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E N G A G I N G T H E P R I V A T E S E C T O R F O R G R E E N G R O W T H A N D C L I M A T E C H A N G E

Partnering with the private sector to SFM and enhance natural capital

Paris, France

1st March 2016

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CONTENT

About UNEP Finance Initiative

An approach for promoting sustainable landscapes

• Enabling policy frameworks – fiscal policy

• Engaging the private sector in REDD+ and sustainable landscapes

ABOUT UNEP FINANCE INITIATIVE

• Unique partnership between the UN and a global network of over 200

banks, insurers and investors from 51 countries

• Established on the basis of a shared conviction that the financial sector

has a vital role to play in supporting sustainable development

• UNEP FI is the ‘connective tissue’ between financial institutions, the

United Nations and policy makers

• Key implementing partner on private sector engagement for the UN-

REDD Programme – focus on removing deforestation from commodity

and financial supply chains

“Changing Finance, Financing Change”

FISCAL INCENTIVES IN THE CONTEXT OF

SUSTAINABLE LANDSCAPE MANAGEMENT

Source: ODI, 2014

• Subsidies for agriculture are orders of

magnitude greater than finance for sustainable

rural development

• Fiscal & policy incentives supporting

agricultural development were not designed

with environmental management in mind

• Enabling environment crucial for REDD+, supply

chain sustainability, and zero net deforestation

commitments

• Consider revisions to or redesign of fiscal

incentive structures in the context of relevant

development plans

Getting the enabling environment - Incentive structures are crucial to send

the right signals to the private sector

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ENGAGING THE PRIVATE SECTOR IN REDD+

AND SUSTAINABLE LANDSCAPES

• Enabling conditions - Public-private sector dialogues to identify policy, financial,

and institutional bottlenecks hampering the adoption of GAP; Interventions that

can mobilize private finance.

• Project economics - A business case for “zero-deforestation” commodity

production – Tools to account for deforestation related risks and companies’

strategies to address risks and compensate for potential lost income.

• Access to finance – increasing the

availability of long-term finance for

agricultural smallholders; DIBs and

other RBF instruments; scoping of

investment opportunities and

mapping of national financial

sectors.

T H A N K Y O U

Jacinto Coello

(jacinto.coello@unep.org)