The World Bank Implementation Status & Results Report Chile REDD+ Emissions Reductions Program (P160277) Chile REDD+ Emissions Reductions Program (P160277) LATIN AMERICA AND CARIBBEAN | Chile | Environment, Natural Resources & the Blue Economy Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2020 | Seq No: 6 | ARCHIVED on 07-Apr-2023 | ISR55438 | Implementing Agencies: Agencia Chilena de Cooperacion Internacional para el Desarrollo (AGCID), Corporacion Nacional Forestal (CONAF), Instituto Forestal (INFOR) Key Dates Key Project Dates Bank Approval Date: 27-Nov-2019 Effectiveness Date: 04-Jun-2021 Planned Mid Term Review Date: 23-Jan-2023 Actual Mid-Term Review Date: 30-Jan-2023 Original Closing Date: 31-Dec-2025 Revised Closing Date: 31-Dec-2025 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to incentivize reduced deforestation, forest degradation and the enhancement of forest carbon stocks (REDD+) in selected regions of southern Chile, through payment of verified emission reductions (ER) and to ensure that paid amounts are distributed according to an agreed benefit sharing plan. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The Country submitted the first Emissions Reductions Monitoring Report (ERMR) for the retroactive period (2018 and 2019) on June 30, 2021. Considering that results show negative Emission Reductions, the WB and FCPF have identified alternatives to support the counterparts to find a potential solution, through: (i) review of uncertainty levels and methodological approach; and (ii) developing a strong technical justification to provide a clearer understanding of the results obtained to date, potentially demonstrating that the country is facing a Force Majeure event. The proposed alternatives were accepted by the Ministry of Agriculture through a formal response on December 28, 2021. The two analyses have been completed and the country is currently analyzing the results. 4/7/2023 Page 1 of 4 The World Bank Implementation Status & Results Report Chile REDD+ Emissions Reductions Program (P160277) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Low Low Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Substantial Substantial Institutional Capacity for Implementation and -- Moderate Moderate Sustainability Fiduciary -- Moderate Moderate Environment and Social -- Moderate Moderate Stakeholders -- Substantial Substantial Other -- Moderate Substantial Overall -- Moderate Moderate Results PDO Indicators by Objectives / Outcomes Payments for measured, reported and verified ERs in selected regions and to distribute ER payments IN01266843 ►Volume of Emissions Reductions that have been measured and reported by the Program Entity, verified by a Third Party, and transferred to the FCPF Carbon Fund (tCO2e) (Tons/year, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5,200,000.00 Date 25-Nov-2019 21-Dec-2022 06-Apr-2023 31-Dec-2025 The indicator measures the Volume (i.e. ERs) aspect of the transaction. It is conditioned on the existence and operation of a National Forest Monitoring system to measure and report the ERs generated by the ER Program. All ERs generated by the ER Program during each Reporting Period are subject to Verification Comments: by an Independent Reviewer contracted by the WBG in consultation with the Program Entity, transfer of ERs require the set-up of a Registry capable of receiving, holding and transferring ERs to the Carbon Fund. IN01266844 ►Amount of payments made by the FCPF Carbon Fund for Emission Reductions generated by the Program (USD million) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 26,000,000.00 Date 25-Nov-2019 21-Dec-2022 06-Apr-2023 31-Dec-2025 4/7/2023 Page 2 of 4 The World Bank Implementation Status & Results Report Chile REDD+ Emissions Reductions Program (P160277) The indicator measures the financial value aspect of the transaction based on the pricing approach agreed between the Program Entity and the Carbon Fund. It is conditioned on the establishment of Comments: adequate financial management arrangements for the transfer of the funds from the World Bank to the Program Entity. IN01266845 ►Emission Reductions payments distributed in accordance with agreed Benefit Sharing Plan and arrangements (Yes/No) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 25-Nov-2019 21-Dec-2022 06-Apr-2023 31-Dec-2025 The indicator seeks to capture the development aspects of the transaction. As per the General Conditions of the ERPA, ERPA payments have to be distributed based on a Benefit Sharing Plan that has been Comments: deemed acceptable to the WBG. ER Monitoring Reports will have to provide evidence satisfactory to the WBG that the Benefits have been shared in accordance with the Benefit Sharing Plan. Intermediate Results Indicators by Components Given the nature of Project it does not have Intermediate Indicators IN01266881 ►N/A (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 25-Nov-2019 21-Dec-2022 06-Apr-2023 31-Dec-2025 N/A Comments: Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P160277 TF-B1592 Effective USD 24.70 24.70 0.00 0.00 24.70 0%% P160277 TF-B1593 Effective USD 1.30 1.30 0.00 0.00 1.30 0%% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date 4/7/2023 Page 3 of 4 The World Bank Implementation Status & Results Report Chile REDD+ Emissions Reductions Program (P160277) P160277 TF-B1592 Effective 27-Nov-2019 04-Dec-2019 04-Jun-2021 31-Dec-2025 31-Dec-2025 P160277 TF-B1593 Effective 27-Nov-2019 04-Dec-2019 04-Jun-2021 31-Dec-2025 31-Dec-2025 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 4/7/2023 Page 4 of 4