Investing in green growth and poverty

Transcription

1 Investing in green growth and poverty reduction in Indonesia Presented by: Deborah Lilienfeld Aragão Investment Manager, Oryx Impact Investments, Fauna & Flora International

2 Investing in green growth and poverty reduction in Indonesia Overview The challenge with green growth Fauna & Flora International s vision to support green growth Oryx Impact Investments Discussion 2

3 Ecosystem throughout Asia, that have important endemic species and harbour critical ecosystem services, are under threat Some of ecosystems have been legally designated as protected areas while other areas do not have a sustainable sourcing management plan Photo: Jeremy Holden

4 350 million of the world s poorest people depend almost entirely for their subsistence and survival on forests A further 1 billion poor people - about 20% of the world's population - depend on remnant woodlands, on homestead tree gardens, and on agro-forestry systems for their essential fuel wood, food and fodder needs. Photo: Juan Pablo Moreiras Source: World Commission on Forests and Sustainable Development

5 Photo: Martin Hardiyono How can we support these communities while support the maintenance of important ecosystem services?

6 Investing in green growth and poverty reduction in Indonesia Overview The challenge with green growth Fauna & Flora International s vision to support green growth Oryx Impact Investments Discussion 6

7 Fauna & Flora International (FFI) works in over 40 countries to conserve biodiversity through lasting partnerships with the people closest to it FFI is a UK charity, whose mission is to conserve threatened species and ecosystems worldwide, choosing solutions that are sustainable, based on sound science and take account of human needs. Where we work in Asia FFI is currently implementing projects in over 40 countries, and has a large presence in the Asia-Pacific with active projects in Indonesia Laos Cambodia Myanmar Philippines Vietnam China Australia 7

8 FFI engages with actors from a variety of sectors in order to effectively support biodiversity conservation, in addition to more traditional conservation approaches Local communities Support in development of REDD + projects Community development projects Ecosystem under threat Civil society Capacity building for local civil society organizations Small and growing businesses Financial support for small and growing businesses Large companies Ecosystem valuation support Development of environmentally sustainable approaches FFI has developed a financial mechanism to support biodiversity conservation, which includes a blended financial approach focusing on small and growing businesses 8

9 FFI is piloting an innovative approach to support small and growing businesses Hypothesis Small and growing businesses can provide positive impacts to biodiversity conservation and support the well-being of local communities Problem Small and growing business often lack access to finance from traditional financial institutions that can enable them to grow and provide deeper impacts to biodiversity and human well-being. FFI s approach Development of Oryx Impact Investments (OII), a fund to provide loans to small and growing businesses (SGBs) that can demonstrate positive biodiversity and social impact in support of FFI s vision and mission. 9

10 Investing in green growth and poverty reduction in Indonesia Overview The challenge with green growth Fauna & Flora International s vision to support green growth Oryx Impact Investments Discussion 10

11 What is Oryx Impact Investments? OII s unique approach target small and growing businesses (SGBs) that can demonstrate positive biodiversity and social impact in support of FFI s vision and mission. SGBs can be at an early or mature stage, community managed or privately owned with a strong community development focus. What does OII provide? debt and business development support to selected SBGs to enable them to achieve biodiversity and social outcomes Loan size Loans of USD 25k-500k Loan tenure Up to 5 years Focus Currently active in Indonesia, with plans to expand. Expansion likely to be in Asia 11

12 Oryx Impact Investments seeks a triple bottom line Environmental Social Financial Target high biodiversity areas Demonstrate positive species or habitat based conservation impact Mitigate a negative impact to conservation Support sustainable practices Stimulate local employment Provide livelihoods opportunities Investments will deliver very modest financial returns to investors Pilot focuses on proof of concept of a financially sustainable fund

13 Oryx is currently focusing on three main areas Reach economies of scale Replicate model Demonstrate environmental & social returns Move beyond pilot stage in Indonesia Expand to USD 20M + fund Exploit approaches that are agile and respond to current demand Raise interest from donors and investors Replicate model to other countries, likely Asia Generate biodiversity and social benefits throughout the region Select businesses that deliver tangible environmental and social returns along side modest financial return Develop a monitoring and evaluation methodology to quantify returns DEVELOP STRONG PARTNERSHIPS 13

14 Investing in green growth and poverty reduction in Indonesia Overview The challenge with green growth Fauna & Flora International s vision to support green growth Oryx Impact Investments Discussion 14

15 Can Oryx s model be replicated in Asia? Are enough business models that contribute to green growth and poverty alleviation in other countries? What are the challenges a fund like Oryx would face in other countries?

16 Thank you! SWITCH-Asia Network Facility c/o Collaborating Centre on Sustainable Consumption and Production (CSCP) tel network.facility@scp-centre.org