2. AN INNOVATIVE APPROACH
TO CARBON OFFSETTING
SINCE THE CREATION OF THE DANONE FUND FOR NATURE IN 2008,
DANONE HAS BEEN TESTING NEW APPROACHES TO CARBON ECONOMY BY
SUPPORTING DIFFERENT PILOT PROJECTS RELATED TO BIODIVERSITY
RESTORATION, CARBON SEQUESTRATION AND FIGHT AGAINST POVERTY.
2
3. CARBON INTENSIFICATION AT THE HEART OF LIVELIHOODS
RESTORE REDUCE
ECOSYSTEMS POVERTY
Ecology and poverty are linked
Ecological Malnutrition
crisis 80%
Deforestation, soil of malnourished =
depletion, loss of poor subsistence
biodiversity = farmers,
arable land area 80% work by hand,
equivalent to the 2% mechanized
UK lost every year
Carbon and Food
1 ha of dense forest holds 400 T of carbon,
organic matter in soil = carbon stored
THROUGH DEVELOP
CARBON ECONOMY LOCAL ECONOMY
4. LIVELIHOODSLIVELIHOODS
LE FONDS AT A GLANCE
BUSINESS MODEL
Current size: €25m
FINANCE
LIVELIHOODS COMMUNITIES &
INVESTORS ECOSYSTEMS
FUND
DEVELOPMENT
INVESTMENT FUND PROGRAMMES
Current estimate 6- 7 MT CARBON CREDITS
CO2
LIVELIHOODS
BENEFITS OVER 24 VENTURE LONG TERM
YRS INVESTMENT BENEFITS
ADVISOR
Carbon credits Food security
Innovation Development
Internal motivation Environmental
Reputation enhancement
• Investment Fund regulated in Luxembourg (SICAV SIF)
• Multi-sector investor base and shared governance
• A dedicated Investment Advisor (Livelihoods Venture)
4
5. HIGH VALUE CARBON CREDITS
ROLE: TO SUPPLY OFFSETTING CARBON CREDITS
WITH HIGH ADDED SOCIAL AND ENVIRONMENTAL VALUE.
CARBON CREDIT
VALUE
TARGET
FOR LIVELIHOODS
Communities
Agroforestry
Large-scale
plantation
project
Industrial biodigester – USA
SOCIAL & ENVIRONMENTAL PROJECT VALUE
6. VALUE CREATION AT ALL LEVELS
BENEFITS FOR INVESTORS BENEFITS FOR COMMUNITIES
PISCICULTURE FARMING WOOD /
Carbon credits LOCAL FRUITS HEATING WOOD
+
Reputation +
Learning &
Innovation
ECO-TOURISM COASTAL BIOFILTRATION
PROTECTION
7. NEWS – INDIA
NAANDI – INDIA
45.000 people
20,000 farms impacted
1.1 m offsets 1 m offsets
YAGASU -
SUMATRA
5,000 hectares
16,000 people
2,000,000 offsets
OCEANIUM - IBI BATEKE –
SENEGAL DRC
140,000 people 2,000 people
450,000 offsets 120,000 offsets
7
8. A BALANCED PORTFOLIO
RESTORING AGRICULTURE SMALL,
ECOSYSTEMS AND SUSTAINABLE
Forests and soils, high value AGROFORESTRY ENERGY
ecosystems form part of the Thanks to new Home improvements,
world's stock of carbon wells. eco-intensive biogas, small
farming methods. hydro-electric plants,
solar energy.
Food security // Biodiversity // Access to energy
9. A PROVEN TRACK RECORD
• 6 projects under
implementation.
• 1 project completed and
registered under UNFCCC.
• 14,000 hectares planted as of
year-end 2011.
• Over 6m high quality offsets
from these projects.
9
10. A ROBUST PROCESS
• Key success factors:
Rigorous selection process,
Up-scalability and replication potential,
Strong local co-benefits,
Shared governance.
• Risk mitigation:
Strong local endorsement,
Balanced return,
Diversification and monitoring.
• Industrial approach:
High scale, high impact,
High quality partnerships with upfront
finance.
10
11. A UNIQUE ORGANISATION: THE
PLATFORM
INVESTORS
CARBON,
SUPPORT, ENERGY,
REPUTATION, FORESTRY,
EXPERTISE INVESTOR-
PARTNERS EXPERTS FINANCE, LAW
LIVELIHOOD
S
FUND
FINANCE AND EXPERIENCE,
INTERNATIONAL FIELD NGOs
TECHNICAL INSTITUTIONS LOCAL
SUPPORT KNOWLEDGE,
LOCAL CAPACITY
LIVELIHOOD
S
NETWORK
OPEN AND TRANSPARENT KNOWLEDGE SHARING
PLATFORM FOR CAPACITY BUILDING AND TECHNICAL
EXCELLENCE
