Engaging the Private Sector

WORLD BANK

Extensive private sector engagement

• PPPs: Bank Group trust fund contributions from foundations and corporations small but growing ($218 and $31 million, 2002-8)

• Global Financial Solutions. Innovative approaches to:

• address government and market failures for global public goods

• monetize investor willingness to support socially sustainable projects and climate-related initiatives

• GEF portfolio: WB secured high levels of cofinancing from private sector – in all focal areas

Innovative financial instruments: Some examples

• Leverage private resources from investors and philanthropic organizations to support expanding public spending in developing countries

• Facilitate deployment of public resources in ways that reduce the risks of entry in developing country markets (leverage private investment through guarantees, risk sharing facilities, and transactional support for public-private partnerships)

• Better manage the costs of crises through ex ante insurance schemes (rather than ex post recovery financing)

• Provide incentives for performance and implementation

GEF Earth Fund: WB/CI Platform Engage the private sector in

conservation 1.Streamline product sourcing agreements between companies and communities

2.Develop conservation partnerships between private sector actors and communities that produce social and environmental results to meet corporate responsibility commitments

3.Build capacity of SMEs through loan financing -increased participation in product/service supply chains that benefit conservation and economic development

Conservation Agreement

ConservationActions

BenefitsThreats to Biodiversity

Opportunity cost

Patrolling Reforestation

Demarcation No hunting

No deforestation

Teachers salariesMedicinesAgricultural servicesWages for conservation actions

Financial Tools

Private sector

High biodiversity

sites

Social results

Environmental results

GEF

Donor communit

y

Results for the investors

Value from demonstrati

ng social and

environmental

contributions

modelph

ilant

hrop

ic

governance strengthened

Micro-lending

mechanisms

Private sector

Natural product source areas

Social results

Environmental results

GEF

Results for the investors

modelso

urci

ng

Entrepreneurship fostered

Verde Ventures

Natural ingredients

Traceable supply chains

Complement conservation agreements with SME investments

• CI's Verde Ventures Fund invests in SMEs: provides debt financing of $30,000–$500,000 to strategic businesses that benefit conservation

• Verde Ventures business partners also employ over 15,000 local people in 13 countries

• Verde Ventures support has helped protect and restore more than 300,000 hectares of habitat

Platform: 3 types of funding• Feasibility analysis grants. 3-9 months, up to

$20,000. To assess the feasibility of implementing conservation agreements as a tool for conserving the proposed area.

• Grant for implementing conservation agreements. Up to 3 years; up to $500,000. To implement conservation agreements (assessed as viable above)

• Non-grant mechanisms, such as loans, guarantees, and others to support streamlining product sourcing agreements and building the capacity of small- and medium-sized enterprises. Used in combination with conservation agreements to ensure conservation outcomes or provision and maintenance of ecosystem services.

SoS – Save our SpeciesWHY BE A BUSINESS PARTNER?

• Stand Out in a Competitive Market

• Make the Most of a Wealth of Marketing Material

• Be at the core of a Highly Credible Project

• Gain Significant Visibility

• Delegate to SOS -Assurance of Effective use of Funds

SUPPORTED BY 8,000 OF THE WORLD BEST EXPERTS

• Build on momentum

• Protect your logo –Address a specific issue

Lessons Learned for private partnerships

• Focus on substance (not on resources) • Early engagement• Long-term perspective • Senior management involvement• Risk management• Be more “user friendly”

Issues for considerationRole. Private sector as:• Recipient of support

or funds (beneficiary)

• Provider of funds and support (donor)

• Provider of expertise (contractor)

• Partner - ?

Level of private sector :• International

corporations (or foundations)

• National private sector or SMEs

• Local community initiatives, NGO, CSO

►Role and support of GEF or Agency? ►Instruments?