This presentation by The World Bank Group was given at a session titled "World Bank Forest Carbon Funds and Public Private Partnerships" at the Global Landscapes Forum: The Investment Case on June 10, 2015. For more, please visit http://www.landscapes.org/london/
The land use carbon funds provide finance for:
Upstream technical capacity and enabling environments
Downstream payments for results
The funds need to look for collaboration and partnerships with others in order to leverage finance – they will aim to ‘crowd in’ finance from various sources.
Climate finance in the land use sector is viewed as a package needed to fund a continuum: from upstream technical work and strategies, through to investments and finally to results based payments that should ensure sustainability in the longer-term. Much more can be done to innovate in this space.
By the end of October, we expect to add to this list for large scale programs (bringing the number from 12 to 16):
Peru, Guatemala, Indonesia and Liberia
What do we offer?
Financial resources to pay for 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 (by building the enabling environment, piloting new business approaches, or sharing risks for investments to happen)
Technical expertise on carbon methodology and accounting
More details:
Help countries articulate their low-carbon vision through holistic cross-sectoral engagement:
Involve private sector—consumer goods companies, traders and exchanges, smallholders, large local producers, finance (local and international), entrepreneurs—on building sustainable deforestation-free commodity supply chains.
De-risk investments to mobilize the capital necessary to scale up successful land-use practices (ex: utilize risk sharing facilities to mobilize working capital—IFC private sector arm of WBG).
Provide technical assistance both to the private and public sector entities to build their capacity, increase their knowledge, and encourage piloting of innovative approaches to sustainably produced commodities.
Tailor partnerships to specific needs of the commodity and the global market demands for it; as well as country context.
The ISFL concept has been endorsed by a number of multinational companies, including Unilever, Mondelēz International, and Bunge Environmental Markets.