Forest Investment Plan – Version 3.1 17.5.2016 Forest Investment Plan (FIP) In Mozambique Investment Plan DRAFT Version 3.1 UT-REDD, MITADER 1 Forest Investment Plan – Version 3.1 17.5.2016 Table of Contents Contents List of abbreviations and acronyms 4 Summary of Country Investment Plan 6 Section 1: Description of the country and sector context 14 Section 2: Identification of Opportunities for Greenhouse Gas Abatement 21 Section 3: Enabling policy and regulatory environment 24 3.1 National political commitment 24 3.2 Multi-sectoral coordination 25 3.3 MITADER Vision and Flagship Programs 26 3.4 Legal and Institutional Framework for Forests and Climate Change 32 3.5 Implementation Capacity and Challenges 43 Section 4: Expected Co-Benefits from FIP Investment 48 Section 5: Collaboration among MDBs and with other Partners 50 Section 6: Identification and rationale for projects and programs to be co-financed by FIP 52 6.1 Project/Module One: Mozambique Forest Investment Project (supported by the World Bank) 64 6.2 Project/Module Two: Emissions Reductions in the Forest Sector through Planted Forests with Major Investors-(IFC) 69 Section 7: Implementation potential with risk assessment 77 Section 8: Financing plan and instruments 82 Section 9: Results Framework for Investment Plan 84 ANNEX 1 – Projects Proposed for the Mozambique Investment Plan 89 Project/Module 1 - Mozambique Forest Investment Project (MozFIP) 90 Project/Module 2 - Emissions Reductions in the Forest Sector through Planted Forests with Major Investors 103 Annex 2: Stakeholder Engagement and Consultation Plan for the FIP Investment Plan (IP) 116 Annex 3: DGM in Mozambique 126 Annex 4: FCPF/UNREDD Readiness Preparation Proposal (R-PPs), National REDD+ Plan, Action Plan 129 Annex 5: Evaluation of the Mozambique Investment Plan (MIP) for the Forest Investment Program (FIP) and Response from the Mozambican Government 130 Annex 6: IBRD, AfDB and IFC activities in Mozambique 137 2 Forest Investment Plan – Version 3.1 17.5.2016 Figures Figure 1- Forests of Mozambique –Ecological Zones 15 Figure 2- Deforestation rates inside (0.009% p.a) vs. outside (0.61%p.a.) the Gilé National Reserve in Zambezia 17 Figure 3 - The process of deforestation and degradation with the interaction of different factors. 20 Figure 4 - National and regional distribution of emissions by driver. 20 Figure 5 - Opportunities to Reduce Deforestation 23 Figure 6 - Programa Estrela and its Complementary Projects 30 Figure 7 - Ongoing and planned operations in support of REDD+ in Mozambique. 36 Figure 8 – UGFI Structure at current time. 38 Figure 9 -– UGFI Staffing Structure 39 Figure 10 - UGFI Linkages 39 Figure 11 - Overview of Compliance Challenges 45 Figure 12 - Logical Model 54 Figure 13 - Modular Expansion 54 Figure 14 - Forests of Mozambique with Module One Landscapes identified 63 Figure 15 - Project One Framework 65 Figure 16 - Cabo Delgado Landscape 66 Figure 17 - Zambezia Landscape 67 Figure 18 - Floresta em Pé and FIP Interventions 69 .Figure 19 - Mosaic landscape to be implemented in Zambézia 71 Figure 20 - Project Two Framework 73 Figure 21 - Structure of MozFIP 91 Figure 22 - Programs and projects approved and under negotiation for environment, REDD+ and natural resource management in Mozambique 131 Tables Table 1 - The main drivers of deforestation in Mozambique. 18 Table 2 - MITADER responsibilities 28 Table 3- UGFI Responsibilities 38 Table 4 - Mozambique’s Institutional capacity for MRV, developed under REDD+ Readiness, useful for FIP 41 Table 5 - Direct and Indirect Drivers of Deforestation 53 Table 6 - Mozambique FIP Theory of Change 56 Table 7 - Forest Reference Emissions Levels: Cabo Delgado Landscape 68 Table 8 - Implementation risks and their mitigation measures 81 Table 9 - List of consultations and number of participants per consultation 117 Table 10 - Participation in FIP Consultations, breakdown per sector 118 Table 11 - Participation in FIP consultations, by gender 118 Table 12 - Participation in DGM Consultations, breakdown per sector 118 Table 13 - Participation in DGM consultations, by gender 119 Table 14 - Participation in the Online Consultation, breakdown per sector 120 Table 15 - Geographic representation of respondents in online consultation 120 Table 16- Participation in informative workshops and consultations on final IP, breakdown per sector 121 Table 17 - Participation in informative workshops and consultations on final IP, breakdown per gender 121 Table 18 - Matrix of Comments and Responses 125 Table 19 - General criteria for assessing the Mozambique Investment Plan (MIP) 133 Table 20 - FIP Specific Criteria for assessing the Mozambique Investment Plan (MIP) 134 Table 21 - Natural resource management portfolios of MDBs in Mozambique 142 3 Forest Investment Plan – Version 3.1 17.5.2016 List of abbreviations and acronyms AAC Annual Allowable Cut ANAC National Administration of Conservation Areas (Administração Nacional de Áreas de Conservação) AQUA National Agency for Environmental Quality Control (Agência Nacional para o Controlo de Qualidade Ambiental) CDS-ZC Centre for Sustainable Development in Coastal Zones (Centro de Desenvolvimento Sustentável para as Zonas Costeiras) CEAGRE Centre of Studies for Agriculture and Natural Resource Management (Centro de Estudos de Agricultura e Gestão de Recursos Naturais) CENACARTA National Cartography and Remote Sensing Centre (Centro Nacional de Cartografia e Teledetecção) CONDES Council of Sustainable Development (Conselho Nacional de Desenvolvimento Sustentável) COP Conference of Parties CSO Civil Society Organization CTR Technical Review Committee DGM Dedicated Grant Mechanism for Local Communities DINAF National Forest Directorate (Direcção Nacional de Florestas) DNTF National Directorate of Land and Forestry (Direcção Nacional de Terras e Florestas) DUAT Land Use Rights (Direito de Uso e Aproveitamento de Terra) EIA Environmental Investigation Agency FAEF Faculty of Agronomy and Forest Engineering (Faculdade de Agronomia e Engenharia Florestal) FAO Food and Agriculture Organization of the United Nations FCPF Forest Carbon Partnership Facility FIP Forest Investment Program FUNAB National Fund for the Environment (Fundo Nacional do Ambiente) FNDS Fund for Sustainable Development (Fundo do Desenvolvimento Sustentavel) FUNAE Energy Fund (Fundo de Energia) GEF Global Environment Facility GHG Greenhouse Gases GoM Government of Mozambique IDA International Development Association IFC International Finance Corporation IGCC Interagency Group on Climate Change (Grupo Interinstitucional para as Mudanças Climáticas) IIAM National Institute for Agriculture Research (Instituto de Investigação Agrária de Moçambique) INDC Intended Nationally Determined Contribution INE National Institute of Statistics (Instituto Nacional de Estatística) INFATEC Training Institute in Administration of Land and Cartography (Instituto de Formação em Administração de Terras e Cartografia) INFLOR National Forest Institute (Instituto Nacional Florestal) IP Investment Plan IPLC Indigenous Peoples and Local Communities JICA Japan International Cooperation Agency 4 Forest Investment Plan – Version 3.1 17.5.2016 MASA Ministry of Agriculture and Food Security (Ministério da Agricultura e Segurança Alimentar) MDB Multilateral Development Banks MEF Ministry of Economy and Finance (Ministério da Economia e Finanças) MICOA Ministry for the Coordination of Environmental Action (Ministério para a Coordenação da Acção Ambiental) MITADER Ministry of Land, Environment and Rural Development (Ministério da Terra, Ambiente e Desenvolvimento Rural) MRV Monitoring, Reporting and Verification NASCCM National Adaptation Strategy and Climate Change Mitigation (Estratégia Nacional de Adaptação e. Mitigação de Mudanças Climáticas) NGO Non-Governmental Organization NTFP Non-Timber Forest Products PCDP Community Development Program QNP Quirimbas National Park REDD Reducing Emissions from Deforestation and Forest Degradation REDD+ Reducing Emissions from Deforestation and Forest Degradation, together with conservation, sustainable management of forests and enhancement of forest carbon stocks REL/RL Reference Emissions Level SESA Strategic Environmental and Social Assessment SISFLOF Forest and Wildlife management information system SME Small and Medium Enterprises UEM Eduardo Mondlane University UGFI International Funds Management Unit (Unidade de Gestão de Fundos Internacionais) UMC Climate Change Unit (Unidade de Mudanças Climáticas) UN United Nations UNCCD United Nations Convention to Combat Desertification UNEP United Nations Environment Programme UNFCCC United Nations Framework Convention on Climate Change UT-REDD+ REDD+ Technical Unit WWF World Wide Fund for Nature 5 Forest Investment Plan – Version 3.1 17.5.2016 FOREST INVESTMENT PROGRAM Summary of Country Investment Plan 1. Country/Region: Mozambique 2. FIP Funding Grant: 10.8M Loan: 13.2M Request (in USD million): 3. National FIP Momade Nemane, FIP Coordinator, MITADER, Focal Point: [email protected]:[email protected] 4. National Ministry of Land, Environment, and Rural Development (MITADER) Implementing Agency (Coordination of Investment Plan): 5. Involved MDB World Bank, IFC, AFDB 6. MDB FIP Focal Headquarters-FIP Focal Point: TTL: World Bank – Andre Aquino, Point and Tim Brown, Senior Natural World Bank – Gerhard Dieterle, Lead Project/Program Resources Management Specialists, Adviser, [email protected] Task Team Leader [email protected], (TTL): IFC –Joyita Mukherjee, Senior Operations