The Lake Tana Finance Initiative seeks to restore and maintain the integrity of one of the world’s premier water towers, the Lake Tana watershed, source of the Blue Nile, Ethiopia. The Initiative proposes to catalyze the financing of community based efforts that convert CO2 into things people need (water, food, feed, fiber, fuel, fertilizer, and biodiversity), cool the planet, reduce humanity’s Ecological Footprint, and enhance economic, environmental and human security within the region and beyond.

1. Lake Tana Financing Initiative
LAKE TANA FINANCE INITIATIVE
The Lake Tana Finance Initiative seeks to restore and maintain the integrity of one of the world’s premier water
towers, the Lake Tana watershed, source of the Blue Nile, Ethiopia. The Initiative proposes to catalyze the
financing of community based efforts that convert CO2 into things people need (water, food, feed, fiber, fuel,
fertilizer, and biodiversity), cool the planet, reduce humanity’s Ecological Footprint, and enhance economic,
environmental and human security within the region and beyond.
The Initiative is designed to create sustainable livelihoods for local communities and families in Ethiopia’s Amhara
region, improve trans‐boundary water management and security, and address global climate change by
sequestering 25 million tons of CO2 from the atmosphere each year. An integrated approach will focus on whole
systems thinking, innovative financing mechanisms, and the planting of a billion trees that last. The Initiative’s
implementation and financing plan promotes a fundamental shift in sustainable development thinking and climate
change strategy that creates multiple benefit streams for local communities, donors, and investors and accelerates
the cementing of local, regional and international partnerships in order to achieve the scale necessary to preserve
the life supporting functions of Lake Tana’s water tower for the millions of people that depend on it.
The founding and supporting partners assisted by an international advisory panel of experts have key skill sets,
track records, and access to guide the successful implementation of this exciting new paradigm in sustainable
development. The longer term vision is to inspire the launching of water tower programs in other regions of the
world as part of a franchised business concept promoting knowledge sharing, learning, and reaching scale.
© 2008‐09 Planet2025 Network
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2. Lake Tana Financing Initiative
THE CHALLENGE: MAINTAINING LIFE SUPPORTING ECOSYSTEMS
The source of the Blue Nile is Ethiopia’s Lake Tana, the country’s largest fresh water body fed by four perennial
rivers and numerous seasonal streams. Known as Tis Isat – “Smoke of Fire” – the Blue Nile Falls is the spectacular
point where Lake Tana overflows and drops 150 feet over the edge of lava rocks and starts winding its way down
to Sudan to accelerate the White Nile at Kartoum, where the two rivers become the Nile river, which in turn makes
its way to the Egypt’s Nile River delta, where it eventually flows into the Mediterranean Sea. The Lake Tana region
with its 37 islands and many Ethiopian Orthodox Church monasteries and church forests also represents a cultural
heritage of national, regional and global significance with many tourism attractions.
Changes in Lake Tana and its watershed have important national and international implications because the
livelihoods of millions of people in Ethiopia, Sudan and Egypt depend directly or indirectly on the continuous flow
of Lake Tana’s valuable water resources and the resiliency of the ecosystem services the watershed provides. By
2025, the number of people dependent on the watershed’s health is expected to have grown by some 80%.
The Lake Tana watershed already suffers from a decrease in water levels due to rapid population growth,
unsustainable agricultural and development practices, and deforestation of the surrounding mountainsides. This
has resulted in soil and water erosion, sedimentation, and degraded water quality and has serious consequences
for economic, environmental, and human security within the region and beyond. Current levels of investment to
maintain the flow of the Lake Tana watershed are estimated at $ 10‐20 million, which is a small fraction of what is
deemed necessary to support its life sustaining functions.
THE OPPORTUNITY: CARBON, COMMUNITY, COOPERATION
Afforestation/reforestation and integrated agroforestry projects typically remove and sequester CO2 from the
atmosphere at a rate of 50‐80 pounds per tree per year respectively1
. Importantly, they also bring communities
valuable economic and social benefits. The world’s most degraded lands can often be saved by converting carbon
into things people need: food, forage, bio‐fuels, clothing, shelter, medicines, and organic fertilizer. By doing so,
carbon is returned to the soil.
• The major CO2 emitting economies and their industries are under increasing pressure to comply with
internationally evolving agreements for a post‐Kyoto era that seek to reduce GHGs in order to avoid the
worst consequences of climate change. Cooperation on the financing and implementation of multiple tree
and forest garden projects on a large scale is an efficient, cost effective, win‐win approach for people,
organizations and countries to regenerate the planet and convert CO2 into things people need.
• The investment capital required to replace for example one billion trees lost to deforestation following
the approach described herein can be estimated at $ 150 million and will sequester approximately 25
million tons of carbon dioxide per year. The price of carbon credits in the voluntary markets averaged $
3.15 ‐ $ 6.10 per tCO2e on the OCT and CCX in recent years. Prices of certified carbon credits on the ECX
have been averaging $ 20 per tCO2e. A one‐time investment of 150 million in one billion trees thus yields
a return of $ 70 million or more every year, resulting in a payback period of 2 years or even less.
• If one takes into consideration the total benefits streams resulting from integrated
afforestation/reforestation, agroforestry, and water resource management operations, the estimated
cost benefit ratios (CBR) of these projects can exceed 18 and annual net cash flows of more than $ 10 for
1
A conservative estimate for trees growing in the tropics is 50 lbs per tree per year; forest gardens are more efficient in their photosynthesis
and can remove an average of 70‐80 lbs per tree per year according to experts.
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3. Lake Tana Financing Initiative
every dollar invested2,3
. This ranks such projects as one of the global community’s premier investment
opportunities promoting a life‐sustaining civilization.
Humankind is only replanting a fraction of the 14 billion trees it loses every year to deforestation even though
sustainability of life on earth is highly dependent on CO2 absorption capacity of forests and soil. The main reasons
for this huge market failure are that: (i) investment costs are (perceived to be) substantially higher, (ii) the market
value of carbon is highly uncertain due to regulatory uncertainties about the post Kyoto world, (iii) limited
entrepreneurial capacity has been tapped appropriately to enable the planting of trees on a large scale, (iv)
investors and financial institutions are not very familiar with packaging small scale reforestation projects, despite
their benefits, (v) accounting and verification of tree planting results is still in the early stages, already leading to
unsubstantiated claims by some, and (vi) capacity building and training interventions need to connect the dots and
accelerate learning processes and knowledge sharing using available technologies.
AN INTEGRATED APPROACH
The core mission of the Initiative will reinforce a paradigm shift in sustainable development and climate change
strategy that encourages people, organizations and nations around the world to cooperate on meeting the needs
of the present generation without compromising the ability of future generations to meet their own needs – and
to do so as living systems in alignment with nature so all life will flourish.
The Initiative seeks to engage local communities in the Amhara region as equal partners in development based on
holistic project designs integrating:
WHOLE SYSTEMS THINKING
• Community participation and ownership as driver of sustainable change
• Afforestation/reforestation activities on the mountainsides
• Integrated agroforestry activities at the base of mountainsides
• Integrated water resource management in Lake Tana watershed
• Integration of sustainable biofuels in natural fencing of church forests
• Accelerated change by scaling up/building on success stories and proven approaches of partners
• Connection of local actions to global challenge of climate change mitigation and adaptation
• Engaging youth in schools – leveraging “the power of one” to change the world
INNOVATIVE FINANCING MECHANISMS
• Payments for upstream ecosystem services by downstream beneficiaries
• Multiple co‐financiers: development agencies, investors, foundations, individual donors
• Matched funding concepts leveraging public sector, private sector and individual financing sources
• Web 2.0 approaches to linking funding sources with high quality projects
• Field and space‐based monitoring of CO2 sequestered in biomass
• Monetization of CO2sequestered in biomass via voluntary carbon markets
2
Value of ecosystems services: water, food, fodder, fuel wood, CO2 absorption, bio‐fuels, and others estimated at $ 2910 per ha per year for 25
years representing the assumed lifespan of a tree (typically 20‐50 years).
3
Includes: cost of initial investment $ 266 per ha (15 cents per tree), plus annual estimated monitoring costs of $ 150 per year per ha for 25
years (excluding labor costs, assumed as sweat equity which may be estimated at $ 2.00 per day or $ 730 per year).
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4. Lake Tana Financing Initiative
A BILLION TREES THAT LAST
• A five year goal to plant a total of 1 billion trees on 500,000 hectares at an average cost of $ 0.15 per tree
and expected to yield 25 million tCO2e per annum valued at a price of $ 1.00 to 10.00 per tCO2e.
• Resiliency and dignity of people living in harmony with and supported by healthy ecosystems and services
yielding an estimated $ 2‐3,000 of income or income equivalents per hectare.
ALL IT TAKES IS A SEED……
[insert representative pictures here of key activities + link to video clip]
Seeds Nurseries
Transplanting
Types and density
Survival Irrigation
Mountainsides upper
Before After
Mountainsides lower
Before After
Accounting
Field monitoring Remote sensing
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5. Lake Tana Financing Initiative
IMPLEMENTATION PLAN
PHASE I – CONSULTATIONS & PLANNING (Q2 + Q3, 2009)
A series of donor sponsored stakeholder consultations organized by the Coordinating Partners will convene local
communities, regional, national, and international experts and engage them in the development of detailed plans
and proposals to underpin foundation for financing and implementation of the Initiative.
PHASE II – FUNDRAISING (Q4, 2009 + ONGOING)
A fundraising campaign will be launched and directed at multiple co‐financiers, including but not limited to
development agencies, (corporate) investors, foundations, and individual donors. Attempts will be made to
present the Lake Tana Finance Initiative as path breaking program during the COP of the UNFCCC in Copenhagen.
PHASE II: PROGRAM IMPLEMENTATION (START Q1, 2010)
The targeted start date for what is expected to be a phased implementation of the Initiative is January 2010.
Overview of goals and objectives (for discussion):
Phase A Phase B
2010 2011 2012 2013 2014 Total
Families/communities
Number of hectares
Number of trees
Program cost @ $ 0.15 per tree
Carbon Credits (tCO2e)
Market value per tCO2e
Additonal benefits streams
FINANCING
The Lake Tana Financing Initiative will provide interesting emerging opportunities for donors, investors, and
sponsors to secure carbon credits at a significant discount over what the future price per tCO2e will be in 2012 and
beyond. Importantly, the Initiative promotes the creation and maintenance of sustainable livelihoods of
participating communities which are not exclusively based on the sale of carbon credits, but on a portfolio of
benefits streams bundling economic, environmental, and social benefits.
Participation will also offer an opportunity to balance the Ecological Footprint of an
individual, organization or nation’s lifestyle through the purchase of Offsets4Life™.
Individual donors, as well as socially responsible businesses and investment funds,
industry sectors in need of carbon offsets, governments, foundations, and
international development players are considered potential sponsors, donors and
investors. Public‐private synergies will be leveraged whenever possible through
matched funding constructions rewarding action by individuals and organizations.
The total estimated budget to achieve the five year plan is $ 150 million. The aggregate projected return on
investment generated by benefits streams from the projects is [insert].
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6. Lake Tana Financing Initiative
April 12, 2009 Concept Note Version 0 – Discussion Draft P a g e | 6
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FOUNDING PARTNERS
Planet2025 (www.planet2025.net) is a non‐profit social venture testing innovative concepts to mobilize new
sources of sustained financing for long term‐investment in the globe's life‐supporting ecosystems, including its
centerpiece activity, Planet2025 Communities, which focuses on integrated agroforestry and systems thinking to
assist communities in developing countries to convert CO2 into things people need in cooperation with others.
Greener Ethiopia (www.greenerethiopia.org) has successfully engaged in the establishment and management of
nurseries, the planting of fast growing multipurpose trees, the regeneration of local ecosystems, the creation of
sustainable livelihoods in cooperation with local communities in the Guraghe zone, and a five year 100 million tree
planting program in cooperation with Ethiopian Airlines, Planet2025, and other partners. Greener Ethiopia planted
close to 7 million trees in 2008 and expects to plant over 10 million trees in 2009.
ORDA (www.ordainternational.org) is the leading organization in forest resource, water resource, and integrated
agricultural development among non‐governmental organizations in Amhara and has the overriding mission to
empower the Amhara Region food and livelihood insecure households and communities to maximize their
development potentials and benefits by developing their capacity and self‐esteem. ORDA planted 50 million trees
and opened ?? water points in 2008; a thirty percent growth rate is expected in 2009.
ADVISORY PANEL OF EXPERTS*
Dr. Mersie Ejigu | Dr. Hans Herren | Dave Deppner | Barbara Bramble | Jeff McNeely | Dr, Alemayehu |
[recommendations for additional experts?]
*to be invited
SUPPORTING PARTNERS*
Institute for Environmental Security | Roundtable for Sustainable Biofuels | Millennium Institute | American
Council of Renewable Energy (ACORE) | Foundation for Environmental Security and Sustainability | Trees for the
Future | Global Footprint Network | TransGlobal Ventures | Ethiopian Airlines | Biovision | HoA‐REC/N | IUCN |
[recommendations for additional organizations?]
*to be invited
CONTACT INFO
Steven Lovink
Founder and CEO
Planet2025 Network
1403 30
th
Street NW
Washington DC 20007
USA
T +1 202 333 8878
F +1 202 333 8879
E jslovink@planet2025.net
Bedru Sultan
Vice Chairman
Greener Ethiopia
4326 Marjoram Court
Alexandria, Va 22310
USA
T +1 202 553 8027
T +251 912 012717
E bedru@greenerethiopia.org
Wuletaw Hailemariam
Executive Director
Organization for Rehabilitation and
Development in Amhara
Bahi Dar
Ethiopia
T +251 58 2200985
F +251 58 2200987
E orda‐1@ethionet.et