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World Bank Forest Climate Funds Public-Private Partnerships
June 10, 2015
Global Landscapes Forum Investment Case, London
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World Bank Forest Carbon Funds ($1.3 billion)
Readiness
$385M
Carbon Fund
$465M
Technical Assistance $100M
Result-based payments $280M
Initiative for Sustainable Forest Landscapes (ISFL)(2013)
BioCF Tranche 1 & 2 (CDM and voluntary markets) (2004)
Technical Assistance $6.3M
Result-based payments $83.3M
Forest Carbon Partnership Facility (since 2008) $850M
Grants and Technical Assistance for national-level readiness in 47 countries
Results-based finance for jurisdictions in 8-9 countries
For jurisdictional programs in 4 countries
Methodology innovation globally for 20+ projects in 16 countries
$380M
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Business Model
Enabling Environment
Low-Carbon Development Benefits
Development Action
• Policy and strategy• Capacity building• Social inclusion• Consultation
• Investments in low carbon development
• Sustainable management of forests
• Climate-smart ag
• Poverty alleviation• Shared prosperity• Climate change
mitigation and adaptation
Grant Funding;Technical Assistance
Private and Public Finance, including IDA, IBRD, FIP, GEF financing
Results-Based Finance for Emission Reductions
We provide:
We “crowd-in”:
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Where we work
Zambia
Ethiopia
Ghana
ColombiaIndonesiaCosta Rica
Mexico Nepal
DRCRoC
Chile
Vietnam
14 countries with large scale climate-smart land-use programs under development (FCPF Carbon Fund & BioCF ISFL)
54 countries with REDD+ readiness support (FCPF) or projects (BioCF T1/T2)
Guatemala
Peru
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ObjectivePromote and reward reduced greenhouse gas emissions and
increased sequestration through better land management, climate-smart agriculture, and smarter land use planning and policies.
• Integrate sub-national development agenda with low-carbon pathways.
• Support forest countries to maintain and improve livelihoods, conserve biodiversity and leverage significant private and public sector finance to achieve transformational change.
• Demonstrate approaches that can be applied nationally i.e., national low-carbon strategies and global mechanisms of support such as REDD+.
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What do we offer?
• Financial resources to pay for results – measured in tons of carbon
• Financial resources to pay for technical advisory support that can be utilized to demonstrate new technologies, improve the policy environment, and reduce risks of adopting new techniques
• Technical expertise on carbon methodology and accounting
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What do we leverage?
As part of the World Bank Group we bring additional resources:• From the International Development Association (IDA)/International Bank for
Reconstruction and Development (IBRD): – We bring the strong relationship with the governments (convening power).
Can serve as interlocutor and convene public and private stakeholders to spur sustainable land use change.
– Support enabling policy environment for the adoption of best practices. Work with Ministries of Finance to elevate land use on the national agenda across all Ministries.
• From the International Finance Corporation (IFC), the private sector arm of the WBG:– The experiences and support of the advisory services.– The tools to help finance and/or manage/share the financial risks
associated with new investments.
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Deforestation-free Commodity Supply Chains Under Development by World Bank Forest Climate Funds
Ethiopia
Colombia
IndonesiaLiberia
GhanaZambia
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Deforestation-free Commodity Supply Chains
o Colombia: sustainable beef, soy and dairy production
o Ethiopia: engagement with private sector on the coffee supply chain
o Ghana: Government, local chiefs, National Cocoa Board engaged on deforestation free cocoa sector
o Liberia: partnership developing around rubber production
o Indonesia: focus on sustainable palm oil sectoro Zambia: re-direct market forces to foster deforestation-free
cotton supply chain
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Examples of our Programs
10
Zambia: • Results-based finance to incentivize range of actors across landscape to accelerate
“forest-proof” sourcing of commodities and redirecting market forces toward more sustainable and equitable land management practices.
• Targeted commodities driving deforestation are: cotton, maize, tobacco, fuel wood.
We are supporting: • Sustainable land management in Zambia’s Eastern Province (5.5 million ha).• Partnership opportunities with Cargill and other cotton companies to reduce
deforestation linked to cotton farming
We foster innovative partnerships for REDD+
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Vision for Successful Jurisdiction
Impact In 10 Years… • Economic development with a green footprint• Land use choices will be collective country decisions• Country vision will need to spur public and private
sector action that is sustainable • All sectors will be engaged and work together across
the landscape to realize a national low-carbon development goal.
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
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Further Information
Ellysar Baroudy [email protected]
Ahmad [email protected]
http://www.biocarbonfund-isfl.org/
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THANK YOU