MADAGASCAR ATIALA ATSINANANA EMISSION REDUCTION PROGRAM. Overview Paris Juin 2018

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MADAGASCAR ATIALA ATSINANANA EMISSION REDUCTION PROGRAM Overview Paris Juin 2018

Alignment with National Priorities and Commitment Contribution to the national objectives 2030: Climate change and environment, sustainable management of natural resources and economic development (NDC, National Development Plan, Environmental Plan for Sustainable Development, National Strategy for Forest Landscapes Restoration, National policy of land use planning, New policy of energy, Agricultural an fisheries sectorial program, etc ) Political engagement for the PRE-AA and REDD+ POLFOR adopted by decree n 2017 376 du 16 mai 2017 REDD+ national strategy adopted by decree n 2018-500 du 30 mai 2018

National Process Preparation Phase R-PP approved National REDD+ Strategy, REDD+ Decree 2008 2015 2018 2019 ER-PIN approved Preparations Consultations Technical work Emissions Reduction Program (PRE) submission Implementation Phase

Jurisdiction and Key Features 6.9 million ha 3 450 000 inhabitants 2 million ha of forest (50 % of humid forest) 19 main watersheds 02 large irrigated rice production areas 14 protected areas with hight biodiversity Expected emission reductions: 13.7 millions tco2 Eq

Deforestation & degradation drivers DIRECT CAUSES Expansion of agriculture Slash and burn, forest conversion to annual and permanent crops, pasture fires Unsustainable firewood and charcoal consumption Wood harvesting (i) low yield, and (ii) illegal Mining in forest Livestock Leading to INDIRECT CAUSES Demography and migration Market growth, low efficiency of technology Weakness of governance Land tenure and weakness in territorial planning

ER-P : New approach for forest management Conservation area approach Conservation and community developement: PA, green belt ERP: Forest sustainable management and rural developement Intersectoral and landscape approach, decentralized, transformational, adaptative, evolutive

Atiala Atsinanana A vision of rural transformation A jurisdictional approach to REDD+, centered on communal land-use planning, forest conservation tied to sustainable agriculture, private sector partnerships, and rural povery reduction Leading to Project-level experience with carbon finance yielding mixed results Relevant commodity markets increasingly senstitive to environmental impacts Slash-and-burn agriculture destroying forests and livelihoods Government commitment to climate, forest, and rural poverty goals

Forest Crosscutting Agricultural Energy Principal Interventions Optimize production systems Promote improved fuel wood transformation and use, Improve the management of cash crops using agroforestry systems Develop renewable energy Support the development of small and medium-sized enterprises Improve the management of forest areas using the landscape approach Promote private/community reforestation, rehabilitate degraded forest areas Reinforce the forest monitoring system and regulatory text enforcement Enhance benefits delivered by ecosystem services Reinforce decentralized management and coordination of mining and agriculture Reinforce land security Align the legal framework with the institutional one conducive to good governance

Program Budget & Financing Malagasy Government contribution - 6 national programs aligned with REDD+ - Loan to PADAP - In-kind staff contributions to REDD+ program FINANCING SOURCES 2019-2025 Finance secured (PADAP, CASEF, MAKIRA, CAZ, MBG, MNP) 61 m$ Finance non-secured 14.7 m$ Carbon revenue expected from ERPA CF 65 m$usd TOTAL Finance 140.8 m$ 2019-2025 Agriculture 43.1 m$ (41%) Forest 53.5 m$ (51%) Energy 2.2 m$ (2%) Enabling Activities 5.6 m$ (2%) Monitoring 0.6 m$ (1%) 2025-2028 Total Activities 2019-2025 105 m$ Total Activities 2025-2028 28.6 m$ ER-P operation costs 7.1 m$ GAP in financing 2019-2020-2021= 3.47 m$ advance payment expected to be requested Total 140.8 m$

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 GHG emissions and removals Forest reference Level Forest definition Min area : 1ha Min canopy cover: 30% Min height of trees: 5m GHG emissions and removals estimated with 2006 IPCC GL Emission Factors Forest inventory by DVRF and PERR-FH 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 Reference period : 2006-2015 Forest cover change data Produced by 0 operational Geomatics Lab -2,000,000 "GHG emissions reference period" GHG emissions business as usual Reference Level "GHG removals reference period" GHG removals business as usual Deforestation: 16,700 ha/year (0,76%) Degradation: 28 268 ha/year Enhacement: 1270 ha /year

Measurement, Monitoring & Reporting General Direction of forests Collection and update of forestry related activities Project, programs and local communities BNC-REDD+ Supervision and coordination Laboratoire géomatique REDD+ project register Technical support University Associated Organizations Monitoring report On ERP level FCPF Carbon Fund External Verification Delivery of: i) Activity data ii) Emission factors iii) Summery of mitigation activities BUR/NC On national level Technical evaluation BNC-CC UNFCCC focal point National Communications CCNUCC External Validation Compilation of GHG Inventory and submission of NCs and BURs Climate Project Register Other data sources for GHG Inventory

Estimated Emission Reductions Reference level Emissions and removals Emission reductions or Uncert. NPR ER program enhanced removals buffer buffer Year Def. Degr Enhance. Def. Degr Enhance. Def. Degr Enhance. Total 8% 28% 2S ER Available to CF 2019 9,481,642 2,011,023-19,357 8,243,545 1,748,427-68,705 1,238,098 262,596-49,348 775,021 62,002 199,645 513,374 2020 9,481,642 2,011,023-38,714 8,046,353 1,706,603-193,565 1,435,289 304,420-154,851 1,894,560 151,565 488,039 1,254,957 2021 9,481,642 2,011,023-58,071 7,473,809 1,585,169-352,009 2,007,833 425,854-293,938 2,727,626 218,210 702,636 1,806,779 2022 9,481,642 2,011,023-77,428 6,434,780 1,364,794-523,026 3,046,863 646,229-445,598 4,138,689 331,095 1,066,126 2,741,468 2023 9,481,642 2,011,023-96,785 5,533,657 1,173,669-739,715 3,947,985 837,354-642,930 5,428,270 434,262 1,398,322 3,595,686 2024 9,481,642 2,011,023-116,142 5,412,692 1,148,013-930,268 4,068,951 863,010-814,126 5,746,088 459,687 1,480,192 3,806,208 TOTAL 15,745,019 3,339,463-2,400,792 20,710,254 1,656,820 5,334,961 13,718,472

Safeguards process, participants, and status Validation National and regional REDD+ platfoms Strategic orientation BNC-REDD+ CIME Quality control by engaging independant observer Strategic Environmental and Social Assessment (SESA), submitted Safeguards technical group. Safeguards information system (PCI-REDD+). Management, validation et diffusion of information Independant observer - ESMF submitted to WB - RPF under preparation - PF under preparation - Pest management framework validted Advice, technical support Periodical report Information transmission Project implementers (National, regional, local)

Benefit Sharing Mechanism Principles 6 categories of use of carbon revenues. Beneficiaries: promoters of REDD+ activities (Local communities, small producers ) BSP approach is activity based not recipientbased The elaboration of the benefit-sharing plan will establish the relative amounts committed to each activity category

Stakeholder consultation & participation STEERING COMMITEE Consultations and political validation General secretaries from relevant ministries REDD+ PLAFTORMS (NATIONAL AND REGIONAL) Strategic consultations and planning / prioritization Public administration, Civil society, Local based community federation, Private Sector, Technical and Financial Partners, National Environmental Organizations, Universities and Research Institutions, Regional Stakeholders, DREEF, Cantons CSO REDD+ PLATFORM TECHNICAL GROUPS Rights and interests of local community Technical input to the issues of safeguards and carbon methodologies Associations, coalitions, NGOs, initiatives, individuals -Technical Group on Safeguards -Carbon Methodology Group

Private Sector Engagement Development of Private Sector Investment Blueprint for ER-P Prioritization of investments in cocoa, coffee, cloves, vanilla Developing concept note for GCF Private Sector Facility In discussions with IFC and client on sustainable coffee production project In discussions with boutique chocolate brand for sustainable cocoa production project BSM designed with a private sector window to co-invest in priority agriculture, energy, and forestry projects EIB/Althelia investment fund to support private sector projects in ER-P area