The Green Climate Fund (GCF) has approved the submission by Paraguay of 26 million tons of CO2 of forest emission reductions for a total value of 72.5 million USD.
The approval, announced at GCF’s 24th Board meeting, is in recognition of the successful efforts of Paraguay, home to the second largest forest ecosystem in South America, in reducing greenhouse gas emissions from deforestation and forest degradation between 2015 and 2017.
Paraguay’s Minister of Environment and Sustainable Development, Ariel Oviedo, said: “We are very grateful to the GCF and the board members for their trust in Paraguay. We are committed to honor that trust with positive actions in favor of our environment.”
Highlighting the “importance of GCF’s close collaboration with its partners,” Yannick Glemarec, Executive Director of the Green Climate Fund underscored the crucial roles of UNEP and FAO in helping turn drawing board ideas into innovative action.”
The project, which will catalyze a paradigm shift in the valuation of forests, will be implemented under the leadership of the Government of Paraguay.
The UN Environment Programme (UNEP), a UN-REDD Programme agency with vast experience working on nature-based solutions to climate change, will provide support in the process.
FAO and UNDP, partner agencies in UN-REDD, will collaborate in the implementation.
“The deployment of nature-based solutions such as REDD+ could deliver more than a third of the emissions reductions needed by 2030 if funded properly to achieve their full potential,” said Inger Andersen, Executive Director of UNEP.
“The GCF Board’s decision to reward Paraguay for its forest protection efforts is an important step in the right direction.”
The project is the result of a thorough process of REDD+ readiness, supported by the UN-REDD Programme.
The proceeds of the project will be used to finance the National Strategy for Forest and Sustainable Growth (ENBCS) and the operationalization of the National Climate Change Fund.
The ENBCS, based on a comprehensive and participatory analysis, identifies the most effective actions to address direct and indirect drivers of forest loss and barriers to change.
The National Climate Change Fund will finance actions towards Nationally Determined Contributions (NDCs), REDD+ activities and low-carbon development.
The results-based payments will reduce CO2 emissions through the conservation of forest cover, promotion of sustainable agriculture, participation of private sector and the strengthening of indigenous peoples and rural communities as guardians of the forests.