financing strategies for integrated landscape management - s. shames at prisma 2014
DESCRIPTION
Presentation at the International Forum on Landscape restoration, governance and climate change in El Salvador. Seth presents the in press results of a major study on the financing and investment landscape for sustainable agriculture and landscape management, including climate funds, carbon credits, green investment funds, institutional investors, multilateral lending agencies and more.TRANSCRIPT
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Financing strategies for integrated landscape managementSeth ShamesEcoAgriculture Partners
International Forum onLandscape restoration, governance and climate change
San Salvador, El SalvadorFebruary 17-18, 2014
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Elements of integrated landscape management1. Shared or agreed management objectives encompass multiple benefits (the full
range of goods and services needed) from the landscape.
2. Field, farm and forest practices are designed to contribute to multiple objectives including human wellbeing, food and fiber production, climate change mitigation, and conservation of biodiversity and ecosystem services.
3. Ecological, social, and economic interactions among different parts of the landscape are managed to realize positive synergies among interests and actors or to mitigate negative trade-offs.
4. Collaborative, community-engaged processes for dialogue, planning, negotiating and monitoring decisions are in place.
5. Markets and public policies are shaped to achieve the diverse set of landscape objectives and institutional requirements.
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Climate-smart agricultural landscapes: Food, livelihoods, mitigation, resilience, ecosystems
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Landscapes for People, Food and Nature Initiative
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Value of ILM vs non-integrated alternativesPublic and private benefits
●Efficiencies in public sector planning , inter-agency and spatial
●Diversified revenue streams provide economic resilience in the landscape
●Reducing supply chain risk
●Access to new markets including certified commodities and PES
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ILM finance study objectives
●Identify mechanisms and strategies used by ILIs to access finance
●Identify mechanisms and strategies of financial institutions to finance and benefit from ILM
●Provide recommendations and mobilize dialogue with financing institutions to improve ILM finance
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Asset investment and enabling investment
Enabling Investments
Funding the generation of the incentive to invest.
Often by FIs with no expectation of financial
reward.
Asset Investments
Finance for an activity that creates tangible value.
Mostly through loans and equity investments.
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Motivations of finance institutions
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Scoping Finance Institutions and Financing Mechanisms for ILM
> 200 Institutions; > 250 Mechanisms; Wide range of ILM investment
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Finance institution case studies
Investment fund managers Althelia, Moringa, Ecoenterprise fund,
Commercial bank Rabobank
National Bank Brazil Rural Credit
Institutional investor TIAA CREF
Company Bunge Environmental Markets, Nestle
Multilateral public sector Global Environment Facility, WB BioCarbon Fund
Bilateral public sector NORAD NICFI, USAID
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Types of ILIs by dominant actor
•Examples: Mt. Kenya East Pilot Project (now Upper Tana), Kenya; Gishwati watershed, Rwanda; Loess Plateau, China
•Types of finance: Multi-lateral and bi-lateral funds, DFIs, domestic funds
National government-led, large multi-lateral donors
•Examples: Lombok/British American Tobacco, Indonesia; Atlantic Forest Restoration PACT, Brazil•Types of finance: Multi-lateral, bi-lateral, banks, commodity roundtable investments, private foundations, labour
and in-kind contributions, PES
Regional initiatives and platforms
• Example: ASPROINCA, Colombia• Types of finance: Labour and in-kind, private foundation, PES, government (national,
regional or local)
Traditional, local or community-led
•Eamples: Namaqualand, South Africa; Bacia hidrográfica do Ribeirão do Boi, Brazil•Types of finance: Private foundation, Multi-lateral, domestic development banks, government, community
contributions, PES, labour and in-kind
NGO-led, civil society organizations
• Examples: Guyaki Yerba Mate; Sustainable Cattle in Practice - pilot phase, Brazilian Round Table on Sustainable Livestock
• Types of finance: Supply chain investments, private foundations, in-kind, PES
Private sector-led (small-scale farmers to agri-
business, forestry, mining)
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Landscape initiative case studies●Atlantic Rainforest, Brazil, Espírito Santo
Regional platform: Atlantic Forest PACT
●Lake Naivasha, Kenya Government-led: Imarisha Naivasha
●Namaqualand, South Africa Conservation International
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Scoping results: Mapping the flow of ILM finance
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Examples of public and private finance mechanisms for ILM
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Challenges of scale: time horizon, investment size, risk appetite
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ILM enabling investment challenges and innovations
●Public sector institutions are siloed
●ILI start-up and coordination is underfunded
●Enabling investment is not sufficiently reducing risk for private investors
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Recommendations
● Increase investment in enabling conditions for ILM
●Continue to clarify and communicate the ILM business case
● Reduce risk for private sector investment with public policy
● Reduce risk for private sector investment with innovative financial mechanisms
●Develop partnerships between financial institutions and landscape stakeholder groups
● Integrate sectoral planning at the landscape scale for green growth and climate change investments