Consideration of Funding Proposals - Addendum VI Funding Proposal Package for FP159

Meeting of the Board 16 – 19 March 2021 GCF/B.28/02/Add.06 Virtual meeting Provisional agenda item 14 23 February 2021 Consideration of funding proposals - Addendum VI Funding proposal package for FP159 Summary This addendum contains the following seven parts: A funding proposal titled "PREFOREST CONGO - Project to reduce greenhouse gas emissions from forests in five departments in the Republic of Congo"; a) No-objection letter issued by the national designated authority(ies) or focal point(s); b) Environmental and social report(s) disclosure; Secretariat’s assessment; c) Independent Technical Advisory Panel’s assessment; d) Response from the accredited entity to the independent Technical Advisory Panel's e) assessment; and f) Gender documentation. g) GCF/B.28/02/Add.06 Page b Table of Contents Funding proposal submitted by the accredited entity 3 No-objection letter issued by the national designated authority(ies) or focal point(s) 78 Environmental and social report(s) disclosure 80 Secretariat’s assessment 83 Independent Technical Advisory Panel’s assessment 98 Response from the accredited entity to the independent Technical Advisory Panel's 113 assessment Gender documentation 117 Project/Programme title: PREFOREST CONGO - Project to reduce greenhouse gas emissions from forests in five departments in the Republic of Congo Country(ies): Republic of Congo Accredited Entity: Food and Agriculture Organization of the United Nations Date of first submission: [2020/01/16] Date of current submission [2020/12/17] Version number [V.10] GREEN CLIMATE FUND FUNDING PROPOSAL V.2.1 | PAGE 0 OF 73 Contents Section A PROJECT / PROGRAMME SUMMARY Section B PROJECT / PROGRAMME INFORMATION Section C FINANCING INFORMATION Section D EXPECTED PERFORMANCE AGAINST INVESTMENT CRITERIA Section E LOGICAL FRAMEWORK Section F RISK ASSESSMENT AND MANAGEMENT Section G GCF POLICIES AND STANDARDS Section H ANNEXES Note to Accredited Entities on the use of the funding proposal template • Accredited Entities should provide summary information in the proposal with cross- reference to annexes such as feasibility studies, gender action plan, term sheet, etc. • Accredited Entities should ensure that annexes provided are consistent with the details provided in the funding proposal. Updates to the funding proposal and/or annexes must be reflected in all relevant documents. • The total number of pages for the funding proposal (excluding annexes) should not exceed 60. Proposals exceeding the prescribed length will not be assessed within the usual service standard time. • The recommended font is Arial, size 11. • Under the GCF Information Disclosure Policy, project and programme funding proposals will be disclosed on the GCF website, simultaneous with the submission to the Board, subject to the redaction of any information that may not be disclosed pursuant to the IDP. Accredited Entities are asked to fill out information on disclosure in section G.4. Please submit the completed proposal to: [email protected] Please use the following name convention for the file name: “FP-[Accredited Entity Short Name]-[Country/Region]-[YYYY/MM/DD]” A GREEN CLIMATE FUND FUNDING PROPOSAL V.2.1 | PAGE 1 OF 73 PROJECT/PROGRAMME SUMMARY A.1. Project or A.2. Public or private Project Public programme sector If the funding proposal is being submitted in response to a specific GCF Request for Proposals, indicate which RFP it is targeted for. Please note that there is a separate template for the A.3. Request for Proposals (RFP) Simplified Approval Process and REDD+. Choose an item Check the applicable GCF result area(s) that the overall proposed project/programme targets. For each checked result area(s), indicate the estimated percentage of GCF budget devoted to it. The total of the percentages when summed should be 100%. GCF contribution: Mitigation: Reduced emissions from: Enter number% Energy access and power generation: ☐ Enter number% Low-emission transport: ☐ Enter number% ☐ Buildings, cities, industries and appliances: 100% A.4. Result area(s) ☒ Forestry and land use: Adaptation: Increased resilience of: ☐ Most vulnerable people, communities and regions: Enter number% ☐ Health and well-being, and food and water security: Enter number% ☐ Infrastructure and built environment: Enter number% ☐ Ecosystem and ecosystem services: Enter number% 41,373 direct beneficiaries (35% women) 870,649 indirect A.5. Expected mitigation 16.77 million t CO2 eq in A.6. Expected adaptation beneficiaries (35% impact 20 years impact women) 0.78% of the population (direct) 16.49% of the population (indirect) A.7. Total financing (GCF 46,567,138 Choose an + co-finance) item. Small (Upto USD 50 A.9. Project size million) A.8. Total GCF funding 28,988,852 USD For multi-country proposals, requested please fill out annex 17. Mark all that apply and provide total amounts. The sum of all total amounts should be consistent with A.8. A.10. Financial ☒ instrument(s) requested Grant 28,988,852 USD ☐ Equity Enter number for the GCF funding ☐ Loan Enter number ☐ Results-based ☐ Guarantee Enter number payment Enter number A.11. Implementation 8 Years A.12. Total lifespan 20 years period A.13. Expected date of 5/28/2020 A.14. ESS category B AE internal approval A GREEN CLIMATE FUND FUNDING PROPOSAL V.2.1 | PAGE 2 OF 73 A.15. Has this FP been A.16. Has Readiness or ☒ ☒ submitted as a CN Yes No ☐ PPF support been used Yes ☐ No before? to prepare this FP? A.17. Is this FP included A.18. Is this FP included ☒ in the entity work Yes No ☐ in the country Yes ☐ No ☐ programme? programme? Does the project/programme complement other climate finance funding (e.g. GEF, AF, A.19. Complementarity CIF, etc.)? If yes, please elaborate in section B.1. and coherence ☒ Yes No ☐ Food and Agriculture Organization of the United Nations (FAO) A.20. Executing Entity information Ministry of Agriculture, Livestock and Fisheries (MAEP) A.21. Executive summary (max. 750 words, approximately 1.5 pages) Congo is committed to pursuing low-emission carbon-resilient development seeking to reduce its GHG emissions by 48% by 2025 under the business as usual (BAU) scenario of its Nationally Determined Contribution (NDC), and by 55% by 2035. The country’s GHG reduction strategy is principally based on its sustainable forest management efforts, particularly the reduction of GHG emissions from deforestation and forest degradation. According to Congo’s NDC, carbon emissions from deforestation represent 81% of the country’s total GHG emissions. To reduce these, the Government of Congo developed their national REDD+ strategy, followed by the REDD+ National Investment Framework (NIF) for the period 2018–2025. Located at the heart of the Congo Basin forests, the Republic of Congo possesses a vast forest area estimated at 23 million ha (69.8% of total land area), including 59,000 ha of planted forests. 1 Despite a relatively low historical deforestation rate estimated at 0.05% (2000–2012), Congo’s forests are now subject to increasing anthropic pressure to overcome the agricultural production deficit and meet the energy needs of its increasing local population. Slash-and-burn farming for agricultural expansion and fuelwood collection are the main interlinked, direct drivers of deforestation and forest degradation in Congo.2 The increase in deforestation and forest degradation is more pronounced in the south of the country where the majority of the population lives. In the south, where the Project will be located, the large majority of the rural population practices subsistence farming as their principal economic activity, and more than 80% of the Congolese population depends on fuelwood as their main source of energy for cooking. The most important BAU barriers include: (i) limited access to improved crop production technology to intensify productivity and quality of crops such as cassava, maize, groundnuts and plantains as well as increasing soil fertility in order to reduce the need to clear additional forests; (ii) limited land access and security rights which prevents a long term investment in low emission crop production;(iii) limited access to a sustainable source of fuelwood which would reduce pressure on natural forest; (iv) limited access to markets to increase incomes and invest in low emission crop production; and (v) limited access to climate finance for green agroforestry investments which prevents smallholders from accessing and ultimately adopting low-emission technologies that would help them shift away from unsustainable and high emission practices without the need for additional public finance. Congo believes that its deforestation rate could double in the coming years, mainly due to pressure on the forests. This 3 BAU scenario suggests a sixfold increase in total CO2 emissions (approximately 34,527 kt eq CO2) by 2035, while it would only multiply by 2.7 in a low-carbon scenario. Increased deforestation not only contributes to the country’s rising GHG emissions, but also exacerbates the vulnerability of people and ecosystems to climate change. This project aims at reducing carbon emissions, while also providing important adaptation co-benefits, focusing its action on three deforestation and forest degradation hotspots. These agricultural and fuelwood supply basins are located in rural areas in the South of the country and feed Brazzaville and Pointe-Noire, as well as the Niari valley and the towns of Dolisie, Madingou and Nkayi. They extend over the departments of Plateaux, Pool, Bouenza, Niari and Kouilou. These five departments experienced

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