World Bank Forest Carbon Funds and Public Private Partnerships – World Bank Group
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This presentation by The World Bank Group was given at a session titled "World Bank Forest Carbon Funds and Public Private Partnerships" at the Global Landscapes Forum: The Investment Case on June 10, 2015. For more, please visit http://www.landscapes.org/london/
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World Bank Forest Carbon Funds and Public Private Partnerships – World Bank Group
- 1. Strictly Confidential © 2015 Strictly Confidential © 2013 World Bank Forest Climate Funds Public- Private Partnerships June 10, 2015 Global Landscapes Forum Investment Case, London
- 2. Strictly Confidential © 2015 World Bank Forest Carbon Funds ($1.3 billion) Technical Assistance $100M Result-based payments $280M Initiative for Sustainable Forest Landscapes (ISFL)(2013) BioCF Tranche 1 & 2 (CDM and voluntary markets) (2004) Technical Assistance $6.3M Result-based payments $83.3M Forest Carbon Partnership Facility (since 2008) $850M Grants and Technical Assistance for national-level readiness in 47 countries Results-based finance for jurisdictions in 8-9 countries For jurisdictional programs in 4 countries Methodology innovation globally for 20+ projects in 16 countries $380M
- 3. Strictly Confidential © 2015 Business Model Enabling Environment Low-Carbon Development Benefits Development Action • Policy and strategy • Capacity building • Social inclusion • Consultation • Investments in low carbon development • Sustainable management of forests • Climate-smart ag • Poverty alleviation • Shared prosperity • Climate change mitigation and adaptation Grant Funding; Technical Assistance Private and Public Finance, including IDA, IBRD, FIP, GEF financing Results-Based Finance for Emission Reductions We provide: We “crowd-in”:
- 4. Strictly Confidential © 2015 Where we work Zambia Ethiopia Ghana Colombia Indonesia Costa Rica Mexico Nepal DRCRoC Chile Vietnam 14 countries with large scale climate-smart land-use programs under development (FCPF Carbon Fund & BioCF ISFL) 54 countries with REDD+ readiness support (FCPF) or projects (BioCF T1/T2) Guatemala Peru
- 5. Strictly Confidential © 2015 Objective Promote and reward reduced greenhouse gas emissions and increased sequestration through better land management, climate- smart agriculture, and smarter land use planning and policies. • Integrate sub-national development agenda with low-carbon pathways. • Support forest countries to maintain and improve livelihoods, conserve biodiversity and leverage significant private and public sector finance to achieve transformational change. • Demonstrate approaches that can be applied nationally i.e., national low-carbon strategies and global mechanisms of support such as REDD+.
- 6. Strictly Confidential © 2015 What do we offer? • Financial resources to pay for results – measured in tons of carbon • Financial resources to pay for technical advisory support that can be utilized to demonstrate new technologies, improve the policy environment, and reduce risks of adopting new techniques • Technical expertise on carbon methodology and accounting
- 7. Strictly Confidential © 2015 What do we leverage? As part of the World Bank Group we bring additional resources: • From the International Development Association (IDA)/International Bank for Reconstruction and Development (IBRD): – We bring the strong relationship with the governments (convening power). Can serve as interlocutor and convene public and private stakeholders to spur sustainable land use change. – Support enabling policy environment for the adoption of best practices. Work with Ministries of Finance to elevate land use on the national agenda across all Ministries. • From the International Finance Corporation (IFC), the private sector arm of the WBG: – The experiences and support of the advisory services. – The tools to help finance and/or manage/share the financial risks associated with new investments.
- 8. Strictly Confidential © 2015 Deforestation-free Commodity Supply Chains Under Development by World Bank Forest Climate Funds Ethiopia Colombia IndonesiaLiberia Ghana Zambia
- 9. Strictly Confidential © 2015 Deforestation-free Commodity Supply Chains o Colombia: sustainable beef, soy and dairy production o Ethiopia: engagement with private sector on the coffee supply chain o Ghana: Government, local chiefs, National Cocoa Board engaged on deforestation free cocoa sector o Liberia: partnership developing around rubber production o Indonesia: focus on sustainable palm oil sector o Zambia: re-direct market forces to foster deforestation-free cotton supply chain
- 10. Strictly Confidential © 2015 Examples of our Programs 10 Zambia: • Results-based finance to incentivize range of actors across landscape to accelerate “forest-proof” sourcing of commodities and redirecting market forces toward more sustainable and equitable land management practices. • Targeted commodities driving deforestation are: cotton, maize, tobacco, fuel wood. We are supporting: • Sustainable land management in Zambia’s Eastern Province (5.5 million ha). • Partnership opportunities with Cargill and other cotton companies to reduce deforestation linked to cotton farming We foster innovative partnerships for REDD+
- 11. Strictly Confidential © 2015 Vision for Successful Jurisdiction Impact In 10 Years… • Economic development with a green footprint • Land use choices will be collective country decisions • Country vision will need to spur public and private sector action that is sustainable • All sectors will be engaged and work together across the landscape to realize a national low-carbon development goal. 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
- 12. Strictly Confidential © 2015 Further Information Ellysar Baroudy ebaroudy@worldbank.org Ahmad Slaibi ASlaibi@ifc.org http://www.biocarbonfund-isfl.org/
- 13. Strictly Confidential © 2015 THANK YOU
Editor's Notes
- The land use carbon funds provide finance for: Upstream technical capacity and enabling environments Downstream payments for results The funds need to look for collaboration and partnerships with others in order to leverage finance – they will aim to ‘crowd in’ finance from various sources. Climate finance in the land use sector is viewed as a package needed to fund a continuum: from upstream technical work and strategies, through to investments and finally to results based payments that should ensure sustainability in the longer-term. Much more can be done to innovate in this space.
- By the end of October, we expect to add to this list for large scale programs (bringing the number from 12 to 16): Peru, Guatemala, Indonesia and Liberia
- What do we offer? Financial resources to pay for carbon Financial resources to pay for technical advisory support that can be utilized to demonstrate new technologies, improve the policy environment, and reduce risks of adopting new techniques (by building the enabling environment, piloting new business approaches, or sharing risks for investments to happen) Technical expertise on carbon methodology and accounting More details: Help countries articulate their low-carbon vision through holistic cross-sectoral engagement: Involve private sector—consumer goods companies, traders and exchanges, smallholders, large local producers, finance (local and international), entrepreneurs—on building sustainable deforestation-free commodity supply chains. De-risk investments to mobilize the capital necessary to scale up successful land-use practices (ex: utilize risk sharing facilities to mobilize working capital—IFC private sector arm of WBG). Provide technical assistance both to the private and public sector entities to build their capacity, increase their knowledge, and encourage piloting of innovative approaches to sustainably produced commodities. Tailor partnerships to specific needs of the commodity and the global market demands for it; as well as country context. The ISFL concept has been endorsed by a number of multinational companies, including Unilever, Mondelēz International, and Bunge Environmental Markets.