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WORKINGPAPER
THEAMAZONFUND:RADICALSIMPLICITYANDBOLDAMBITION
INSIGHTSFORBUILDING
NATIONALINSTITUTIONS
FORLOWCARBONDEVELOPMENT
SimonZadek,MayaForstaterandFernandaPolacow
December2010
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1|TheAmazonFund:radicalsimplicityandboldambition
ThisWorkingPaperwaswritten bySimonZadek,MayaForstaterandFernandaPolacow,with
the support ofFundacin Avina. Itis afollowup toan earlierreportby SimonZadek, Maya
Forstater,FernandaPolacowandJooBoffinoentitledRadicalSimplicityinDesigningNational
ClimateInstitutions:LessonsfromtheAmazonFund(2009).1
IndevelopingthisWorkingPaperwehavedrawnondocumentsandinformationpublishedby
the Amazon Fundand on a series of interviews we conducted with stakeholders andexpert
commentators. Throughout the report quotes drawn from our interviews,as well as from a
series of expert meetings hosted by BNDES in 2009 as part to the Amazon Funds ongoing
development..2
Wearegratefultotheintervieweesfortheirinputsandinsights,theseincluded:TassoReszende
deAzevedoandThaisLinharesJuvenaloftheBrazilianMinistryofEnvironment;ClaudiaCosta
of BNDES, Adriana Ramos of FBOMS / ISA; Carlos Nobre of INPE, Virgilio Viana and Gabriel
RibenboimofAmazonasSustainableFoundation;CaioMagriofETHOS;BrendaBritoofIMAZON;
Mariano Cenamo of Institute for Conservation and Sustainable Development of Amazonas;
Paulo Moutinho of IPAM; Fabio Leite of ARPA Programa Areas Protegidas da Amaznia;
Claudio Flres a technical consultant forthe environment to Par State; LuisMenesesFilho,
REDDConsultanttoAcreStateandotherorganisations;EllenBeckerBruzelliusoftheNorwegian
Forest ClimateInitiative; Inge Nordang of the NorwegianMinistry of Foreign Affairs; Torkjell
LeiraoftheRainforestFoundation;AndreaPontualofFundacinAvina;NickGodfreyandDanielBradley of DFID; Charlie Parker of Global Canopy; Jessica Brown of ODI; Shruti Mehotra of
GlobalWitness;StephanSchwartzmanofEDF;andCharlotteStreckofClimateFocus.Wewould
alsoliketothankTaniaGobenaforthecommunicationssupport.
While each of these interviewees contributed their perspectives, the responsibility for the
analysisandrecommendationsandforanyerrorsrestswiththeauthors.
ThisWorkingPaperisbeingcirculatedfordiscussion,pleasesendcommentsto
[email protected](inEnglish)[email protected](inPortuguese).
ReleasedunderCreativeCommonsShareAlikeLicense.
DownloadtheWorkingPaperfromwww.zadek.net/amazonfund
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TheAmazonFund:radicalsimplicityandboldambition|2
CONTENTS
ExecutiveSummary.........................................................................................3
1.TheAmazonFund........................................................................................5 Anexperimentindevelopinganationalclimatechangefund......................................... 5Designchallengesandinitialsolutions............................................................................. 7TheAmazonFund'stheoryofchange .............................................................................. 92.Learningbydoing ......................................................................................12Earlyexperiences............................................................................................................ 12Challengesandgaps ....................................................................................................... 13Lessonslearnt................................................................................................................. 163.TheFuture.................................................................................................18 CantheAmazonFundmaketreesgrowonmoney?.................................................... 18
ScenariosforthefutureoftheAmazonFund ................................................................ 19Lessonsforothers .......................................................................................................... 22
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EXECUTIVESUMMARY
The Amazon Fund is a crucial early experiment in developing a national climate funding
mechanism.Itoffersanexampleforotherswhoareseekingtodevelopmechanismsthatshift
beyondtraditionalaidmodelstowardsdirectaccesstoclimatefinance.Suchinstitutionsreflectnationalprioritiesandaremorecosteffective,lessbureaucraticandmoreresponsivetolocal
needsandstakeholderconcerns.
TheAmazonFundsdesignisunique. Itsdesigndrewonthemodelandexperienceof private
philanthropic funds and independent conservation trust funds. However, it broke with
conventioninthreekeyways:
PerformanceBased Financing: the Amazon Fund provides simple intermediationbetween performancebased financing (per tonne of carbon emissions avoided) and
projectinvesting.
Restricted MultiStakeholder Governance: a multistakeholder committee involvingfederalandstateofficialsandcivilsocietyrepresentativeswasestablished.However,the
steeringcommitteedoesnotactastheboardoftheFund,givingsignificantautonomyin
practicetotheFundsmanagers.
LowCostLocalManagementbytheNationalDevelopmentBank:theFundismanagedbythenationaldevelopmentbankBNDES,withanagreementtotake3%ofdonationsto
covercosts.
CoretotheAmazonFundsdesignwasadecisiontostartfastandevolve. IftheAmazonFund
hadbeendevelopedthroughatraditionalapproach,theinkwouldnotyetbedryon thefinal
agreeddesign.InsteadtheAmazonFundbeganwithjustenoughstructuretogettheFundfrom
ideato realityandtobringtogethereachofthekeyactorsneededtogetitstarted.Together
they have built up competencies, hosted debates and started to address key gaps and
challenges.
TheAmazonFundstheoryofchangeiscriticaltounderstandinghowtheFundseekstomake
change,howitmakestreesgrowonmoney,whichistheultimatechallengeforanyReduction
inEmissionsfromDeforestationandForestDegradation(REDD)scheme:
Projectsand Implementation: scalingup theimplementationof effective projectsandapproaches, and providing funding to support the implementation of Brazils nationalstrategyforpreventingdeforestation.
Power andPolicies: helping to strengthen and reinforce the political and institutionalforceschampioningsustainabledevelopmentoftheAmazonregioninBrazil.
EconomicPressuresfindingandsupportingcatalyticapproachesthatenablelargescaleeconomictransformationtowardssustainabledevelopmentintheAmazon.
InitsfirstyeartheAmazonFundhasconcentratedonthefirstofthesedrivers.Theimmediate
pressureon theAmazonFund hasbeento setcriteria andrapidlystarttoselectprojectsand
disbursefunds, aswellas toensureanddemonstrate fiduciaryresponsibility.However,ithas
started to face a number of critical design and operational challenges in its governance and
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strategydevelopment,transparencyandmanagementcapacity.
IftheAmazonFundremainsfocusedonlyontheprojectsand implementationleveritwill
have limited impact. Brazils REDD strategy will certainly need to tackle the economic and
politicaldriversofdeforestation.ThequestioniswhethertheAmazonFundcanplayanactive
partinthis,asadriverofinnovation,asahubforlearningandstrategydevelopmentandasa
focalpointforpolicydebateanddevelopment.
CurrentlytheAmazonFundisstuckinthemiddlebetweensimplicityandambition. Weoffer
twopotentialdirectionsinwhichtheAmazonFundmightdevelop:
Simplicity:theAmazonFundremainsasimple,lowcostfundingmechanismwithinabroaderBrazilianREDDsystem.
Ambition: the Amazon Fund develops into a mature and increasingly autonomousinstitution at the heart of Brazils REDD strategy, that is proactive in fundraising and
investment,learningandinfluencingbroadersystems.
ThebestpathwaydependsonthebestbetsoftheAmazonFundstakeholdersthemselves.If
theAmazonFundstakeholdersseeitasthebestvehiclefordevelopingandinfluencingBrazils
strategicdirectionfortheAmazon,andinvesttheirtime,resourcesandefforts,theycouldmake
itso.Butiftheybelievethatthesedecisionsarebetterservedbyotherforumstheymaydecide
to keep the Amazon Fund as a streamlined and simple accounting mechanism, and cascade
moredetailedfundingdecisionstootherfunds,states,municipalitiesandcivilsocietyconsortia.
AkeystrengthoftheAmazonFundistheinvolvementofeconomic,politicalandcivilsociety
actors. Ultimately to achieve sustainability, climate funding must succeed in shifting the
economyto oneinwhichlowcarbon industriesaremorecompetitive,and thiswouldinvolvereal shifts for all of these actors. It is therefore important that the Amazon Fund and its
stakeholderscontinuetolearnanddeveloptheFundanditsgovernance,tomeetthechallenge
ithasbeenset.
TheAmazonFundsexperiencehighlights theneed todevelopnational climateinstitutions
thataretrulydevelopmentalandabletocatalyselowcarbondevelopment,notsimplyactas
accountantforclimatefinance.Suchfunds,includingtheAmazonFund,needtoconsiderhow
theywilladdressthethreetheoriesofchangeandwhethertheyhavetherightgovernance
and management to do this. Are they designed and incentivized to take entrepreneurial
decisions,andleverageprivateinvestmenttodrivevaluecreationforlowcarbondevelopment?Cantheycontributetopolicydevelopmentandimplementationinareaswheretherearehuge
vestedinterestsinthestatusquo?
TheAmazonFundsstartfastandevolvemodeloffersapotentapproachtobegintoanswer
these questions in practice. The success of the startfast and evolve model depends on
ensuringthattheinstitutioncreatedisabletolearnandadapt.Oneveryclearlessonfromthe
AmazonFundisthatongoinglearningcyclesofreview,reflectionanddesignevolutionshould
also bebuiltintothe processof institutionaldevelopmentof emergent national directaccess
institutions.
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1.THEAMAZONFUND
InDecember2008,BrazilianPresidentLuizIncioLuladaSilvaannouncedBrazilscommitment
to reduce Amazon deforestation80% below itshistoric baseline over the nextten years. To
supportthisgoal,BrazilcreatedtheAmazonFund,supportedbyaninitialpledgeofUS$1billionfromthegovernmentofNorway.TheAmazonFundsoughttoinvestthesefundsnotonlyinlaw
enforcementand theprotection offorest reserves butin thelowcarbondevelopmentof the
Amazonregion,andtousethemtodemonstrateeffectivenessandattractadditionalfunding.
ANEXPERIMENTINDEVELOPINGANATIONALCLIMATECHANGEFUND
Beyond the Amazon, the attention of those concerned with addressing climate change has
increasingly broadened from thenegotiationof theglobal climatefinance architecture tothe
development of the national direct access institutions needed to steward finances on theground.
3 These direct access institutions areneeded as thelink between theglobal financial
architecture andthe financingof nationalpoliciesand programs. Tosupportsystemicchange
towards low carbon development these institutions will need to deliver on several fronts:
fiduciary responsibility; social and environmental safeguards alignment to development
priorities; verifiable performance; cost effective management; responsiveness to local
stakeholders;andtheabilitytoinfluencethedriversofprivateinvestmenttowardslowcarbon
development.4
Designers of national climate funding institutions can learn from the experience of existing
mechanismsofdevelopmentaidsuchasbudgetsupport,challengefundsandtrustfunds,and
theprinciplesofeffectivedevelopmentaid;ownership,alignment,harmonization,managingfor
resultsandmutualaccountability.5Theywillalsoneedtobuildon60yearsoflearningonwhat
has and has not worked in traditional aid funding, and will need to be based on different
principlesofaccountabilityandmechanismsofoperation.6Alongsideotherinnovationssuchas
the National Implementing Entities accredited by the UNFCCC Adaptation Fund, the Amazon
Fundissignificantasanearlyworkingexperimentofsuchanationaldirectaccessfund.7
The Amazon Fund is unique, and in many ways uniquely Brazilian, as it was designed as a
practical demonstration of Brazils proposal for how forests should be included in the
international climate architecture, and drew on a particular set of national institutions.
However,itoffersusefulparallelsforothernationalclimatefundingentitiesthatarecurrently
being designed.All areseekingto shift beyond bilateral andmultilateral aidmodelstowards
directaccess institutions that reflect national priorities and are more cost effective, less
bureaucraticandmoreresponsivetolocalneedsandstakeholderconcerns.
The emerging institutional landscape of approaches to managing national climate funds
includes:
Existingconservation trust funds which areprivate, legallyindependent grantmakinginstitutions that provide sustainable financing for biodiversity conservation and often
financepartofthelongtermmanagementcostsofacountrysprotectedareasystem.
8
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These are likely to be drawn into receiving and managing climate funding linked to
forestryandlanduse.9
Newly setup multidonor climatechange funds such as the Bangladesh MultiDonorTrustFund,CongoBasinForestFundandCambodiaClimateChangeTrustFundsetup
with donor involvement in governance, and offshore management by international
agenciessuchastheUNDP,WorldBankandADB.
Nationalfundsandgovernmentimplementingentities suchasthoseappointedbytheAdaptation Fund Board. They are under sovereign control, but do not include multi
stakeholdercoordinationoroversight.
Exhibit 1 illustrates where the Amazon Fund has positioned itself on the spectrum between
government andbroader stakeholder governance, and between donor and recipient country
control. As Exhibit 1 highlights, it is an experiment seeking to develop and demonstrate an
institutionalmodelforclimatefundingthatisinthetargetzoneofstakeholderresponsiveness
andnationalcontrol.
Exhibit1. Fundingmechanismsandalignmenttostakeholders
TheexperienceoftheAmazonFundwillbeusefulforabroadsetofnationalclimatefinance
institutionsthat areseekingto moveintothetarget zone ofnationalcontrol andstakeholder
responsiveness.Forexample,conservationtrustfundswillneedtodevelopcarbonlinkedpay
forperformance systems if they seek to become climate finance mechanisms, offshore
managedmultidonor climatechangefundswillneedto developlocalgovernance inorderto
transition into independent national mechanisms over time, while national funds and
government implementing entities are already coming under calls to review and strengthen
proceduresforcommunityandcivilsocietyengagement.10
LessonsfromtheAmazonFundwillofcoursebeparticularlyrelevanttotheinstitutionsthatwill
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manage Brazils eventual programme forReducing Emissions from Deforestation andForest
Degradation(REDD)scheme.TheAmazonFundshouldnotbeviewedasBrazilsnationalREDD
scheme but as a first incarnation of it. The Brazilian Ministry of Environment is currently
coordinatingapoliticalprocesstodiscussanddraftaninitialproposaltoimplementafullREDD
systeminBrazil.Thisislookingattheinstitutionalframework,theprinciplesforbenefitsharing,
safeguardsandthefinancialmechanismsforraisingfunds.BrazilsfinalREDDschemewillneed
to address the need for financial support for forest conservation beyond the ten year
deforestationreductionperiodcoveredbytheAmazonFund.It willalsohavetoreconcilethe
desireofthefederalgovernmentforanationalschemeoutsideofthecarbonmarketsandthe
advocacyanddevelopmentofstateschemesthatgeneratecarboncredits.And,itshouldalso
needtolinkintoanyfinallyagreedUNFCCCframework.11
DESIGNCHALLENGESANDINITIALSOLUTIONS
The Amazon Fund was developed and
operationalized very quickly. Its design drew
on the model and experience of private
philanthropic funds, independent conservation
trustfundsandPilotProgramfortheProtection
oftheTropicalForestsofBrazil(PPG7).12
Italso
drew on existing underpinnings, such as the
satellitebaseddeforestationmonitoringsystem
providedbythe BrazilianNational Institutefor
Space Research (INPE), and an established
nationalpolicyframeworkforprotectionoftheAmazon.
However,itbrokewithconventioninthreekeyways:
PerformanceBased Financing: the Amazon Fund provides simple intermediationbetween performancebased financing (per tonne of carbon emissions avoided) and
project investing. International funds are secured, uniquely to date, on the basis of
emission reductions demonstrably achieved, drawing on credible monitoring data,
acceptablebaselines,andafixedandmutuallyacceptablecarbonprice.
Restricted MultiStakeholder Governance: a multistakeholder committee involvingfederal and state officials and civil society representatives was established to set the
Fundscriteriaandattesttotheirapplication.However,thesteeringcommitteedoesnot
act as the board of the Fund, giving significant autonomy in practice to the Funds
managers.
LowCostLocalManagementbytheNationalDevelopmentBank:theFundismanagedbythenationaldevelopmentbankBNDES,withanagreementtotake3%ofdonationsto
cover costs. This is supported by a businessmodel oflowcost, rapid decisionmaking,
simplereportingarrangementsandafixedcarbonprice.
Itisincrediblehowquicktheyhavebeenin
acountrythatisknownforitsslow
processes.Theyareshowinggreatefficiency
inbuildingtheFundandachievingtheiraims
ofdeliveringfundingontheground.
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Exhibit2. HowdoestheAmazonFundwork?
Funding Governanceof
strategyand
funding
decisions
Strategic
guidanceand
oversight
Fund
management
Fundingcriteria
TheAmazonFundworks
through:
Donationlinkedtoperformance
GoverningbodyofBNDES
Multistakeholdersteering
committee
(COFA)
BNDESnationaldevelopment
Bank
Policycoherentthematic
fundingareas
agreedbyCOFA
Builton
foundations:
INPEssatellite
basedforest
monitoring
system
Norwaysfew
strings
donationand
trustinBNDES
Earlyleadership,
activecivilsociety
andincreasing
politicalsupport
BNDESexisting
processesand
competencies
Nationalpolicy
frameworkfor
protectionof
theAmazon
Workslikea: Multidonor
trustfund
BN DESsubfund Nat ionalfund BNDESsubfund Conservat ion
trustfund
Key
innovations:
Performance
basedfinancing
Restrictedmultisectorgovernance Lowcost
management
TheAmazonFundoffersatestofasetofdesignsolutionstoaddresseachofthekeycriteriafor
nationalclimatefunds:
Fiduciaryresponsibility:managementof theFundis mandatedto BNDES,theBrazilianNationalDevelopment,a bank that hasa strongtrackrecordof financialmanagement.
NorwayhasalsoreservedtherighttowithholddisbursementsiftheFunddepartsfrom
itsgoals andobjectives,if it fails to submit reports andaudits,or if it is mismanaged
financially.TheFundisexternallyaudited,withtheauditreportpublishedannually.
Social and environmental safeguards: the Amazon Fund is subject to the social andenvironmentalsafeguardsofBNDESoverallinvestmentsandinaddition,includesspecific
investmentcriteriarelatedtofreepriorandinformedconsentoflocalpeople.However,
these are not included in the donor agreement. The Amazon Fund does not have a
specificgrievancemechanism.
Alignment to development priorities: the investment criteria are aligned to theguidelines of the Governments Sustainable Amazon Plan, the Programfor Prevention
and Combating Deforestation in the Amazon and state plans for protection of the
Amazon.
Payforperformance:theAmazonFundoperatesonadonationbasis,raisingmoneyasarewardforcutsindeforestationlevelsalreadyachievedinthepreviousyear,measured
against a 10year average baseline, revised down every five years. INPE monitors
performanceusingdetailedsatelliteimagery.Thecalculationofthiscarbonperformance
measureissignedoffbyaTechnicalCommitteemadeupofkeyscientificexpertsinthe
field.
Costeffectivemanagement:insettinguptheAmazonFundthegovernmentmandatedBNDEStoretain3%ofeachdonationtocovermanagementcosts.Thisisextremelycost
competitivecomparedtootherfunds.Forexample,theWorldBanktypicallyretains10
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ofBrazilsnationalstrategyforpreventingdeforestation.
PowerandPolicies:theAmazonFundwascreatedtorewardandsignalsupportfromtheinternational community for Brazils policies to cut deforestation. The Amazon Fund
achieves change by helping to strengthen and reinforce the political and institutional
forceschampioningtheAmazoninBrazil.
Economic Pressures: the Amazon Fund offers an opportunity to direct internationalresourcestowardscatalyticapproachesthatenablelargescaleeconomictransformation
towardssustainabledevelopmentintheAmazon.Thesethreemechanismsareofcourse
notexclusive,butrathermutuallyreinforcing.
Exhibit3. TheAmazonFundstheoryofchange
Theprojects andimplementation theory of change isthe
primary operating mechanism of the Fund; selecting
projects that are in line with national policy priorities for
avoiding deforestation. This includes building capacity to
implement national policies for land registration, legal
enforcementanddevelopmentofprotectedareas.
However,manyof thestakeholdersofthe Fundwereclear
WiththeFund,Braziliansociety
hasinitshandaunique
opportunitytoreduceemissions
thatcanbefinancially
compensated.Butwhileitdoes
notbecomeapoliticalpriority,
wecanendupmissingthisopportunity.
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about thelimitationsof this approach,followingtheexperienceof yearsof donor fundingfor
Amazon projects and capacity building through programs such as the World Bank managed
PPPG7.TheyhighlightedthatappropriateandeffectiveactionintheAmazon,mustbebasedon
aclearunderstandingofeconomicandpoliticalforcesdrivingdeforestation.
Infact,theAmazonFundisnotsimplyamechanismforfundingprojects,buthaskeydesign
featuresaimedatpullingthepoliticalandeconomicleversforchange.
PowerandPolicies:Norwayslarge,longandfewstringsdonationwasintendedtodeliver
real and symbolic support to policymakers,
officialsandactivistsworkingtodevelopand
implementpolicies to value theAmazon and
decrease deforestation. The Funds steering
committee brings together federal
government agencies, states andcivilsociety
whichoffersthepotentialtolinkbacklearning
fromitsinvestments,intopolicydebates,and
vice versa. One direct mechanism for this is
that theFundsrulesrequirestatestodevelop astrategytofightdeforestation,before
theycanparticipateintheAmazonFundgovernance,andapplyforfunding.
EconomicPressures:thevisionforeconomictransformation is expressed in the Amazon
Funds objective to make the forest more
valuablethanthealternativeuseoftheland.
This is also frequently highlighted by many
members of the COFA and the technical
committee, aswell as in theAmazonFunds
public communications. At least half of the
Amazon Funds investments are intended to
go towards the innovation focused areas of
research and sustainable enterprise
development. The decision to make BNDEStheimplementingagencyfortheAmazonFundwasacombinationofadesiretohavea
competent national institutionmanagingthe fund, andtherecognitionthatasa major
playerinBrazilsdevelopment,thebankitselfhadtobecomepartofthesolution.BNDES
investsinindustriessuchasagriculture,meatpacking,damsandinfrastructurethatare
partofthedeforestationcycle.ManyoftheAmazonFundsstakeholdershaveexpressed
thehopethatengagingBNDESasthemanageroftheFund,wouldenablethebankto
build its own understanding of how its own investment practices can impact on
deforestation.
ThedangeristhattheAmazon
FundwillbelikethePilot
ProgramforProtectionofthe
Amazon.Itwassuccessfulin
movingmoneyandsupporting
projects,butintheenditdidnt
adduptoanything.Youhave
spentallthemoneyandareleft
withnothing.
TheentranceoftheBNDESintothe
Amazonandtotheenvironmentalissue
isofhistoricalimportance.Forquite
sometimenow,manyofushavebeen
callingfortheBanktobemoreinvolved
inthisarea.Ibelievethattheinclusion
oftheAmazonintheportfolioofthe
Bankisofhistoricalmagnitudeand,in
myview,goesbeyondtheconstitution
oftheAmazonFund.
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2.LEARNINGBYDOING
EARLYEXPERIENCES
InitsfirstyeartheimmediatepressureontheAmazonFundhasbeentosetcriteriaandrapidlystart to select projects and disburse funds, as well as to ensure and demonstrate fiduciary
responsibility.EightprojectsworthUS$60million have beenapprovedto date,the initialfive
projects announced atCopenhagenwere largelyfromNGOs,but laterprojects have included
statesandamunicipality.
Onedangereverpresentinthediscussionofclimate
finance and forest frontiers is that funding
mechanisms could fail through corruption and
mismanagement.TheAmazonFundappearstohave
avoidedthisfirsthurdle, althoughitislikelytoneedtostrengthenitsdemonstrationoftransparencyand
fiduciary responsibility to attract a wider range of
donors.Thesteeringcommitteehasrecentlysigned
off on the Amazon Funds first annual report,
indicatingthatthegovernment,stateandcivilsociety
participantsaresatisfiedwiththeauditandthatthe
FundsallocationshavebeeninlinewithgovernmentpolicyandtheFundsguidelines.
While the Amazon Fund has been able to get started relatively quickly, compared to other
funds,theactualrateatwhichmoneyisbeinginvestedonthegroundismuchslowerthanthe
rate that it is being earnedthrough reductions in deforestation within the agreement with
Norway.ThereforeBNDESskeypriorityhasbeentorampupdisbursementrateandcapacity.
Wehadagoodexperienceapplying
totheFund,theprocesswasless
bureaucraticandfasterthanthe
WorldBank.Thecontractingstageis
verytoughthough,astheydont
reallyunderstandhowNGOswork,
andalltheformsarethesametype
thattheyuseforcommercialloans.
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CHALLENGESANDGAPS
As the Amazon Fund has sought to mature its operations, a number of critical design and
operationalchallengeshavesurfaced:
Exhibit4. DesignandoperationalchallengesintheAmazonFundssecondphase
Projectfundinggap.BNDEScomplainsofalackofhighqualityfundableprojects,whileexternalstakeholdersandsomeCOFAmemberscomplainofnarrowoperationalcriteria,
lackofcommunicationandrigidproceduresmakingitdifficulttoaccessfunding.The
Fundstartedoutbyusingthesameapplicationforms,fundingproceduresandemployee
competencysetsfortheAmazonFundasBNDESdoesforitscommercial,industrialand
infrastructureloans.Therehavebeenconcernsthattheapplicationproceduresarenot
clear or appropriate, and this is believed to have been a factor preventing some
organisationsfromapplyingorleadingthemtomakeincompleteapplications.Thereare
also concerns that BNDES staff lack specific competency in assessing environmental
projectsandsustainabledevelopmentissuessuchasgenderequityandtherightsof
indigenouspeople.
Ambition gap. Norways initial donation of US$110 million a year was followed by asmaller donation from Germany, but there have been no additional donations to the
Fund. The Brazilian government has stated that it needs US$1 billion a year of
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international contributionsto fully implement itsmediumtermplansfor protection of
theAmazon.BNDEShasamandatetoraisefundsthroughtheAmazonFundmechanism,
butithasnotpursuedthisyet.IndeedrecentfundingraisedbyBrazilsuchasthrough
thedebtfornatureswapwiththeUSandthroughitsownoilproductionlevyhavenot
beenchanelledthroughtotheFund.
Governance gap. The multistakeholdercommittee and the Technical Committee
werecriticaltothesettingupoftheAmazon
Fund,providinglegitimacyandassurancethat
the Fund was not a donorled or federal
government program, that it would be
responsivetostakeholders,andthatitwould
notbecapturedbynarrowinterestsorshort
termpoliticalpressures.Howeveratpresent,
the ongoing role of the committee remains
ambiguous;itisgenerallyperceivedashaving
more influence and oversight of BNDESs
managementoftheAmazonFundthanitdoes
in practice. Civil society COFA members are
frustrated by the difficulty of influencing
BNDESs operational procedures. The
Technical Committee members also feel
underused,astheyarenotabletocontribute
to the ongoing development of investmentstrategy,andarelimitedtosigningoffonthe
endofyearcalculation.
Strategygap.TheAmazonFundwasineffectlaunchedasaREDDfund,inadvanceofBrazil
developing a REDD strategy. The criteria
developed provides basic guidance as to the
themes and activities that should be funded
including requirement for coherence with
nationalandstateplans,andanaimtotarget50%offundingtowardsscientificresearchand
innovation in sustainable economic activity in the Amazon. However, in its early
operations BNDES has tended to apply its criteria as a filter, rather than as a set of
strategicpriorities,seekingtoidentifyprojectsthatareabletosatisfytheadministrative
hurdlestoallowtheFundtobegintomakegrants.Todate,theAmazonFundhasnot
metits ambitionto target over half of fundingtowards innovation,but hastendedto
fundtraditionalcommandandcontrolmeasures.Ithasalsonotfoundawaytogetits
funds to grassroots organisationssuch as associations of rubber tappers,smallholders
andindigenouspeople.
TransparencyGap.AswithotheroperationalpracticestheAmazonFundstartedoutby
Theapplicationcriteriaare
narrow.Theydontdealwiththe
driversofdeforestation.In
particulardontdealwiththe
agriculturesector
TheTechnicalCommitteeismadeup
ofpeoplewithvasttechnicaland
scientificknowledge.Theirroleisto
validatethecarbonreduction
numbers,butthecalculationis
amazinglysimpleandsothe
Committeeisnotreallynecessary.It
isawasteofeverybodystime.It
couldbeusedtoassistincommissioningresearchandstudies
andadvisingonstrategy.
TheAmazonFunddoesnothave
acommitteethatthinks
strategicallyaboutdevelopment
intheAmazon,orabout
innovation.COFAisnotreallythe
placethatthisishappening;it
doesnothavethisstrategic
mediumtolongtermapproachto
thedevelopmentoftheAmazon.
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applyingstandardBNDESprocessesto its
levels of transparency. Transparency of
BNDES has long been a concern of civil
societyorganisationsinBrazil.In2009was
thefirsttimethatBNDESpublishedalist
ofprojectscontracted.AtfirstBNDESwas
not willing to publish details of projects
submitted, as well as those funded. Civil
societyorganisationsintheAmazonFund
steeringcommitteeshavesoughtagreaterdegreeoftransparencyfromBNDESoverthe
applicationsthathavebeenreceivedandtheprojectsthathavebeenfunded,andthere
has been some movement in this area with BNDES now publishing details of project
applicationsreceivedandbeingprocessed(althoughthisinformationisonlyavailablein
Portuguese).ThereisalsolittletransparencyabouttheBankssocialsafeguards,andthe
Amazon Fund lacks a specific grievance mechanism. Updates on the Amazon Fund
websitehavebeenfew(andoftenonlyavailableinPortuguese)andtherehasbeenalow
levelofengagementwiththemedia.
Capacity gap. In general the cost differential between national institutions andinternational organisations in managing climate finance has been stated in terms of
lower staff costs, and reduction in expenses of international flights and offices.15
However an initial assessment of BNDES suggests that this is not the only factor
underpinning BNDES lowcost structure in managing the Amazon Fund. In 2010 the
AmazonFundhadnine(andnowhas21)membersofstaffmanagingacurrentannual
budgetofUS$110milliondollarsgivingafigureof0.08peoplepermillion.16
ThisisinlinewiththelevelofBNDESstaffing,butbenchmarkedagainstotherfundssuggeststhat
the Amazon Fund may be understaffed to manage the throughput of the Norwegian
donation, or to ramp up fundraising and spending.17
The Fund has now increased its
staffing levelsbut thecentralisednaturemeansthatstaffarelimited intheirabilityto
visitAmazonstates ona regularbasis, andsuccessful fundingbidshaveofteninvolved
granteesmakingmultipletripstoBNDESinRiodeJaneiro.Whiletherehavebeensome
roadshows intheAmazon, theFunddoesnothavea localpresence,andinterviewees
indicated that awareness and understanding of the Fund amongst local stakeholders
remainslow.Successfulbiddershavebeenaskedbyotherstoexplainandguidethem
through the application, indicating a need for more local capacity building and
communication.
Itisaninnovativemechanism.Butit
seemsnontransparentfroman
outsidersperspective.Thereisnot
muchinformationabouttheFunds
projects,itsdevelopments,itsguidelines,itsstrategicviewand
approaches.Wedontknowaboutits
compliancemechanismsforexample.
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TheAmazonFund:radicalsimplicityandboldambition|16
LESSONSLEARNT
The start fast and evolve model enables
climateinstitutions todevelop inreadiness for
funding flows. If the Amazon Fund had been
developed through a normal approach, the ink
wouldnotyetbedryonthefinalagreeddesign.
Instead the Amazon Fund began with just
enough structure toget the Fund from idea to
reality and to bring together each of the key
actorsneededtogetitstarted.BNDEShasbuiltupcompetencies,andtogetherwiththeCOFA
arestartingtopursueactionstoaddresssomeofthegapsidentified:
Evolving funding processes to ensure they are clear, well designed and accessible,includingdevelopingafundingstreamandprocessforsmallerorganisations.
Improving transparency and communications about the Amazon Fund both on theinternetandthroughgranteeandfunderroadshows.BNDESnowreportsonproject
proposals received, their place in the pipeline, andthose that have beenfunded on
theirwebsiteandhasbeguntopublishkeydocumentsinEnglish.
Refining the focus andarticulationof thesegments andactivities theAmazon FundinvestsinBNDESconvenedthreedaylongmeetingswithspecialistsinthesectorandthe
Amazonregiontodiscusstheopportunities,challengesandsolutionstodevelopmentin
theAmazon.Theseproceedingswerepublishedandalsofedintothedevelopmentofa
resultsmatrix(logicalframework)fortheFund.BNDESwillcontinuetorefinetheresults
frameworkasitbuildsupexperienceformanalysingandmonitoringprojects.
The success of the startfast and evolve;model depends on ensuring that the institution
created is able to learn, adapt and evolve. Otherwise it may become stuck within its
shortcomings.BoththeBNDES,andtheAmazonFundstakeholdersperhapsunderestimatedat
theoutset,the challengesof onthe onehandbuilding thespecificcapacities thebankwould
need, and on the other, of challenging its
established practices. During the design of the
AmazonFund,nomechanismswereputinplace
to ensure that BNDESs operational procedures
metthespecificneedsforeffectiveinvestmentin
deforestation reduction in Amazon. Without an
operations manual of key expectations,
processes and principles at the outset these
elements have had to be negotiated and
developedastheFundhasevolved.Inthefaceof
an organisation with a strong culture and
establishedwaysof doing things,theimperative
Thisisanewmechanism.Thereareproblemsinstartingupabiginitiative.It
iseasytogetfrustrated.Buteverything
hashadtobedevelopedandnegotiated
astheywentalong.Thisispartofwhat
happenswhenyoubringinalotof
stakeholders.
RightnowtheAmazonFundisstillthe
bestREDDmechanismontheplanet,asit
isafinancialmechanismcapableof
reducingemissions.Itservesusasareal
learningmechanismtothegovernment,
toBNDESandtosocietyasawholein
howoneshoulddealwithREDD.Itisa
goodinstitutionbuthasfundamental
problemsthatneedtochange,especially
speedingupitsdisbursements,enabling
smallorganisationsandimproving
transparencyatBNDES.
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17|TheAmazonFund:radicalsimplicityandboldambition
ofgetting the Fund off the ground quickly, this has been anarduous processand has taken
muchofthesteeringcommitteesattention.
Anadoptabletoolkitof standards,processes,policies,and competenciescouldbe usefulin
acceleratingtheinitiallearningcurve.TheconfidenceinBNDEStotakeonmanagementofthe
Amazon Fund was crucial to its rapid development. While the Amazon Funds civil society
participantsand their broadernetworks areoften
strong critics of the Bank, they also hoped that
placing the Amazon Fund within the bank would
enable broaderengagementand capacity building
to understand and address the drivers of
deforestation within its conventional investment
portfolio. In theprocess oftakingon theAmazon
Fund, BNDES has strengthened its Environmental
Division, and bank personnel have gained
experience and knowledge through engagement
with the COFA and through technical assistance
fromNORADandGTZ,andinputsbytheBrazilian
Forest Service, Ministry of Environment and the
Brazilian Institute of Geography and Statistics in
developingtheirimpactsframework.
A simple financing mechanismmaynotbe enough. Atpresentthe Amazon Fund isnot an
institution with a strategy, budget and targets. It is a simple, lowcost financing mechanism
housed within a strong and powerful institution. However its goals, and the hopes and
expectationsofitsstakeholdersarehugelyambitious.Inordertomaketreesgrowonmoney
the Amazon Fund seeks to provide sufficient funding to enable capacity building and
implementationofBrazilsnationalstrategyforpreventingdeforestation,byfederalagencies,
states,municipalitiesandcivilsociety.Italsoseekstoidentifyandscaleupnewapproachesto
sustainable development in the Amazon, to the point where they influence the economic
driversofdeforestation.Theemergingfunding,strategy,capacityandgovernancegapsindicate
that the Amazon Fund is likely to have to either develop beyond its initialsimple,financing
mechanism,orrevisedowntheseambitions.
TheMinistryoftheEnvironmenthas
brokenabarrierwithinthegovernment
whichpreventedtheinclusionofforestsin
thediscussiononclimatechange.With
that,itmanagedtoleveragetheideaof
creatingafundfortheAmazon.Welivein
asituationofpoliticalconflictbetween
differentareasofgovernment,withno
prospectofsolution.Tosurpassthese
barriersintheenvironmentalareaand
moveintootherareasisessential.
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TheAmazonFund:radicalsimplicityandboldambition|18
3.THEFUTURE
CANTHEAMAZONFUNDMAKETREESGROWONMONEY?
It is of course too early to evaluate the AmazonFunds impacts but it is clear from the current
focus of BNDES, and of discussions at the COFA,
that the Amazon Fund is focused on building its
capacity,fundingstrategyandpipelineofprojects,
to deliver through the first theory of change
projects and implementation ramping up its
abilitytodisbursefundingtoagreaternumberof
projects,andcoordinatingtransfersoffundingtotheAmazonregion.Overcomingoperational
challengesinordertorampupdisbursementsinthiswaywillbecrucialtotheAmazonFundas
ittransitionsfromitsearlystartupphasetoafullyfledgedandoperationalfund.
BNDES has hosted discussions amongst Amazon
stakeholders and experts on the drivers and
solutionstodeforestation.Thesehaveemphasised
the political and economic dimensions of the
problem. The lessons of the Pilot Program to
ConservetheBrazilianRainforestarethatfunding
a basket of projects is not enough to achieve
lasting change. Indirectly supporting policy
development by building the constituency of Brazilian politicians, officials, NGOs and
professionals in favour of green environmental policies, is slow and unpredictable.18
As a
national institution the Amazon Fundhas the potential to do more to influence powerand
policies.The Fund is already credited with having influence on BNDESs broader investment policies,
which help to drive economic pressures. The Bank has recently launched a 1 billion Reais
(US$588million)fundtofinanceprojectstoreducegreenhousegasemissionsassociatedwith
agriculture. It has also established more rigorous lending criteria for ranchers and farmers,
requiring traceability by meatpackers to ensure cattle production does not result in
deforestation.
BrazilsREDDstrategywillcertainlyneedtotacklethe
economicandpoliticaldriversofdeforestation.The
questioniswhethertheAmazonFundcanplayan
activepartinthis,asadriverofinnovation,asahubfor
learningandstrategydevelopmentandasafocalpoint
forpolicydebateanddevelopment.Alternativelyit
maybecomeasimpleaccountingmechanismabank
accountandfundraisingsystemattheinterfacebetweenBrazilsnationalpolicydevelopment
andimplementationandtheinternationalclimatefinancesystem.
TheFundisthecountrys
bettodealwithinternational
moneyandsoitshouldbe
morecreativeanddynamic.
Thereisagreatlackofharmony
betweentheenvironmentalareaand
otherareasinthegovernment,
whichcallsintoquestiontheissueof
thecountryscredibilitytocontinue
receivingthesedonations.
ThefirstcentralideaoftheAmazon
Fundshouldbetoinitiateaneffort
tomakeresourceallocationmore
systematicandefficient.
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TheAmazonFund:radicalsimplicityandboldambition|20
Simplicity:theAmazonFundremainsasubfundofBNDESandoperatesasasimple,lowcostfundingmechanismwithinabroaderBrazilianREDDsystem.TheAmazonFundsrole
wouldbetoaccountforfundingandforestcarbonflows,insupportofawelldefinedand
ambitiousnationalstrategy.Atitscorewouldbethesimpleformulaofdollarspertonne
and tones per hectare. Strategy development, capacity development, influence and
learningcarriedonbyotherpartsofthesystem.
Ambition: the Amazon Fund develops into a mature and increasingly autonomousinstitution at the heart of Brazils REDD strategy, that is proactive in fundraising and
investment, learning and influencing broader systems. The Amazon Fund develops a
visionandstrategythatisnotonlystewardedandsupportedbyitsstakeholdersbutone
thatinvolvesthemandwillultimatelyshifttheirinvestmentdecisions.
Exhibit5. ThreescenariosfortheAmazonFund
Simplicity Stuckinthemiddle Ambition
Awardgrantstobroader
networkintermediary
organisationsforcapacity
building,programmesand
smallgrantgiving
Projectfundinggap:Unable to identify
enough highquality fundable proposals
using current criteria and funding
mechanisms
Developspecialist
fundingcompetency,
andcatalysethe
developmentregional
andthematic
programmes
Remainasasimple
mechanism,passively
collectingandaccounting
forfundsdonated
throughinter
governmentalagreements
Ambition gap: Lack of proactive
fundraising strategy to close the gap
between current funding and overall
need
Investinmanagement,
fundraising,
communication,and
capacitybuildingtogo
beyondinitialfunds
secured
RemainasaBNDESsub
fundwithlimited
stakeholderroles.
Stakeholderengagement
onREDDstrategywould
takeplaceseparatelyat
nationallevel,andinlocal
processes
Governance gap: Frustration amongst
stakeholdersinvolvedingovernance
Developintoan
autonomousinstitution
withBNDESproviding
secretariat
Seekgreaterguidance
fromnationalandstate
REDDstrategiesto
prioritisefunding
Strategy gap: Lack of a strategy for
prioritising investments and reaching
ambitiousimpacts
Developasamature
organisationwitha
strategyandtargetsfor
funding,influenceand
impacts,including
engagementwith
economicactors
Maintainlow3%direct
administrationcosts
Capacity gap: Calls for more involved
processes for communication, capacity
building, small organisations conflict
withlowoperatingcosts
Providetransparent
analysisofcosts
neededtoupscale
impacts
Transparencygap:WhicheverwaytheAmazonFunddevelops,transparencywillbecrucial.
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21|TheAmazonFund:radicalsimplicityandboldambition
Whichever track the Amazon Fund goes down
there will be risks and dangers. In part the best
pathwaydependsonthebestbetsoftheAmazon
Fundstakeholdersthemselves.IftheAmazonFund
stakeholderssee itas thebestcurrentlyavailable
vehicle for developing and influencing Brazils
strategicdirection for avoidingdeforestation, and
investtheirtime,resourcesandeffortstheycould
makeitso.
Butiftheybelievethatthesedecisionsarebetter
served by other forums they maydecideto keep
the Amazon Fund as a streamlined and simple
accountingmechanism,andcascademoredetailed
funding decisions to other funds, states,
municipalities and civil society consortia. But
continuing to try to navigate a middle course is
perhapsthemostdangerousrouteofall.
At present the Amazon Fund sometimes faces
criticismforitsparadoxesitis,ironicallyfunded
by the proceeds of oil , managed by a major
investor in infrastructure,agricultureand mining,
andgovernedinpartbyfederalandstateagencies
whose sustainable development policies still sit
alongsideanextractiveeconomymodel.However
itisthisinvolvementwitheachoftheseeconomic
andpoliticalactorsthatmaybeitsmostimportant
strength.
Ultimately,toachievesustainability,climatefundingmustsucceedinshiftingtheeconomyto
oneinwhichlowcarbonindustriesaremorecompetitive,andthiswouldinvolverealshiftsfor
alloftheseactors,andforthebroaderprivatesector.
Thereisnonationalprojectforthe
Amazon.Brazildoesnotevenknowifit
shouldmakealargegroupofnational
parksoutoftheAmazon,orahuge
soybeanplantation,ormaybeboth.
Unlessweestablishthisvisionwecannot
solvetheissues.Thinkingpracticallyit
wouldbeimportantifBNDESwasto
createanucleusforstrategicthought:a
forum,aspacetocreatethisnational
project.Brazilwillonlytacklethe
Amazonissuewhenwecreateanational
projectfortheregion.
ThefutureofBNDESandBrazil,from
thestandpointofitsdevelopmentand
itspositionintheworld,willbe
decidedinafiercecompetition,which
requiresvaststrategicforesight,
becausethenewparametershavenot
yetbeengivenaprice.Thenameof
thegameissustainable
development.Thisisthefutureof
BNDES;thisisthefutureofbusiness.
Thisisnotanitemonanagenda,but
onethatwilldecidewhatBrazilwillbe
liketomorrow.
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TheAmazonFund:radicalsimplicityandboldambition|22
LESSONSFOROTHERS
Forthosedevelopingclimatefundinginstitutionsinothercountries,theAmazonFundsstartfastandevolvemodeloffersapotentapproachtobreakthroughthedeadlockofinternational
negotiatingparalysis,andbegintobuildupinstitutionalcapacity.
AsExhibit6highlights,manycountriesaresettingupinstitutionsthatparalleltheAmazonFund.
However,ithasbeennotedthatdespitetheUNFCCCAdaptationFundsprovisionforNational
DirectAccessinstitutions,manycountriesarefallingbackontraditionalmultilateralagenciesto
managetheiradaptationfinance.19
Thisrepresentsalostopportunitytobegintobuildupthe
institutionalcapacityandlearningneededtoeffectivelymanagethesefundstowardsnational
priorities.
Oneofthemostimportantcriteriaintheinstitutionaldesignandselectionoftheseinstitutions
should be the ability to learn and evolve, and to support stakeholder engagement to drive
strategydevelopment.TheAmazonFundsexperiencehighlightstheneedforongoinglearning
cycles of review, reflection and design evolution to be built into the process of institutional
developmentofemergentnationaldirectaccessinstitutions
Such funds, including the Amazon Fund, need to consider how they will address the three
theoriesofchangeandwhethertheyhavetherightgovernanceandmanagementtodothis.
Aretheydesignedandincentivizedtotakeentrepreneurialdecisionstodrivevaluecreationfor
lowcarbon development,and to leverage privateinvestment?Can theycontribute to policydevelopmentandimplementationinareaswheretherearehugevestedinterestsinthestatus
quo?
Inshort,whatbecomesclearfromtheexperienceof theAmazonFundis thatto supportlow
carbon development, national climate institutions need to be truly developmental, and not
simply mechanisms to accountant for climate finance. Establishing meaningful, national low
carbongrowthanddevelopmentplansrequiresnewinstitutionalarrangementsunderpinnedby
transparencyandstrongpoliticalandeconomicleadership.
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23|TheAmazonFund:radicalsimplicityandboldambition
Exhibit6. EmergingnationalclimatefundsModel Examples Funding Governance Guidance Fund
Management
FundingCriteria
Typical Donation Inter
ministerial
committee
Governmental
ormulti
sector
advisorygroup
Initially
offshore
Linkedtonational
policy
Bangladesh
MultiDonor
TrustFund
Donation Government
Climate
ChangeUnit
underMinistry
of
Environment
andForests
Parliamentary
Groupon
Climateand
Environment
WorldBank
(with
intentionof
becoming
national
later)
Bangladesh
ClimateChange
Strategyand
ActionPlan
CongoBasin
ForestFund
Donation Governing
councilof
donors,
expertsand
some
stakeholders
CongoBasin
Forest
Partnership
African
Development
Bank.
Funding
decisions
madeby
governingCouncil
Innovation
Coherencewith
regionalplans
Cambodia
Climate
ChangeTrust
Fund
Donation Ministryof
Environment
onbehalfof
National
Committeefor
Climate
Change
(NCCC),
Multi
stakeholder
Technical
Advisory
Panel
UNDP(with
intentionto
transfertoa
national
committee
later)
Nationalpolicy
Multidonor
trustfund
Indonesian
Climate
ChangeTrust
Funds
Donation Ministerial
steering
committee
Technical
committee
(government)
UNDP(with
intentionto
transfertoa
national
trustee)
Linkedtonational
budget,roadmap
andmidterm
plan
Adaptation
fundnational
implementing
entities
Project
funding
from
adaptation
fund
Mayinclude
ministries,
inter
ministerial
commissions
and
government
cooperation
agencies.
National
body
Doesnotmake
fundingdecisions
makesdecisions
tosubmit
applicationsto
theAdaptation
FundBoard
Conservation
trustfund
Donations,
counterpart
funding,
revenues
Governing
councilof
NGO,sector,
academicsand
officials.
Consultative
council
former board
members.
Technicalcommittee
Independent
private
institutions
Programmatic
fundingareas(not
yetclimate
funding)
Fundo
Nacionaldo
Meio
Ambiente
(FNMA)
National
Environmental
Fund
Public
funding,
levies,
donations
Governing
Council of
government
ministries,
agencies and
NGOs
Environment
Ministry
Linkedtonational
fouryear plan,
with thematic
areasforfunding
National
Fund
ChinaCDM
Fund
Levy,public
fundingand
donations
Interministerial
governing
board
Ministryof
Finance
Contribute to
China
NationalClimate
ChangePlan
The Amazon
Fund
Donation BNDESBoard COFA BNDES Thematic,linked
tonationalplan.
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TheAmazonFund:radicalsimplicityandboldambition|24
1 Available to download from: www.zadek.net/wpcontent/uploads/2010/01/RadicalSimplicityinDesigning
NationalClimateInstitutions_LessonsfromtheAmazonFund.pdf2 In2009BNDEShostedaseriesofmeetingtocontributetotheAmazonFundsstrategy.Theproceedingsof
thesemeetingsarepublishedinthebookBNDES(2010)TheAmazonunderdebate:Opportunities,challenges
andsolutions.Availabletodownloadfrom:www.amazonfund.gov.br3 Mulller,B (2010) The Timeis Right! Devolutionof fundingdecisionsto designated national/regionalclimate
changefundingentities,OxfordEnergyandEnvironmentComment,November20094 See for example Craynest, L(2010) Business as unusual: Direct Access: Giving power back to the poor?,
Caritas/CIDSE,Brussels5 Thornton,N (2010) RealisingDevelopmentEffectiveness: Makingthe mostofclimatechangefinanceinAsia
andthe Pacific,SynthesisReport.Background to the AsiaPacificClimateChange Finance AidEffectiveness
Dialogue,1920October2010,Bangkok,Thailand6 Seefor exampleWilks,A (2010) Climateadaptation funding: Lessonsfromdevelopment finance, discussion
paper,Eurodad/ActionAid
7 Ballesteros,Athenaetal.Power,ResponsibilityandAccountability:Rethinkingthelegitimacyofinstitutionsfor
climatefinance.WRIWorkingPaper.WorldResourcesInstitute,WashingtonDC8 Spergel,BandTaeb,P(2008)RapidReviewofConservationTrustFunds,ConservationFinanceAlliance,
9 PWC(2010)NationalREDD+fundingframeworksandachievingREDD+readinessfindingsfromconsultation,
ConservationFinanceAlliance10
Sharma,A(2010)TheReformedFinancialMechanismoftheUNFCCC:Renegotiatingtheroleofcivilsocietyin
thegovernanceofclimatefinance.OxfordInstituteforEnergyStudies11
Shwartzman,S(2009)BrazilnationalandstateREDD,EnvironmentalDefenceFund12
SeeforexampleMcKinsey&Co(2009)Howtobuildacharitablefundandcreatethelearningorganisationto
make it succeed, a report based on a benchmark study commissioned by DFID to assist the Brazilian
governmentinestablishingtheAmazonFund13 Peskett, L, Luttrell, C and Iwata,M (2007) Can standards forvoluntarycarbon offsets ensure development
benefits?,ODIForestryBriefing13,July200714
SoaresFilho,B,Moutinho,P,Nepstad,D,Anderson,A,Rodrigues,H,Garcia,R,Dietzsch,L,Merry,F,Bowman,
M, Hissa,L, Silvestrini, R and Maretti, C. Role of Brazilian Amazon protected areas in climate change
mitigation.PNAS,Vol107no24,June15,201015
Muller,B(2010)TheReformedFinancialMechanismoftheUNFCCCPartII:TheQuestionofOversightPost
CopenhagenSynthesisReport,EV52,OxfordInstituteforEnergyStudies16
NGOreportfromSeptember2010COFAmeeting
http://deolhonofundoamazonia.ning.com/profiles/blogs/relatodaultimareuniaodo17
TheProtocolMultilateralFund,employs0.19peopleperUS$millionofthroughput,theGlobalFundemploys
0.21people/US$mandtheWorldBankGroupemploys0.5peopleperUS$million18 Lele,U,Viana,V,Verissimo,A,Vosti,S,Perkins,KandHussain,SA(2000)ForestsintheBalance:Challengesof
conservationwithdevelopmentevaluationcountry,CaseStudySeries,WorldBank19 RatajczakJuszko,I(2010)InternationalClimateFinancing:GovernanceChallengesFacingtheAdaptationFund,
BriefingPaperforthe14thIACCConferenceinBangkok,14thInternationalAntiCorruptionConference1013
November2010,Bangkok,Thailand
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ABOUTTHEAUTHORS
SimonZadekisanonresidentSeniorFellowattheCentreforBusinessandGovernment
of Harvard Universitys Kennedy School. He founded, and was until recently Chief
ExecutiveofAccountAbility,whereheestablishedtheorganisationsgloballeadershipin
sustainability standards, collaborative governance and responsible competitiveness,
extendingitsimpactfrombasesinBeijing,SaoPaulo,LondonandWashington,andthroughactivitiesin
SouthAfricaandacrosstheMiddleEast.SimonsitsontheInternationalAdvisoryBoardoftheBrazilian
business network, Instituto Ethos, the Advisory Board of the sustainability fund manager, Generation
Investment Management, and the Boards of the International Centre for Trade and Sustainable
DevelopmentandtheEmployersForumonDisability.In2003hewasnamedaWorldEconomicForum
GlobalLeaderforTomorrow.Simonsworkwithbusinesses,governmentsandinternationalorganisations
over the last decade has contributedto establishing responsiblebusiness onthe global map asa core
businessstrategyandpublicpolicyissueandpractice.
SimoncanbecontactedatSimon@zadek.netortolearnmoreaboutSimonsworkvisitwww.zadek.net
Maya Forstater has worked for over ten years in the field of sustainable business,
leadingresearch andhelpingorganisationslearn,improveandcommunicateonissues
ranging fromclimate change to supply chain labour standards. She has worked with
majorcorporations,multisectorpartnershipsandbusinessgroupingsintheenergy,ICT,
apparel, mining and mineralsand mobility sectors, and has written extensively on a
range of issues related to sustainability and business. She has authored and contributed to numerous
publications including: Responsible Businessin Africa: Chinese BusinessLeadersPerspectives(Harvard
KennedySchoolofGovernment);LowCarbonGrowthPlans:AdvancingGoodPractice(ProjectCatalyst);
MobilityforDevelopment(WBCSD);TheUNEP/AccountAbilityHandbookonStakeholderEngagement;The
Materiality Report (AccountAbility); Corporate Responsibility: Implications for SMEs in developing
countries(UNIDO);andBusinessandPoverty:BridgingtheGap(IBLF).
[email protected]:@mforstater.
FernandaPolacowhasworkedforovertenyearsinthenonprofitsectorandinthe
field of sustainable development, participating in community programme
development, public health campaigning, public policy framing, research
development, communications strategy development and implementation and PR
campaigns.FernandahasparticipatedintheresearchwiththeAmazonFundonnew
climate institutions arrangements (Radical Simplicity in Designing National Climate Institutions: Lessons
from the Amazon Fund, 2009) and has authored and coauthored articles for media like the Financial
Times, Times, Fortune China, Ethical Corporation, Impactus, Ideia Socioambiental, CIVICUS, and Ethical
Performance.
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[email protected](inEnglish)[email protected](inPortuguese).
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