81318803-Improve conditions for access to and implementation of REDD+ in Brazil

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The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH is a German development agency primarily implementing technical cooperation projects commissioned by the Federal Ministry for Economic Cooperation and Development (BMZ). The "Action4Forests" project (04/2024-03/2028) aims to strengthen the capacities of Brazilian organizations and climate finance managers to improve access to and effective use of funds for forest conservation, sustainable management, and restoration in the Amazon region. The project collaborates closely with German Financial Cooperation (KfW), the Brazilian Ministry of the Environment and Climate Change (MMA), and the National Development Bank (BNDES), which manages the Amazon Fund. The Amazon Fund is a key financial mechanism under Brazil"s REDD+ program, channeling national and international donations to projects that reduce deforestation and promote sustainable use of the Amazon biome. These efforts support Brazil"s climate goals and the Brazilian Action Plan for Prevention and Control of Deforestation (PPCDAm), which is in its fifth phase (2023-2027), and has contributed to nearly a 50% reduction in deforestation since 2022. Brazil has committed to halting deforestation and achieving zero deforestation by 2030, as outlined in its updated Nationally Determined Contribution (NDC). The Multi-Year Plan 2024-2027 complements PPCDAm by defining concrete investments to reduce deforestation annually by 20%, aligning public actions with funding sources like the Amazon Fund and Brazil"s participation in international carbon markets, including under Article 6 of the Paris Agreement. Deforestation accounts for about 50% of Brazil"s greenhouse gas emissions. The federal government pursues an ambitious climate agenda focusing on reducing illegal deforestation and increasing the economic participation of Indigenous Peoples and Local Communities (IPLC). Subnational actors, especially state governments, play a growing role in forest protection and carbon credit generation. IPLC umbrella organizations - many women-led - are key to ensuring equitable, inclusive forest governance, vital for meeting the demand for high-quality carbon credits in voluntary markets. Brazil"s Federal Law No. 15,042/2024 established a regulated greenhouse gas emissions trading system (SBCE) with defined caps and integration of voluntary markets, including provisions to secure Indigenous and traditional community ownership of carbon credits, supporting equitable participation. The Amazon Fund plays a central role in Brazil"s engagement with carbon markets by supporting projects that reduce deforestation and enhance forest carbon stocks, generating high-integrity carbon credits. The project strengthens Brazil"s ability to produce and manage such credits through jurisdictional approaches and institutional capacity building, positioning the Amazon Fund as a credible actor in evolving global carbon markets. It also promotes robust governance and access to finance aligned with international standards. The project"s outputs are: 1. **Action4Governments:** Strengthening subnational systems to improve access to forest finance and participation in carbon markets, supporting knowledge exchange among states, municipalities, and key actors like CONAREDD+, CAL, and the Governors" Climate & Forests Task Force. Emphasis is placed on governance, readiness, and gender equality, with at least 50% participation of women. 2. **Action4People:** Enhancing IPLC-led umbrella organizations" capacity - many women-led - to access and manage funds for forest conservation, meet REDD+ readiness criteria (benefit-sharing, safeguards, governance, MRV), and participate in carbon markets as project developers or governance members. The project supports training, capacity building, and coordination with relevant ministries to strengthen IPLC roles and ensure gender parity. 3. **Action4Funds:** Supporting the Amazon Fund"s strategic positioning amid new carbon market legislation by advising on updated eligibility, methodologies, and financing mechanisms. This includes promoting gender-sensitive strategies, increasing subnational and local actor engagement, attracting additional international funds, and fostering knowledge exchange with other fund managers. The approach integrates REDD+ criteria to ensure equitable, inclusive forest finance aligned with Brazil"s national climate strategies. The Ministry of Environment and Climate Change (MMA) and BNDES are key partners. The project also works closely with state governments and IPLC umbrella organizations and community funds at subnational and local levels. Strengthening IPLC organizations" direct access to climate finance addresses structural barriers and enhances local ownership and inclusive forest governance. The project is designed to be scalable across biomes and funded by multiple donors. This consultancy focuses on Output 3 (Action4Funds), linking strongly to Outputs 1 and 2, aiming to enhance the Amazon Fund"s capacity to mobilize, manage, and disburse funds efficiently and innovatively, including adapting to new regulatory requirements, addressing risks, and promoting scalable forest finance governance innovations.

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