© Partners for Innovation

Mini seminar Bachelier en Coopération Internationale

4 February 2014, 15h40-17h40, Liège, Belgium

Partners for Innovation BV who we are what we do what we intend to achieve in Europe and in Africa

Peter Vissers, Managing Director

www.partnersforinnovation.com

p.vissers@partnersforinnovation.com, +31 6 4260 9354 (NL) +32 497 570 466 (BE)

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Agenda

1. Introduction 15h40

2. PfI: who what where how 15h50

3. PfI: example project in Mozambique 16h00

4. PfI: Africa strategy 16h10

5. Group assignments 16h20

6. Reporting on group assignments 17h00

7. Closure 17h40

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About Partners for Innovation

Partners for Innovation is a leading consultancy for sustainable innovation based in the Netherlands. Together with our clients we achieve profitable solutions for a biobased and circular economy. In Africa we focus on profitable and responsible biomass chains, and on scaling up agroforestry. We have worked on these topics in Ghana, Niger, Nigeria, Madagascar, Mozambique, Senegal, South-Africa, Zambia and Zimbabwe. Our ambition is to help biomass and agroforestry actors to be succesfull.

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About Partners for Innovation Our expertise

Profitable and Responsible Biomass Chains Agroforestry scaling-up (Cleanstar Mozambique, Oxfam Niger/

Nigeria/Netherlands/Senegal/Zimbabwe) Bio-energy business plan development (Bio2Watt, E+Co, Green

Resources, Simgas, Wakawaka, etc) Bio-energy sustainability policy and monitoring (Ghana Energy

Commission) Bio-energy sustainability private sector development (CEPAGRI+

DNER Mozambique, Jatropha Alliance, NL Agency, WWF Madagascar)

Carbon credit development (Bio2Watt) Land governance (NL Embassy Mozambique)

Climate & Sustainable Energy for All Carbon footprint (SunBiofuels, Triodos bank, etc) Climate policy (Efico, BTC-CTB, etc) Renewable energy potential in EDCs (EC)

Product Innovation Cradle to Cradle (Desso, Vanderlande, etc.) EcoDesign training (DAF Trucks, Dorel , FME, SITA, etc.) Sustainable packaging (NVC, Schoeller Alibert, etc.)

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5

PfI team

2015 ambitions PfI

1. Nr-1 in NL for support to companies on sustainable innovation, and for developing project plans for sustainable innovation. Top-5 in BELUX

2. Top-10 in NL on supporting companies with bio-based economy

3. Top-of-mind in several African countries and at the international level as a practical and professional service provider for profitable and responsible biomass chains and agroforestry

4. 1M€ turnover, 10 FTE, HQ in A'dam, hub in Brussels, hubs in West, East and Southern Africa (300k€ turnover on African projects)

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Source 1, 4: PfI strategic plan 2013-2015 (2012) Source 2: NL market profitable and responsible biomass (2013) Source 3: inspired from various documents

PfI: what do we want to achieve?

Example project 1: Ecodesign training at DAF Trucks

EcoDesign training (2007-2014)

> Training of 120 designers / engineers

> Introduction to life-cycle impact assessment and to

EcoDesign strategies

> Own assignments participants

> EcoDesign Award

> DAF EcoDesign LCA tool

“Desso offers clients a Take Back™ programme to ensure that products will be recycled according to Cradle to Cradle® principles”, Stef Kranendijk, former CEO Desso.

Example project 2 Closing the carpet chain of Desso

Assisting to put in place a takeback and recycling

programme for used carpets (2009-2016):

• Carpets are recycled using the innovative

separation technique called Refinity®, which

separates the yarn and other fibres from the

backing.

• Carpet tiles with DESSO EcoBase® have achieved

Cradle to Cradle® Silver Certification

< Field visit: Niger, Dosso, 2010. One

spot, two views: trees on agriculture

land can make land productive

Example project 3: Scaling up agroforestry with Oxfam

Oxfam Novib (NL and Sahel offices - 2012-2014)

Scaling up Agroforestry in the Sahel as a structural

solution to move away from poverty and food

insecurity, towards climate-smart productive rural

communities

^ Two of the actor groups of

agroforestry scaling up:

local chiefs, women farmers

Example project 4: assess sustainability rice husk gasification project in Indonesia

Client: NL Agency (cofunding the project).

Period: May – August 2013

Assignment: sustainability assessment

Assessing people planet profit

aspects of the rice husk

gasification project against RSB

requirements

Example project 5: Piloting the draft biofuel sustainability framework in Mozambique (2013)

Four expected results:

1. Three biofuel project developers have used the sustainability framework to pilot assess their compliance against the framework, and have undergone a pilot monitoring visit;

2. The monitoring delegation has used the sustainability framework to pilot assess the compliance of three project developers;

3. The experiences of these pilots are evaluated, lessons learned identified, conclusions and recommendations are drawn;

4. Interested Mozambican biofuel stakeholders have had access to the findings of the pilot through a seminar and a final report

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The draft sustainability framework in Mozambique consists of 8 principles

Eight principles:

1. Legality

2. Social Responsibility

3. Public Consultation

4. Energy Security

5. Economic and Financial Viability

6. Food Security

7. Agricultural Productivity

8. Environmental Protection

Biofuel producers should comply

Government officials check compliance

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We did a pilot in four stages A - D

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Stage A: three companies participated: 1st: sugar cane company GEZ (sugar cane > sugar and bioethanol)

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Stage A: 2nd participating company Jatropha company NiQel (jatropha oil > biodiesel)

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Stage A: 3rd participating company Food-energy company CleanStar (cassava > bioethanol for cook stoves)

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Stage B: we made a self-assessment with the companies against the sustainability framework

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Stage B: these were the results

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Company Pilot compliance with MBSF MBSF follow-up Pilot evidence GEZ 97% = full compliance (90%-100%) > No follow-up 79% NiQel 92% = full compliance (90%-100%) > No follow-up 70% CSM 94% = full compliance (90%-100%) > No follow-up 85% (after verification by monitoring delegation, reference to MBSF version Oct 2013)

0%

20%

40%

60%

80%

100%1. Legalidade

2.Responsabilizaçã

o Social

3. ConsultaPública

4. SegurançaEnergética

5. ViabilidadeEconómica e

Financeira

6. SegurançaAlimentar

7. ProdutividadeAgrícola

8. ProtecçãoAmbiental

MBSF self-assessment: compliance

GEZ

NiQel

CSM

0%

20%

40%

60%

80%

100%1. Legalidade

2.Responsabilizaçã

o Social

3. ConsultaPública

4. SegurançaEnergética

5. ViabilidadeEconómica e

Financeira

6. SegurançaAlimentar

7. ProdutividadeAgrícola

8. ProtecçãoAmbiental

MBSF self-assessment: evidence

GEZ

NiQel

CSM

Stage B: each company assessed itself against each verifier of the MBSF

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TAB3. ASSESSMENT

>> Below the self-assessment fields that companies and government delegation fill in during the pilotCOMPANIES GOVERNMENT

MBSF requirements Self-assessment

Source: draft regulation MBSF (v3 Feb 2013) Guidance ComplianceEvidence Justification scores Evidence list Observation

Nr Verificadores Guia de

avaliação

Guidance developed for

pilot (beyond draft

regulation)

Self-

assessme

nt score

Self-

assessme

nt score

Companies explain in a few words the score for compliance. (Note: in the MBSF pilot it was decided

to focus CSM's self-assessment on its Sofala activities. CSM's bottling factory and sales activities in

Maputo are hence not part of the assessment)

Companies list the available

evidence. Evidence not

available or not in Dropbox:

lower score

Government

officials put

remarks

1. Legalidade

Princípio 1: as operações de Biocombustíveis cumprem as obrigações prescritas na lei e obedecem as ordens emanadas pelas autoridades legítimas com respeito pelos direitos fundamentais.

Principle 1: Biofuel operations respect all applicable laws, regulations and legal procedures

Critério 1.1: Operações de Biocombustíveis devem estar em conformidade com todas as leis, políticas e estratégias aplicáveis e com o respeito a todos os direitos costumeiros existentes, relacionados com o uso e acesso à terra, água e outros recursos naturais.

Criterion 1.1: Biofuel operations shall comply with all applicable laws, policies and strategies and with all existing customary and informal rights related to the use and access to land, water and other natural resources.

Indicador 1.1.1: O operador de Biocombustíveis fornece evidência demonstrando o cumprimento das leis, regulamentos e procedimentos legais aplicáveis e dos direitos costumeiros.

Indicator 1.1.1: The biofuel operator provides evidence demonstrating compliance with the applicable laws, regulations and legal procedures and with the informal and customary rights.

1.1.1.1 Constituição da

República de 2004

Nº 3 do artigo

2, artigo 38, nº

2 artigo 46.

General Mozambican

legal framework

Not

applic.

(NA)

Not

applic.

(NA)

NA NA NA

1.1.1.2 Lei nº 16/91, de 3 de

Agosto, (Lei de Águas).

Artigo

25,27,32,35,37

Licence/concession for

the use and benefit of

water

Full

complianc

e (100%)

Partial

evidence

(75%)

A water use license / concession does not seem necessary since the activities use low amounts of

water. In Dondo the operations use water from CSM's rain collection bassin and from its

borewhole. In Tsawane there is a borewhole. The expected water use of the factory is less than

8m3/hr according to the EIA p78/79. The ARA Centro water invoices CSM for annual consumption

in 2011 and 2012 of 450m3/a. Full compliance, partial evidence (evidence that a water use licence

is not required is missing).

Available in dropbox: EIA 2012,

invoice of ARA Centro 2012.

Not available: evidence that no

water licence/concession is

required

1.1.1.3 Diploma Ministerial nº

7/2010, de 6 de Janeiro,

(modelos de licenças e

concessões de água)

Licence/concession for

the use and benefit of

water

Full

complianc

e (100%)

Partial

evidence

(75%)

As 1.1.1.2 As 1.1.1.2

1.1.1.4 Lei n.º 20/97, de 1 de

Outubro, (Lei do

Ambiente).

Artigo

15,16,17.

EIA if required

(full/simplified).

Environmental licence.

Approval lettre of MICOA

Full

complianc

e (100%)

Partial

evidence

(75%)

EIA. CSM completed a simplified Environmental Impact Assessment (EIA) for its factory producing

ethanol from cassave in Dondo and for its 2 main Community Processing Centres (CPCs) located

near Mezimbite and near the Administrative post of Savane. The EIA concludes that the activities

are environmentally viable (p13). In terms of negative impacts, the EIA identifies 1 high, 12

medium and 8 low impacts, and has formulated mitigation measures. In terms of positive

impacts, the EIA has identified 3 high and 3 medium impacts. The EIA refers to 8 management

programmes (Social Communication Program, Program for Personnel Training and Operating,

Environmental Education Program, Signaling Program, Reforestation Program, Assistance

Program for Families Involved in the Project, Recovery Program Contaminated Soils, and

Monitoring Program Water Quality Artificial Pond) (p137), and defines 12 monitoring actions and

includes 8 monitoring tables. CSM has obtained an environmental licence. Full compliance, full

evidence.

EIA compliance and impact monitoring. CSM indicates to implement the project as described in

the EIA. There is evidence for this since CSM has management programmes in place that cover

the above programmes (e.g. its HSE programme) and monitors the effectiveness of these

programmes (e.g. incident reporting in HSE programme). There is also evidence that CSM

monitors well its obligations regarding EIA: in July 2013 CSM submitted an addendum EIA for use

of molasses to Sofala MICOA. CSM has furthermore developed a framework to monitor the social,

environmental and economic impacts of its activities (IASA framework). Regarding compliance

with the EIA, however, it is not clear whether CSM complies with all programme and monitoring

engagements of the 2012 EIA. Full compliance, partial evidence.

MICOA inspection. There was a recent visit of MICAO which lead to the recommendation to

monitor the soil quality of land on which organic wastes of the ethanol facility were used as

fertilizer. An internal report is available (but not yet in Dropbox). Full compliance, partial

evidence.

Available in Dropbox: EIA 2012,

Governor/MICOA letters 2011,

2012. Env licence 2012. 2013

letter to MICOA Sofala

regarding use of molasses. 2013

addendum EIA for use of

molasses. 2013 presentation on

IASA framework. 2013 IASA

tool.

Not available: evidence of

compliance with programme

and monitoring engagements

of the EIA, internal report on

MICAO inspection

Stage B: each company stored supporting evidence in Dropbox (average 400MB)

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Stage C: the self-assessment was then verified in a respectful and friendly process

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Stage C: start of the verification process was a plantation tour

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Stage C: the plantation tour provided good insight in the situation in the field

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Stage C: a Q&A session allowed a thorough understanding of the company activities

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Stage C: self-assessment scores and their justification were verified in consensus

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Stage C: a group photo marked the end of each visit of the monitoring delegation

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Stage D: a seminar was organized to share results within Mozambique

> Date and timing 31 October , 13H-17H

> Location: Beira

> Organisor: CIB represented by DNER

> Target public: National biofuel sector. Target of 50 persons: staff of relevant national and provincial directorates, biofuel companies, interested NGOs

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Source: the Economist, 03/12/20111

PfI business development in Africa. Why?

1. African economies need support with profitable and responsible private sector development

2. African economies grow steadily

3. PfI has a positive experience with African projects since 2005

4. Personal interest of PfI experts

5. The existing cultural links and working relations between EU/NL and African countries

6. The EU/NL expertise on agricultural sector development, business development and sustainability

7. The benefit of working on several continents for PfI’s European client base

Which themes support growth of agroforestry and biomass in Africa?

Theme Agroforestry Biomass

1. Growing demand for food security, continued need for resilience to hunger

2. Growing need for climate adaptation

3. Concerns of energy security, growing energy demand

4. Growing demand for rural jobs and economic development

5. Growth of private sector

6. Demand of African countries to attract investments

7. Need for African governments to develop effective policies and to effectively implement these policies

8. Demand for capacity building of entrepreneurs and government officials

9. Demand to canalize the interests and conflicts regarding land, nature, money, resources. Demand for change management

29 Source: PfI profitable and responsible biomass – market Agroforestry – market in Africa(2013)

PfI: what are key elements to grow towards a recognized player in Africa?

1. A good team of international and local people

a. Have a good competence balance in international team

b. Select the right person for the local teams

2. The right business proposition + right thematic focus

3. A clear vision and strategy + a clear implementation plan

4. A sharp country focus

5. Win-win finance model for international team and local teams

6. Enough time and effort available for making the model work

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Source: inspired on discussions with colleagues and clients

PfI: country, thematic, service focus

1. Sharp country focus: focus on countries where we recently had projects so that we can multiply contacts and contracts. Ghana, Mozambique and South Africa

2. Sharp thematic focus: focus on themes that we master well. Profitable and responsible sector development of industrial biogas, biofuels and agroforestry.

3. Sharp service focus: focus on services that we master well regarding profitable and responsible biomass and agroforestry, i.e:

a. Design and implementation of capacity building projects and pilot projects

b. Feasibility studies for new initiatives or for scaling up

c. Plan development, application writing and grant management for new initiatives

d. Policy evaluation, assistance with policy development

e. Pre-certification services against standards such as IFC, ISCC, RSB, gold standard

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Source: inspired on discussions with colleagues and clients

PfI: moving towards a European company with African hubs

Short-term actions (2013 - 2014): European company with network of local experts

1. Fine-tune the Africa strategy and seek PfI approval (2013)

2. Build and operate the international tender machine (2013) started

3. Recruit appropriate freelance experts (2013) started

4. Plan and actively undertake marketing & leadership positioning (2013) started

5. Establish team-building procedures and standard contracts (2013) started

6. Operate the model and network (2013 – 2014)

Medium term actions (2014 - 2016): European company with local offices

1. Define priority countries for PfI offices (2014)

2. Elaborate the PfI office blueprint and cooperation model (2014)

3. Recruit appropriate Nr1’s or take over appropriate businesses (2015)

4. Operate the model and offices (2015 and onwards)

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What are the required skills of freelance experts and of Nr1’s of PfI offices?

Topic Freelance expert Nr1 local PfI Office

Fit in PfI organisation Is at ease in quickly changing, dynamic and multicultural environments, has elasticity and endurance, is

interested in travelling and long working days, confident, entrepreneurial, self-reliant, robust, flexible,

accountable, professional

Motivation Is highly motivated to join the PfI team. Looks at

joining the PfI team as an important step forward

Is highly motivated to make the local PfI office a

success

Market related

knowledge and skills

Knows the opportunities in the market, thinks

commercially, reacts on opportunities. Is well

introduced in the country

Commercial tiger. Has a large network in the country

Technical skills Masters a number of technical skills related to

profitable and responsible biomass and to

agroforestry. Knows the country specifics well

Masters key technical skills related to profitable and

responsible biomass and to agroforestry. Knows the

country specifics very well

Coordination skills Is at ease with the coordination of projects Is at ease with the coordination of complex projects

Analytical and

problem solving

capacity

Comes with solid solutions by thinking over systematically complex problems; has an overview of the

situation en comes quickly to the heart of the problem; weighs risks when dealing with problems and

opportunities

Personal development Steers his/her own development; is well aware of his own strengths and weaknesses; takes steps to further

strengthen strong points and to improve weak points; keeps him/herself informed of developments,

knowledge and skills that add value

Communication skills Communicates surely and clearly, organizes information in a way that suits the situation; is open and honest,

is able to report on paper effectively and clearly

Team management Able to manage project teams (project manager) Able to manage the office team (people manager)

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Two assignments for group work

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1. Two assignments were prepared:

a) “Define basics for PfI Africa website”

b) “Define required profile for PfI Africa local experts”

2. The aim of the assignment is to use your insights, as you have them now, and apply them in a practical case related to the PfI business in Africa

3. Practicalities:

a) Assignment to be done in 2-person groups

b) A 1-page instruction available

c) Each group reports on a 1-page flip-over poster

d) There’s about +30 minutes available for the work and reporting

e) Two groups will be selected to present their results. The other groups will critically listen, provide feedback and input

Assignments briefs (more detail on the instruction pages)

Assignment A: define basics for PfI Africa website

PfI has a marketing strategy for European business clients but not for African stakeholders. Assignment: define the basics for PfI’s Africa website. Questions to be answered:

1. Which stakeholders are the target public?

2. What is the aim of the website? What should be achieved by the website?

3. What are the key messages that should be on the website?

Assignment B: define required profile for PfI Africa local experts

PfI started searching for local experts but was not successful so far. A list of required skills was made. Assignment: define the crucial skills for the experts as well as their needs. Questions to be answered:

1. How would you describe local experts fit to set up local business?

2. What are the 5 minimum required skills of local experts?

3. What do these local experts need in terms of support, budget, contract, pay and perspective?

Good luck to all !

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