Upload
roberto-persivale-r
View
450
Download
5
Tags:
Embed Size (px)
DESCRIPTION
CI & V Ventures
Citation preview
Biodiversity
and Ecosystem
Investments
November 11th, 2009
• CI Overview
• Ecosystem Finance
• Verde Ventures
• Carbon Fund
• New Horizons
Summary
CI has field offices in over 40 countries spanning four continents.
Our staff of over 1000 employees is supported by a network of over 1,500 local partners
around the globe.
about CI
visionWe imagine a healthy prosperous world in which societies are forever committed to caring for and valuing nature for the long-term benefit of people and all life
on Earth.
missionBuilding upon a strong foundation of
science, partnership and field demonstration, CI empowers societies to responsibly and sustainably care for nature for the well-being of humanity.
Ecosystem
Finance Division (EFD)
Our Funds
Critical Ecosystem Partnership Fund (CEPF)
Global Conservation Fund (GCF)
Conservation Stewards Program (CSP)
Verde Ventures
Conservation and Community Carbon Fund (CCCF)
Our Focus
Protected Areas
Rural Livelihoods
Long-term Financing
Financial management
PES Financing
Summary Results Total granted/invested to date:
USD$211 million
1,500 partners supportedin over 60 countries
>89 million hectares of globally significant land protected benefitting critical ecosystems and communities
> $254 M in funding leveraged
> 140,000 people directly impacted
Significant policy impacts in 11 countries
EFD InvestorsTotal Capital: $338M (Grants (G), Loans (L), Loan
Guarantees (LG))
Multilateral/Bilateral- World Bank (G)- International Finance Corporation (L&G)- Global Environment Facility (G)- Overseas Private Investment Facility (L)- Government of Japan (G)- French Aid Development Agency (L,G&LG)
Foundations- Gordon and Betty Moore Foundation (G)- MacArthur Foundation (G)- Mulago Foundation (G)- United Nations Foundation (G&LG)- Conservation International (G-CEPF)
Private Sector- Starbucks (LG, L & G) - Daiwa (G)- Disney (G)- Dell (G)
Investors’ Interest
Historical• Philanthropic• Marketing Benefit• Focus on non-CI partners • Investment Infrastructure • High Leverage (Debt Swap) Increasingly• Supply Chain Benefit• SRI/TBL (with $ return)• Carbon Credits
Verde Ventures (VV)
Verde Ventures
Verde Ventures invests in small businesses that contribute to conservation and
communities in Conservation International's global priority areas.
Why Verde Ventures?
Conservation-based employment is essential to provide economic incentives for conservation
The small business sector is a key partner in the intersection between human welfare and conservation
Lack of available, affordable capital to ensure the sustainability of the sector
Core Products
• Loans: US$30,000 to $500,000 (average: $125,000)
• Use of Loan funds: Infrastructure, working capital, trade finance
• Typical Deal Structure: Senior or subordinated secured debt for 3-5 years. Increasingly debt + quasi-equity.
• Financial IRR fund target: 8%
• Strategic grants for technical assistance and environmental and socio-economic monitoring
Current Investors
International Finance Corporation
Overseas Private Investment Corporation
Starbucks Coffee Company
French Aid Development Agency
VV Summary Results
$13.4 million in 73 loans,13 countries
> 400,000 hectares directly impacted
42,000 people employed and/or benefiting
$32 million in new sales generated by invested companies
95% repayment rate
Supply Chain--Coffee
• $10.5 million invested in 23 sustainable coffee suppliers in 5 countries
• 100% trade finance secured on contracts
• Help Starbucks achieve
public commitments through financing support to their supply chain and other coffee growers.
VV Risk Management
•Thorough due diligence and oversight
•Use of CI local networks in 40 countries
•Invest with other lenders (also reduces costs)
•Invest only in US$ and work with companies receiving
hard currency revenues
•Repayment terms of not more than 6 years
•At least 1:1 collateral secured under local law
•Loan Loss Reserve Requirement averaging 15% of
outstanding capital
Conservation and Community Carbon Fund
(CCCF)
25 Current high biodiversity forest-carbon projects producing estimated > 100 million tCO2 over 30 years.
Project development and community capacity are needed to scale-up 5-10X over the next 5 years
Projects in implementation
Projects in development
CCCF Overview
The CCCF supports the design, start-up and
implementation of forest-based carbon projects that counteract global warming and deliver biodiversity and local community benefits.
CCCF Core Products
Carbon project development funding
Technical assistance for project development (carbon baseline, PDDs)
Voluntary carbon credit agreements
Support to indigenous peoples and forest dependent communities to increase their access to carbon markets.
Progress
6 REDD projects funded or in pipeline (Madagascar, Ecuador, Brazil, Guatemala, Peru, DRC)
October 2009: Signed significant REDD deal with Disney for $7 million in pre-financing CI project in Peru, DRC and third country tbd.
Benefits: Disney gets excellent marketing benefit
and eventual retirement of 900,000 tons CI gets much needed carbon project
financing for 3 projects.
Challenges Pre-financing may create low-
pricing scenario for project principals.
Without flexible pooled funding, project risk is higher as funds are raised for specific projects.
Real market growth in REDD dependent on policy arena.
Significant up-front capital needed for PDD development and capacity building.
Loan/equity financing structures for REDD would help to ensure sufficient financing for building the REDD asset class.
Expanding Opportunities
• Expand forest-carbon financing 10x
• Replicate PES-market models- with a focus on freshwater
• VV expansion with initial $10 million in new capital- focus on Africa
• Support monetization of biodiversity assets for local and global benefit.