Workstream 3: Access to Finance and Innovative Finance Mechanisms Matt Rayment Consulting Director...

Workstream 3: Access to Finance and Innovative

Finance Mechanisms

Matt RaymentConsulting Director at ICF International and Workstream leader

Brussels, 21/11/2014

Context and objectives

EU Business and Biodiversity Platform

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.

Objectives Approach Key findings Further work


Approach and method

Objectives Approach Key findings

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.

Further work


18 submissions were received from Platform members, resulting in 15 case studies


Biodiversity Investment Opportunities– 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 – 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.

Further work


Key findings – Biodiversity investment opportunities


Action for biodiversity creates investment opportunities in:– 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:– Regulation – Harmonisation of standards– Piloting new projects and financing methods– Improved evidence, information and awareness

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

Further work


Key findings – finance sector champions


Biodiversity considerations are increasingly being integrated into financial decisions. Key areas of progress include:– 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

Further work


Possible work for 2015

Objectives Approach Further work

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

Key findings


Finance Mechanisms

Dimopoulos Dimitrios Head of Environment Unit Piraeus Bank Group


LIFE-Stymfalia: Sustainable Management and Financing of Wetland Biodiversity - The case of Lake Stymphalia

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Environment Strategy: Climate and Biodiversity

Home(our facilities)

• GREENbanking4Life (2006-2009)

Neighbours (our clients and

shareholders)

• GREENbanking4Life• Climabiz (2010-2012)

Society (our stakeholders)

• climabiz• LIFE-Stymfalia

(2013-2017)

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LIFE-Stymfalia: The nature of business

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.

LIFE12 NAT/GR/000275

Project fundingCo-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

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Conservation Finance for Natura 2000

• Enhancement of the conservation status of target-species and their habitats

• Institutional protection through management plan

• Local Management Unit

• Thematic exhibition at Environment Museum of Stymphalia (Piraeus Bank Group Cultural Foundation)

• Environmental interpretation path and bird watching hide

• Farmers’ network (responsible farming practices)

• Investment interest for biomass utilization → new green jobs.


Finance Mechanisms

Caroline van LeendersSustainable Transition ManagerThe Netherlands RVO


Community of PracticeFinancial institutes & Natural Capital

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• 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• 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 to1. 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


Finance Mechanisms

Lara YacobDirector of Corporate EngagementThe Nature Conservancy


“NatureVest” initiative

HO

W N

ATU

RE

VE

ST S

ETS

PO

RTFO

LIO P

RIO

RIT

IES

Global Conservation Strategy Mapping Criteria for NatureVest Deals

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

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NATUREVEST STRATEGIES

LAND

• Sustainable Agriculture• Land Conservation Partnerships• Mitigation• Community Development

CLIMATE

• 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

PO

RTFO

LIO P

RIO

RIT

IZATIO

NNatureVest FY 2015 Priority Deal Activity

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Conservation Partnerships

Carbon Offsets

Sustainable Agriculture

Debt Restructuring

Water Security

Mitigation

Green Infrastructure

Fisheries Reform

Community Development

Insurance

Short-termWithin 18 months

Longer-termBeyond 36 months

Medium-term18-36 months

NATU

REV

ES

T T

RA

NS

AC

TIO

N P

RO

FILEGrasslands and Livelihoods – Kenya Northern Rangelands

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Conservation outcomes• Convert 1.2 million acres of grasslands in a critical elephant corridor to sustainable management• Provide sustainable livelihoods to 5,000 households

Deal summary• 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 grant-funded program.

Key partners• Northern Rangelands Trading Ltd –

operating partner• Peter Hawkins Dobberpuhl Foundation –

PRI lender

SUSTAINABLE AGRICULTURE

Financial Information (10/28/14)• Deal size = $7 million

Capital structure Targets

PRI Debt Family Foundation

TNC Equity supported by philanthropy Family Foundation

Structured Approved Committed Closed

Milestones• Announced at 2014 Clinton Global Initiative

Location• Northern Rangelands of Kenya

Fully Subscribed


Finance Mechanisms

Vera EnziGreen4Cities


Green4Cities: Urban Green Infrastructure Competence Center

Rob Wolters, Chief Executive ECNC Land & Sea GroupRob Wolters, Chief Executive ECNC Land & Sea Group

www.green4cities.com |Westbahnstrasse 7, 1070 Vienna, AUSTRIABrussels|B&B Platform Conference|21st. November 2014 |Vera Enzi CCO

Green4CitiesUrban Green Infrastructure Competence Center

Who are we?• 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

• Selected Reference Projects:– 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– 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


Driver of Green Urban Infrastructure, safe and green Cities for the future, through:• Research and Development

– Innovation and Product Development, Strategical Project Development Innovation to Implementation, Guidance applying for Funding

• Education and Training– GI Training of Industry Professionals, Planners, Investors and Public (Trade- spanning Platform)

• Consulting and Certification– Project Consulting, Strategy Consulting, Sustainaility Assessment Consulting,

• Networks and Conferences– 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


What do we do?



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 ApplicationNext 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


Finance Mechanisms


Panel discussion


Finance Mechanisms


Coffee Break

Workstream 3: Access to Finance and Innovative Finance Mechanisms Matt Rayment Consulting Director...

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