PROJECT IDENTIFICATION FORM (PIF) PROJECT TYPE: FULL-SIZED PROJECT THE GEF TRUST FUND

Submission Date: 21 January 2008 Re-submission Date: 11 February 2008; Re-submission Date: 22 May 2008 Re-submission Date: 7 August 2008 Re-submission Date: 28 August 2008

PART I: PROJECT IDENTIFICATION GEFSEC PROJECT ID1: 3635 INDICATIVE CALENDAR GEF AGENCY PROJECT ID: PIMS NO. 4136 Milestones Expected Dates Work Program (for FSP) November 2008 COUNTRY(IES): Cambodia PROJECT TITLE: Strengthening sustainable forest management and CEO Endorsement/Approval November 2009 bio-energy markets to promote environmental sustainability and to reduce greenhouse gas emissions in Cambodia. GEF Agency Approval December 2009 GEF AGENCY(IES): UNDP Implementation Start January 2010 OTHER EXECUTING PARTNERS:MOE, MAFF-FA, MIME GEF FOCAL AREA (S): Full-sized ProjectLand Degradation, Full-sized Mid-term Review (if planned) January 2012 ProjectBiodiversity, Climate Change GEF-4 STRATEGIC PROGRAM(S): LD-SP 2, CC-SP1, CC-SP 4, BD- Implementation Completion January 2014 SP4 NAME OF PARENT PROGRAM/UMBRELLA PROJECT: SUSTAINABLE FOREST MANAGEMENT (SFM)

A. PROJECT FRAMEWORK Project Objective: To strengthen national SFM policy, integrate community-based sustainable forest management into policy, planning and investment frameworks and create markets for sustainable bio-energy technologies that reduce CO2 emissions Project TA, Expected Expected Outputs Indicative GEF Indicative Co- Total ($) Components or Outcomes Financing* financing* STA* ($) % ($) % * 1. Strengthen TA 1. Enhanced (i) Inter-sectoral 530,000 40 800,000 60 1,330,000 national implementation and coordination mechanism for policy, enforcement of SFM strengthened at regulations and forest policies and national and landscape level capacities for regulations (ii) Identification and SFM to 2. Strengthened establishment of financial integrate bio institutional mechanisms to support energy, capacities, inter- community-based SFM biodiversity sectoral initiatives. and livelihood collaboration and considerations (iii) Training 200 staff from coordination for concerned institutions in SFM and rural SFM and sustainable forest energy services wood energy

1 Project ID number will be assigned initially by GEFSEC. 1 PIF Template, August 27, 2007 delivery (iv) National strategy to 3. A strengthened promote sustainable bio financial basis for energy that is supportive of the implementation biodiversity conservation of SFM through (v) Tools for the increased budgetary implementation Guidelines allocation and and regulations on sustainable financing community forestry and mechanisms protected area law 4. Lessons learned (vi) Field-based forest and on community-based protected area monitoring SFM and landscape developed and tested management inform (vii) Awareness raised on policy at national the link between SFM, and provincial levels appropriate land use, biodiversity conservation and climate change (viii) Systemic feedback mechanism developed on lessons learned on community based SFM 2.Promote TA 1. Integrated land- (i) Participatory forest land- 750,000 25 2,200,000 75 2,950,000 integrated and use planning at use assessment conducted participatory provincial and and forest estate demarcated land-use, landscape levels and registered in consultation forest, and covering at least 1 with local, provincial and protected area million ha national stakeholders management at 2. Community-based (ii) Protected areas land use the landscape demonstration of zoning and boundary level SFM to assist in demarcation conducted in making community consultation with provincial forestry self- authority and local people. financing and self- iii) Pro-poor management sustainable in 20,000 options and income ha of land generation best practices in community-based forest and protected area management demonstrated in 20 legally

recognized community forestry areas and 10 community protected areas totalling 20,000 ha of land

3 Promote TA 1. Strategies in place (i) 500 ha of community 847,335 32 1,800,000 68 2,647,335 sustainable to promote woodlots established on wood energy sustainable energy degraded forests for production and technologies sustainable energy markets for identified and piloted production sustainable through private energy sector partnerships (ii) 50,000 households technologies adopting improved cook that reduce 2. At least 94,500 stoves for household use demand on tCO2e mitigated and income generating fuel-wood, through improved enterprise activities. including cook stove adoption efficient bio (iii) Technologies energy 2 PIF Template, August 27, 2007 technologies 3. Community tree- transferred, adapted and planting on degraded produced locally as part of forest land promoted local enterprise activity.

4. Energy efficient technologies promoted among rural households and local enterprises 5. Project 236,300 28 600,000 72 836,300 management Total project 2,363,635 30 5,400,000 70 7,763,635 costs

3 PIF Template, August 27, 2007 B. INDICATIVE FINANCING PLAN SUMMARY FOR THE PROJECT ($) Project Project Agency Fee Total Preparation* GEF N/A 2,363,635 236,365 2,600,000 Co-financing 100,000 5,400,000 5,500,000 Total 100,000 7,763,635 236,365 8,100,000

C. INDICATIVE CO-FINANCING FOR THE PROJECT (including project preparation amount) BY SOURCE and BY NAME (in parenthesis) if available, ($)

Sources of Co-financing Type of Co-financing Amount Project Government Contribution In-kind 600,000 GEF Agency(ies) Grant 3,000,000 Bilateral Aid Agency(ies) Grant and in kind 1,000,000 Private Sector In-kind 400,000 Others In-kind 500,000 Total co-financing 5,500,000

D. GEF RESOURCES REQUESTED BY FOCAL AREA(S), AGENCY (IES) SHARE AND COUNTRY(IES)* (in $) GEF Country Name/ Focal Area Agency Global Project Agency Preparation Project Fee Total UNDP Biodiversity Cambodia N/A 1,000,000 100,000 1,100,000 UNDP Climate Change Cambodia N/A 909,090 90,910 1,000,000 UNDP Land Degradation Cambodia N/A 454,545.5 45454.5 500,000 Total GEF Resources 2,363,635 236,365 2,600,000

PART II: PROJECT JUSTIFICATION A.STATE THE ISSUE, HOW THE PROJECT SEEKS TO ADDRESS IT, AND THE EXPECTED GLOBAL ENVIRONMENTAL BENEFITS TO BE DELIVERED: 1. Compared with its neighbouring countries, Cambodia still has a low population density and relatively large intact natural areas. WWF’s eco-regional assessment has identified five critical ecosystems in Cambodia, including the Cardamom Mountain Range, Northern Plains, Eastern Plain, Upper Mekong and the Tonle Sap. The Cardamom Mountain rainforests are considered by some to be one of the most species-rich and intact natural habitats in the region. The Northern Plains of Cambodia are the largest remaining intact block of a unique landscape that once covered much of Indochina. Dominated by open deciduous forest, grasslands, and seasonal wetlands, the area has been described as the Asian equivalent of the African savannas. It is estimated that Cambodia hosts 806 globally threatened species, including 26 Critically Endangered species, 36 Endangered and 51 Vulnerable species. About 423 species are largely forest or forest-dependent species – including 9 Critically Endangered species, 9 Endangered Species and 23 Vulnerable species2.

2. Although about 59% of Cambodia’s land area is forested, a considerable percentage of this is degraded3. The Forestry Administration’s forest cover assessment for 2006/06 indicates that Cambodia lost 2% of its forest cover during the period 2002-2006. Land and forest degradation in Cambodia are serious threats to its food security as well as to national and global environment. Currently about 75% of the population earn their living through agriculture and depend on natural resources for their livelihoods. Some of the key drivers of forest loss and degradation include conversion to agriculture and other land uses, illegal logging and unsustainable harvesting of fuelwood and other forest products. Over 84% households meet their energy needs through fuel wood from forests– much of which is unsustainably harvested. Until a 2 www.redlist.org 3 Gilmour, D.A., Nguyen V. S., and Tsechalicha X. (2000) estimated 2,600,000 ha of degraded forest land to be available for restoration in Cambodia. assets.panda.org/downloads/lowermekongregionaloverview.pdf

4 PIF Template, August 27, 2007 moratorium on logging in 2001, forest management focused on timber extraction by large-scale concessionaires, which resulted in widespread forest degradation4. The indirect drivers of land and forest degradation are related to high population growth and resulting migration to marginal lands and environments whose potentials and characteristics are little understood by migrants; weak forest governance structures; unclear demarcation of state lands (especially forestlands); and limited human and institutional capacities; and inaccessibility of affordable renewable energy and efficient energy technologies to meet household and local enterprise demands. Land and forest degradation have negative impacts on biodiversity as well as land productivity through erosion and sedimentation of agricultural fields and irrigation facilities, the livelihoods of vulnerable and poor communities living at the forest margins, watershed hydrological functions, and the production of forest products. Therefore, sustainable forest management has been identified as a priority in the country.

3. Several barriers exist for sustainable forest management (SFM) in Cambodia. Despite effort by the national government, local governments and local communities, along with the private sector and the international community, promotion of SFM at a landscape level is absent. Currently, the Forestry Administration (FA) manages Permanent Forest Reserves, whereas forests under protected areas are managed by the Ministry of Environment (MoE) and the flooded forest areas by the Fisheries Administration. There has been limited overall coordinated approach in SFM between these agencies. With devolution of administration to the Provinces, there are additional challenges in achieving SFM, along with demands for land and infrastructure development and poverty reduction. In late 2003, the community forestry sub- decree was passed and by December 2006 the Prakas on the Guidelines for implementation of the Sub Decree was brought out. These provide the legal framework for community forestry in the designated “production forest” areas of the Permanent Forest Estate of the Forestry Administration. However, the process of community handover has been very slow – with less than ten community forests legally recognized and 18 out of 73 community-based protected areas are legally recognized. These have been mostly on degraded areas and very little focus has been given on ensuring positive biodiversity conservation impacts. Efforts to involve local people in forest and protected area (PA) management, as an alternative forest management model, ran in parallel and are uncoordinated, with valuable lessons learned not being used to inform policy reforms. The processes of legal recognition for such efforts are in its early stage and needs strengthening, as do efforts to make community managed areas more productive and supportive of local livelihoods to provide a tangible contribution to poverty reduction. Other barriers to sustainable forest management include are uncertainty over access to land and rights to land and forest resources by local communities, low productivity of many forest areas, including forests managed by communities, and communities’ dependence on unsustainably harvested fuel wood, exacerbated by underdeveloped markets for alternative and more efficient energy sources, amid rising fossil fuel prices.

4. The proposed project will assist in removing the main barriers of sustainable forest management by strengthening national policy, regulations and capacities for SFM to integrate bio energy, biodiversity and livelihood considerations; demonstrating integrated land and forest management at a landscape level and promoting wider adoption of efficient renewable energy technologies by households to reduce demands on natural forests. At the national level, the project will strengthen the efforts of the Forest Administration and the Ministry of Environment to implement the proposed National Forest Programme, the sub-decree on community forestry and its guidelines and the provisions under the Protected Area Law, respectively. The project will ensure stronger inter-sectoral coordination and capacity building on SFM. The project will also demonstrate SFM based on landscape, ecological and participatory approaches (Recommendation 24 of the Independent Forest Sector Review), improved local forest governance, identification and replication of best practices in bioenergy production and natural resource management, and on developing financing mechanisms for the sustainable production of biomass fuels and the efficient use of energy technologies. The project will support activities to integrate and mainstream biodiversity in land use and community forestry by strengthening. In particular, the project will help refine existing community forestry management planning guidelines so that they incorporate conservation measures. Efforts on sustainable bioenergy promotion will include activities such as certification for sustainable fuelwood and charcoal production; and promotion of improved energy efficient cook stoves and other suitable household and local enterprise energy technologies. During the full project development phase, local needs will be identified and appropriate strategies will be developed for renewable

4 Independent Forest Sector Review: The Forest Sector in Cambodia. Main report. April 2004. (http://www.cambodia-forest- sector.net) 5 PIF Template, August 27, 2007 energy options to meet local needs. Capacity strengthening at the grassroots and higher governmental levels, and knowledge management will be directed at the critical issues of practical approaches to forest rehabilitation and promotion and financing of bioenergy, community-based natural resource management and monitoring of threats to biodiversity. This will be complemented by increased understanding of the drivers of land-use change causing land and forest degradation and negative impacts on ecosystem services and local livelihoods. Finally, and of equal importance, the project will enhance the productive potential of community-based management to increase benefits derived by local people and to enhance opportunities for sustainable energy production. It therefore responds directly to Recommendation 30 of the Independent Forest Sector Review, which emphasizes the determination of the legal and economic conditions required to make community forestry self-financing and self-sustainable in different settings as a major priority. GEF assistance will focus on funding the incremental costs of demonstrating, accelerating and up-scaling community involvement in forest, buffer zone and protected area management, including: lifting barriers to implementing SFM, sustainable energy production from biomass, promoting sustainable financing mechanisms for wider use of energy-efficient technologies, while considering development needs and supporting interventions at national, provincial and local levels.

5. The project will produce global environmental benefits by enhancing ecosystem services and biodiversity values through SFM demonstrations at landscape level in Khampong Speu and Kampong Chhnang Provinces of Cambodia. These two provinces host globally important forest ecosystems and species. Of the total 1,253,800 ha of the provinces, 641,596 ha is forested, largely consisting of evergreen, semi-evergreen and deciduous forests. The provinces include parts of Kirirom National Park, Aural Wildlife Sanctuary and the Tonle Sap. By mainstreaming SFM nationally, significant number of globally important species will have better chances of survival. IUCN’s Red List shows that there are over 400 globally threatened species found in Cambodia are dependent on forest ecosystems. Some of the globally threatened species in these provinces include eld’s deer (Cervus eldii siamensis), tigers (Panthera tigris), sun bears (Helarctos malayanus), Asian elephants (Elephas maximus), Asian wild dogs (Cuon alpinus), and banteng (Bos javanicus). By demonstrating sustainable forest management in and around the protected areas, threats to globally important biodiversity will be reduced, and the forested landscape will provide additional habitats to PAs and corridors for such species between PAs. The project’s promotion of renewable energy and energy efficient (EE) technologies will also yield global environmental benefits. In the demonstration provinces, CO2 emissions reductions from use of more efficient household stoves by at least 50,000 households at the demonstration site are expected to reduce emissions of 94500 tons of CO 2 equivalent. Sustainable management of 20,000 ha of natural forests will avoid emission of 177,467 tons of CO2 per year. National mainstreaming impacts of the project will yield significant additional global benefits. With at least 25% of forests under SFM, avoided deforestation alone is expected to lead to avoided emissions of over 25,000,000 tons of CO2 per year5. These global carbon benefits will be further clarified during full project development.

B. DESCRIBE THE CONSISTENCY OF THE PROJECT WITH NATIONAL PRIORITIES/PLANS: 6. In the Third National reports to the UNCCD and the CBD, the Government of Cambodia has confirmed its commitment to continuing the reform of the land and forestry sectors and its commitment to implementing the Convention on Biological Diversity. Under the National Strategic Development Plan 2006-2010 (NSDP), Cambodia is committed to strengthening the contribution of forestry sector to poverty reduction and socio-economic development. According to the 2006 PRSP, the ongoing Forestry Reform has reached a critical stage where institutional strengthening and improvement in coordination are priorities. Macro-goals under the NSDP include objectives to increase of forest cover to 60 percent by 2015 and the reduction of fuelwood dependency from 83.9 percent of households (2005) to 52 percent by 2015. Under its national forest programme, Cambodia is promoting the forestry sector’s contribution to poverty reduction by strengthening community forestry. The Cambodia Forestry and Environment Action Plan 2007-2010 of the Technical Working Group (TWG) on Forestry & Environment stresses opportunities to improve socio-economic conditions of the rural people through improved governance and partnerships in the management of the natural resource and emphasizes the upscaling of community forestry to more communities as a major development priority. The TWG recognizes joint

5 With SFM of 25% of existing 11,392,347 ha of forest, the avoided deforestation (using 2% deforestation rate) equals to 56961.74 ha of forest

6 PIF Template, August 27, 2007 priorities among major national institutions and external stakeholders and in alliance with local government, as the optimal mechanism for combating the challenges such as forest rehabilitation. The National Policy of Rural Electrification by Renewable Energy and the National Wood Energy Working Groups are cognizant of the importance of the sustainably supplying and consuming wood energy and increasing the efficiency of energy consumption.

C. DESCRIBE THE CONSISTENCY OF THE PROJECT WITH GEF STRATEGIES AND STRATEGIC PROGRAMS: 7. The project is consistent with the cross-cutting Sustainable Forest Management Strategy of GEF-4 and integrates priorities across three focal areas aiming for synergies between land degradation, climate change and biodiversity conservation to reduce threats to sustainable management of Cambodia's extensive forests. It is eligible for funding under the LD Strategic Program 2 on Supporting Sustainable Forest Management in Production Landscapes through its integrated approach in addressing the issues of management of forests in the wider production landscape and reduction of forest fragmentation. The project is also consistent with the Climate Change Focal Area Strategy, in particular Strategic Priority 1 on Promoting Energy Efficiency in Residential and Commercial Buildings and Strategic Programme 4 on Promoting Sustainable Energy Production from Biomass and their link to Sustainable Forest Management through the reduction of forest degradation by fuelwood and charcoal producers and the use of biomass for dedicated energy purposes, as well as the promotion of energy efficient appliances in rural households and local enterprises (such as energy efficient cookstoves). The project also meets the objectives of the GEF-4 Biodiversity Strategy, particularly Strategic Objective 2 on Mainstreaming of Biodiversity in Production Landscapes/Seascapes and Sectors and its Strategic Programme 4 on Strengthening the Policy and Regulatory Framework for Mainstreaming Biodiversity, which supports the removal of critical knowledge barriers and development of institutional capacities. The project will be designed to enhance biodiversity indirectly through community involvement in protected area and buffer zone management. By doing this, the project will also contribute to SO1 on catalyzing the sustainability of protected areas – especially on SP1 on sustainable financing through the development of financing mechanism for SFM and SP3 on strengthening terrestrial protected area network through better community involvement in their management.

D. OUTLINE THE COORDINATION WITH OTHER RELATED INITIATIVES: 8. The proposed project will build on experiences gained by past projects that addressed forestry reform, renewable energy and energy efficiency promotion in Cambodia and assist in implementing several recommendations outlined in the Independent Forest Sector Review and the Forestry and Environment Action Plan 2007-2010. The project will closely collaborate with the UNDP/GEF MSP "Building Capacity and Mainstreaming Sustainable Land Management in Cambodia", which aims to play a catalytic role in promoting SLM through limited pilot activities and innovative ideas in capacity building. This is being implemented in three Cambodian provinces; the proposed project will replicate the MSP’s successful activities to additional provinces experiencing high population pressure on forest resources. This will also ensure that staff trained during the implementation of the MSP will be able to apply their new skills on a wider geographical scale. Links will be established with the UNDP/GEF Project on "Building Capacities to Integrate Water Resources Planning in Agricultural Development", and the "Natural Resource Management and Livelihood Program" (funded by DANIDA/DFID), which is piloting participatory land-use planning at the commune level, and the World Bank/Forest Administration Capacity Building for Sustainable Forest and Land Management Project implemented by Regional Community Forestry Training Centre (RECOFTC), which is facilitating the legal recognition of community forestry areas and strengthening capacities in participatory land-use and forest planning, conflict management and participatory monitoring, evaluation and dissemination. Furthermore, lessons learned by the EC UNDP SEARCA SGP- PTF will be incorporated in the project design, especially related to local governance and the simplification of procedures with communities and local authorities implementing community forestry. The JICA/Forest Administration Community Forestry with Contribution to the Livelihood Improvement of the Local People Project is expected to provide valuable lessons in terms of selecting attractive and viable land management options under community forestry. The DANIDA project Demarcating Cambodia’s Forest Estate – Developing the Demarcation Process in Kampot, Kratie, Mondulkiri and Preah Vihear Provinces will also help provide a basis for planning. The land-use plan and subsequent zoning will build on the zoning of the completed UNDP/UNF/GEF Cardamom Mountains Protected Forest and Wildlife Sanctuaries Management Project. There have been a number of small-scale programs to promote bioenergy in rural Cambodia, such as UNDP/GEF Small Grants Programme’s biomass electrification project, GERES’s Cambodia Fuelwood Saving Project, and SME’s biomass gasification pilot. Lessons from past efforts suggest that there is a strong interest in and demand for community bioenergy projects but they need considerable push and new strategies to reach the rural poor and rural entrepreneurs. In June 2007, the World Bank ESMAP program conducted a baseline assessment of 7 PIF Template, August 27, 2007 the rural energy sector in Cambodia. The findings of the World Bank’s baseline assessment and strategy are that the introduction of energy efficient and bioenergy technologies can substantially improve rural energy services by both lowering the costs and making them available in remote areas of the country. The project will also cooperate closely with the biodigester programme, supported by the Netherlands Development Organisation (SNV), and the EU/ GERES supported fuelwood savings project The GEF project will work closely with all of these initiatives to ensure that their lessons and experiences are incorporated into the project. The proposed project will benefit from the baseline work completed by a number of development partners, in addition to UNDP.

E. DISCUSS THE VALUE-ADDED OF GEF INVOLVEMENT IN THE PROJECT DEMONSTRATED THROUGH INCREMENTAL REASONING : 9. Despite sustainable forest management being a priority for the Cambodian government, it has been managed in a fragmented way – with responsibilities for protected area forest management with one government agency and for non- protected area forests with another government agency with limited coordination and collaboration. In the context of increasing decentralized development planning and implementation, forest management also remains poorly coordinated with local governments’ development agenda. In absence of GEF support, forest management in Cambodia will continue to be uncoordinated and negatively impacted by development plans; and global environmental benefits will be lost through loss of globally important habitats and species as well as through accelerated emissions of GHGs from land use changes and unsustainable energy uses. Without GEF funding, efforts at the local and provincial levels will have limited success in reversing land and forest degradation at landscape level and will not have wider national policy impacts. GEF support will strengthen inter-sectoral and inter-provincial coordination, mainstream community-based approaches in policy implementation and provincial-level planning, and capacity development of key stakeholders and agencies and make use, through effective knowledge management, of the rich knowledge on best practices that are currently insufficiently shared, and support national policy strengthening. The proposed project is well timed, as the Prakas need to be further field-tested and already existing community forestry arrangements need to be strengthened for communities to enjoy greater user and access rights as well as improve the productivity of their forests. Though there has been some baseline work on the promotion of several renewable energy and EE technologies, there has not been a systematic effort to promote them alongside sustainable forest management. Examples of countries in various parts of Asia (such as in Nepal and India) suggests that a coherent approach to promote renewable energy and EE with sustainable forest management can be a win-win approach. The forest management and protected areas management administrations have some of the widest outreach into local communities (and thus help in local awareness raising on renewable energy technologies quickly and effectively). Forests and protected areas also benefit from reduced demands for biomass fuels as well as by the good relationship that such actions build between local communities and government agencies. Without GEF investment, work on linking SFM and renewable energy promotion will be weak and unstrategic, and therefore not achieve the greater global environmental benefits. The proposed demonstrations will focus particularly on the testing and development of self-financing and self-sustainable arrangements for both forest management and renewable energy promotion, which have received insufficient attention till date.

F. INDICATE RISKS, INCLUDING CLIMATE CHANGE RISKS, THAT MIGHT PREVENT THE PROJECT OBJECTIVE(S) FROM BEING ACHIEVED, AND IF POSSIBLE INCLUDING RISK MEASURES THAT WILL BE TAKEN:

Risks Rating Mitigation Measures Insufficient economic gains Low to The proposed project will minimize the first risk by supporting only practices for households participating Medium identified by local communities themselves as socio-economically attractive in community-oriented and sustainable for adoption on a broader scale and by building capacities of natural resource stakeholders to eventually engage in carbon (and other PES) markets and to management, biomass establish arrangements with the wood-processing industries through production smallholder private sector partnerships. The project will also strengthen resource access to and management of less degraded forests that can provide benefits in the short to medium term. Inadequate level of Low to This risk will be minimized through the development of a sound coordination coordination among Medium mechanism for stakeholders at national, inter-provincial, provincial and local provincial stakeholders levels. Capacity building, supported by knowledge management, will also raise the awareness on the importance of regional approaches at the landscape 8 PIF Template, August 27, 2007 level to SFM, especially the rehabilitation of degraded forestlands. A third, medium-size, risk relates to land grabbing and the expansion of economic concessions. Risk-minimization strategies include the participatory approach in land-use planning, the legal recognition of community forest and protected areas and the dissemination on the importance of community-based natural resource management in achieving MDG goals as outlined in the NSDP. Multi-stakeholder and multi- Medium The project’s emphasis on developing a strong coordination mechanism level nature of project nationally for SFM is expected to overcome this risk. The project is built on increases the project’s the strong interest of the stakeholders and, therefore, has their strong support. transaction costs and reduces This project is expected to build national capacities on dealing with such project impacts due to complexities and clarifying and simplifying roles and responsibilities of key institutional complexities stakeholders, thereby reducing overlaps and building synergies. Methodologies for Medium to Measurement protocol for carbon benefits will be designed based on the measuring carbon benefits high current GEF project with UNEP and the World Bank and based on recently (particularly aboveground approved principles of the CDM methodologies biomass, soil and belowground) will not be simple nor cost-effective

G. DESCRIBE, IF POSSIBLE, THE EXPECTED COST-EFFECTIVENESS OF THE PROJECT: 10. The project will build on the cost-effective approaches piloted through the EC UNDP SEARCA SGP-PTF and the UNDP/GEF MSP "Building Capacity and Mainstreaming Sustainable Land Management in Cambodia". The latter project will contribute to the cost-effectiveness of the capacity building component and training can be more focused to address still existing needs. Further analysis of cost effectiveness of community-based SFM practices will be conducted in the project preparation phase, including especially cost-benefit analysis of alternative community forestry approaches and the production of biofuels. Knowledge management will ensure that valuable lessons learned are integrated in project activities. Links with existing projects, working at different scales and in different locations, will also help reduce costs. Several technologies for the efficient generation of energy from biomass have been piloted, which will help determine, which approaches respond best to needs identified at the local level. Furthermore, public-private-institutional-community partnerships including the media will be engaged for various components of outreach and knowledge management to optimize the effectiveness of awareness raising and bridging of knowledge gaps beyond the selected project area.

H. JUSTIFY THE COMPARATIVE ADVANTAGE OF GEF AGENCY: 11. SFM is an important priority identified in the country program of action of UNDP Cambodia. UNDP Cambodia is supporting development of rural livelihoods through improved access to sustainable energy services. It also possesses a very good working relationship with various key ministries, and with the influential Supreme National Economic Council. UNDP Cambodia also has significant experiences in the forestry sector and community involvement in natural resource management through the EC UNDP SEARCA SGP-PTF. This project builds on UNDP’s past and on-going projects related to conservation and sustainable use of natural resources in Cambodia – many of which have been funded by the GEF in the past – including the experiences from the Small Grants Funds.

PART III: APPROVAL/ENDORSEMENT BY GEF OPERATIONAL FOCAL POINT(S) AND GEF AGENCY(IES)

A. RECORD OF ENDORSEMENT OF GEF OPERATIONAL FOCAL POINT (S) ON BEHALF OF THE GOVERNMENT(S): (Please attach the country endorsement letter(s) or regional endorsement letter(s) with this template).

Lonh Heal Date: Director General Ministry of Environment

B. GEF AGENCY(IES) CERTIFICATION

9 PIF Template, August 27, 2007 This request has been prepared in accordance with GEF policies and procedures and meets the GEF criteria for project identification and preparation.

John Hough Sameer Karki Deputy Executive Coordinator Project Contact Person Date: 28 August 2008 Tel. and Email: +66 2 288 2729 [email protected]

10 PIF Template, August 27, 2007