The $50 million agreement will help to alleviate poverty among forest-dependent communities, while reducing carbon emissions from deforestation and forest degradation.
ANTANANARIVO, February 5, 2021 - Madagascar's Ministry of Finance and Ministry of Environment, Ecology and Forests signed a landmark agreement today with the World Bank's Forest Carbon Partnership Facility (FCPF), unlocking up to $50 million for efforts to reduce carbon emissions from deforestation and forest degradation between 2020 and 2024. With this Emission Reductions Payment Agreement (ERPA) in place, Madagascar is expected to reduce 10 million tons of carbon dioxide emissions from the country's rainforest-rich eastern coast.
"Reducing emissions related to deforestation and forest degradation is a crucial part of Madagascar's effort to fight climate change," said Marie-Chantal Uwanyiligira, World Bank Country Manager for Madagascar. "The agreement signed today puts the country on track to achieve its ambitious climate targets while improving rural livelihoods. Madagascar is doing its part in the global fight against climate change, as we are in this together."
"The Madagascar government is delighted this agreement has been signed. It will allow Madagascar to sustainably finance its current policy of regreening the island and the restoration of forest landscapes, while rewarding local actors and the territories that contribute to restoration efforts. The Ministry will ensure fairness in the redistribution of revenues and make it a tool in the fight against precariousness while reducing pressure on the island's unique biodiversity," said Baomiavotse Vahinala Raharinirina, Minister of Environment and Sustainable Development.
Madagascar's Emission Reductions Program is designed to increase agricultural productivity and reduce rural poverty while improving soil quality, conserving water resources, and protecting vital forests and biodiversity. The program area covers 10% of the country, stretching across almost 7 million hectares along the country's eastern humid forest ecoregion. This region is home to more than half of Madagascar's biodiversity-rich rainforests, which are threatened by agricultural expansion.
The program builds on the country's integrated agriculture landscape approach that aims to address the direct and indirect causes of deforestation and degradation and protect important watersheds. The program reinforces conservation and community forest management and builds on forest-friendly agroforestry value chains, such as vanilla.
Madagascar is the fifth country in Africa and the eleventh globally to reach such a milestone agreement with the FCPF. The total contract value of the 11 FCPF ERPAs is now in excess of $550 million. ERPAs are innovative instruments that incentivize sustainable land management at scale and help to connect countries with other sources of climate financing. The resources from the FCPF provide new opportunities to conserve and regenerate forest landscapes and biodiversity while simultaneously supporting sustainable economic growth, which is critical for Madagascar's development going forward.
The Forest Carbon Partnership Facility (FCPF) is a global partnership of governments, businesses, civil society, and Indigenous Peoples' organizations focused on reducing emissions from deforestation and forest degradation, forest carbon stock conservation, the sustainable management of forests, and the enhancement of forest carbon stocks in developing countries, activities commonly referred to as REDD+. Launched in 2008, the FCPF has worked with 47 developing countries across Africa, Asia, and Latin America and the Caribbean, along with 17 donors that have made contributions and commitments totaling US$1.3 billion.
