The World Bank Implementation Status & Results Report MZ Zambezia Emissions Reductions Payment (P164524) MZ Zambezia Emissions Reductions Payment (P164524) AFRICA EAST | Mozambique | Environment, Natural Resources & the Blue Economy Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2019 | Seq No: 1 | ARCHIVED on 18-Nov-2020 | ISR42942 | Implementing Agencies: Ministry of Economy and Finance (MEF), National Sustainable Development Fund (FNDS) Key Dates Key Project Dates Bank Approval Date: 01-Feb-2019 Effectiveness Date: 05-Feb-2020 Planned Mid Term Review Date: 07-Nov-2022 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 achieve payments for measured, reported and verified emission reductions (ER) from reduced deforestation (ER payments) in the area of the Zambezia Integrated Landscape Management Program (the Program), and distribute ER payments in accordance with an agreed-upon 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 -- Satisfactory Overall Implementation Progress (IP) -- Satisfactory Overall Risk Rating -- Moderate Implementation Status and Key Decisions Mozambique is the first country submitting the Emission Reduction Monitoring Report (ER-MR) and the first country to being able to demonstrate that deforestation is reducing and thus carbon emissions are also reducing. The validation and verification process is in progress and aims to:  Review of Emissions Reduction Monitoring Report and supporting documentation  Identify if methodological steps and data are publicly available  Assess the extent to which reported Emissions Reductions/Reference Level have been reported with a transparent and coherent step-by- step process  Assess the extent to which the reported GHG Emissions, Emission Reductions/ Reference Level is materially accurate  Identify source of Uncertainty due to both random and systematic errors  Assess Forest Monitoring System of the Emissions Reduction Program and validate that there are controls for sources of potential errors, omissions, and misstatement in place  Identify components of the Forest Monitoring System that require attention and/or adjustment in future monitoring and reporting  Assess the extent to which the methodologies and methods used to estimate GHG emissions and removals during the Reporting Period are consistent with the Reference Level and with the Monitoring Plan as described in the ER Monitoring Report  Assess the extent to which the ER Monitoring Report includes a complete and accurate report, to the extent possible, on the implementation of its strategy to mitigate and/or minimize potential Displacement and on any changes in major drivers in the ER Accounting Area 11/18/2020 Page 1 of 5 The World Bank Implementation Status & Results Report MZ Zambezia Emissions Reductions Payment (P164524)  Assess the extent to which the ER Monitoring Report contains a complete and accurate report on the mitigation, to the extent possible, of significant risks of Reversals identified in the assessment, and addresses the sustainability of ERs  Determine whether the ER Program has quantified ERs allocated to the Uncertainty, Reversal, and Pooled Reversal Buffer during the Reporting Period in compliance with the Methodological Framework and other applicable criteria  Assess the extent to which systems to avoid that ERs generated under the ER Program have not been counted or compensated for more than once have been adequately implemented and confirm that issuance has not occurred in other known registries  Determine whether the national or centralized REDD+ Programs and Projects Data Management System are implemented and operated in compliance with the Methodological Framework and other applicable criteria. The final validation and verification report and statement (opinion) is expected to be issued by 12 January 2021. However, by December, a draft of the validation and verification report will be ready. Mozambique has the BSP already approved and all stakeholders well identified. FNDS is now finalizing the assessment of the portion of the payments flowing for each of the 9 districts and this is being done by making comparisons between the historical emissions and the emission in 2018 of each of the districts. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- -- Moderate Macroeconomic -- -- Moderate Sector Strategies and Policies -- -- Substantial Technical Design of Project or Program -- -- Moderate Institutional Capacity for Implementation and -- -- Moderate Sustainability Fiduciary -- -- Moderate Environment and Social -- -- Moderate Stakeholders -- -- Moderate Other -- -- Moderate Overall -- -- Moderate Results PDO Indicators by Objectives / Outcomes To achieve payments for measured, reported and verified Emission Reductions (ER) IN00916908 ►Volume of CO2 Emissions Reductions that have been measured and reported by the Program Entity, verified by a Third Party, and transferred to the FCPF Carbon Fund (Tones/year, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 10,000,000.00 11/18/2020 Page 2 of 5 The World Bank Implementation Status & Results Report MZ Zambezia Emissions Reductions Payment (P164524) Date 16-May-2018 -- 11-Nov-2020 31-Dec-2025 IN00916909 ►Payment by the FCPF Carbon Fund for CO2 Emission Reductions generated by the Program (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 50,000,000.00 Date 16-May-2018 -- 11-Nov-2020 31-Dec-2025 IN00916910 ►Emission Reductions payments distributed in accordance with agreed Benefit Sharing Plan and arrangements (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 16-May-2018 -- 11-Nov-2020 31-Dec-2025 Intermediate Results Indicators by Components Measurement, reporting and verification (MRV) and payment of ERs generated by the project IN00916921 ►Volume of CO2 Emissions Reductions that have been measured and reported by the Program Entity, verified by a Third Party, and transferred to the FCPF Carbon Fund (Tones/year, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 10,000,000.00 Date 16-May-2018 -- 11-Nov-2020 31-Dec-2025 IN00916922 ►Payment by the FCPF Carbon Fund for CO2 Emission Reductions generated by the Program (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 50,000,000.00 Date 16-May-2018 -- 11-Nov-2020 31-Dec-2025 Distribution of ER payments as per a BSP IN00916923 ►Emission Reductions payments distributed in accordance with agreed Benefit Sharing Plan and arrangements (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 31-May-2018 -- 11-Nov-2020 31-Dec-2025 11/18/2020 Page 3 of 5 The World Bank Implementation Status & Results Report MZ Zambezia Emissions Reductions Payment (P164524) Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P164524 TF-B2269 Effective USD 47.50 47.50 0.00 0.00 47.50 0%% P164524 TF-B2270 Effective USD 2.50 2.50 0.00 0.00 2.50 0%% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P164524 TF-B2269 Effective 31-Dec-2018 16-Jan-2019 05-Feb-2020 31-Dec-2025 31-Dec-2025 P164524 TF-B2270 Effective 13-Dec-2018 16-Jan-2019 05-Feb-2020 31-Dec-2025 31-Dec-2025 Cumulative Disbursements 11/18/2020 Page 4 of 5 The World Bank Implementation Status & Results Report MZ Zambezia Emissions Reductions Payment (P164524) PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 11/18/2020 Page 5 of 5