ForestFinance Group– Building Forests Scaling up private investments – opportunities and challenges Forests for Future Generations Berlin, 12 June Shaping the future tree by tree

2 The ForestFinance Group – Who we are Pioneer in the afforestation of tropical mixed forests and agro-forestry projects as a direct investment Over 17 years of experience Operations in Panama, Colombia, Peru, Vietnam (approx. 16,000 hectares of managed area) More than 12,000 customers and investors Over € 56 mio. investment volume 114 employees, further 514 employed by our forestry service providers

3 Our business principle – Giving forests a value WoodStockInvest ForestSavingsPlan TreeSavingsPlan CocoaInvest GreenAcacia Pure Forest I (Fund) Investment Retail Market Carbon trade PDD Development Forest Carbon Projects Carbon Consulting Financial assessments Customized climate and forest investment projects Development

4 Our locations – Projects by ForestFinance Acacia Nurseries and Reforestation, Colombia DeveloPPP and Acacia Plantation in Ba Che, Vietnam Project “Wilde Buche”, Germany Cocoa plantation Peru Reforestation and cocoa, Panama

5 Case studies – GreenAcacia, Vietnam Capacity Building - develoPPP Embedded Training-of-Trainer (ToT) project: Knowhow transfer (according to FSC standard) Nationwide rollout planned Supported by BMZ and Sequa Existing acacia monocultures are converted to mixed stands Direct investment opportunity for private investors with ecological and social benefits

6 – Unlocking Financing for CSA in Vietnam Agroforestry Partnership Fund (APF) Capacity Building - develoPPP Embedded Training-of-Trainer (ToT) project: Knowhow transfer (according to FSC standard) Nationwide rollout planned Supported by BMZ and Sequa  Guiding question: can G2A2 develop a concrete innovation that demonstrates how public finance can be leveraged to attract private capital to scale CSA?  The Green Growth Action Alliance (G2A2) was formed at the G20 summit in Los Cabos in 2012, and is currently composed of 50+ members  The goal of the Alliance is to significantly increase private financing for green growth within the next two years, by demonstrating progress that can be made by mitigating risk and by designing and deploying innovative financing mechanisms in developing countries  The Green Growth Action Alliance (G2A2) was formed at the G20 summit in Los Cabos in 2012, and is currently composed of 50+ members  The goal of the Alliance is to significantly increase private financing for green growth within the next two years, by demonstrating progress that can be made by mitigating risk and by designing and deploying innovative financing mechanisms in developing countries The Green Growth Action Alliance: objectives Climate Smart Agriculture under the G2A2: the proposal  The Vietnam Ministry of Natural Resources and Environment’s Green Growth Strategy is a bold proposal to transform Vietnam’s agricultural sector to deliver a 20% reduction in emissions, 20% reduction in poverty and 20% increase in growth  Vietnam is one of the nations with the highest vulnerability to climate change  Vietnam will need to make its agriculture ‘climate smart’, i.e. increase resilience (adaptive capacity), meet food security objectives and reduce net national GHGs.  Vietnam offers a great country pilot to develop finance innovations to implement and scale CSA bottom up  The Vietnam Ministry of Natural Resources and Environment’s Green Growth Strategy is a bold proposal to transform Vietnam’s agricultural sector to deliver a 20% reduction in emissions, 20% reduction in poverty and 20% increase in growth  Vietnam is one of the nations with the highest vulnerability to climate change  Vietnam will need to make its agriculture ‘climate smart’, i.e. increase resilience (adaptive capacity), meet food security objectives and reduce net national GHGs.  Vietnam offers a great country pilot to develop finance innovations to implement and scale CSA bottom up Vietnam pilot: the Case and the Opportunity

7 – Unlocking Financing for CSA in Vietnam Agroforestry Partnership Fund (APF) Capacity Building - develoPPP Embedded Training-of-Trainer (ToT) project: Knowhow transfer (according to FSC standard) Nationwide rollout planned Supported by BMZ and Sequa  The Agroforestry Partnership Fund aims to achieve maximum leverage of private investments through packaging a diverse Project Portfolio that consists of diverse ‘climate smart’ agro/forestry projects, with an equally diverse range of sources of revenue and levels of profitability.  To ensure the impact of the fund, it is directly related to achieve ‘climate smart’ objectives. A diverse range of financial, environmental and social metrics has been developed that projects will be evaluated against.  The Agroforestry Partnership Fund aims to achieve maximum leverage of private investments through packaging a diverse Project Portfolio that consists of diverse ‘climate smart’ agro/forestry projects, with an equally diverse range of sources of revenue and levels of profitability.  To ensure the impact of the fund, it is directly related to achieve ‘climate smart’ objectives. A diverse range of financial, environmental and social metrics has been developed that projects will be evaluated against. The Agroforestry Partnership Fund (APF)  Vietnamese ministries etc. are involved and will be represented on the Advisory Board  State Bank of Vietnam (SBV) commits to match investments with further 20% (80/20)  The fund will target institutional investors such as asset managers, pension funds, insurances, banks and companies with specific focus on G2A2 members  Initial target volume is USD 50 million expected to grow substantially in a second phase  Vietnamese ministries etc. are involved and will be represented on the Advisory Board  State Bank of Vietnam (SBV) commits to match investments with further 20% (80/20)  The fund will target institutional investors such as asset managers, pension funds, insurances, banks and companies with specific focus on G2A2 members  Initial target volume is USD 50 million expected to grow substantially in a second phase Ownership and organization of the APF

8 Thank you very much Dirk Walterspacher Managing Director Carbon Business Forest Finance Group Eifelstr Bonn Fon: 0228/