Annual Review - Amazon Web Services



Annual Review - Summary Sheet (1-2 pages)Title: REDD Early Movers (REM)Programme Value: ?73.3mReview Date: October 2018Start Date: January 2017End Date: July 2018Interim internal reviews were also conducted for the period January 2017 to February 2018. Summary of Programme Performance Year20162017Programme ScoreA+ARisk RatingMajorMajorSummary of progress and lessons learnt since last reviewThe REDD Early Movers (REM) Programme is a number of initiatives funded by the governments of Germany, Norway and the United Kingdom in Latin America. It is delivered by the German Development Bank KfW. The Programme provides results-based payments when the recipient country successfully reduces greenhouse gas emissions from deforestation. Payments are reinvested to help further reduce deforestation, leverage public and/or private investments and improve the livelihoods of forest-dependent peoples and communities. BEIS’s previous Annual Review analysed the first-year implementation of UK investment in the REM initiative in Colombia. In November 2017 BEIS approved an extension of its REM investment to new initiatives in the States of Acre and Mato Grosso in Brazil. Although an integrated Logframe has not been agreed yet (see Section B and C for further details and potential options), this Review is the first step to assessing implementation of the three initiatives as one single Programme with ?73.3m of UK investment, given they share the same principles, governance system, and implementation structures. Ambitious results are expected from each of them. The REM Programme has scored A (met expectations) for its performance over 2017 and the first half of 2018. It has met most of its initial milestones. The level of implementation of the initiatives, in both Colombia and Brazil, was affected by changes in government/presidential elections during 2018, lack of staff in delivery and implementation partners, and updates to relevant measuring, reporting and verification (MRV) regulations. In addition, the REM Programme’s initiative in Colombia was also affected by post-conflict and stabilisation developments. With an Implementation Unit based in the Ministry of Environment and Sustainable Development (MADS), the REM initiative in Colombia made considerable progress to establish agreements with key implementation partners in this country, including the Ministry of Agriculture (MADR), the Corporation for the Sustainable Development of the Southern Amazon (Corpoamazonia), the Corporation for the Sustainable Development of the Northern and Eastern Amazon (CDA), the Institute?of Hydrology, Meteorology and Environmental Studies (IDEAM) and the Amazon Scientific Research Institute of Colombia?(SINCHI Institute). It also successfully designed strategic components of the initiative such as Sectorial Planning and Governance in Indigenous territories after an open, transparent and participatory process with Indigenous Peoples’ representatives. The initiative also supported approval of Colombia’s “Integrated Strategy to Combat Deforestation” and played a crucial role during the discussions and approval of the new decree that stipulates how Colombia will monitor and report on its carbon emissions. REM supported several regional environmental plans and strategies including territorial planning documents with the Colombian National Planning Department (DNP), solar energy plans in the department of Guaviare, a transport plan for the Amazon region, and a Green Municipalities Strategy. Pilot projects and activities are under implementation in key areas, with the approval and implementation of 10 projects in indigenous lands and 17 agri-environmental projects with farmers associations in the Caquetá and Guaviare departments. A Memorandum of Understanding (MoU) was signed between MADS and MADR and the close participation of FINAGRO has promoted the design, and soon implementation, of innovative instruments to facilitate access to credit lines with high environmental standards in the Amazon. In Brazil, the REM initiatives in Acre and Mato Grosso are also showing signs of progress, taking into consideration the specific circumstances of each investment. Acre is currently implementing a second phase of REM support, building on a first round of implementation that was supported by Germany. The Benefit-Sharing Strategy (BSS) and operational manual for this second phase were agreed as expected at this stage. Transition from the former fiduciary mechanism used during Phase 1 to the one described in BEIS’ Business Case (page 46) concluded on time. This will facilitate the implementation of UK funding in future years. However, the Monitoring, Evaluation and Learning (MEL) Plan is still under construction by local partners in close collaboration with KfW and supported by BEIS. In Mato Grosso REM has had a slow start. A first monitoring mission was undertaken during the first half of 2018 to support implementation partners during set up of the initiative. During the mission key personnel were appointed at the implementation unit, templates were agreed, and some key documentation was delivered. However, the BSS was not finalised within the expected timeframe due to its complex and multisectoral nature. It is the first time that a State initiative in Mato Grosso is designed at the scale and with the participation that the REM Programme requires. An area of progress within the BSS framework is the ongoing workshops with participation of Indigenous Peoples. The process aims to build a strong Indigenous Peoples component taking into consideration their own views and needs. A similar process was implemented in REM Colombia, prior to disbursements being made to these groups of beneficiaries. RecommendationsDuring the previous Annual Review for the REM initiative in Colombia, the following overall recommendations were made. Notes on implementation (in italics) have been added.Stronger command-and-control measures are needed in any case?and putting these in place should be a strong focus of activity in 2017. Command-and-control activities were directly supported by a mandate from Colombia’s President in early 2018, including actions taken at the local levels (i.e. new coordination initiatives between different authorities locally known as ‘Forest Bubbles’ were created in some Amazon Departments and access roads were closed). ?Monitor?changes in?deforestation?dynamics?closely?and?adapt its approach?if necessary. Priority time periods and areas were identified using early alert data from Colombia’s REM-supported early warning system. Actions for each component of the REM initiative were designed, targeted and implemented using this information.Conduct more rigorous assessments of social and environmental risks in implementation from 2017 onwards. A new tool has been developed by GIZ for all REM initiatives. Discussions regarding the most appropriate way to incorporate the tool in daily activities are underway.As the Programme is novel and ambitious some?testing and adaptation will be required. Colombia should not?dwell on diagnostics and consultations longer than needed where it is possible to move into a piloting phase. Pilot projects and activities are under implementation in all components with strong emphasis on agri-environmental activities.Colombia’s Ministry of Agriculture (MADR) agrees a memorandum of understanding with Ministry of Environment (MADS)?which?makes the commitment of MADR to?supporting the?initiative clear.?An MoU was signed during Q1 2018.As REM Colombia develops its communication strategy, consider how it can disseminate examples of successes and challenges to a wider set of?initiatives?in Colombia, the region and globally. A Communications Strategy is in place and improving dissemination methods, including on social media. A successful first exchange between governors from the Colombian and Brazilian Amazon was supported by the initiative in July 2017 to discuss strategies and create new models of sustainable development in the Amazon biome. Additional improvements in the existing website, including information available in English is under development.New recommendations arising from this Annual Review are below. As recommendations, these are non-binding and may be deemed no longer applicable as the programme progresses:Strengthen the coordination of the REM Programme/Vision Amazonia with other initiatives and interventions in the respective countries such as the Colombia Sostenible Fund, the National Programme for the Substitution of Illicit Crops (PNIS), as well as other international cooperation projects (USAID, UNDP, GCF, GEF, FAO, ONF Andina, Amazon Fund and others), contributing effectively to the processes of peace building and/or reduction of deforestation.Implement actions that contribute to stabilise the “natural forest frontier” in the Colombian Amazon in accordance with the Strategy for Control of Deforestation and Forest management (formerly the REDD+ National Strategy) and the recent declaration of the “agriculture frontier”. Prioritise investments during the formulation of Forest Management Plans in critical deforestation areas with involvement of communities willing to make sustainable use of the forest to stop the expansion of the agricultural frontier. Strengthen the technical and operational capacity of institutions related to the forest management and conservation, so they can coordinate faster responses to human actions that negatively affect the Amazon Forest. BEIS recommends structuring and implementing a unified command-and-control system that facilitates transparency, unifies information and improves the technical, administrative and legal processes of the environmental authorities present in the region. BEIS, KfW and GNU donors to have a strategic meeting in Q1 2019, once new staff are in place, to discuss the status of REM and the future of the Programme. BEIS to agree an integrated Logframe for internal use by the end of Q2 2019.BEIS recommends REM Implementation Units to continue working with the private sector to attract additional investments that reduce deforestation while improving local livelihoods. KfW and the State Government of Acre to complete the consultancy project identifying lessons learned during Acre Phase 1. In collaboration with BEIS, KfW to identify the key lessons that can be applied to the REM Programme in general and other similar initiatives worldwide. A. Introduction and Context (1 page)Link to Business Case: REM Colombia: Acre and Mato Grosso, Brazil: to Logframe: to previous Annual Review (if appropriate)Annual Review 2016: of the ProgrammeLaunched at the Rio+20 Conference in June 2012, REM is an innovative Official Development Assistance (ODA) initiative that rewards pioneers of forest and climate protection. It targets countries or regions that have already taken ambitious actions to protect forests and provides conditional payments upon verified emission reductions from deforestation. Results-based payments in the REM Programme are invested according to a “benefit-sharing strategy” that has been jointly agreed by partners.The REM Programme works under a stock-and-flow approach that channels incentives to activities contributing to conservation (maintaining or enhancing carbon “stock”) and to activities that directly address deforestation (i.e. the “flow” of emissions). While incentives for flow activities are essential to reduce pressure on forests, this approach also recognizes the need for incentives for those that protect and enhance forests where they are not currently under threat. Benefits to stock activities are particularly important, as they reach small farmers, local communities and indigenous groups and institutions that generally play an essential role for the protection of forests. Moreover, this approach recognizes conservation efforts that Indigenous Peoples have been practicing for years. Under this approach at least 60% (in Colombia and Mato Grosso) or 70% (in Acre) of the funds will benefit activities on the ground; while the remaining funding will be invested in enabling activities and operational management, particularly on strengthening forest governance at institutional level. Investments must also promote positive social and environmental impacts, a gender perspective, and follow the “do no harm” principle.The REM Programme is delivered by the German Development Bank (KfW). The Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ) provides technical assistance. In Colombia, REM is implemented by the Ministry of Environment and Sustainable Development (MADS) in partnership with the Ministry of Agriculture and Rural Development (MADR). In Brazil, REM is implemented by the respective State Secretariats of Environment (SEMA) of Acre and Mato Grosso, in coordination with the Ministry of Environment (MMA). There are REM Implementation Units (REM-IU) in each of these initiatives for day-to-day coordination with implementation partners. The Natural Heritage Fund (‘Fondo Patrimonio Natural’ or FPN) is contracted for the financial and procurement administration of the REM initiative in Colombia. A similar role was agreed with the State Secretariat of Planning (SEPLAN) for the REM initiative in the State of Acre and with the Brazilian Biodiversity Fund (Funbio) for the REM initiative in the State of Mato Grosso. B: PERFORMANCE AND CONCLUSIONS (1-2 pages)Annual outcome assessment REM is a results-based programme, which makes ex-post payments as reward for reduced deforestation. While its primary aim is to reward greenhouse gas emission reductions from reduced deforestation, it also aims to support livelihood improvement for local people, enable policies and strengthen institutions in the Colombian Amazon region and in the States of Acre and Mato Grosso to contribute to further reductions in emissions from deforestation.In Colombia, involvement of the private sector and local investments and activities have started in all components of the initiative as agreed in its General Working Plan (formerly known as PTG). The progress is fully described in the initiative’s reporting tools. This work sets the necessary preconditions to enable the achievement of expected outcomes by the end of the implementation period. Another range of activities supporting the improvement of local livelihoods, mainly under the agri-environmental and indigenous people’s components, are expected to start implementation in 2019. However, the recent deforestation increase recorded and announced by the Government of Colombia means that BEIS will be unable to make all of the payments for emission reductions according to the schedule originally forecast in the Business Case. With the potential for this reported deforestation increase to affect a significant disbursement scheduled towards the end of the initiative, and additional risks/technicalities (i.e. possible emission reduction reversals), further discussions are required to decide on the next steps in Colombia. In Colombia’s new post-Peace Agreement reality, the timely implementation of planned investments will be impacted by different factors including the implementation of the peace accords, government priorities and coordination across ministries, effective command-and-control measures, staff capacity and/or decisions regarding carbon accounting frameworks. Initial actions to mitigate these risks have been identified by the REM-IU. They will be presented to the Executive Committee during its next session in October 2018 and will be reviewed post-election when the new Administration is in post.In Brazil it is still too early to measure progress; but early signs show strong commitment from delivery partners and existing capacity in the REM-IUs and finance mechanisms to implement the initiatives. KfW is also verifying that key documents (i.e. Operational Manuals), templates, and specific UK conditions for disbursements (i.e. Monitoring, Evaluation and Learning (MEL) plans) have been developed and signed off. This longer initial set-up process, in combination with readjustments in staff responsibilities of both, KfW and implementation partners, responds to lessons learned in previous REM initiatives and aims to reduce future bottlenecks. Risks remain as described in the Business Case extension, but a reassessment will be needed once Brazil’s Presidential elections have concluded (October 2018) and the transitional period is over (January 2019). Annual assessment of other relevant progressBEIS continues to be impressed by the level of professionalism in KfW and implementation partners. Their work follows the highest standards and principles in daily activities. The financial controls of all fiduciary mechanisms have met the standards described in respective Business Cases. The Operational Manuals and the content of the Annual Financial Reports have been improved based on the experience gained from previous years. The former Minister of Environment of Colombia described how the flexibility of the REM Programme was helping the country to adapt and respond to new risks after the signature of the Peace Agreement, suggesting that deforestation rates would be even higher without the initiative. In July 2017 the President of Colombia recognised the support of UK funding to address deforestation and congratulated Germany, Norway and the United Kingdom for their continuous support.Overall score and descriptionOverall, the REM Programme has scored an A. Over 2017 and first half of 2018 the Programme made significant progress in key results areas, most notably in the volume of results-based payments for the corresponding period, governance in indigenous territories and implementation of agri-environmental activities in Colombia (i.e. the approval and start of implementation of 10 projects with Indigenous Peoples and 17 agri-environmental projects with farmers associations in the Caquetá and Guaviare departments). Notable progress was also reached in terms of implementing funds received via the Programme Investment Plans (PID). By 30 June 2018, over 70% of funding disbursed by donors in Colombia was committed in contracts, and the rest already paid as shown in financial reports. This reflects a significant increase in the implementation capacity of the Colombia’s IU and partners. An independent financial audit that covered a period from 1 July 2016 to 30 June 2017 was presented to donors in March 2018. It presented some recommendations to the fiduciary, FPN, and also concluded that financial statements are accurate and complete as reported.Key actions to takeAdditional actions beside the recommendations in the summary sheet and in Section C, the following actions are suggested: ActionDeadlineLead in BEISDiscuss with KfW and GNU donors the risk of “reversals” in the REM Colombia initiative. Q4 2018Programme managerReview the alignment of?monitoring periods?for?all REM initiatives, including Financial Reports. Work with KfW to identify way to ensure BEIS receives all necessary paperwork in time for our needs. ??Q1 2019Programme managerDiscuss with KfW and GIZ the most strategic ways to integrate risk management tools adopted in REM Acre and REM Mato Grosso into REM Colombia.Q1 2019Programme managerAnalyse/update existing and/or new risks to BEIS investments in Colombia and Brazil with support of ICF staff in Post after elections in both countries.Q2 2019Programme managerHas the Logframe been updated since the last review?Earlier this year BEIS conducted an interim internal review which described the changes and updates to the existing REM Colombia Logframe by the REM-IU in Colombia in September 2017. The changes complemented existing indicators and/or agreed new indicators on forest and land use management, community monitoring, territorial policy agreements, and gender; while maintaining the “stock-and-flow approach” and percentages of funds allocated to different initiative components. However, these changes are still subject to internal approvals according to national procedures and a “no-objection” decision from KfW. The independent mid-term evaluation of the REM Colombia Programme in 2019 may provide additional inputs for revision of the updated REM Colombia Logframe.This situation means it is not possible to score progress against the updated Logframe. Instead, this Review will use the existing Logframe as described in the Business Case and will extrapolate indicators to estimate if the initiative in Colombia is on track, considering local/exceptional circumstances.?Given that no disbursements have been made in Brazil and existing draft Logframes have not yet been integrated, progress in Acre and Mato Grosso will not be scored. However, we will provide a narrative assessment of progress to date in those initiatives based on existing contracts, documentation received from KfW and other verified sources of data.?BEIS recommends the government of Colombia and Mato Grosso approve the updated Logframe and the draft Logframe via the existing mechanisms as soon as possible. It will provide BEIS, KfW and implementation partners with clear indicators and milestones and the necessary inputs for BEIS to generate an integrated Logframe covering its entire REM Programme investment. C: DETAILED OUTPUT SCORING (1-2 pages per output)Results-based paymentsThis is the core performance indicator for KfW’s REM Programme. Output Title Results-based payments from REM to ColombiaOutput number per LF1Output Score A+Risk rating:SevereImpact weighting (%):50%Risk revised since last AR? YesImpact weighting % revised since last AR? NoIndicator(s)Milestones from Business Case2018 milestone from LogframeProgress6. Volume of results-based payments made by REM to Colombia, cumulative, in millions of US Dollars.N/A$26.15m (USD)Surpassed expectations. During the current period REM made payments of $44.5m (USD) to Colombia.Key PointsREM makes payments based on verified emissions reductions from reduced deforestation at a rate of US$5 per ton CO2 equivalent. REM also verifies the progress of implementation and the capacity to efficiently implement the payment requested in scheduled activities.Updated data and projections regarding increased deforestation rates for 2016 were presented to donors during the second Annual Monitoring mission to Colombia in September 2017. Potential higher rates in deforestation for the 2017 results period were discussed with KfW and MADS during an interim mission to Bogota in March 2018, and this was officially confirmed by Colombian authorities in May 2018. However, there is a lag between when emissions reductions are achieved and when payments are made: this is due to the time it takes to independently verify the robustness of the emission reductions and Colombia's plans for using the funding. Therefore, the increases in deforestation rates will not immediately affect the volume of results-based payments made by donors because current disbursements correspond to emission reductions from an earlier period (2013-15). However, the confirmed increase in deforestation rates for 2016 and 2017 periods does put at risk future BEIS results-based payments to Colombia. This risk is increased with the commencement of commercial transactions of emission reductions within carbon market by private REDD+ developers in Colombia. Uncertainties regarding the total amount of emission reductions that can be rewarded by the REM Programme in future disbursements are still to be clarified.Additional comments regarding BrazilAs described in contracts with the States of Acre and Mato Grosso in Brazil, BEIS initially agreed to make disbursements for ?13m during the first half of 2018. However, these payments were not made due to pending decisions on how the Ministry of Environment of Brazil (MMA) monitors and reports on emissions reductions, methodological integration with other Programmes operating in the same carbon accounting areas (with implications in Mato Grosso) and completion of key documentation required by BEIS. Since these two Programmes are in the initiation phase and setting the conditions for further implementation, and updated payment schedules were recently agreed with KfW taking into consideration the content and discussions around the Benefit-Sharing Strategies, we do not think this initial delay in payments will result in significant delay to the on-the-ground implementation of planned activities.Summary of responses to issues raised in previous Annual Reviews (where relevant)The previous Annual Review highlighted that several factors could influence future deforestation results and timely implementation progress, including Colombia’s peace negotiations with the FARC guerrilla. BEIS recommended a strengthening of command-and-control activities in the Amazon. Some of the risks we anticipated materialised e.g. GIZ had to relocate their Amazon-based personnel for safety reasons. Changes in senior roles within the Colombian Army, army budget constraints and differing local perceptions of the importance of environmental work within brigades assigned to environmental work adversely affected command-and-control activities. However, a direct mandate by former President Santos increased the attention given to these activities. E.g. new coordination initiatives between different authorities (‘Forest Bubbles’) were created in some Amazon Departments and key access roads were closed. The new Administration under President Duque has emphasised that tackling deforestation is one of the government’s top priorities.RecommendationsBEIS recommends that KfW continues communicating with MADS in Colombia and with MMA in Brazil to solve pending issues regarding the approval of resolutions and/or improvement of monitoring and reporting systems before the end of Q4 2018. The results of such conversations are necessary to re-schedule pending payments as soon as possible.Particularly in Colombia, BEIS recommends implementation partners continue strengthening command-and-control collaboration in critical deforestation hotspots with existing or new mechanisms (i.e. Forest Bubbles, the Regional Committees for the control and surveillance of deforestation and illegal logging in critical areas, etc). This collaboration should be focussed from September to March which are the months of highest deforestation in the Amazon, and educational projects should complement these actions during the months from March to August. BEIS recommends that progress regarding this collaboration is included in Reports sent by MADS to KfW. BEIS recommends that implementation partners in Mato Grosso finalise its existing draft Benefit-Sharing Strategy and Logframe’ indicators before the end of Q4 2018 taking into consideration feedback from KfW.Initial identification of possible indicators and milestones regarding Output 1 for an integrated Logframe.An integrated REM Programme Logframe can include the total expected results of 16.2m tCO2e (combining 5.2m tCO2e from Acre and 11m tCO2e from Mato Grosso) into this output. Building capacityOutput Title Establishing and maintaining the capacity of MADS, the finance mechanism and implementing entities to effectively and efficiently implement the Programme.Output number per LF2Output Score ARisk rating: MajorImpact weighting (%):10%Risk revised since last AR? YesImpact weighting % revised since last AR? NoIndicator(s)Milestones from Business Case2018 milestone from LogframeProgress7. REM Implementation Unit established. Unit shall be adequately equipped for its operation, consisting of focal points of established implementing entities of MADS, MADR, Sinchi, PNN, CARs, IDEAM, MI whose technical teams have been formed to support the Amazon Vision.N/AAll planned team members in place and working effectively.Met expectations. All 18 planned team members in place and working effectively. An additional focal point has been identified to be added. The finance mechanism hired 2 additional staff to the one agreed in the Operation Manual with KfW.8. Information on safeguards presented annually and publicly available via safeguard summaries and safeguard information system (SIS) the latter once the SIS is operational.N/AFully operational, meaning: publicly available summaries of safeguards implementation available each year, including information from the SIS. Partially achieved. Summaries of safeguards implementation are being published online with delays, after a transparent consultation process. 9. Carbon accounting system for reduced emissions established and running.N/AFully operational transaction registry publicly available online.Partially achieved. The Colombian Government has periodically updated information in the REDD Info Hub within the framework of the UNFCCC and transactions under the REM Programme on MADS’ website, but still operating under an interim registry. 10. Amazon Vision disseminated in the region Metric: total number of dissemination meetings per year.N/A4 meetings.Surpassed expectations. 6 multi-stakeholder consultations, including Amazon Vision dissemination meetings. Press releases for each event can be found on the MADS website. Key PointsColombia’s REM-IU and FPN made significant progress in 2017 recruiting staff. There are 18 people now working within the REM-IU and 9 within FPN. During this period two additional committees were created to support the implementation of the initiative in Colombia: a “Financial Committee” to provide specialised advice on planning and management activities from an investment point of view; and an “Operations Committee” to discuss strategic implementation decisions and monitor the implementation of activities. The Vice-Minister of Environment directly participates, along with key MADS Directorates, in the operations committee.Colombia’s Executive Committee met on two occasions in September 2017 and July 2018. In September an updated version of the General Working Plan was approved and last July the Committee approved its third periodic Investment Plan (PDI III) for US$ 31,423,000.Colombia agreed to have publicly available Summaries of Safeguard Implementation (“RIS” by its acronyms in Spanish) and publish them on a yearly basis. Due to delays in internal sign-off procedures in MADS, this milestone is partially achieved as follows: RIS I (from the beginning of the initiative to July 2016) is publicly available; RIS II (to July 2017) has been publicly available for feedback, but the final version is being prepared and still is not available, pending for sign-off at MADS. RIS III (to July 2018) will be prepared for public comments by the end September 2018 and finalised by the end of Q4 2018. Colombia is also working on a monitoring system (and several indicators) for its Safeguard Implementation System. The carbon accounting system for reduced emissions was expected to be fully operational with a transaction registry publicly available online. This milestone was partially achieved due to exceptional circumstances. By September 2017 MADS already had the online platform ready for such a registry. It was presented to donors during the annual monitoring mission. Although the platform exists, it still is not publicly available because it is linked to a new government resolution on how Colombia monitors and reports on its emission reductions, the interpretation and implementation of which still needs to be clarified. Additional comments regarding BrazilIn Acre and Mato Grosso significant progress in terms of REM-IUs was also achieved. The two financial mechanisms selected to oversee investments, Funbio and SEPLAN, added significant value due to their experience of managing similar funds. This reduces some elements of financial risk. A full-time Coordinator was hired in Funbio. In May 2018, the government of Mato Grosso agreed a General Coordinator and a Deputy Coordinator for its REM-IU ahead of payments. The Deputy Coordinator also serves as Director of the PCI Strategy (on a part-time basis during the first two years of the initiative), to ensure integration between the REM initiative in Mato Grosso and the PCI Strategy. Summary of responses to issues raised in previous Annual Reviews (where relevant)BEIS recommended: MADS and MADR to sign the MoU between both Ministries to implement specific activities under the agri-environmental component. The MoU was signed in February 2018. The scheduled activities under the MoU framework are being implemented as expected.Make a stronger emphasis on identifying key safeguards risks. In terms of risks, GIZ and KfW completed a full analysis of risks (including from a perspective of the UNFCCC Cancun safeguards) and created a new tool for implementation partners of the REM Programme. Training sessions for local implementation partners will start in Q2 2019. Consultations should be tailored to meet stakeholder needs. The procedures and materials for consultation meetings have improved, as well as the amount of information on the initiative that is accessible to the public online. Communication plans and strategies have also been put in place. Recommendations BEIS recommends the REM-IU in Colombia continue building consensus with stakeholders, particularly with farmers and Indigenous Peoples.In Brazil, BEIS recommends REM-IUs to hire key staff by the end of Q1 2019, crucial for the efficient and smooth implementation of funding once first UK disbursements are paid (expected in Q4 2018). BEIS also recommends Acre and Mato Grosso to prioritise and ensure that each component of their respective initiatives has a robust investment plan in place by Q4 2018 in order to proceed with first disbursements.Initial identification of possible indicators and milestones regarding Output 2 for an integrated Logframe.BEIS identified that one milestone in both States in Brazil is to integrate subnational REDD+ systems with the national system’s terms of carbon accounting and safeguards. Based on current plans several dissemination meetings are also scheduled, mainly in Mato Grosso where the Indigenous Peoples component is being constructed in an open, transparent and participatory process led by GIZ with the support of a local NGO. Forest governanceOutput Title Forest and territorial governance implemented and consolidated. Output number per LF3Output Score ARisk rating: MajorImpact weighting (%):10%Risk revised since last AR? YesImpact weighting % revised since last AR? NoIndicator(s)Milestones from Business Case2018 milestone from LogframeProgress11.Land use planning is applied to at least 2.25 m ha of land in an inclusive and transparent way in conformity with existing legislation.N/AMay be possible to estimate from second PTG, tbd Feb 2017.Partially achieved. ToR pending “no objection” from KfW to start formulation of forest plans in 1.3m ha of land. 12. Four intersectoral agreements for legal timber are in place.N/AMay be possible to estimate from second PTG, tbd Feb 2017.Partially exceeded. Two agreements signed in both Caqueta and Guaviare. One additional agreement in Guaviare is under negotiation.13. At least 4 additional patrols per year in the region to control deforestation.N/AMay be possible to estimate from second PTG, tbd Feb 2017.Surpassed expectations. 21 significant command-and-control activities were implemented during this period in Guaviare and Caqueta as reported by MADS. From these activities judicial processes have started.14. At least 2 roundtables on forest governance organised on departmental level with broad representation to discuss forest issues.N/AMay be possible to estimate from second PTG, tbd Feb 2017.Met expectations. 2 roundtables in operation Key PointsColombia made good progress in terms of formulation of forest management plans in 57.7% of the total area aimed for, with still three years of implementation ahead. Once approved by KfW, it will start immediate implementation of these plans. This excludes other existing territorial plans from the Sectorial Planning component of the initiative that are in operation (i.e. environmental zonification, strategic impact statements etc.). Two roundtables on forest governance were achieved and under current operation in Guaviare and Caquetá Departments. These roundtables will strengthen institutional, community and private sector engagement on forest-related topics. And facilitate the construction of Departmental Forestry Development Plans, and communication strategies to maintain an open dialogue between stakeholders. Three out of four intersectoral agreements for legal timber are in place with private and public sector partners, creating the basis for sustainable supply chains and technology transfer. This includes the construction of two processing centres for timber and non-timber products and technical assistance plans.Additional comments regarding BrazilNone of these activities would be expected to be implemented during the first 6 months of implementation of the REM initiatives in Acre or Mato Grosso. Summary of responses to issues raised in previous Annual Reviews (where relevant) The existing legal framework that governs local foresters’ production of non-timber forest products (i.e. fruits, seeds, etc.) in Colombia was identified as a local barrier to growth of sustainable management of natural Amazon forests. Corpoamazonia has officially approved a legal framework to support the establishment of these sustainable management forests. RecommendationsBEIS recommends the REM-IU to continue identifying bottlenecks and strengthen the joint collaboration between MADS and environmental authorities, particularly in terms of the land-use planning indicator to avoid further delays, taking also into consideration local community participation in key hotspot zones. Initial identification of possible indicators and milestones regarding Output 3 for an integrated Logframe.Based on the content of the Benefit-Sharing Strategies (BSS) and Investment Plans, additional indicators in terms of forest governance for the States of Acre and Mato Grosso were identified, mainly the number of hectares under management plans and intersectoral agreements. In addition, Acre’s BSS listed 84 command-and-control activities, 270,000 ha of land suitable for land regularization and 5,000 rural properties per year to be included into its georeferencing registry.Sustainable agri-environmental activitiesOutput Title Sustainable agri-environmental activities consolidated and expanded in the intervention areas. Output number per LF4Output Score BRisk rating: MajorImpact weighting (%):10%Risk revised since last AR? YesImpact weighting % revised since last AR? NoIndicator(s)Milestones from Business Case2018 milestone from LogframeProgress15. At least [xx] farming families benefiting from agri-environmental activities, including women and young people.N/ABased on second PTG, tbd Feb 2017.Partially achieved. Approximately 2,200 families in preparation to receive benefits from these activities.16. At least [xx] hectares subject to agro-environmental production activities and at least [xx] hectares protected by agreements made between national/local authorities and farmer/producer associations, guilds and private sector.N/ABased on second PTG, tbd Feb 2017.Partially achieved. 1,600 ha of agri-environmental activities and 75,000 ha of areas protected by agreements.17. Four newly developed or modified “green finance instruments” in implementation (loans, guarantees, CIF – certificados de incentive forestal, ICR – incentivo a la capitalizacion rural, etc).N/AMay be possible to estimate from second PTG, tbd Feb 2017.Not met. 1 credit instrument with FINAGRO after No-objection received by KfW.18. At least 10% of resources invested in supply/productive chains, to date, mobilised via agreements with the private sector.N/A5%.Not met. 0% mobilised to date.Key PointsThe implementation of other components has started. According to the latest analysis by MADS and decisions from the Vision Amazonia’s Board, the initiative aims to benefit at least 12,000 farming families from agri-environmental activities. From this target, REM Colombia is already engaging 2,200 families. Changing traditional farming practices will require interventions that account of the social, cultural, economic and political context in the region.The REM-IU defined 12,500 ha as the number of hectares to aim to have under agri-environmental production in addition to at least 200,000 ha protected by local agreements. These targets have been partially achieved by benefiting 1,600 ha and 75,000 ha respectively. The third investment plan (PID III) will not include a call for new proposals for agri-environmental projects; but instead the budget will be invested in the existing approved projects. The 75,000 ha (within 15 projects with farmer associations) are under some type of legal protection. In terms of the agri-environmental finance instruments, only one mechanism with FINAGRO has been put in practice. It was expected to be ready in Q2 2017, but it took over a year to be agreed and approved by the relevant Colombian procedures, including its interaction with Colombia’s tax regime. Other potential innovative finance instruments are presently being analysed by FINAGRO and MADR. Implementation of such instruments in the Amazon region is impeded by lack of information on the availability of finance, lack of land titles for landholders seeking finance and gaps in local banking infrastructure and rules that need to be addressed. The last indicator regarding resources mobilised via agreements with private sector will be reached through commercial alliances that will start in 2019. MADS has already identified existing options strengthen capacity and links between organisations of small rural producers and specialised markets including dairy products, rubber, spices and exotic fruits. Summary of responses to issues raised in previous Annual Reviews (where relevant) The REM initiative in Colombia faces big challenges in channelling resources to the local level in a vast area where farmers associations might require significant capacity building support. The REM-IU has been piloting projects with FINAGRO for cattle reconversion to cover large areas, training local people that can then help to replicate these approaches in broader areas, particularly agents of the Programme for the Substitution of Illicit Crops (PNIS by its acronym in Spanish) and reinforcing technical assistance projects on in agroforestry systems. By doing this, the REM-IU is expecting to mitigate this risk. RecommendationsBEIS recommends REM-IUs and implementation partners include in their activities clear best practice behaviour change protocols to take into consideration the social, cultural, economic and political risks (where applicable) that might affect the timely and effective implementation of activities under this component. Initial identification of possible indicators and milestones regarding Output 4 for an integrated Logframe.Acre and Colombia present some similarities including the technical assistance to several local associations and cooperatives (to increase productivity in specific supply chains). But also, differences. While Colombia is creating innovative financial instruments, Acre is expecting that 50% of families (from targeted areas) will have access to existing agricultural production credit lines. Additional indicators that can possibly merge include 64,000 benefit families in Mato Grosso from direct projects and/or additional municipal plans, 5m ha under non-forest management plans, 15,000 families from Acre under sustainable land management plans or 5,500 families benefiting from sustainable cattle activities. Certain indicators may only apply to one investment. Mato Grosso will look to increase the value of products by 15% on farms that joined the REM initiative in comparison to those that didn’t, or to increase the commercialization/sales of such products by 20%. Special attention was given to sustainable cattle, responsible soy and forest management in Mato Grosso, with potential activities already proposed. In Acre activities related to fish farms and rubber production are continuing from the first phase of REM support and will require further analysis to represent them appropriately. In addition, local tourism, art and craft industries and agri-energy have been included as new investments in the ernance in indigenous territories Output Title Environmental governance with Indigenous Peoples improved.Output number per LF5Output Score BRisk rating (H, M or L): MajorImpact weighting (%):10%Risk revised since last AR? YesImpact weighting % revised since last AR? NoIndicator(s)Milestones from Business Case2018 milestone from LogframeProgress19. At least [xx] hectares of indigenous territories benefiting from the Programme.N/ATBD during consultation process with indigenous communities, potentially by 3rd PTG end 2017Partially achieved. 6.5m ha under implementation, with benefits from 10 projects now under implementation. 20. At least [xx] indigenous families benefiting, including women and youthN/ATBD during consultation process with indigenous communities, potentially by 3rd PTG end 2017Partially achieved. 5,100 indigenous families, with benefits from 10 projects now under implementation. Key PointsThe indigenous component represents one of the most interesting components supported by REM in Colombia. It also required an in-depth participatory process. At the end of the process, clear targets were agreed: 14m ha of indigenous people’s territories and 11,000 families should receive benefits from the initiative. Rules and protocols were also agreed as part of the process to identify ways to invest the resources from this component. A call for proposals was launched and ten projects were selected based on specific criteria. These projects cover 6.5m ha of indigenous land and 5,100 families from 41 tribes in 50 Resguardos (from 6 Departments). This first round of projects will be focused on territory, self-governance, economy and production, and women/family. Full description can be found in Vision Amazonia/REM Programme’s website.A second call for proposals is expected in 2019 after definition of criteria with an organisation supporting Indigenous Peoples in the Colombian Amazon (OPIAC). This will include a special call for proposals focused on projects proposed and led by indigenous women.Additional comments regarding BrazilMato Grosso made substantive progress under this component, specifically in the ongoing “pre-consultation” and “information” processes. Information meetings were held in August, September and December 2017, plus an additional meeting for monitoring and validation of the initiative in February 2018. The next stage includes meetings for collective construction of the activities of this component. The effective participation of women, elders, youths, indigenous leaders, and representatives from indigenous associations from 43 indigenous groups from all three of Mato Grosso’s biomes will be ensured. The results of this process are expected to be ready on schedule, by December 2018.In Acre, investments under this component have been agreed and represent a continuation and/or improvement of the activities implemented during its first phase of REM support. Summary of responses to issues raised in previous Annual Reviews (where relevant) The Indigenous Peoples component will be responsible for delivering US$20m of the total amount of the initiative funding in Colombia. BEIS’ previous Annual Review raised concerns about the implementation challenges to efficiently implementing such disbursements. Three different organisational channels were created since then to facilitate the implementation of resources on the ground based on the level of existing capacities within each respective indigenous organisation. FPN will monitor and support the financial management of these channels. RecommendationsBEIS recommends the REM-IU in Colombia continue identifying and implementing participatory processes and activities that promote the improvement of the quality of life of Indigenous Peoples, taking into consideration the results of previous consultation processes and the first call for proposals.BEIS recommends the REM-IUs take into account in their own planning the additional technical and financial management support that would be required by indigenous associations and related groups to implement the respective activities. BEIS also recommends the Colombia REM-IU continue conversations with OPIAC to agree updated rules for the second call for proposals by Q4 2018. Initial identification of possible indicators and milestones regarding Output 5 for an integrated Logframe.Because the REM initiative in Acre, unlike Colombia and Mato Grosso, is building on a completed first phase of REM support, indicators also vary in this component. Acre will use the number of individuals receiving benefits from REM (and not the number of indigenous families) as an indicator. Defining other indicators will require further analysis of the BSS. In Acre the activities cover a diverse range of actions (i.e. inter-cultural education, technical training on agroforestry production, land management policies). MRV and enabling systemOutput Title MRV and enabling systems strengthened. Output number per LF6Output Score ARisk rating (H, M or L): MajorImpact weighting (%):10%Risk revised since last AR? YesImpact weighting % revised since last AR? NoIndicator(s)Milestones from Business Case2018 milestone from LogframeProgress21. Forest monitoring system (Sistema de monitoreo de bosque y carbono, SMByC) consolidated. Information on deforestation in the Amazon presented and verified in conformity with the methodology and timeline agreed by parties to the partnershipN/AMRV instruments operational and publicly available annual deforestation data and emission reductions reports publicly available & early warning system operation (6 months frequency).Exceeded expectations. Early alerts increased to 3 months frequency.22. National Forest Inventory (INF) in the Amazon Region implemented, and published, providing an improved basis for decision making in the Amazon.N/ATBD Feb 2017Met expectations. 40% of the process completed. INF is expected to be completed in 2019. Key PointsThe first milestone was achieved. Colombia produced emission reductions reports in conformity with the methodology and in a timely manner. It was verified and used as evidence for disbursements from all donors. This way, both emission reduction reports and verification instruments are not just operational but also publicly available. Independent verification of emission reductions for 2015 and 2016 are expected to start in Q4 2018. The six-month frequency of early warning reporting that was expected to be achieved towards the end of the initiative’s lifetime has not just been already achieved but has gone on to partially exceed expectations by increasing the frequency further, to every three months.The INF will be completed in 2020 and will be the instrument for the formulation, implementation and monitoring of Colombia’s policy for the management and conservation of forests and territory. Finalisation of the INF was scheduled to take a further two years and progress appears to be on track with 40% completed to date. This progress includes a first technical report of results generated, the establishment of permanent ground plots and a strengthened team at IDEAM (9 more professionals).Summary of responses to issues raised in previous Annual Reviews (where relevant) N/ARecommendationsBEIS recommends MADS ensures close articulation between the monitoring systems, administrative bodies and local communities contributing to the INF to allow adequate data collection and respective validation. Due to a limited availability of qualified technical personnel to support these activities, BEIS recommends that potential experts for the next stages of this process are identified as soon as possible. Initial identification of possible indicators and milestones regarding Output 6 for an integrated Logframe.Because Acre has already completed a first phase of REM support, indicators regarding this Output in Acre are more focused on strengthening the components of the REDD+ State System (i.e. the scientific panel and the climate change State forum), reinforcing actions in Acre’s communications/transparency/grievance mechanism, and the construction of instruments as described in the Acre State Policy on Climate Change. D: FUND PERFORMANCE NOT CAPTURED BY OUTPUTSSince 2010, Colombia has been developing policy instruments regarding climate change such as the Colombian Low Carbon Development Strategy (CLCDS), the National Strategy for Reducing Emissions from Deforestation and Forest Degradation (ENREDD+) and the National Adaptation Plan for Climate Change. The REM initiative in this country is currently supporting its mitigation goals in the Colombian Amazon and has provided evidence to prioritize mitigation measures through Sectorial Mitigation Action Plans (SMAPs) that aim to maximise the efficiency of economic activities at the national and sectorial levels while providing social and economic development. In addition, the Programme has strengthened the existing grievance mechanism in MADS, supported by the formulation of management plans in forest areas and creating maps of forest coverage and deforestation for 2016 and 2017. Based on the activities described in the Benefit-Sharing Strategies, REM Acre and Mato Grosso will also support Brazil in terms of its Nationally-Determined Contribution (NDC). REM will support activities to strengthen and enforce implementation of the Forest Code at state and municipal levels, reduce deforestation in the Brazilian Amazon by 2030, restore hectares of forests and enhance sustainable native forest management systems, through georeferencing and tracking methods with a view to curbing illegal and unsustainable practices. E: VALUE FOR MONEY & FINANCIAL PERFORMANCE (1 page)Key cost drivers and performance BEIS has invested ?73.3m in total: ?30.4m in REM Colombia, ?18.3m in REM Acre and ?24.9m in REM Mato Grosso. Combined with other donors the funding size is US$180m approximately (based on current exchange rates). BEIS provides the largest contribution to this fund.For the purposes of this review, only the ?30.4m contributed to REM Colombia will be assessed due to the early stage of implementation of REM Mato Grosso and Acre.Economy:The reference price on which results-based payments are based, of US$5/tCO2e, remains although Colombia has indicated its interest to negotiate a higher price. Significant fluctuation in the value of Sterling remains. Due to fluctuations during the period of approving and transferring the payment the last UK disbursement to Colombia, for ?6.6m, represented an additional 96,144 tonnes of emission reductions/and additional converted sum of US$480,720 more than originally expected (based on a strengthening of the Sterling during the period). Fluctuations like this are expected over the implementation of the initiative and BEIS will continue monitoring this, however such fluctuations are not expected to materially affect value for money. Management fees from KfW as BEIS’ primary delivery-partner and Colombia’s fiduciary mechanism remains as presented in the Business Case and previous Annual Review. The input costs associated with Programme activities will be reviewed once information is available and compared with projections presented in the Business Case. Efficiency:The initiative in Colombia has suffered some delays in terms of scheduled activities, particularly to set-up innovative credit lines, mainly because of procedures that had to be fulfilled according to Colombian banking regulations. The different components of the initiative started implementing investments, including pilot silvopastoral projects, agreements on legal-timber and connecting farmers with supply chains. Overall REM is making progress towards attracting private sector investments while sustainable practices are being put in place, but early indications are that investments on the ground have not happened as quickly as initially expected in the Business Case. Initial results are not expected to be quantified until 2019. EffectivenessREM is a results-based programme which makes ex-post payments to reward emissions reductions, and this is the primary objective of the programme. In addition, BEIS assesses the effectiveness of the reward payments once invested through the benefit-sharing strategy. This value-for-money assessment is used by BEIS internally to assess the programme and does not reflect the primary aim of the programme or its donors.The original value-for-money assessment measured the expected carbon savings from the agroforestry investments that are made with REM support. These activities are expected to deliver over 3.4m tCO2e reductions at a UK-attributed abatement cost of ?22.3 per tonne. This falls within the cost-per-tonne range for BEIS ICF approved projects, ?5-?37. Given that the level of agroforestry investment is below expected, eventual carbon savings from these activities may be lower than we expected at the Business Case stage. In practice, REM will reward and report carbon savings at the jurisdictional level based on the number of emissions reductions rewarded by the Programme, rather than the carbon impact of individual activities. The UK will be able to attribute to our support some results through this process from 2016 onwards (2016 results have not yet been verified) and at that point an assessment will be made on the number of emission reductions that can be attributed to BEIS spend each year. Although it is too early to make a full assessment, given the cost per tonne (US$5) the UK uses as a reference for its results-based payment volumes it is expected that the emissions reductions achieved that are attributed to UK spend will fall within the agreed BEIS ICF portfolio cost-per-tonne range. Assessment of whether the Programme continues to represent value for moneyIt is too early to determine whether the Programme has deviated significantly from the original value-for-money expectations. Two key risks to achieving value for money are the delays in agroforestry investment and increased deforestation rates at the jurisdictional level. Higher deforestation rates may limit the amount of results-based payments made which would reduce the amount of emissions reductions that are attributed to UK spend, as well as reducing the amount of investment in activities that will further prevent deforestation. BEIS should continue to work with KfW to ensure that there is measured progress in the respective components.Quality of financial managementKfW and FPN’s financial controls have been satisfactory, meeting the standards described in BEIS’ Business Case and contracts. There is strong performance in some areas, including international tender processes. There are also improvements in transparency of the financial information publicly available. An independent financial audit has confirmed that existing financial statements are accurate and compliant with fiscal laws and regulations. BEIS recommends that KfW presents Annual Financial Reports to BEIS that are aligned with the timings agreed for Annual Reviews. Date of last narrative Financial ReportJuly 2017Date of last Audited Annual StatementFebruary 2018F: RISK (? page)Overall risk rating: Major.Although overall the initiative has made progress, significant risks remain with implications for future payments. According to official reports from IDEAM, the natural forest cover in Colombia in 2017 was 59,311,350 hectares (4.5 times the size of England). It represents 52% of the total Colombian territory, with most of this forest cover (67% of Colombia’s forests) located in the Colombian Amazon (39,516,141 hectares that are the equivalent of 3 times the size of England). IDEAM also reported that deforestation in the Colombian Amazon represents 65% of Colombia’s total deforestation, which roughly correlates with the proportion of Colombian forests that are in the Amazon territory. However this analysis confirmed that deforestation in the Amazon region increased compared with deforestation in the same area the previous year. While 70,074 hectares were deforested in 2016, 144,147 hectares were deforested in 2017. Seven Amazonian municipalities account for half of the country's forest loss. In areas as San Vicente del Caguán, Cartagena del Chaira, La Macarena, Calamar, El Retorno, Solano and San José del Guaviare deforestation almost doubled. Beside the traditional drivers of deforestation (illicit crops, transport infrastructure, timber extraction, extensive livestock and illegal mineral extraction), IDEAM now also considers the challenges of the peace process and land speculation significant.Overview of Programme riskOverall, in Colombia the increase in deforestation rates is related to the Peace Agreement with the FARC that created new fronts of colonisation in places previously inaccessible due to the armed conflict, now under an apparent absence of territorial control. In addition, a wave of new illegal land grabbing activity by actors external to the region, that are reportedly financing illegal mining investments and the establishment of large cattle ranches, has increased the pressure on forests. Coupled with high deforestation levels, the absence of a national operational REDD+ registry at the time of the implementation of Colombia’s Carbon Tax Law has presented?significant challenges. Colombia’s recently approved MRV resolution has not clarified the availability of emission reductions to be paid for by REM. A portion of potential disbursements of REM funds have been restricted due to this uncertainty. A similar situation exists in Brazil. Latest discussions regarding improvements in Brazil’s MRV system, Forest Reference Emission Level (FREL) and potential discrepancies within the rules under similar funds could affect future UK disbursements in both States. BEIS is participating directly in ongoing discussions with KfW, Brazilian and other donor stakeholders on the best implementation of Brazilian Government and donor financing policies, to address this uncertainty.Outstanding actions from risk assessmentThe REM Programme, with support of GIZ, has developed the “Integral Management of Social and Environmental Risks”, a tool to help REM initiatives/partners comply with regulations and prioritise safeguard measures, initiative components and community projects. The tool has already supported the identification of updated and/or new risks and/or additional mitigation actions compared to BEIS’ respective Business Case. GIZ and KfW are currently identifying the most effective way to implement this tool across the REM Programme. In Colombia, it will contribute to following up on the National Safeguards System.G: COMMERCIAL CONSIDERATIONS (? page)Delivery against planned timeframeREM is delivering and/or in preparation to deliver most activities as originally scheduled. However, implementation of some activities was delayed. An initial list was presented during the light-touch progress review, covering implications for both Colombia and Brazil. The main reasons for the delays were: operational (limited staff at delivery partner level, new REM-IUs and/or finance mechanisms in place learning how to implement a complex initiative with several requirements), political (presidential campaign processes, post-conflict/safety, relationships between delivery partners, updates to the Indigenous component), regulatory (internal bureaucracy, new regulations in place). Actions to reduce/avoid delays during the years ahead?(including adjustments to the Operational Manual, deadlines for monitoring instruments, more straightforward ways to review documentation and give “no objections” from KfW etc.) have been discussed and agreed with?KfW, the REM-IUs and fiduciary mechanisms.?Performance of partnership(s) Donors, KfW, GIZ, REM-IUs and fiduciary mechanisms continue to proactively identify ways of improving the implementation of activities. Similarly, joined-up work with strong communication between partners helps to identify and mitigate initiative risks, adapt investments to new realities and policies, Benefit-Sharing Strategies and working plans. BEIS can continue to be an effective partner by working to align and/or improve the existing processes of KfW’s REM Programme, rather than introducing additional requirements that would require valuable time and focus from REM-IU’s.Asset monitoring and control BEIS has a high level of confidence over the monitoring of the results due to the regular reporting submitted by implementation partners, jointly with annual financial statements and independent financial audits in Colombia. This reporting confirms adequate levels of control and implementation of funds in line with donor agreements. KfW and fiduciary mechanisms in coordination with REM-IUs are currently improving existing templates for these processes based on lessons learnt during the implementation of the Colombia initiative to date. Since no UK disbursement has been made yet in Brazil, BEIS will be able to provide more information once finance mechanisms and REM-IUs have returned the first technical and annual financial reports (due July 2019). H: MONITORING & EVALUATION (? page)This Annual Review is the first analysis that attempts to assess all three BEIS-supported REM initiatives as one Programme. To do this effectively two main actions were needed:An integrated Logframe covering all three REM Programmes had to be agreed by the end of Q2 2018. This was not possible mainly because: REM Colombia is still pending approval of an updated Logframe by Colombia’s internal decision-making body and no-objection by the delivery partner KfW. REM Mato Grosso did not agree its Benefit-Sharing Strategy and draft-Logframe in time for the review process. The revision and alignment of?monitoring periods?for?all BEIS-supported REM initiatives.? KfW, fiduciary mechanisms, REM-IUs and BEIS agreed new deadlines for the Annual Technical and Financial Reports.A series of events (including Presidential elections in Colombia, limitations with staff at KfW, key documents that are still in “draft”, etc.) did not allow BEIS to complete such process before the Annual Review process started, therefore there are limitations to effectively assess it progress and results. Monitoring progress throughout the review periodAll Programmes have specific monitoring tools as agreed in contracts. It includes progress reports (every three months in Colombia and six months in Brazil), financial and technical annual reports, independent financial audits, independent mid-term evaluation, and end-of Programme reports.A Monitoring, Evaluation and Learning (MEL) Plan specifically for REM Acre is currently being drafted by implementation partners based on feedback from KfW and BEIS. The MEL Plan lays out how the initiative will monitor its resources, activities and results; how periodic assessments and analyses will guide and accompany implementation; and how the information generated from monitoring and evaluation will be reflected upon and used to improve further performance. The MEL Plan was expected to be completed by the end of Q2 2018, but it’s now expected to be completed by Q4 2018. Once completed, it will be used as a template to agree similar documents based on the needs of Colombia and Mato Grosso. Colombia’s independent mid-term evaluation was originally scheduled to start in February 2018 as agreed during the Annual Monitoring Mission to Colombia in September 2017. However, it was postponed for almost one year to start in Q1 2019 because:By February 2018 the initiative would not have been in its mid-term yet (a first BEIS payment to the initiative was completed by Q2 2016). Implementation partners, KfW and donors agreed that delays in the implementation of some relevant activities to the REM Programme meant that an earlier evaluation would be restricted to looking mainly at initial outputs/activities rather initial outcomes/benefits. It was also considered less effective to start an independent evaluation in the middle of political campaigns and electoral processes. Therefore it was agreed that the mid-term evaluation should be postponed. With participation of donors, KfW, and REM-IU a timeline for finalisation of TORs for the mid-term evaluation, objectives, the procurement/inception phase and BEIS’ role in this process will be agreed during the third Annual Monitoring Mission in October 2018. Some of the objectives include:Evaluate to what extent the initiative?meets the needs of key stakeholders, particularly the Government of Colombia, its partners and local communities (Relevance).?Evaluate the extent to which the progress made in?LogFrame’s?outcome indicators corresponds to what was expected in this stage of the initiative’s development (Efficacy).?Evaluate to what extent the investment of the initiative?is adequate in relation to the results obtained (Efficiency).?Evaluate the social and environmental impacts of the initiative?(Impact).Analyse?to what extent it is foreseeable that the positive results of the initiative will last (Sustainability)It is expected that this evaluation will provide conclusions and quantifiable, achievable and relevant recommendations resulting from the evaluation process. BEIS is currently exploring the possibility of implementing additional studies in Mato Grosso to collect robust data that would enable the UK to measure the impacts of the initiative over the medium to long term. Similar studies could be undertaken in Acre to strengthen the current tools and data collection put in place during Phase 1.I: TRANSFORMATIONAL CHANGE (? page)Rating: 2 In its results report for 2017, BEIS found that ICF’s intervention through REM is likely to have a transformational impact based on the reports provided by KfW and data collected during monitoring missions to Colombia. Brazil is currently excluded from this scoring due to the early stage of implementation of the Brazilian initiatives, nevertheless early evidence from Brazil is detailed below.Evidence and evaluationPolitical will and local ownership. In Colombia a full governance system has been created, including a high-level?decision-making?body that has?been fully operational and?shown?its potential as a forum for inter-sectoral coordination. A new National Strategy to Combat Deforestation, regional development and management plans for different biomes and relevant regulations have been approved and launched over the last year in Colombia.Capacity and capability can be increased. The Programme?is complex. It?requires?supporting and strengthening?local?staff?at national, regional and local levels.??Multiple institutions are now involved, including those newly created in the past year,?finding?ways to integrate sectors and interests?under a common development structure?(i.e.?mining,?energy,?infrastructure, conservation, post-conflict agenda, Indigenous Peoples). Depending on each country and state, several needs have been identified and the respective Benefit-Sharing Strategies are attending to these gaps. Innovation. The Programme?has proved to be?flexible enough to support interventions?not contemplated in the original design process but now?needed in?areas formerly controlled by the FARC. Although?deforestation rates?have increased in certain areas, the former Minister of Environment Murillo and President Santos?publicly expressed on different occasions that these?new interventions?have avoided even higher deforestation in specific areas. Other innovative approaches include introducing/modifying financial products that have generally not been available in the Amazon region or suitable to attend local needs. These credits are now in place and will be accessible to farmers in 2019.Evidence of Effectiveness is shared. The Programme will make evaluations publicly available. BEIS’ Annual Reviews will also be shared. Colombia is constantly updating its website with clear information regarding its initiative and the progress it has made. Acre has information available in Portuguese and English, and a consultancy project has started to collect data and make available the lessons learnt from Phase 1. A successful first exchange between governors from the Colombian and the Brazilian Amazon was supported by the REM initiative in Colombia in July 2017 to discuss strategies and create new models of sustainable development in the Amazon biome based on the experiences gained during these first years of implementation. BEIS is reviewing with KfW and other donors additional ways to disseminate lessons. In Colombia, MADS implemented lessons learnt to adapt the Amazon Vision delivery approach and created similar ways of working in other areas of the country, mainly in the Pacific Region under the “Sustainable Pacific Vision” initiative. ................
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