Sicirec Group. Making profit with nature conservation. Biodiversity preservation. Profitability. Poverty alleviation

Transcription

1 Making profit with nature conservation Profitability Biodiversity preservation Poverty alleviation

2 Sicirec Group 1991: Sicirec founded Consumers organisation Investment Management Trading platform 2007: Company reorganisation Own plantation forestry projects

3 The Sicirec Formula Land use: Spatial mix: Economic land use & Nature conservation Deal: (maintaining / restoring coherent ecological networks) Production areas: 100% financial profitability Conservation areas: 100% maximum values for nature Cheap financing, profit and livelihood improvement in exchange for Setting aside % of land property for nature conservation

4 Restoring, sparing and protecting ecological network structures Ecological zones and corridors with a target of 100% climax vegetation No focus on multiple land use Ecological structures on every level: stepping stones ecological connections regional and national ecological corridors

5 The Sicirec Formula Financing profitable productive areas in exchange for permanent protection of interwoven ecological zones Why? Population explosion Ubiquitous colonisation Cash is king Unstoppable economic forces Difficult to prevent larger virgin areas from being exploited How? Clear spatial distinction between protected ecological zones and productive areas Finance profitable projects in productive areas Create legal permanency of preservation of coherent ecological network structures Result: Spatial integration of productive and protected areas Creating opportunities for investors to make a profit from the preservation of nature by means of conditional funding

6 The Sicirec Formula in practice: ArBolivia Sicirec: Financing, technical support, organisation Payment for labour and fair trade timber prices Create enduring livelihood improvement Smallholders: Land & labour Permanent conservation - 20% - 30% of the project area Net timber revenues split 50% - 50%

7 Financing method Equity investments Carbon credit sales Tree planting subsidy certificates Other environmental services, such as REDD Low interest Green Loans from Dutch Green Funds Financing ingredients create very good IRR upside

8 Profitability for all parties High IRR for investors for 40 years Land use plan for whole of Smallholders property Smallholders paid from the start Access to microcredit facilities Investors and smallholders each 50% of net timber revenues Livelihood improvement Restoration and conservation of ecological networks Lasting preservation of biodiversity

9 Securing permanency of ecological network structures Method of financing is structural and lasting Anchored in land use planning Permanent legal protection for ecological infrastructure Involvement of Local people Local authorities (regional) Government Education Ecological awakening on all levels

10 The ArBolivia project 7,200 hectare plantation forestry project Start of the project in September 2007 Predominantly indigenous tree species (18+ species) 5,000 hectares forest plantations 1,000 hectares agroforestry 1,200 hectares permanent nature conservation Cooperation with smallholders and farmers federations

11 Long term commitment Smallholders commitments legally secured Payment for labour Fair trade mechanism: 50% of net timber price secured by project >> 100% local timber market price Micro credit facility trees as collateral 10% bonus payment through cooperatives 20% of net revenues for management

12 Current status ArBolivia project 1,000 smallholders contracted Project officially certified as Green Project First PDD registered with UNFCCC January 2009 Total of $ 3.0 million invested to date 1,600 hectares forest plantations planted 140 hectares agroforestry 290 hectares of nature conservation

13 Current status Financials Total project costs $ 17.2 million $ 3.0 million covered $ 7.0 million to be financed with green loans > $ 3.4 million CO 2 credit sales & tree planting certificates < $ 3.8 million needed from equity investors Financing ingredients create very good IRR upside

14 Future Extension of ArBolivia project Smallholder projects, but also projects covering larger expanses Opportunities for similar projects Also in other countries and continents Additional income from REDD Liquidity for equity investors First additional project in Ghana, west Africa

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