Jennifer morris


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CI & V Ventures

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  • CELB Strategy & Key Highlights
  • 14 investors-
  • CELB Strategy & Key Highlights
  • $2 million repaid to investors.
  • So, CI has been pursuing these opportunities over the past 7 years, and the portfolio of 25 projects in 14 countries will deliver over 100M tons of carbon credits. The question is how can the group gathered here work with CI to expand the global portfolio of forest related carbon projects by 5 to 10 times? What are some of the lessons learned? What is the scale of financing required? What have companies done already that are blazing the paths like Dell, Marriott, BofA/Merrill Lynch and others? What innovations must be pursued to meet the immediate timing objectives particularly as policy is on a fasttrack?
  • CELB Strategy & Key Highlights
  • CELB Strategy & Key Highlights Experience in advance of regulation + Lower compliance costs in regulated markets Meet multiple corporate objectives (climate, supporting communities, sust devel, biod) Early actors & differentiate  Demonstrate leadership (+ set emerging rules of game) Enhance reputation and build brand capital & goodwill (compelling message – multiple-benefits (social & environ) Strengthen govt relations (local govts are very supportive of activities that bring sust devel benefits + Seat at policy table  regulators seek input from progressive biz leaders)
  • Jennifer morris

    1. 1. Biodiversity and Ecosystem Investments November 11 th , 2009
    2. 2. <ul><li>CI Overview </li></ul><ul><li>Ecosystem Finance </li></ul><ul><li>Verde Ventures </li></ul><ul><li>Carbon Fund </li></ul><ul><li>New Horizons </li></ul>Summary
    3. 3. CI has field offices in over 40 countries spanning four continents. Our staff of over 1000 employees is supported by a network of over 1,500 local partners around the globe. about CI
    4. 4. vision We imagine a healthy prosperous world in which societies are forever committed to caring for and valuing nature for the long-term benefit of people and all life on Earth. mission Building upon a strong foundation of science, partnership and field demonstration, CI empowers societies to responsibly and sustainably care for nature for the well-being of humanity.
    5. 5. Ecosystem Finance Division (EFD)
    6. 6. Our Funds <ul><ul><ul><ul><li>Critical Ecosystem Partnership Fund (CEPF) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Global Conservation Fund (GCF) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Conservation Stewards Program (CSP) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Verde Ventures </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Conservation and Community Carbon Fund (CCCF) </li></ul></ul></ul></ul>
    7. 7. Our Focus <ul><li>Protected Areas </li></ul><ul><li>Rural Livelihoods </li></ul><ul><li>Long-term Financing </li></ul><ul><li>Financial management </li></ul><ul><li>PES Financing </li></ul>
    8. 8. Summary Results <ul><li>Total granted/invested to date: USD $211 million </li></ul><ul><li>1,500 partners supported in over 60 countries </li></ul><ul><li>>89 million hectares of globally significant land protected benefitting critical ecosystems and communities </li></ul><ul><li>> $254 M in funding leveraged </li></ul><ul><li>> 140,000 people directly impacted </li></ul><ul><li>Significant policy impacts in 11 countries </li></ul>
    9. 9. EFD Investors <ul><li>Total Capital: $338M (Grants (G), Loans (L), Loan Guarantees (LG)) </li></ul><ul><li>Multilateral/Bilateral </li></ul><ul><li>World Bank (G) </li></ul><ul><li>International Finance Corporation (L&G) </li></ul><ul><li>Global Environment Facility (G) </li></ul><ul><li>Overseas Private Investment Facility (L) </li></ul><ul><li>Government of Japan (G) </li></ul><ul><li>French Aid Development Agency (L,G&LG) </li></ul><ul><li>Foundations </li></ul><ul><li>- Gordon and Betty Moore Foundation (G) </li></ul><ul><li>- MacArthur Foundation (G) </li></ul><ul><li>Mulago Foundation (G) </li></ul><ul><li>United Nations Foundation (G&LG) </li></ul><ul><li>Conservation International (G-CEPF) </li></ul><ul><li>Private Sector </li></ul><ul><li>Starbucks (LG, L & G) - Daiwa (G) </li></ul><ul><li>Disney (G) </li></ul><ul><li>Dell (G) </li></ul>
    10. 10. Investors’ Interest <ul><li>Historical </li></ul><ul><li>Philanthropic </li></ul><ul><li>Marketing Benefit </li></ul><ul><li>Focus on non-CI partners </li></ul><ul><li>Investment Infrastructure </li></ul><ul><li>High Leverage (Debt Swap) </li></ul><ul><li>Increasingly </li></ul><ul><li>Supply Chain Benefit </li></ul><ul><li>SRI/TBL (with $ return) </li></ul><ul><li>Carbon Credits </li></ul>
    11. 11. Verde Ventures (VV)
    12. 12. Verde Ventures <ul><li>Verde Ventures invests in small businesses that contribute to conservation and communities in Conservation International's global priority areas. </li></ul>
    13. 13. Why Verde Ventures? <ul><li>Conservation-based employment is essential to provide economic incentives for conservation </li></ul><ul><li>The small business sector is a key partner in the intersection between human welfare and conservation </li></ul><ul><li>Lack of available, affordable capital to ensure the sustainability of the sector </li></ul>
    14. 14. Core Products <ul><li>Loans: US$30,000 to $500,000 (average: $125,000) </li></ul><ul><li>Use of Loan funds: Infrastructure, working capital, trade finance </li></ul><ul><li>Typical Deal Structure: Senior or subordinated secured debt for 3-5 years. Increasingly debt + quasi-equity. </li></ul><ul><li>Financial IRR fund target: 8% </li></ul><ul><li>Strategic grants for technical assistance and environmental and socio-economic monitoring </li></ul>
    15. 15. Current Investors <ul><li>International Finance Corporation </li></ul><ul><li>Overseas Private Investment Corporation </li></ul><ul><li>Starbucks Coffee Company </li></ul><ul><li>French Aid Development Agency </li></ul>
    16. 16. VV Summary Results <ul><li>$13.4 million in 73 loans,13 countries </li></ul><ul><li>> 400,000 hectares directly impacted </li></ul><ul><li>42,000 people employed and/or benefiting </li></ul><ul><li>$32 million in new sales generated by invested companies </li></ul><ul><li>95% repayment rate </li></ul>
    17. 17. Supply Chain--Coffee <ul><li>$ 10.5 million invested in 23 sustainable coffee suppliers in 5 countries </li></ul><ul><li>100% trade finance secured on contracts </li></ul><ul><li>Help Starbucks achieve </li></ul><ul><li>public commitments through financing support to their supply chain and other coffee growers. </li></ul>
    18. 18. VV Risk Management <ul><li>Thorough due diligence and oversight </li></ul><ul><li>Use of CI local networks in 40 countries </li></ul><ul><li>Invest with other lenders (also reduces costs) </li></ul><ul><li>Invest only in US$ and work with companies receiving hard currency revenues </li></ul><ul><li>Repayment terms of not more than 6 years </li></ul><ul><li>At least 1:1 collateral secured under local law </li></ul><ul><li>Loan Loss Reserve Requirement averaging 15% of outstanding capital </li></ul>
    19. 19. Conservation and Community Carbon Fund (CCCF)
    20. 20. 25 Current high biodiversity forest-carbon projects producing estimated > 100 million tCO 2 over 30 years. Project development and community capacity are needed to scale-up 5-10X over the next 5 years Pro jects in implementation Projects in development
    21. 21. CCCF Overview <ul><li>The CCCF supports the design, start-up and implementation of forest-based carbon projects that counteract global warming and deliver biodiversity and local community benefits . </li></ul>
    22. 22. CCCF Core Products <ul><li>Carbon project development funding </li></ul><ul><li>Technical assistance for project development (carbon baseline, PDDs) </li></ul><ul><li>Voluntary carbon credit agreements </li></ul><ul><li>Support to indigenous peoples and forest dependent communities to increase their access to carbon markets. </li></ul>
    23. 23. Progress <ul><li>6 REDD projects funded or in pipeline ( Madagascar, Ecuador, Brazil, Guatemala, Peru, DRC ) </li></ul><ul><li>October 2009: Signed significant REDD deal with Disney for $7 million in pre-financing CI project in Peru, DRC and third country tbd. </li></ul><ul><li>Benefits: </li></ul><ul><li>Disney gets excellent marketing benefit and eventual retirement of 900,000 tons </li></ul><ul><li>CI gets much needed carbon project financing for 3 projects. </li></ul>
    24. 24. Challenges <ul><ul><ul><ul><li>Pre-financing may create low-pricing scenario for project principals. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Without flexible pooled funding, project risk is higher as funds are raised for specific projects. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Real market growth in REDD dependent on policy arena. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Significant up-front capital needed for PDD development and capacity building. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Loan/equity financing structures for REDD would help to ensure sufficient financing for building the REDD asset class. </li></ul></ul></ul></ul>
    25. 25. Expanding Opportunities <ul><li>Expand forest-carbon financing 10x </li></ul><ul><li>Replicate PES-market models- with a focus on freshwater </li></ul><ul><li>VV expansion with initial $10 million in new capital- focus on Africa </li></ul><ul><li>Support monetization of biodiversity assets for local and global benefit. </li></ul>
    26. 26. Thank You! <ul><li>Jennifer Morris </li></ul><ul><li>[email_address] </li></ul>