Presentation by Dr Sara Scherr, CEO and President of EcoAgriculture Partners, at the World Agroforestry Centre Seminar Series on 15 March 2017 in Nairobi, Kenya.

1. www.ecoagriculture.org
www.peoplefoodandnature.org
Investment in Integrated Landscape
Management:
Lessons learned from recent research
Sara J. Scherr, President, EcoAgriculture Partners
Chair, Landscapes for People, Food and Nature Initiative
World Agroforestry Centre
Nairobi, Kenya
March 15, 2017

2. Production agriculture and
ecosystems/biodiversity
>
60%
40-
60%
30-
40%
Annual crops as % land area

3. Integrated Landscape Mgmt
Complex landscape mosaics with strong
biophysical-socioeconomic interactions/flows
Moving from a world of trade-offs
towards a world of synergies

4. Multi-stakeholder, multi-objective

5. Integrated agricultural
landscape initiatives
Estrada-Carmona,et al (2014);Martin-Rubi,et al (2016); Milder, et al
(2014); Zanzanaini, et al (2015)

6. Where, who, why ILM
2013-15 Africa
Latin America &
Caribbean
S & SE Asia Europe
Landscape
partnerships
surveyed
87 104 174 71
Principal
motivations
Reduce degradation, sustainable land management,
conserve biodiversity, improve food security, increase
productivity, improve water security, sustain cultural values
Average #
objectives
8 7 6 8
Average # stake-
holder groups
9 11 11 6
% with private
sector participants
8 22 33 10
Most common
participants
Local govts, farmer associations, local NGOS, nat’l-int’l
NGOs, agribusiness, national govts, regional agencies

7. $ Billions being invested in ILM
 GEF (295 projects 1991-2011, $1.2 bln +
$5.8 bln co-finance)
 Multilateral development ( World Bank Green
Climate Fund, European Dev Bank)
 Bilateral (NL, Germany, Switz, Italy, et al)
National programs (landscape restoration,
REDD+, ES-based adaptation, climate-smart)
 NGOs (environmental, agric, social)
 Private companies (CRP, business case)
 Impact investors

8. Photo credit: SAB Miller
Public-private-civic landscape
partnerships

9. The business case to invest in
ILM
 Strongest where fixed assets and long-term
financial interests in the landscape
 Address business risks not manageable alone
 Address pre-competitive sector challenges
 Secure ‘license to operate’
 Mobilize co-finance of critical investments
 Reduce investment risks
 Secure allies in negotiation with government
 Quite variable by type of company and market
positioning; different roles in partnership relevant

10. ILM Investment Needs
 Enabling investments
 Multi-stakeholder platform
 Strategic planning and coordination
 Landscape assessments, monitoring, impacts
 Policies and financial incentives
 Asset investments (landscape-friendly)
 Agricultural and other production/value chain activities
 Industry and processing
 Green infrastructure/greening built infrastructure
 Natural resource restoration
 LPFN case studies - $2-4 billion needed per landscape

12. Investment needs in
Imarisha Naivasha
Enabling investments
• Imarisha-Naivasha stakeholder platform
• Imarisha Sustainable Development Plan, County coordination
• Set-up of payments for ecosystem services
• Set-up of Sustainable Development Fund
• Technical assistance to farmers and other land managers
• Monitoring of watershed health, wildlife, production, livelihoods
Asset investments
• Naivasha town water infrastructure improvements
• Water use efficiency investment by flower companies, other irrigation users
• Restoration of vegetative cover in upper watershed
• Climate-smart agricultural value chains
• Water infrastructure for pastoralists
• Maintenance and improvement of wildlife reserves
• Greening tourism infrastructure

13. Different types of investors
time horizon, investment size, risk appetite

14. Coordinating
investment

15. Private investments in
Imarisha Naivasha
Enabling investments
• UK retailers--ASDA, Tesco, Marks and Spencer and Sainsbury’s, LNGG:
Funded Sustainable Development Action Plan and Watershed Resource
Management Plans, Imarisha operating funds
• Finlay: financial contributions to multi-stakeholder platform
• German-Austrian supermarket REWE and Swiss-Coop: Funded research
Asset investments
• Equity Bank: low interest loans to smallholders for best practices
• Flower companies: invest in own water use efficiency
• Water user fees: local water user associations collect fees and monitor
water use (possible surcharge to support basin sustainability)
• Payments for Ecosystem Services for good practices by farmers in upper
catchment.
• Diverse companies: contribute to Sustainable Development Fund, through a
price premium from flowers sold in the EU, water user fees, and other
revenues; exploring equity investors (but requires restructuring)

16. Securing finance for ILM
enabling & asset investments
1) Scope existing sources of finance and financial flows
2) Develop a Financing Plan for the agreed Landscape
Action Plan that identifies priority investments and
roles appropriate for different types of investors
3) Foster new partnerships between finance institutions
and landscape stakeholders
4) Design enabling investments to leverage, shape and
complement private investment
5) Assist stakeholders to develop bankable investment
proposals that contribute to landscape goals and
demonstrate a clear ‘investment case’
6) Develop institutions to aggregate funding from
multiple sources, and disburse large-scale funds to
diverse land managers

17. Challenges for finance
institutions of ILM investments
 Incorporating landscape criteria into financial
decisions
 Mitigating investment risks
 Effective engagement in landscape partnerships
 Linking/coordinating with other financial flows
within the landscape
 Monitoring multiple outcomes
Shames, et al. 2015

18. Business for Sustainable
Landscapes

19. Business for Sustainable
Landscapes Action Agenda
 Businesses: Prepare your business
for landscape partnerships
 Financiers: Accelerate innovations
in financing for coordinated
landscape investments
 Governments: Incorporate
landscape strategies into national
and sub-national policies
 Landscape programs: Enhance
tools, services and processes to
address business challenges in
landscape partnerships

20. Action Plan for ILM Finance
 Strengthen financing strategies of
landscape partnerships.
 Step up efforts with financial institutions to test
innovative mechanisms for blended finance in
landscape partnerships.
 Create national and international platforms brokering
between credible and bankable landscape partnership
investments and finance institutions.
 Develop centers of expertise to advise and facilitate
landscape partnerships to sustainably finance projects.

21. African Landscapes Action
Plan (ALAP) for Finance
 Strengthen financing capacities of platforms
 Develop a tool for scoping landscape finance
opportunities (flows, actors, scorecard)
 Coordinate investment among government, NGO and
private actors
 Develop training modules on landscape finance
(Landscape Academy) to increase financial literacy
 Undertake outreach to financial institutions in Africa

22. www.ecoagriculture.org
http://peoplefoodandnature.org/challenge/finance
http://peoplefoodandnature.org/challenge/business-for-
sustainable-landscapes/