Climate Investment Funds (CIF)- Forest Investment Program (FIP)

Climate Objective
Mitigation
Sectors and Themes
Forestry and Land Use
Gender
Type of Support Provider
Multilateral
Type of Recipient
Public entity at the national level
Public entity at the sub-national level
Public entity at the regional level
Non-profit or civil society organization
Private sector
Community-level organization
Co-financing
Yes
Application Timeframe

Investment Plan preparation, submission and approval may take up to 2 years.

Project preparation, submission and approval by the FIP sub-committee maximum 2 years.

Trustee or Administrator
World Bank
Contact Information
Countries
Cook Islands
Cambodia
China
Fiji
Indonesia
Laos
Palau
Papua New Guinea
Philippines
Samoa
Thailand
Timor-Leste
Tonga
Tuvalu
Vanuatu
Albania
Azerbaijan
Belarus
Bosnia and Herzegovina
Bulgaria
Croatia
Czech Republic
Estonia
Georgia
Kazakhstan
Macedonia
Serbia
Slovakia
Slovenia
Tajikistan
Turkey
Turkmenistan
Ukraine
Uzbekistan
Antigua and Barbuda
Argentina
Belize
Bolivia
Brazil
Chile
Colombia
Costa Rica
Dominica
Dominican Republic
Ecuador
El Salvador
Grenada
Guatemala
Guyana
Haiti
Honduras
Jamaica
Panama
Paraguay
Peru
Saint Kitts and Nevis
Saint Lucia
Suriname
Trinidad and Tobago
Uruguay
Venezuela
Iran
Algeria
Bahrain
Djibouti
Egypt
Iraq
Jordan
Lebanon
Libya
Oman
Syria
Tunisia
Yemen
Palestine
Afghanistan
Bangladesh
Bhutan
India
Pakistan
Sri Lanka
Uganda
Angola
Benin
Botswana
Burkina Faso
Burundi
Cameroon
Central African Republic
Chad
Comoros
Democratic Republic of the Congo
Côte d'Ivoire
Equatorial Guinea
Eritrea
Ethiopia
Gabon
Gambia
Ghana
Guinea
Guinea-Bissau
Lesotho
Liberia
Madagascar
Niger
Nigeria
Rwanda
Sao Tome and Principe
Senegal
Seychelles
Sierra Leone
Somalia
South Africa
South Sudan
Sudan
Tanzania
Togo
Solomon Islands
Zambia
Zimbabwe
Region
East Asia and Pacific
Europe and Central Asia
Middle East and North Africa
South Asia
Sub-Saharan Africa

The Forest Investment Program (FIP), is one of three targeted programs that make up the Strategic Climate Fund (SCF) of the Climate Investment Funds (CIFs).

The FIP addresses the drivers of deforestation and forest degradation by supporting developing countries’ efforts to reduce deforestation and forest degradation (REDD), while promoting sustainable forest management. FIP provides financing to developing countries for developing institutional capacity, and for public and private investments that are identified through REDD readiness strategies.

Along with supporting the public sector, FIP's Private Sector Set Asides (PSSAs) allocate concessional financing to projects that engage the private sector in sustainable forestry. The FIP’s Dedicated Grant Mechanism for Indigenous Peoples and Local Communities (DGM), is designed and led by representatives of indigenous peoples groups and local communities to set priorities and implement programs aimed at conserving their natural environment, and to enhance capacity in engaging with local, national, and international REDD+ dialogue and actions.

The FIP has four objectives:

  1. Initiate and facilitate transformational change in developing countries’ forest related policies and practices;
  2. Facilitate the leveraging of additional and sustained financial resources for REDD, including through a possible UNFCCC forest mechanism, leading to an effective and sustained reduction of deforestation and forest degradation, and enhancing the sustainable management of forests;
  3. Pilot replicable models to generate understanding and learning of the links between the implementation of forest-related investments, policies and measures and long-term emission reductions and conservation, sustainable management of forests and the enhancement of forest carbon stocks in developing countries.; and
  4. Provide valuable experience and feedback in the context of the UNFCCC deliberations on REDD.

 

Support Provider

8 donor countries: Australia, Denmark, Japan, Norway, Spain, Sweden, UK, US

Purpose of Support
Project and program implementation
Co-Financing Requirements

FIP investments should leverage additional financial resources, including from the private sector where feasible. Co-financing from the FIP may be provided through a variety of financing instruments utilized by the MDBs for investment and development policy lending.

Financial Instruments Offered
Grants
Contingent grants
Concessional loans
Market-rate loans
Equity
Guarantees
Monitoring and Reporting Procedures

The CIF monitors and reports on the FIP contributions to GHG reductions, enhancement of carbon stocks, and livelihood co-benefits, such as access to finance, technical assistance, and new jobs. Projects and programs also report on other relevant co-benefits, including biodiversity and environmental services, governance, tenure, and capacity building. The FIP M&R process has a participatory approach, requiring all stakeholder groups to participate in an annual workshop to assess the progress on the performance of the implementation of their national FIP investment plan. This approach empowers beneficiaries, builds country ownership, and ensures accountability and transparency. The country-level information is complemented with annual project-level progress information from MDBs, combining quantitative and qualitative methods to collect, analyze, and generate knowledge and lessons in implementing FIP investments. The CIF Administrative Unit collects and aggregates all data and prepares an annual results report (FIP Operational and Results Report) to inform the FIP Sub-committee. The CIF is also part of the International Aid Transparency Initiative (IATI), a global open data initiative that unites organizations working on international development, ranging from government donors to regional NGOs, foundations, and trusts.

Organizational and Decision Making Structure

FIP is a program of SCF and is subject to SCF governance. The governance and organizational structure of the SCF includes an SCF Trust Fund Committee, SCF Sub-Committee(s), an MDB Committee, the CIF Administrative Unit, and a Trustee.

  • The SCF Trust Fund Committee is established to oversee the operations and activities of the SCF. It is composed of eight representatives from contributor countries, eight representatives from eligible recipient countries, and 13 observers.
  • The SCF Sub-Committee(s) are responsible for approving programming priorities, operational criteria, and financing modalities for the SCF Program. They also approve SCF Program financing for programs and projects. Decisions are reached by consensus. Each SCF Sub-Committee is composed of up to six representatives from donor countries and six representatives from eligible countries, selected on a regional basis.
  • The MDB Committee facilitates collaboration, coordination and information exchange among the MDBs.
  • The CIF Administrative Unit supports the work of the CIF, including the SCF.
  • The Trustee is the International Bank for Reconstruction and Development (World Bank).
Eligible countries

Recipient countries may benefit from the FIP provided they:

  • Meet Official Development Assistance (ODA) eligibility criteria according to OECD/DAC guidelines;
  • Have an active MDB country program (for this purpose, an “active” program means that an MDB has a lending program and/or on-going policy dialogue with the country).

Twenty-three (23) countries have been selected for the implementation of pilots (list of countries available here).

Eligible Countries and Geographic Regions
East Asia and Pacific
Cook Islands
Cambodia
China
Fiji
Indonesia
Laos
Palau
Papua New Guinea
Philippines
Samoa
Thailand
Timor-Leste
Tonga
Tuvalu
Vanuatu
Vietnam
Europe and Central Asia
Albania
Azerbaijan
Belarus
Bosnia and Herzegovina
Bulgaria
Croatia
Czech Republic
Estonia
Georgia
Kazakhstan
Macedonia
Serbia
Slovakia
Slovenia
Tajikistan
Turkey
Turkmenistan
Ukraine
Uzbekistan
Latin America and Caribbean
Antigua and Barbuda
Argentina
Belize
Bolivia
Brazil
Chile
Colombia
Costa Rica
Dominica
Dominican Republic
Ecuador
El Salvador
Grenada
Guatemala
Guyana
Haiti
Honduras
Jamaica
Panama
Paraguay
Peru
Saint Kitts and Nevis
Saint Lucia
Saint Vincent and the Grenadines
Suriname
Trinidad and Tobago
Uruguay
Venezuela
Middle East and North Africa
Iran
Algeria
Bahrain
Djibouti
Egypt
Iraq
Jordan
Lebanon
Libya
Oman
Syria
Tunisia
Yemen
South Asia
Palestine
Afghanistan
Bangladesh
Bhutan
India
Pakistan
Sri Lanka
Sub-Saharan Africa
Uganda
Angola
Benin
Botswana
Burkina Faso
Burundi
Cameroon
Central African Republic
Chad
Comoros
Republic of Congo
Democratic Republic of the Congo
Côte d'Ivoire
Equatorial Guinea
Eritrea
Ethiopia
Gabon
Gambia
Ghana
Guinea
Guinea-Bissau
Lesotho
Liberia
Madagascar
Niger
Nigeria
Rwanda
Sao Tome and Principe
Senegal
Seychelles
Sierra Leone
Somalia
South Africa
South Sudan
Sudan
Tanzania
Togo
Solomon Islands
Zambia
Zimbabwe
Information on how to
Understand steps to access
All CIF funds have been fully committed. Information on CIF Beneficiary Countries can be found here.