Application Title Climate Resilient Sustainable Coastal Forestry in Bangladesh

Country/ Region Bangladesh

Accredited Entity Infrastructure Development Company Limited (IDCOL)

Approval Date 14 June 2019

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Notes • The PPF supports the development of projects and programmes and enhance their

quality at entry into the Fund’s pipeline. With a view to enhancing the balance and diversity of the project pipeline, the PPF is designed to especially support Direct Access Entities for projects in the micro-to-small size category. International Accredited Entities seeking project preparation support from the PPF are encouraged to do so especially for LDCs, SIDS and African countries where no Direct Access Entity is accredited. All Accredited Entities are encouraged to articulate counterpart support for project preparation within their requests for support from the PPF.

• A PPF submission should include below documents: 1. PPF request (this form) 2. PPF No-Objection letter1 3. Concept Note

• Please copy the National Designated Authority (ies) when submitting this PPF request. • Requests for support from the PPF should be submitted at the same time or following

submission of a GCF Concept Note for a project or programme. • Further information on GCF PPF can be found on GCF website Project Preparation

Facility Guidelines.

1Please note that the PPF No-Objection Letter is different from the Funding Proposal No-Objection Letter. PPF No-Objection Letter template can be downloaded from here.

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2 See here to download the Concept Note template. 3Template for PPF No-Objection Letter can be downloaded here.

A. Executive Summary

Accredited Entity (AE)

Name: M.Mosleh Uddin Position: Unit Head-GCF Email: mosleh.uddin@idcol.orgTel:+8801615973097 & +880-996-6743265 (EXT 295) Full Office address:UTC Building, 16th Floor,8 Panthapath, Kawran Bazar, Dhaka-1215, Bangladesh

Has a Concept Note2 been submitted in association with this request for support from the PPF?

Yes ☒ No ☐ If yes, please indicate Project/Programme title: Climate Resilient Sustainable Coastal Forestry in Bangladesh

Has a No-Objection Letter3 been submitted for this request for support from the PPF?

Yes ☒ No ☐ (Please note that a PPF No-Objection Letter is a requirement for the submission of this request)

Total Cost

Total cost of Project Preparation activities: US 353,040.00 $ Amount requested from the PPF: US 337,740.00 $ Counterpart funding from the AE: US 15,300.00 $

Anticipated Duration Number of months to implement the Project Preparation activities:06 Months

Summary of the request for Project Preparation support

(Please provide a maximum 200 words brief description of the Project Preparation activities to develop the Concept Note into a Funding Proposal with support from the GCF’s Project Preparation Facility.) The objective of the Project entitled, “Climate Resilient Sustainable Coastal Forestry in Bangladesh” is to reduce forest degradation and increase forest coverage through participatory planning/monitoring to contribute in building the long-term climate resilience of selected communities in coastal areas of Bangladesh. The coast of Bangladesh is extremely vulnerable to natural disasters like cyclones, storm surges, tidal floods, river erosion and salinity intrusion. The project will promote climate resilient livelihood activities in targeted areas by following a conservation-linked value chain approach. This is expected to improve and diversify non-forest-based livelihood opportunities of poor forest-dependent households in selected communities and thus safeguard the forest and ensure sustainability of the project. PPF support from GCF is needed to conduct the following studies, which will help identify available information and fill information gaps to develop a full funding proposal. The results will be included in the final proposal which will then be sent to the Board for funding. 1. Feasibility studies: A thorough and comprehensive feasibility assessment and analysis must be undertaken to ensure a successful implementation of potential investments. The main proposed activities include: collection of baseline data, identification of specific target areas, stakeholder consultation, studying the proposed project outcomes and outputs to address the baseline situation, and market and value chain identification for economic analysis. These activities are essential to identify potential risks and ensure financial viability of investments in the context of man-made mangrove forests and coastal areas in Bangladesh. 2. Environmental, Social and Gender studies: An Environmental, Social and Gender assessment will be developed to ensure that the programme is implemented in an environmentally and socially sustainable manner and in full compliance with the environmental and social policies and regulations of both the GCF and the Bangladesh Government. This will include preparing the environmental and social impact assessment for the project and establishing an overall social and environmental management

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4The PPF can provide support within the following project preparation activity areas:

i. Pre-feasibility and feasibility studies ii. Environmental, social and gender studies iii. Risk Assessments iv. Identification of programme and project level indicators

Other activities of direct relevance for Direct Access Entities that the PPF can support are as follows: v. Pre-contract services, including the revision of tender documents vi. Advisory services and/or other services to financially structure a proposed activity vii. Other project preparation activities, where necessary, and with sufficient justification

framework. A gender analysis and action plan will also be developed to mainstream gender consideration into the funding proposal and into overall project implementation. The objective is to ensure that women, children and the most vulnerable populations duly benefit from the implementation of this project both in short- and long- run. These activities are needed to determine the project strategy, priorities, key partners, and key barriers to success. 3. Risk assessments: This task will undertake a risk assessment for the project and how these can be mitigated and managed. The assessment will include social, environmental, operational, financial risk assessment and suggestion of risk mitigation measures. It is needed to define all relevant aspects of the project justification and conduct risk analysis. The risk assessment will quantify hazard, exposure and vulnerability and propose different measures to achieve predefined objective in terms of risk reduction, with respect to their costs. 4. Identification of project-level indicators: This task will include identification & measurement of GCF core indicators relevant to the project, and formulation of a methodology to be used for calculating this core indicators. The indicators will be manageable and realistic bearing in mind the scope and timeframe for the project and associated data collection. This is needed to clearly identify project interventions boundaries and scope, justify project duration and size, to clearly access paradigm/transformational shift potential, sustainable development potential, and efficiency and effectiveness of the proposed project. These activities will help collection of information and data which will help to appraise the project in a better way. The above-mentioned studies and cross-checking of information with the authorities of the country is essential for the successful implementation of proposed project.

B. Description of Project Preparation Activities

Outputs and Activities (Please select Activity Areas4, activities, and deliverables as needed)

Month (Please shade the implementation period from the starting month of

the Output and Activity in the schedule. Please also indicate the month of completion of each deliverable with “X” in the

corresponding cell)

1 2 3 4 5 6 7 8 9 10

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Activity and deliverable 1: PPF activity area: Pre-feasibility, feasibility studies and project design The following activities, minimum but not limited to, will be taken under Activity & deliverables 01:

a. Feasibility study, where a range of problems will be identified through investigation and rapid risk assessment exercises in the coastal zone and a wide range of options will be identified for solution. Existing plan, national policy documents, guidelines and data from ongoing and previous projects, studies, feasibility

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assessments, etc. relevant to the assignment will be collected and catalogued during the background study to establish a comprehensive baseline.

b. Stakeholder consultations at national and project level implementation including coastal communities. Develop the multi-stakeholder engagement plan and the consultations that will be conducted. Key stakeholders who need to be consulted during feasibility study should include : Communities or populations who will be directed impacted from the programme, community leaders, government organizations (national and local, government organizations), private sectors, civil society organizations (CSOs), academics or researchers, NGOs, employees, workers, subcontractors, LFIs, suppliers, consultants, Ministry of Environment & Forests (MOEF), Bangladesh Forest Department (BFD). Stakeholder consultation should consider providing opportunities for both women and men and ensure meaningful engagement of women and vulnerable groups

c. Identification of specific target areas and baseline of ecosystem services condition of the project area including quantifying the impact of proposed initiatives both in terms of financial impact as well as other benefits.

d. Conduct study to quantify more precise carbon sequestration potential, vulnerability and projected referenced climate change impacts.

e. Study on the project outcomes and the outputs that will improve the baseline scenario.

f. Visit 04 forest zones to conduct baseline survey on different socio-economic aspects and conduct technical, financial and economic feasibility of different alternative livelihood options as well as proposed operational and funding models that result in a sustainable project.

g. Analyse the feasibility & operational model for pilot PES scheme

h. A Cost Benefit Analysis including value chain development and financially suitable mechanism need to be developed. Within the assessment, adequate attention will be given to socio-economic scenarios of coastal zones.

i. The study should consider analysing innovative ways to incentivise achievements of results regarding microfinance. This may be complemented with possible REDD+ results-based payments. Thorough analysis on the economic return and ecosystem service valuation for mangrove restoration will be explored including the potential options of how the loan will be repaid.

j. Preparing the budget/fund size. k. Justifying the level of concessionality.

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l. Facilitate and guide consultations to determine project strategy, priorities, key partners, and key barriers to success;

m. Oversee and support completion of all background studies, ensuring they are appropriate in scope and provide required analyses in good quality;

n. Develop a detailed Theory of Change (TOC) for project that adequately reflects project impacts;

o. Develop a co-financing framework, loan repayment method and the assessment of resources leveraging potential;

Deliverables: i. Detailed feasibility study reports for the project. ii. Cost-benefit analysis report iii. Financial Assessment report iv. A summary report with a number of key findings and recommendations for consideration in further planning, with additional relevant background material in a series of annexes to the feasibility report. v. A report of stakeholder consultation, and stakeholder engagement plan, Activity and deliverable 2: PPF activity area: Environmental, social and gender studies The following activities, minimum but not limited to, will be taken under Activity & deliverables 02:

a. A Social and Environmental Screening Procedure will be carried out to identify possible environmental and social impact of the project and define the risk level of the project. The screening will also identify the required action to mitigate the potential social and environmental risks. The study will i) gather secondary data through the review of data sources for laws and regulations, national reports, documents and website and internet ii) review GCF- ESS and gender guidelines and other relevant reports/documents, iii) review existing projects implemented by BFD, and iv) review documents and lesson learnt on relevant projects.

b. A limited focus Environmental Social Impact Assessment (ESIA) is to be prepared for the proposed project for the moderate risks identified. This should be accompanied by an ESMP with mitigation measures.

a. Review of current environmental policy, laws and regulations, specific policy, strategy and legal instruments.

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b. Prepare a gender assessment and action plan to identify entry points for gender-responsive actions to be taken under each of the project activities. It will also mainstream gender considerations in the project and detail actions for stakeholder engagement and management in alignment with Mainstreaming gender in GCF projects toolkit.

c. Stakeholder consultation with communities or vulnerable populations, community leaders, government organizations (national and local, government organizations), private sectors, civil society organizations (CSOs), academics or researchers, NGOs, employees, workers, subcontractors, suppliers, consultants, MOEF, BFD to elaborate a stakeholder involvement plan.

d. A report of stakeholder consultations undertaken during the preparation of the project and a stakeholder engagement plan detailing how stakeholders will be engaged by IDCOL and Bangladesh Forest Department during the implementation of the project.

e. Designing a project-level grievance redress mechanism.

f. Desk review of national policies, recommendations and lessons learned from past studies and assessments on gender from Bangladesh, civil society organizations, the private sector and multilateral development organizations for gender inclusiveness.

g. Development of Environmental and Social Management Plan, and how the project/programme will avoid or mitigate negative impacts at each stage (e.g. preparation, implementation and operation), in accordance with the Fund’s Environmental and Social Safeguard (ESS) standard.

h. Demographic studies in the sectors: number of beneficiaries impacted, gender-wise impacts.

Deliverables:

i. A detailed Environmental and Social Management Framework Report

ii. A limited focus ESIA for the moderate risks identified, accompanied by an ESMP with mitigation measures

iii. A report of stakeholder consultation and a stakeholder engagement plan

iv. Project-level grievance redress mechanism. v. A gender assessment and action plan.

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Activity and deliverable 3: PPF activity area: Risk assessment The following activities, minimum but not limited to, will be taken under Activity & deliverables 03:

a. A risk assessment analysis will be conducted to identify any substantial technical, operational, financial, social and environmental risks including leakage/displacement as well as any risk related to gender issue & drivers of deforestation and forest degradation that the project may face, and propose respective risk mitigation measures with consultation from sectorial experts and relevant stakeholders.

b. Prepare risk assessment report based on the knowledge on risks identified through direct visit and observation of project area and previous project interventions.

c. Review institutional, administrative, organizational, technical, environmental, social, economic, and financial aspects of the project and identify potential risks and corresponding mitigate actions.

d. Risk assessment for the afforestation/planting interventions, the livelihood alternatives and the innovative financing schemes.

e. Identify the key actors involved in the delivery of the different project components. This will involve the combination of GoB Ministries, departments, different stakeholders and communities.

Deliverables: i. A detailed risk assessment report.

Activity and deliverable 4: PPF activity area: Identification of programme/project level indicators The following activities, minimum but not limited to, will be taken under Activity & deliverables 04:

a. Identification & measurement of GCF core indicators relevant to the project

b. Detailed methodology formulated to be used for calculating this GCF core indicators.

c. Describing how the project/programme’s indicator values compare to the appropriate benchmarks (i.e. the indicator values for a similar project/programme in a comparable context).

d. Providing means of verification of expected results quantified against each indicator.

e. Framework for monitoring and measurement of the output and impacts of the Project to measure achievement, progress and adapt required corrective measures.

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C. Justification of the Project Preparation Request (Please provide rationale for the AEs’ need to receive GCF Project Preparation fund to strengthen development of the corresponding funding proposal. Especially for international AEs, please outline counterpart resources that will complement GCF PPF fund also in the budget table in section E.)

The proposed project will be implemented by Bangladesh Forest Department (BFD), a Government body responsible for the protection and maintenance of forests and wildlife. BFD implements various projects that are funded by international multilateral organisation; however so far, they have not required any project preparation funding because usually the respective fund provider carried out these preparation responsibilities with their own resources. Therefore, besides sharing existing resources they do not have any separate fund allocated by the Ministry related with PPF activities of GCF. As a result, there is limited scope for BFD to prepare a funding proposal for a competitive funding mechanism like Green Climate Fund. Jointly, BFD and IDCOL have already spent resources to develop the concept note and need additional support to develop the full funding proposal with the relevant activities of the PPF. Here IDCOL will take the complete responsibility for successful execution of PPF activities, with support from BFD. The expertise involved in the activities mentioned in the deliverables are very specific and could possibly involve local & international consultants, numerous field studies, robust analysis of the viability and sustainability of project interventions. Particularly there is a need of comprehensive financial sustainability study in terms of economic viability of this project and stakeholder engagement in remote areas in the coastal zone of Bangladesh. To develop a full funding proposal, IDCOL and BFD must spend significant amount of resources to obtain the required supporting documents. Being a Government agency, it is often hard for BFD to mobilize resources and allocate budget for this type of studies as the budget is prepared annually and there is limited scope for revision/amendment or even allocation. In the absence of a project preparation fund, without PPF support, some of these activities may not be undertaken, which could ultimately result in flawed project design

f. Prepare and logical framework with SMART indicators;

g. A project level indicator will be set up on three aspects: mitigation, adaptation and implementation planning. The selected indicators will be validated to secure if they are appropriate for the project.

h. The project level indicators will be used in conjunction with the Project Scorecard and management experience as an aid in assessing a project's risk and complexity level.

i. Develop a tracking method for pre-identified risk thresholds/trigger levels that has been identified in the project feasibility and risk assessment report.

j. Develop a standard reporting format that will capture the effectiveness of planned and achieved output and outcomes.

Deliverables: I. A guideline and a logical framework. II. Monitoring and Evaluation Framework. III. Standard reporting format that will capture the effectiveness of planned and achieved output and outcomes Estimated time for submission corresponding full Funding Proposal to the GCF (Please indicate the month with ‘X’.)

X

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and reduced impacts. The PPF funding from the GCF will allow IDCOL & BFD to address these challenges, which will help to make an accurate project design, identify and maximize the potential impact of the underlying project, and address barriers for implementation. As the NIE of the project, IDCOL will be involved in the PPF activities by engaging its existing resources, most of which will be in kind.

D. Implementation Arrangement

(Please include information on implementation arrangements for proposed Project Preparation activities. Please provide TORs for all consultants to be contracted with PPF activities.)

IDCOL will work closely in collaboration with the Bangladesh Forest Department (BFD) to conduct the PPF activities. IDCOL’s GCF Unit will manage PPF funds and supervise overall compliance with GCF procedures. A separate program manager will be appointed, or additional charges will be conferred upon an existing official. The ToRs for activities proposed to be carried in this PPF are provided as a separate document. Below is the explanation on how the programme would be administered. 1. Employment of consultant as per IDCOL’s procurement policy: • Under the provision of IDCOL’s procurement policy, IDCOL is entitled to undergo direct solicitation/

selection method for the procurement of consultancy services as long as the reason is justifiable. • IDCOL seeks to engage the Centre for Climate Change and Environmental Research (C3ER), BRAC

University for conducting the PPF activities and formulation of GCF funding proposal for climate resilient sustainable coastal forestry project.

• Centre for Climate Change and Environmental Research (C3ER) is a research Centre of BRAC University, which is the leading private university in Bangladesh. In terms of hiring C3ER as single sourcing procurement, the centre already has a good track record of developing and managing projects of different national and international donors including multilateral donors like, World Bank, UNDP, USAID, GIZ, KfW and others. C3ER is already familiar with Green Climate Fund (GCF) process and was involved in developing several GCF concept notes and funding proposals for both private and public sectors. Besides, C3ER organized series of GCF proposal development workshops in order to develop the capacity of government, non-government and private sector officials to access climate fund. C3ER is capable of handling this type of projects and has previous track record of developing project proposals that includes social and gender inclusion. Moreover, the centre completed numerous research on coastal vulnerability assessment, community led project implementation as well as familiar with the local government institutions. Considering the experiences, support in developing the concept note and recommendation from experts, IDCOL management has decided to engage C3ER in developing the full funding proposal.

• In order for this to happen, IDCOL’s Procurement team (who reports directly to the Head of Operations) will first assess the procurement request, to ensure that the justification provided for direct selection is compatible with IDCOL’s procurement policy and also satisfies the single source selection criteria of GCF as per the Fund’s Administrative Guideline on Procurement.5

• Once IDCOL’s Procurement Department is satisfied with the justification provided for the Direct Selection/Solicitation of C3ER, they will prepare a memorandum for IDCOL’s Management approval. Once approved, the memorandum will subsequently be placed in IDCOL’s Board Meeting for the final approval as the procurement amount exceeds the threshold of BDT 5 million6.

• If IDCOL’s Board approves the procurement of C3ER, IDCOL will sign a legal agreement with C3ER for conducting the PPF activities as per the ToR approved by GCF, for the development of GCF funding proposal for climate-resilient sustainable coastal forestry in Bangladesh.

2. IDCOL’s implementation arrangement with C3ER

5 IDCOL in addition to its own procurement policy, follows respective procurement policies of the donor agencies during respective procurement of goods and services e.g. IDCOL procures necessary goods, works, and services following the World Bank Guidelines (available on <www.worldbank.org/procurement>) for procurement under the World Bank funded projects, for the JICA funded projects, IDCOL follows JICA guidelines (available on <http://jica.go.jp/english>), IDCOL follows KFW guidelines (available on <www.kfw.de>), etc. 6 Section 8 of IDCOL’s procurement policy requires all the procurement above BDT 5 million to be authorized by IDCOL’s Board members.

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• C3ER will have complete charge of experts and sub-consultants, performing the services and shall be fully responsible for the services performed by them or on their behalf. C3ER will be the lead consultancy firm to collaborate both with local consultants and IDCOL staff to develop the PPF activities. IDCOL and BFD will closely monitor the selection process of the individual consultants and experts under the contract.

• C3ER has already been engaged for the past 10 months as ‘technical assistance consultant’ for developing the concept note and PPF application. The C3ER team is already familiar with the proposed activities and components of the projects and they have experience in the area of adverse impact of climate change, forestry, food security, livelihood, displacement, loss and damage assessment, technology transfer, education and awareness, etc.

• Being one of the prominent Climate Change Centres, C3ER has previous track record in developing similar project proposals for multilateral organizations, such as the Adaptation Fund, UNDP, World Bank etc. Moreover, given that the timeline for submitting the GCF funding proposal is fast approaching for available GCF board in a year, engaging C3ER on single source basis will save valuable time and resources for IDCOL. The firm will be single sourced as the local market does not consist of large options to justify the cost and time related with bidding process.

• C3ER has a dedicated team advising and supporting clients in developing economies including Bangladesh for access to GCF funds. C3ER also supported IDCOL in developing some other concept notes for GCF.

• The selection of C3ER has primary been agreed with IDCOL’s management. The rest of the formalities for engaging them with PPF activities will be completed in line with procurement policy, adopted by IDCOL, upon approval form GCF.

• Finally, IDCOL will be responsible for the overall project and financial management of this PPF. 3. Full disclosure of PPF outputs As per the requirement of GCF’s Information Disclosure Policy (IDP), IDCOL will ensure full disclosure of the PPF outputs in its website (http://idcol.org/home) to ensure it is publicly available for use by relevant actors in the country. 4. IDCOL shall implement the Project Preparation Activities with the goal of submitting a funding proposal for approval by the Board within 2 years of the approval of the Project Preparation Funding Application. IDCOL shall notify the Fund as soon as it has reasons to believe that a submission within this timeframe may not be possible

E. Budget7 Details and Disbursement Schedule

Detailed budget was removed due to confidential information

7 “Sub-total cost” must be provided for each activity, and broken down by the “cost categories” (e.g. Consultants, Travel, Equipment, Training & workshops, Others). Please provide sufficient breakdown of costs to enable effective review.

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Project/Programme Title: Climate Resilient Sustainable Coastal Forestry in

Bangladesh.

Country(ies): Bangladesh

National Designated Authority(ies) (NDA):

Economic Relations Division, Ministry of Finance-Government of the People's Republic of Bangladesh.

Accredited Entity(ies) (AE): Infrastructure Development Company Limited (IDCOL)

Date of first submission/ version number: [2018-02-08] [V.1]

Date of current submission/ version number [2018-11-18] [V.2]

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Notes • The maximum number of pages should not exceed 12 pages, excluding annexes.

Proposals exceeding the prescribed length will not be assessed within the indicative service standard time of 30 days.

• As per the Information Disclosure Policy, the concept note, and additional documents provided to the Secretariat can be disclosed unless marked by the Accredited Entity(ies)(or NDAs) as confidential.

• The relevant National Designated Authority(ies) will be informed by the Secretariat of the concept note upon receipt.

• NDA can also submit the concept note directly with or without an identified accredited entity at this stage. In this case, they can leave blank the section related to the accredited entity. The Secretariat will inform the accredited entity(ies) nominated by the NDA, if any.

• Accredited Entities and/or NDAs are encouraged to submit a Concept Note before making a request for project preparation support from the Project Preparation Facility (PPF).

• Further information on GCF concept note preparation can be found on GCF websiteFunding Projects Fine Print.

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A. Project / Programme Information (max. 1 page) A.1. Project or programme Project

☐ Programme A.2. Public or private sector

Public sector ☐ Private sector

A.3.Is the CN submitted in Response to an RFP?

Yes ☐ No If yes, specify the RFP: ______________

A.4. Confidentiality1

☐ Confidential Not confidential

A.5. Indicate the result areas for the project/programme

Mitigation: Reduced emissions from:

☐ Energy access and power generation

☐ Low emission transport

☐ Buildings, cities and industries and appliances

Forestry and land use Adaptation: Increased resilience of:

Most vulnerable people and communities

☐ Health and well-being, and food and water security

☐ Infrastructure and built environment

Ecosystem and ecosystem services

A.6. Estimated mitigation impact (tCO2eq over lifespan) 79.16 Million tonne CO2 eq

A.7. Estimated adaptation impact (number of direct beneficiaries and % of population)

9,925,881 (6.89% of the total country population)2

A.8. Indicative total project cost (GCF + co-finance) USD $ 80 million A.9. Indicative GCF

funding requested USD $ 60 million

A.10. Mark the type of financial instrument requested for the GCF funding

☐ Grant ☐ Reimbursable grant ☐ Guarantees ☐ Equity ☐ Subordinated loan Senior Loan ☐ Other: specify___________________

A.11. Estimated duration of project/ programme:

a) disbursement period: 2020-2024 b) repayment period, if applicable: 2030-2050

A.12. Estimated project/ Programme lifespan

30 years

A.13. Is funding from the Project Preparation Facility requested?3

Yes No ☐ Other support received☐ If so, by who:

A.14. ESS category4 ☐ A or I-1 B or I-2 ☐ C or I-3

A.15. Is the CN aligned with your accreditation standard? Yes No ☐

A.16. Has the CN been shared with the NDA?

Yes No ☐

A.17. AMA signed (if submitted by AE)

Yes No ☐ If no, specify the status of AMA negotiations and expected date of signing: The negotiations will start upon the initial approval of the concept note and possible date in March, 2018

A.18. Is the CN included in the Entity Work Programme?

Yes No ☐

A.19. Project/Programme rationale, objectives and approach of programme/project (max 100 words)

Brief summary of the problem statement and climate rationale, objective and selected implementation approach, including the executing entity(ies) and other implementing partners.

1. Coastal zones of Bangladesh are highly vulnerable to climate change due to the combined effects of sea level rise, increased intensity of cyclones and associated

1Concept notes (or sections of) not marked as confidential may be published in accordance with the Information Disclosure Policy (Decision B.12/35) and the Review of the Initial Proposal Approval Process (Decision B.17/18). 2 As per BBS 2011, the population of the 37 upazilas under the green belt study area is 9,925,881 which is 6.89% of the total country population. This number will be confirmed for both direct and indirect beneficiaries in the feasibility report. 3See here for access to project preparation support request template and guidelines 4 Refer to the Fund’s environmental and social safeguards (Decision B.07/02)

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storm surges. Mangrove forests are an integral part of coastal ecosystem which act as a major carbon sequester, provide economic resource and reduce vulnerability of storm surges through coastal protection. Increased climate vulnerabilities and over exploitation of natural resources are degrading the mitigation potential of the mangroves and threatens the communities (9.9 million)5 dependent on it.

2. The main objective is to increase carbon sink and increase ecosystem and community resilience through forestry. Support mechanisms, such as integrated zone management and knowledge sharing, will also be promoted. The Bangladesh Forest Department (BFD) will implement the project and IDCOL will be the accredited entity.

B. Project / Programme details (max. 8 pages) B.1. Context and baseline (max. 2 pages) 3. Bangladesh is one of the most vulnerable countries to climate change impacts in the world because of its long coast,

flat topography, abundance of rivers, large deltas, high population density and low level of development. Most parts of Bangladesh are less than 12 m above the sea level, and it is believed that about 10% of the land would get water logged if the sea level rises by 1 m. The coastal region of the country is characterized by vast river networks, enormous discharge of sediment-laden water, large number of islands in between the channels, rivers and shallow area all along the coast. Bangladesh is the most thickly populated country in the globe, having over 160 Million people living on an area of 147 570 Km2. This combination of factors makes Bangladesh very susceptible to future sea level rise expected to occur due to impact of climate change. Furthermore, the country was ranked sixth among the world’s top ten countries most affected by most extreme events in the last 20 years according to the Global Climate Risk Index by think-tank Germanwatch in 2017.6

4. Bangladesh is mainly comprised of fertile alluvial floodplains that drain into the Bay of Bengal via a constantly changing network of estuaries, tidal creeks and an active deltaic coastline of the Bay. The coastal zone of the country is highly exposed to natural phenomena like cyclones, storm surges, tidal floods and river erosion and salinity intrusion. Over the last 30 years some 7,500 hectares have been submerged by rising sea7. Intensity of cyclonic storm surges as well as depth and extent of storm-surge-induced coastal inundation are likely to increase in changing climate through rising sea surface temperature (SST) and sea level (IWTC 2006; Hansen and Sato 2011). The IPCC further indicates that future cyclonic storm surges and related coastal floods will likely become more severe as future tropical cyclones increase in intensity.8 Across most models the flooded area is estimated to increase for most of the flood season due to climate change. By applying future flooding scenarios using the Master Plan Organization (MPO) flood depth classification, it is estimated that the flooded areas will increase by 6% (2030s) and 14% (2050s).

5. Rainfall and temperature patterns are likely to change in the future due to global climate change. A rise in the minimum temperature by 0.45°C and 0.52°C are observed during the winter (DJF) and monsoon (JJA) seasons respectively. The maximum temperatures are also observed to have increased during the pre monsoon (MAM) and post monsoon (SON) months by 0.87°C and 0.42°C respectively.9 By 2050 areas affected by cyclones and storm surges will increase from 20,876 sq. km at present to 23,764 sq. km as a consequence of climate change. Further rise in temperature is expected in the latter half of the century. The rainfall pattern is going to be more variable and erratic in the future. It is approximated that Bangladesh could lose up to 15% of its land under the sea (approximately 2500, 8000 and 14000 sq. km. of land will be lost due to sea level rise of 0.1 m, 0.3 m and 1.0 m respectively) and about 30 million people living in the coastal area may become climate refugees because of this. Migration of people inland will raise population density there causing socio-economic problems and other harmful impacts to their livelihoods. Sea level rise will bring more coastal area under inundation. Coastal waters will become more saline and soil salinity will also increase.

6. As the tidal flow and wave action is high in the mangrove forest area so only 45 centimeters sea level rises would inundate about 75 percent of forest area and 67 centimeters rise in sea level would submerge the entire Sundarbans. For this reason, the mangroves, estuaries, low-lying coastal plains, tidal deltas, coastal wetlands and coral reefs of coastal areas are at high risk due to the increasing frequencies of cyclones and storm surges which further affects the ecosystem and biodiversity of that region. These impacts eventually have adverse effects on the socio-economic systems of the coastal

5 As per BBS 2011, the population of the 37 upazilas under the green belt study area is 9,925,881 which is 6.89% of the total country population. 6 Global Cilamte Risk Index 2017, Germanwatch 7 Forest Investment Plan (2017). Government of People's Republic of Bangladesh 8 IPCC (2007). Climate Change 2007: Impacts, Adaptation and Vulnerability: Summary for Policymakers. Working Group II Contribution to the Intergovernmental Panel on Climate Change Fourth Assessment Report. IPCC, Geneva. 9 Second Nnational Communication of Bangladesh to the UNFCCC, MoEF 2012

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area because of the strong reliance of coastal livelihoods on ecosystem services.

The proposed project area has outlined potential boundary of green belt zone in the sea facing 37 upazilas10. About 25% of the country’s population lives in these coastal areas which are rich in many valuable resources including fertile agricultural lands, fishery, ecologic diversity, tourism, etc. Unfortunately this region is also periodically devastated by certain hazards that impact the rest of the country with the much lesser degree of severity. This has necessitated some unique measures to provide protection to the large group of population living in this zone of which greenbelt is one.11

7. Mangroves forests are an integral part of coastal ecosystems. Forests in Bangladesh play a crucial role for the livelihoods of communities. The Sundarbans is treated as a global carbon sink of~205 Mt CO2 per year12. In addition, the Sundarbans provide both tangible and intangible services for about 3.5 million people. Among the tangible or provisioning services, the mangroves provide food such as honey, fish, shrimp, crabs, timber, fuel wood, thatching materials, herbs, and ornamental plants, as well as other ecosystem services, including detritus and nutrient production, water purification, sediment trapping, and surface water storage. Every year the Sundarbans contribute 62.5 million USD to national economy and provide livelihoods worth 20.125 million USD to local communities13. In addition, mangrove forests contribute to flood and erosion control, coastal stabilization through land accretion, nurseries for marine fisheries, storm protection, and pollution filtering. Mangroves are particularly efficient sinks, sequestering four times carbon per unit area compared with terrestrial forests in the tropics (Khan et al. 2007; Donato et al. 2011). Mangroves are the most carbon rich forests in the tropics with a 1023 Mg carbon sink per hectare and act as an important carbon sink for the entire world.14 Mangrove forests constitute the highest share (54%) of the country’s biomass carbon stock, followed by hill (36%) and the Sal forests.

8. Various studies have indicated that the most important driver of forest degradation in Bangladesh is the extraction of fuel wood. This operation – which is mostly need-driven in the absence of any alternative income-generating-activity – is not just confined to fuel wood collection but extends to timber and other forest products. Presently, the forest-dependent livelihoods around the Sundarbans are mainly engaged in collection of fish, fuel wood, Golpata (Nypa sp.), crabs, honey and waxes. About 0.74 million people are directly engaged in livelihoods dependent on the Sundarbans (IPAC, 2010). Fuel wood collection becomes secondary occupation along with fishing or other activities. In addition, it was noticed that a significant number of people were engaged in crab collection. Since climate change will have a direct impact on the provisioning services (major forest products), forest-dependent livelihoods will be directly affected with respect to occupation, income level and seasonality. Monotypical occupation of a major share of the population will lead to overexploitation of one type of resources and decrease of individual income. Some people, who cannot compete in the local labor market, may migrate to urban centers.15

9. Degradation and loss of mangroves substantially reduces the ability to mitigate and adapt to the climate change. Their degradation also releases large amounts of 'blue carbon' stored in sediments to the atmosphere, a process that has been underestimated. On the other contrary, conserving natural mangrove forests and planting mangroves in newly accreted land has very positive net results. Chow (2017)16 identified that compared to unplanted areas, mangrove plantations have promoted accretion while mitigating erosion in coastal Bangladesh. Between 1973 and 1989, plantation areas experienced 37.2 times more accretion than erosion, compared to only 1.6 times in non-planted areas. Therefore, since 1960s, the Bangladesh Forest Department (BFD) has implemented programs of coastal afforestation by planting mangroves on coastal embankments, newly accreted coastal char lands and offshore islands, along the 710 km of coastline. To date, man-made mangrove forests cover more than 170 000 ha of embankments, chars and islands and represent a unique greenbelt along the coastline.17 Afforestation of foreshore and of tidal areas outside embankments proved to be a cost-effective method to dissipate wave energy and reduce embankment flooding during storm surges. For example, Cyclone Sidr in 2007 and Cyclone Aila in 2009 caused less damage to property and fewer life losses in Chokoria and

10 Upazila is an administrative regionin Bangladesh. They function as sub-units of districts. 11 Technical Study for Mapping of Potential Greenbelt Zone in the Coasta Region of Bangladesh under CRPARP project, Bangladesh Forest Department, December 2016 12 Forest Department 2010.Integrated Resources Management Plans for the Sundarbans (2010-2020), Vol. 1, Forest Department (FD), Ministry of Environment and Forest, Government of Bangladesh, Dhaka. 13 Dhaka Tribune. 2017. Tapping into the potential of the Sundarbans. Retrived from: https://www.dhakatribune.com/opinion/2017/12/08/tapping-potential-sundarbans 14 Van der Werf, G. R. et al. CO2 emissions from forest loss. Nature Geosci, 2, 737-738 (2009) 15 Uddin, Md & Shah, Mohammad Aminur Rahman & Khanom, Shahida & Nesha, Mst Karimon. (2014). Climate change impacts on the Sundarbans mangrove ecosystem services and dependent livelihoods in Bangladesh. Asian Journal of Conservation Biology. 2. 152-156. 16 Chow, J. (2017). Mangrove management for climate change adaptation and sustainable development in coastal zones, Journal of Sustainable Forestry, DOI:10.1080/10549811.2017.1339615 17 The species planted under the afforestation programs include Sundri (Heritieraformes), Gewa (Excoecariaagallocha), Keora (Sonneratiaapetala) and Passur (Xylocarpus mekongensis).

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surrounding areas compared to the devastating results of the cyclone in 1991. This was due to afforestation on the foreshore of embankments, which substantially broke the storm surge velocity.18The major challenge of afforestation and reforestation is in ensuring proper management and monitoring of existing forest resources. The improvement of forest resources management requires sector reforms such as revision to forestry sector plan, establishment of forestry inventory and monitoring, ensuring local communities’ participation and institutional strengthening for better planning and management.

10. The BFD, under the Ministry of Environment and Forests (MoEF), has undertaken an initiative to enhance its afforestation program along the entire coastal zone of the country to reduce risks from climate change induced coastal hazards. In this context Bangladesh has developed a Forest Investment Plan (FIP) in 2017 to promote sustainable forests and livelihoods for carbon sequestration, resilience to climate change and biodiversity conservation and improved livelihoods. The BFD is also the lead Implementing Partner for the UN-REDD National Programme in which Bangladesh has been implementing its REDD+ Readiness Roadmap (2015-2018). One of the recommended actions of the REDD+ Programme was to restore and sustainably manage degraded and other marginal areas, including coastal areas and wetlands, under climate resilient, participatory afforestation, reforestation, rehabilitation and ecological restoration processes to increase carbon sequestration consistent with the production and distribution of co-benefits that contribute to meeting local community requirements. To achieve this a Technical Study for Mapping of potential Greenbelt Zone in the Coastal Regions of Bangladesh was done in 2017 by CEGIS. A contiguous greenbelt has been proposed by this study that will extend from the eastern boundary of the Sunderbans to the southwest tip of Teknaf in 37 upazilas of 9 coastal districts. The study delineated the proposed greenbelt with varying width (from a minimum of 200 m to a maximum of 1000 m) covering a total of 126,748 hectares of land within the study area. After the study BFD and Arranayk Foundation (AF) jointly implemented the USD 35 million “Climate Resilient Participatory Afforestation and Reforestation Project (CRPARP)” in 64 Upazilas of 09 coastal districts (2012-2016) to reduce forest degradation and increase forest coverage through participatory planning/monitoring and to contribute in building the long-term climate resilience of selected communities in coastal and hilly areas.

11. Under the CRPARP, 17,500 ha. of lock plantation and 2,000 km of strip plantation have been established as new afforestation and reforestation areas at nine coastal districts through participatory approaches. To manage this plantation, 76 Forest Camp Offices have been constructed in 10 forest divisions. Besides, 6,000 extreme poor and vulnerable households from 200 villages of the project districts have received training on Alternative Income Generating Activities (AIGA) through the project. At least 889 Government officials and 17000 project beneficiaries have been trained on forest resource planning and management as well as on other capacity building activities. Another project titled Sustainable Forest and Livelihood (SUFAL) was undertaken by Bangladesh government and the World Bank which plans to sequester about 33 million tons of Carbon in 40 years. This project targets 29 districts of the country for implementation. The CRPARP and SUFAL project targets create a greenbelt along the suggested areas by the CEGIS study. These two projects have covered 36,219 ha area along the coastal greenbelt. However, to ensure resilience and sustainability of the coastal zone it is essential that there is a continuous greenbelt along the coast. To ensure this the proposed project targets the remaining 20,000 ha areas of the coastal zone for establishing the greenbelt.

12. This Project aims to reduce deforestation and forest degradation and enhance tree cover to conserve biodiversity and enhance ecosystem services, including coast protection and carbon sequestration. The project fits into a government plan to develop coastal belts of trees, since it was observed from previous projects that the presence of a belt of trees along the coast acts as a barrier against the onslaught of storms, which saves lives and properties. In addition, the local communities will be involved in a collaborative management program where they will have some ownership through share of the forest products, together with provisions for alternative income- generating activities outside forest will be included in the project.

13. The project will be in close alignment with the 7th Five-Year Plan (2016-2020), National Forest Policy 2016, Forestry Sector Master Plan (2017-2036), Forest Act 1927 (Amended in 2000) and Social Forestry Rules, 2004 (amended in 2010 and 2011). In addition, the project will be in close alignment of the relevant GoB climate policies and plans e.g. Bangladesh Climate change Strategy Action Plan (BCCSAP 2009), Nationally Determined Contributions (NDC), National Adaptation Program of Action (NAPA), Country Investment Plan (CIP) and Bangladesh Delta Plan). This project aims to address climate resilient coastal forests, climate resilient conservation-linked livelihoods; and climate resilient forestry livelihood support programs which are in close alignment with the priority sectors mentioned these national policies and frameworks.

14. Based on the lessons learnt from the CRPARP and SUFAL project, this project concept note identifies a 5-year follow-on project for the country’s coastal areas by integrating restoration of existing plantations as shelterbelts, raising new plantations, expanding protected areas, and private tree growing in gainful partnerships with coastal communities. Climate-resilience enhancing programs which would – in addition to sound plantation forestry – comprise of developing and implementing conservation-linked value chains focusing on land-based, market-linked livelihood options and skill

18 Cyclone Sidr in Bangladesh: Damage, Loss and Needs Assessment for Disaster Recovery and Reconstruction, Government of the People’s Republic of Bangladesh 2008.

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development that will be implemented in gainful partnerships of the landscape community. Furthermore, best practices from the lesson learned are captured through integrated zone management and planning along with knowledge-sharing, information management and applied research for coastal resilience and emissions reduction in the proposed project. The Forest Department (implementing partner of this project) believes that a holistic approach is needed, one that extends from innovation, promising practice, lessons learned, good practice, best practice, through to policy principles, to facilitate the process of empowering communities and local governments to drive social development to create a coastal green belt to prevent coastal erosion and reduce other increased hazards occurring due to climate change.

15. The proposed project through implementing three key components (described in B2) will not only contribute to the country’s coastal green belt project to strengthen resilience against climate change but also in the process enhance country’s carbon capture and storage capacity through mangrove afforestation. Hence the project is considered to be a cross-cutting project with greater potential to contribute to global carbon sink.

B.2. Project/programme description (max. 3 pages)

16. Coastal plantation ecosystems in Bangladesh provide socio-economic and ecological services in terms of life supporting, provisioning and regulating functions. They have also proven to be an efficient mechanism to protect coastal communities against several climate change impacts, such as rise in sea level, and increased intensity of cyclones, storms and tidal surges. Therefore, the Government of Bangladesh has embarked in a long-term strategy to develop a Coastal Green Belt. This concept document proposes a five-year Climate Resilient Coastal Forestry Project (CRCFP), to be implemented by Bangladesh Forest Department (BFD), which will draw from lessons of the CRPARP and contribute towards the planned Coastal Green Belt.

17. The total area of concern for the 37 upazilas is 15,259 Sq Km. The CEGIS study delineated the proposed greenbelt with varying width from a minimum of 200 m to a maximum of 1000 m, covering a total of 126,748 hectares of land within the study area. The area comprises of 66,752 ha. of khas 19 land, and 60,101 ha., either of private ownership or khas land leased by private owners.

Table 1 Selected Upazilas for Porposed Green Belt

Figure 1 Proposed Project Area

18. The Bangladesh Forest Department is acting on establishing the greenbelt within 66,752 ha. of khas land (without land acquisition) with mangrove and non-mangrove plantation. Within this 66,752 ha. area, the BFD has already taken the initiative to establish a greenbelt for 25,000 ha. and 11,219 ha. through the GOB and the International Development Association (IDA) fund respectively. The target plantation area of the GCF project is 20,000 ha. from the remaining 30,533 ha (66,752-(25,000+11,219) within the coastal greenbelt area. There will be remaining 10,533 ha land which will be kept as a buffer zone by the government so that they can use that land for extension of the CRPARP

Name of the District

Name of the Upazila

Barguna Amtali, BargunaSadar, Patharghata.

Bhola BholaSadar, Burhanuddin, Char Fasson, Daulathkhan, Lalmohan, Manpura, Tazumuddin.

Chittagong Anwara, Banshkhali, Chittagong Port, Halishahar, Mirsharai, Pahartali, Patenga, Sandwip, Sitakunda.

Cox's Bazar Chakaria, Cox's bazaar sadar, Kutubdia, Maheshkhali, Pekua, Ramu, Teknaf, Ukhia.

Feni Sonagazi.

Lashmipur Kamalnagar, Ramgati.

Noakhali Companiganj, Hatiya, Subarnachar.

Patuakhali Dashmina ,Galachipa, Kala Para.

Priojpur Mathbaria

19 Khas land means government owned fallow land, where nobody has property rights. It is land which is deemed to be owned by government and available for allocation according to government priorities.

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and SUFAL project.

19. The main objective of this project is to provide for and implement climate change mitigation and adaptation options and opportunities through climate-resilient coastal forest ecosystems and communities. Climate-resilient field programs for achieving these objectives are categorized in the following three components:

1. Reduced emissions and increased resilience of ecosystems and communities through forestry 2. Integrated zone management planning for emissions reduction and coastal resilience; and 3. Knowledge sharing, information management and applied research for coastal resilience and emissions

reduction

Component 1 Reduced emissions and increased resilience of ecosystems and communities through forestry 20. The objective of this component is to increase resilience of the coastal forest areas through forestry activities with

mitigation and adaptation benefits. Climate-resilient alternative livelihood options will be introduced in the project area to reduce dependency on forest products. Further, this component is going to address capacity building for sustainable and improved coastal ecosystem management. Participatory forestry and co-management approaches will be established in degraded forestlands, as well as in marginal, fallow and newly accreted land in coastal areas. An integrated landscape approach for coastal climate forestry is proposed to achieve the following outputs:

Output 1.1 Forestry activities carried out towards mitigation and adaptation benefits 21. The main expected output is increased forest cover through afforestation and reforestation in the target areas. Mangrove

can regenerate naturally if the normal tide hydrology and the supply of seeds from adjacent stands are not disturbed. To keep the natural rehabilitation processes undisturbed, all terrestrial activities in the project area are restricted and monitored. A full environmental assessment will be made to select the proper site for mangrove restoration.

Activity 1.1.1 Afforestation of mangrove and associated species in newly accreted land. Plantation of Koera and Baen in 20,000 ha and Golpata plantation along 400 km. Along with the mangrove species, plantation of non-mangrove Jhao in 100 ha. area and strip plantation along 1000 km. Activity 1.1.2 Reforestation and enrichment of mangrove and associated species in deforested areas. Plantation of non-mangrove species in 100 ha., mound plantation in 100 ha., and mangrove enrichment in 300 ha. In addition, nursing of 15,000,000 seedling for free distribution, 500,000 seedlings for institutional plantation, and 13,920,000 seedling for tree outside forests (ToF). Activity 1.1.3 Conservation and management of 4 preserved/protected areas. There are 11 protected areas that fall under that coastal greenbelt which area - Char Kukri-Mukri WS, Sundarban (East) WS, Sundarban (West) WS, Sundarban (South) WS, Nijhum Dweep NP, Kuakata NP, Tengragiri WS, Sonarchar WS, Dudhmukhi, Chandpai WS, Dhangmari WS. After the feasibility study the project area will be finalized, and 4 protected areas will be selected from the 11 protected areas which will fall under the project area. Conservation and management of the protected areas will ensure that local people do not over-exploit forest resources and the plantation activities can become sustainable. Output 1.2 Climate-resilient alternative livelihoods adopted by communities in target areas 22. The objective is to diversify livelihood opportunities, increase income and reduce over-exploitation of forest products while

enhancing the communities’ coping capabilities for climate resilience. Activities will demonstrate alternative improved livelihood options in the selected communities that not only conserve the newly planted areas but also help reduce the dependency on forest resources. Communities will develop a more positive relationship towards conservation and in turn will receive more benefits from forests in their areas.

Activity 1.2.1 Arrangement of 40 awareness-raising workshops to target communities on addressing climate change through coastal ecosystems and their services. Activity 1.2.2 Participatory identification of environmentally-friendly, economically viable, socially acceptable, climate-resilient alternative livelihoods per target area. Provide support for alternative income-generating activities to at least 20,000 people in the selected communities. Sample livelihood systems could be: family orchards, crab farming, beekeeping, shrimp culture, trees outside forest (ToF), nurseries, ecotourism, improved cook stoves, pickles, plant Nypa fruticans, sustainable fuel, seed banks, seed money, among others. Activity 1.2.3 Establishment of a financial mechanism to support the implementation of climate-resilient alternative livelihoods (e.g. micro financing) for 12,000 people. Activity 1.2.4 Capacity-building of communities and associations for the implementation of climate-resilient, alternative livelihood systems and ecosystem management through organizing training/awareness- raising/sensitization workshops for at least 20000 people. Activity 1.2.5 Support on value chain improvement and access to market of sustainable coastal products. Activity 1.2.6 Establishment of a “local” Payment for Ecosystem Services program for the selected 4 protected

areas.

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Output 1.3 Increased capacities for coastal ecosystem management in staff of Forest Department, other relevant ministries, local government and local communities 23. The aim is to develop capacity in staff of BFD, other relevant ministries, local representatives and communities on

management and monitoring of forest resources to enhance the sustainability of climate resilient forests. Technical interventions will be coordinated with other ministries and agencies in this regard.

Activity 1.3.1 Arrangement of 10 training of trainers’ events on coastal ecosystem management towards climate resilience for a variety of stakeholders. Activity 1.3.2 Training of 500 staff from the Forest Department and other relevant ministries on ecosystem management towards climate resilience and emissions reduction. Activity 1.3.3 Training of 800 local government representatives in policy, zone management and monitoring for the maintenance of interventions. Activity 1.3.4 Training of at least 8000 people from local communities on ecosystem management towards climate resilience and emissions reduction. Component 2 Integrated zone management planning for emissions reduction and coastal resilience 24. The objective of this component is to support the mitigation and adaptation interventions through integrated zone

management, and improved coordination towards policy and regulatory development. Different zones will be identified based on their characteristics and activities and management plans will be developed for each zone through participatory processes. In addition, coordination between local guidelines and national policies and regulations will be enhanced by involving both Forest Department, other relevant ministries and local communities.

Output 2.1 Zone Management Framework established for long-term sustainability of interventions leading to emissions reduction and climate resilience in coastal ecosystems 25. This output will establish the management zones to reduce emissions and enhance climate resilience of coastal

ecosystems through a participatory management framework.

Activity 2.1.1 Delimitations of management zones based on micro-climate, salinity gradients, soil accretion rates, edaphic conditions and economic activities. Activity 2.1.2 Development of participatory action plans for each management zone. Activity 2.1.3 Implementation of climate-resilient forest management with community involvement. Activity 2.1.4 Joint (Forest Department and community) surveillance of management zones, project interventions and protected areas. Output 2.2 Improved coordination towards policy and regulatory development for coastal climate resilience and emissions reduction 26. This output seeks improved coordination between local and national regulatory authorities and the development of

guidelines for climate-resilient coastal forestry and emissions reduction from the sustainable use of forests. Activity 2.2.1 Facilitation of interactions between local authorities and communities for local climate change action plans and policy guidelines. Activity 2.2.2 Facilitation of the incorporation of local guidelines into national policies and regulations. Activity 2.2.3 Facilitation of inter-ministry and inter-government coordination towards coastal ecosystem resilience. Activity 2.2.4 Support in the development of an action plan and financial strategy towards long-term Green belt conservation and maintenance. Component 3 Knowledge sharing, information management and applied research for coastal resilience and emissions reduction 27. The objective of this component is to support forestry and management activities through the development of

communication materials and information sharing, while ensuring that the expected project results are efficiently and effectively monitored. Better knowledge-sharing and information management will help to develop a platform to increase awareness and capacity a greater number of people regarding the adaptation and mitigation interventions for climate resilient coastal forestry. In addition, monitoring and assessment of activities will ensure the long-term sustainability of project results and outcomes.

Output 3.1: Information management and knowledge-sharing platforms developed. 28. This output aims at developing all the required communication and training materials, while providing opportunities to

relevant stakeholders to share their experiences, learn from one another and expand knowledge on forest conservation, common resource management, climate risk mitigation and adaptation to other areas of interest.

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Activity 3.1.1 Development of project website as well as training, communications and awareness-raising materials. Activity 3.1.2 Identification of existing platforms for information management and knowledge sharing. Activity 3.1.3 Linkage to identified platforms to share information with local communities on climate action and ecosystem support services. Activity 3.1.4 Organization of fieldtrips, workshops and site visits to share knowledge between local populations of project target sites. Output 3.2: Monitoring and Assessment framework established and operational. 29. The sustainability of project activities will be ensured through the development and implementation of an effective and

efficient monitoring and assessment framework.

Activity 3.2.1 Review and update of the assessment tool developed by the CRPRP project. Activity 3.2.2 Training of local communities and project staff on the use of the assessment tool. Activity 3.2.3 Assessment of project progress based on a variety of tools (including CRPRP monitoring tools, drones, others). Activity 3.2.4 Integration of monitoring and assessment data to evaluate project results for adaptive management of activities (e.g. output 2.1). Output 3.3: Applied research and innovation and scientific communications established Promoting applied research and innovation will help to gather more information on coastal forestry and ecosystem. Also, improved scientific communications will develop a knowledge sharing platform which will further help for future interventions. Activity 3.3.1 Allocate small grant of 0.63 million for research and future development of seaweed cultivation all over the coastal area.. If seaweeds can be cultivated successfully it will act as an alternative income generating source for the coastal community and also play an important role to protect coastal marine ecosystem. Activity 3.3.2 Arrangement for Diploma, certificate course, conference and workshops for capacity development on sustainable coastal forestry, coastal forestry ecosystem, carbon sequestration and carbon cycle in coastal forests, coastal forestry management, etc. Activity 3.3.3 Provide opportunity for applied research and innovation on coastal zone and greenbelt and publish journal articles based on the research. More emphasis will be given on involving local communities in applied research which will enhance their knowledge as well as strengthen the project interventions. Moreover, applied research will help to establish patterns and baseline data for future interventions.

30. The proposed activities are fully aligned with the national policies and legal framework. Climate resilient affoestration and reforestation was prioritized in 7th Five Year Plan, Forest Management Plan (FMP), Country Investment Plan (CIP), National Conservation Strategy (NCS), Intended Nationally Determined Contributions (INDC), and Bangladesh Climate Change Strategic Action Plan (BCCSAP). These frameworks also focused on Sundarbans alternative livelihoods and community involvement. Protection of Sundarbans and coastal afforestation was specifically highlighted in the 7th Five Year Plan, CIP, NCS, INDC, and BCCSAP. Strengthening forest development was considered in 7th Five Year Plan, FMP and NCS. Forest restoration and improving coastal afforestation by Carbon Credit and REDD Mechanism was specifically mentioned in 7th Five Year Plan, FMP, and BCCSAP. Strengthening community participation and co-management of alternative income-generating activities were a prime concern of 7th Five Year Plan, and FMP.

Theory of Change: 31. Climate change is threatening coastal communities and ecosystems because of increased intensity of storms, sea level

rise and storm surges which will result in increased flooding and loss of livelihoods for millions of people. Mangrove forest ecosystems provide coastal protection, sequester carbon and are the main source of livelihoods for coastal communities but they are being threatened by both climate change and unsustainable management of resources. The biggest challenge in the forestry sector in Bangladesh is to reduce forest degradation and deforestation while meeting the growing biomass demands of the country. On top of rising climate change impacts on the coastal belt mangrove forest degradation and deforestation is catalyzed from the overexploitation of forests and conversion of forests to other land uses, such as agriculture, resulting into increasing fragmented forest ecosystems. Deforestation, degradation and land use change result in increased CO2 emissions and deteriorated ecosystems with decreased capacity to provide vital services. As a result, the livelihood potential of forest- dependent communities decreases. In a broader sense, based on the predicted climate threats, such as increase in storm surges, flooding, intensity of cyclones, etc. the vulnerability of the forest-dependent communities to climate change increases if forestry system is deteriorated. Lack of monitoring and implementation of policies, lack of knowledge and lack of awareness are barriers that support the vicious cycle of ecosystem degradation. In this backdrop it is essential to take measures to enhance the degree of protection for the coastal communities, infrastructure, and ecosystem along Bangladesh coastline for current and projected future hazard scenarios.

32. This project aims to strengthen the climate resilience of coastal communities through forestry activities that have mitigation and adaptation benefits such as enhancing carbon sequestration and improving ecosystem services that result in

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increased coastal protection and improved livelihood opportunities. These core activities are supported by the establishment of alternative income-generating activities, development of a zone management framework, increased intergovernmental coordination and knowledge-sharing and information management. While ‘hard’ measures, such as embankments, that provide effective protection are established and/or upgraded, it is also necessary to explore the value of ‘soft’ measures, such as the establishment of a greenbelt. This bio-shield of planted trees has been proven effective in attenuating the energy and height of storm surge waves, velocity of cyclonic winds and reducing erosion by speeding up accretion. Placed between ‘hard measures’ like embankments and the open sea, greenbelts can help in reducing the impact of the storm surge on the embankment thereby increasing their lifespan and reducing the cost of maintenance and augmentation. Additionally, if appropriate plant species are chosen for the greenbelt they integrate easily with the environment and help in sustaining the ecosystem. Greenbelt trees also help in Carbon sequestration and can be a source of timber, firewood and fruits for the local population when extracted in controlled quantity. To ensure sustainability of the greenbelt, “trees outside forests” activities will be included in the project to meet the demand for fuel wood and other wood dependant activities.

33. The project will also address increased CO2 emission from deforestation and degradation by restoring degraded and deforested areas and expanding the area under different forests, leading to conservation of biodiversity and ultimately contributing to increase in carbon stocks in forests synergistically. In addition to this, the project will reduce pressure of the growing demand for fuel wood, timber and industrial wood drivers of forest degradation and deforestation through climate resilient alternative livelihood options. Involving in alternative livelihoods will reduce pressure on forest products and improved cook stoves and sustainable fuel will reduce demand for firewood.

34. This project will also improve capacity of forest department and private sectors at local level to improve tree cover in all the unions/ upazila and establish a mechanism of sustainable management of the vegetative cover of the households for enhanced ecosystem services at local level. In addition to this, the project will promote integrated zone management and knowledge sharing activities to sustain coastal resilience and emission reduction. Flow diagram of theory of change in provided in Annex 1.

Accredited Entity: 35. The accredited entity for the project will be Infrastructure Development Company Limited (IDCOL) which is a non-bank

financial institution (NBFI). Since its inception, IDCOL has played a major role in bridging the financing gap for developing medium to large-scale infrastructure and renewable energy projects in Bangladesh. IDCOL's target stakeholders include the government, private sector, NGOs, multilateral and bilateral institutions, academics and the people of Bangladesh at large. IDCOL has extensive experience to support mitigation and adaptation approaches. In addition, IDCOL provides support for feasibility analysis, training and capacity building as well as for promotion and awareness-raising. The organization has the expertise and fiduciary capacity to manage the requested loan and provide all the necessary supports to undertake the planned activities.

Implementation Arrangements: 36. At the top, a Project Steering Committee (PSC) will be established. In the

second level, one Project Management Unit (PMU) will be established at Dhaka. At the third level, Project Implementation Units (PIU) will be set up for each of the identified sites. The Executing Agency will hire consultancy services as Project Team through a firm or Organization or the project team will be directly recruited by the BFD with adequate staff support to ensure the smooth implementation of the project. Activities will be implemented by engaging local/national NGO/NGOs particularly for the livelihood component.

37. The project Steering Committee (PSC) will be established to provide overall coordination to the project and to deal with issues requiring inter-ministerial coordination. The steering committee will be chaired by the Secretary, Ministry of Environment and Forests (MoEF). The project steering committee will include representation from all concerned ministries and agencies. Also included are the Economic Relations Division (ERD), Finance Division, IMED, Planning Commission, Ministry of Fisheries and Livestock, Ministry of Disaster Management and Relief, Ministry of Women and Children Affairs and a representative of IDCOL. The Team Leader of the Project Team (PT) will also participate in the project steering committee as an observer. The Project Director (PD)/concerned desk officer of the Department of Forest (DoF) will work as member secretary of the PSC. The PSC will meet at least twice per year. The Executing Agency for the project will be the Bangladesh Forest Department (BFD).

38. IDCOL as a national Direct Access Entity of GCF, will channel the GCF senior loan to the Ministry of Finance (MoF), who

GCF

MoEF

IDCOL

ERD

BFD

PSC

PMU

PIU

CSOs

MFIs

NGOs

Figure 2: Institutional Arrangement

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is responsible for gatekeeping the flow of external resources in Bangladesh. The MoF will be the recipient of the GCF senior loan and will be the key Executing Entity in term of fund monitoring and repayment. The MoF will then enter into a subsidiary agreement with the Implementing Partner, which is the Forest Department operating under the Ministry of Environment Forest and Climate Change.

39. The Financial & Operational Risk Assessment and Switching Values analysis of projects is based on uncertain future events and incomplete data. Also, certain risks can inherent in project planning and implementation.

Table 2 Key Financial and Operational Risks and Mitigation Strategy SI

No. Risk Description Type Level Mitigation Strategy

1 Resistance from stakeholders in adopting the proposed measures

Operational Low Training will be provided to community members, leaders and local authorities to raise awareness regarding key issues related to climate change mitigation and adaptation for the target locations. Consultation meetings and dialogue sessions will be organized between stakeholders to facilitate the incorporation of proposed interventions within the target area.(s

2 There could be delays in executing funding at the regional level.

Financial Medium Project activities have been designed and paced to ensure a reasonable chance of completion after the timeframe of the project. IDCOL will provide permanent support for the mobilization of funds, contracting, monitoring, and financial reporting.

3 Uncertainty regarding the willingness of the local political leaders and will of the people to accept the proposed adaptation measures.

Political Low It can be mentioned that, the possible political instability is not in control of the project; however, the country has experienced a rather long period free of political unrest. In the project preparation phase, extensive consultation sessions have been conducted with government officials, including high level officials of the ministries at Dhaka, confirming their original commitment for the successful implementation of the project. Moreover, IDCOL will contribute greatly to ensure continued commitment from and engagement of government agencies.

4 The lack of practical and technical competence of char population and stakeholders limits scope for large scale engagement of communities.

Institutional Medium This project is focused upon a community-based approach which in-turn requires a participatory approach. Hence, local groups within the community will be supported by local adaptation measures in a method that is convenient to them so as to enhance their capability

B.3. Expected project results aligned with the GCF investment criteria (max. 3 pages) Impact potential: 40. The project aims to sequestrate 2.64 Mt CO2eq per year and 79.16 Mt CO2 eq throughout the estimated project lifespan

(30 y). Also, the coastal greenbelt will protect coastal communities from cyclones and storm surges. The alternative livelihood options will benefit the local communities and help them to improve their socio-economic conditions as well as conserving the forestry program. The project will impact almost 9,925,881 people living in the coastal zones directly or indirectly which is 6.89% of the total population of the country. Also, many government officials and community members will be trained and their capacity, knowledge, and awareness will be raised through this project.

41. Detail calculation of carbon sequestration is given below

carbon calculation.xlsx

Paradigm shift: 42. Development and management of forestry sector is a concern for the Government of Bangladesh. But lack of awareness

and knowledge among the stakeholders, insufficient manpower of Bangladesh Forest Department (BFD) and lack of capacity among the BFD staff acts as a barrier for undertaking a modern forest restoration and management Program. As a result, degradation of forests continues through over exploitation of the forest resources. The proposed project approaches for mitigation solutions through mangrove and non-mangrove plantation along the coastal green belt and adaptation of alternative livelihood opportunities for forest dependent coastal communities to decrease their dependency on forests. The coastal greenbelt will act as a barrier for cyclones and storm surges that will protect the communities living in the coastal areas and activity 2.2.4 will ensure sustainability of the coastal greenbelt through long term financing and planning. The project will also increase the capacity, knowledge and awareness of the local community, BFD staff and other relevant stakeholders, and promote new approaches for sustainable forest management. The sustainability of the

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project will set an example for climate resilient forestry interventions and encourage to uptake further steps for project like this. The project activities are interlinked with one another to to support directly or indirectly to ensure sustainability. The adaptation approaches will act as supporting components for the mitigation activities. For example, alternative livelihood activities and improved economic activities will help to sustain the forestry interventions by reducing dependency and exploitation of forests.

43. Appropriate plant species are chosen for the greenbelt which will integrate easily with the environment and help in sustaining the ecosystem. Greenbelt trees will also help in Carbon sequestration and can be a source of timber, firewood and fruits for the local population when extracted in controlled quantity. Addition to this alternative livelihood options will be introduced for 20,000 people living in the selected coastal areas and through the supporting activities like knowledge sharing, capacity development, micro-financing and improved value chain the alternative livelihoods will become more sustainable. Involving private sector in the microfinance and ecological payment will further strengthen the sustainability of the project. Training and awareness raising workshops on climate resilient forest management for the rural communities and government staff will increase their capacity and help to protect the forest ecosystem. Community people having knowledge on the negative impacts of exploitation of forest resources on forestry ecosystem and their livelihood will become more aware and interested to protect the forest ecosystem. This will make them adapt the alternative livelihood options easily and manage the forest resources for their own interest. Furthermore, the assessment and monitoring activities will ensure proper implementation and management of the interventions and enhance their sustainability. All these interventions will help to transform the existing low climate resilient and vulnerable forestry ecosystem into a more climate resilient and sustainable forestry ecosystem capable of reducing carbon emission and ensuring sustainable economy for the forest dependent communities. Also, the project will transform the climate vulnerable poor coastal communities to climate resilient sustainable communities through the adaptation activities. The country has already taken two projects to establish coastal greenbelt but that is not continuous yet. Establishment of a continuous coastal greenbelt will reduce the vulnerability of climatic disasters and help to protect the coastal communities. This project targets to establish the continuous coastal greenbelt by filling up the gaps in the previous projects. By making the coastal greenbelt continuous and ensuring protection from climatic disasters, Bangladesh can become a role model worldwide even after being the 6th most climate vulnerable country in the world.

Sustainable development: 44. The project will contribute to sustainable development through other co-benefits summarized below:

Economic benefits 45. Promotion of homestead and institutional plantation and plantation outside forest, combined with the implementation of the

proposed management framework will provide sustainable source of timber, fuel wood and NTFPs to the local communities, reducing their dependence on the Forest. In this way Forest restoration will be ensured which will secure employment generation in collection and processing of forest products and increased income from employment in the sector. Improving value chains will ensure sustainability of the forest products and other income generating products. With appropriate institutional measures, access to forest products to communities and in particular, to women will be increased. Introducing microfinance, improved value chain and engagement of private sector will enhance economic activities in the project area.

Social Benefits 46. Communities will benefit from adoption of sustainable and climate resilient alternative livelihood options. Green belt along

the coast line will reduce injury and loss of life due to extreme climate disasters. The project will strengthen inclusive planning in target communes that ensure representation from vulnerable groups including those with disabilities, minority groups, youth and the elderly. Coastal women and poor and other marginalized sections of society who are vulnerable to climate change risks will be protected through increased resilience and empowerment. In addition, the project will enhance community engagement to protect natural heritage, particularly in the Sundarbans area.

Environmental Benefits 47. Forest restoration in degraded forest lands will lead to carbon sequestration in biomass and soils, in addition to co-benefits

such as biodiversity conservation, reclamation of forest degraded lands, soil fertility improvement and reduction in soil erosion. Under this project, carbon sequestration occurs synergistically with other environmental co-benefits and enhancement of ecosystem services.

Institutional benefits: 48. Strengthening of BFD and capacity development are critical for generating climate change mitigation benefits.

Development of partnership between forest department, NGOs and rural communities, along with improved management will contribute to capacity development in BFD staff and forest dependent rural communities. Output 2.2 will help to improve coordination between local and national regulatory authorities and the development of guidelines for climate resilient coastal forest.

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Country ownership: 49. According to the 7th Five-Year Plan (2016-2020), the country aims to increase forest cover to 15% by 2020, which is

consistent with the relevant targets of sustainable development goal (SDG), and the Environment Forestry and Climate Change Country Investment Plan (GoB 2017). Afforestation and reforestation in the coastal areas, islands and degraded areas, provide support to existing and new homestead and social forestry programmes and enhance carbon sequestration, as mentioned in the the Bangladesh Climate Change Strategy and Action Plan (BCCSAP) (GED 2015; MoEF 2009b). Forestry Master Plan (FMP 2016) recommends activities aimed at carbon sink conservation, carbon sink enhancement and supportive activities. In the NDC four mitigation strategies like continuation of coastal mangrove plantation, reforestation and afforestation in the reserved forests, plantation in the island areas of Bangladesh, and continuation of social and homestead forestry are included in the forestry sector targets. National Conservation Strategy (NCS) addresses Climate resilient afforestation/reforestation, and Social forestry. The Country Investment Plan (CIP) focuses on Sundarbans Alternative livelihoods, community involvement, and Coastal afforestation. The National Forest Policy (2016) emphasizes on creating massive carbon sinks for carbon sequestration by bringing more areas under tree cover, the higher efficiency of mangrove species in carbon fixing, and undertaking enhanced plantation programmes in coastal areas and offshore islands. The successful implementation of the project will positively impact on the implementation of many Sustainable Development Goals, especially the SDG 1, 11, 13, and 15. This project aims to address climate resilient coastal forests, climate resilient conservation-linked livelihoods; and climate resilient forestry livelihood support programs, which are in close alignment with the priority sectors mentioned in the national policies presented above. Also, development of forestry sector through mitigation and adaptation approaches are a major concern for Bangladesh. BFD have been developing coastal greenbelt since 1960-61 and the effort was intensified in the wake of a major cyclone in 1964. Through various programs and projects patches of greenbelt have been established, mainly composed of mangrove species Kewra (Sonneratia apetala) and Bain (Avicennia officinalis) covering around 192,000 hectares20 of coastline till 2013. For this reason, the government is willing to co-finance $20M with the GCF funding for successful implementation of the project.

Needs of recipient: 50. Coastal zones in Bangladesh are already vulnerable to cyclones and storm surges. It is evident from available climate

change models that cyclonic events will increase over the coming decades. This will significantly affect coastal communities. Economic condition of the people living in coastal areas surrounded by forests are poor and they are dependent on forest resources for their livelihood. Moreover, coastal forests act as a protective shield against climatic disasters like cyclone, storm surge, tidal flood, etc. However, coastal communities often degrade forests for livelihood purposes, either for collecting wood and timber or for agricultural purpose. Mangroves provide important ecosystem services for shoreline protection by stabilizing soil and preventing erosion. By mitigating the potential loss and damage caused by climate change-induced SLR and storm surges, the preservation, restoration, and afforestation of mangrove forests therefore have an important role to play in sustainable development here and in other tropical coastal zones.21 To sustain the plantation activities the project will introduce climate resilient alternative livelihood options for the forest dependent coastal people. This will decrease their dependency on forest as they will be engaged in other non-forest income generating activities. Improved value-chain in the project area, provision of microfinance, and payment for Ecosystem Services Program will increase access to assets and economic opportunities. Further, the coastal greenbelt will reduce vulnerability to severe cyclones, storm surge and soil erosion and protect the coastal communities.

Efficiency and effectiveness: 51. Forestry sector in Bangladesh has become a concern for the government as it has impact on both climate change

mitigation and adaptation. However, there is no proper budget allocation for the development of forestry sector in the country. This limits the opportunity of the Government to invest in the forestry sector. Through this project the GoB is requesting for a loan at a lower interest rate so that there is enough financing to continue development in forestry sector. Thus, accessing funding from GCF will create an opportunity for Bangladesh to invest in the forestry sector and create sustainable and climate resilient forestry system.

52. The project aims to create climate resilient sustainable coastal forest which will help in carbon sequestration, protect from climatic disasters and enhance ecosystem. To keep the trees of the forest safe from exploitation and degradation the project will also address adaptation options like alternative sustainable livelihood, capacity and knowledge building, and policy and regulations. All the activities together will ensure the long term effectiveness of the project.

53. Total amount requested in the project is USD $80 million and the project targets to reduce 79.16 Mt CO2 eq throughout the lifespan (30 years). The cost for each equivalent ton of CO2 reduced in the project will be USD $1.01. Furthermore for

20 Hassan, D. Z., (2014). Coastal afforestation in Bangladesh and its role, July 24, 2014. http://www.theguardianbd.com/coastal-afforestation-in-bangladesh-and-its-role/ (Last Accessed on December 21, 2016) 21 Jeffrey Chow (2017): Mangrove management for climate change adaptation and sustainable development in coastal zones, Journal of Sustainable Forestry, DOI: 10.1080/10549811.2017.1339615

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every dollar invested the project will ensure increased resilience of approximately 8 people (direct and indirect) against climate change.

B.4. Engagement among the NDA, AE, and/or other relevant stakeholders in the country (max ½ page)

54. The Economic Relations Division, which is the National Designated Authority (NDA) of GCF, teamed up with IDCOL to organize sensitization workshops for the relevant private sectors to let them know about the opportunities that GCF represents through its AE, that is, through IDCOL, in the country.

55. IDCOL is committed to help in ensuring economic development of the country and to improve the standard of living of the people through mitigation of GHG emissions, sustainable and environmental-friendly investments. Mangrove forests are an integral part of coastal ecosystem which act as a major carbon sequester, provide economic resource and reduce vulnerability of storm surges through coastal protection. Increased climate vulnerabilities and over exploitation of natural resources are degrading the mitigation potential of the mangroves and threatens the communities dependent on it. Afforestation increase carbon sink and increase ecosystem and community resilience. The Bangladesh Forest Department (BFD) will implement the project and IDCOL will be the accredited entity.

56. Therefore, IDCOL support forest department to designed this Climate resilient coastal forestry concept paper sourcing fund from GCF. From this stage IDCOL will work closely with the Bangladesh Forest Department and NDA and the proposal development team to develop the funding proposal as per the market reality.

C. Indicative Financing/Cost Information (max. 3 pages) C.1. Financing by components (max ½ page)

Component/Output Indicative cost (USD)

GCF financing Co-financing Amount (USD)

Financial Instrument

Amount (USD)

Financial Instrument

Name of Institutions

Com: 1# Reduced emissions and increased resilience of ecosystems and communities through forestry

72.47 57.42 Senior Loan

15.05 Grant GoB USD$ 1.05 million in kind &

USD $14.00 million

Com: 2 # Integrated zone management planning for emissions reduction and coastal resilience

2.29 1.79 Senior Loan

0.5 Grant GOB in cash

Com: 3 # . Knowledge sharing, information management and applied research for coastal resilience and emissions reduction

1.3 0.8 Senior Loan

0.5 Grant GoB in cash

Project Management (PM) 3.94 3.94 Grant GoB USD $ 3.94 in kind

Indicative total cost(USD) (GCF+GoB)

80.00 60.00 Senior Loan

20.00 Grant

C.2. Justification of GCF funding request (max.1 page)

57. The Bangladesh Forest Department is very familiar with the concept of greenbelt and the benefit it can provide in reducing the vulnerability of coastal communities. BFD has been developing coastal greenbelt since 1960-61 and the effort was intensified in the wake of a major cyclone in 1964. Through various programs and projects patches of greenbelt have been established, covering around 192,000 hectares22 of coastline till 2013. An additional 12,000 hectares of non-mangrove species have also been planted by BFD within these initiatives through ‘ditch and dike’ and ‘mound’ plantation techniques. However, they are not continuous in their physical extent and hence are not able to provide optimum protection. A contiguous greenbelt has been proposed by the CEGIS study that will extend from eastern boundary of the Sunderbans to the southwest tip of Teknaf in 37 upazilas of 9 coastal districts with varying width covering a total of 126,748 hectares of land. The area comprises of 66,752 ha. of khas land, and 60,101 ha., either of private ownership or khas land leased by private owners. Within 66,752 ha. area khas land, BFD already has taken initiative to establish greenbelt for 25,000 ha. and 11,219 ha. through the GOB and IDA fund respectively. From the remaining area, this project aims to plant on 20,000 ha. area within the coastal greenbelt. To ensure the sustainability and optimum protection it is essential to make the

22 Hassan, D. Z., (2014). Coastal afforestation in Bangladesh and its role, July 24, 2014. http://www.theguardianbd.com/coastal-afforestation-in-bangladesh-and-its-role/

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greenbelt continuous. There will be remaining 10,533 ha land which will be kept as a buffer zone by the government so that they can use that land for extension of the CRPARP and SUFAL project.

58. The project specifically aims to enhance the implementation of existing government plans, frameworks and programs, like BCCSAP, NAPA regarding (1) mitigation and low carbon development, (2) sustainable management practices, and (3) coastal protection. Being a developing country, the government of Bangladesh has limited resources to meet all the national priorities and challenges. There is no comprehensive funding opportunity for this type of climate resilient forestry development project in Bangladesh. There is a small portion of fund available for climate change mitigation and adaptation included in the government development budget which is not sufficient for addressing climate change adaptation and mitigation issues in a sustainable way. GoB has already taken a large loan for the SUFAL project from World Bank for coastal greenbelt development. However, the interest rate of World Bank is quite high and it is difficult for GoB to take further loan at such rate. Therefore, considering the increasing need of the coastal protection from the impacts of climate change GoB requires minimum concessionality of GCF to scale up coastal intervention quickly and efficiently, without constraining national budget.

59. Active engagement of private sector is critical and extremely necessary as public sector alone cannot deal with the scale of climate challenge in Bangladesh. But in terms of domestic private sector investment for this project, private sector is still interested in mitigation activities, such as renewable energy, solar and wind power. It does not flow into mitigation projects like, forestry development as they consider the project to be little profit incentive. The project will create opportunities for private sector involvement in the microfinance, value chain development and AIG activities. Success of the project will encourage private sector to get involve in similar types of initiatives.

C.3. Sustainability and replicability of the project (exit strategy) (max. 1 page)

60. Project outputs complement each other in a way that they ensure long term sustainability of interventions beyond the implementation period. Forestry activities will be established and maintained with community support for full appropriation of the proposed measures. The livelihood activities will enhance economic capacity of the communities and reduce their dependency on forests. Also, knowledge-sharing and awareness-raising activities will make people aware of the importance of forests both for their protection against climate risks and the maintenance of existing livelihoods. By offering income-generating alternatives, people will be adopted to other economic sources and do less damage to forests. Also, with the ToFs will meet the demand of fuel wood and other forest products which will reduce pressure on the mangrove plantations. With the value chain improvement activity sustainability of the livelihood component will be ensured as better market will be developed in the areas to sell goods. The project will also build capacity of local communities and staff of forest department and other relevant ministries on coastal ecosystem management which will ensure that these people can actively manage the newly planted areas and different management zones in an efficient way. An adequate monitoring and evaluation mechanism for the project will be established, as well as training provided to local staff and communities on its implementation. Moreover, the preparation and implementation of this project will be carried out in a participative and inclusive manner. For the purpose of effectively carrying out monitoring and evaluation activities several institutions and practices have developed in Bangladesh. From the government side these have emerged both at the central level as well as at the departments. Although both of these systems operate fairly independently in the country, institutional linkages are often set up and used. Besides, the Implementation Monitoring and Evaluation Division (IMED) IMED and monitoring cell of forest department is responsible for reviewing of performance. This project aims to fully engage local communities living in the areas where the project will be implemented. They will be involved through participatory planning and best practice in community engagement. The project aims to build upon and enhance existing government programmes in key areas including mangrove restoration and community based disaster risk management and assessment. Evidence-based best practices established by the GCF project will continue to inform subsequent phases of the programmes as well as enhance policy and planning, extending beyond the duration of the project. Developing an action plan and financial strategy through activity 2.2.4 for long term Green belt conservation and maintenance will ensure sustainability of the project and open a path for undertaking similar attempts. Through the project, coastal communities will be encouraged to see and use their limited natural resources in alternative and more sustainable ways. The project’s impact will also be felt beyond coastal communities and beyond national scale. The success of the project will open a path to take more initiatives of similar types of projects and encourage NGOs, and private organizations to get involved in such approaches.

61. The expected loan tenor from GCF to MoF will be for 30 years, including 10 years grace period and the repayment will done through GoB’s revenue budget, as the project’s revenue through livelihood activities under Component 1, which will be revolved within the project to ensure its sustainability.

D. Supporting documents submitted (OPTIONAL)

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Map indicating the location of the project/programme Diagram of the theory of change

☐Economic and financial model with key assumptions and potential stressed scenarios

☐ Pre-feasibility study

☐Evaluation report of previous project ☐Results of environmental and social risk screening

Self-awareness check boxes

Are you aware that the full Funding Proposal and Annexes will require these documents?Yes No ☐ • Feasibility Study • Environmental and social impact assessment or environmental and social management framework • Stakeholder consultations at national and project level implementation including with indigenous people if

relevant • Gender assessment and action plan • Operations and maintenance plan if relevant • Loan or grant operation manual as appropriate • Co-financing commitment letters Are you aware that a funding proposal from an accredited entity without a signed AMA will be reviewed but not sent to the Board for consideration? Yes No ☐

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Annex 1 Theory of Change: Figure 2 shows the interventions suggested to address the vulnerabilities identified in Figure 1. Each output in figure 2 is marked with its corresponding number in the logical framework (section B2) and these numbers were placed in figure 1 to show how each driver is addressed by one or more outputs.

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