Forest Carbon Partnership Facility Conflicts of Interest FCPF - PowerPoint PPT Presentation

Forest Carbon Partnership Facility Conflicts of Interest FCPF Participants Committee Meeting (PC15) Lombok, Indonesia, June 30-July 1, 2013

Overview I. Objective II. Potential Conflicts of Interest III. Process IV. FCPF Charter Amendment 2

Objective • FCPF Carbon Fund ( CF ) Participants and/or FCPF Participants Committee ( PC ) members (which are Donor Participants or CF Participants) may engage in other activities with respect to an ER Program (CF) or a Readiness Preparation Proposal/Readiness Package (PC) that may cause competing interests of such CF Participant(s)/PC member(s) • The revised Conflicts of Interest provisions in the FCPF Charter shall ensure that each such CF Participant/PC member who engages in such other activities:  discloses its (potentially) competing interests to the Facility Management Team ( FMT ) through email or other written electronic means and  if so determined by the FMT (or confirmed by the CF/PC), recuses itself from the deliberation, discussion and/or decision-making process under the CF/PC with respect to the affected ER Program or Readiness Preparation Proposal/Readiness Package, as applicable 3

Potential Conflicts of Interest • Other activities with a potential of establishing competing interests under the CF:  direct involvement in preparation/implementation of ER Program (including ER Program PIN and ER Program Document) or in designing ER Program;  Engagement in separate ER transaction from the ER Program • Other activities with a potential of establishing competing interests under the PC:  direct involvement in preparation/implementation of Readiness Preparation Proposal/Readiness Package ( REDD Activities ) • Failure to disclose such other activities to the FMT constitutes a breach of the FCPF Charter • FMT shall determine what remedies to exercise after consultation with the other CF Participants/PC members 4

Process Potential Disclosure under CF Disclosure under PC Conflict of Interest (prior to CF review of ER Program) (prior to PC consideration of (CF Participant/PC member) REDD Activities) inform inform PC CF FMT FMT Failure to disclose Determination Determination of Determination Determination Determination that no conflict remedies after that conflict of that no conflict that conflict of of interest exists consultation with interest exists of interest exists interest exists (FMT) CF/PC (FMT) (FMT) (FMT) (FMT) inform inform inform inform CF PC PC CF No no objection objection objection objection CF Participant/ PC End of PC member CF End of decides Process recuses itself decides Process

FCPF Charter Amendment • FCPF Charter needs to be amended accordingly (draft FCPF Charter Amendment has been posted on both C7/PC15 websites) • FCPF Charter Amendment to be adopted by PC Resolution  Requires unanimous consent of PC members plus  30-day no objection period for all other Participants  PC Resolution to be drafted by PC Contact Group 6