CI is a global conservation organization with over 1000 employees working in 40 countries to protect biodiversity and empower societies to care for nature. Their Ecosystem Finance Division has invested $211 million through funds and partnerships, protecting over 89 million hectares of land. Verde Ventures provides loans to small businesses in priority conservation areas, investing $13.4 million across 73 loans to support over 400,000 hectares and 42,000 people. The Conservation and Community Carbon Fund supports forest carbon projects, having funded 6 projects that will store over 100 million tons of carbon.

1. Biodiversity and Ecosystem Investments November 11 th , 2009

2. CI Overview Ecosystem Finance Verde Ventures Carbon Fund New Horizons Summary

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. 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. Ecosystem Finance Division (EFD)

6. Our Funds Critical Ecosystem Partnership Fund (CEPF) Global Conservation Fund (GCF) Conservation Stewards Program (CSP) Verde Ventures Conservation and Community Carbon Fund (CCCF)

7. Our Focus Protected Areas Rural Livelihoods Long-term Financing Financial management PES Financing

8. Summary Results Total granted/invested to date: USD $211 million 1,500 partners supported in over 60 countries >89 million hectares of globally significant land protected benefitting critical ecosystems and communities > $254 M in funding leveraged > 140,000 people directly impacted Significant policy impacts in 11 countries

9. EFD Investors Total Capital: $338M (Grants (G), Loans (L), Loan Guarantees (LG)) Multilateral/Bilateral World Bank (G) International Finance Corporation (L&G) Global Environment Facility (G) Overseas Private Investment Facility (L) Government of Japan (G) French Aid Development Agency (L,G&LG) Foundations - Gordon and Betty Moore Foundation (G) - MacArthur Foundation (G) Mulago Foundation (G) United Nations Foundation (G&LG) Conservation International (G-CEPF) Private Sector Starbucks (LG, L & G) - Daiwa (G) Disney (G) Dell (G)

10. Investors’ Interest Historical Philanthropic Marketing Benefit Focus on non-CI partners Investment Infrastructure High Leverage (Debt Swap) Increasingly Supply Chain Benefit SRI/TBL (with $ return) Carbon Credits

11. Verde Ventures (VV)

12. Verde Ventures Verde Ventures invests in small businesses that contribute to conservation and communities in Conservation International's global priority areas.

13. Why Verde Ventures? Conservation-based employment is essential to provide economic incentives for conservation The small business sector is a key partner in the intersection between human welfare and conservation Lack of available, affordable capital to ensure the sustainability of the sector

14. Core Products Loans: US$30,000 to $500,000 (average: $125,000) Use of Loan funds: Infrastructure, working capital, trade finance Typical Deal Structure: Senior or subordinated secured debt for 3-5 years. Increasingly debt + quasi-equity. Financial IRR fund target: 8% Strategic grants for technical assistance and environmental and socio-economic monitoring

15. Current Investors International Finance Corporation Overseas Private Investment Corporation Starbucks Coffee Company French Aid Development Agency

16. VV Summary Results $13.4 million in 73 loans,13 countries > 400,000 hectares directly impacted 42,000 people employed and/or benefiting $32 million in new sales generated by invested companies 95% repayment rate

17. Supply Chain--Coffee $ 10.5 million invested in 23 sustainable coffee suppliers in 5 countries 100% trade finance secured on contracts Help Starbucks achieve public commitments through financing support to their supply chain and other coffee growers.

18. VV Risk Management Thorough due diligence and oversight Use of CI local networks in 40 countries Invest with other lenders (also reduces costs) Invest only in US$ and work with companies receiving hard currency revenues Repayment terms of not more than 6 years At least 1:1 collateral secured under local law Loan Loss Reserve Requirement averaging 15% of outstanding capital

19. Conservation and Community Carbon Fund (CCCF)

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. CCCF Overview 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 .

22. CCCF Core Products Carbon project development funding Technical assistance for project development (carbon baseline, PDDs) Voluntary carbon credit agreements Support to indigenous peoples and forest dependent communities to increase their access to carbon markets.

23. Progress 6 REDD projects funded or in pipeline ( Madagascar, Ecuador, Brazil, Guatemala, Peru, DRC ) October 2009: Signed significant REDD deal with Disney for $7 million in pre-financing CI project in Peru, DRC and third country tbd. Benefits: Disney gets excellent marketing benefit and eventual retirement of 900,000 tons CI gets much needed carbon project financing for 3 projects.

24. Challenges Pre-financing may create low-pricing scenario for project principals. Without flexible pooled funding, project risk is higher as funds are raised for specific projects. Real market growth in REDD dependent on policy arena. Significant up-front capital needed for PDD development and capacity building. Loan/equity financing structures for REDD would help to ensure sufficient financing for building the REDD asset class.

25. Expanding Opportunities Expand forest-carbon financing 10x Replicate PES-market models- with a focus on freshwater VV expansion with initial $10 million in new capital- focus on Africa Support monetization of biodiversity assets for local and global benefit.

26. Thank You! Jennifer Morris [email_address]