This presentation by Profor's Tuukka Castén was given at a session titled "What can Public and Private Resources Achieve Together?" at the Global Landscapes Forum: The Investment Case on June 10, 2015. For more, please visit http://www.landscapes.org/london/
3. 3
Private Plantation Investment in
Latin America (2011)
0
200
400
600
800
1,000
1,200
1,400
Brazil Chile Uruguay Colombia Argentina
US$Million
4. 4
Drivers of forest investments
Institutional investors:
Risk-adjusted return expectations *
Quality of business environment **
Political and economic stability **
Industrial investors:
Access to large and growing markets *
Availability and price of land, tenure *
Physical growing conditions
6. 6
Partnership on…
supporting and conducive environment for
private sector
private firms to provide services
(“traditional” PPP-model)
joint financing by private and public
(bilateral or multilateral) entities.
7. 7
Cases
What an investor expects from the public
sector, case: Dasos
Case: BioCarbon Fund
Case: Burundi Coffee
Case: Liberia biodiversity offsets
8. 8
Questions for the roadmap
a) Downsizing the Government and getting it out of the
way. Or should we rather talk about rightsizing?
b) What are the main misconceptions about private
investments in forests and landscapes and how to
correct them?
c) What are the three key actions to be taken governments
with their multilateral development partners: is there a
need for partnerships in this field
d) There is often talk that actually we are not lacking
financing as such, but good bankable projects. Is this
correct?
Private greenfield investments into processing some 6.8 billion USD
Plantation establishment some 1.7 – 1.8 billion USD
Together: some 8.5 billion USD
As a reference Forestry ODA 0.8 billion USD, i.e. less than 1/10th of private investments
Estimated need for plantation investments to meet the round wood supply-demand gap of some 700 million m3 / year in 2030 is USD 4-5 billion / year -> the present rate of plantation investments would need to be increased some 2.5 times .