The FFEM’s contributions range from €500,000 to €3,000,000 per project. The number of projects for which the FFEM’s contribution exceeds €2,000,000 can be decided only by the Steering Committee.
FFEM funding comes in addition to the cofinancing provided by the project initiators, the direct beneficiaries, or any other financial partner. Operational costs are shared, and local or other financial resources are mobilized. This both promotes and demonstrates ownership of the project by its initiators and the local beneficiaries, in turn helping to ensure the sustainability of the activities once FFEM support has ended.
The FFEM’s co-financing rate is:
• a maximum of 50% for NGOs, local public stakeholders, research institutions, and firms from social and solidarity based economy (which does not include mission-based firms);
• a maximum of 30% for profit-making companies and international organizations.
At each stage of the examination process, the status of the cofinancing (requested, to be requested, or received) must be indicated. Project evaluation will include an analysis of the effective mobilization of the cofinancing that had been expected.
The duration of the activities cofinanced by the FFEM may not exceed five years, except in cases for which justification is formally provided. It is not the FFEM’s duty to ensure the sustainability of a project beyond the period initially provided for. It is up to the project initiator to identify, during the project implementation, the financial resources that will ensure the continuity of the project beyond five years.
FFEM principles for supporting carbon finance projects
The comparative study of offset standards published by the French Ministry of Ecological Transition and Territorial Cohesion was based on analysis against 5 basic criteria: measurability, verifiability, permanence, additionality and uniqueness. Three additional criteria were applied: observance of human rights; inclusion of criteria on environmental, social and economic co-benefits of the project; and link with the United Nations 2030 Agenda Sustainable Development Goals (SDGs). The FFEM will apply these criteria in evaluating projects with a carbon finance component, with an emphasis on 5 principles:
- multisolving projects, as part of a territory-wide or sector-wide approach
- robust certification
- transparent and participatory governance that encourages scaling-up
- transparent and fair distribution of benefits
- compensation as a last resort in the avoid-reduce-compensate hierarchy.