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CRAIG HANSON (GLOBAL DIRECTOR OF FOOD, FORESTS & WATER) Initiative 20x20 A country-led effort to initiate restoration of 20 Mha in Latin America by 2020 Global Landscape Forum The Investment Case June 10, 2015

Initiative 20x20: Restoring 20 million ha in Latin America – Craig Hanson, WRI

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Page 1: Initiative 20x20: Restoring 20 million ha in Latin America – Craig Hanson, WRI

CRAIG HANSON (GLOBAL DIRECTOR OF FOOD, FORESTS & WATER)

Initiative 20x20A country-led effort to initiate restoration of 20 Mha in Latin America by 2020

Global Landscape ForumThe Investment CaseJune 10, 2015

Page 2: Initiative 20x20: Restoring 20 million ha in Latin America – Craig Hanson, WRI

Background by the numbers

>50%

58%

37

of annual GHG emissions in LAC from land use and land use change

Mha of forests and grasslands converted to agriculture in LAC since 2000

13% of global food and fiber trade from LAC

of rural employment in LAC tied to agriculture and forestry

350 Mha of lost or degraded forest landscapes in LAC

Page 3: Initiative 20x20: Restoring 20 million ha in Latin America – Craig Hanson, WRI

Initiative 20x20Bringing 20 Mha of degraded land in Latin America & the Caribbean into restoration by 2020

Page 4: Initiative 20x20: Restoring 20 million ha in Latin America – Craig Hanson, WRI

Why restore?

Improve rural livelihoods

Increase ability to meet food, feed, and fiber needs

Help mitigate and adapt to climate change

Restore other ecosystem services

Page 5: Initiative 20x20: Restoring 20 million ha in Latin America – Craig Hanson, WRI

1. Motivate political commitments

2. Provide technical support for implementation

3. Develop financial architecture and secure financing

Initiative 20x20 activities

Page 6: Initiative 20x20: Restoring 20 million ha in Latin America – Craig Hanson, WRI

1. Initiative 20x20 commitments to date

Mexico

Peru

Nicaragua

Bosques Modelo*

Guatemala

Colombia

El Salvador

Conservacion Patagonica*

Ecuador

Chile

American Bird Conservancy*

Espiritu Santo (Br)

Costa Rica

8.5

3.2

2.7

1.6

1.2

1.0

1.0

1.0

0.5

0.5

0.1

0.08

21.4 Mha by June 2015

0.05

Mha

* Regional programs

Page 7: Initiative 20x20: Restoring 20 million ha in Latin America – Craig Hanson, WRI

2. Initiative 20x20 partners delivering technical assistance

Page 8: Initiative 20x20: Restoring 20 million ha in Latin America – Craig Hanson, WRI

3. Develop financial architecture (proposed)

Private equity Debt finance

Capitalization and guarantee

Impact investorsGoal: $500 million

Capitalization fund to inject money into private impact investorsPartial risk guarantee instrument to mitigate investment risks

Goal: Coverage for $1 billion in investments

Page 9: Initiative 20x20: Restoring 20 million ha in Latin America – Craig Hanson, WRI

3. Secure financing

Private equity Debt finance

Capitalization and guarantee

To date: $380 million

FCIF

In discussion

In discussion

Page 10: Initiative 20x20: Restoring 20 million ha in Latin America – Craig Hanson, WRI

Agenda for session

• Welcome and context (10 minutes)

• Perspectives from the panel (25 minutes)

• Break out groups (45 minutes)

• Report back and discussion (40 minutes)

Page 11: Initiative 20x20: Restoring 20 million ha in Latin America – Craig Hanson, WRI

CRAIG HANSON (GLOBAL DIRECTOR OF FOOD, FORESTS & WATER)

Initiative 20x20A country-led effort to initiate restoration of 20 Mha in Latin America by 2020

Global Landscape ForumThe Investment CaseJune 10, 2015

Page 12: Initiative 20x20: Restoring 20 million ha in Latin America – Craig Hanson, WRI

Questions to discuss

1. What feedback do you have on the overall financial architecture of Initiative 20x20?

2. What experiences or insights can you share on risk management mechanisms?

3. What insights can you share on how Initiative 20x20 could effectively build the “restoration deal flow” pipeline?

4. What avenues exist for capitalizing investors in land restoration?

5. Who else should be (or could be) part of this Initiative (e.g., financing, technical assistance)?