Shaping the future tree by tree ForestFinance Group – Building Forests

Scaling up private investments – opportunities and challenges

Forests for Future Generations Berlin, 12 June 2013 1

The ForestFinance Group – Who we are

• Pioneer in the afforestation of tropical mixed forests and agro-forestry projects as a

direct investment

• Over

17 years of experience

• Operations in Panama, Colombia, Peru, Vietnam (approx.

16,000 hectares of managed area

) • More than

12,000 customers

and investors • Over

€ 56 mio. investment volume

•

114 employees

, further 514 employed by our forestry service providers 2

Our business principle – Giving forests a value

Investment Retail Market WoodStockInvest ForestSavingsPlan TreeSavingsPlan CocoaInvest GreenAcacia Pure Forest I (Fund) Forest Carbon Projects

Carbon trade PDD Development Forest Carbon Projects

Development

Carbon Consulting Financial assessments Customized climate and forest investment projects 3

Our locations – Projects by ForestFinance

Reforestation and cocoa, Panama Cocoa plantation Peru Project “Wilde Buche ”, Germany Acacia Nurseries and Reforestation, Colombia DeveloPPP and Acacia Plantation in Ba Che, Vietnam 4

Case studies – GreenAcacia, Vietnam

Capacity Building - develoPPP

• Embedded Training-of-Trainer (ToT) project: Knowhow transfer (according to FSC standard) • Nationwide rollout planned • Supported by BMZ and Sequa

Existing acacia monocultures are converted to mixed stands

Direct investment opportunity for private investors with ecological and social benefits 5

– Unlocking Financing for CSA in Vietnam Agroforestry Partnership Fund (APF)

The Green Growth Action Alliance: objectives

 •

Capacity Building - develoPPP

The Green Growth Action Alliance (G2A2) was formed at the G20 summit in Los Cabos in 2012,  • • next two years, by demonstrating progress that can be made by mitigating risk and by designing and deploying innovative financing mechanisms in developing countries Supported by BMZ and Sequa 

Climate Smart Agriculture under the G2A2: the proposal

Guiding question: can G2A2 develop a concrete innovation that demonstrates how public finance can be leveraged to attract private capital to scale CSA?

   

Vietnam pilot: the Case and the Opportunity

The Vietnam Ministry of Natural Resources and Environment’s 2011-15 Green Growth Strategy is a bold proposal to transform Vietnam’s agricultural sector to deliver a 20% reduction in emissions,

20% reduction in poverty and 20% increase in growth

Vietnam is one of the nations with the highest vulnerability to climate change Vietnam will need to make its agriculture ‘climate smart’, i.e. increase resilience (adaptive capacity), meet food security objectives and reduce net national GHGs. Vietnam offers a great country pilot to develop finance innovations to implement and scale CSA bottom up 6

– Unlocking Financing for CSA in Vietnam Agroforestry Partnership Fund (APF)

The Agroforestry Partnership Fund (APF)

 •

Capacity Building - develoPPP

The Agroforestry Partnership Fund aims to achieve maximum leverage of private investments through packaging a diverse Project Portfolio that consists of diverse ‘climate smart’  • • agro/forestry projects, with an equally diverse range of sources of revenue and levels of profitability.

Supported by BMZ and Sequa diverse range of financial, environmental and social metrics has been developed that projects will be evaluated against.

Ownership and organization of the APF

    Vietnamese ministries etc. are involved and will be represented on the Advisory Board State Bank of Vietnam (SBV) commits to match investments with further 20% (80/20) The fund will target institutional investors such as asset managers, pension funds, insurances, banks and companies with specific focus on G2A2 members Initial target volume is USD 50 million expected to grow substantially in a second phase 7

Thank you very much

Dirk Walterspacher Managing Director Carbon Business Forest Finance Group

Eifelstr. 20 53119 Bonn Fon: 0228/94 37 78 0 8