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Draft MTR Thailand Kingdom of Thailand Ministry of Natural Resources and Environment Department of National Parks, Wildlife and Plant Conservation Forest Carbon Partnership Facility(FCPF) REDD+ Readiness Project Mid-Term ReviewV2.3 Grant TF0A0984 September 2020 Acronyms and Abbreviations ADB Asian Development Bank AGB Above Ground Biomass AIPP Asia Indigenous People Pact Foundation AMBIF ASEAN+3 Multi-Currency Bond Issuance Framework ASFCC ASEAN-Swiss Partnership on Social Forestry and Climate Change AWG-SF ASEAN Working Group on Social Forestry BAAC Bank for Agriculture and Agricultural Cooperatives BGB Below Ground Biomass BSM Benefit Sharing Mechanism BUR Business as Usual Report CCMP Climate Change Master Plan CF Carbon Fund CFM Community Forest Management COC Chain of Custody CPMU Central Project Management Unit DEDE Department of Alternative Energy Development and Efficiency DNP Department of National Parks, Wildlife and Plant Conservation E&S Environmental and Social Safeguards EbA Ecosystem based-adaptation EGAT Electricity Generating Authority of Thailand EPPO Energy Policy and Planning Office ESMF Environmental Social Management Framework EU European Union EUTR EU Timber Regulation EWMI East-West Management Institute FCPF Forest Carbon Partnership Facility FGRM Feedback Grievance and Redress Mechanism FIO Forest Industry Organization FLEGT Forest Law Enforcement Governance and Trade FLOURISH Forest Landscape Restoration for Improved Livelihoods and Climate Resilience FLR Forest Landscape Restoration FSC Forest Stewardship Certification GFW Global Forest Watch GHG Green House Gases GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (German development agency) HHs/hhs House holds IFC International Finance Corporation IKI International Climate Initiative - Funding from the Federal Ministry of the Environment, Nature Conservation and Nuclear Safety, Germany ILPA Illegal Logging Prohibition Act INBAR International Bamboo and Rattan Network KTB Krung Thai Bank KTREEB Khlongrua Tree Bank LDD Land Development Department LEAF Lowering Emissions in Asia’s Forests LULUCF Land Use, Land Use Change and Forestry MFLF Mae Fah Luang Foundation MMR Measurement, Monitoring and Reporting Mid Term Report FCPF Project September 2020 MMU Minimum Mapping Unit MONRE Ministry of Natural Resources and Environment MTR Mid-Term Review Progress Report NCCC National Climate Change Committee NDA National Designated Authority NDC/INDC Nationally Determined Contribution/ Intended Nationally Determined Contribution NESDP National Economic and Social Development Plan NFI National Forest Inventory NFMS National Forest Monitoring System NRS National REDD+ Strategy NSCCM National Strategy on Climate Change Management ONEP Office of Natural Resources and Environment Policy and Planning PAM Policy and Measures PEFC Programme for the Endorsement of Forest Certification PES Payment for Environmental Services PLR Policy Laws and Regulations PPMU Provincial Project Management Unit PSU Primary Sample Units R-PP Readiness-Preparation Proposal for the FCPF REDD+ Readiness Funding REL/FREL Reference Emission Level; Forest Reference Emission Level RFD Royal Forest Department RIDF Royal Initiative Discovery Foundation SDC Swiss Development Corporation SESA Strategic Environmental and Social Assessment SFM Sustainable Forest Management SGP GEF Small Grant Program SIDA Swedish International Development Cooperation Agency SIF Social Investment Fund SIS Safeguard Information System SNV Netherland Development Organization - an NGO T-VER Thailand Voluntary Emission Reduction TEEB The Economic Economics of Ecosystems and Biodiversity (economic approach) TEFSO Thai-EU FLEGT Secretariat Office TFCC Thailand Forest Certification Council TFCS Thailand Forest Certification System TGO Thailand Greenhouse Gas Organisation TLAS Timber Legality Assurance System TORs Terms of Reference TWG Technical Working Group UNFCCC United Nations Framework Convention on Climate Change UNOCD UN Office on Drugs and Crime UTM Universal Transverse Mercator V4MF Voices for Mekong Forests VCS Verified Carbon Standard VDPs Village Development Plans VPA Voluntary Partnership Agreement – part of FLEGT WAVES Weaving Leadership for Gender Equality WB World Bank Weights and Measures m = meters; ha = hectares Currency M = million; k =thousand Currency Unit = USD Dollar USD1 = BHT 30 1 rai = 1600 square meters 3 Mid Term Report FCPF Project September 2020 Contents 1 Background and Introduction 10 1.1 Background 10 1.2 Forest Management Institutions 12 1.3 Program Development Objective 15 1.4 Summary of the Readiness Project 16 1.5 Mid Term Review Approach and Methodology 19 2 An Overview of the Progress in the Implementation of the R-PP 21 2.1 Summary of Progress To Date on REDD+ Related Program Activities 21 2.2 Component 1ReadinessOrganisation and Consultations 24 2.3 Component 2Prepare the REDD+ Strategy 27 2.4 Component 3Develop a National Forest Reference Emission Level and/or Reference Level 29 2.5 Component 4 Design Systems for National Forest Monitoring and Information on Safeguards 31 2.6 Project Management 31 3 Analysis of Progress Achieved 34 3.1 Component 1 Analysis 34 3.2 Analysis Component 2 Development of Government Supporting Policy Framework for REDD+ 40 3.3 Policy Framework, National REDD+ StrategyThe Case for Involving the Private Sector in Thailand 43 3.4 Analysis of Progress Component 3 65 3.5 Recommendations and Activity Gaps 67 3.6 Summary Roadmap for Accelerated Implementation 68 3.7 Justification of the Extension of the FCPF Grant 69 4 Review of the REDD Country Participant’s Compliance with the Common Approach 71 4.1 Progress on Safeguards 71 5 Updated Financing Plan for the Overall Readiness Preparation 77 6 Annex 78 6.1 Trainings 78 6.2 Monitoring of the R-PP 83 6.3 Thailand Forest Certification System 87 6.4 Management and Harvesting Overview of Legal Requirements 90 6.5 World Bank - Grant Reporting and Monitoring (GRM) Report (Reporting Period: 07/01/2018 to 06/30/2019) 92 4 Mid Term Report FCPF Project September 2020 Tables Table 1.1 Summary of the proposed REDD+ Preparation Project 16 Table 2.1 Rating of overall progress 21 Table 3.1 Recommendations from the stakeholder consultation audiences 35 Table 3.2 Communication objectives, outcomes and outputs 38 Table 3.3 Summary of initial draft REDD+ policies May 2020 46 Table 3.4 List of REDD+ related forestry projects in Thailand 51 Table 3.5 Summary of an indicative roadmap for key activities that could be undertaken in the additional time of an extension to end of December 2021 68 Table 5.1 MTR Summary finances and sources of funds 77 Table 6.1 Details of Trainings on the Program, Principles and Concepts of the REDD+ Framework and Climate Change 78 Table 6.2 Strengthening knowledge, understanding, lesson summaries and formulation of response plans for the REDD+ mechanism 79 Table 6.3 On going SESA consultations, number of Amphurs and Tambons Surveyed in the six provinces to date 79 Table 6.4 Updated monitoring table based on the R-PP project document 83 Boxes Box 2.1 Green Bonds ....................................................................................................... 45 Figures Figure 3.1 Institutional Arrangements for REDD+ Readiness .................. 47 5 Executive Summary This report is the Mid-Term Review (MTR) Progress Report to the Participants Committee of the Carbon Fund on implementation of the Readiness FundForest Carbon Partnership Facility (FCPF) Grant and TF0A0984for USD3.6 million and includes an overview of the progress on the implementation of the Readiness Preparation Proposal(R-PP) project in Thailand. Thailand received FCPF grant support to develop a R-PP, which supports the detailed assessment of the drivers of deforestation and forest degradation, defining of the forest emissions reference level based on past emission rates and future emissions estimates, establishing a monitoring, reporting and verification system for REDD+, development of a national REDD+ strategy, and actions for integrating environmental and social considerations into the REDD+ Readiness process. The development objective of the project is to support the development of the REDD+ Readiness Preparation Activities. This is to be achieved by supporting the preparation of a national REDD+ strategy, the design of a national Measurement, Reporting and Verification (MRV) system, and by producing technical work and policy advice. This project has the following four main components: 1) The first component, Readiness Organization and Consultation, aims to tackle complex issues where either technical depth or broad participation is required across multiple sectors to provide a coordinated approach to REDD+. It has the following subcomponents: (a) National Readiness Management Arrangements; and (b) Participation and Consultation Process. 2) The second component, REDD+ strategy preparation, will ensure that the elements of social and environmental sustainability are firmly embedded in the technical proposals for proposed REDD+ activities. It has the following three subcomponents: (a) Land Use, Drivers of Land Use Change, Forest Law, Policy and Governance; (b) REDD+ Strategy options; and (c) Social and Environmental Sustainability/Grievance Mechanism. 3) The third component, Forest Monitoring and Emissions, is expected to develop a monitoring system for REDD+ including the design of the approach and development of the Forest Reference Emission Level/Reference Level (FREL/FRL). It has two subcomponents as follows: (a) Reference Emissions
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