Jacinto Coello, Reducing deforestation in commodity supply chains, UNEP Finance Initiative

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E N G A G I N G T H E P R I V A T E S E C T O R
F O R G R E E N G R O W T H A N D C L I M A T E
C H A N G E
Partnering with the private sector to SFM and enhance natural capital
Paris, France
1st March 2016

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CONTENT
About UNEP Finance Initiative
An approach for promoting sustainable landscapes
• Enabling policy frameworks – fiscal policy
• Engaging the private sector in REDD+ and
sustainable landscapes

3. ABOUT UNEP FINANCE INITIATIVE
• Unique partnership between the UN and a global network of over 200
banks, insurers and investors from 51 countries
• Established on the basis of a shared conviction that the financial sector
has a vital role to play in supporting sustainable development
• UNEP FI is the ‘connective tissue’ between financial institutions, the
United Nations and policy makers
• Key implementing partner on private sector engagement for the UN-
REDD Programme – focus on removing deforestation from commodity
and financial supply chains
“Changing Finance, Financing Change”

4. FISCAL INCENTIVES IN THE CONTEXT OF
SUSTAINABLE LANDSCAPE MANAGEMENT
Source: ODI, 2014
• Subsidies for agriculture are orders of
magnitude greater than finance for sustainable
rural development
• Fiscal & policy incentives supporting
agricultural development were not designed
with environmental management in mind
• Enabling environment crucial for REDD+, supply
chain sustainability, and zero net deforestation
commitments
• Consider revisions to or redesign of fiscal
incentive structures in the context of relevant
development plans
Getting the enabling environment - Incentive structures are crucial to send
the right signals to the private sector

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ENGAGING THE PRIVATE SECTOR IN REDD+
AND SUSTAINABLE LANDSCAPES
• Enabling conditions - Public-private sector dialogues to identify policy, financial,
and institutional bottlenecks hampering the adoption of GAP; Interventions that
can mobilize private finance.
• Project economics - A business case for “zero-deforestation” commodity
production – Tools to account for deforestation related risks and companies’
strategies to address risks and compensate for potential lost income.
• Access to finance – increasing the
availability of long-term finance for
agricultural smallholders; DIBs and
other RBF instruments; scoping of
investment opportunities and
mapping of national financial
sectors.

6. T H A N K Y O U
Jacinto Coello
(jacinto.coello@unep.org)