INVESTING IN TREES AND LANDSCAPE ... - PROFOR

More documents

Recommendations

Info

Hard investors, on the other hand, should: • Be prepared to negotiate some terms directly with government (e.g., tenure) but with a mandate agreed on with rights-holders; • Be prepared to act as a business mentor; and • Ensure that all materials and communications are understandable to the all stakeholders (e.g., through training, translation, and dissemination). Investors are usually already convinced by the role of SMEs in the economy at large and pragmatic about the risks of investing in that sector. Scale is less of a problem if the obstacles to aggregating projects can be overcome and investors can use portfolio approaches to mitigate risks. The investment proposition is that value can be released by enabling communities to obtain command over their forest resources, manage themselves as a viable enterprise, and establish links farther down the value chain. These issues can be addressed in the following ways: • There may be opportunities to make strategic and complementary investments across the value chain to overcome bottlenecks and fill gaps. Broader market presence means the ability to form vertical links (e.g., access to specialist markets). • Capacity building and training costs can be factored into initial investment without significantly reducing the IRR—perhaps by less than 1 percent. Agencies that provide organizational development (e.g., business development service providers) may themselves be investment opportunities. • Certain investors can apply their experience in venture capital to the forest sector, enabling innovative or fragile businesses to be incubated until they reach viability and scale. • More equitable and productive company/community partnerships can have strategic value to the investor that goes beyond the usual corporate social responsibility goals. This will require codes of practice and performance agreements to apportion responsibilities and benefits fairly among all parties. Rights-holders Institutional quality does not begin and end with national governments. Local organizations also need to consider how they can improve in order to enhance the conditions for investment. Wellgoverned local institutions (community groups, tribes, clans, etc.) are more likely to be amenable to capacity building and also to honor the terms of the deal. Rights-holders should take the following actions: • Undertake the necessary steps to map out, campaign for, delimit, and register commercial rights. • Establish a legally competent entity that is empowered by the community to enter into a contract. • Push for training in business and basic bookkeeping, and bring experience of natural resource use into the learning process. • Ensure that local institutions (e.g., customary law) are legible to outsiders where relevant. Most important, rights-holders must acknowledge that economic development will bring about transformation in their circumstances, which may be largely desirable but may also be accompanied by some social upheaval. They need to make plans to ameliorate any negative effects of this process. Chapter 3. OPPORTUNITIES AND CONSTRAINTS FOR INVESTING IN FORESTS AND TREES IN LANDSCAPES 95
NOTES 1 Chris Buss: senior program officer, Forest Conservation Programme, International Union for Conservation of Nature (IUCN), Gland, Switzerland. Dominic Elson: independent consultant, Trevaylor Consulting. Duncan Macqueen: leader, Forest Team, Natural Resources Group, International Institute for Environment and Development (IIED), Edinburgh, Scotland. Carole Saint-Laurent: senior adviser, Forest Policy and Partnerships, Forest Conservation Programme, International Union for Conservation of Nature (IUCN), Gland, Switzerland. 2 “Local control” means formally or informally, owned, managed, or used by forest-dependent people such as smallholders, local communities, and indigenous people, as opposed to managed by large companies or the state. 3 Through the Growing Forest Partnerships initiative, in conjunction with the Forests Dialogue, investors in the forestry sector, forest rights-holders, and other stakeholders have been working together to explore the opportunities and constraints for improving investment into local controlled forests and determining how investment can be directed to realize the opportunities provided for substantial economic, environmental, and social returns. A series of field dialogues have taken place in Kenya, Panama, Nepal, and Macedonia, along with interactive dialogues specifically targeted at obtaining investors’ input into the dialogue stream. 4 Sustainable investing—also known as socially and environmentally responsible investing—considers the three dimensions of social, environmental, and economic returns, sometimes abbreviated as “people, planet, profit.” 5 http://forestconnect.ning.com 6 http://www.greenwoodglobal.org 7 http://www.eiti.org 96 INVESTING IN TREES AND LANDSCAPE RESTORATION IN AFRICA
Page 1 and 2:
INVESTING IN TREES AND LANDSCAPE RE
Page 3 and 4:
Acknowledgments This volume draws o
Page 5 and 6:
REFERENCES_________________________
Page 7 and 8:
vi INVESTING IN TREES AND LANDSCAPE
Page 10 and 11:
OVERVIEW Reforestation measures for
Page 12 and 13:
out their plans. This vision of cli
Page 14 and 15:
ABBREVIATIONS ACT ADB BDSP CA CBI C
Page 16 and 17:
PROFOR RA REDD REIT SADC SAGCOT SFM
Page 18 and 19:
INTRODUCTION WHAT DO WE MEAN WHEN W
Page 20 and 21:
The approach can involve the use of
Page 22 and 23:
HOW CAN WE GENERATE INVESTMENT? Des
Page 24 and 25:
1 TREE-BASED AND OTHER LAND MANAGEM
Page 26 and 27:
Macro Trends That Affect Demand for
Page 28 and 29:
In this context, investment opportu
Page 30 and 31:
Indigenous Fruits, Nuts, and Kernel
Page 32 and 33:
Honey The global trade in honey is
Page 34 and 35:
TABLE 1.4. PRODUCTION AND CONSUMPTI
Page 36 and 37:
continue to depend on charcoal and
Page 38 and 39:
Tree Crops Coffee is one of the top
Page 40 and 41:
Faidherbia albida intercropping sys
Page 42 and 43:
Carbon storage in fertilizer tree s
Page 44 and 45:
Marketing and Processing Investment
Page 46 and 47:
1.4 VALUE CHAIN INNOVATIONS FOR PRO
Page 48 and 49:
In Africa, farms that engaged in ce
Page 50 and 51:
3. Some tree-based investments, suc
Page 52 and 53: 2 WHERE DO PRIVATE MARKET INCENTIVE
Page 54 and 55: and coordinate investment in major
Page 56 and 57: BOX 2.1. KAGERA RIVER BASIN: TRANSB
Page 58 and 59: at first seemed modest, when adjust
Page 60 and 61: with strong policy and extension su
Page 62 and 63: country-level analyses to identify
Page 64 and 65: supermarket in Africa, and growing
Page 66 and 67: nonfarmed areas in infrastructure,
Page 68 and 69: BOX 2.5. WESTERN KENYA TEA LANDSCAP
Page 70 and 71: size of an agricultural carbon proj
Page 72 and 73: COUNTRY PUBLIC PRIVATE (by descendi
Page 74 and 75: To avoid participating in this scen
Page 76 and 77: need to be developed. Progress in l
Page 78 and 79: 3 OPPORTUNITIES AND CONSTRAINTS FOR
Page 80 and 81: BOX 3.1. REDD BENEFITS TO LOCAL COM
Page 82 and 83: SMEs operate in various kinds of va
Page 84 and 85: sovereign wealth funds, and so on.
Page 86 and 87: Investors may be neither willing no
Page 88 and 89: BOX 3.3. OVERCOME REGULATORY BARRIE
Page 90 and 91: land must be unclaimed wilderness.
Page 92 and 93: issues should be dealt with before
Page 94 and 95: Capacity building is relevant for a
Page 96 and 97: Certain issues should be explored f
Page 98 and 99: anything. For this reason it is som
Page 100 and 101: to increasing the capacity of commu
Page 104 and 105: REFERENCES Aagaard, P. 2010. “Con
Page 106 and 107: Cheboiwo, J. 2007. “Economic and
Page 108 and 109: Feleke, S.T. and R.L. Kilmer. 2009.
Page 110 and 111: Huang, S. 2004. Global Trade Patter
Page 112 and 113: Mathenge, M., J. Olwande, F. Place,
Page 114 and 115: Place, F., S. Franzel, J. Dewolf, R
Page 116 and 117: Sileshi, G., F. Akinnifesi, O.C. Aj
Page 118 and 119: _____. 2011. Conflict, Security and
Page 120 and 121: ANNEXES ANNEX I. SOURCES OF SPATIAL
Page 122 and 123: ANNEX II. INVESTOR TYPES IDEAL TYPE
Page 124 and 125: BO LAGER pointed out that farmers w
Page 126 and 127: areas and watersheds and to anticip
Page 128 and 129: The company does not deal with fore
Page 130 and 131: ANNEX IV. INVESTMENT FORUM PARTICIP
Page 132 and 133: FIRST NAME LAST NAME TITLE COMPANY
Page 134 and 135: FIRST NAME LAST NAME TITLE COMPANY
Page 137: HISTORICALLY, BOTH PUBLIC AND PRIVA
show all

INVESTING IN TREES AND LANDSCAPE ... - PROFOR

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?