Fiji Forest Sector & Status of Overseas Development Assistance

1. Tanoa International Hotel, Nadi, Fiji. 23rd -27th July 2012 Second Expert Meeting on Forest Financing for Small Island DevelopING States Fiji Forest Sector & Statusof Overseas Development Assistance

2. Part 1: Forest Sector Profile Part 2: Overseas Development Assistance Framework Part 3: Level of Assistance Part 4: Forest Sector Financing requirements Part 5: Conclusion Presentation outline

3. Forest sector profile

4. Lat. 18°00′S Long. 179°00′E Land Area: 18,270 km2 Highest peak: 1,324 m Population: 838,000 GDP per capita: USD $3,035 Total GDP: USD $2.5b (2008) % Contribution to GDP Sugar 6% Other agriculture 6% Fisheries 3% Forests 1.3% Fiji Basic Information

5. VISION : Our Future Generation Inherits a Prosperous and Enhanced Fisheries and Forest Sector MISSION: Improving Livelihoods through SMART Policies on Sustainable Management of Fisheries and Forest Resources GOAL: Increasing the Fisheries and Forest Sectors contribution to GDP ... through SMME’s and Downstream Processing DEVELOPMENT APPROACH: Creating a Paradigm Shift – Production Oriented towards Resource Conservation and Sustainable Resource Management ABOUT MFF

6. Forest Policy 2007 (Based on SFM) • Conservation of forests and biological resources • Integrated forest resource management • Resource owners and community involvement in SFM • Upgrading of forest industries and promotion of high quality products • Institutional framework, and human resources • Major policies & legislations • Native Lands Trust Act (1940) • Fiji Pine Decree (1990) • Endangered and Protected Species Act (2002) • Fiji Rural Landuse Policy (2005) • Environment Management Act (2005) • Mahogany Industry Development Decree (2010) • The Fiji REDD+ Policy (2010) • Forest Decree (1990)-Currently under review • Fiji Climate Change Policy (2011) Policies, Institutions & Inter-sectoral Linkages

7. FOREST SECTOR – SNAPSHOT

8. Fiji Forest Policy 2007 • Financial Strategy (Section 6: Forest Financing Strategy) • Forestry Department Revenue • Forest Sector Development Fund • Trade & Commercialization Measures • Financing Conservation & Protection Measures • Financing through International & Regional Forestry Cooperation Existing mechanism for forest financing

9. OVERSEAS DEVELOPMENT ASSISTANCE FRAMEWORK

10. Ownership of development priorities by developing countries • Results-focus • Inclusive development partnerships • Transparency and accountability Principles for Effective Development Cooperation

11. FIJI ODA PROCESSES • Budget Aid Coordinating Committee (BACC) • Planning, Disbursement, Monitoring and Evaluation • Through annual budget process • Aid Funds reflected in National Budget

12. Role of the BACC Provide advice to Government on ODA; Oversee Planning and Implementation; Appraise and Approve Aid-Funded Programmes and Projects; Promote dialogue with Donors/ Development Partners; and Assess and Recommend Improvements to ODA mechanism

13. 1. Baseline Budget ODA - baseline is set by MoF and sent to all Donors and Ministries/Departments National ODA Process – budget planning • 2. Consultations • first round of consultations between MoF, Donors and Implementing agencies. • second round of consultations to confirm/ agree on projects to be included in the Annual Budget 3. Finalisation of Aid /ODA Estimates - ODA budget is finalised/ confirmed with Donors and included in the Budget Estimates • 4. Budget Announcement • Copies of Budget Documents are send to Donors

14. Disbursement ODA Processes: Disbursement & Monitoring • Ministries and Departments (implementing /executing agencies) • Receive notification from Donors on remittance of Aid Funds • Apply for Release of Funds • Ministry of Finance • Assess/ Process applications; and • Disburse funds through Budget/Accounts process Implementation of Aid-funded Projects & Programmes Monitoring • Government and Donors jointly monitor and evaluate projects - site visits & progress reports, etc.

15. Assuming Greater Ownership Role in the Development Policy Framework, Strategies and lead future Consultative Mechanism • Aligning donors procedures, processes and programs to Government systems • Strengthening Co-ordination between Government and donors, NGOsand financial institutions • Improve Co-ordination and Delegation Between Donors • Institutional Capacity Building vi) Improve Quality Reporting • Improving Accountability of Funds Key Issues for ODA

16. ALL donor assistance is ALIGNED to development priorities i.e. Roadmap targets; • BACC is the central aid coordination mechanism; • Increase integration of ODA into budget cycle; • Ad-hoc ODA funds result in unbudgeted requests; • Improve M&E of ODA resources; and • Increase dialogue and information sharing. Important issues

17. LEVEL OF ASSISTANCE

18. Forest & Fisheries budget

19. STATUS OF DONOR FUNDING – NATIONAL LEVEL

20. Donor assistance to the ministry

21. Sources of donor assistance

23. FOREST FINANCING REQUIREMENTS

24. Attractive incentive packages from key stakeholders tailored for various markets, and stages of wood production Linking tax deductions with degree of compliance to SFM standards such as National Standard for Forest Certification Specialized capacity that fully understands the evolving needs of investors for developing specific packages serving mutual needs. An institutional infrastructure to address the various needs of investors at the various stages of the investment Administration and management must target a balance in investment in various resource sectors (agriculture, fisheries, forests). A strong link between regional organizations as conduits for accessing funds for implementing SFM related programs, as alternative sources for the difficult to access ODA Issues for Private Investments and Enabling Environment for Financing SFM

25. Large potential for conservation and alternative livelihoods, resourcing needs to be enhanced. Addressing the drivers of deforestation and forest degradation Lack of support in financial institutions targeting forest management activities An increasing awareness on the importance of forests environmental conservation. Lack of incentives for the private sector to improve sustainable forest practices. A large potential for private and corporate investors to invest into forest-related activities, need to put in place incentives for afforestation and reforestation Financing Gaps and Opportunities(Findings)

26. Implementation procedures • A whole paradigm shift in forest management and decision making • Implementation modalities • Communication and awareness; monitoring of implementation • Implementation priorities • Integrated resource management; transition from timber production to sfm, shift to landowner involvement, upgrading of forest industry and supply of high quality forest products, institutional framework • Role of stakeholders • National government; Forestry department; other government institutions, resource owners, forest industry, NGOs SFM Implementation Challenges

27. Formulate a National Forest Development Strategy that includes a National Forest Finance Strategy Strengthen collaboration with Pacific Regional Organizations and NGOs in forest conservation and accessing conservation grants. Encourage Corporate Social and Environmental Responsibility Encourage Forest Certification (SFM Certification) Encourage Public-Private Partnerships for infrastructure developments Review forest licence and service fees towards a user-pay system Establish incentives for forest establishment and sfm related activities Encourage development of non-timber and non-wood forest products Levy a Green Feeon foreign visitors Promote Agroforestry practices Introduce a levy system on the sales of logs sourced from native forests Promoteforest-based ecotourism Implement the Fiji REDD+ policy RecommendationsStrategies for increasing financing flows for SFM

28. Thank You for your Attention