Conservation Trust Fund Projects - Update

Posted: March 12, 2020

The two Conservation Trust Funds (CTFs) projects are well on their way. Recently the consulting team from Wolfs Company and Aligning Visions sent a comprehensive survey to just over 100 CTFs – the 50% response rate was exceptional, and has produced a robust body of data that will, along with interviews, inform the 10-Year Review of CTFs. We extend tremendous thanks to the CTFs that took the time to complete the survey and contribute to this process. The updates to the Practice Standards for CTFs are also moving ahead. The CTF Projects Task Force will review a complete draft of the Standards in the second half of March.

Starting in mid-April, the draft will be circulated to the Environmental Funds Working Group (EFWG) for review and comment. Anyone who wants to participate in the review process is encouraged to join the EFWG.

We plan to launch the updated Practice Standards and the 10-Year Review at the CFA’s Pavilion at the World Conservation Congress in June.

Global Environment Facility Approves USD 15m for the Food Securities Fund

From Clarmondial:

GEF Council approves support to the Food Securities Fund

Published: Monday, January 13th, 2020

The Food Securities Fund was one of the three Non-Grant Instruments (NGI) approved by the Global Environment Facility (GEF) Council in December 2019. The global emerging markets fund, which starts with a focus on Sub Saharan Africa, was deemed to be well-aligned with GEF focal areas, including on land degradation, biodiversity, and climate change mitigation.

In recognition of this, the GEF Council approved a commitment of USD 15 million to the Fund, with Conservation International acting as its agency. This funding will be unlocked by commitments from an anchor investor, which Clarmondial will announce in the coming weeks.

Clarmondial has designed the Food Securities Fund to create significant and measurable impact through its innovative value chain finance approach. Its targets include:

• positively impact the lives of farmers – and especially smallholder farmers and women;

• support local SMEs to grow the number of employees and training, notably for women and youth;

• contribute to the restoration of agricultural land;

• help to implement sustainable agricultural practices; and

• mitigate greenhouse gas emissions.

Gustavo Fonseca, Director of Programs at the Global Environment Facility, said: “The Global Environment Facility is pleased to support this innovative blended finance strategy that demonstrates the opportunity to mobilize private sector capital at scale for urgent environmental issues.”

Agustin Silvani, Senior Vice President of Conservation Finance at Conservation International, said that “Conservation International takes an active role in supporting new investment vehicles that can contribute meaningfully to environmental objectives. We look forward to supporting Clarmondial on the implementation of the Food Securities Fund.”

Fred Werneck, co-founder of Clarmondial, said that “The Global Environment Facility and Conservation International will provide critical support to the Food Securities Fund. Their commitment highlights the social and environmental credentials of the Fund”.

* This announcement does not constitute an offer or solicitation to any person in any jurisdiction to purchase or sell any shares. No information in this announcement should be construed as providing financial, investment, tax or other professional advice.

View the full announcement on Clarmondial’s website.

Upcoming Meeting of EF Working Group

Our next meeting will take place December 16th at 12:30pm EST. Please RSVP on the working group page and add this to your Google Calendar. We look forward to speaking with you soon.

Not a member of the Working Group? Visit the EFWG page to join.

What We're Reading: Investing in Impact on the Ground - eco.business Fund Impact Report 2018

From eco. Business Fund:

“Read the eco.business Fund’s first Impact Report, “Investing in Impact on the Ground.” It provides an in-depth look into the progress the eco.business Fund has made since inception and presents the fund’s approach to making a real difference for people and the planet. In this report you will learn more about what impact the eco.business Fund creates: how the fund promotes change in financial institutions’ practices; how it supports its end borrowers in integrating sustainable practices into their production processes, and how the fund facilitates an enabling environment for a greener economy.

Read the full Impact Report.”

Call for Proposals: Conservation Trust Fund 10-Year Review & Update of CTF Practice Standards

The Conservation Finance Alliance (CFA) is seeking a consulting team for two linked projects to advance the understanding and effectiveness of Conservation Trust Funds (CTFs): A 10-Year Review of Conservation Trust Funds and an Expansion to the Practice Standards for Conservation Trust Funds. The 10-Year Review will provide all actors with an improved understanding of the scope, effectiveness and impact of CTFs around the world. The Practice Standards project will provide existing and new CTFs with additional evidence-based norms to guide their operations and update the existing Practice Standards. By organizing these two projects under one combined consultancy supported by a CFA Task Force, we will achieve greater efficiency and shared benefits.

Please download the Call for Proposals here. The deadline for submissions is July 24th, 2019.

Please share this Call for Proposals widely with your networks.

Update of Environmental Funds Toolkit

The new Environmental Funds Toolkit is now online. Over the past few months the CFA has been working to update the Environmental Funds Toolkit and it is currently available on the CFA website. The updated site now allows us to upload new documents to share among Environmental Funds (also called Conservation Trust Funds).  We are currently looking for examples of Fundraising Strategies, Business Plans, and Investment Strategies that include ESG investing as well as recent examples of various establishment and organizational documents.  Please visit the site and upload relevant documents so that we can add them to the Toolkit. If you have any questions regarding the EFTK please contact the secretariat.

Photo: Alex Mustard

Conservation International Establishes Ecuador Azul Endowment Fund to Strengthen Ecuador’s Marine Protected Areas

Story from Conservation International

​Arlington, Va. (March 29, 2019) – Conservation International today announced the Ecuador Azul fund, a $6 million endowment fund supporting the conservation, management, and long-term sustainability of Ecuador's marine protected areas (MPAs).

Ecuador Azul will initially fund five MPAs spanning nearly 200,000 hectares (494,211 acres) of diverse marine, coastal, and estuarine ecosystems that comprise Ecuador's Marine and Coastal Protected Areas Network. The five MPAS include: Galera-San Francisco Marine Reserve, Pacoche Marine Coastal Wildlife Refuge, Machalilla National Park, Puntilla Santa Elena Marine Coastal Fauna Production Reserve, and Manglares El Morro Wildlife Refuge. These areas contain a range of biodiversity, from the world's largest cluster of manta rays to one of the most extensive mangrove areas along the Pacific coast. 

For further details on the Ecuador Azul Fund please see the full story on the Conservation International Website.

Photo credit: The Coral Reef Image Bank / The Ocean Agency

Recap from CBD COP 14 - "Finance as the Foundation for the post-2020 New Global Deal for Biodiversity"

Finance leaders gathered in November in Egypt to debate the past, present and future of financing conservation during a parallel event of the High Level Segment of the CBD COP 14. The event brought together a diverse range of leaders who are forging a new path for a post-2020 framework for biodiversity conservation – dubbed ‘the New Deal for Nature’. Read the full story from BIOFIN here.

Santa Cruz de la Sierra receives specialists from more than 25 countries for event on Conservation Finance

From October 29 to November 1, RedLAC - the Environmental Funds Network of Latin America and the Caribbean - held its 20th Annual Assembly, for the second time in Bolivia. This year's event, had two hosts: The Foundation for the Development of the National System of Protected Areas (FUNDESNAP) and the Foundation for the Conservation of the Chiquitano Forest (FCBC).

RedLAC is a knowledge and cooperation platform that currently brings together 22 Funds from 18 countries in the region. Its Assemblies are characterized by bringing together not only the members, but also international cooperation agencies (Development Bank of Latin America-CAF, Fonds Francais pour l'Environnement Mondial-FFEM, the Danish-DANIDA cooperation), the main international NGOs (including WWF, WCS and Conservation Finance Alliance-CFA) and conservation and finance experts. By bringing these participants together, the RedLAC Assemblies have become the most important forum on conservation finance issues in the region.

This year's Assembly focused on issues related to CREATIVITY AND INNOVATION FOR CONSERVATION AND SUSTAINABLE DEVELOPMENT, as a key issue, but also presented solutions and challenges that affect all types of ecosystems and the financial needs for conservation and conservation. sustainable development.

For the first time, the Assembly was held in Bolivia. The organization of the event wanted to use this opportunity to highlight the environmental importance of INNOVATION and CREATIVITY and talk about the threats that affect them.

In addition to FUNDESNAP and FCBC, which were co-hosts, other Bolivian organizations participated in both the agenda and participants of the event, including Agrotec, the National Service of Protected Areas (SERNAP) and the NGO Fundación Simón I. Patiño.

USAID provides USD 37.5m guarantee to Food Securities Fund

Clarmondial is pleased to confirm that the United States Agency for International Development (USAID), through the Bureau for Food Security (BFS) and the Development Credit Authority (DCA), will support the Food Securities Fund with a USD 37.5 million credit guarantee. The agreement covers a portfolio of up to USD 150 million.

After extensive due diligence, USAID approved significant support to the implementation of the Food Securities Fund. In addition to its investment objectives and strategy, the Fund was selected based on its alignment with USAID’s impact priorities, in particular on sustainable agriculture and food security in Feed the Future countries. USAID and Clarmondial are planning an invitation-only signing ceremony with key partners in Washington DC this November.

The Food Securities Fund combines an innovative investment strategy with a standard and liquid fixed-income fund structure in Luxembourg to deliver change at scale. The Fund addresses the gap in season-long loans for agriculture production in emerging markets, thereby contributing to the UN Sustainable Development Goals – notably SDGs 1, 2, 8, 12, 13 and 15 – by promoting climate smart agriculture and responsible, deforestation-free supply chains.

The fund offers investors access to growth markets. The use of blended finance significantly reduces risk, while partnerships with leading international companies grant access to an extensive pipeline at low transaction costs.

The Food Securities Fund is supported by the blended finance platform Convergence (announcement available here). It has also received support from Climate-KIC, as well as from leading companies in the agricultural sector.