The World Bank Implementation Status & Results Report Guatemala Emissions Reduction Program (P167132) Guatemala Emissions Reduction Program (P167132) LATIN AMERICA AND CARIBBEAN | Guatemala | Environment, Natural Resources & the Blue Economy Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2022 | Seq No: 4 | ARCHIVED on 22-Aug-2023 | ISR56286 | Implementing Agencies: INAB (National Forest Institute), Ministry of Public Finance, Republic of Guatemala Key Dates Key Project Dates Bank Approval Date: 31-Aug-2021 Effectiveness Date: 28-Feb-2023 Planned Mid Term Review Date: 30-Aug-2024 Actual Mid-Term Review Date: Original Closing Date: 31-Dec-2025 Revised Closing Date: 31-Dec-2025 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) To make payments to the Program Entity for measured, reported and verified Emission Reductions (ER) from reduced deforestation and forest degradation, as well as the enhancement of forest carbon stocks (REDD+) in targeted areas of Guatemala, and to ensure that paid amounts are distributed according to an agreed Benefit Sharing Plan (BSP). Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Payment for Measured, Reported and Verified ERs:(Cost $52.50 M) Distribution of ER Payments According to the Benefit Sharing Plan Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The ER Program became effective on February 28, 2023. The Conditions of Effectiveness encompassed the final Benefit Sharing Plan (BSP), evidence of Guatemala's ability to transfer Title to ERs, the subsidiary Agreement between MINFIN and INAB, the assessment of ER Program consistency with Safeguards Plans, and an advanced draft Program Operational Manual (POM). In June 2023, INAB finalized the Emission Reductions Monitoring Report (ERMR) for the first Reporting Period (January 1 to December 31, 2020). The Independent Validation and Verification of the report was launched in July 2023. The first payment is therefore expected around March 2024, contingent on the ERMR results and assuming the other pending requirements have been met. Among these, INAB is also finalizing Annexes 1-3 on Environment and Social management, BSP implementation, and generation of information on non-carbon benefits, as well as priority sections of the POM including Financial Management procedures for ERPA disbursements and payments. Finally, INAB has also started monitoring ERs for the second monitoring period of 2021-2022. 12/21/2023 Page 1 of 4 The World Bank Implementation Status & Results Report Guatemala Emissions Reduction Program (P167132) The World Bank’s task team will continue to provide close support to the Client through virtual meetings and missions to ensure it secures the first and second ERPA payments. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Substantial Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Substantial Substantial Substantial Stakeholders Substantial Substantial Substantial Other Substantial Substantial Substantial Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes PDO (To make payments to the Government of Guatemala for MRV ERs...) IN01294815 ►Volume of CO2e Emissions Reductions that have been measured and reported by the Program Entity, verified by a Third Party, and transferred to the FCPF Carbon Fund (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10,500,000.00 Date 27-Nov-2020 31-Jan-2023 26-Jul-2023 31-Dec-2024 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 World Bank Group in consultation with the Program Entity. The transfer of ERs requires using a Registry capable of receiving, holding and transferring ERs to the Carbon Fund. IN01294826 12/21/2023 Page 2 of 4 The World Bank Implementation Status & Results Report Guatemala Emissions Reduction Program (P167132) ►Amount of Payments made by the FCPF Carbon Fund for CO2e Emissions Reductions generated by the Program (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 52,500,000.00 Date 27-Nov-2020 31-Jan-2023 26-Jul-2023 31-Dec-2025 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. IN01294827 ►Emission Reductions payments distributed in accordance with agreed Benefit Sharing Plan (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 27-Nov-2020 31-Jan-2023 26-Jul-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 BSP that has been deemed acceptable Comments: to the World Bank Group. ER Monitoring Reports will have to provide evidence satisfactory to the World Bank Group that the Benefits have been shared in accordance with the BSP and the nesting approach. Intermediate Results Indicators by Components Not applicable (N/A) IN01294828 ►N/A (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 29-Aug-2021 31-Jan-2023 31-Jan-2023 31-Dec-2025 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P167132 TF-B5091 Effective USD 2.82 2.82 0.00 0.00 2.82 0%% P167132 TF-B5092 Effective USD 49.68 49.68 0.00 0.00 49.68 0%% 12/21/2023 Page 3 of 4 The World Bank Implementation Status & Results Report Guatemala Emissions Reduction Program (P167132) Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P167132 TF-B5091 Effective 31-Aug-2021 13-Sep-2021 28-Feb-2023 31-Dec-2025 31-Dec-2025 P167132 TF-B5092 Effective 31-Aug-2021 13-Sep-2021 28-Feb-2023 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. 12/21/2023 Page 4 of 4