Forest Carbon Partnership Facility (FCPF) 14 th Participants Committee Meeting (PC14) Washington, DC, Tuesday, March 19, 2013
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1 Frest Carbn Partnership Facility (FCPF) 14 th Participants Cmmittee Meeting (PC14) Washingtn, DC, Tuesday, March 19, 2013 Opening Remarks by Sri Mulyani Managing Directr, The Wrld Bank INTRODUCTION Excellencies Ministers and Ambassadrs, Ladies and Gentlemen, Gd mrning. I d like t extend a warm welcme t all f yu wh are here tday t participate in the Furteenth Meeting f the Participants Cmmittee f the Frest Carbn Partnership Facility. And t thank H.E Henri Djmb, Minister f Frest Ecnmy and Sustainable Develpment f the Republic f Cng, fr hsting the previus meeting f the Participants Cmmittee in Brazzaville in Octber 2012, and allwing visitrs t becme familiar with his cuntry s advances in frest management and nature cnservatin. I wuld als like t extend a special welcme t Mr. Tdd Stern, the US Special Envy fr Climate Change. We appreciate the strng leadership frm President Obama and Secretary f State Jhn Kerry n this issue. We knw abut yur persnal cmmitment and utstanding wrk which has been and cntinues t be crucial as we mve frward n the climate agenda. We are glad t have yu here with us tday and lk frward t yur remarks. It is a great pleasure t pen this meeting. The wrk f this imprtant partnership is clse t my heart. Befre I jined the Wrld Bank, I served as the Minister f Finance in my hme cuntry Indnesia, an archipelag f ver 17,000 islands cvered with trpical frest that harbrs ne f the highest levels f bidiversity in the wrld. At that time, the Gvernment f Indnesia entered int a grundbreaking bilateral agreement n REDD+. Nrway cmmitted t pay up t ne billin USD if Indnesia reduced greenhuse gas emissins frm defrestatin and degradatin f frests and peat lands. I understand that significant prgress has been made since: a mratrium n new frest cncessins, a REDD+ Strategy frmulated, and a ne map has been drawn. 1
2 In Bali, Indnesia, in 2007, the Wrld Bank launched The Frest Carbn Partnership Facility. It was develped because frests are mre imprtant left standing than cut. The partnership helps t reduce defrestatin and frest degradatin by cmpensating develping cuntries fr carbn dixide reductins realized by maintaining their frests. Six years n, this is mre imprtant than ever. Why? - CLIMATE CHANGE The Wrld Bank spnsred reprt, Turn Dwn the Heat, spelled ut the cnsequences f a 4 degree C warmer wrld Climate change wuld cause seas t rise by 1.5 t 3 feet, dramatically affecting the lives f hundreds f millins f city dwellers; large sectins f the wrld wuld becme much, htter, prviding huge challenges fr grwing crps; and extreme weather events that were seen as nce in a lifetime ccurrences culd start happening every year. Climate change f this magnitude threatens t rll back decades f develpment. It is a devastating descriptin f a wrld that wuld affect each ne f us, a wrld where the pr will suffer mst. This is nt nly a matter between the develped and the develping wrld, but between tday s and tmrrw s generatins. We we it t ur children and grandchildren and all future generatins t change the current climate trajectry f ur planet. We need t reduble ur effrts t prepare fr a 2 degree wrld and avid a 4 degree wrld. Over the last few mnths, the President f the Wrld Bank Grup, Jim Kim, has put climate change high n ur agenda. Climate change ges t the very cre f hw we g abut ding ur business and achieving ur missin: ending pverty and sharing increased prsperity. T make prgress in this area, President Kim has put frward fur bld actins that wuld make the biggest difference n climate change: catalyze a predictable price n carbn remve harmful fssil fuel subsidies create lw-carbn climate resilient cities and mve frward n climate smart agriculture 2
3 This ambitius agenda makes the wrk f the Frest Carbn Partnership Facility ever mre relevant. The FCPF is, at its cre, the first attempt f large scale at putting a price n frest carbn. This attributes a mnetary value t the carbn stred in cnserved frests in cntrast t the ptential revenues frm lgging r ther activities. The Partnership is pineering effrts t develp a system f incentives and perfrmance-based payments that recgnize the value f frest carbn and the ther attributes f frests, including bidiversity, livelihds, and cultures. Cnnecting the dts: CLIMATE SMART AGRICULTURE The fate f frests is inextricably related t agricultural practices. Frests will cntinue t be threatened as lng as mre land is needed fr fd prductin. Cnversely, there can t be sufficient fd withut healthy frests. Frests regulate glbal rainfall patterns and lcal micrclimates. Trees reduce ersin and help restre degraded lands - making them nce again available fr crp prductin. Frests stre carbn and harbr bilgical diversity. We therefre need t act in a cncerted and integrated manner t enhance fd security, prtect frest ecsystems, and mitigate greenhuse gas emissins t keep us in a 2-degree wrld. Climate-smart agriculture can therefre be a triple win increasing yields and incme, making farms mre resilient t climate change, and helping t sequester carbn in the sil. We knw that this is pssible. Studies frm Brazil and the Cng Basin the hmes f the largest frest resurces in the wrld - are shwing that we can meet the wrld s increasing demand fr fd withut having t cut trees, that there is sufficient land t be cultivated withut having t encrach n precius frests. Planting trees n land which is already used fr agriculture can help t restre sil fertility, increasing yields and incme and stre carbn. Beynd agriculture there are als strng links t ther sectrs like transprt and extractive industries that we have t be aware f and address apprpriately in ur effrts t fster frestfriendly, sustainable develpment. 3
4 We therefre need t address the challenge frm a landscape perspective s that we can integrate the management f land, water, frests and ther resurces while prmting equitable, sustainable use and cnservatin. Such a landscape apprach can bst husehld incmes and increase the resilience f the rural pr against the adverse impacts f a changing climate. The Wrld Bank has been assciated with landscape restratin in many cuntries, frm China t Albania, frm Mldva t Csta Rica, frm Madagascar t Kenya Such appraches wrk. They have been tested. The task nw is t scale them up. By wrking n the natinal level the Partnership prvides a crucial framewrk which helps gvernments t put frests at the cre f this discussin. We cannt d it alne- PRIVATE SECTOR Putting a price n frest carbn shuld ultimately help engage the private sectr t invest in REDD+. Many cmpanies understand that climate change threatens their prfits in the lng term. Withut water n sft drinks. Withut cca n chclate. The effects f the flds in Thailand in 2011 spread acrss brders and disrupted supply chains all ver the wrld. Cnsumers are increasingly calling fr sustainable prductin and businesses are listening. A number f influential cmpanies, in bth retail and manufacturing, have recently cmmitted t making their prduct supply chains defrestatin-free. Fr the private sectr t stay engaged in REDD+ we have t make sure that the right cnditins are there fr them t be invlved: it needs t be in the private sectr s interest t green the supply chain, t frest-prf the surcing f natural resurces and the manufacturing f gds, and t supprt sustainable land management practices. I see a huge pprtunity fr the Frest Carbn Partnership Facility and thers t stimulate partnerships between crpratins, gvernments and civil sciety t this end. I als see an imprtant rle fr the Wrld Bank t help vercme barriers t private sectr engagement, 4
5 such as paque gvernance r cmplex land tenure challenges and t help small-scale prducers t cnnect with large glbal cmpanies. CONCLUSION The Frest Carbn Partnership Facility is utstanding because thrugh its wrk it prvides a seat at the table fr all parties invlved including indigenus peple and civil sciety frm develping cuntries. I am happy t see many representatives here tday and want t tell yu that we need yur vices and cmmitment t take this partnership frward. This Partnership hlds a unique prmise that it is pssible t preserve the frests f ur wrld, step up t the climate challenge and prvide peple with pprtunities fr a better life. Sme expectatins nt least regarding financial flws have nt yet been fulfilled and there cntinue t be challenges n the way ahead. But I am cnvinced that building n the strength f this partnership it is pssible t vercme them and realize the bjectives we set ut fr urselves. Finally, I wuld like t acknwledge the wrk f Benît Bsquet wh has s ably steered the Frest Carbn Partnership Facility since its inceptin. As yu knw, he has just taken the helm f an envirnmental and natural resurces unit in the Africa regin f the Wrld Bank. Luckily, he will cntinue t be assciated with the wrk f the FCPF, but frm a different vantage pint. Thanks fr yur excellent wrk, Benît, and we lk frward t seeing yu shine in yur new psitin! As we wrk t name an equally cmmitted successr t Benit, I want t assure yu that we are deeply cmmitted t this wrk. We will d ur part t realize the prmise FCFP hlds and t make it a success. Thank yu. 5
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