1. Regional Forum on Developing and Financing Low Emission Development Strategies for the Agriculture, Forestry and Other Land Use Sector: Moving from Promise to Practice Bangkok 7-9 July 2015 Financing Low Emission Development in the AFOLU Sector Jeremy Broadhead Senior Forestry and Land Use Policy Advisor USAID LEAF

2.  In 2010 24% of global GHG emissions were from AFOLU  In ASEAN the figure was 58% Source: IPCC 5 th Assessment Synthesis Report

3. 1. Why the financing gap? 2. Financing considerations 3. Financing sources and challenges 4. The way ahead

4.  Insufficient finance and lack of demand for emissions reduction/green goods?  Lack of political will?  Wrong mechanisms?  Weak land tenure and law enforcement?  Lack of clear institutional responsibilities?  Lack of capacity/experience?

5.  What kinds of financing are available?  What are the main sources of financing?  International public  Domestic public  Private  Who are the recipients?  E.g. NGOs, government, large companies, SMEs  What type of activities require financing?  Creating an enabling environment or  Producing an asset e.g. emissions reductions or “green” goods  How well developed is the policy and institutional environment?  Financial and monitoring framework in particular  At what stage of maturity is the initiative?Grants Debt finance (Loans and Bonds) Equity Subsidies and indirect finance Purchase and sale payments

6. 1. Will the investment generate a financial return? 2. Do the activities have the potential to leverage private finance? 3. Is supporting infrastructure in place?

8. 1. Technical support and institutional and capacity building  GCF, UN-REDD, FCPF-RF, NICFI 2. Non-results-based support to AFOLU mitigation  GEF, FIP 3. Non-market results-based finance  Bilateral assistance (Norway, Germany) 4. Carbon payments  FCPF-CF, WB BioCarbon Fund

9.  Improve capacity to transparently implement and monitor activities on the ground  Clarify domestic institutional responsibilities (e.g., between environment and forestry ministries)  Resolve land tenure issues  Improve effectiveness and coordination of multilateral REDD+ institutions

10.  Purchase and sale payments  Carbon market finance  Foundations  Impact investors

12.  Find ways to increase positive off-farm impacts  Increase market share and improve environmental sensitivity of markets Also:  Provide regulatory support to help realize price premium  Improve certification standards and implementation

13. Governments often the main investors in AFOLU through:  Subsidies and indirect finance  Concessional loans  Equipment and training  Financing sector governance

14.  Begin by assessing and targeting financing  Leverage private financing  Implement domestic subsidy reforms and policy support  Encourage collaborative action between domestic, international and private actors  Keep learning and moving forward!

15. 1. International Climate Change Financing for Land Use: Beyond a Paris Agreement 2. Private Financing for Land Use in Southeast Asia 3. Parallel sessions: Innovative financing i. Low Emissions Business Models ii. Voluntary Sustainability Initiatives iii. Financing Forest Conservation 4. Working groups: Addressing the financing gap i. Subnational ii. National iii. International 5. The roles of public and private financing in closing the financing gap and funding AFOLU LEDS (presentations and discussion)