2 985 330 1: 0.53 2 985 330
Ibi-Bateke
54,511
ND
28 690
DRC REDD+ Carbon
Credit Harvesting
Project
27,604,998
n/a
14 528 946
Kokolopori Bonobo
Peace Forest Grouped
REDD Project 1,047,213
n/a
551 165
Tshopo Lomami
Grouped REDD Project 2,944,128
n/a
1 549 541
Sankuru Peace Forest
Grouped REDD Project 7,390,562
n/a
3 889 769
2 projects trading
currently
โข ave. 3,16
mtCO2e/yr
โข Assume $10/tCO2e
= $31,6
million/year
โข 1 traded from 1,9
estimated ER
โข Projected:
$230,7million/year
aSource: https://registry.verra.org/app/search/VCS/VCUs
12. Summary
โข The 2 REDD+ projects currently trading in the
VCM generates an estimated $31,6
million/year
โข Compared with ODA: $8,11m/year disbursed
โข 4 projects in the pipeline, of which 2 are huge
โข Increases area in REDD+ project by 10x
โข Potentially increases funding from carbon
credits to $ 230,7 million/year
โข Who benefits? Who provides oversight?
โข All new proponents are US/based
โข Community associations/local government
not proponent
13. Key message
โข Private funding is starting to take a prominent
role in DRCโs REDD+ landscape
โข Via ODA and VCM
โข ODA disbursement is lower than global level
โข Local civil society is absent
โข Who benefits? Who provides oversight?
โข Role for stronger civil society and legal
systems