www.ecoagriculture.org

www.peoplefoodandnature.org

Investment in Integrated Landscape Management:Lessons learned from recent research

Sara J. Scherr, President, EcoAgriculture Partners

Chair, Landscapes for People, Food and Nature Initiative

World Agroforestry Centre

Nairobi, Kenya

March 15, 2017

Production agriculture and

ecosystems/biodiversity

>

60%

40-

60%

30-

40%Annual crops as % land area

Integrated Landscape Mgmt

Complex landscape mosaics with strong

biophysical-socioeconomic interactions/flows

Moving from a world of trade-offs

towards a world of synergies

Multi-stakeholder, multi-objective

Integrated agricultural

landscape initiatives

Estrada-Carmona,et al (2014);Martin-Rubi,et al (2016); Milder, et al

(2014); Zanzanaini, et al (2015)

Where, who, why ILM

2013-15 AfricaLatin America &

CaribbeanS & SE Asia Europe

Landscape

partnerships

surveyed

87 104 174 71

Principal

motivations

Reduce degradation, sustainable land management,

conserve biodiversity, improve food security, increase

productivity, improve water security, sustain cultural values

Average #

objectives8 7 6 8

Average # stake-

holder groups9 11 11 6

% with private

sector participants8 22 33 10

Most common

participants

Local govts, farmer associations, local NGOS, nat’l-int’l

NGOs, agribusiness, national govts, regional agencies

$ Billions being invested in ILM

GEF (295 projects 1991-2011, $1.2 bln + $5.8 bln co-finance)

Multilateral development ( World Bank Green Climate Fund, European Dev Bank)

Bilateral (NL, Germany, Switz, Italy, et al)

National programs (landscape restoration, REDD+, ES-based adaptation, climate-smart)

NGOs (environmental, agric, social)

Private companies (CRP, business case)

Impact investors

Photo credit: SAB Miller

Public-private-civic landscape

partnerships

The business case to invest in

ILM

Strongest where fixed assets and long-term financial interests in the landscape

Address business risks not manageable alone

Address pre-competitive sector challenges

Secure ‘license to operate’

Mobilize co-finance of critical investments

Reduce investment risks

Secure allies in negotiation with government

Quite variable by type of company and market positioning; different roles in partnership relevant

ILM Investment Needs

Enabling investments

Multi-stakeholder platform

Strategic planning and coordination

Landscape assessments, monitoring, impacts

Policies and financial incentives

Asset investments (landscape-friendly)

Agricultural and other production/value chain activities

Industry and processing

Green infrastructure/greening built infrastructure

Natural resource restoration

LPFN case studies - $2-4 billion needed per landscape

Investment needs in

Imarisha Naivasha

Enabling investments

• Imarisha-Naivasha stakeholder platform

• Imarisha Sustainable Development Plan, County coordination

• Set-up of payments for ecosystem services

• Set-up of Sustainable Development Fund

• Technical assistance to farmers and other land managers

• Monitoring of watershed health, wildlife, production, livelihoods

Asset investments

• Naivasha town water infrastructure improvements

• Water use efficiency investment by flower companies, other irrigation users

• Restoration of vegetative cover in upper watershed

• Climate-smart agricultural value chains

• Water infrastructure for pastoralists

• Maintenance and improvement of wildlife reserves

• Greening tourism infrastructure

Different types of investors

time horizon, investment size, risk appetite

Coordinating

investment

Private investments in

Imarisha Naivasha

Enabling investments

• UK retailers--ASDA, Tesco, Marks and Spencer and Sainsbury’s, LNGG:

Funded Sustainable Development Action Plan and Watershed Resource

Management Plans, Imarisha operating funds

• Finlay: financial contributions to multi-stakeholder platform

• German-Austrian supermarket REWE and Swiss-Coop: Funded research

Asset investments

• Equity Bank: low interest loans to smallholders for best practices

• Flower companies: invest in own water use efficiency

• Water user fees: local water user associations collect fees and monitor

water use (possible surcharge to support basin sustainability)

• Payments for Ecosystem Services for good practices by farmers in upper

catchment.

• Diverse companies: contribute to Sustainable Development Fund, through a

price premium from flowers sold in the EU, water user fees, and other

revenues; exploring equity investors (but requires restructuring)

Securing finance for ILM

enabling & asset investments

1) Scope existing sources of finance and financial flows

2) Develop a Financing Plan for the agreed Landscape Action Plan that identifies priority investments and roles appropriate for different types of investors

3) Foster new partnerships between finance institutions and landscape stakeholders

4) Design enabling investments to leverage, shape and complement private investment

5) Assist stakeholders to develop bankable investment proposals that contribute to landscape goals and demonstrate a clear ‘investment case’

6) Develop institutions to aggregate funding from multiple sources, and disburse large-scale funds to diverse land managers

Challenges for finance

institutions of ILM investments

Incorporating landscape criteria into financial decisions

Mitigating investment risks

Effective engagement in landscape partnerships

Linking/coordinating with other financial flows within the landscape

Monitoring multiple outcomes

Shames, et al. 2015

Business for Sustainable

Landscapes

Business for Sustainable

Landscapes Action Agenda

Businesses: Prepare your business for landscape partnerships

Financiers: Accelerate innovations in financing for coordinated landscape investments

Governments: Incorporate landscape strategies into national and sub-national policies

Landscape programs: Enhance tools, services and processes to address business challenges in landscape partnerships

Action Plan for ILM Finance

Strengthen financing strategies of landscape partnerships.

Step up efforts with financial institutions to test innovative mechanisms for blended finance in landscape partnerships.

Create national and international platforms brokering between credible and bankable landscape partnership investments and finance institutions.

Develop centers of expertise to advise and facilitate landscape partnerships to sustainably finance projects.

African Landscapes Action

Plan (ALAP) for Finance

Strengthen financing capacities of platforms

Develop a tool for scoping landscape finance opportunities (flows, actors, scorecard)

Coordinate investment among government, NGO and private actors

Develop training modules on landscape finance (Landscape Academy) to increase financial literacy

Undertake outreach to financial institutions in Africa

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