World Bank Forest Carbon Funds and Public Private Partnerships – World Bank Group

Strictly Confidential © 2015Strictly Confidential © 2013

World Bank Forest Climate Funds Public-Private Partnerships

June 10, 2015

Global Landscapes Forum Investment Case, London

Strictly Confidential © 2015

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


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”:


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


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+.


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


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.


Deforestation-free Commodity Supply Chains Under Development by World Bank Forest Climate Funds

Ethiopia

Colombia

IndonesiaLiberia

GhanaZambia


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


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+


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


Further Information

Ellysar Baroudy [email protected]

Ahmad [email protected]

http://www.biocarbonfund-isfl.org/





THANK YOU

World Bank Forest Carbon Funds and Public Private Partnerships – World Bank Group

Environment

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