1. IFC Biodiversity Portfolio March 22, 2005

2. Compared Characteristics/Roles of the CES Facilities in the Area of Biodiversity CHARACTERISTICSCCFEOFCEF BIODEBFP What it isIFC TA facility funded by donors to demonstrate the business case for sustainability IFC equity, debt or grant facility funded by donors to promote innovative business initiatives Biodiversity category of the GEF (Global Env. Facility). Provides incremental investment (debt, equity or grant) to help implement CBD through private sector GEF Financing Facility and Technical Assistance Program to support the development of a market of viable SMEs that benefit the global environment Works on other Evn & Soc themes than BioD Yes – all themes of CSRYes: -cleaner production -other local environmental issues No, but can work w/another GEF category (ozone, land degradation, international waters, POPs) Supports SME activities that fall within the GEF Operational Programs for Biodiversity, Climate Change, Land degradation and Persistent Organic Pollutants Contact personsNick Flanders Marlène Charlotin Corinne Figueredo Catherine Cassagne Vinitha Jayalal Hany Assaad Margie Peters-Fawcett Clientele criteriaIFC mainstream clients, broad sectoral and regional engagements on major CSR issues -IFC clients for cleaner production -Any client for other areas -Any funds not necessarily go to the company but to NGOs or other partners SMEs involved in eligible global environmental activities through partner FIs in selected countries Global/Local Biod BenefitsAnyAny, but emphasis on localMust absolutely show global benefits Must generate global environmental benefits Direct InvestmentNoDebt/equity $200,000 to 2,000,000Yes –any size/any instrumentFinancing through FIs to SMEs Financial IntermediariesNoPossible Debt and quasi –debt, no equity Technical assistanceOnly TA up to $300,000 Sector engagement/ project identification Grants $25,000 to 200,000Yes – any amountGrant funding to support the FI, the SMEs and market development Geographic criteriaNo, but focus on Africa, South Asia, East Asia No Economic sectors/ themesCOC, CAG, CGMPotable water, waste management (water, solid), recycling, organic farming, eco-tourism,….. Agribusiness + forestry Extractive ind. Innovative bio-businesses Eco- tourism,… Supports SME activities that fall within the GEF Operational

3. Ongoing IFC GEF Biodiversity Projects Egin-Uur Watershed Conservation Initiative Asian Conservation Company Komodo Tourism Inka Terra Ecotourism Poison Dart Frog Ranching Eco-Enterprises Fund (FEE) Lolkisale Project Location Marine Aquarium Market Transformation Initiative Indonesia Philippines Regional Mongolia Peru Regional Tanzania GEF / Total Funds $5M / $16.5M $4.5M / $19.3M $6.6M / $21.6M $1M / $2.3M $0.75M / $12.1M $0.8M / $1.8M $1M / $8.7M $0.45M / $0.9M

4. Marine Aquarium Market Transformation Initiative (MAMTI) MAMTI Objective: To shift a substantial portion of marine aquarium industry in Indonesia and Philippines towards sustainable practices certified by Marine Aquarium Council (MAC) MAMTI Approach: $6.62M GEF grant will allow three NGOs (MAC, CCIF, and Reef Check) to provide various forms of technical assistance (marketing, financial, managerial, scientific) to all levels of supply chain (fishing communities, middlemen, and exporters)

5. Fly fishing for Mongolian Salmon: Vehicle for Biodiversity Conservation Three Take-Aways:  Project Design -Employ creativity and imagination to create innovation  Fund-raising -Take risk and don’t compromise to appease bureaucracy  Implementation -Design projects with execution in mind

6. Conservation Mandala - 5 Pillars

7. 1st Pillar – Collaborative Management System Establish a Watershed Management Council --> local participation, but decision-making at ecosystem level Work with local NGO (Taimen Conservation Fund), and establish 501 (c) 3 sister organization (The Tributary Fund) in the US to provide technical assistance and financial support

8. 2nd Pillar – Natural Resource Management Plan Establish baseline biological status of the ecosystem Determine biological requirements for maintaining a healthy ecosystem Establish carrying capacity limits for sustainable use of the natural resources in the ecosystem Create watershed-level plan for the management and use of the natural resources

9. 3rd Pillar – Community Based Enforcement System Identify a high priority conservation area, commensurate with available enforcement resources Establish a ranger enforcement program with regulatory legitimacy Develop a training and management system to create a credible enforcement program Educate inhabitants on regulations through community outreach program Apply punishments appropriate with degree of the crime

10. 4th Pillar – Concession and Licensing (Financial Sustainability) Establish a concession and licensing system that maximizes the financial rate of return from the sustainable use of the natural resources Monetize a previously unvalued natural resource to provide a competitive economic alternative to unsustainable resource use practices, such as placer mining Equitably distribute the revenues to the local community inhabitants

11. 5th Pillar – Culture Based Conservation Derive conservation mandate from local, traditional Buddhist and Shamanist spiritual beliefs and cultural practices Enlist opinion leaders in the local communities, Buddhist monks and shamans to communicate conservation message

12. The Biodiversity and Agricultural Commodities Program (BACP)  Size: US$20-40 mn (including US$10 mn from the GEF)  Duration: 10 years  Expected Start Date: June 2006  Strategy: Objective- Support commodity-wide, private sector-led, initiatives that seek to implement biodiversity-enhancing BMPs in the agricultural commodities sector Private Sector Driven Partnerships Mature BMPs Commodity Focus Regional Focus