Financing Integrated Landscape Initiatives

Artisans of the GrasslandsOctober 4, 2015

Sara J. ScherrPresident and CEO

EcoAgriculture Partners

17 Goals – 1 SolutionIntegrated Landscape

Management

Multi-objective,multi-stakeholder,

resource governance

Integrated Landscape Management

All stakeholders involvedTo identify and address trade-offs and synergies

City RegionsHealthy forests for recreation and water retention

Fresh, local food sources in urban core

Biodiverse and economically active coastal areas

Managed riparian

ecosystems

Peri-urban areas are biodiverse, mixed-use

food corridors

Africa Latin America Asia

Landscape Initiatives surveyed 87 104 174

MotivationsReduce degradation, sustainable land management,

conserve biodiversity, food security, increase productivity, water security

Average # of objectives 8 7 6

Average # of stakeholder groups 9 11 11

Participants Local & state govts, farmer associations.Local NGOS, private business

More Integrated Initiatives

• Agriculture practices that contribute to multiple landscape objectives

• Farm conservation or production• Restoration or protection of natural

assets• Environmentally and socially responsible

enterprises• Large-scale green infrastructure

Financing Needs for ILM:Asset Investment

Financing Needs for ILM:Enabling Investment

• Stakeholder engagement and cooperation

• Appropriate legal and regulatory framework

• Knowledge and capacity to plan and manage on a landscape scale

• Incentive mechanisms

The investment case for ILM: enhanced returns

• Emission reductions

• PES payments• Reduction of costs

& land regeneration

• Capital value appreciation of companies at exit

• Long term capital gain from resilient and replicable agro-forestry projects

• Short & medium term cash flows from projects

• Diversified revenue streams (biomass, certified crops)

Lake Naivasha Basin, Kenya

Imarisha Naivasha Achievements• Development of multi-stakeholder plans:

– Lake Naivasha Integrated Management Plan (LNIMP)– Sustainable Development Action Plan (SDAP)– Integrated Water Resource Action Plan Programme (IWRAP)

• Technical capacity building (monitoring, collection, analyses and dissemination of water data)

• Governance capacity• Improved land management practices by smallholders

(payments for ecosystem services)• Pilot water stewardship standard for large scale

horticulture• Sustainable development fund

Sources of FinanceInvestor/funder Focus of investment/funds

UK retailers: ASDA, Tesco, Marks and Spencer and Sainsbury’sLNGG (including Finlay’s contributions as a LNGG member)

Funded finalization of plans (SDAP and LNIMP), ‘no-regret’ activities, Imarisha operating funds

German-Austrian supermarket REWE Swiss-Coop Funded related University of Leicester research

Government of KenyaDistrict government (newly created, largely federally funded now)Town of Naivasha government

Imarisha operational support, dedicated funding through line ministries. Sewage treatment and water provision and management in Naivasha town

Kenyan Embassy of the Kingdom of the NetherlandsRegional Water Authorities in the Netherlands

Programme on integrated water resources management and capacity building of institutions, hydrological models

CIDA - CanadaGIZ - Germany Water stewardship

UK DfID Support to WWF- Climate change scoping and adaptability

NGO and development partners WWF SNVTwente University (ITC)

Water resources management pass-through grants/investments

Equity Bank, Kenya Low-interest loans for small-scale dams

Imarisha: Finance challenges• Most investment is water-focused• This sector-based focus has limited the ability for

integrated management solutions• Uncertainty about continuity for long-term solutions.

Need to cultivate investor motivations and ‘skin in the game’

• Payments for Ecosystem Services:– Industry views as a tax– Fairness concerns– How to scale from 1000 smallholders to 250,000?

• Strategic coordination of all sources of finance to serve integrated outcomes is needed

Can we transform finance for ILM?

Who is financing sustainable land management?• 200+ Institutions• 250+ Mechanisms• Range of interfaces

with ILM components

Social/Environmental Return Financial Return

Governments

NGOs/Foundations

Development Finance

Inst.

Impact Investors

Traditional Investors

Challenges of Asset Investment• Low risk tolerance• Short time

horizons• Investment size

mismatches

How to Attract Investors• Use public finance to reduce risk• Use REDD+ to catalyze asset

investments• Bridge asset investments across

landscapes• Employ investment standards and

guidelines

How to strengthen enabling investments

• Clarify, quantify and communicate• Mobilize public and civil society to

work across sector silos• Fund coordination of investments at

the landscape scale • Incentivize and facilitate asset

investment• Foster new partnerships

Innovations in ILM Finance• Impact Investors• Public finance for investment

coordination• “Landscape funds”• Landscape-scale enterprises

EcoAgriculture PartnersMobilizing Finance for ILM

• Help landscape initiatives develop financing strategies

• Develop landscape funds• Landscapes for People, Food and Nature

Initiative – Finance Working Group• Analyze financing strategies• National assessments of finance opportunities

and constraints• Advocacy

THANK YOUTo continue the conversation email me at sscherr@ecoagriculture.org