Solidaridad Central America has launched the Mesoamerican Landscape Accelerator, a design process which helps speed and scale identification and financing of necessary investments for sustainable agriculture and landscape restoration. This session will present Solidaridad’s experience piloting the accelerator in Honduras. First, we will highlight the context of the landscape programme in Honduras, secondly we shed light on the design process and how it results in an investment portfolio and lastly, we will showcase 1-3 investment opportunities to take a deep dive together with the audience.

1. 1
MESOAMERICAN LANDSCAPE
ACCELERATOR
ENHANCING THE SUSTAINABILITY OF
COMMODITY SUPPLY CHAINS ACROSS
MESOAMERICA

2. From experts in international commodities:
coffee, cocoa, palm oil, sugar & livestock
Innovation areas:
a. Landscape & Climate
b. Impact investment
c. Gender and social inclusion
d. Digital Technology
To
GLF Bonn 2018 - p2
From farm to landsdcape

3. “Reverse degradation & negative
impacts from agricultural production
by creating economic opportunities
aligned with ecological regeneration &
affirmative social impacts”
GLF Bonn 2018 - p3
Sustainable IMPACT STATEMENT

4. GLF Bonn 2018 - p4
PARTICIPATORY ANALYSIS &
INTERVENTION

5. The Mesoamerican Landscape Accelerator
SCENARIO MODELLING & SDGs (PBL)
Business as
usual is not
a viable
option
GLF Bonn 2018 - p5

6. Local Government
- SDG Commitments
- Stability
- Revenue
- Reduced aid
dependency
Global Community
- Avoided deforestation
- Carbon sequestration
- Reduced aid
US & Mexico
- Reduces migration
Corporations
- Supply chain resilience
- Increased competitiveness
- Reduced reputational risk
- Public commitments (zero
deforestation)
The Mesoamerican Landscape Accelerator
MULTIPLE BENEFITS
GLF Bonn 2018 - p6

7. Issues:
● Deforestation
● Soil loss
● Water & food
security
● Pollution of water
sources
● Methane release
● Reef destruction
● Climate change
● Emigration
23,000 km2
3.1 million people
Regional GDP
$9 bn (60%)!
The Mesoamerican Landscape Accelerator
OUR FIRST LANDSCAPE:
NORTHERN HONDURAS
GLF Bonn 2018 - p7

8. CONSERVATION
• BIOLOGICAL
MONITORING IN
PALM OIL
PLANTATION, HCVA,
RIPARIANS ZONES
AND REFUGEES.
• BIOLOGICAL
CONNECTIVITY
PLANTATIONS WITH
PROTECTED AREAS
• REMEDIATION AND
COMPENSATION

9. GLF Bonn 2018 - p9
RAMBUTANPALM BASED
RENEWABLE ENERGY
(BIOMAS & BIOGAS)
COCOA
AGROFORESTRY
Thinking
Investments
@ the
Landscape
level
Making
projects
investable

10. Project size / Investment need:
$4.8m
8-10 year payback
6-8% interest
2 years grace
COCOA PROCESSING &
QUALITY FACILITIES
RENEWABLE ENERGY
(PALM WASTE)
SUSTAINABLE COCOA
AGROFORESTRY
Project size: $48m
Investment need: $30m
8 year payback
5-7% interest
1 year grace
Project size: $8m
Investment need: $3.7m
8-10 year payback
6-8% interest
2 year grace
THE FINANCING OPPORTUNITY
READY FOR INVESTMENT
GLF Bonn 2018 - p10

11. Goal Sustainable Cocoa Agroforestry
This investment is directed to small farmers and other land owners linked to a cocoa processing plant
which will develop cocoa agri-business.
The Opportunity: Business expansion by setting up 2,000 ha of cocoa as agroforestry systems which will benefit
>100 small, medium and agro-industry level land owners
The Larger Opportunity: Launching Honduran cocoa on the world stage, leading to a potential investment of
$75m to establish 20,000ha of cocoa in agroforestry systems with smallholders, to take advantage of the growing
cocoa market.
Innovation
■ Bringing digital technology across the supply chain (climate information, decision making,
mapping, delivery of technical assistance to farmers, guarantee traceability and certification standards,
others).
■ Capacity building through more permanent technical assistance; pulling up >6,000 small farmers
■ Landscape restoration with cocoa agroforestry leading to potential Carbon Credits
Impact (over 10 years)
■ Increased revenues: i) managed cocoa agroforestry plantations; ii) improved yields and quality; iii) better
market strategies and scales; and iv) Carbon Credits
■ Market: Doubling Honduras’ current national output of cocoa (including sales from own farm);
contributing to access to sustainable cocoa markets for 3,500 producers
■ Social: increase income & employment (>650 new jobs); improved food security; creation of a social fund
for small scale farmers
■ Landscape: +2,000 ha land under sustainable management; contribution to a natural corridor of over
30,000ha, guaranteeing biodiversity conservation through protection of over 30 natural species.
COCOA PRODUCTION
& PROCESSING
$3.7 million Investment
10 year payback
6-8% interest
2 years grace
#1
>100 farmers
GLF Bonn 2018 - p11

12. COCOA PROCESSING
FACILITIES FOR BETTER
QUALITY
INVEST: $4.8 million
8-10 year payback
6-8% interest
2 year grace
#2
COAGRICSAL
Goal Scaling cocoa processing & quality for niche markets
The Enterprise: COAGRICSAL - a market-driven cooperative, the largest cocoa producer in Honduras, with
2,000 members.
Opportunity: Support 500 smallholders to double COAGRCSAL’s output by establishing additional 1,000 ha of
cocoa farms and acquire processing infrastructure and equipment to open up access to new high-end markets
including bean-to-bar, single-origin and women’s cocoa.
The Larger Opportunity: Launching Honduran cocoa on the world stage, leading to a potential investment of
$75m to establish 20,000ha of cocoa with smallholders, to take advantage of the growing cocoa market.
Innovation
■ Cocoa processing & quality plant and lab provides training and services to artisans across Honduras
and Central America and offers a new service to carry out chemical analysis of cocoa and other crops as a
necessary screening for export markets.
■ Capacity building of smallholder cocoa sector based on a product differentiation strategy.
■ Incorporating digital technology across the company’s supply chain to improve technical assistance to
farmers, guarantee traceability and certification standards and reduce underwriting costs.
Impact (over 10 years)
■ Increased income from: i) improved productivity; ii) improved quality; iii) Nich markets; iv) Carbon Credits
for the new plantations; and v) precious woods from agroforestry systems
■ Social: increased income & employment (500 new jobs); increased opportunities for women and youth
■ Landscape: 1,000ha under sustainable management, with carbon footprint measured linking to
ecotourism routes.
GLF Bonn 2018 - p12

13. Goal Renewable Energy from Palm Oil waste (Biogas & Biomass)
The Enterprise: 15 PALM OIL producers / agroindustries (>500 palm oil producers)
Investment Opportunity: increase competitivity of Palm Oil sector with value added from RE potential
Larger Opportunity – Honduras: A potential investment of $48.5 Million for a portfolio of 8 to 15 companies.
Potential for expansion to other countries in Central America, Mexico & Colombia (1,120,000 ha of PO).
Innovation:
■ Beyond RSPO-certification commitments, including zero deforestation and a commitment to biodiversity
conservation, differentiating Honduran palm oil as sustainable and guaranteeing access to EU markets
■ A new alliance between the palm oil sector, electricity sector, marine scientists and tourist
companies working together towards .
Impact (over 8 years):
■ Additional Income from Renewable Energy through Power Purchase Agreements
■ Income from generation of VERs or RECs (Renewable Energy Certificates)
■ Market access ensured through RSPO certification and zero deforestation commitments
■ Social: increased income & employment for families of small scale growers
■ Landscape: reduced effluent from PO mills onto watersheds; reduced carbon footprint through reduction
in GHG (CH4); biodiversity conservation, pollution avoidance to water bodies, mangrove forest and
Mesoamerican Reef through contained effluent run-off
WASTE TO
RENEWABLE ENERGY
INVEST.: 48.5 Million USD
8 year payback
5 -7% interest
1 year grace
#3
Palm Oil
agroindustry
GLF Bonn 2018 - p13

14. Initial
Honduran
portfolio
$48.5 million
8-10 year payback
5-7% interest
Potential
Honduran
portfolio
$100+
million
Potential
Mesoamerican
portfolio
$500
million
Potential global
Portfolio
Mesoamerica +
Colombia
845 Mw
IF WE CAN
SOLVE THIS
WE UNLOCK
THIS
Ecologically
regenerative economic
development in 8
countries
We will leverage an additional $500m+ of public funding and private sector
investment
The Financing Opportunity
POTENTIAL to Programmatic Approach
GLF Bonn 2018 - p14

15. Guatemala
>700,000 ha
Honduras
1,3 million
ha
Nicaragua
1,3 million
ha
Potential
Programme
of Forestry
Projects
>3 million
hectares
CDM eligible
land
WE UNLOCK
THIS
The Financing Opportunity
POTENTIAL for Programmatic
Approach - Forestry
GLF Bonn 2018 - p15

16. ■ Neutral convener and facilitator of landscape & commodity
networks
■ Deal sourcing
■ Enterprise identification & filtering
■ Targeted investment-readiness support
■ Matchmaking service
■ Deal structuring support
■ Minority investor in specific deals?
■ Post-investment services
■ TA to enterprises
■ Digital technology solutions for decision-making across
the value chain
■ Measuring investment performance (M&E)
■ Learning & Dissemination
SOLIDARIDAD ROLE
GLF Bonn 2018 - p16

17. KEY PARTNERS
Leveraging partnerships and multi-
stakeholder networks in Honduras
■ MULTILATERAL BANKS
■ INTERNATIONAL NGO
■ Ministries
■ Municipal governments
■ Farmers associations & Coops.
■ PBL, PROSPERO
GLF Bonn 2018 - p17

18. JOIN US FOR
CHANGE
THAT MATTERS

19. GLF, Bonn, 2018 - p19
SOLIDARIDAD MESOAMERICA
TEAM MEMBERS for future contacts
Omar Palacios
Honduran Country Lead
Over 20 years’ experience, the last 6
leading Solidaridad’s Honduras
programme, convening leaders from
business, government and civil society
to develop joint solutions for
development challenges.
omar.palacios@solidaridadnetw
ork.org
Al Cunningham
Mesoamerican Impact
Investment Specialist
Over 15 years’ international
development experience, supporting
agribusiness in Central America to
implement sustainable growth plans
through access to finance.
al@solidaridadnetwork.org
Michaelyn Baur
Managing Director
Over 20 years of experience in
sustainable agriculture, international
development and sustainable supply
chains in Mesoamerica.
Leads strategy and innovation
development for the Mesoamerican
Landscape Accelerator.
michaelyn@solidaridadnetwork.org