Investor Presentaiton

22 REDD+ in the State of Acre - Brazil REDD+ in the State of Acre - Brazil 23 23 • • • High complexity: despite high capacities wi- thin Acre's State gov-ernment, REDD+ imple- mentation remains demanding with regard to technical and operational requirements (e.g. MRV, carbon account-ing, REDD+ mechanism, and safeguards). Conceptual basis of results-based finance and benefit-sharing: in the operational reality of everyday implementation, it is difficult to maintain the focus on the conceptually chal- lenging elements of the programme design. Need for adaptive management as defores- tation is a moving target and the political and ecological environment is subject to change. The approach and measures on how to reduce • • deforestation and to conserve forests need to be constantly revisited and adapted. Targeting vs. pulverization of funds: given the risk that limited funds are used for a variety of purposes, there is a need to maintain a strate- gic focus in accordance with the sub-program- mes as well as with the stock-and-flow princi- ples. Addressing climate risks (e.g. droughts, floods) with limited funds poses additional challenges for maintaining a programmatic focus that benefits stakeholders at the local level. Operating in tropical forest regions: dis- tances that seem small on a map pose huge Logistical challenges in rainforest environ- • ments. As often only small distances can be covered during a long period of time (e.g. 100 km in five days by boat), operating in re- mote forested areas complicates the imple- mentation and monitoring of pro-grammes. Administration capacities at the local le- vel: Despite significant improvements over the last decade, the capacity to administer funds by producers' organizations and, es- pecially, indigenous organ-izations, remains limited. This results in slower disbursement to these groups than desired as well as the need for heightened admin-istrative support by the programme management to these organi-zations. • • Vertical integration of the REDD+ system: the REDD+ system at the national level is being built up and consolidated. Establishing co-herence across administrative levels needs constant attention. ER demand still slow: in a context where ER results exceed available funding the goal was that additional results-based finance by other sources would complement REM funding. This is materializing much slower than expected.

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