The World Bank Implementation Status & Results Report Fiji Carbon Fund ER Program (P163484) Fiji Carbon Fund ER Program (P163484) EAST ASIA AND PACIFIC | Fiji | IBRD/IDA | Investment Project Financing (IPF) | FY 2021 | Seq No: 6 | Archived on 09-Jul-2024 | ISR00541 Implementing Agencies: Ministry of Forestry 1.OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 07-Jul-2020) The objective of the Project is to make payments to the program entity for measured, reported, and verified ERs from reduced deforestation and, forest degradation, and enhancement of forest carbon stocks (REDD+) at the national level in the Republic of Fiji and to ensure that paid amounts are distributed according to an agreed benefit sharing plan. Has the Development Objective been changed since Board Approval of the Project Objective? No 2.COMPONENTS Name Measurement, reporting, and verification and payment of the ERs generated by the project:(Cost 12,500,000.00) Distribution of ER Payments as per the Benefit Sharing Plan:(Cost 0.00) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of lModerately Unsatisfactory lModerately Unsatisfactory PDO Overall Implementation Progress (IP) lModerately Unsatisfactory lModerately Unsatisfactory Overall Risk Rating lSubstantial lSubstantial 4. KEY ISSUES & STATUS Jul 09, 2024 Page 1 of 6 The World Bank Implementation Status & Results Report Fiji Carbon Fund ER Program (P163484) 4.1 Implementation Status and Key Decisions The first Emission Reductions Monitoring Report (MR) for the reporting period 2019-2020 was submitted to the FMT on April 4, 2023 (NOTE: this corrects the previous ISR which mistakenly stated December 21, 2023) for review and was deemed complete. The independent verification of the emission reductions (ER) generated is in progress and is now expected to be completed approximately July 2024. This would be the first payment made under Fiji’s Emission Reductions Payment Agreement – a five-year agreement that will unlock up to US$12.5 million (for 2.5 million tonnes of ERs) in results-based payments in exchange for increasing carbon sequestration and reducing emissions. This ER-Program covers 90% of Fiji’s landmass, with a focus on Viti Levu, Vanua Levu and Taveuni. The ERs are based on an integrated land-use planning approach to address multi-sectoral drivers of deforestation and forest degradation through climate smart agriculture, selective logging, etc. 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Last Approved Rating at Rating Risk Category Proposed Rating Approval ISR Seq. 05 - 03 Jan 2024 Political and Governance l lSubstantial lSubstantial Macroeconomic l lSubstantial lSubstantial Sector Strategies and Policies l lSubstantial lSubstantial Technical Design of Project or l lSubstantial lSubstantial Program Institutional Capacity for l lSubstantial lSubstantial Implementation and Sustainability Fiduciary l lSubstantial lSubstantial Environment and Social l lSubstantial lSubstantial Stakeholders l lSubstantial lSubstantial Overall l lSubstantial lSubstantial Jul 09, 2024 Page 2 of 6 The World Bank Implementation Status & Results Report Fiji Carbon Fund ER Program (P163484) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes Payments for measured, reported and verified ERs and distribution of ER payments Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Volume of ERs 0.00 Jul/2020 0.00 30-Jun- 0.00 30-Jun- 2,500,000.00 Dec/2025 measured and reported 2024 2024 by the Program Entity, Comments on The Government has submitted the ER Monitoring Report for the first verified by an achieving targets reporting period, and independent verification is currently underway. independent reviewer, and transferred to the FCPF Carbon Fund (Metric ton) Payments received 0.00 Jul/2020 0.00 30-Jun- 0.00 30-Jun- 12,500,000.00 Dec/2025 from the FCPF Carbon 2024 2024 Fund for ERs generated Comments on Payment will be made subject to successful completion of the verification by the ER Program achieving targets that is currently underway, as well as pending legal, administrative and (Amount(USD)) safeguards requirements. No Jul/2020 No 30-Jun- No 30-Jun- Yes Dec/2025 ER payments 2024 2024 distributed in Comments on The Benefit Sharing Plan was approved by Cabinet on April 25, 2023. accordance with achieving targets Leases and licenses need to be signed in order to share benefits in line with agreed Benefit Sharing the Benefit Sharing Plan, and agreement on how to apply the Benefit Plan (Yes/No) Sharing Plan in practice is needed. 6.2 Intermediate Results Indicators by Components Jul 09, 2024 Page 3 of 6 The World Bank Implementation Status & Results Report Fiji Carbon Fund ER Program (P163484) Measurement, reporting, and verification and payment of the ERs generated by the project Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year - Jul/2020 - 30-Jun- - 30-Jun- - Dec/2025 2024 2024 N/A (Text) Comments on There are no intermediate indicators for the project. achieving targets Distribution of ER Payments as per the Benefit Sharing Plan Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year - Jul/2020 - 30-Jun- - 30-Jun- - Dec/2025 2024 2024 N/A (Text) Comments on There are no intermediate indicators for the project. achieving targets Jul 09, 2024 Page 4 of 6 The World Bank Implementation Status & Results Report Fiji Carbon Fund ER Program (P163484) 7. DATA ON FINANCIAL PERFORMANCE 7.1 Cumulative Disbursements 7.2 Disbursements (by loan) Loan/Credit/ Cancelle Undisburs Status Original Revised Disbursed % Disbursed TF d ed TF-B2734 Effective 11.88 11.83 0.00 0.00 11.83 0% TF-B2733 Effective 0.67 0.67 0.00 0.00 0.67 0% 7.3 Key Dates (by loan) Orig. Rev. Loan/Credit/TF Status Approval Signing Effectiveness Closing Closing Jul 09, 2024 Page 5 of 6 The World Bank Implementation Status & Results Report Fiji Carbon Fund ER Program (P163484) 31-Dec- 31-Dec- TF-B2733 Effective 08-Jul-2020 08-Jul-2020 08-Oct-2021 2025 2025 31-Dec- 31-Dec- TF-B2734 Effective 08-Jul-2020 08-Jul-2020 08-Oct-2021 2025 2025 8. KEY DATES Key Events Planned Actual Approval 30-Jun-2019 08-Jul-2020 Effectiveness 15-Dec-2020 08-Oct-2021 Mid-Term Review No. 01 02-Feb-2024 07-Feb-2024 Operation Closing/Cancellation 31-Dec-2025 9. RESTRUCTURING HISTORY 10. ASSOCIATED OPERATION(S) There are no associated operations Jul 09, 2024 Page 6 of 6