 Thank you very much and welcome dear friends and colleagues. Thank you for joining us today for the Global Landscapes Forum the investment case Welcome back Last year we started a journey that is of fundamental importance That's the journey to close the gap between farming forestry small businesses in the world's landscapes with investment capital at scale and to me this closing this gap and It's an obvious opportunity for the sustainable future that we owe our children and future generations So here in the finance capital of the world. We should really feel that pressure So again, you are most welcome now to set the stage a little bit for today Every day we put a hundred million tons of carbon dioxide into the atmosphere because we burn too much fossil fuel This is a problem. It's a serious one and with Paris behind us We will increasingly and more seriously address it but Climate change is not the only challenge we face Even though we are sometimes led to believe that by the media and others particularly here in the global north and Those other challenges. I'm not talking about Brexit or the refugee crisis the US election or any other housing market bubbles No, I'm talking about the well-being of everyone the future We want a future that is prosperous healthy fair green hopeful and to quote James Cameron from last year's forum full of love Love reason and good powers Of course, one of the obstacles to create that world is that we address one problem at a time Sometimes assuming that central decisions and regulations will be the main driver of change But change happens locally changes are different and diverse changes holistic and above all change should be based on opportunity not on avoiding problems So let's think about Opportunities, let's talk about opportunities Every day also photosynthesis in the world's landscape binds 1,500 million tons of carbon dioxide We hear a lot about the problem with a hundred million but Preciously little about the opportunities of the 1,500 million. Why do I say that? because this is the starting point of All those value chains that our future depends on and talking about sustainable value chains for food feed fiber fuels medicine new bioeconomy products and for services indirect services Like water hydroenergy health local climate regulation air quality recreation even peace of mind So much of our future livelihoods depend on these value chains that start in landscapes Depends on making them sustainable equitable sufficient understood and appreciated and profitable So not only do landscapes provide us with our biggest chance to fix climate change They also provide the bulk of opportunities for sustainable development This is the investment case That's why we're here. So I'd like to give you a few an ABC of the meeting as I see it We need to be ambitious. We need to give opportunities to billions of people. That's an ambition We need to invest trillions not billions. That's the ambition level We need to improve the conditions for small landscape businesses everywhere We need to include all products all value chains and all markets. We need to think big That's the ambition to me And we need to be brave we need courage to go outside our comfort zones Some feel comfortable that public grant funding Will provide the solutions that we define centrally Others are comfortable with the the neoclassic Capitalism where values are expressed in monetary terms even the ecosystem once And for others they feel comfortable in ideal logical discourses that may block solutions out of principle We need to move out of those comfort zones And that's the philosophy of the global landscapes forum to bridge academic disciplines Expert communities and economic sectors and create a forum where everybody talks to everybody and cross the traditional boundaries and innovate and see I think is as Important clarity. We need to keep it simple Everyone needs to understand and agree on where we're going Not just of us those of us in this room and as an example. How do we measure progress? Beyond capital returns. It's a lot of discussions about that But how can we express that in a clear and simple way? Well, we can't really do that with hundreds of politically inspired indicators. We've seen those We might be able to do it if we agree on a small set of value propositions We need to figure out which those are And in doing that we need to embrace complexity But without making it complicated Think about that. We need to embrace complexity without making it complicated That's the key for keeping it simple and be clear so Just a round off I would like to thank the Royal Society for hosting us all of the partners that have invested in today's forum and All of you for coming today and making this journey successful Again most welcome. So let's get on with it. Thank you Thank You Julia and thank you Peter for that inspiring introduction It's a real honor for me to be in this role Moderating this opening plenary session. I think my main qualification could be that I'm not encumbered by a really deep understanding of finance That might get in my way of the questions I ask I Just like to say a few comments building upon Peter's very eloquent opening remarks I think this next concept of biological carbon is huge if you think back on the history of human civilization And what happened when civilizations Started developing technology that required energy and started running out of fuel with the Oakland's of of Great Britain For example depleted forcing people to turn to coal Eventually forcing people to turn to petroleum and other forms of fossil fuel, but that's still biological carbon carbon It's just dead. It's the ultimate carbon capture and sequestration system if you would 70 million years old at least and That's today become our problem But there's a huge compelling case to be made as Peter already flagged that it's living biological carbon that'll help us get out of this mess The IPCC fifth assessment that came out in 2014 if you look at working group three The estimate for mitigation is that up to 60% of our climate change mitigation by 2030 will be from land use in other words biological carbon a little fraction of that downward-pointing arrow that that Peter showed if we look at what's already accomplished, it's Biological carbon that's right up in front the decline of deforestation in the Brazilian Amazon more than four billion Gigatons four gigatons of co2 emissions reductions avoided And what's particularly real and that that's not even talking about The soil carbon that is biological carbon a lot of the functions of biological carbon as it's manifested in our crops in our ecosystems that are not for us and That gets us I think to our agenda today How do we go from that potential to reality? How do we? Multiply what's gone on in the Amazon something we never would have imagined even even 15 years ago To make it replicable to make it go to scale The basic premise of this workshop is that by adding to a focus on farm level performance By adding to a focus on what goes on inside the forest concessions and all of the other more project level Approaches that we have that we're used to and comfortable with If we frame that within landscapes, we can take this to scale and If those landscapes boundaries correspond with political geographies with states and provinces and counties and districts The chances of embedding it in public policy grow much bigger and Those are some of the the themes that will come up today in this first opening plenary I'm going to make very quick introductions because you all have access to everyone's bio online We have a great panel today so much challenge in terms of gender balance but Andrea speaks with great authority, and I think she'll carry her own and She is in fact our opening speaker Andrea Ledward is the UK board member for the the Green Climate Fund and Head of the climate change and environment Program of different and I and as she's coming up I'll just say very quickly every speaker will have us up to about five minutes for comments Quick round of follow-on questions, and then we'll open it up to the floor Thank you for the invitation to come. I was asked to start with a personal story My job was to work with women to understand their use of forest resources To help with the demarcation of a new National Park So I spent many many months working with women working with families trying to understand Which of the nuts which of the animals which of the kind of vegetation? They needed access to and why and the commercial benefits as well as the kind of the social and cultural benefits and it was It left an enormous impression on me And it's very interesting to think about the last 20 years Which have been very much a move from that kind of that micro and that very detailed analysis and anthropologist up to today where As you said I sit on the Green Climate Fund board and represent the UK as well as overseeing the UK's Climate finance, which over the next five years will be nearly six billion pounds And as part of that both the GCF and the UK government have got a very clear focus on maximizing private sector Leverage and thinking very closely about how we work with the private sector and how we work with a range of other institutions internationally, so I'm just going to reflect a little bit on Some of the priorities from a kind of UK government perspective and the GCF and then I'm happy to take probably more questions on the GCF Then differs perspective and further on So essentially the new climate economy and the Paris NDCs last year told us that Taking action on land is really essential So this forum is really a great opportunity to kind of bring together all our different strengths and think about Some of the challenges and really ramping up investment in sustainable land use and thinking about optimizing the benefits And it's also very timely because we know that a lot of those nationally determined contributions that were put on the tail at the Back end of last year are a variable quality. And so the really key challenge now is turning those those proposals and those propositions into Projects into pipelines and into something that can be invested in and also credible plans that can be embedded within a country's economic growth plan We also know that there are significant volumes of private public and domestic violence out there We know that the Economist intelligent unit tells us that an extra two trillion dollars of Finance could be unlocked, but the key really for us at DFID is how do we help the finance flow? How do we ensure it brings all the multiple benefits that we want to realize and really? How do we make our public finance go further and how do we increase the value for money of the public? UK finance in particular So the UK published a new aid strategy at the back end of last year And it focuses strongly on maximizing growth and prosperity on addressing governance global peace and security strengthening resilience and response to crises and then fourthly it focuses on extreme poverty and Leaving no one behind so the land use sector is one of the central priorities of our economic development Work as well as being at the heart of helping communities to manage risks and build resilience for the future so I Was going to talk to there are six key themed really that we saw in this forum That we could speak to as kind of examples I'm just going to pick three of them But the six kind of themes that we saw are coming through today's agenda one on strengthening governance The second on addressing knowledge gaps the third on innovative financing the fourth on maximizing access to global funds fifth on creating investable opportunities and pipelines and the final one on leaving no one behind Are the six kind of themes that? I can go into more detail on but I'm just going to highlight Three to start with so the first one is on the strengthening governance Which we really see at the heart of all our forestry and land use interventions And we work both at the international level and the local level thinking about trade restrictions policy reform tax reform property rights and tenure and Law so the two Programs just to bring to your attention are the forest governance markets and climate program Which I'm sure many of you are familiar with Which is looking at the mapping of customary land to protect the rights of forest dependent communities And then supporting some very detailed stakeholder work An intensive engagement at a community level and the second one is a newer program called legend So land governments for economic development program and that's looking at tenure security particularly for women And supporting then responsible land-based investments The second one really is then about global funds because we firmly believe that we get the maximum value For our investment if we promoting the synergies between our bilateral Century managed programs and our bilateral investments together with the global and thinking about taking them to scale through the global funds So we said we work closely with if had and we work there through an adaptation of a small holder agriculture program But we also have been very involved over the last few years on the design of the Green Climate Fund and I'm sure some of you know the GCF has been mobilized and become effective with ten billion dollars pledged and We have approved a first set of projects worth 168 billion 68 million dollars We'll have another batch of projects through and the board meeting in June And there's an aspiration to approve kind of two and a half billion dollars of projects this year, which is still an aspiration And I think the GCF has enormous potential to really show what's possible to really Work with a different range of organizations to have a whole direct access Side of the business so it's not just business as usual through some of our international partners And to do business in a really truly different way with a private sector facility at the center also a very strong gender policy right from the word go But we need everybody to Kind of engage really at this point and help us through some of the initial contesting problems Which I think are evident with with the GCF at this point and then the final Point just to land on is really this leave no one behind Which is at the really at the heart of the government's strategy going forward and some of you may have seen very prominently in the global goals Within that we believe very strongly about maximizing opportunities for women and the most excluded so there's most dependent on forest products There's most dependent and as indigenous groups and thinking about how we can link them with markets and access off farm opportunities And really thinking through those particular lens So when I run our aid program in Ethiopia for example I would go and visit our safety nets program their productive safety nets program And that's very much targeted at the most excluded the hardest to reach and thinking about how you scale up in times of drought in particular to help the most Hard our hard-hit households and that was a lot through public works and that's a lot through dams through roads through agriculture through farming which is how you build the household and the Community-level resilience with women very much at the heart of that strategy Thank you Next we'll hear from Chris Botsford from ADM Capital who'll give us some Reflections on his very hands-on work with small holders. Good morning Thank you very much C4 and the Royal Society for this forum We've we've been doing a lot of work in in Indonesia So apologies if this is Indonesia centric, but I think a lot of what we've done applies to to other places as well in particular, we've been looking at What has been driving deforestation now many of the the palm oil companies and the forest companies have taken their bite and pretty much remove themselves Primarily because of the efforts of everybody campaigning against them and now it's come down to a lot of the damage being done by small holders and When we look at why they're doing it most of that comes down to poverty and If take the Indonesian context in the palm oil sector alone of the four million small holders Currently engaged in in palm oil about two-thirds of them are heavily indebted and one-third of them will never ever get out of debt It's unsustainable debt. So we've got it. We've got to address Poverty to start unraveling the rest of the problems and when we look at it for example in Indonesia the 74,000 villages 13,000 have no electricity So when we started looking at what we can do to bring capital in to help address this issue We looked at two main themes one was bringing electricity to many of these poorer communities And the second was that what we could do to bring capital to Rehabilitate degraded landers in Indonesia about 20 million hectares of degraded wasted land And yet people still go and deforest So if we can bring capital in that can then give an incentive to focus on the degraded land and then make it clear That no capital will be available for degrading currently good land We think we can get a program going that makes sense in What we see when we looked a bit about the capital structure of investment There's plenty of equity around where there really isn't very much money is in the debt Most of the banks will lend up to five years But if you look at most of the reforestation that goes on if you look at palm oil cocoa The crop doesn't produced for five years So you can't go and make a borrowed money for five years and expect that to be bankable. It isn't So we looked at what can we do to bring 10 12 year money Into small hold of finance into alternative energy in rural areas and we looked where as where as the money So we consulted with our bankers and and came across BNP who said well There's plenty of money in places like Japan. In fact, they have negative interest rates They don't know what to do with their money for 10 years. So they give you less than what you have when you start it So we said well if we can get that and bring it into These rural communities. We're doing a good thing But we need to to combine this institutional wholesale Capital into what a small holder some very hard to define projects that are quite difficult to bank And we looked at it and we said well if you look at say an alternative energy program You've got two components one is the bit where it's being built, which is quite high risk once it is built You have an off-tape Effectively a cash flow stream coming from the state electricity company a cash flow stream is effectively a bond So once we get to that point we can sell it and I can take the money We've released and put it into the next project in the in the case of Small holder land rehabilitation once the land is planted and you see the crops coming up The risk of not having a cash flow stream coming off that lessens every year where you get to a point Even before it begins to to produce Crops where you're pretty certain it's going to and you can get to an offset contract off-take contract and then Securitize that the next thing is quite a lot of these Contracts are quite small. So we need a mechanism that can wrap them up and put them into these wholesale Institutions, what's more is a pension fund in Japan actually only invests in yen Whereas the the people in Indonesia Perhaps would tolerate dollars because most of the commodities that are denominated in dollars or perhaps they want them in Rupia So we need swap contracts and those are institutional contracts So we work with BMP to come up with an idea where we have if you like a warehouse of these kind of these projects once they Well while they're being constructed or they're growing product and then as soon as they get to a point They're bankable we wrap them up and we sell them off into the institutional market with a swap or whatever It takes to bring the institutions in the program We're looking at initially is a billion dollars for Indonesia alone But I think it applies the methodology applies to to elsewhere The other question we've had in doing this is how do you know what's going on in the ground? You know, we've got four million farmers alone in palm oil. How do you know what they're doing with your money? Well, fortunately the answer is in my pocket And that is the new software that's coming online Makes it totally easy to see what is going on and there are various companies trace all geotraceability They now have farmer mapping Software that they can map out even if there's no land title You can do faux land title by very easily mapping around the land you take one farmer the next farmer They will agree where it is then the village head agrees then the boat party the district head agrees then the governor agrees Effectively you've mapped the land and then you make it clear this land is bankable and we will make 10 12 15-year money available But if we're giving you that money, we expect offset trade So we expect people to adhere to certain rules and if you're over here Which is in in virgin forest or forested areas that will never be money available to you So don't even think about going and occupying it because you will remain poor So you've got that and and you've got accountability coming in as well. So thank you very much. Thank you, Chris We're not going to move from a very different perspective one of a Federal government a national government from the office of president Enda ginting is the assistant deputy in the executive office of President jacobi of Indonesia one of the truly mega tropical forest nations and one of the truly Important countries for everything we're talking about in this conference Enda, thank you Good morning. Thank you everyone I'm from indonesia and for those of you who don't know indonesian and you followed it in newspapers. It's synonymous with problems Our our neighbors from Singapore would definitely agree in the recent forest fires Sadly we as government have often at times been part of the problem We've allowed different agencies to have multiple maps on indonesia. Therefore killing some of the local actors in the field We've also allowed people to run around not have land entitlements Now that's that's that's got to change because it doesn't make sense anymore. We're feeling the pressure We're feeling the international community is talking to us and more importantly from what Chris said these app makers young people like myself Who work in the private sector? We're competing with them because they can produce a map of indonesia. We can't So that's the pressure we were having Now Moving forward the white papers mentioned some of the initiatives made by the government a one map policy It's not revolutionary, but if you put it in the context of indonesia, it is amazing Finally, we're getting a map of indonesia that looks like the size of indonesia we also getting Land reformed land entitlements where you've got the president who bypasses the bureaucracy Bypasses the politician goes into the indigenous and tribal groups and say this is your land Because all this time we've decided to draw a map around your area and said that's land estate Forest estate when there's a shopping center right in the middle of it But all that only indicates we're doing a lot But there's a lot more hurdles in front of us the ones that we've did in the past and the ones that just naturally There because it's indonesia The white paper did mention a lot of the challenges specific challenges on getting international long-deaded money to investments such as the palm well in indonesia, but all that sits on the general problems of doing business in indonesia so What are we doing? We're learning from people like Chris We're letting them do what they're doing and People ask me why you're not taking the lead Because there's a trauma and when people in private sectors people with money come in talk and think about the Idea of to working with government. There's a little bit of trauma and how much is how much government? It's too much government. So we're learning as we're going through every stage Are we making a framework conceptual framework league legal issues? Well for now. No, we're looking for transactions We're looking for transactions ready to be made to be tied because there's money there and there's people here and they're needed And with that we hope to progress with every transaction because this is new for Indonesia to actors They don't know what how to do it and we hope That with every new transaction there's a learning process and that's when we determine when government comes in as a policy Nationwide policy or some little minor tweaks here and there Because essentially we want to be the enablers We don't want to be the group of people who stops and restrains the local actors and any Good intentions But we're also learning and that's why we're here. Thank you Thank You end up you were very very quick Our next speaker is here from Malawi as we did Jerry is the head of The total landcare organization He'll speak from the perspective of a non-profit Organization that is making that connection between the the finance community and small holders on the ground at a large scale Thanks, Dan. Good morning Yeah, I am from Malawi from southern Africa. I just wanted to Maybe in a way to assure you that The constituency that I represent this is a small holder Production sector. There's a lot of potential there in terms of investments as you all know that It's the small holder community that is feeding itself in the first place But it's the same small holder community that is feeding the whole nation to the global the global world. So I Think there's an opportunity in this meeting that we can look more into how best we can Invest in a small holder production. I'm talking about our group based as well as natural resource based products These are the people that are very efficient in terms of in terms of producing those things however over the last 50 years or plus Both governments and donors Have made huge investments in free handouts and Subsidies that have had Very low, you know as you know impacts very low returns and we hear about This fatigue donor fatigue, but I think that is a safe inflicted because we have invested in the things that are really not Moving us towards, you know a sustainable development Our experience really indeed as I as I've alluded to show that we have huge potential to invest in small holder production We have worked on some models Primarily we are talking about what is important is to provide access to information good training for these people We need to promote green technologies We need to provide access to to finance But also we need to provide access to markets Because those two move together if you want to invest just to provide your money in terms of providing loans to farmers But it's not much by access to markets then things may not work So it's very important that we will match up access to finance and then link a small holder to to markets We are working on a model like that. So we we provide the technologies to farmers At the same time we help them to access finance as well as market currently. We are working with We in the last year we've done a pilot with opportunity bank But we had to use our own revolving fund to provide a guarantee and then we targeted very few very few numbers of farmers 2000 But the pilot was so successful that the US ID was interested and they are providing a Guarantee of seven million. So we are moving from 2000 to about 13,000 farmers and also More banks are also interested to participate in the in the program. So this this is working and the last year The recovery was over 98 percent Despite the fact that these farmers had to pay about 40 percent interest We were still interested to do the the to access the Agri finance so this this is working Just to emphasize the importance of markets we had the program arts outside the long way where we did a very good Program in terms of introducing low-cost irrigation systems And these farmers moved from producing 20 drum heads in a season to 3,000 one farmer And so when we took visitors there to say we want to show you a success story One of the visitors asked the farmer how do you look at this new technology and the farmer said this technology is very bad And we got so embalased said oh wait wait a minute It's very bad. Why because I used to produce 20 drum head I could take 10 on my pushback sell to the nearby market and eat the rest or share with my neighbors now I'm stuck with 3,000 drum heads. What do I do with this? So we we said we said yeah, I think the farmer has a point We need to address the market face before we start talking about production And if he as if that was not enough After three months these farmers now started making money, but they were not paying back the loans Okay, so we said okay. What is the problem? Let's invite both husband and wife to the meeting and Then we introduced the topic. We said you see you are not paying. This is that we have won a Two months left and we are going to get the pump or the equipment from you because that was used as a Corattro and the women stood up said no this this is this is not true Our husband have been telling us that he they have paid off. We said no is 50 percent And the women said no no no this is unacceptable because These husbands have been cheating us and they were saying that right in front of the husband And the husband were just looking down to say oh wait a minute. What is happening? So we we have also realized in our program that is very important to deal with women as well as to deal with the youth I think the women are very powerful when I was in a meeting with the UN women in Malawi Emphasize the point she disagreed with me says we do you are cheating the women are marginalized. I said no I'm a married person. I know how powerful women she that my wife would not talk in the public But when we are at home, she's in control So so let's let's really think about women as we are talking about investing In in forest products as well as investing in agro based enterprises. Thank you very much. Thanks Our final comment will become from Chris Knowles. He's head of of climate change and environment division of the European Investment Bank Chris So good morning everybody. Somebody has to have a slide and apologizes me. I normally try to avoid it I Wanted this morning to to give you a little bit of a flavor of what EIB is a kind of proxy for the wider international community Is trying to do to make these connections between farms and funds and forests You need to keep in mind that we are first and foremost a pretty boring risk-averse senior lender most of the time But we do have a strong and a growing commitment to increase our impact on climate mitigation and on the The nexus of natural resources natural capital and we do this through a volume target 25% of everything we do which Corresponds to about 20 billion euros a year for climate at the moment We do this through carbon financing shadow pricing of carbon We have some class leading environmental and social standards. We support the new technologies Which are going to help some of this happen including the mobile technologies We carbon footprint our portfolio We provide a lot of leadership in the green bond market and we do all of this basically because this is the direction of travel of international policy And of the EU but frankly as a long-term financier. We'd be irresponsible not to do so It's also important to underline Our commitment to crowding in the private sector because again the numbers are big the public sector has not got the resources To deal with this so we do have to work strongly to bring them with us a Weird about risk. I think the energy Community the energy investment community is increasingly used to the idea of carbon stranding risk You've only got to look at 75% of the American coal industry being in chapter 11 You've only got to look at the fact that last year renewable energy investment was now bigger than Capex in in the oil and gas industries, but I think if we do not stop the degradation of natural resources Quite soon then the agricultural investment community is also going to have to get used to ecological Stranding risk and that of course is far more than just an investment issue if you we're not talking livelihoods We're not talking food security if we talk food as we learned from Marie Antoinette. We're talking revolutions If we talk livelihoods, we're talking about mass migration. That's something that in Europe. We're very sensitive to these days So the evidence is that I think the investors and financiers are beginning to see that Sustainable financial returns do depend upon sustainable social and environmental practice But all of this requires Integration it requires joined up thinking and we're less good at that to be frank and The decisions of that community on a voluntary basis will eventually reflect that awareness But of course it will all happen a lot faster if regulation drives it I think the disclosure of stranding risk should actually be mandatory If we want to start quickly properly pricing for those risks as investors But even the largest of investors today do not really have that ability and so we need Entities to coordinate all of this to bring it together to aggregate it as as Chris was saying and To create vehicles to deploy capital so that the big investors can get it down to the projects in Malawi The good news I think is that the capital is available Landscapes or landscape forestry is dramatically under allocated. You see this on on the on the on the graph of our activity there The little red circle is what's happening with us in the forestry space. You can't even see it on the graph It's 200 million a year for us out of 20 billion The climate bonds initiative has noted that forestry bond issuance is only 2 billion out of a total universe of 600 billion So way to go lots of headroom, but we've got to create the means of Pulling it through So over time we have grown our toolkit for the natural capital space We've done so in particular using funds and other SPVs and these range from mainstream private equity Timbaland vehicles Or be it always with a very strong commitment to sustainable practice Good example of that is the Dassos Timbaland vehicle to more visionary commercially structured But still peripassu vehicles representatives of some of those people are in the room today Often seeded by philanthropic investors and on onwards to private public blended vehicles For example the LDN fund which will be talked about later on today with the green for growth you'll be all lifting is in the audience and Also then to plays around these vehicles which Designed to get to the fixed-income market, and that's the holy grail in the investment world That's where the 90 trillion of that of capital lies And that's the one we have to crack for this space if we're going to the scale up So I'm going to quickly talk about two of these vehicles if time left me I can take a couple of the minutes that were kindly left by earlier speakers This is a platform which is all about conservation and environmental protection through innovative financial products and sustainable agricultural commodity production very strong emphasis on community development, and I think you know They would totally agree with what's videre was saying about engaging with all parts of the community Very strong commitment to the socio-economic development of that community again if you don't bring them with you then especially as international investors your your toast The Tampa part of National Park is in the Peruvian Amazon Basin Around the rather aptly named town of Maldonado And that's five hundred and seventy thousand hectares of absolutely pristine tropical forest globally important biodiversity hotspot, but two thousand hectares a year that forest is going for all the Reason that we know about and have been studied Together with a local NGO at there They've got a 20-year concession from the government to implement a conservation plan for that forest They're going to plant 4,000 hectares of certified high-quality cocoa They're going to put into place all of the marketing infrastructure and the infrastructure to get that cocoa out in a good condition And they're going to avoid half a million tons of co2 and they're going to create alternate livelihoods for 10,000 people Proposal of those livelihoods. This is an area which is suffering terribly from illegal gold mining These are miners small-scale miners who use mercury to refine What they're panning And in doing that very carelessly They are contaminating water soil and fishers in the in the madrid adios river And they're releasing volumes annually of mercury which compare to what happened in minimata in japan and this has now reached truly crisis proportions 40 percent of the population is now affected and the government has declared a state of emergency This gentleman I had the pleasure of meeting on a visit there It was very moving listening to him explain The changes to his way of life pretty much all of them positive and all of them sustainable And there are other schemes like this going ahead The second example and then I am done really done In ecuador eco enterprise fund This is basically a growth SME growth equity fund mezzanine finance And these these SMEs have been chosen for their very strict commitment to ESG standards and their strong emphasis on all the things that I was talking about previously Runa is again in the ecuadorian rainforest servicing the kichwa community and indigenous peoples Who've got a taste for something called the gaiusa leaf. It's a tea. It's a mild stimulant And this little SME has got a small processing factory, but it's built up a full agricultural extension service It works with the people in the forest taking a leaf, which is natural from the forest Processing it packaging it sending it out to to hip young people in london and new york who are looking for kava and free stimulants They also have a thing called terra fertile, which is the other end of the country Altiplano It's in the area which had the cut flower industry and the cut flower industry very often comes with horrible practices In terms of water usage and in terms of chemicals And they have provided an alternative to the people in that industry small-scale growers of fruit locally indigenous fruit they drive this fruit they Export it again to the international community. They are supporting 3000 small holders in that area Most of them women and the impact on these communities through women is is absolutely you have to see it to believe it Ecoenterprise is a story of women as the firm is also owned and managed by women. Thank you. My apologies for overrunning Thank you chris The organizers have generously given us another 10 minutes to our session. So we haven't told 1010 The first step is going to be some really quick questions With maximum 60 second responses just to make sure you all have some time to get your questions out as well And suede, I want to start with you you You and your organization are so inspiring the way you are basically creating those enabling conditions for small holders to tap into to To finance But also recognizing that it's women running the show, which I have found repeatedly is the case But could you talk a little bit about? Your challenges in keeping an innovation organization, which is a a nonprofit organization going in this crucial intermediate space Okay, thanks Then as I mentioned that I mean as an organization we work with Our main Constituent is the small holder community, but at the same time we work with other partners. We work with Investors we we work with government So we are really in the middle there trying to to coordinate all that one One challenge we face of course is the What I already mentioned is access to markets Out there on the market. They are unscrupulous business people who are not really offering good prices They are not transparent to these people And makes our work very difficult. That's why Even sometimes farmers demand that why don't you also provide this service to us? Because they trust us so they have trust in us, but they don't have trust in some of the buyers Uh, the other problem is the the product steps are the commodities that we try to Identify and and define sometimes it's not done in a more participatory way And the communities are not having a stake there to really Understand that some of those products Are in a meeting. There are multiple needs. It's another challenge we face Lack of finance, which I already mentioned is a big thing. I mean we use as you know most of you that in the past Governments used to provide credit to to but those things collapsed many years ago and this this space has not been filled quickly by the investors because they are There's mention of risk high risk and all that Uh, but I think there are many creative ways of minimizing risk. One of them of course is uh Access to insurance I think there are many insurance companies that are interested but no one is going to them We had the meeting in Switzerland with Swiss Lee. They are very keen to do uh to provide Insurance to minimize some of uh some of the risk, but also more important is the issue of trust itself Um, I think for us over the years we have created that trust That's why farmers want us to provide credit. They want us to be to buy things from them They want us to provide to provide uh inputs because when they go to the market To buy inputs the fund is they are getting the wrong product there So the trust is very important between the investor on one hand As boots on the ground that we are you know, uh providing the link with between small holders and the other service provider That trust is very critical. I think we have really to work around that how to bring that trust Because I can tell you most of us feel we don't trust these people But in the majority of cases they are the ones that really don't trust us So we need to work at that. We have some homework to do on that. Thank you very much I can add a touch on the trust issue that uh for the small holders independent small holders in Indonesia They had a terrible issue there that the seeds they were planting were counterfeit Well, you don't find out for four years and that's that's contributed a lot to the poverty And that's about one third of independent smallers planting uh palm um Trees that are actually uh Substandard and yield perhaps one quarter of what they should have done if they put the right seed in It's a big issue Next I want to turn to enda and enda is very interesting Some of the things you're saying about how much government is too much government You seem to have some really strong ideas on what a good partnership Looks like what is your message to the finance community in terms of what you need in your job To make investment deals work work for indonesia Thank you. I think For us for governments, especially government of indonesia, it's challenging to define how to work with the private sector the financing But I guess There's no way there's no other way around it except to be upfront honest and about What it is it requires to get some of these business processes in place And the government's still learning how to do that and we're tailing on the existing initiatives So it's just from the adm capital And we're also learning when we can come in when we can't because what we often find is Actors and non not the good ones are happy to reclassify some of their transactions and say this would fit into that criteria Because there's no proper base for a government to sit and say well That doesn't make sense. This that makes sense because absence of that data is just crazy but I guess for um Investors out there I'd Just spend time in in getting to know how to get how to get the business process how to get Transactions running and how to understand how things get runs in indonesia because We talk about some small shareholders and we don't even know who they are And you had we have chris to come in to different parts of indonesia We've never been moving to and actually meet the people and talk to them And they're the one who brings in the information to wealth to us and we say we make a judgment How how can we make this possible? And um, we originally found 200 000 hectares cut down Take away the ones that land that don't have certificate that are not legally acknowledged 150 000 hectares take out the ones that are not involved in existing palm well off takers 120 000 And then take out the ones that we can actually identify then we're left with 75 000 and then there's a lot of that screening And that's a lot of work for us, but that indicates it's it's it's a market that's not saturated It's it's a lot of pre-work needs to be done Thank you Andrea you Gave us already some of the highlights of where the green climate fund is I wonder if you could You know, it's amazing to me just how high the expectations are and uh What are the appropriate expectations? What is the gcf going to look like if it's hits its full potential five years from now? So I think it's important to remember that the gcf is not the answer to the hundred billion Which I think some people make the mistake of equating the hundred billion with the green climate fund The gcf is never going to be mobilizing a hundred million A hundred billion dollars. Sorry is a single institution. The gcf will be one part of the international architecture So the critical thing really is understanding What the specific and the unique role of the gcf is alongside The rest of the multinational development banks alongside the private sector alongside The global environment facility alongside the climate investment funds and alongside a lot of bilateral Activity and I think it's understanding where the particular niche is it clearly has a mandate around paradigm shifting and mobilizing financing at scale Which many others have not been able to do to date And it also has a very explicit mandate around The private sector facility and getting private sector financing to flow and in particular there's a kind of almost proof of concept around private sector financing and adaptation I think where again the gcf is different because it's got a 50 50 adaptation mitigation aspiration And I think we we saw in the figures that came through pre-paras that The adaptation financing was only about 16 percent of the overall climate finance flow So to go to from 16 percent of climate finance up to 50 percent is a very big paradigm shift actually to show What's possible and to show that finance can flow It also has a very different mandate around direct access and around country ownership So again, I think in five years time if you were judging success It would be about the the gcf having kind of built national capability that looks and feels different So you have national designated authorities that are having Ownership of very strongly embedded country plans that are able to access funds directly And if you see the example of funer were in rwanda or you see the example of the ministry of finance in ethiopia to Leading kind of national organizations that are both accredited to the gcf I think we would hope that there would be other examples that there wouldn't be just a kind of a very small handful That there will be others that are showing what's possible in terms of accessing those funds and then owning these kind of national plans So I think there's something definitely about the national capability about the private finance flowing Around the gcf within the architecture and kind of finding a more stable footing particularly understanding where it's subsidizing and where it's kind of point of Investment should be and one on what terms the gcf should be investing We just still think we have to work that through and there'll be some teething problems as we kind of work out What the right level of risk appetite is for the gcf in particular, which is really at the none of the problem For many which is so we're not oversubsidizing the private sector in particular But we're kind of unlocking finance at scale and that's very difficult to do In the absence of a lot of projects on the table and we have a very That we don't have a strong pipeline at the moment So we need others to kind of have confidence that the gcf can mobilize at scale and bring forward kind of quality programming Thank you Chris knows what would it take to get that miserly miserly little one billion a year up to 20 It's worse 200 million a year It was one billion for the last five years I think it's an evolutionary thing, you know, we have We have been busy in the space for well over a decade now And we've seen good growth on the energy efficiency and the renewable energy side And an interesting models are beginning to flow through in that space now, but the natural resource space isn't there yet And I think it's partially there was A slower awareness amongst the wider community I know the specialists have all been very conscious of this for many years But maybe their message wasn't percolating out as much as widely as it ought to I think that you know that awareness is now coming but we've then now also got to To to to work to find the models to deploy the capital You know if you take the case of eib myself and my two colleagues sitting over there You've got most of our front office for this space 160 countries we try to be active in you can do the math So we have to do this with partners And we want to do it with partners We believe that working with the private sector is essential for the capital reason I talked about But it's also important because that's how we can get the specialized knowledge the local knowledge the on the ground There's no reason for you know the stall to be done on on on our payroll I think we do much better and we'll scale it up much more quickly with partners But simple answer that we don't yet we haven't yet found enough of these partners and enough of these models You saw a list of some of the people we are working with for that list You know we've looked at another 15 or 20, which we didn't succeed in working with But I hope that if we're sitting down here in another two or three years time We'll have a much longer list I need you I need you But that's that's basically it we need we need partners We need models for the aggregation for the risk sharing for the structure for the for the boot work on the ground And finally Chris Botsford Could you just carry out a little bit for us what that scenario looks like with the mapping? I mean with coming to formal Recognition perhaps within the constitutional court decision on customary lands, but also independent smallholders What are the next steps for that? How does that go to scale in Indonesia? Well as Anderson and touch John the There are a lot of different maps in Indonesia and the Ministry of Mines has one the Ministry of Forests have one and And each per party has one and the villagers have one and it a lot of a lot of overlaps need to be settled So you need from the top down, which is where we need the government to come in and help And then you need the bottom up at the village level What goes on in for example Calamantan is that every Migrant is entitled to two and a half hectares and when it goes wrong in one village They move to the next village and get another two and a half hectares It's not quite so easy, but that's broadly what goes on and even if they're not awarded they just take it So if you can start by getting everybody's two and a half hectares mapped on on a software package that then is totally transparent to everybody And everybody that is buying product is looking at where exactly did this product come from Then we begin to look at well if the surplus product where did that come from and why are you buying it because that's probably Contributing to deforestation and so if you're beginning to get this Faux title it doesn't have to be legal title, but it's actually the commercial enterprises that are forcing that title on people And if it's accepted at a village head level at a both party level and a governor level It's very soon becomes law even if it's not internationally approved as that is land title It is effectively land title because out in Calamantan what else is there So that's what we're trying to do is to get common agreement on what title looks like Great, thank you very much Folks I'm afraid we're out of time and surprise surprise Just to wrap up though and a great conversation I first I want to just give a round of applause to our panelists And to some of the emergent issues here are really the you know I think last year we heard a lot about bankable projects And the scarcity of bankable projects a very interesting sort of counter perspective presented here is What what the the nations where the change is taking place need from the investment community for this to go forward I think the whole idea that the GCF is going to help usher in a new paradigm and a new type of institution In the countries that are participating in in the low carbon land use agenda is huge The critical role for non-governmental actors that are innovation partners and helping in that aggregator function I think is another really big message we had today and throughout all of this It really gets down to building the trust so these relationships can moving can move forward In closing I'd like to refer back to a trip I made a couple weeks ago in the spirit of telling stories To the state of Acre in the far southwestern corner of the Brazilian Amazon Well for the last 18 years Georgie Vianna and then Binho, Governor Binho and now Governor Chiang Vianna Have been building upon the legacy of Chico Mendez a low carbon land use economy And what really struck me with this last visit is how relevant many of the lessons there are to the dialogues here in London Where there's now about 40 million in private investment all from Brazilian investors Attracted by a smaller amount of public investment from ANAC an agency specialized in attracting that investment And these are public private community partnerships if there's not an upside for the low income participants in the adventure It doesn't move forward and that is a commitment of the government which has created the enabling conditions for this to go to scale Across 170,000 square kilometer landscape which is a state We now have an opportunity to import some of that into Mato Grosso the other end of the Amazon But I guess the point I want to leave with is this agenda is moving forward It's moving forward fast. There's innovation. A lot of our challenge is to connect the dots and make sure that this is a multiple dialogue flowing with information and ideas flowing in multiple directions instead of in one direction So thank you again for your patience today. Thank you