Investor Presentaiton

Lessons Learned The REM Programme has been operational in Acre since the end of 2012, when the first results- -based payment was made. With five years of im- plementation experience, a series of elements can be identified as decisive for the implementation of REM in Acre: • Political leadership: political will to pursue an agenda focused on sustainability, forest protec- tion and REDD+. Programmatic implementation: REM strongly builds on the robust policy framework and rela- ted implementation structures that were esta- blished in Acre, bringing several advantages: REM was not set up as a separate project that needs to be managed like a traditional develop- ment project by the State government. Instead it was fully integrated into the existing structu- res and programmes, enabling increased cove- rage and a fast and scaled-up implementation The implementation through an innovative envi- ronmental ser-vices system (SISA) that chan- nels REM resources to pro-grammes allows results-based finance to reach beneficiaries directly and efficiently. » Using programmes for benefit-sha- >>> ring is particularly appro-priate in the absence of monitoring and financial structures that can channel resources to individual land-holders (e.g. op-e- rational payment for environmental services programmes). Efficiency in benefit-sharing: within the REM Programme in Acre, 70% of BMZ funds and 90% of BMUB funds • benefit stakeholders at the local Level, contributing to high social and political sustainability. Stock-and-flow approach: By rewarding stakeholder groups who contribute to both protecting forests (stock) as well as to redu- cing deforestation (flow), an equitable, effi- cient and effective balance can be negotiated in the contentious dynamics of land manage- ment. This approach can increase socio-po- litical sustainability. This allows channelling more resources to Indigenous Peoples, for instance, compared to an approach that only distributes funds based on re-duced defores- tation contributions. Flexibility: although allocated for specific pro- grammes, REM funds remain relatively flexible and can be used strategically, for instance to address changes in deforestation patterns. As an example, REM supported a task force to address deforestation hotspots after de-forestation in- creased slightly in 2014. Participation: in the context of SISA and REM, the establishment of the CEVA has been funda- mental for institutionalizing consultations and active involvement by civil society actors. Even though its functioning can still be improved, participation in design, implemen-tation and monitoring of SISA has become part of the poli- tical land-scape and of SISA's routine. Elements that pose risks, need further consi- deration or can be im-proved in the future include the following:

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