investing in sustainable landscapes

Investing in Sustainable LandscapesPeter Holmgren, Director-General CIFOR26 November 2013

Center for International Forestry Research Vision: Forestry and Landscapes are high on the political

agenda and contribute to broader development goals.

Inter-governmental organization, HQ in Bogor, Indonesia, working globally.

Research, capacity building and outreach to bring solid and relevant science to decision-makers.

C I F O R

How it started Founded in 1993 after Earth Summit in Rio

de Janeiro; 2013 is 20th Anniversary

Founding sponsors were Australia, Sweden, Switzerland and the United States

Indonesia bid successfully to host CIFOR headquarters in Bogor

Why Landscapes?

Landscapes are essential for future we want.

34

12 Fragmentation of sectors and political

processes hinder us.

Landscapes approach creates synergies and manages trade-offs.

People on the ground are in charge.

Private finance is essential to the solutions.5

Political Processes Focused but Fragmented

Maintaining biological diversity Conservation Sustainable use

Mitigating and adapting to climate change Rural communities Land-based sectors

Food security aspirations Nutrition and health Climate-smart

agriculture and food systems

MDG Post-2015 development agenda Poverty reduction Sustainable

Development Goals

Green economy Return on

investments in a green economy

Improved livelihoods

The Landscapes “Big 5”

We need a Common Language for Landscapes

Objectives, measures, performance

• Easy to understand

• Apply to any scale

• Apply to any location

• Measurable

• Sustainability can mean improvement over time

Global Landscapes ForumWarsaw, 16-17 November 2013 – at COP19

• A Landscapes Approach to inform: • Climate Change agreements and actions• Sustainable Development Goals

• Agriculture & Forestry together - 2200 participants over 2 days • 4 themes: • Investment• Governance • Climate change adaptation & mitigation• Food and nutrition

Global Landscape ForumWarsaw November 16-17, 2013

Global Landscapes Forum 2013: A Summary and Celebration

Finance for Sustainable Landscapes

– connecting the dots Investors:

• There is abundant capital seeking good investment propositions that also contribute to sustainable development

Farmers / Producers:

• Access to long-term, affordable and reliable capital is a major limiting factor for our enterprises

Public sector:

• Desire to use public funds for demonstrable results in delivering public goods and sustainable development

Landscape Fund – spreading risk, effective verification

Fina

ncia

l Enti

ty

Producer

Producer

Producer

Producer

Producer

Producer

Aggregator

Aggregator

Sustainability verification

>12% IRR2-3% margin<1%acceptable?

Take home messages

Landscapes are key to the future we want

Landscapes contain viable investment propositions

• also with conditions of sustainability

These investments can be applied at scale, with:

• efficient sustainability verification

• reasonable financial transaction costs

• risk management support from public sector

Remember: People on the ground are in charge.