Presentation on theme: "Regional Forum on Developing and Financing Low Emission Development Strategies for the Agriculture, Forestry and Other Land Use Sector: Moving from Promise."— Presentation transcript:
Regional Forum on Developing and Financing Low Emission Development Strategies for the Agriculture, Forestry and Other Land Use Sector: Moving from Promise to Practice Bangkok 7-9 July 2015 Financing Low Emission Development in the AFOLU Sector Jeremy Broadhead Senior Forestry and Land Use Policy Advisor USAID LEAF
In 2010 24% of global GHG emissions were from AFOLU In ASEAN the figure was 58% Source: IPCC 5 th Assessment Synthesis Report
1. Why the financing gap? 2. Financing considerations 3. Financing sources and challenges 4. The way ahead
Insufficient finance and lack of demand for emissions reduction/green goods? Lack of political will? Wrong mechanisms? Weak land tenure and law enforcement? Lack of clear institutional responsibilities? Lack of capacity/experience?
What kinds of financing are available? What are the main sources of financing? International public Domestic public Private Who are the recipients? E.g. NGOs, government, large companies, SMEs What type of activities require financing? Creating an enabling environment or Producing an asset e.g. emissions reductions or “green” goods How well developed is the policy and institutional environment? Financial and monitoring framework in particular At what stage of maturity is the initiative?Grants Debt finance (Loans and Bonds) Equity Subsidies and indirect finance Purchase and sale payments
1. Will the investment generate a financial return? 2. Do the activities have the potential to leverage private finance? 3. Is supporting infrastructure in place?
1. Technical support and institutional and capacity building GCF, UN-REDD, FCPF-RF, NICFI 2. Non-results-based support to AFOLU mitigation GEF, FIP 3. Non-market results-based finance Bilateral assistance (Norway, Germany) 4. Carbon payments FCPF-CF, WB BioCarbon Fund
Improve capacity to transparently implement and monitor activities on the ground Clarify domestic institutional responsibilities (e.g., between environment and forestry ministries) Resolve land tenure issues Improve effectiveness and coordination of multilateral REDD+ institutions
Purchase and sale payments Carbon market finance Foundations Impact investors
Find ways to increase positive off-farm impacts Increase market share and improve environmental sensitivity of markets Also: Provide regulatory support to help realize price premium Improve certification standards and implementation
Governments often the main investors in AFOLU through: Subsidies and indirect finance Concessional loans Equipment and training Financing sector governance
Begin by assessing and targeting financing Leverage private financing Implement domestic subsidy reforms and policy support Encourage collaborative action between domestic, international and private actors Keep learning and moving forward!
1. International Climate Change Financing for Land Use: Beyond a Paris Agreement 2. Private Financing for Land Use in Southeast Asia 3. Parallel sessions: Innovative financing i. Low Emissions Business Models ii. Voluntary Sustainability Initiatives iii. Financing Forest Conservation 4. Working groups: Addressing the financing gap i. Subnational ii. National iii. International 5. The roles of public and private financing in closing the financing gap and funding AFOLU LEDS (presentations and discussion)