Bank aus Verantwortung

German bilateral financial cooperation for forestsJohannes Scholl

June 2013

2

International activities of KfW

● Promotion of reform processes, investments/advisory services in cooperation with governments and public institutions in developing & middle income countries

● Promotion of the private sector in developing & middle income countries

● Financing of investments and advisory services for small and medium enterprises

● International Finance in the interest of the European and particularly the German Economy by promoting exports and overseas investments

Objectives

Areas

● Climate / Environment● Financial System Development● Economic Infrastructure● Social Infrastructure

Task Financial Cooperation with Developing Countries

Entrepreneurial Development International Finance of Exports and Projects

● All economic sectors

Market entry

● Very early phase ● Mature markets● Early phase

Developing Country Industrialized Country

Middle Income Country

KfW Entwicklungsbank

DEG

KfW IPEX-Bank

Target Markets

● Climate / Env.● Infrastructure● Transport● Manufacturin

g

● Energy/Trade● Telecom● Health● Commodities

3

Financing Instruments of KfW Development BankTailor-made Financings for Every Partner

Concessional finance

Financial Cooperation

Budgetary funds only

Grants and Standard Loans EUR 1,526 million

Promotional loans• KfW funding only

EUR 1,603 million

Development loans

Combination of budgetary and KfW funds

Budgetary funds: EUR 112 mnKfW funds: EUR 1,487 million

Budget funds 2012 EUR 1,639 million

KfW funds2012 EUR 3,091 million

4

Finance for Biodiversity / Forests: An upward trend

Forestry-related projects around 30% of biodiversity committments

KfW Appraisals, Committments and Disbursements for Biodiversity (2008-2012, million EUR)

0

50

100

150

200

250

2008 2009 2010 2011 2012

Prüfungen

Zusagen

Auszahlungen

Quelle: KfW

Source: KfW

5

Three-dimensions of improved framework conditions

› RIGHTS: Clarify rights and secure access to resources

› CONTROL: Enhance public and social control capacity

› INCENTIVE: Promote sustainable practices of resource use

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Example: Forest Management in the Amazon, Brazil

› Objective: Sustainable Management of Public Forests in the Amazon

› Partners: Brazilian Forest Service (SFB) and Nature Conservation Agency (ICMBio)

› Activities:

› RIGHTS: Preparation of public forests for concession (Plans, Demarcations etc.)

› CONTROL: Building-up a decentralized SFB management structure

› INCENTIVE: Building-up a regional center for applied education

› INCENTIVE: Financing a pilot facility for energetic use of wood

› Grant: EUR 15 Mio.

› Duration: 12/2011 – 12/2015

7- 7 -

1. Antecedentes

- 7 -

Some expected impacts by 2015:

-Decrease of deforestation by 30%

-2 million hectares under concession

-Annual production of 1 million m³ sustainable timber

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Some requirements for Financial Cooperation

› Intergovernmental agreement

› Public implementation partners

› Positive social and enviromental impacts

› Scale

› Bankability

Bank aus Verantwortung

Thank you!

johannes.scholl@kfw.de martin.geiger@deginvest.de