Post on 12-Apr-2017
transcript
www.ecoagriculture.org
www.peoplefoodandnature.org
Investment in Integrated Landscape Management:Lessons learned from recent research
Sara J. Scherr, President, EcoAgriculture Partners
Chair, Landscapes for People, Food and Nature Initiative
World Agroforestry Centre
Nairobi, Kenya
March 15, 2017
Production agriculture and
ecosystems/biodiversity
>
60%
40-
60%
30-
40%Annual crops as % land area
Integrated Landscape Mgmt
Complex landscape mosaics with strong
biophysical-socioeconomic interactions/flows
Moving from a world of trade-offs
towards a world of synergies
Multi-stakeholder, multi-objective
Integrated agricultural
landscape initiatives
Estrada-Carmona,et al (2014);Martin-Rubi,et al (2016); Milder, et al
(2014); Zanzanaini, et al (2015)
Where, who, why ILM
2013-15 AfricaLatin America &
CaribbeanS & SE Asia Europe
Landscape
partnerships
surveyed
87 104 174 71
Principal
motivations
Reduce degradation, sustainable land management,
conserve biodiversity, improve food security, increase
productivity, improve water security, sustain cultural values
Average #
objectives8 7 6 8
Average # stake-
holder groups9 11 11 6
% with private
sector participants8 22 33 10
Most common
participants
Local govts, farmer associations, local NGOS, nat’l-int’l
NGOs, agribusiness, national govts, regional agencies
$ Billions being invested in ILM
GEF (295 projects 1991-2011, $1.2 bln + $5.8 bln co-finance)
Multilateral development ( World Bank Green Climate Fund, European Dev Bank)
Bilateral (NL, Germany, Switz, Italy, et al)
National programs (landscape restoration, REDD+, ES-based adaptation, climate-smart)
NGOs (environmental, agric, social)
Private companies (CRP, business case)
Impact investors
Photo credit: SAB Miller
Public-private-civic landscape
partnerships
The business case to invest in
ILM
Strongest where fixed assets and long-term financial interests in the landscape
Address business risks not manageable alone
Address pre-competitive sector challenges
Secure ‘license to operate’
Mobilize co-finance of critical investments
Reduce investment risks
Secure allies in negotiation with government
Quite variable by type of company and market positioning; different roles in partnership relevant
ILM Investment Needs
Enabling investments
Multi-stakeholder platform
Strategic planning and coordination
Landscape assessments, monitoring, impacts
Policies and financial incentives
Asset investments (landscape-friendly)
Agricultural and other production/value chain activities
Industry and processing
Green infrastructure/greening built infrastructure
Natural resource restoration
LPFN case studies - $2-4 billion needed per landscape
Investment needs in
Imarisha Naivasha
Enabling investments
• Imarisha-Naivasha stakeholder platform
• Imarisha Sustainable Development Plan, County coordination
• Set-up of payments for ecosystem services
• Set-up of Sustainable Development Fund
• Technical assistance to farmers and other land managers
• Monitoring of watershed health, wildlife, production, livelihoods
Asset investments
• Naivasha town water infrastructure improvements
• Water use efficiency investment by flower companies, other irrigation users
• Restoration of vegetative cover in upper watershed
• Climate-smart agricultural value chains
• Water infrastructure for pastoralists
• Maintenance and improvement of wildlife reserves
• Greening tourism infrastructure
Different types of investors
time horizon, investment size, risk appetite
Coordinating
investment
Private investments in
Imarisha Naivasha
Enabling investments
• UK retailers--ASDA, Tesco, Marks and Spencer and Sainsbury’s, LNGG:
Funded Sustainable Development Action Plan and Watershed Resource
Management Plans, Imarisha operating funds
• Finlay: financial contributions to multi-stakeholder platform
• German-Austrian supermarket REWE and Swiss-Coop: Funded research
Asset investments
• Equity Bank: low interest loans to smallholders for best practices
• Flower companies: invest in own water use efficiency
• Water user fees: local water user associations collect fees and monitor
water use (possible surcharge to support basin sustainability)
• Payments for Ecosystem Services for good practices by farmers in upper
catchment.
• Diverse companies: contribute to Sustainable Development Fund, through a
price premium from flowers sold in the EU, water user fees, and other
revenues; exploring equity investors (but requires restructuring)
Securing finance for ILM
enabling & asset investments
1) Scope existing sources of finance and financial flows
2) Develop a Financing Plan for the agreed Landscape Action Plan that identifies priority investments and roles appropriate for different types of investors
3) Foster new partnerships between finance institutions and landscape stakeholders
4) Design enabling investments to leverage, shape and complement private investment
5) Assist stakeholders to develop bankable investment proposals that contribute to landscape goals and demonstrate a clear ‘investment case’
6) Develop institutions to aggregate funding from multiple sources, and disburse large-scale funds to diverse land managers
Challenges for finance
institutions of ILM investments
Incorporating landscape criteria into financial decisions
Mitigating investment risks
Effective engagement in landscape partnerships
Linking/coordinating with other financial flows within the landscape
Monitoring multiple outcomes
Shames, et al. 2015
Business for Sustainable
Landscapes
Business for Sustainable
Landscapes Action Agenda
Businesses: Prepare your business for landscape partnerships
Financiers: Accelerate innovations in financing for coordinated landscape investments
Governments: Incorporate landscape strategies into national and sub-national policies
Landscape programs: Enhance tools, services and processes to address business challenges in landscape partnerships
Action Plan for ILM Finance
Strengthen financing strategies of landscape partnerships.
Step up efforts with financial institutions to test innovative mechanisms for blended finance in landscape partnerships.
Create national and international platforms brokering between credible and bankable landscape partnership investments and finance institutions.
Develop centers of expertise to advise and facilitate landscape partnerships to sustainably finance projects.
African Landscapes Action
Plan (ALAP) for Finance
Strengthen financing capacities of platforms
Develop a tool for scoping landscape finance opportunities (flows, actors, scorecard)
Coordinate investment among government, NGO and private actors
Develop training modules on landscape finance (Landscape Academy) to increase financial literacy
Undertake outreach to financial institutions in Africa
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