German bilateral financial cooperation forests Johannes Scholl June

German bilateral financial cooperation forests Johannes Scholl June 2013 Bank aus Verantwortung

International activities of Kf. W Task Financial Cooperation with Developing Countries ● Promotion of reform processes, Objectives investments/advisory services in cooperation with governments and public institutions in developing & middle income countries ● Climate / Environment Areas Market entry Entrepreneurial Development ● Promotion of the private sector in developing & middle income countries ● Financing of investments and advisory services for small and medium enterprises International Finance of Exports and Projects ● International Finance in the interest of the European and particularly the German Economy by promoting exports and overseas investments ● Climate / Env. ● Energy/Trade ● Financial System Development ● Infrastructure ● Telecom ● Economic Infrastructure ● Transport ● Health ● Social Infrastructure ● Manufacturing ● Commodities ● Very early phase ● All economic sectors ● Early phase ● Mature markets Kf. W Entwicklungsbank Target Markets DEG Kf. W IPEX-Bank Developing Country Middle Income Country Industrialized Country 2

Financing Instruments of Kf. W Development Bank Tailor-made Financings for Every Partner Financial Cooperation Budget funds 2012 EUR 1, 639 million Kf. W funds 2012 EUR 3, 091 million Concessional finance Budgetary funds only Development loans § Grants and Standard Loans EUR 1, 526 million § Combination of budgetary and Kf. W funds Promotional loans • Kf. W funding only § EUR 1, 603 million Budgetary funds: EUR 112 mn Kf. W funds: EUR 1, 487 million 3

Finance for Biodiversity / Forests: An upward trend Kf. W Appraisals, Committments and Disbursements for Biodiversity (2008 -2012, million EUR) Quelle: Kf. W Source: Kf. W Forestry-related projects around 30% of biodiversity committments 4

Three-dimensions of improved framework conditions › RIGHTS: Clarify rights and secure access to resources › CONTROL: Enhance public and social control capacity › INCENTIVE: Promote sustainable practices of resource use 5

Example: Forest Management in the Amazon, Brazil › Objective: Sustainable Management of Public Forests in the Amazon › Partners: Brazilian Forest Service (SFB) and Nature Conservation Agency (ICMBio) › Activities: › RIGHTS: Preparation of public forests for concession (Plans, Demarcations etc. ) › CONTROL: Building-up a decentralized SFB management structure › INCENTIVE: Building-up a regional center for applied education › INCENTIVE: Financing a pilot facility for energetic use of wood › Grant: EUR 15 Mio. › Duration: 12/2011 – 12/2015 6

1. Antecedentes Some expected impacts by 2015: -Decrease of deforestation by 30% -2 million hectares under concession -Annual production of 1 million m³ sustainable timber -7 - 7

Some requirements for Financial Cooperation › Intergovernmental agreement › Public implementation partners › Positive social and enviromental impacts › Scale › Bankability 8

Thank you! johannes. scholl@kfw. de martin. geiger@deginvest. de Bank aus Verantwortung