German bilateral financial
cooperation for forests
Johannes Scholl
June 2013
Bank aus Verantwortung
International activities of KfW
Task
Financial Cooperation with Developing
Countries
● Promotion of reform processes,
Objectives
investments/advisory services in
cooperation with governments and
public institutions in developing &
middle income countries
● Climate / Environment
Areas
Market entry
Entrepreneurial Development
● Promotion of the private sector in
developing & middle income countries
● Financing of investments and advisory
services for small and medium enterprises
International Finance of Exports and
Projects
● International Finance in the interest of
the European and particularly the
German Economy by promoting exports
and overseas investments
● Climate / Env.
● Energy/Trade
● Financial System Development
● Infrastructure
● Telecom
● Economic Infrastructure
● Transport
● Health
● Social Infrastructure
● Manufacturing
● Commodities
● Very early phase
● All economic sectors
● Early phase
● Mature markets
KfW Entwicklungsbank
Target
Markets
DEG
KfW IPEX-Bank
Developing Country
Middle Income Country
Industrialized Country
2
Financing Instruments of KfW Development Bank
Tailor-made Financings for Every Partner
Financial Cooperation
Budget funds
2012  EUR 1,639 million
KfW funds
2012  EUR 3,091 million
Concessional finance
Budgetary funds only
Development loans
 Grants and Standard Loans
EUR 1,526 million
 Combination of budgetary and
KfW funds
Promotional loans
• KfW funding only
 EUR 1,603 million
Budgetary funds: EUR 112 mn
KfW funds: EUR 1,487 million
3
Finance for Biodiversity / Forests: An upward trend
KfW Appraisals, Committments and Disbursements for Biodiversity (2008-2012, million EUR)
250
200
150
Prüfungen
Zusagen
Auszahlungen
100
50
0
Quelle: KfW
2008
2009
2010
2011
2012
Source: KfW
Forestry-related projects around 30% of biodiversity committments
4
Three-dimensions of improved framework conditions
› RIGHTS: Clarify rights and secure access to resources
› CONTROL: Enhance public and social control capacity
› INCENTIVE: Promote sustainable practices of resource use
5
Example: Forest Management in the Amazon, Brazil
› Objective: Sustainable Management of Public Forests in the Amazon
› Partners: Brazilian Forest Service (SFB) and Nature Conservation Agency (ICMBio)
› Activities:
› RIGHTS: Preparation of public forests for concession (Plans, Demarcations etc.)
› CONTROL: Building-up a decentralized SFB management structure
› INCENTIVE: Building-up a regional center for applied education
› INCENTIVE: Financing a pilot facility for energetic use of wood
› Grant: EUR 15 Mio.
› Duration: 12/2011 – 12/2015
6
1. Antecedentes
Some expected impacts by 2015:
-Decrease of deforestation by 30%
-2 million hectares under concession
-Annual production of 1 million m³ sustainable timber
-7-
7
Some requirements for Financial Cooperation
› Intergovernmental agreement
› Public implementation partners
› Positive social and enviromental impacts
› Scale
› Bankability
8
Thank you!
johannes.scholl@kfw.de
martin.geiger@deginvest.de
Bank aus Verantwortung