Shaping the future tree by tree ForestFinance Group– Building Forests Scaling up private investments – opportunities and challenges Forests for Future Generations Berlin, 12 June 2013 1 The ForestFinance Group – Who we are • Pioneer in the afforestation of tropical mixed forests and agro-forestry projects as a direct investment • Over 17 years of experience • Operations in Panama, Colombia, Peru, Vietnam (approx. 16,000 hectares of managed area) • More than 12,000 customers and investors • Over € 56 mio. investment volume • 114 employees, further 514 employed by our forestry service providers 2 Our business principle – Giving forests a value Investment Retail Market WoodStockInvest ForestSavingsPlan TreeSavingsPlan CocoaInvest GreenAcacia Pure Forest I (Fund) Development Carbon Consulting Financial assessments Customized climate and forest investment projects Forest Carbon Projects Carbon trade PDD Development Forest Carbon Projects 3 Our locations – Projects by ForestFinance Project “Wilde Buche”, Germany Reforestation and cocoa, Panama Cocoa plantation Peru DeveloPPP and Acacia Plantation in Ba Che, Vietnam Acacia Nurseries and Reforestation, Colombia 4 Case studies – GreenAcacia, Vietnam Capacity Building - develoPPP • Embedded Training-of-Trainer (ToT) project: Knowhow transfer (according to FSC standard) • Nationwide rollout planned • Supported by BMZ and Sequa Existing acacia monocultures are converted to mixed stands Direct investment opportunity for private investors with ecological and social benefits 5 – Unlocking Financing for CSA in Vietnam Agroforestry Partnership Fund (APF) The Green Growth Action Alliance: objectives Capacity Building - develoPPP The Green Growth Action Alliance (G2A2) was formed at the G20 summit in Los Cabos in 2012, • and Embedded Training-of-Trainer (ToT) project: is currently composed of 50+ members Knowhow (according to FSC standard) The goal oftransfer the Alliance is to significantly increase private financing for green growth within the two years, by planned demonstrating progress that can be made by mitigating risk and by designing • next Nationwide rollout and deploying innovative financing mechanisms in developing countries • Supported by BMZ and Sequa Climate Smart Agriculture under the G2A2: the proposal Guiding question: can G2A2 develop a concrete innovation that demonstrates how public finance can be leveraged to attract private capital to scale CSA? Vietnam pilot: the Case and the Opportunity The Vietnam Ministry of Natural Resources and Environment’s 2011-15 Green Growth Strategy is a bold proposal to transform Vietnam’s agricultural sector to deliver a 20% reduction in emissions, 20% reduction in poverty and 20% increase in growth Vietnam is one of the nations with the highest vulnerability to climate change Vietnam will need to make its agriculture ‘climate smart’, i.e. increase resilience (adaptive capacity), meet food security objectives and reduce net national GHGs. Vietnam offers a great country pilot to develop finance innovations to implement and scale CSA bottom up 6 – Unlocking Financing for CSA in Vietnam Agroforestry Partnership Fund (APF) The Agroforestry Partnership Fund (APF) Capacity Building - develoPPP The Agroforestry Partnership Fund aims to achieve maximum leverage of private investments • Embedded Training-of-Trainer project: through packaging a diverse(ToT) Project Portfolio that consists of diverse ‘climate smart’ Knowhow transfer (according to FSC standard) agro/forestry projects, with an equally diverse range of sources of revenue and levels of profitability. • Nationwide rollout planned • Supported To ensure by theBMZ impact of the fund, it is directly related to achieve ‘climate smart’ objectives. A and Sequa diverse range of financial, environmental and social metrics has been developed that projects will be evaluated against. Ownership and organization of the APF Vietnamese ministries etc. are involved and will be represented on the Advisory Board State Bank of Vietnam (SBV) commits to match investments with further 20% (80/20) The fund will target institutional investors such as asset managers, pension funds, insurances, banks and companies with specific focus on G2A2 members Initial target volume is USD 50 million expected to grow substantially in a second phase 7 Thank you very much Dirk Walterspacher Managing Director Carbon Business Forest Finance Group Eifelstr. 20 53119 Bonn Fon: 0228/94 37 78 0 8