1. Bank aus Verantwortung German bilateral financial cooperation for forests Johannes Scholl June 2013

2. 2 International activities of KfW Promotion of reform processes, investments/advisory services in cooperation with governments and public institutions in developing & middle income countries Promotion of the private sector in developing & middle income countries Financing of investments and advisory services for small and medium enterprises International Finance in the interest of the European and particularly the German Economy by promoting exports and overseas investments Objectives Areas Climate / Environment Financial System Development Economic Infrastructure Social Infrastructure Task Financial Cooperation with Developing Countries Entrepreneurial DevelopmentInternational Finance of Exports and Projects All economic sectors Market entry Very early phase Mature markets Early phase Developing CountryIndustrialized CountryMiddle Income Country KfW Entwicklungsbank DEG KfW IPEX-Bank Target Markets Climate / Env. Infrastructure Transport Manufacturing Energy/Trade Telecom Health Commodities

3. 3 Financing Instruments of KfW Development Bank Tailor-made Financings for Every Partner Concessional finance Financial Cooperation Budgetary funds only Grants and Standard Loans EUR 1,526 million Promotional loans KfW funding only EUR 1,603 million Development loans Combination of budgetary and KfW funds Budgetary funds: EUR 112 mn KfW funds: EUR 1,487 million Budget funds 2012 EUR 1,639 million KfW funds 2012 EUR 3,091 million

4. 4 Finance for Biodiversity / Forests: An upward trend Forestry-related projects around 30% of biodiversity committments KfW Appraisals, Committments and Disbursements for Biodiversity (2008-2012, million EUR) Quelle: KfW Source: KfW

5. 5 Three-dimensions of improved framework conditions RIGHTS: Clarify rights and secure access to resources CONTROL: Enhance public and social control capacity INCENTIVE: Promote sustainable practices of resource use

6. 6 Example: Forest Management in the Amazon, Brazil Objective: Sustainable Management of Public Forests in the Amazon Partners: Brazilian Forest Service (SFB) and Nature Conservation Agency (ICMBio) Activities: RIGHTS: Preparation of public forests for concession (Plans, Demarcations etc.) CONTROL: Building-up a decentralized SFB management structure INCENTIVE: Building-up a regional center for applied education INCENTIVE: Financing a pilot facility for energetic use of wood Grant: EUR 15 Mio. Duration: 12/2011 – 12/2015

7. 7 - 7 - 1. Antecedentes - 7 - Some expected impacts by 2015: -Decrease of deforestation by 30% -2 million hectares under concession -Annual production of 1 million m³ sustainable timber

8. 8 Some requirements for Financial Cooperation Intergovernmental agreement Public implementation partners Positive social and enviromental impacts Scale Bankability

9. Bank aus Verantwortung Thank you! johannes.scholl@kfw.de martin.geiger@deginvest.de johannes.scholl@kfw.de martin.geiger@deginvest.de