1. Presented at: Building REDD+ Policy Capacity for Developing Country Negotiators and Land Managers Phase III: Lessons Learned: Expert Meeting and REDD Project Field Visit April 2-5, 2012 Key components of effective private sector engagement & lessons for leveraging private sector finance 1 © 2012 Eco2librium Presented by: Anton Espira ECO 2 LIBRIUM

2. ECO 2 LIBRIUM LLC & ECO 2 LIBRIUM (K) LTD Eco 2 www.eco2librium.net MARK LUNG, PhD Executive Director Certification, registration, validation, verification ANTON ESPIRA, PhD Field Director Project development, implementation, management, monitoring SCOTT LUNG Operations & Finance Director Fund raising, credit selling, financial management 2 © 2012 Eco2librium ABOUT ECO2:  Carbon management  Consulting  Sustainable livelihoods  Energy Efficiency  Sustainable building  Agro-forestry & landscape conservation 2 projects in Kenya: i.Forest Again ii.Stoves for Life 1.Project development & advisory 2.Monitoring & evaluation 3.Funding, investment & credit sale

3. 3 © 2012 Eco2librium FOREST AGAIN:  CCBA Gold Level  Reforestation of over 450 ha of degraded landscape  Kakamega Forest, Western Kenya  Originally conceptualised as REDD+  Reimagined due to funding constraints  Funded by:  Eco2 direct investment  Grants  Investors  Pre-sale of credits Key players: 1’ STAKEHOLDERS:  KFS  Muileshi CFA PROJECT IMPLEMENTATION:  ECO2

4. 4 © 2012 Eco2librium STOVES FOR LIFE:  Gold Standard Certified  Installation of over 60,000 energy efficient stoves  Greater Kakamega Forest ecosystem, Western Kenya  Originally conceptualised as REDD+ Forest Again Component  Reimagined to enable funding  Funded by:  Investors  Sale of credits Partners:  Valonji Women’s Group  Kiveye Women’s Group  Mla Chake Women’s Group  Munasio Youth Group PROJECT IMPLEMENTATION = ECO2 PROJECT FUNDING = Foundation myclimate + ECO2

5. 5 © 2012 Eco2librium CHALLENGES:  Funding  Benefit sharing mechanism  Red tape & regulatory structures  Aid paradigm  Representation  Scale  Awareness Why the private sector fears A/R projects?  Duration  Risk  Complexity

6. 6 © 2012 Eco2librium PRIVATE SECTOR ENGAGEMENT:  Recognition of advantages of entrepreneurial approach  Enable legal & regulatory environment that attracts appropriate investment  Push for paradigm shift away from dependence on aid  Create support structures & risk sharing mechanisms  Seed local ecosystem Why the private sector loves A/R projects?  Impact  Publicity  Perception

7. 7 © 2012 Eco2librium LEVERAGING PRIVATE SECTOR FINANCE:  Project risk  Project duration  Stakeholders, partners & participants  Benefits & livelihood improvements  Management style, fund distribution  ROI  “Mixed bag” portfolio ATTRACTANTS Legal support structure Risk mitigation / risk sharing KEY COMPONENTS PPPs Financial institutions Local markets What do investors consider?

8. 8 © 2012 Eco2librium www.eco2librium.net antonespira@gmail.com aespira@eco2librium.net THANK YOU