Skip to Main Content
Page banner

Landscape Finance Lab

We welcome you to use this space to share resources, tools, inspiring cases and opportunities with fellow members.

As essential reading we'd recommend starting with the 1) Little Book of Sustainable Landscapes, 2) Landscape Elements resource and Ecoagriculture Partners' 3) Business for Sustainable Landscapes report

Categories

                  

The Global EbA Fund is a quickly deployable mechanism for supporting innovative approaches to Ecosystem-based Adaptation (EbA). The Fund is structured to support catalytic initiatives to help to overcome identified barriers to upscaling EbA. 

The Global EbA Fund will accept and review Concept Stage Application Packet submissions year-round and make biannual funding decisions.

In 2021, the biannual funding decisions will be in July 2021 and November 2021. The cut-off dates for Concept Stage submission will be 30 April 2021 and 30 August 2021 at 23:59 UTC+2.

Click here for more information on How to Apply 

Nature+ Accelerator Fund

Posted by Deesha Chandra (Admin) 3 months ago

Nature+ Accelerator Fund offers investment opportunities for public and private institutions

The Nature+ Accelerator Fund combines the  unique set expertise of leading public and private institutions and platforms to address the conservation gap by attracting private finance to conservation. The Accelerator is anchored in IUCN's global leadership in Nature-based Solutions (NbS), Mirova Natural Capital's experience in investment management for NbS, and a trusted network of partners within the Coalition of Private Investment in Conservation (CPIC). The portfolio is anchored by funding from the Global Environment Facility (GEF).

The Accelerator will grow a conservation investment pipeline with adequate risk/return ratio by leveraging the initial US$ 8M risk-tolerant concessional finance from GEF. From there it will develop a US$ 200M in transformational, scalable, and financially viable project portfolio with significant positive outcomes for nature and society.


Expected outcomes by 2030 

  • A portfolio of up to 70 successful investment deals, attracting co-investment up to US$160M beyond the Nature+ Accelerator funding;
  • Proof of concept of a suite of NbS, aligned to the IUCN Global Standard for Nature-based Solutions;
  • Significant biodiversity and ecosystem conservation impacts, measurably reducing extinction risk of IUCN Red List threatened species and contributing towards national and global targets, including the Convention on Biological Diversity (CBD) post-2020 Global Biodiversity Framework;
  • Measurable contribution towards the UNCCD Land Degradation Neutrality objectives and the UN Decade on Ecosystem Restoration;
  • Climate change mitigation and adaptation impacts aligned to the 1.5oC global target set by the UNFCCC Paris Agreement;  and
  • Socio-economic impacts for local communities, including improved livelihoods and gender equity, contributing towards achievement of the Sustainable Development Goals (SDGs).

How it works

Project pipeline

Starting in 2021, the Accelerator Fund will offer financing (e.g., loans and equity) through the three financing windows: 

white boxes with numbers

 

Click here for more information on criteria and pipeline.

 

 

The new report ´Mobilizing finance across sectors and projects to achieve sustainable landscapes:
Emerging models´, by Seth Shames and Sara J. Scherr explores how integrated landscape investments
— an emerging class of entities designed to finance landscape-level activities — can support biodiversity conservation at scale. The study by CPIC’s Landscape and Seascape working group supported by WWF’s Landscape Finance Lab, EcoAgriculture Partners and the 1000 Landscapes for 1 Billion People Initiative, found that everyone, from project developers and investors to policymakers and academics, must all do more to harness this potential.

Click here for the report 

Link to the brief

 

IKI Medium Grants focuses on Germany-based implementing organisations that are involved in international cooperation for climate and biodiversity protection in developing and emerging countries.

The funding programme is implemented by Zukunft - Umwelt - Gesellschaft (ZUG) gGmbH on behalf of BMU and ranges between EUR300K - 800K over 2 -3 yrs.

The IKI funds projects in the following areas:

Eligible organisations

The German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) regularly selects projects to be funded within the IKI framework by means of idea competitions. Detailed information on funding conditions, selection criteria, funding objectives and funding priorities can be found in the document entitled “Funding Information on IKI Medium Grants”. 

The evaluation of the project outlines and proposals is carried out by Zukunft – Umwelt – Gesellschaft (ZUG) gGmbH on behalf of BMU and under the supervision of relevant experts, if required. BMU will select the project outlines with high potential based on available budget funds.

List of possible funding countries 

 

New funding opportunities

Posted by Deesha Chandra (Admin) Jan 28, 2020

Sharing a great summary by Katie Sims from Birdlife International of funding opportunities that may be of interest to landscape teams. 

1)      WWF/Impactio Platform – Innovate for Wildlife and People: Incentivising and rewarding community-based wildlife conservation

  • 20,000 – 50,000 USD
  • Early expression of interest: 28 January - 10 February 2020
  •  The challenge is posed to you by the WWF Global Wildlife Practice, and we are excited to invite WWF partners and other interested organizations to submit applications.
  • The Challenge will be hosted on the Impactio platform, a WWF Panda Labs initiative.
  • The Challenge: ‘How can benefits for local people be increased, strengthened, diversified, and have longer term economic viability to incentivise and reward wildlife conservation?

 https://impactio.global/innovate-for-wildlife-and-people-challenge  / info@impactio.global

 

2)      German government small grants – International Climate Initiative “IKI”

  • ·         Up to 100,000 EUR
  • ·         Deadline 5th March 2020
  • ·         As a primary goal project proposals have to clearly address one of the IKI funding areas:
  1.    Mitigating greenhouse gas emissions
  2.  Adapting to the impacts of climate change
  3.  Conserving natural carbon sinks / forestry
  4.  Conserving biological diversity

https://www.international-climate-initiative.com/en/project-funding/information-for-applicants/iki-small-and-medium-grants/iki-small-grants/

 

3) Global Forests Watch – Small Grants and Tech Fellowships

The Small Grants Fund and Fellowship Calls for Applications open once a year. Though the specific focus of the Calls varies from year to year, successful applicants must clearly articulate how GFW will support and enhance their ongoing work related to:

  • Advocacy
  • Community engagement
  • Forest monitoring and enforcement
  • Journalism
  • Education

https://www.globalforestwatch.org/grants-and-fellowships/apply

Indo-Pacific Design Funding Window

The Indo-Pacific Design Funding Window provides grant funding for the design and launch of catalytic blended finance solutions focused on sustainable and resilient infrastructure in certain countries in the Indo-Pacific region. This Window is funded by the Australian Government.


Types of Applications

Practitioners can apply for feasibility study or proof of concept funding:

  • Feasibility study: Funding to explore the feasibility of the vehicle. For example, assessing the investability/bankability of the transaction, conducting market scoping and developing the vehicle structure. Convergence will award grants up to $200,000 for feasibility studies. Promising feasibility studies funded through the Design Funding Window will be considered for follow-on proof of concept funding.
  • Proof of concept: If a feasibility study (or equivalent) has been completed, funding to complete all design and structuring activities to launch the vehicle. For example, finalizing the capital structure and financial model, establishing the legal structure, and producing key documents. Convergence will award repayable grants up to $350,000 for proof of concept work. 

Application Submission Deadlines

Applications to the Indo-Pacific Design Funding Window will be considered on a rolling basis. The upcoming application deadlines are given below.

  • February 10, 2020
  • August 10, 2020

CLICK HERE FOR MORE INFO

 

------

Asia Natural Capital Design Funding Window

The Asia Natural Capital Design Funding Window provides grant funding for the design and launch of catalytic blended finance solutions focused on natural capital in Asia. This Window is funded by the RS Group, a family office based in Hong Kong.

This Window will support blended finance solutions that find new ways to enhance and protect the world's stock of natural assets, including water, land, soil, air, plants and animals, by attracting private investment at scale. For example, solutions could be aimed at:

  • Protecting biodiversity
  • Reducing ecosystem degradation (e.g. deforestation)
  • Mitigating and adapting to climate change
  • Reducing unsustainable use of land and oceans
  • Restoring and rehabilitating impaired terrestrial, coastal and aquatic ecosystems

...while providing a fair and sustainable living to local communities.

Please refer to the Factsheet on the Asia Natural Capital Design Funding Window for more information


Types of Applications

Practitioners can apply for feasibility study or proof of concept funding:

  • Feasibility study: Funding to explore the feasibility of the vehicle. For example, assessing the investability/bankability of the transaction, conducting market scoping and developing the vehicle structure. Convergence will award grants between $50,000 and $200,000 for feasibility studies. Promising feasibility studies funded through the Design Funding Window will be considered for follow-on proof of concept funding.
  • Proof of concept: If a feasibility study (or equivalent) has been completed, funding to complete all design and structuring activities to launch the vehicle. For example, finalizing the capital structure and financial model, establishing the legal structure, and producing key documents. Convergence will award repayable grants between $200,000 and $500,000 for proof of concept work.

Application Submission Deadlines

Applications to the Asia Natural Capital Design Funding Window will be considered on a rolling basis. The upcoming application deadlines are given below.

  • February 10, 2020
  • May 10, 2020
  • August 10, 2020
  • November 10, 2020

CLICK HERE FOR MORE INFO

Any WWF teams applying for this funding window, please link in with Melissa Moye, Senior Director, Conservation Finance, WWF-US.

 

Source: Climate Policy Initiative (CPI)

Four years after world leaders negotiated the Paris Climate Agreement, now signed by 195 countries around the world and ratified by 187, national policies and market signals are starting to reflect the urgency both of increasing finance for mitigation of and adaptation to the effects of climate change, and of making all financial flows consistent with a pathway toward low-carbon and climate-resilient development. However, much more ambition will be needed to avoid the most catastrophic effects of climate change, including a push at the national level for countries to meet and exceed their climate action plans.

The 2019 edition of Climate Policy Initiative’s Global Landscape of Climate Finance (the Landscape) again provides the most comprehensive overview of global climate-related primary investment. This year’s report includes six years of consecutive data, including the first major wave of investments following ratification of the Paris Agreement, in 2017 and 2018.

Highlights from the 2019 Landscape incude:

  • Annual tracked climate finance in 2017 and 2018 crossed the USD half-trillion mark for the first time.
  • CPI reports two-year averages to smooth out annual fluctuations in data. Indeed, climate finance flows reached a record high of USD 612 billion in 2017, driven particularly by renewable energy capacity additions in China, the U.S., and India, as well as increased public commitments to land use and energy efficiency. This was followed by an 11% drop in 2018 to USD 546 billion.
  • While climate finance has reached record levels, action still falls far short of what is needed under a 1.5 ˚C scenario.
  • There is a need for a tectonic shift beyond ‘climate finance as usual.’ Annual investment must increase many times over, and rapidly, to achieve globally agreed climate goals and initiate a truly systemic transition across global, regional, and national economies.
  • In this context, scarce public and other concessional financial resources must be used in a more transformative way.

READ HERE 

Delegates met in Washington DC last week for one of the most important Council meetings in the history of the Global Environment Facility (GEF). It is expected to mark a pioneering shift of emphasis for the organization that was established on the eve of the 1992 Rio Earth Summit to help tackle our planet’s most pressing environmental problems.

It is being asked to approve the largest program of work in the funder's history and one that addresses the need for comprehensive and transformational worldwide change more than ever before.

Key to the $865.9 million work program, which if approved will be the largest single batch of projects and program ever in the history of the GEF, are four “Impact Programs”. These set out to bring countries together in an integrated approach directed at tackling the drivers of environmental destruction, and not just its symptoms. They have been born of a realization, endorsed by the Council at previous meetings that, while more than quarter of a century of GEF individual projects have many successes, these have not been enough decisively to shift the needle in the right direction, let alone deliver the scale of change the deteriorating state of the world demands.

The first of the Impact Programs, Food Systems, Land Use, and Restoration (FOLUR), aims at helping to transform food production and land use systems, which are major causes of global environmental degradation. Agriculture now accounts for about a quarter of global emissions of greenhouse gases, some 70 per cent of all freshwater withdrawn from rivers, lakes and aquifers, and is the primary source of the nutrients that run off fields, course down rivers, and end up creating “dead zones” and toxic blooms of algae in coastal waters. Meanwhile waste and loss accounts for nearly a quarter of all food produced, at approximately 1.3 billion tons a year.

FOLUR will initially focus on 18 countries in Asia, Africa, Latin America and the Pacific, encompassing major producers of palm oil, rice, cocoa, coffee, wheat, and cattle. It will help them increase production while resisting further expansion of farmland, erosion of genetic diversity, overexploitation of land and water, overuse of chemical fertilizers and pesticides, and the inefficient practices that lead to deforestation, land degradation, loss of biodiversity, and greenhouse gas emissions.

It will aim to scale up best practices in value and supply chains, influence markets to increase their share of sustainably produced crops and commodities and encourage the adoption of policies and practices that can be shown to be environmentally sustainable. It is expected to result in improving practices over 38.9 million hectares, restoring 1.8 million hectares of land, increase conservation in 1.2 million hectares of protected areas, and mitigating the mission of greenhouse gases equivalent of 209 million tons of carbon dioxide.

The second Impact Program, the Amazon Sustainable Landscapes, seeks to protect one of the most threatened environments on the planet. The Amazon contains both the world's largest rainforest - comprising 40 per cent of the global total – and its largest river system. It is home to over a quarter of the world's terrestrial species, accounts for about 15 per cent of all the terrestrial photosynthesis on Earth and is a major sink for carbon. Yet about 15 per cent of the rainforest - an area larger than France – has been lost since 1970 and deforestation is expected to continue.

A third Impact Program, Congo Basin Sustainable Landscapes, addresses the world's second largest rainforest, one that is still in relatively good health with relatively little deforestation. But it is under threat, including from mining, industrial agriculture, oil exploration and logging.

The program aims to prepare the region to deal with these threats by empowering local communities and pioneering an alternative pathway to development. It sets out to improve the management of 20 protected areas covering more than 7 million hectares and create 600,000 hectares of new ones, while improving practices on another 4.3 million hectares of land.

Finally, the Impact Program on Dryland Sustainable Landscapes addresses some of the most important, and neglected, areas on Earth. The drylands extend over more than 40 per cent of the planet's landmass, produce 60 per cent of the world's food and are home to about two billion people. They also contain some of the most fragile and threatened ecosystems on in the world, and the centers of origin of at least 30 per cent of the world's cultivated plants. They face some of the most urgent environmental and development challenges of all but have generally been passed over for coordinated investment.

The program – which will focus on southern and western Africa and central Asia – aims to avoid, reduce and reverse further deforestation, degradation, and desertification in the drylands, with a vision that they will be sustainably managed on a global scale. It sets out to bring 12 million hectares under sustainable management and restore 1.2 million hectares of degraded land.

Click here for the summary report of this meeting 

This blog is an excerpt of a post taken from GEF.org https://www.thegef.org/news/countries-gather-landmark-gef-council-meeting

 

 

Investments in sustainable land management practices are needed to avoid, reduce and reverse land degradation. The Land Degradation Neutrality Fund, co-promoted by the UNCCD, is a first-of-its-kind fund investing in profit-generating sustainable land management and land restoration projects that contribute to SDG 15.3. However, project preparedness can be a major bottleneck for Sustainable Land Management investment.

The LDN technical assistance facility (TAF), managed by IDH, helps to alleviate this bottleneck. The LDN TAF can provide grants and reimbursable grants to investment projects that have potential to be invested into by the LDN fund, and be investment-ready within 24 months. Pre-investment TA can focus on enhancing technical, operational and financial design and structures, as well as support project preparedness support related to broader social and environmental impact.

In order to be eligible for LDN TAF pre-investment support, a project needs to demonstrate it meets the LDN TAF eligibility criteria, and pass through the five stage application process.
Interested parties can find more information on https://www.idhsustainabletrade.com/landscapes/ldn-taf/

For our French-speaking members, this is a fantastic interactive map of Green and Sustainable Finance.

Just scroll over the names of the institutions to discover more about them. The chart covers academic institutions, public institutions, private sector actors, think tanks, NGO's and research bodies.

 

 

Earlier this month, the Lab, together with WWF Bankable Water Solutions and Ikigai Advisors organised a two-day training on Landscape Finance and Bankable Projects. The event has hosted by WWF Netherlands in Zeist,  and hosted 20 conservation practitioners from 13 countries. Next to WWF staff the training welcomed the Lab’s partners from Commonland.

The training presented the fundamentals of landscape finance, with focus on private sector solutions, especially bankable projects. Combining the theory of landscape finance and bankable projects incubation with hands-on examples and case studies the participants were equipped with the required knowledge to identify and lead private sector solutions in landscapes. The on-site workshop was followed by a virtual assignment allowing participants to apply the acquired skills in their daily work.

Training Agenda

The training agenda interlinked presentations around the theory of landscapes, private sector investments and bankable projects design with practical case studies from the participants’ daily work. Coffee breaks and a joint dinner at the end of day 1 offered a networking and discussion platform for the potential of practical implementation of the discussed topics.

Training content summary and key messages 

The conservation funding gap can’t be addressed with public or philanthropic funding. Tapping private capital will be paramount to the work of conservation organisations in future. In this “new normal” conservationists will be required to operate in collaboration with the private sector, contributing to “bankable projects” that protect and sustain ecosystems using private finance. Landscape programs are a powerful tool to deliver impact at scale and often incorporate private sector investments. The two represent two working levels of the same system and can operate in a mutually beneficial manner.

The landscape approach applied in the Lab, builds on the theory presented in the Little Sustainable Landscape Book, which was co-authored by Lab team-members and is the common denominator of some of the leading conservation organisations globally, with regards to the theory of landscapes. The participants were presented with various examples of landscape design and were able to apply their newly acquired knowledge in some of the landscape programs currently in preparation in various WWF offices.

Private sector investments are one possible component of landscape programs and target the allocation of private capital to conservation-compliant projects and businesses. The training offered insight into the fundamentals of corporate finance and investments. The session was complemented with a presentation of the concept of blended finance, which has proven to be one of the most powerful tools for crowding-in private capital into impact-driven investments. Applying the fundamentals of business and investments (incl. blended finance) the participants were able to construct business cases using a mix of public and private capital.

A session focussed on bankable projects, has presented the fundamentals of developing bankable projects and the role of a conservation organisation in those. Showing plenty of examples the session inspired participants to develop bankable projects of their own. A walkthrough the process of a bankable projects incubator, that is to be launched shortly, provided a step-by-step approach to developing bankable projects. The session was complemented with a final exercise bringing the theory from the two days together.

Training feedback

The participants were asked to provide feedback after the training. The responses on all sessions have been very positive. Approx. 90% participants rated both content and delivery either good or very good. All participants answered positively to whether they will initiate either landscape program or a bankable project. They also provided valuable feedback with regards to the support they would require when doing so. 

At the end of the training the participants were asked whether they will incorporate the knowledge from the training in their daily activities. 100% of the participants confirmed that they will start (or continue as the case may be) to work on a landscape program or a bankable project. Two thirds of the participants believed they are sufficiently equipped to do so. We believe this is a clear sign of commitment to the initiatives presented and indication for support needed to do so. 

 

Next steps

Participants are now working on 3 week sprints to draft bankable projects or idea notes which will be launched on the platform. Stay tuned for the wrap up in the week of December 10th. Following the success of this training, we will be launching a series of similar trainings in 2019. Thank you to all our participants and our generous hosts in Zeist.

A new report from IUCN builds on the landscape elements and adds a timely additional step: climate change impact assessment is performed to inform stakeholders on changes of the landscape over time.

While not quite following the five elements (implentation is replaced by projects) it does show that it is possible to keep an adaptation focus working in a landscape.

The 13 page synthesis of the report is attached and dives into the impacts for investors, corporations, governments and NGO's. Using several case studies to illustrate the methodology it also offers recommendations for entrepreneurs, fund initiators, governments, investors and NGOs who wish to encourage more institutional investment in landscape initiatives. Well worth a read!

 

Please note this publication is a synthesis of the full report ‘The Missing Link: Connecting international capital markets with sustainable landscape investments’. This report was authored in 2016 by consulting firm Enclude and commissioned by Platform Biodiversity, Ecosystems and Economy (Platform BEE), a partnership between IUCN National Committee of The Netherlands and the Confederation of Netherlands Industry and Employers (VNO-NCW), supported by the Dutch Ministry of Economic Affairs. The full 64 page report can be accessed here

Getting landscape teams to a place where the landscape is ready for investment is exactly what we do here at the Lab. In this interview from the Conservation Finance Network, impact investors echo what is needed, namely understanding how financiers approach is different to donors.

Conservation managers and entrepreneurs who are looking to make their projects stand out as investment opportunities should be sure to supply the information that investors want. Impact investing experts interviewed by Conservation Finance Network expressed a surprising lack of interest in most impact metrics and measurements aside from carbon sequestration. They instead indicated that they prioritize honest assessments of risk. They also value an understanding of how an investment opportunity can fit into a larger portfolio. Managers looking for impact capital can gain an edge if they orient their pitches to the specific risk tolerance profiles of the investors or funds.

Read the full interview here: 

How to Get an Impact Investor's Attention

 

 

 

This piece by David Hall shows how switching to results based finance increases the chances of success for long term, ambitious projects. Using the New Zealand governments pledge to plant 1 Bilion trees as an example he expounds on tactics.

Here at the Lab we have seen some success already with this in the DRC with trees growing back in small test areas (750 ha). In some cases forests are 10-20m high already with more animals and water flows starting so women have to walk less distance for water. Even though this is a test, it is ready to scale to 1000 villages and shows the potential in this method.

 

 

We're excited to host an event on Green Bonds and its potential in the forestry space. This session will be hosted by Katie House from the Climate Bonds Initiative and Luis neves Silva from New Generation Plantations

This is session is relevant for people working in forestry, specifically commercial forestry and also those working on climate impact.

Date: Wednesday July 11th 2pm GMT/3pm CET

Dial in details:

Join from PC, Mac, Linux, iOS or Android: https://zoom.us/j/317496934

Or iPhone one-tap :

US: +16465588656,,317496934# or +16699006833,,317496934# 

Or Telephone:

Dial(for higher quality, dial a number based on your current location): 

US: +1 646 558 8656 or +1 669 900 6833 

Brazil: +55 11 4680 6788 or +55 21 3958 7888 

South Africa: +27 87 551 7702 

Meeting ID: 317 496 934

International numbers available: https://zoom.us/u/GilhxVd8

What’s it all about?

Climate Bonds Initiative has just relesaed its Forestry Criteria for public consultation.These Criteria give the requirements that must be adhered to help ensure forestry and land conservation and restoration investment, particularly green bonds, is sustainable and supports low carbon and climate resilient outcomes.

Read the Criteria here or register for one of our explantory webinars.

SDG15 ‘Life on land‘ & Green Bonds

Currently we’re seeing more bond issuances linked to forestry assets and projects. The Tropical Landcapes Finance Facility (TLFF) launched a USD95m sustainability bond earlier this year, Landshypotek Bank has priced the first green covered bond from a Swedish issuer which is the largest ever green bond in Swedish krona (SEK5.25 billion), partly for sustainable forestry, and Sveaskog has issued two green bonds, one in 2016 and one in 2017, for FSC Certified forestry assets.

Green bonds have also funded land conservation and restoration. Poland’s 2016 sovereign green bond notably included conservation and restoration of natural habitat and national parks. In 2015, the State of Hawaii issued a USD35m green bond to purchase land in Kahuku Koolauloa, Oahu, solely for conservation purposes.

Increasing best practice green bond investment in forestry and land conservation projects not only has a direct climate benefit, but will improve biodiversity and will bolster many of the targets set out in SDG 15

The Criteria

The Forestry Criteria and the Land Conservation & Restoration Criteria aim to provide a clear, robust and science-based screening process to identify low carbon and climate resilient forestry and land conservation and restoration investments that are aligned with a 2°C target. The development of a widely-recognised set of Criteria will reduce transaction costs and improve transparency, ultimately encouraging more investment in this sector.

These Criteria outline the requirements that forestry and land conservation and restoration related green bonds must meet to be eligible for Climate Bonds Certification.

Our Forestry Technical Working Group (TWG) and Industry Working Group (IWG) have both worked extremely hard, lending us their expertise and substantial sector experience to develop these Criteria.

Types of Projects

The Forestry Criteria cover projects and activities including, for example, plantation forestry; forest conservation and restoration; and forest supply chains.

The Land Conservation & Restoration Criteria cover projects and activities which either conserve or restore landscapes such as, for example, grasslands.

Both sets of Criteria aim to:

  1. Certify relevant assets and projects that are compatible with a 2°C trajectory;
  2. Ensure these assets and the surrounding ecosystem are adaptive and resilient to a changing climate;
  3. Raise the level of transparency in green bonds.

How long is the consultation period open for?

Public Consultation will close on the 20th July 2018. Please send your comments to Katie House (katie@climatebonds.net).

What can I review?

Review the requirements of the Forestry Criteria and the Land Conservation & Restoration Criteria in these documents:

  1. Forestry Criteria and Land Conservation & Restoration Criteria summaries - 2-page summaries of the requirements
  2. Criteria Document – full requirements of the Criteria
  3. Background Paper - background information and full detail of the TWG and IWG discussions and the rationale for the developed Criteria.

Learn more!

Two Webinars will introduce the Criteria and answer your questions – get your diaries! 

Webinar 1:

Date: Monday 18th June 2018

Time: 4pm (UK time)

Register here.

 

Webinar 2:

Date: Monday 9th July 2018

Time: 10am (UK time)

Register here.

 

What will follow the consultation period?

The TWG will review the Criteria once public consultation is complete, taking into consideration the feedback received, to then submit a final proposal to the Climate Bonds Standard Board for final approval.

Sean Kidney, CEO, Climate Bonds Initiative

“There has been a demand in the green bond market for forestry and land use opportunities for a long time – both from investors and issuers alike there has been a quest for guidance on what's really best practice in these sectors. The TWG and IWG development work has been firmly rooted in the climate science and produced a robust Criteria that we are now excited to open for public consultation."

"These Criteria will ultimately help issuers better understand what a climate compatible forestry project is and will inform investors and the market around best practice in forestry and land conservation projects. The consultation and feedback process gives all stakeholders their first exposure to the work of the TWG and the shape of what will be coming to market." 

 

Green bonds start finding application in the context of landscapes. This report uses Dutch landscapes as examples and concludes that the issuance of green bonds to finance landscape initiatives is generally possible, but certain conditions apply:

https://www.iucn.nl/files/publicaties/green_bonds_iucn_nl_digitaal_.pdf

 

 

 

This report identifies the sources of funding currently available for REDD+ and climate action in forests, and analyzes the challenges and opportunities for accessing and coordinating this finance.

It serves as a resource for negotiators, policymakers, practitioners, NGOs, and others involved with the implementation of REDD+ and climate action in forests.

Among other things, the report describes the sources of finance available for each phase of REDD+. It also provides context for future decisions about REDD+ implementation and supporting financial strategies that combine a diversity of funding sources. It lays out challenges and opportunities for accessing and coordinating finance for REDD+ and climate action in forests at the international and national level, and also challenges specific to forest landscape restoration.

Launched February 2018

Easier access to GCF resources for smaller-scale activities


GCF has introduced a new application process for smaller-scale projects or programmes:
 

  • Do you have a project that is ready for scaling up, and has the potential for transformation to adapt and/or mitigate to climate change?
  • Does it require a GCF contribution of up to USD 10 million?
  • Are the environmental and social risks and impacts minimal?

 

source: http://www.greenclimate.fund/how-we-work/funding-projects/simplified-approval-process

source: http://knowledge.wharton.upenn.edu/article/long-aid-blending-new-face-development-finance/

The traditional model of using aid for developmental work is not enough to fulfill the 2030 Sustainable Development Goals. To move at a faster pace, it is important to get the private sector to participate more and also at an early stage. At the International Finance Corporation (IFC), a sister organization of the World Bank and member of the World Bank Group, one way of involving the private sector to close the funding gap is by using more affordable financial instruments through combining concessional funds — typically from development partners — with IFC’s commercial funding.

In a conversation with Knowledge@Wharton, Nena Stoiljkovic, IFC’s vice president, blended finance and partnerships, explains how the corporation’s strategy of using blended finance helps mitigate early entrant costs and project risks. Stoiljkovic also discusses the organization’s approach of working with the private sector in developing countries to create markets that open up new opportunities.

An edited transcript of the conversations follows.

 

Knowledge@Wharton: What is blended finance and what kind of partnerships do you manage?

Nena Stoiljkovic: I have 22 years of experience in IFC and have worked on all instruments and in many different areas, different sectors, different countries, at the headquarters and in the field. I have also worked at the World Bank. Around a year ago we started thinking about how we could maximize the mobilization of the private sector by leveraging as little as possible of donor funds and public sector ODA [official development assistance] money.

Blended finance is when we blend or mix some of the more concessional instruments funded by our donors with our own funds that are more commercial in order to achieve the right risk-reward profile of the transactions and make it possible for private sector participation.

Knowledge@Wharton: This seems to be an innovation in the way that economic development is funded. What were some of the factors that made this necessary compared to the old model of just using aid?

 

Stoiljkovic: Grants, public sector funding, commercial funding through debt and equity and some short-term instruments are all very good. But the push to do more in less developed countries required a different approach. It wasn’t anymore possible to just go into South Sudan or Burkina Faso and find readily available projects or sponsors who would implement them. We realized that for us to be there early on and get the private sector interested in some of those opportunities, we would need to blend [concessional funds with commercial funds].

IFC has been blending for 10 years. In the first five to seven years, we did this maybe a little bit shyly. We used these instruments in a very disciplined way for three sectors only — climate, agri-business and SMEs — where inclusion was a big challenge, where we couldn’t push our clients, bank clients in particular. We incentivized them by using some of the more affordable financial instruments through blending. So that’s one angle… going deeper and bringing the private sector on board early on.

The second reason is donors are realizing that grants are very expensive. They are not returnable; it’s very hard to leverage them and you can only do such funding on a selective basis, in a disciplined way, in certain sectors.

With the push to do more by 2030 [to serve the 2030 Agenda for sustainable development], donors are now more interested in blended finance instruments. So you have both the demand and supply side wanting this type of instrument. We found ourselves in a situation where we could start leading among the other multi-lateral development banks and international financial institutions (IFIs) on these new instruments.

Knowledge@Wharton: If you were to look at the total volume of funds that are now part of the blended model, how does that compare to other forms of capital and how fast is it growing?

Stoiljkovic: Blended finance is still very modest in comparison to IFC’s overall volume of around $11 billion of our financing every year. On top of that we mobilize around $8 billion from other sources, normally IFC’s B Loan syndication program or other IFIs who co-finance with us. We commit on average 22 blended finance projects a year, deploying  only around $130 million  in donor funding annually. It is very little because we use it in a minimal and disciplined way, but at the same time it’s catalytic. Normally, IFC does around 400 projects every year. So a small number of projects every year out of 400 plus are beneficiaries of concessionality. And in all cases it’s minimal. As we move into more difficult markets and challenging situations, blended finance may become an even more important tool in our toolbox and as such blended amounts and concessionality needs may increase. But IFC will maintain a focus on disciplined deployment within the principle of minimum concessionality.

In terms of volume, in terms of dollars, this is not significant. The catalytic nature comes, for example, on climate projects where one dollar of concessional blended finance generates $15 of the overall financing. One thing I would like to reiterate is that we do not blend grants. We blend only instruments that can return the principal to the donor and in most cases make a small return. It’s never a grant. We use grants only for technical assistance that can support and complement blended finance instruments.

Knowledge@Wharton: Taking a step back, IFC has been around for some 60 years. What are the organization’s top priorities for the next year?

Stoiljkovic: We’ve been around for 60 years and we are still the largest source of private sector financing in emerging markets. Over the years, we have evolved in a big way. We started by taking Western companies to emerging markets. Our first deal was with Siemens, which we took to Brazil. We call this IFC 1.0. We started decentralizing in the late 1990s and early 2000s. We put a lot of people on the ground to start doing what we call 2.0, where we worked with larger countries and regional companies. We have a very large presence in all continents, in about 105 countries. But then we realized that that’s not going to be enough if we want to tackle big development challenges and if we want to go more to the frontiers, in particular, African countries.

This is where we are coming up with our new strategy, which we call creating markets, where we’ll go in early, demonstrate that private sector can do projects, and work closely with the World Bank on policy and sector reforms. We create projects and bring clients in. Then, we will try to help them with advisory services, build capacity, and then stimulate competition. That’s what we call 3.0, the new strategy of IFC.

Knowledge@Wharton: You mentioned the new strategic framework. What are some of the analytical tools that IFC has started to use to implement that approach?

 Stoiljkovic: The main one for us is what we call ex-ante development impact tool. It’s a model that is still under development but it will enable us ex-ante, before a project is approved, to decide how developmental it is versus or in complementarity to its financial assisting ability. IFC has a very strong record of profitable business and we have supported very successful and very financially viable companies.

We always wanted to demonstrate that the private sector can be profitable in emerging markets and I think that model has worked very well for us. At one point in time, we probably swung too much towards risk averseness, credit control and all of that has served us very well in the past. We now want to rebalance and make sure that our portfolio is highly impactful and financially sustainable. But not every deal has to be equally financially sustainable and impactful. This model will allow us to assess that for every project ahead of time so that we can make choices and tradeoffs as we build our portfolio.

Knowledge@Wharton: I was interested in what you said earlier about the approach of developing markets rather than just investing in companies. Could you explain how that approach changes the way in which you invest in new projects?

Stoiljkovic: It primarily changes the timing. We can wait for the countries to be ready for private sector financing and we can wait maybe for 10 years for some of those countries to introduce the right reforms, the right investment climate, to build the right infrastructure, the right set of skills. But that will mean too much waiting and we will be late to contribute in a meaningful way to what has to happen as part of the 2030 Agenda.

So we are now looking at constraints in every country, and it has to be a country-by-country approach, because different countries have different issues. We are trying to learn from one country and implement similar solutions in others. We are thinking of platforms rather than individual approaches in certain sectors.

I can mention a few examples. On the platform side — and this goes back to how we develop the markets — we have something that we call ‘scaling solar,’ where the same approach can be applied to many solar projects, for instance, across the African continent. We started with a project in Zambia where we leveraged the World Bank’s advice to the government on policies related to tariffs for solar energy. We then advised the government on how to structure the PPP transaction and do the bidding process, which was a couple of years of work, but it’s the same sequencing, the sector reform, the structure of the PPP transaction and the bidding process. And then we financed the very first transaction in solar in Zambia, which resulted in a very beneficial price for the ultimate consumer. It was around four to seven cents per kilowatt of energy, which was one of the lowest on the continent.

To achieve this we had to blend. We used IFC’s own funding of around $15 million, OPIC’s (Overseas Private Investment Corporation) funding, parallel funding for another $15 million, and we used a blended finance platform that we had from Canada for a climate project of another $15 million. This approach of policy reforms, advice on the PPP structure, bidding process and the financing mechanism is now being replicated in a second round in Zambia.

We also have a first round project coming to approval in Senegal. We can cut a lot of time by having exactly the same approach for many more solar projects. The impact is huge. There are benefits to consumers. There are obviously climate benefits because Africa has a lot of solar potential. Clearly there were benefits for the governments, and ultimately the regulatory framework will change so that this becomes possible without any blending.

We see increasingly in Africa that in some countries other than Zambia, South Africa in particular, that many of the solar projects are now taken up by the commercial sector. So institutions like IFC do not have a role, which is very good.

Knowledge@Wharton: Some research a few years ago noted that one of the major sources of value creation in the future would be women entrepreneurs in emerging economies. Some financial institutions focused on investing in such enterprises. Is this a priority for IFC?

Stoiljkovic: Yes. It’s one of the top three priorities. The first is fragile and conflict-affected countries, and most of them are in Africa. The second is climate. Blended finance instruments allow us to do more climate projects. And the third one, I would say a very prominent one, is women and maybe more broadly, entrepreneurship and SMEs.

We have a Gender Secretariat in IFC that has been very innovative and has helped us come up with a brand new strategy on women equality and women inclusion. We are trying to demonstrate that employing women, having women in leadership or financing women in enterprises is good for business. We have a number of reports and case studies on why it is good to have women in some of these roles.

For us it is a lot more than just financing women entrepreneurs, which we do through local financial institutions that we support. We encourage them to finance women and also teach them what kind of products they can use for women in some markets. We are also pushing our investing companies to have women on their boards and are working with some of our manufacturing companies to employ women. We look at women across the spectrum — employees, leaders, business owners and also women as consumers and in communities. We have a comprehensive approach and are very active in bringing women into the economy and showcasing that it is good for business.

Knowledge@Wharton: How far down to the bottom of the pyramid do you go? Say, for example, microfinance. The vast majority of borrowers tend to be women. Does IFC get involved in that?

 Stoiljkovic: Yes.

Knowledge@Wharton: What is your strategy for the bottom of the pyramid?

Stoiljkovic: Initially it was mostly microfinance in Bangladesh and in Central Asia. We worked a lot with BRAC [an international development organization based in Bangladesh] and we were on the cutting edge of some of the new approaches. That was many years ago. Now we are mostly supporting microfinance institutions to convert them into proper financial institutions, allowing them to grow.

We don’t go too far down, especially not directly, to small entrepreneurs, but we leverage all possible platforms that we have. On the equity side we leverage private equity funds that we fund. We leverage local financial institutions, in some cases microfinance but in many cases local banks, to lend to small entrepreneurs. We work a lot along the value chains, especially the agri-value chains, to include farmers. Again, not as individuals, instead we package solutions for farmers – on how to produce sustainable crops, how to finance farmers, how to make them more efficient.

The way we work, we need someone who is an aggregator. It’s usually a local financial institution or a large buyer of cocoa or cashews, or a producer. That’s the typical way IFC reaches the bottom of the pyramid individuals as you call them.

Knowledge@Wharton: Apart from microfinance there’s also the movement towards what is called fintech — financial technology, bringing about more and more financial inclusion through technology. For instance, consider peer-to-peer lending, online loans, or, in places like Africa, the rise of mobile money. Does IFC have a perspective on how its strategy would support some of these technology-driven trends?

Stoiljkovic: Absolutely. The world is going that way and we cannot ignore it. We believe that technology is disrupting the way many sectors operate. I’m thinking of logistics that IFC has been supporting for years, in retail, health and education. We have supported some of the very innovative technology-driven education concepts like the Bridge Schools in Kenya and some other African countries. Sometimes these solutions are very, I don’t want to use the word revolutionary, but they bother the host governments because they are disrupting the usual ways of delivering education or any other service.

We see leapfrogging, going to new technologies, as very possible in Africa. But not all of the countries are at the stage where Kenya is, where there was proper regulatory framework, proper mobile phone penetration to allow for some of the innovative concepts like M-Pesa to materialize. When we talk of how much fiber optic is needed to develop digital infrastructure in Africa, we’re talking about billions of dollars. This will all not happen just like that, right? Kenya is a bright and stellar example but there is so much more needed to invest in digital infrastructure and even in skills to help that leapfrogging to happen everywhere. IFC wants to be on the forefront with that, on the billions needed for digital infrastructure, working with the World Bank on regulatory framework, as well as working with specific entrepreneurs who can be innovators in many of those countries.

Knowledge@Wharton: You have mentioned IFC 1.0, 2.0, 3.0. What does IFC 4.0 look like to you?

Stoiljkovic: If we could work ourselves out of business in 2030 that would be a success. But I’m not so sure that will happen. It will be something around new technologies and going deeper into more frontiers. I think it will also involve a lot more advisory services than financing because may not necessarily need our money, there may be money or funding available somewhere else, but they will need our knowledge and experience.

 

 

source: http://knowledge.wharton.upenn.edu/article/long-aid-blending-new-face-development-finance/

 

 

This year at the Global Landscapes Forum the Landscapes for People, Food and Nature Initiative, hosted a pavilion focused on Landscape Finance. They explored the following topics:

  • catalysing collaboration and partnerships around the topics of inclusive landscape investment models,
  • how good governance and landscape finance are connected
  • finance and investment coordination at the landscape level
  • innovative new financing mechanisms to support integrated landscapes

You can catch the live recorded sessions here 

 

Crédit Agricole, Danone, Firmenich, Hermès, Michelin, SAP, Schneider Electric & Voyageurs du Monde accelerate their actions for climate & the most vulnerable populations

This new impact investment fund, with a target of 100 million euros, aims at improving the lives of 2 million people and avoiding the emissions of up to 25 million tons of CO2 over a 20-year span.

On 11 December 2017 in Paris, just before the International Climate Summit, these 8 companies will officially launch the new Livelihoods Carbon Fund. They will invite other companies and impact investors to join the momentum to reach the 100 million euros investment target as of 2018. The new Livelihoods Carbon Fund will start investing in ecosystem restoration, agroforestry and energy projects next year. Projects will be mainly implemented in developing countries in Africa, Asia and Latin America.

The companies investing in this new fund have been committed in the first Livelihoods Carbon Fund since 2011. Now, they are aiming to increase the scale and the number of projects which fight climate change by restoring ecosystems which provide vital resources to the most vulnerable populations. Moreover, these projects will enable companies to voluntarily offset part of their CO2 emissions, in addition to their own efforts to reduce the carbon footprint of their activities. These companies are strongly motivated by the results achieved by the initial Livelihoods Carbon Fund: 1 million beneficiaries among the poorest in developing countries; 130 million trees planted, equivalent to 5 times the surface area of Paris; 120 000 families equipped with efficient cookstoves which mitigate deforestation and preserve women’s health; 10 million tons of CO2 to be sequestrated or avoided (projects span over 10 to 20 years). An overview of these projects is available p. 4.

“The investment model of the Livelihoods Fund has proven that we can build large-scale projects connecting worlds seemingly far from each other: large companies acting against climate change and poor communities faced with the effects of climate change. The results we have achieved since 2011 encourage us to move forward by building on our learnings. This new fund offers an interesting platform to investors who want to have a real impact on climate”, says Bernard Giraud, president and cofounder of Livelihoods.

An innovative investment model & a coalition of partners

The Livelihoods Carbon Funds are built on an innovative business model where investors mutualize investment risks to finance large-scale projects. They do not receive financial dividends but carbon credits with high social and environmental value delivered by the best international standards*. The return on investment is therefore based on measurable social and climate impact.

The success of Livelihoods Funds’ projects is based on the cooperation between private investors, civil society and public institutions. Projects financed by the funds are co-designed with NGOs which also implement them by making the beneficiaries the first actors of change.

MORE

We're excited to share that Clarmondial and the WWF Landscape Finance Lab have produced “Capitalising Conservation”, a new report exploring how conservation organisations and their partners can mobilise private investment in conservation. The report provides a framework to guide the identification, structuring and execution of investments in conservation. It describes various roles conservation organisations can play to unlock investment capital and supports effective investor engagement.

The publication highlights how leading conservation organisations have pioneered investment strategies and structures in conservation finance, illustrated by case studies involving Conservation International, NatureVest (The Nature Conservancy), Rewilding Europe, Wildlife Conservation Society, Wildlife Works and WWF. It features a foreword by Naoko Ishii, the CEO of the Global Environment Facility (GEF), and the perspective of corporates and investment partners including Nespresso and Finance in Motion.

The Capitalising Conservation report is available here.
The press release regarding the report is available here.

The Body Shop is currently working on funding forest corridors which they refer to as Bio-Bridges. More details of this below. 

----

The Body Shop will call out for project proposals inviting conservation NGOs to submit potential and existing projects that fit with their Bio-Bridge methodology and principles below;

The World Bio-Bridges Mission has been established to build on the hugely successful launch of Bio-Bridges, connecting areas of rich biodiversity that are under threat and protecting some of the world’s most endangered animas. It follows previous pioneering Bio-Bridges projects, developed as part of the Body Shop Enrich Not Exploit™ Commitment in Vietnam, Malaysia and Indonesia, engaging millions of customers to do their bit in helping threatened orang-utans, tigers and monkeys.

Another integral part of the programme is to engage the local communities in the long term protection of the Bio-Bridge habitat by helping to provide a more sustainable way of life from them for the people who live in and around the surrounding areas.

All interested conservation NGOs are invited to submit a project draft proposal using this application form, ensuring all sections are completed. Please email your completed application form (attached below) and any supporting papers to biobridges@thebodyshop.com  All proposals will receive a confirmation email confirming receipt and next steps in the process.

For more information on the selection process please review the World Bio-Bridges Mission Terms of Reference document available on The Body Shop website. The project selection process is likely to take five to six months from receipt of the proposed projects through to final sign off. Please note, additional information or meetings to discuss the project may be required. 

Introduction to Green Finance

Posted by Deesha Chandra (Admin) Apr 19, 2017

Slides recently presented at the GEF Extended Constituency Workshop for Asia, in Vietnam.
 
The basic premise is that GEF provides the first take of the financial instrument and takes the higher risk, so that private sector would be attracted to participate. 
 
GEF-7 (2018-2022) seeks for high impact projects and landscape approaches would fit into the new criterion.
 
Slides attached below. 
 

The Nature Conservancy launches the new Conservation Investment Accelerator grant award program through NatureVest, the Conservancy’s conservation investing unit. 

The Accelerator will identify innovative conservation investment ideas with the potential to drive replicable conservation impact and generate sustained financial returns. The Accelerator is offering $50k to $250k grant awards to support proof-of-concept work, build teams/capabilities, and other uses in an effort to help build the market for conservation investments and drive impact at scale.   

Currently open for applications for the Incubation or the Implementation tracks of the award till 31st March 2017. Email questions to accelerator@tnc.org.

The Future of Funds | WRI Report

Posted by Deesha Chandra (Admin) Mar 14, 2017

The report is an initiative of Sweden's Foreign Ministry.

 Highlights

  • The next decade is critical if the world is to prevent the most catastrophic impacts of climate change, and the amount of investment required lies in the trillions of dollars.
  • The proliferation of climate funds has led to inefficiency in the channeling and delivery of finance.
  • This report proposes solutions to enhance the impact of multilateral climate funds, based on an extensive review of the literature and interviews with more than 50 stakeholders.
  • A set of five strategies is key to success:  1) scaling up impact; 2) promoting greater country ownership; 3) improving efficiency; 4) supporting equitable allocation, and 5) increasing accountabilityof operations.
  • To improve their effectiveness, these funds should undertake a series of operational and architectural reforms.
  • In the near term, funds should define their mandates and specializations to ensure an improved division of labor; in the longer term, some funds may need to merge or close.

Convergence | Open Window Fund

Posted by Deesha Chandra (Admin) Jan 22, 2017

Convergence offers grant funding for practitioners to design innovative financial instruments and products that would otherwise be too risky or complex to pursue. Through research and development grants, Convergence aims to surface the next generation of blended finance models and foster market-wide learning.

OPEN WINDOW

Under Convergence’s Open Window, programme practitioners can apply for funding to design any blended finance product that addresses a specific development challenge and meets the Open Window eligibility criteria and mission of Convergence.  LEARN MORE

PRACTITIONERS CAN APPLY FOR FUNDING FOR TWO TYPES OF DESIGN ACTIVITIES

A feasibility study to explore how the product can address a specific development challenge. Convergence will award grants between USD 50,000 and USD 200,000 for feasibility studies. Promising feasibility studies funded by Convergence will be considered for follow-on proof of concept funding.

If a feasibility study (or equivalent) has been completed, development of the product’s proof of concept to design, test and understand the product’s costs and benefits for investors and its development impact. Convergence will award grants between USD 200,000 and USD 750,000 for proof of concept work.

TWO-STAGE APPLICATION PROCESS

Stage one: Practitioners are first required to submit a proposal (maximum 5 pages). The proposal includes an overview of the product and proposed design activities. In addition, it summarizes the practitioner’s qualifications and experience. Convergence will review proposals according to the Funding Window eligibility criteria and mission of Convergence and select a shortlist of the most promising proposals.

Stage two: If shortlisted, practitioners will then respond to clarification questions from Convergence and provide additional information if required. Convergence’s Funding Approval Committee, composed of independent experts, meets every quarter to assess shortlisted proposals and recommend proposals for funding.

The minimum time period from the date an applicant submits a proposal to the date funding is awarded is 1 month, and the maximum time period is 4 months.

----

Fund Size: USD 75M 

Deal Size: USD 50K - USD 750K

Locations: Emerging and frontier markets 

Focus industries / activities: Feasibility studies and proof of concept activities for innovative financial instruments and products

Contact: design.funding@convergence.finance

Link: https://www.convergence.finance/design-funding

 

Food Securities Fund

Posted by Paul Chatterton (Admin) Nov 26, 2016

Luxembourg, 22 November 2016 - A new fund that supports responsible agricultural practices in emerging markets.

Building on its work with leading global corporates and strategic investors, the Swiss-based investment advisor Clarmondial has finalized agreements with Duff & Phelps (Luxembourg) Management Company S.A.R.L. and Pictet Asset Services to launch a first-of-kind fund to finance responsible agricultural businesses in established supply chains.

An open-ended, AIFMD-compliant vehicle will be established in Luxembourg to serve as an affordable credit channel for agricultural producers committed to sustainable environmental and social practices. In particular, the fund will seek to benefit smallholder farmers in emerging and developing countries that operate to industry best practices.

This innovative fund has been developed using a demand-driven approach in partnership with strategic investors, corporates and farmers. As a scalable, commercial, fixed income product, the fund addresses the increasing agricultural value chain finance gap as well as investors’ demand for alternative products contributing to sustainable agriculture, food security, climate smart agriculture and smallholder finance.

Fund Size: Starting at $50m, with $20M already soft circled and letters of support from 5 large corporates.

Deal Size: Average investment size rom $1m and up.

Locations: Emerging markets (including Brazil, Costa Rica…)

Focus industries / activities: Focusing on products that are internationally traded in USD.  Looking for loans with terms of less than 12 months initially.

Contact: Tanja Havemann, CEO Clarmondial AG th@clarmondial.com  

More details here

This WWF report shows how global banks can contribute to the fight against deforestation in the Amazon. By putting in place strong social, environmental and governance standards, banks can ensure they avoid lending to companies whose practices are driving deforestation and instead promote sustainable business practices.

The research found that sectors including agriculture, cattle ranching, and extractive industries including oil and gas exploration, mining and logging, are known to be driving deforestation in many cases. The investment community can therefore play a role in promoting good practice.

As part of this research, WWF analysed the environmental and social policies of ten leading financial institutions.  It found that although many of these global banks are making strides in improving their policies, they have opportunities to put in place stronger safeguards to avoid lending to companies that drive the loss of forest habitat in fragile regions, such as the Amazon.

Banking on the Amazon report

Released 15 Nov 2016.

Tropical Landscapes Finance Facility (Indonesia)

Posted by Paul Chatterton (No Access, has been declined) Nov 2, 2016

The Tropical Landscapes Finance Facility, launched in Jakarta on 26 October 2016, will bring long-term finance to projects and companies that stimulate green growth and improve rural livelihoods.

Consisting of a loan fund and a grant fund, the facility will help Indonesia promote economic development while contributing to hitting its climate targets under the Paris Agreement. The facility will use public funding to unlock private finance in renewable energy production, and sustainable landscape management that reduces deforestation and forest degradation and restores degraded lands.

"This ground-breaking and innovative financial platform, a world's first, can transform the lives and livelihoods of millions of Indonesians in rural areas that deserve it the most," Dr. Kuntoro Mangkusubroto, Chair of the Steering Committee of the facility, told the audience at a launch event hosted by the Indonesian government.

H. E. Darmin Nasution, Coordinating Minister for Economic Affairs, Republic of Indonesia, said, "The Indonesian Government realizes that we can only achieve the Sustainable Development Goals through holistic policies such as integrated landscape management. The Tropical Landscapes Finance Facility aims to improve smallholder productivity while at the same time conserving our natural environment."

Key partners include BNP Paribas and ADM Capital, which will act as fund manager for the loan fund. UN Environment will manage the secretariat. BNP Paribas is a member of the UN Environment Finance Initiative.

"The facility will trigger progress across a number of the sustainable development goals, including saving the climate, protecting biodiversity and fostering renewable energy. It will provide access to long-term finance at affordable rates, which is essential for smallholder producers and investments into sustainable landscapes."

_______________

Area: Indonesia

Finance: $138 M initial tranche

Methodology: Bond; loan; grant

_______________

Press release

Livelihoods Fund

Posted by Deesha Chandra (Admin) Oct 6, 2016

Overview: Livelihoods Venture manages the two Livelihoods funds with a mission for eradicating rural poverty: the Livelihoods Carbon Fund and the Livelihoods Fund for Family Farming (Livelihoods 3F).

The Livelihoods Carbon Fund was initiated in 2011 (originally as the Danone Fund for Nature) and has 10 large company investors (including La Poste, Crédit Agricole S.A. and Hermès), as well as partner NGOs and institutions. To date it has invested in 9 projects, with 10M tons of carbon offsets expected and 20,000ha of land restored.

The Livelihoods 3F fund has the mission to secure thriving livelihoods for smallholders through the adoption of sustainable agriculture. It was founded by Mars and Danone in 2015 and has since had two further corporate investors: Firmenich and Veolia.  The fund aims to impact 2 million people and convert 200,000 farms to sustainable agriculture.  As the newer of the two funds it is the most promising for those seeking project finance.

What does it fund?:

The Livelihoods Carbon Fund invests in mangrove restoration, agroforestry and rural energy projects that mitigate carbon emissions.  These projects are in developing countries in Africa, Asia or Latin America.  It invests in the projects over a 3-4 year time horizon but assists in the co-management of the projects for the entirety of their duration (ecosystem restoration and agroforestry projects for 20 years; and rural energy projects for 10 years).

The Livelihoods 3F fund will invest in large scale sustainable agriculture projects that take an integrated landscape approach and involve rural farming communities. It is currently structuring its first pilot project and also has a focus on developing countries in Africa, Asia and Latin America.

Fund mechanism:

The Livelihoods Carbon Fund has €40M in capital and in return for project investments, the corporate investors receive carbon credits.

The Livelihoods 3F fund has €120 million invested to-date (investors are still being recruited). It is a mutual investment fund with share risks and results-based returns.  Upfront financing is provided to project developers and financial return for the fund is provided by private and public off-takers who pay fees for the raw materials, public goods and environmental services generated from the fund's projects.

Eco Enterprises Fund

Posted by Deesha Chandra (Admin) Oct 6, 2016

Overview: EcoEnterprises launched its first impact fund in 2000 under The Nature Conservancy and since 2010 became an independent investment manager.  It has since deployed a second fund and a third fund is expected in 2016.

What does it fund?: Small businesses that are generating profitable livelihoods for rural communities in Latin America in fast growing sectors e.g. organic agriculture, aquaculture, innovative food systems, ecotourism, sustainable forestry and wild-harvested forest products.  For example, EcoEnterprises’ first fund invested over $6 million in 23 business in 10 countries in Latin America from organic shrimp to biodynamic flowers and acai juice smoothies.  The second fund has more of a focus on companies at the next stage of business growth, providing expansion capital to bring the businesses to scale.

Fund mechanism: The mechanism for the third fund is not yet clear but EcoEnterprises’ second fund provides investments ranging from $500,000 to $5 million (average of $2.5 million).  It uses instruments from mezzanine, quasi-equity, structure royalty streams and warrants, convertible notes and long-term debt financing.  Public and private entities are invested in the fund, from JP Morgan to the European Investment Bank and Oiko Credit.

Moringa Partnership

Posted by Deesha Chandra (Admin) Oct 6, 2016

Overview: Moringa Patnership's mission is to create economic benefit for investors while building environmental and social resilience in land use. Co-founded by La Compagnie Benjamin de Rothschild and ONF International, it has a number of public and private investors, including the Global Environment Facility, the Skopos Impact Fund and two development banks and works together with a number of science partners: World Agroforestry Centre, CIRAD and Institut de recherche pour le développement.

What does it fund?: It funds profitable larger scale agroforestry projects that have large environmental and social benefits (viewing agroforestry as ‘inherently sustainable’).  The portfolio projects might have permanent crops under tree shade, timber plantations with sequential agroforestry, orchards with crops or combine livestock with trees.  The fund focusses on Latin America and Sub Saharan Africa (with a particular focus on certain countries).

Fund mechanism: The fund has a target fund size of €100m and makes equity and quasi-equity investments ranging from €4m to €10m. Revenue streams from the projects are expected to take the form of agricultural, forestry and carbon market revenues. It also has a grant-based technical assistance programme to help with project preparation, capacity building and technical strengthening, as well as dissemination of the fund’s achievements.

Permian Global

Posted by Deesha Chandra (Admin) Oct 6, 2016

Overview: Permian Global was set up to help address climate change.  It has an ethos of building strong collaborations with investors, project partners, governments and communities.

What does it fund?: Permian Global funds projects that protect and restore natural tropical forest (its focus is on non-extractive forest management), whilst maximising carbon storage, sequestration and co-benefits.  For example, one of its flagship investments is in the Katingan Peatland Restoration and Conservation Project.  This project works to protect a peat forest in Indonesian Borneo from degradation or conversion by supporting local people to develop sustainable sources of income, such as from agroforestry and non-timber forest products.

Fund mechanism: Investors (typically companies and countries) receive high quality carbon credits that can be sold in the compliance and voluntary carbon markets to generate revenue.

WWF team contact(s): 

Overview: Althelia’s mission is to finance the transition to sustainable land use: reducing deforestation, mitigating climate change, protecting biodiversity and providing a fair and sustainable living to rural communities.

What does it fund?: Sustainable land use activities in Africa, Latin America and Asia that generate real assets e.g. certified agroforestry produce or ‘environmental assets’ e.g. carbon.  Projects are sought in which Althelia can be part of a public private partnership.  Typically it funds early-stage projects or pilots that are perceived as too complex or risky for conventional financiers.

Fund mechanism: Loans with re-payments as carbon assets or certified produce that can then be sold for a premium.  Less than 30% is provided upfront with a focus instead on payment for performance.  The fund is financed through a combination of public and private investors with long-term support provided by Conservation International.  The team works with the project partners on project development to find premium markets and to commercialise project off-take. Project finance has ranged from US$7-12 million.

Overview: Partnerships for Forests is funded by UK DFID and managed by Palladium and McKinsey & Company in order to ultimately reduce deforestation, reduce poverty and conserve biodiversity through private investment in forestry and reduced-deforestation agriculture.  This fund was set up in December 2014 as a £137 million programme (£60m technical assistance facility; £70m investment facility).  It will run for 10-15 years, starting with an initial investment phase of four years. 

What does it fund?: Partnerships between private sector companies, public sector actors and communities that catalyse investment in forests and sustainable land use.  Also supports initiatives that increase the demand for sustainable commodities (e.g. implementation of corporate supply chain commitments, public procurement policies or new responsible sourcing efforts) or those that create an enabling environment for sustainable investments by unblocking critical barriers.  For example, it has committed £1m for the TFA’s West Africa palm oil initiative. It has a geographic focus of East, West and Central Africa and South East Asia.

Fund mechanism: Blend between technical assistance and grants to help Partnerships reach the market (idea development, business planning, deal negotiation and commercial scale-up)

Proposal process: [No public information yet on how to submit a proposal]

Overview: The Impact Investment fund for Land Degradation Neutrality (to be launched by December 2016) will combine public and private funds to help catalyse progress on restoring 12 million hectares of productive land each year to meet the SDG target 15.3: striving to achieve Land Degradation Neutrality by 2030.  The fund has been co-promoted by the Global Mechanism of the UNCCD and Mirova and is managed by Mirova. 

What does it fund?: It will finance rehabilitation of degraded land and sustainable business models on upgraded land.  Specifically, the fund aims to support projects taking a landscape approach to managing trade-offs across a number of sectors involved in land use, including agriculture, forestry, energy, conservation and land reclamation.  Initiatives will need to demonstrate a bottom-line return on investment: financial returns (generating revenues from sustainable land use), environmental and social benefits.  They will undergo a rigorous process of due diligence to demonstrate: 1) their contribution to land degradation neutrality; and 2) the environmental and social risk management plans during the project lifecycle. 

Fund mechanism: The fund envisages blended finance from institutional investors, impact investors, development finance institutions and donors.  In addition to direct investments into larger scale projects, the Fund also anticipates indirect financing via financial intermediaries and like-minded investment funds.  It is unclear when the fund will be in a position to start offering finance.

Further info LINK

Overview: The Carbon Fund is a funding mechanism under the World Bank-led Forest Carbon Partnership Facility (FCPF). It is designed to pilot performance-based payments for emission reductions from REDD+ programmes in a small number of countries having undergone readiness work funded by FCPF. The Carbon Fund became operational in 2011 and is expected to run until 2025.

What does it fund?: The CarbonFund aims to “provide incentives to reduce emissions while protecting forests, conserving biodiversity, and enhancing the livelihoods of forest dependent Indigenous Peoples and local communities”. Criteria considered to select programmes include political commitment to REDD+ at the country level, readiness progress, technical soundness, scale, potential to generate a large volume of high-quality and sustainable emission reductions, stakeholder participation, and noncarbon benefits. Only the countries that have had a Readiness Package endorsed by the Readiness Fund of the FCPF are eligible for Carbon Fund funding. The Carbon Fund’s pipeline currently includes emission reduction programmes from 11 countries (Chile, Costa Rica, Democratic Republic of Congo, Ghana, Guatemala, Indonesia, Mexico, Nepal, Republic of Congo, Peru, and Vietnam).

Fund mechanism: US$456 million multilateral fund supported by contributing governments (European Commission, Australia, Canada, France, Germany, Norway, Switzerland, UK, US) as well as BP Technology Ventures Inc and TNC. Finance is available in the form of results-based financing, namely payments for verified carbon emission reductions and enhancements in forest carbon stocks.

Proposal process: There are a number of processing steps to go through to obtain funding. The country must first submit a Project Idea Note (ERPIN). If the Note is selected, the country must submit a signed Letter of Intent from its REDD+ country authorization entity, after which it can submit a Project Document (ERPD) for review and selection by the Fund. ERPIN and ERPD templates as well as the Fund’s methodological framework are available here

 

World Bank BioCarbon Fund

Posted by Deesha Chandra (Admin) Oct 6, 2016

Overview: The World Bank BioCarbon Fundis a public-private sector carbon fund with a land use focus, funding projects that create landscape-scale transformations and which directly benefit poor farmers.  In November 2013 the Fund launched the “Initiative for Sustainable Forest Landscapes” (ISFL).

What does it fund?: The ISFL fund seeks to reduce greenhouse gas emissions from the land sector.  Developing county national governments can apply to the fund with landscape-scale projects that take an integrated approach to the trade-offs and synergies between different land uses.  Specific focus areas include reducing deforestation and forest degradation, implementing climate-smart agriculture and embedding smarter land-use planning, policies and practices – see the selection criteria for these areas.  It also has a particular focus on improving the enabling environment for the private sector and its role in innovation, finance and supply chain transformations.  As such, the fund has been endorsed by a number of multinational companies: Unilever, Mondelez & Bunge. The fund has formally opened programmes in Ethiopia, Zambia and Columbia, with Indonesia still under consideration for inclusion.

Fund mechanism: US$360 million multilateral fund supported by donor governments (Germany, Norway, UK, US). Finance is available both in the form of grants for technical assistance, capacity building and implementation (though BioCFplus) and in the form of results-based payments for emissions reductions (BioCF tranche 3).

Proposal process: Detailed information on proposal submission to ISFL is not readily available but entities interested in participating should contact Biocarbonfund@worldbank.org.  The first proposal stage is to submit a Project Idea Note.

Global Environment Facility (GEF)

Posted by Deesha Chandra (Admin) Oct 6, 2016

Overview: The Global Environment Facility was established in 1992 and the Global Environment Facility Trust Fund (GEF) now acts as the financial mechanism for five international conventions.  Every four years the Trust Fund is replenished based on donor pledges (currently from 39 donor countries). 

Note that the GEF also administers other trust funds, namely the Least Developed Countries Fund (LDCF), the Special Climate Change Fund (SCCF), the Nagoya Protocol Implementation Fund and The Adaptation Trust Fund.

What does it fund?: The GEF provides grants to meet the incremental cost of converting projects with national benefits into projects with global environmental benefits.  Project proposals have to address one of its six focus areas: biodiversity, climate change, chemicals & waste, land degradation, international waters & sustainable management of forests/REDD+.  This is in addition to a number of GEF programme areas that are more multi-focal and cross-cutting in nature, for example food security and public-private partnerships.  One of these cross-cutting programmes is of specific relevance - Taking deforestation out of global commodity supply chains (soy, beef & palm oil): nearly US$500m of funds ($40m from GEF; $443m co-finance) aiming to bring 23 million ha of land under sustainable management practices and to mitigate 80 million tCO2e.  The GEF places particular importance on linking efforts with the work of governments, effecting change across the entire supply chain and strengthening efforts from a wide-range of different stakeholders.  It will fund projects that can overcome current barriers in the supply chain or which create replication of existing siloed initiatives.  The sub-programmes of work include: support to production, enabling transactions, generating responsible demand and adaptive management and learning.  To-date this cross-cutting programme of work has been in the intuition phase: working on fund design and conducting consultations.

The GEF focusses on those countries that are members of the relevant convention, eligible under that convention’s criteria, eligible for UNDP technical assistance and eligible to borrow from the World Bank.  The full criteria are here. Support can be provided to government agencies, civil society organizations, private sector companies and research institutions. 

Fund mechanism: The fund provides grants – issuing $14.5 billion in grants to date.  Project grants can range from several thousand dollars up to several million dollars.  There is also a Small Grants Programme for Civil Society Organizations. 

Proposal process: There are a number of stages that an organization should go through in order to access GEF funding, including contacting the Operational Focal Point in the country, meeting the eligibility criteria, choosing a GEF Agency* and selecting a modality (full-sized project/medium-sized project/enabling activity/programme).

* Project proposals have to be in partnership with one of the 18 GEF Agencies, of which WWF-US is one.  GEF agencies are responsible for developing, implementing and managing the projects. 

Proposal templates

More information on the existing partnership between WWF and GEF can be found on PSP Share here

Green Climate Fund (GCF)

Posted by Deesha Chandra (Admin) Oct 6, 2016

Overview: The Green Climate Fund is an international public sector fund established by 194 governments that is focused on low carbon and climate-resilient development in developing countries.   It is accountable to the UN and has a mandate to serve the UN Framework Convention on Climate Change having been established at the 16th Conference of the Parties. 

What does it fund?: The GCF aims to deliver equal amounts of funding to climate change mitigation and adaptation with a reasonable and fair allocation across a broad range of developing countries.  It also supports technology development and transfer, capacity-building and preparation of national reports.  Its investment criteria are: country ownership, climate impact potential, paradigm shift potential, sustainable development potential, needs of the recipient, economic efficiency and financial viability for revenue-generating activities (see the full investment framework).  The fund also has a target to maximise engagement with the private sector, including through allocating funds to the Private Sector Facility.

Fund mechanism: To-date the GCF has raised US$10.3 bn in pledges from 43 state governments, notably from the USA, Japan, UK, France and Germany (it also accepts pledges from regional governments and cities).  Of the contributions, $424.6 million has been approved towards projects and programmes. Projects can access grant funding from the GCF at the following scales: micro projects ≤$10m; small projects >$10m and ≤$50M; medium projects >$50m and ≤$250m; large projects >$250m.

US$16 million is available as grants for readiness and preparatory support activities (capped at US$1 million per year to individual developing countries).  A minimum of 50% of this fund is targeted at particularly vulnerable countries.

Proposal process: Each developing country allocates a National Designated Authority or Focal Point which are the interface between each country and the fund to ensure that funds are allocated in line with the country’s strategic priorities. Every proposal to the GCF must be accompanied by a “no-objection letter” signed by this authority evidencing the country's support for the proposed project.

Projects and programmes can then access funding by going through a process of accreditation or by working together with accredited implementing entities and intermediaries (these might be private, public, non-governmental, sub-national, national, regional or international).  The fund started approving projects in 2015 and receives funding proposals for consideration on a rolling basis. Click here for the proposal templates for concept notes.

GCF has introduced a new Simplified Approval Process with project preparation funds of up to USD 10 million. 

WWF GCF Steering Committee page here.

Load more
Share