MarieHagaCharlotteLusty
CropTrustUpdateCGIARSystemManagementBoard
12December2017
1. Genebank Platformupdates2. Endowmentandfundraising3. CGIAR/CropTrustcooperation
Agenda
Genebank Platform
Genebank status
0
10
20
30
40
50
60
70
80
90
100
Availability Safetyduplication- seed Safetyduplication- clonal
%Accessio
ns
2012
2013
2014
2015
2016
90%target
Pursuingcostefficiencyandeffectiveuse
• Costingreview2018-2020• Efficiencies(e.g.automatedseedsorting,germinationtesting)
• Strategiccuration• Rationalization(e.g.foragescollectionsILRI-CIAT)• QualityManagementSystems• DigitalObjectIdentifiers(DOIs)
IntegrationwithotherPlatformsandCRPs
• Genebank staffonEIBModuleAdvisoryCommittees• ParticipationinBigDataconvention• PolicyModule&CGIARGeneticresourcesworkinggroup
• CollaborationwithCCAFSatCOP23• JointnewsletterwithFutureHarvest• HostingWheatCRPleaderinCropTrustoffices
Someissues
• Changeingenebanks’leadership• Majorpushonimpactandcommunications(inresponsetoIEAreport)
• AdoptionofDOIsbygermplasm usersandpartners• Genotypingofgenebank accessions• Datadatadata
Governanceandmanagement
Article 15 group
Genebank Managers
ConservationModule
UseModule
PolicyModule
GHUs
GE
NE
BA
NK
P
LATF
OR
MCrop Trust
Executive Board
Crop Trust Executive Director
CGIAR System Management Board
and Center DGs
PlatformManagement Team
Independent Advisory Committee
PlatformCoordinator
advisory
CropTrustworkingwiththeCGIAR
• CWRprojectssupportingCGIARCentres• Collecting• Pre-breeding• Multiplication
• JapanesefundedprojectwithAfricaRice• FoodForever• Supportforfund-raising(e.g.CIATgenebank)• SvalbardGlobalSeedVault
10
ThreePillarstoaGlobalSystem
InternationalGenebanks
Keynational®ionalcollections
SvalbardGlobalSeedVault
11
Worldwideresponsetothecrisisafflictingthebiologicalbasisofourfoodsupplyandnutrition.
TheRationalefortheEndowmentFund
12
• Designedtokeepitscapitalintactwithinvestmentincomegoingtosupportcropcollectionsacrosstheworld
• Long-termfinancingwhileonlyrequiringaonetimecontributionfromdonors
• ResponsiblyInvested
StructureoftheEndowmentFund
12
13
USD34million peryearrequireanEndowmentFundofUSD850million–ofwhich18.5millionperyearisforthe“Article15”collectionsoraboutUSD500millionoftheFund
CostoftheGlobalSystem
13
Endowmentfund
-
50
100
150
200
250
300
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Millions
Estimatedvalueasat11Dec.2017includes$58.1m(€50m)loan
PortfolioBookValuevsCumulativeContributions
Bookvalue cummulativecontribution
$25.2mwithdrawn&usedtosupportGenebank platform&Operations
Endowmentfund
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EndowmentReturnvs Incomewithdrawal
Historicalendowmentreturns IncomeWithdrawal
Donorenvironment
Ourpointofdeparture:
• ODAstagnatinginmanycountries
• Increasedsharetoemergencies
• Increasedfocusonshortterm(political)prioritiesatthecostoflongtermgoals
• Donorsarepoolingfundsinbroadinitiatives
• Onlysomuchgovernmentscan,orshould,do
• Privatesectorneedstobeinvolvedbeyondtalk
– s
Diversifiedfundingstrategy
Governmentgrantstotheendowmentarestillourpreferredwayoffunding• Furtherdialoguewithcurrentandnewdonorsissupportedbyannualconsultations
• Concessionalloans- atemporaryincreaseintheendowment• Asecond-bestsolutiontogenerateincomeupfrontuntilfurthergrantscanbesourced• KfW Euro50millionloanhasbeenaccepted
• Concessional- butnotenough• Germany/BMZhascommittedEuro4,15millionandtheNetherlandsUSD0,325toreduceinterestrate
• Noplansforfurtherloans
Fundingstrategycont.
• GreenClimateFundprojectunderdevelopmentwithKfW fornational
collectionstrategy
• ProjectforCGIARcollectionsmightbeapossibility
Fundingstrategycont.
Crop-basedfundraisingisbeingpilotedtomobilizeprivateresources
• Aimistotieconservers,researchers,producersandotherusersinthecommoditychainintothedevelopmentofaglobalcrop-basedconservationstrategyandthenseekfunding
• ExampleCoffee• StrategydevelopedwithWorldCoffeeResearch• Fundraisingisstartedwithsupportofconsultants
• Next:TeaandApples• InvitationtoanyoftheCGIARcenterstotargetacrop
Fundingstrategycont.
• FundingforannualoperationalexpendituresoftheCropTrustSecretariat• Donorfundinghelpsprotecttheendowmentduringitsgrowthphase
• InvestmentSharingFacilitytobere-launched• NewESG-compliantequitymutualfundtobemarketedfromJan2018• “Donatingshareclassvehicle”approvedfromJan2018• AnnualdividendincomechanneledtotheCropTrustFoundationgGmbH,ournewGermancharitablecorporation• Germandonorsmaybenefitfromincometaxdeduction• Taxdeductioncouldbereplicatedinothercountries(takesworkandabitofmoney
Fundingstrategycont.
FoodSecurityBondcouldraiseprivatecapitalfornationalgenebanks• Wouldsupportprojectsforupgradingofgenebanks withhighpriorityforagri-foodindustry
• Stillattheexploratoryphase• Willstartdiscussionwithselectgovernments
• USFarmBill2018-2022• CurrentlyCropTrustisincludedinUSFarmBillatUSD60m2014-2018withacaponthetotalUScontributionstotheFundat25%oftotalpaidincontributions
• CropTrustismeetingwithCongressionalrepresentativesonAgriculturalCommitteetoraiseawarenessabouttheCropTrustandtoseektohavethecapraisedto33.3%inlinewithotherinternationalorganizations
CommitmenttoGenebank Platform
6.8
9.1
11.513.4
15.018.5
24.921.1 18.8
15.3 13.2
6.5
0
5
10
15
20
25
30
35
2017 2018 2019 2020 2021 2022
USD
Million
CGIARContribu9on
CropTrustContribu9on
CommitmenttoGenebank Platform
FundingforannualoperatingcostsofCGIARGenebanks• Wearecommittedtoprovideanannuallyrisingshareoftheiroperatingcostsfromtheendowment+bilateralfunding• Endowmentdoesnotyetcoverallcommitmentsandannualdonorfundingisrequired• CoordinationwithbilateraldonorstoCGgenebanks isrequired• 2017:anextremelyunfortunateprocesswiththeNetherlands
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Finalremarks
ExcellentprogressandcollaborationintheGenebank Platform
CGIAR-CropTrustinteractionatahigherlevel:AformalizedagreementbetweentheCGIARandtheCropTrusttobedeveloped,focusingon:
– Informationflowbetweentwoverydifferentgovernancemodels– ReportinglinesfromCropTrusttoSMO,SMB,GeneralAssemblyandSystem
Council– Responsibilitiesandrisks– Collaborationonfinanceissues,fundraisingandcommunication
Thankyou