Rosa Lemos de Sa

1. How to mobilize restoration finance
to support Brazil´s NDC target
Foto: Marizilda Cruppe
Rosa Lemos de Sá
SER – August 2017

2. Financing restoration
How much?
Nationally Determined Contribution:
- Restore 12 million hectares of forest by 2030
US$ 0.7 to 1.2
billion year, for 14
years
US$ 10 to 16.5 Billion
Coalizão Brasil Clima, Florestas e Agricultura / Instituto Escolhas, 2016

3. How to pay
the bill?
Nationally Determined Contribution:
- Restore 12 million hectares of forest by 2030
Public Private
Budget
Non-budget
International
National
Voluntary
CompensationMarket
Economic
Instruments
PES
Credit Certification
Fiscal
incentives
Equity
Impact
investment
Subsidies
Financing restoration

4. Volume:
•Amount of resources
Accessibility:
•Efforts necessary to acquire
Flexibility:
•Objectives and priorities for
use
Analyses of Scenarios
Regional
characteristics:
•Context:
• Economic
• Environmental
• Political
• Legal
•Development Model
•Capacity to innovate
and liaison
Financing restoration

5. Environmental Markets (CRA, PES, REDD+)
Model
Social and
Environmental returns
Conservation Non-timber
management
Forest
management
PES Large scale
Sustainable
use
Income
generation
Donations
EquitySCR
Source analyses will determine financial model
Financial returnEconomic return
Impact investment
Legal obligations
Financing restoration

6. Source A
Source B
Source C
Source D
Demand
0
10
20
30
40
50
60
70
80
90
T1 T2 T3 T4 T5
Gap
Finance Strategy
Source A
Source B
Source C
Source D
Source E
Source F
Source G Demand
0
10
20
30
40
50
60
70
80
90
T1 T2 T3 T4 T5
Financing restoration

7. Financial Mechanisms
Sinking Funds
Revolving Funds
Endowment
Funds
AEstratégiadeveconsiderar
• Objective
• Initial amount
• Source
• Perspective of new moneys
• Spending capacity
Financing restoration

8. Source of funding
Costs
• Restoration
• Suppliers
• Logistics
• Maintenance
• Opportunity
Political environment
Market and profits
Incentives
• Fiscal
• Tributaries
• Credits
Obligations
Politics
Institutional capacity
Natural environment
Supporters and non-supporters
Finance is only one of the
conditions to make it
viable, many other
aspects need to be
analyzed
Financing restoration

9. New York
Declaration on
Forests
I. 20x20: a support platform for national restoration programs
Technical Partners
SUPPORT
Member countries and regional programs
Financial Partners
Argentina
Belize
Brazil
Chile
Colombia
Costa Rica
Ecuador
El Salvador
Guatemala
Honduras
Mexico
Nicaragua
Panama
Paraguay
(Itaipu authority)
Peru
Regional programs:
ABC, Bosques Modelo,
Conservación
Patagónica

10. FINANCIAL ARCHITECTURE OF 20X20
+ local Banks
Risk Capital
$1.55 billion already earmarked
Debt finance
5X equity
Partial Risk Guarantee
$220 million
(15 million already assured)
Investment Readiness Fund
$30 million
Working Capital
$200 million

11. Thank you!
Foto: Marizilda Cruppe