Forest Trends

Cerrando las brechas financieras para el desarrollo rural de bajas emisiones a través de estrategias financieras integradas

Sarah Lowery, Public Private Co-Finance Initiative (PPFI) Bogotá: Febrero de 2014

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Agenda

1. Principios

2. Brechas financieras

3. Estudio de caso de Colombia

4. Financiamiento integrado (p.e., Bono de REDD+)

5. Conclusión

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Varios principios pueden ayudar a desbloquear el financiamiento para el desarrollo rural de bajas emisiones

• Hay que valuar el activo ambiental creado por actividades que reducen deforestación y degradación incluido a la producción sostenible de alimentos, combustibles y fibra

• Elevar la escala para certificación y creación de carbono significa cambiar de proyectos y predios individuales a medición jurisdiccional y el financiamiento eficiente

• Financiación innovadora puede reducir los riesgos reales y percibidos de actividades de REDD+ incluyendo la producción sostenible y atraer mas inversiones públicos y privados

• Financiamiento integrado puede aprovechar a los grandes fondos siendo invertido en sectores como el agropecuario para crear arquitectura público-privado que apoya sectores rurales de emisiones bajas

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Las brechas financieras para REDD+ podrían disminuir si se integran con pools financieros tales como agricultura.

Necesario por año (miles de millones USD)

0.696 en donaciones (en 2012)2

0.021 en mercados voluntarios de carbono en 20123

Desplegados por año (miles de millones de USD)

209 (para lograr la demanda

agrícola proyectada para

2050)4

15-33 (para recortar la

deforestación para el 2030)1

REDD+

Agriculture

0.572 financiamiento nacional (en 2012)2

168(inversión privada

nacional en agricultura)5

160(gastos públicos

nacionales en

agricultura)6

1 To halve deforestation by 2030: USD 15 billion/year (UNEP 2011); 17-33 billion year from 2008 to 2030 (Eliasch Review 2008). 2 Voluntary REDD+ database, as reported by donor countries. 3 Ecosystem Marketplace 2012. 4 FAO 2012. 5 Low and middle income countries (54). Lowder et al, 2012. 6 Low and middle income countries (76). Annual average, 2005-2007. Lowder & Carisma 2011. Note: spending is not the same as investment; nonetheless, it provides some information regarding how much capital is available (and thus could be realigned) through public sector finance for agriculture.

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Nuestra iniciativa de Co-Financiamiento Público Privada trabaja en el nexo forestal y agrícola para facilitar el financiamientoExisten áreas complementarias de interés entre sectores:

• Metas de conservación ambiental de deforestación reducida y en emisiones de las granjas; y

• Objetivos agrícolas de aumento de productividad, seguridad de suministro (y demanda), y resilencia y adaptación al cambio climático.

Esto permitirá que varios pools de financiamiento sean aprovechados para LED-R.

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Por ejemplo, en Colombia sabemos que existe un financiamiento sustancial para agricultura...

FINAGRO Credit Lines

Commercial suppliers and trade credit

ODA (2011)

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

Financiamiento para agricultura en 2013

Mill

ions

(USD

)

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But little financing is targeted to sustainable production, and there are many barriers for such investment

Type of barrier Examples

Traditional financing barriers in the agricultural sector

• Difficulties accessing finance (lack of credit history or land tenure; lack of capacity to complete credit applications; few institutions offering credit in rural area; etc.);

• Transaction costs of finance (transportation costs, time involved in completing loan applications, etc.);

• High cost of capital available relative to operations/price/market risk (e.g., the cost of capital may be high, as may be price or quantity risk); and

• Contractual risks in the supply chain (potential inability to meet contract terms with other actors, from input suppliers to buyers).

Financing barriers related specifically to the transition to or implementation of sustainable agriculture practices

• Higher upfront capital costs (equipment, inputs), which can cause cash flow constraints (low or negative cash flows in early years while changing practices), and/or increased variable costs;

• Transaction costs of changing practices (searching and processing information on new practices);

• Risk of lower-than-expected yields due to factors such as inability to procure new inputs, higher-than-anticipated costs of such inputs, the learning curve of changing practices, etc.

• Few financial or other positive incentives to make up-front investments for the long term (little or no financing that rewards sustainable production, lack of robust demand or premiums for sustainable commodities); and

• Uncertainty regarding benefits, including because of unsecure tenure arrangements.

Opportunity costs of leaving forests standing or other valuable ecosystems untouched, a key component of sustainable agriculture as defined earlier in presentation and by the soy, palm oil and sugar commodity roundtables.

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Climate finance can help integrate and align domestic and other finance to support sustainable production

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A jurisdictional REDD+ bond is a mechanism through which public and private investment could be integrated

Simple bond cash flows for USD 250 million bond at 5.5% Interest

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Integrated finance can help support a virtuous cycle of REDD+, increased food production, and improved livelihoods

2

Bilateral agreement

s

Jurisdictions

LED / REDD+ Activities

REDD/carbon credits

$ or other support

Ecosystem credits

Transparent, efficient

use of proceeds

Virtuous Cycle

1

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Gracias

Para mayor información sobre Forest Trends y/o nuestra Iniciativa de Co-Financiamiento Público Pirvada:

Sarah Lowery – slowery@forest-trends.orgDavid Tepper – dtepper@forest-trends.org

Rupert Edwards – redwards@forest-trends.org