Investor Presentaiton
Foto: Acervo Secom AC
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REDD+ in the State of Acre - Brazil
REDD+ in the State of Acre - Brazil
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Germany's support to the Brazilian
State of Acre
Recognizing Acre's environmental leadership
and achievements in reduced deforestation,
the German government supports Acre's State
government in further strengthening forest and
climate protection in alignment with national
Brazilian policies. As a key component of this
partnership, the two governments agreed to
pilot a results-based REDD+ system in the
context of Official Development Assistance
(ODA): Germany provides funding for emission
reductions that have been achieved as a result
of reduced deforestation in the State of Acre.
In 2012, the Federal Ministry for Economic
Cooperation and Development (BMZ) committed
REDD Early Movers (REM) Programme
16 Mio. EUR in results-based finance to be
implemented through the German REDD Early
Movers (REM) Programme from 2012-2017. In
2013, the Fed-eral Ministry for the Environment,
Nature Conservation, Build-ing and Nuclear
Safety (BMUB) strengthened the Programme
with additional 9 Mio. EUR for results-based
payments.
This brief summarizes the main features of the
first phase of the REM Programme in Acre, Brazil,
setting the framework for results-based finance,
fund management and investment as well as
lessons learned from implementation.
Launched at the Rio+20 Conference in June 2012, REM is an innovative initiative of German Offi-
cial Development Assistance (ODA) that re-wards pioneers of forest protection and climate change
mitigation. It targets countries or regions that have already taken initiative to pro-tect forests. The
Programme provides performance-based payments for verified emission reductions from defo-
restation, thereby piloting REDD+ in line with the decisions agreed under the United Nations Fra-
mework Convention on Climate Change (UNFCCC).
The Programme is implemented jointly by KfW Development Bank and German Agency for
International Cooperation (GIZ), and commissioned by the German Federal Ministry for Economic
Cooperation and Devel-opment (BMZ). In 2012, the Brazilian State of Acre was the first one to recei-
ve results-based finance for verified emission reductions. In 2013 and 2014, agreements were deve-
loped with Ecuador and Colombia, respectively. REM does not engage in the trading or offsetting of
greenhouse gas emissions and does not support market mechanisms. It has entered partnerships
with the German Ministry for the Environ-ment, Nature Conservation, Building and Nuclear Safety
(BMUB) and with other international donors, namely Norway and the United King-dom, and wel-
comes further cooperation.
Objective
The objective of the REM Programme in Acre
is to support the reduction of emissions from
deforestation in the Brazilian State of Acre. In this
manner, the Programme pilots REDD+ perfor-
mance-based finance in consistency with the United
Nations Framework Convention on Climate Change
(UNFCCC) and aims to contribute to climate and
forest protection.
By rewarding results, REDD+ funding supports
What is rewarded?
The Programme rewards emission reductions
that derive from reduced gross deforestation at a
value of five US Dollars per ton of carbon dioxide
How are emission reductions
calculated?
Emission reductions are calculated from
changes in forest cover in the reference region,
Acre's state jurisdiction.
As a benchmark, forest cover changes are
measured against a reference level, estimated based
on historical average deforesta-tion rates. In the
case of the REM Programme in Acre, this means that
deforestation that occurred during a "forest year"
(August to July) in the period 2011-2015 is compared
to the average deforestation that occurred during the
Acre in consoli-dating and expanding its forest
and climate protection policies and programmes.
Funds are used to strengthen the Incentive System
for Environmental Services (SISA) and to provide
tangible benefits to local actors protecting forests
and incentives to further reduce deforestation.
equivalent. Payments under this agree-ment are
based on emission reductions achieved between
2011 and 2015.
reference period (2001-2010). The difference then
constitutes the basis for emission reductions (ER).
To ensure Acre's reference level's comparability
with the na-tional level, REM Programme operates
based on the same meth-odology and data
(PRODES), used to establish the Amazon Fund's
Reference Level.View entire presentation