Workstream 3:
Access to Finance and Innovative
Finance Mechanisms
Context and objectives
Matt Rayment
Consulting Director at ICF
International and Workstream
leader
Brussels, 21/11/2014
Workstream objectives
 Identify and profile biodiversity investment
opportunities (e.g. pro-biodiversity business/certified
products; biodiversity offsetting and habitat banking,
PES schemes and bio-carbon markets, financial
services);
 Identify funds and financial instruments providing
investment in biodiversity in the EU and worldwide.
 Identify key actors in the financial sector
championing integration of biodiversity into
investment decisions.
EU Business and Biodiversity Platform
Objectives
Approach
Key findings
Further work
Approach and method
 Call for evidence from members, observers and representatives
(4/4 – 15/5)
 Analysis of responses to the call for evidence, and further
contextual research.
– Focusing on the three sub-themes of investment opportunities, investment funds
and finance sector champions
– Supplementing examples from members with wider experience
 Development of finance case studies
 Draft and finalise report on the Finance Workstream, in
discussion with Commission and B@B members, observers and
representatives.
 Showcase report and case studies on website.
EU Business and Biodiversity Platform
Objectives
Approach
Key findings
Further work
18 submissions were received from Platform
members, resulting in 15 case studies
 Biodiversity Investment Opportunities
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Sinergiae Ambiente: adding value through certification.
CDC Biodiversité: exploring long-term opportunities for biodiversity offsets.
CDC Biodiversité: developing payments for ecosystem services in the water sector
SAR Consult : supporting catchment-scale actions.
European Green Roof Association: maximising the potential of urban green roofs.
Green4Cities: securing new forms of finance for urban Green Infrastructure.
Ecoacsa: growing the market for biodiversity offsets in Spain.
EDF: exploring innovative financing mechanisms for biodiversity & ecosystem services
 Biodiversity Funding Mechanisms
– The Nature Conservancy: tapping impact investment for natural capital.
– PIRAEUS Bank Group: providing targeted conservation finance for Natura 2000.
– VCA Platform: Investing in verified conservation
 Finance Sector Champions
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Sumitomo Mitsui Trust Holdings: pioneering pro-biodiversity investment products.
CDP: mobilising shareholders for pro-biodiversity investment.
WWF China: integrating sustainability in the Chinese financial sector.
CoP FINC: building financial sector sustainable investment capacities.
EU Business and Biodiversity Platform
Objectives
Approach
Key findings
Further work
Key findings – Biodiversity investment
opportunities
 Action for biodiversity creates investment opportunities in:
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Certified goods and services;
Biodiversity offsetting and habitat banking;
Green infrastructure; and
Payments for ecosystem services and bio-carbon markets.
 B@B Platform members are involved in each of these areas
 This is creating new demand for finance and innovative
financing models
 Members identify a range of actions that would facilitate
investment opportunities, including:
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Regulation
Harmonisation of standards
Piloting new projects and financing methods
Improved evidence, information and awareness
EU Business and Biodiversity Platform
Objectives
Approach
Key findings
Further work
Key findings – finance for biodiversity
 Demand for finance is increasing
 Biodiversity investments are often novel, complex, uncertain,
poorly understood and/or perceived to be risky
 Specialist instruments are emerging – venture capital,
banking services, green bonds, specialist funds
 New EU Natural Capital Financing Facility offers opportunity
to develop and demonstrate new sources of finance
 Public/private/NGO partnerships creating new opportunities
 B@B Members identify a range of actions that would facilitate
finance, including:
– Co-operation and partnerships – NGOs, public and finance sectors
– Government support to pilot new approaches, lever-in private finance
– Information and advisory services
EU Business and Biodiversity Platform
Objectives
Approach
Key findings
Further work
Key findings – finance sector champions
 Biodiversity considerations are increasingly being
integrated into financial decisions. Key areas of
progress include:
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Financial sector standards
Advisory, information and training services
Reporting
Associations of sustainable investors
Stock market indices
 B@B Members identify a range of actions, including:
– Partnerships between conservation and finance communities to
harmonise and promote standards
– Working groups to strengthen integration of biodiversity
– Specialist guidance and toolkits
– Development of indicators and performance measures
EU Business and Biodiversity Platform
Objectives
Approach
Key findings
Further work
Possible work for 2015
 Exploring opportunities provided by EU finance, including the
Natural Capital Financing Facility, Horizon 2020, other EU grants
and financial instruments
 More detailed mapping of financing initiatives and instruments
for biodiversity in the EU, examination of funding gaps, needs,
opportunities and possible enabling actions.
 More detailed analysis of financial needs and opportunities in key
areas of biodiversity action (certified products, offsets, GI, PES,
biodiversity friendly businesses)
 Analysis of key tools and enabling actions at EU level to
integrate biodiversity into financial decisions – e.g. information,
guidance, standards, collaborative approaches, common EU
standards and guidelines
EU Business and Biodiversity Platform
Objectives
Approach
Key findings
Further work
Workstream 3:
Access to Finance and Innovative
Finance Mechanisms
LIFE-Stymfalia: Sustainable Management and
Financing of Wetland Biodiversity - The case
of Lake Stymphalia
Dimopoulos Dimitrios
Head of Environment Unit
Piraeus Bank Group
Brussels, 21/11/2014
Environment Strategy: Climate and Biodiversity
(our facilities)
Neighbours (our
clients and
shareholders)
Society (our
stakeholders)
• GREENbanking4Life
(2006-2009)
• GREENbanking4Life
• Climabiz (2010-2012)
• climabiz
• LIFE-Stymfalia
Home
(2013-2017)
10
LIFE-Stymfalia: The nature of business
LIFE12 NAT/GR/000275
Project funding
Co-funded by the European Union
“LIFE+ Nature and Biodiversity”
Programme
Total project budget € 2.013.290
EC financial
contribution
€ 1.006.646 (50%)
Project duration
October 2013 - September 2017
Coordinating
Beneficiary
Piraeus Bank
Associated
Beneficiaries
Piraeus Bank Group Cultural
Foundation, Municipality of Sikyonion,
OIKOM Environmental Studies Ltd,
Society for the Protection of Prespa,
Center for Renewable Energy Sources
and Saving
The aim of the project is the restoration
of Lake Stymphalia and its long-term
protection and management, through a
systematic re-financing process, which
will be ensured by the commercial
utilization of the area’s biomass.
11
Conservation Finance for Natura 2000
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Enhancement of the conservation
status of target-species and their
habitats
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Institutional protection through
management plan
Local Management Unit
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Thematic exhibition at Environment
Museum of Stymphalia (Piraeus Bank
Group Cultural Foundation)
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Environmental interpretation path
and bird watching hide
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Farmers’ network (responsible
farming practices)
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Investment interest for biomass
utilization → new green jobs.
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Workstream 3:
Access to Finance and Innovative
Finance Mechanisms
Community of Practice
Financial institutes & Natural Capital
Caroline van Leenders
Sustainable Transition Manager
The Netherlands RVO
Brussels, 21/11/2014
The concept of CoP FiNC
• A Community of Practice for learning on reducing impact
on NC, accelerating eco-positive practice and knowing
systemic barriers on natural capital
• NC is the stock of ecosystems delivering a renewable
stream of services and goods for companies
• 14 people (CSR-managers) of various financial companies:
banks, pension funds, private equity, insurance companies
and a crowd funder
• 4 private meetings a year with inspiring speakers,
homework and exchanging practice in small groups
• The CoP decides on the theme of each meeting,
government facilitates the process
• An expert group for changing system rules
Strategy and business case
Insights
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Most financials are unknown with the concept of NC and do not have clear policy
Financials want to know materiality, business case and strategy
Measuring impact : generic indicators for financials: CO2, water and land use (80%)
and context depend issues waste, specific species and ecosystems (20%)
Important to differentiate between asset classes for the business case and kind of
players
Impact investing and green bonds for niche players and familily funds
Strategies: creating awareness by voting on shareholder meeting, engagement
policy, exclusion, ESG screening, positive impact investing, new instruments
(Green of Climate bonds)
Obstacles
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Making NC measurable in terms of money and/or risks
Limited scale of the investing possibilities
Limited mandate of clients and regulators
International coordination
11 December 2014 Dutch Green Deal on Transparency of
Natural and Social Capital (with the Natural Capital Coalition)
will host an international gathering of key public and private
sector policy makers engaged in natural and social capital
policy to
1. Share knowledge and experiences and to stimulate the
discussion on transparency of natural and social capital
amongst public and private sector practitioners
2. To scale up the international movement on social and
natural capital valuation by bringing together parties from
different countries.
3. To shape an international policy dialogue on social and
natural capital policy
Workstream 3:
Access to Finance and Innovative
Finance Mechanisms
“NatureVest” initiative
Lara Yacob
Director of Corporate
Engagement
The Nature Conservancy
Brussels, 21/11/2014
Criteria for NatureVest Deals
NATUREVEST STRATEGIES
LAND
CLIMATE
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Sustainable Agriculture
Land Conservation Partnerships
Mitigation
Community Development
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Mitigation
Sustainable Finance – Debt Restructuring
Pay-for-Performance Green Infrastructure
Carbon Offsets
Insurance
OCEANS
• Fisheries Reform
• Sustainable Finance – Debt Restructuring
WATER
• Water Security
• Pay-for-Performance Green Infrastructure
CITIES
• Water Security
• Pay-for-Performance Green Infrastructure
• Urban Forestry/Carbon Offsets
1.
Alignment with TNC global strategies
2.
Critical role for private impact capital
3.
Size of the conservation impact and
investment opportunity
4.
Replicability of the individual deals
5.
Readiness to deploy capital
HOW NATUREVEST SETS PORTFOLIO PRIORITIES
Global Conservation Strategy Mapping
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Debt
Restructuring
Sustainable
Agriculture
Green
Infrastructure
Water Security
Carbon Offsets
Insurance
Fisheries Reform
Conservation
Partnerships
Mitigation
Community
Development
Short-term
Within 18 months
Medium-term
18-36 months
Longer-term
Beyond 36 months
PORTFOLIO PRIORITIZATION
NatureVest FY 2015 Priority Deal Activity
24
SUSTAINABLE AGRICULTURE
Location
Deal summary
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Northern Rangelands of Kenya
Support sustainable grazing practices that enhance wildlife habitat through rotational grazing
that increases grass available to cows and wildlife by creating a market for cows from herders
who meet grazing standards. Support community development with a per-head fee to a
community conservancy.
Pilot improved value chain product-to-market structure by scaling up a longstanding grantfunded program.
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Conservation outcomes
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Convert 1.2 million acres of grasslands in a critical elephant corridor to sustainable
management
Provide sustainable livelihoods to 5,000 households
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Financial Information (10/28/14)
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Fully Subscribed
Deal size = $7 million
Capital structure
Targets
PRI Debt
Family Foundation
TNC Equity supported by philanthropy
Family Foundation
Milestones
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Key partners
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Northern Rangelands Trading Ltd –
operating partner
Peter Hawkins Dobberpuhl Foundation –
PRI lender
Announced at 2014 Clinton Global Initiative
Structured
Approved
Committed
NATUREVEST TRANSACTION PROFILE
Grasslands and Livelihoods – Kenya Northern Rangelands
Closed
25
Workstream 3:
Access to Finance and Innovative
Finance Mechanisms
Rob Wolters, Chief Executive ECNC Land & Sea Group
Green4Cities: Urban Green
Infrastructure Competence Center
Vera Enzi
Green4Cities
Brussels, 21/11/2014
Green4Cities
Urban Green Infrastructure Competence Center
Who are we?
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Founded 2014 by Bernhard Scharf, Dr. Ulrike Pitha, Doris Schnepf and Vera Enzi
•
Backgrounds: University of Life Sciences Vienna Research and Development in urban GI,
Buildup and Development of innovative SME´s (Sustainability Sector), Teaching and
Training in Green Infrastructure on University and Business Level, National and
International Associations and Networks, Professional Project Application
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Selected Reference Projects:
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Research: grünstadtklima.at, progreencity.com, schotterrasen.at,
Education: biosolarroof.com, greenroofcourse.com, grünaktivhaus.at
Guidelines: Austrian Green Wall Guideline, Guideline Green Infrastructure for Future Cities
Initiatives: Green Wall and Roof Funding Pots, Municipality Buildings go Green, Green Wall Event
USP
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8 years of international recognized Research on measurable Benefits of urban GI Elements -> we have
Arguments
Broad Background Network of GI Movers (Business and Public) -> there is NEED
Ability to and link Innovators, Investors and Community -> Integral Player Philosophy
Innovation to Market -> Implementation Focus
www.green4cities.com |Westbahnstrasse 7, 1070 Vienna, AUSTRIA
Brussels|B&B Platform Conference|21st. November 2014 |Vera Enzi CCO
Green4Cities
Urban Green Infrastructure Competence Center
What do we do?
Driver of Green Urban Infrastructure, safe and green Cities for the future, through:
• Research and Development
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Education and Training
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GI Training of Industry Professionals, Planners, Investors and Public (Trade- spanning Platform)
Consulting and Certification
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Innovation and Product Development, Strategical Project Development Innovation to
Implementation, Guidance applying for Funding
Project Consulting, Strategy Consulting, Sustainaility Assessment Consulting,
Networks and Conferences
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Strategical Events and Activities supporting Urban GI Implementation and Acceptance
Focus Target Groups: SME´s, NGO´s, Public Bodies and Politicians, Investors and Real
Estate Developers, Planners, Delivering Professionals and Citizens
PHILOSOPHY: Bringing Nature, improved Climate and Quality of Life to every City
www.green4cities.com |Westbahnstrasse 7, 1070 Vienna, AUSTRIA
Brussels|B&B Platform Conference|21st. November 2014 |Vera Enzi CCO
Green4Cities
Urban Green Infrastructure Competence Center
Where are we at, where do we go?
•
Product Developments for Urban GI, focus LE´s (Green Wall and Roof Technology,
Raingardens, Permeable pavements etc.)
• Development and Implementation of Communication Campaign and Tools (GI and
Urban Ecosystem Services Campaign)
• Developing Online Platform for Education and Training Activities
• Initiating GI Strategy Conference Series (Start: Vienna, NOV 2015)
• Knowledge Exchange Activities amongst GI Movers (Pollinating Europes Cities)
• GI Implementation Showcase: LIFE Application
Next Steps, Agenda
• Certification and GI Assessment until 2016: Finalizing Green Pass ® Technology
• Pushing Development of Finance Mechanisms Urban GI, Consulting Activities
following
• Spreading EU GI Strategy
www.green4cities.com |Westbahnstrasse 7, 1070 Vienna, AUSTRIA
Brussels|B&B Platform Conference|21st. November 2014 |Vera Enzi CCO
Workstream 3:
Access to Finance and Innovative
Finance Mechanisms
Panel discussion
Brussels, 21/11/2014
Workstream 3:
Access to Finance and Innovative
Finance Mechanisms
Coffee Break
Brussels, 21/11/2014