17 January 2014
The 2012 Framework Law of Mother Nature and Holistic Development for Living Well, established the Joint Mitigation and Adaptation Mechanism, Bolivia’s alternative to REDD+. It also created the Plurinational Mother Earth Authority (Autoridad Plurinacional de la Madre Tierra; APMT), which will oversee its operation and the Plurinational Climate Change Fund (Fondo Plurinacional de Cambio Climático; FPCC) to channel, administer and assign funds for the APMT to achieve its functions. According to Supreme Decree 1696 of 2013, the FPCC has an initial budget of BO14m (approximately US$2m). The FPCC can also raise funds itself.
To date (October 2013) The MCMA is being developed with national funds. There are also currently two sources of international funding in the pipeline: (i) Approximately US$25m over five years from the Danish Government; and (ii) US$1.1m from UN-REDD which will be implemented by FAO. Bolivia had requested that UN-REDD reassign the total of the funds approved for REDD+ in Bolivia (US$4.m) to the MCMA. When it met in Brazzaville in 2012, however, the Policy Board decided that MCMA was not similar enough to REDD+ to receive the full amount, assigning instead the US1.2m that had already been disbursed.
Bolivia believes that financing community led holistic and sustainable management projects is the best way to simultaneously reduce deforestation and poverty. However this implies spending up front to secure subsequent benefits. For this reason Bolivia is looking for large scale ex-ante international financing as opposed to payments for results. An econometric analysis by the Bolivian think tank INESAD, suggests that ideally the MCMA would need US$1bn every four years, an investment of approximately US$10/ha/year.
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