arbolivia project presentation€¦ · project officially certified as “green project” first...
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Sicirec Group Making profit with nature conservation
Profitability
Poverty alleviation Biodiversity preservation
1991: Sicirec founded
Consumers organisation
Investment Management
Trading platform
2007: Company reorganisation
Own plantation forestry projects
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Land use: Spatial mix:
Economic land use & Nature conservation
(maintaining / restoring coherent ecological networks)
Production areas: 100% financial profitability
Conservation areas: 100% maximum values for nature
Deal: Cheap financing, profit and livelihood improvement
in exchange for
Setting aside % of land property for nature conservation
The Sicirec Formula Si
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Restoring, sparing and protecting ecological network structures
Ecological zones and corridors with a target of
100% climax vegetation
No focus on multiple land use
Ecological structures on every level: • stepping stones • ecological connections • regional and national ecological
corridors
The Sicirec Formula
Financing profitable productive areas in exchange for
permanent protection of interwoven ecological zones
Population explosion
Ubiquitous colonisation
Cash is king
Unstoppable economic forces
Difficult to prevent larger virgin areas from being exploited
Why ?
Clear spatial distinction between protected ecological zones and productive areas
Finance profitable projects in productive areas
Create legal permanency of preservation of coherent ecological network structures
How ?
• Spatial integration of productive and protected areas
• Creating opportunities for investors to make a profit from the preservation of nature by means of conditional funding
Result:
Sici
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The Sicirec Formula in practice: ArBolivia
Sicirec:
Financing, technical support, organisation
Payment for labour and fair trade timber prices
Create enduring livelihood improvement
Smallholders:
Land & labour
Permanent conservation - 20% - 30% of the project area
Net timber revenues split 50% - 50%
Equity investments
Carbon credit sales
Tree planting subsidy certificates
Other environmental services, such as REDD
Low interest Green Loans from Dutch Green Funds
Financing method Si
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Financing ingredients create very good IRR upside
High IRR for investors for 40 years
Land use plan for whole of Smallholders’ property
Smallholders paid from the start
Access to microcredit facilities
Investors and smallholders each 50% of net timber revenues
Livelihood improvement
Restoration and conservation of ecological networks
Profitability for all parties Si
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Lasting preservation of biodiversity
Securing permanency of ecological network structures
Method of financing is structural and lasting
Anchored in land use planning
Permanent legal protection for ecological infrastructure
Involvement of
• Local people • Local authorities • (regional) Government
Education
Ecological awakening on all levels
7,200 hectare plantation forestry project
Start of the project in September 2007
Predominantly indigenous tree species (18+ species)
5,000 hectares forest plantations
1,000 hectares agroforestry
1,200 hectares permanent nature conservation
The ArBolivia project Si
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Cooperation with smallholders and farmers federations
Smallholders’ commitments legally secured
Payment for labour
Fair trade mechanism:
50% of net timber price secured by project >> 100% local timber market price
Micro credit facility – trees as collateral
10% bonus payment through cooperatives
Long term commitment Si
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20% of net revenues for management
1,000 smallholders contracted
Project officially certified as “Green Project”
First PDD registered with UNFCCC January 2009
Total of $ 3.0 million invested to date
1,600 hectares forest plantations planted
140 hectares agroforestry
290 hectares of nature conservation
Current status ArBolivia project Si
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Total project costs $ 17.2 million
$ 3.0 million covered
$ 7.0 million to be financed with green loans
> $ 3.4 million CO2 credit sales & tree planting certificates
< $ 3.8 million needed from equity investors
Current status Financials Si
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Financing ingredients create very good IRR upside
Extension of ArBolivia project
Smallholder projects, but also projects covering larger expanses
Opportunities for similar projects
Also in other countries and continents
Additional income from REDD
Liquidity for equity investors
First additional project in Ghana, west Africa
Future Si
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www.arbolivia.org www.sicirec.org