Petra Hamers (FSC) PDF, Size: 2,16 MB Added - Bad Request

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Petra Hamers (FSC) PDF, Size: 2,16 MB Added - Bad Request

Bridging the gap.......... between certified forestand the financial sectorSide event - UNFF 10Petra HamersIstanbul, April 12th 2012


PresentationThe financial gapTAA - The Amazon AlternativeFAST – Finance Alliance for Sustainable TradeSCOPE InsightOur joint cooperationLessons learnedProjections 2013


The financial gap‣ Lack of understanding the forest sector‣ Risk perceptions:volatile markets, cash flow cycle too long‣ Environmental issues‣ Bad experiences, bad reputation of the timber sector‣ Credible information on the companies‣ Quality of the proposals


A Alternativa AmazônicaThe Amazon Alternative


IDH tropical timber programsTropical FSC timber to 33% in NlLinking Europe => EU STTC,3 x 10% increase in EuropeCertification of2.5 million ha FSC forest inBrazil/Peru/BoliviaCertification of 4 millionha FSC forest inCameroon, DRC, Congo-Band GabonCertification of 5million ha FSC forest inIndonesia


Forest sector Brazil, Bolivia, PeruNatural Forest‣ In average : relatively small concessions/parcels‣ Often communities involved‣ Diverse forest composition‣ Timber and NTFPsCertification‣ 2012: 9,3 million ha of FSC certified (of total LA = 13)‣ FSC National offices / Regional Office‣ Accredited national FSC standards;Brazil also specifically for community forestry‣ Combined FSC/FT certification


Amazon forest sectorLegality‣ No VPA’s yet‣ Strengthening forest institutions‣ Increased interest in Controlled WoodTimber export and processing‣ Small holders / communities with little access to markets‣ Strong local markets (no certification required)‣ Export FSC timber Peru increases‣ Export FSC timber Brazil halted;‣ Export Bolivia timber products increases


The Amazon Alternative Public Private Partnership € 7 million budget(50 % IDH + 50% from companies, NGOs) 2009 - 2013 Connecting to existing initiatives Developing what is missing:innovation in the sector


TAA targetsBrazil: + 1.2 million ha (1.2)Peru: + 0.7 million ha (0,67)Bolivia: + 0.6 million ha (2)Increase of FSC certified timber on domestic andinternational marketsStrengthening of FSC national offices: long term multiactor cooperation


4 Strategies• Demand developmentMarket information, introducing importers, brokeringservices, GFTN, FSC market place, marketing campaigns• Preparing Certification : FM and CoCC/B analysis; co-financing training, manuals, HCVF studies,feasibility group certification, cooperation private sector /communities, FSC audits


4 Strategies• Efficiency increaseResearch and promotion LKSTimber processingTimber products• Access to FinanceGovernmental policiesInvolvement financial sector


Results December 2012Areas:• Commitments enterprises / communities : 2 million ha• 846,000 ha FSC certified (11+9) + 943,000 ha underway• Tool for cost-benefit-analysis of FSC certification• Involvement local association concession holders• Cooperation between local companies and community companies(Bolivia) or small holders (Peru)Marketing• 16 CoC certifications, 23 underway• Information on timber volumes (incl LKS)• New commercial relations; 7 Dutch importers involved• Monster kits with 30 timber species• Introduction FSC broker Peru• Increase exports FSC timber (products)• Increase FSC timber on domestic markets


Results May 2012Efficiency• Efficiency increase in timber processing• 3 Peruvian companies linked to Dutch LKS consortium• Product developmentAlliance building :• FSC, WWF, ICCO, RA, FAST, CBI,• training centers, business associations,• certification bodies,• Governmental institutionsAccess to finance• 5 loans, 3 FI’s, 2 financial products• One guarantee system being developed.


BUILDING BUSINESSES AND LIVELIHOODS THROUGHSUSTAINABLE TRADE FINANCEwww.fastinternational.org


FAST: Finance Alliance for Sustainable TradeAsia0%Can. US.7%África30%FAST members per regionEuropa9%AméricaLatina 54%Latin AmericaUS.AfricaAsiaEuropeCan.- International not-for-profitorganization, founded in 2008.- 130 members in 30 countries all overthe world.- Secretariat in Montreal, Canada.ObjectiveSecure a continuous growth ofsustainable agricultural and forestproduction and commerce; by increasingthe number of sustainable SME’s withsuccessful access to finance and toadequate tools for financial riskmanagement.


FAST MembersFinancial Institutions (IFs), sociallyand economically oriented, SMEs,Certification Bodies, NGOs, socialinvestors and value chain actors.Rabobank,Interamerican Development BankMerkur BankProyecto Cambio-BCIERoot CapitalFIRACalvert Foundation,Conservation-International Verde VenturesFSC InternationalCoatlah Forest Cooperative in HondurasRainforest AllianceCATIEScope InsightPRINCIPALBENEFICIARIESSMEs, who need Access to Financebetween US$ 20.000 and 1 million.Financial Institutions, socially andeconomically oriented.Sustainable agricultural andforestry sector(coffee, cotton, cacao, timberproducts, NTFPs, fruit, tea,eco-tourism).Regions: LA and Africa


Increase ofinvestments in VCs ofsustainableagrícultural andforestry productionFAST STRATEGIESFASTFinancialFairs (FFFs)• 7 FFFs• Coffee, Cacao, Timber,tropical Fruits• 2 FI workshops : coffeeand timber• Training materialsDevelopment offinance industry toincreasesustainablefinancing of SME’sExchange andparticipative building ofknowledge; building ofalliances andstrategic relationsInformationServices onmarkets andImpact (MIIS)Global +RegionalForums ;Seminarsandworkshops• Impactmeasurement tools• virtual financialmarket & Informationon demand/offer•Information onstrategic markets forFI’s (in process)• 1st Global Forum•15 Seminars, workshops,exchange meetingsTemas: strengtheningSMEs & Sustainabemarkets, impactmeasurement


= a company for the assessment of the quality ofthe organizational performance of a business inthe agricultural and forestry sector.This serves for access to :‣ Financing‣ Business Capacity Development‣ Commercialization18


SCOPE: Scoring Organizational Performance• Internal administration:o Management and governanceo Operational organizationo Financial administrationo Financial performanceo Sustainability• Supply management• Markets and client management• Risk Management, reduction• Institutional integration19


Capacity building,accreditationand quality controlEvaluationfund7 7Riskdiversificationunit1IndependentAssessors4Data BaseSCOPEinsightProfileBanksSCOPEevaluation36Buyers2Evaluationreport5Qualification> 3.0SupplyersQualification < 3.0Producers Organization(agriculture, dairy, aquaculture, forestry)Access to Capacity Building Servicesand business developmentInsuranceagencies7Sector InvolvementprocessAccess to inputs, markets and financial services


A joint strategyTAA & FAST & SCOPEPeru & Bolivia


TAA FAST joint strategyPreparation companies / communitiesBusiness performance assessment = SCOPECredit/investment proposals = consultanciesRevision proposals = FASTPreparation Financial Institutions (FAST/TAA)Executive breakfastGuide on financing sustainable forestryWorkshop on Financing Sustainable Forestry


Workshop for FI’s Forest management : conventional, legal, sustainable, Timber: illegal, legal, legalized, certified FSC Certification Social issues; employees / communities Perceived and real risks Market perspectives Capital generation in the value chain Financial needs Cash flows, rate of return Experiences in financing forestry Institutions supporting the sustainable forestry sector


TAA FAST joint strategyPreparation companies Business performance assessment = SCOPE Credit/investment proposals = consultanciesRevision proposals = FASTPreparation Financial Institutions (FAST/TAA)Executive breakfastGuide on financing sustainable forestryWorkshop on Financing Sustainable ForestrySpecific instruments, financial products, alternatives for guaranteesMatchmaking FAST Forestry Financial Fair


FAST Finance Forestry Fair Companies / community enterprises:selected, prepared, documented Previous Matchmaking: blind profiles shown to FI’s Bilateral meetings – speed dating; 45 minutes Instant evaluation A series of prepared potential clients in 2 days Cooperation amongst various FIs


2011 and 2012PERU – May 2011 25 meetings: 7 forest companies x 6 FI’s Total requested : USD 22,3 million ($ 50.000 - $13,123,987) Results: 3 loans 2 FIs interested to invest in forest sectorBolivia – June 2012 36 meetings: 8 companies (forest + industry) x 5 FI’s Including community companies Total requested: USD 6,1 million Results: 2 loans, further follow upPeru – September 2012 25 meetings : 8 companies x 5 FI’s Total requested : USD 3.5 million Still in follow up


TAA FAST joint strategyPreparation companies Business performance assessment = SCOPE Credit/investment proposals = consultanciesRevision proposals = FASTPreparation Financial Institutions (FAST/TAA)Executive breakfastGuide on financing sustainable forestryWorkshop on Financing Sustainable ForestrySpecific instruments, financial products, alternatives for guaranteesMatchmaking FAST Forestry Financial Fair FAST Virtual Financial Marketplace Follow up relation building and development companies – FI’sFOLLOW UP Impact monitoring


Lessons learned‣ Building bridges takes time‣ The vicious circle‣ Commitment throughout the Financial Institutions(incidence on global level required)‣ Enabling environment(CB, stopping illegality, guarantees)‣ Lack of good local professionals


2013 Follow up FFFF Bolivia and Peru Transfer methodology to local partners Peru Training / date base consultants Training / CB companies Capacity Building Financial Institutions Preparation business cases NTFPs, Environmental services (VCS; Gold Standard) Virtual market place, virtual financial fair FFFF 2014 Peru


Para mais informação:Noemi Pereznoemi.perez@fastinternational.orgwww.fastinternational.orgPetra Hamersp.hamers@theamazonalternative.orgwww.theamazonalternative.orgSCOPE – Lucas Simonslucas.simons@scopeinsight.comwww.scopeinsight.com

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