Questions raised in Chair Summary (CFPs) Responses A road map has been prepared and approved by both Parties (CI and MEDD; find attached) to meet the Green Climate Fund Board's condition, prior to disbursement, on how and when the project will be aligned with national REDD+ implementation arrangements, including REDD+ activities that have received funding from sources Consider during the implementation of the ER other than the PRE AA with FCPF. Some key agreements: Program synergies and complementarity with related • REDD Initiative of CAZ that receives funding from the GCF will not be eligible programs, including those submitted to the GCF, and to participate in the benefit sharing mechanism during the duration of the other bilateral and multilateral programs. GCF project ; • FCPF Emission Reductions generated by the ER Program and originated from the REDD Initiative area will be labelled in the national transaction registry and it will be ensured that these are not sold to Tranche A of the FCPF to avoid these being used as offsets. Madagascar will regularly monitor deforestation inside the ER Program Accounting area and Outside the ER Program Accounting area in accordance with the following specifications: • Inside Accounting Area (every year): o Deforestation map using the same methods of the map that is being • Regularly monitor (based on available data) developed for 2005-2010-2015-2018 (see attachment) deforestation rate in the remaining areas of the 5 o Stratified sampling using the methods specified in the ERPD relevant regions outside of the ER Program o Estimation using the stratified estimator Accounting Area, and should a significant increase in • Outside Accounting Area (every 2 years, for every reporting period) the rate of deforestation occur and such deforestation o relates to the ER Program (e.g. displacement), Deforestation map using the same methods of the map that is being consider potential measures to address causes of such developed for 2005-2010-2015-2018 (see attachment) o deforestation. Deforestation estimates using the 4 km national grid, but this grid is coarse so it will be used as a reference. o If a significant increase in deforestation (according to the map) is observed with regard to the historical deforestation average (10% increase), BNCCCREDD+ will conduct a quick study of drivers consisting on identifying hotspots and evaluating if this could be the result of displaced activities from the ER Program area. However, this study might not be available at the time of the MR preparation so it is suggested to provide this study in the following reporting period or at a later date. There are only two initiatives registered as REDD+ projects within the Accounting Area: CAZ and Makira. The Ministry of Environment and Sustainable Development (MEDD) is the program proponent for both projects and any issuance deeds is authorized and signed by the MEDD. Moreover, the agreements with CAZ and Makira have been cancelled and they will be replaced by the new framework described in the upcoming REDD+ Decree. Under the new framework, credits will be generated from Makira for vintages prior to the ER Program crediting period. According to the REDD+ Decree, once the REDD+ Initiative becomes integrated within a REDD Program (ER Program), the Initiative cannot generate credits yet it may participate in the benefit sharing plan of the REDD Program.. • Continue to consider ways to avoid double counting The REDD Decree will also create officially the registry of REDD Initiatives and a of ERs generated in the ER Program Accounting Area national transaction registry implemented on a platform (SIIP) which will ensure (in particular ERs from Makira Protected Area and the traceability of ER sales from Initiatives and Programs. All ER sales are centralized in GCF project referenced in the ER Program Document), the Ministry in charge of the Environment and Forests and the Ministry in charge of including by using the transaction registry for ER Finance. transactions in the ER-Program Accounting Area, and through revisions to the existing arrangements for the Some details of the SIIP and the transaction registry: commercialization of ERs from the Makira and CAZ ➔ SIIP: Protected Areas. • Objective: (i) formalizing and (ii) managing all information on REDD+ initiatives and programs. Also, SIIP facilitates the monitoring the effectiveness and efficiency of carbon performance and non-carbon benefits. SIIP is currently functional. • All transaction should be entered in the SIIP as soon as it occurs • Activities to write in the SIIP include: o Monitoring results o Carbon ER sales ➔ REDD+ National transaction Registry : Under implementation. The specifications and the TORs for the implementation may be found attached. The approach adopted in the REDD+ process in Madagascar prioritizes the active participation of communities located in PA green belts. Communities can manifest activities in different forms: - In the context of a forest resource management transfer - peasant associations operating in the main deforestation-causing sectors in the ERP AA area. Continue to include communities in the monitoring - Coalmen's Association (association des charbonniers) plans for the relevant aspects of the ER Program, - women's associations involved in struggling deforestation including on non-carbon benefits, safeguards, and - etc. benefit sharing. Communities as direct beneficiaries of carbon and non-carbon benefits have great responsibilities in the use and monitoring of carbon benefits. Communities are informed, consulted and involved in all monitoring processes. They contribute to the assessment of the implementation of carbon and non-carbon benefits and the implementation of safeguards, and they may be among the persons affected by the project (PAPs). • Consider improving the methodology for activity The ministry of the environment has created the LOFM (Geomatic lab) to be in data estimation and emissions factors estimation as charge of activity data estimation and has in place an MRV unit in charge of the suggested by the TAP. estimation of emission factors. The following actions have been undertaken: • Activity data: The LOFM then put in place a 4x4 km national grid of points that will be used for regular monitoring using Collect Earth. The LOFM has collected data on forest cover, deforestation and forest degradation for the whole country using the newly approved Land Use Land Cover classification system. This has been done following the guidance from the TAP who recommended the use of a national grid and increased sampling. The data has to go through a process of QA and some tests with stratification using the deforestation maps to be developed, but the objective is to have the new estimates by the time of the first monitoring. • Emission Factors: The BNCCCR also in the process of updating emission factors through a national forest inventory system consisting on a double sampling for stratification scheme. The national grid is used for stratification, and random selection of plots of different strata of the national grid have been selected for data collection. The data will be collected during 2020 and new emission factors will be provided by the time of the first monitoring and verification. The objective is to be able to have a more accurate estimation of carbon stocks per unit area. In relation with the estimation of stocks, equations used to estimate the carbon stock of trees also is updated with national formula, new formula has been established for dry forest and spiny forest to complement the ones published by Vieilledent, 2012 The Government of Madagascar hereby notifies its intention to apply technical corrections to both activity data and emission factors as described above. The activity data will be derived from the national grid which might be post-stratified, the emission factors will be based on the NFI (National Forest Inventory) data that is currently being collected. The Government of Madagascar would like to also notify that during the process of elaboration of the Land Use Land Cover classification system prior to the data collection of the national grid, stakeholders identified the need to revise the forest definition reason being that some fragmented forest and small restorations (<1 ha) would not be included with the current definition and the mangrove and spiny forest would not be classified as forests. The implications of the new definition in the RL (Reference level) is that: a) a part of forest degradation will be classified now as deforestation (small scale slash and burn from 0.5 ha to 1 ha) so there will be a transfer; b) deforestation might increase slightly due to the increase forest cover; c) afforestation/reforestation might increase slightly as new areas of forest will increase slightly. GoM believes this will not have a major impact and would like to propose this as a technical correction. Criteria Old definition New definition Minimum area 1 ha 0.5 ha Minimum height 5 m Mangrove: 2 m Humid forest: 5 m Dry forest: 5 m Spiny forest: 2 m Minimum tree canopy 30% Mangrove: 10% cover Humid forest: 30% Dry forest: 30% Spiny forest: 30% The GoM has secured funding (ACCEL REDD+) to cover part of the operational costs required for the AA-ERP during the first 2 years (2 million USD out of the 3 million USD necessary) • Continue exploring different financing sources for The GoM is close to securing 15-20 million USD of additional investment finance in the ER program implementation. the northern part of