aditya putta investment associate worldstartup collective
TRANSCRIPT
2
Aditya Putta Investment AssociateWorldStartup Collective
3
Aaron Vermeulen Director Green Finance Unit WWF Netherlands
LAUNCH
LUSAKA, ZAMBIA 3-12-20194
OPPORTUNITY WINDOW The Dutch Fund for Climate and Development
€75M
€30M
€55M
Structure
Climate Resilient Economic Growth in Developing Countries
Themes
WILLING TO BE A LONG-TERM PARTNER OF DFCD
NEEDS TO BE A PRIVATE-SECTOR ENTITY: A PRIVATELY-OWNED CORPORATE OR A NON-PROFIT COOPERATIVE/SOCIAL ENTERPRISE.
NEEDS TO BE WELL RUN, SHOWING PROFESSIONALISM, SOUND CORPORATE GOVERNANCE STRUCTURE AND PROVEN FINANCIAL TRACK RECORD
NEEDS TO COMMIT TO ENVIRONMENTAL AND SOCIAL SAFEGUARDS FOR THE PROJECT
NEEDS TO BE WILLING TO CO-INVEST IN THE DEVELOPMENT COSTS OF THE PROJECT
PARTNER
PRIVATE SECTOR
PROFESSIONAL
E&S FOCUS
CO-INVESTOR
! WORKING WITH PRIVATE SECTOR PARTNERS ENABLES US TO LEARN ABOUT IMPLEMENT BANKABLE PROJECTS BY WORKING WITH EXPERTS.
Collaboration
THERE IS A PRIVATE SECTOR PARTNER THAT HAS BEEN IDENTIFIED AND IS ON BOARD
Ticket SizeHAS POTENTIAL AS A BANKABLE PROJECT (COMMERCIAL VIABILITY)
POTENTIAL FOR A $5M INVESTMENTBankable Nature Solutions are solutions for environmental challenges that at the same time generate an acceptable (risk-adjusted) return on the money invested. They are managed by the private sector and as their design is centered around revenue generating activities that help recover project costs and generate a return on investment.
Private Funding
BNS Project Carbon
Grants
BNS Project
Private Funding Grants
FUND
Private Funding
BNS Project
BNS Project
BNS Project
BNS Project
Assessment Criteria
On the DAC List which shows all countries and territories eligible to receive official development assistance (ODA).
Meets the Rio Marker System on Climate Change (Mitigation or Adaptation)
Development Impacts for vulnerable groups, particularly around youth and gender.
National development plans and priorities of the host country, and the project is aligned with the NDCs
Has potential as a bankable project (commercial viability) and will seek an investment of approximately $5m in the next two years
The support that is requested from the DFCD is not currently available from existing commercial sources of finance
No Activities such as Deforestation, Fossil Fuel, or Nuclear Energy. There is a full list that can be requested.
ELIGIBLE COUNTRY
RIO MARKER 2
VULNERABLE GROUPS
NATIONAL OWNERSHIP
COMMERCIAL VIABILITY
FINANCIAL ADDITIONALITY
NO EXCLUDED ACTIVITIES
DFCD Focus Countries
BANKABLE NATURE SOLUTIONS BLUEPRINTS SERVES AN INTRODUCTION TO BANKABLE NATURE SOLUTIONS AND PRESENTS 13 CASE STUDIES THAT OFFER DIFFERENT SOLUTIONS THAT GENERATE A FINANCIAL RETURN AND HAVE A POSITIVE IMPACT ON NATURE AND CLIMATE.
The case studies cover water & sanitation, forestry, climate-smart agriculture, environmental protection and renewable energy in Asia, Africa, Europe and Latin America.
Blueprint Guide
Application Process
SUBMIT IDEA
PROJECT REVIEWED
FULL APPLICATION
DFCD APPROVAL
CONTRACT SIGNED
PROJECT STARTED
• DFCD Team Reviews Project
• DFCD Team Contacts Applicants to provide feedback
• Go/No Go Decision made
• Check Project Against Criteria
• Complete Intake Form
• DFCD Team sends full application document
• Applicant completes document
• DFCD Team supports with questions and clarification
• Project is Reviewed by DFCD Team and Approvers
• DFCD Team decides on Go/No Go of Project
• Contract documents sent to applicant
• Contract agreed and signed
• Project Activities Kicked off
• If needed, local office can be engaged and contracted
WWF APPROVED
• WWF Office is Engaged to discuss Project
• Landscape Elements, Risks, Safeguards, Local Partners and Impacts are discussed
• Red Flags and Concerns are noted
• Role of Local Office agreed
• WWF Office agrees Go/No Go of project
WATER FACILITY
LAND USE FACILITY
ORIGINATION FACILITY
STAGE 1: STRUCTURE PROJECT
STAGE 2: DEVELOP PROJECT
STAGE 3: HANDOVER
STAGE 0: DISCOVERY PROJECT
• Identify Technical Options and Partners
• Develop High Level Business Plan with Financial and E&S Elements
• Engage Key StakeholdersUP
TO $
40K • Full business case
development• Project development
support on legal, technical and finance
• Focus on Development, impact, gender & inclusiveness U
P TO
$30
0K
OPPORTUNITY WINDOWS
INTAKE FORM
INVESTMENT DECISION
INVESTMENT DECISION
Opportunity Window Process
FOR-PROFITS ONLY
3 TO 6 MONTHS 6 TO 12 MONTHS
EARLY STAGE DEVELOPMENT (PRE-FEASIBILITY LEVEL)
CO-FINANCE REQUIRED
NON-PROFITS AND FOR-PROFITS
NO CO-FINANCE NEEDED
Origination Facility
WWF® and ©1986 Panda Symbol are owned by WWF. All rights reserved.
WWF, 28 rue Mauverney, 1196 Gland, Switzerland. Tel. +41 22 364 9111
CH-550.0.128.920-7
17
Fabricio de Campos DFCD LAC LeadWWF
18
Étienne Desmarais CEO ECOTIERRA
managed & operated by
Work with small farmers to responsibly use land in order to accelerate communities’ sustainable development, thereby
tackling climate change and land degradation.
Project design
Partnerships development and financing
Project operation
What we do
20
Sale of projectsoutputs
OUR FOCUS
INVESTING IN SMALLHOLDERS TO
REDUCE LAND DEGRADATION AND
SUPPORT SUSTAINABLE DEVELOPMENT
RETURNSSUSTAINABLE DEVELOPMENT=
Private equity fund
Project developer & operatorFund manager
Café Selva NortePERU
IN OPERATION
Sierra Nevada ProjectCOLOMBIA
IN OPERATION
Apanas Asturias Watershed
NICARAGUA
QuillabambaPERU
Huila Cacao projectCOLOMBIA
Strong portfolio of qualified projects
YEAR 1
YEAR 2
YEAR 3
The Café Selva Norte Project, PeruThe Café Selva Norte project is our first of several large-scale projects in Latin America funded by Urapi. The model aims at transitioning the coffee value chain to a more sustainable model to the benefit of coffee producers as well as all value-chain stakeholders.
Project activities
Micro-credit for land use transition to sustainable coffee agroforestry systems
Monitoring of activities’ environmental impacts and carbon credit generation within a VCS certified project
Local state-of-the-art dry processing mill, co-owned by coops, for improved quality and traceability
Sales of project’s coffee and carbon credits with added value
6 partn
er
coffeeCOOPERATIVES
8,250HECTARES
CONVERTED TOsustainable agroforestry
3,000producersINVOLVED
200,000HECTARESof forest conserved
3.8M tCO
2e
emissions reduced
Total Investment: $14,7M
CAFÉ SELVA NORTE BASELINE
Local Market
Low yieldPoor quality
Low revenuesNo investment capacity
Deforestation and land degradation
Urapi investment model
IMPACTS
Increased incomes
Revenue diversification
Access to credit
Job creations
Increased sustainable productivity
Forest conservation
Reforestation
CO2e emissions reduction
Infrastructure development
managed & operated by
