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Key components of effective private sector engagement & lessons for leveraging private sector finance. Presented at: Building REDD+ Policy Capacity for Developing Country Negotiators and Land Managers Phase III: Lessons Learned: Expert Meeting and REDD Project Field Visit April 2-5, 2012.
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Key components of effective private sector engagement & lessons for leveraging private sector finance Presented at:Building REDD+ Policy Capacity for Developing Country Negotiators and Land Managers Phase III: Lessons Learned:Expert Meeting and REDD Project Field VisitApril 2-5, 2012 Presented by: Anton Espira ECO2LIBRIUM © 2012 Eco2librium
ABOUT ECO2: ECO2LIBRIUM LLC & ECO2LIBRIUM (K) LTD Eco2 www.eco2librium.net • Carbon management • Consulting • Sustainable livelihoods • Energy Efficiency • Sustainable building • Agro-forestry & landscape conservation 2 projects in Kenya: Forest Again Stoves for Life Project development & advisory Monitoring & evaluation Funding, investment & credit sale © 2012 Eco2librium
FOREST AGAIN: • CCBA Gold Level • Reforestation of over 450 ha of degraded landscape • Kakamega Forest, Western Kenya • Originally conceptualised as REDD+ • Reimagined due to funding constraints • Funded by: • Eco2 direct investment • Grants • Investors • Pre-sale of credits • Key players: • 1’ STAKEHOLDERS: • KFS • Muileshi CFA • PROJECT IMPLEMENTATION: • ECO2 © 2012 Eco2librium
STOVES FOR LIFE: • Gold Standard Certified • Installation of over 60,000 energy efficient stoves • Greater Kakamega Forest ecosystem, Western Kenya • Originally conceptualised as REDD+ Forest Again Component • Reimagined to enable funding • Funded by: • Investors • Sale of credits • Partners: • Valonji Women’s Group • Kiveye Women’s Group • Mla Chake Women’s Group • Munasio Youth Group PROJECT IMPLEMENTATION = ECO2 PROJECT FUNDING = Foundation myclimate + ECO2 © 2012 Eco2librium
CHALLENGES: • Why the private sector fears A/R projects? • Duration • Risk • Complexity • Funding • Benefit sharing mechanism • Red tape & regulatory structures • Aid paradigm • Representation • Scale • Awareness © 2012 Eco2librium
Why the private sector loves A/R projects? • Impact • Publicity • Perception PRIVATE SECTOR ENGAGEMENT: • Recognition of advantages of entrepreneurial approach • Enable legal & regulatory environment that attracts appropriate investment • Push for paradigm shift away from dependence on aid • Create support structures & risk sharing mechanisms • Seed local ecosystem © 2012 Eco2librium
LEVERAGING PRIVATE SECTOR FINANCE: • Project risk • Project duration • Stakeholders, partners & participants • Benefits & livelihood improvements • Management style, fund distribution • ROI • “Mixed bag” portfolio What do investors consider? © 2012 Eco2librium
www.eco2librium.net antonespira@gmail.com aespira@eco2librium.net THANK YOU © 2012 Eco2librium