CEADIR Series: Scaling Up Private Sector Investment and Finance for Sustainable Landscapes in Southeast Asia
Southeast Asian countries are developing and expanding partnerships to increase the sustainability of agriculture, forestry, and other land uses through investments and actions that can enhance production while reducing deforestation and greenhouse gas (GHG) emissions. Leading international and domestic corporations have pledged to achieve net zero deforestation in key commodity supply chains by 2020. Global agribusiness leaders have committed to doubling food production while reducing agricultural GHG emissions 50 percent by 2030.
On March 29, 2017, USAID Asia sponsored a regional workshop on Private Sector Investment in Climate-Smart Commodity Production in Southeast Asia. The event was organized by CEADIR and co-hosted by the Asia LEDS Partnership and the Food and Agriculture Organization of the United Nations (FAO). The workshop focused on sustainable production opportunities in rice, pulp and paper, shrimp and other aquaculture, palm oil, coffee, tea, and cocoa value chains in Indonesia, Philippines, and Vietnam. It engaged 90 representatives from major corporations, financial institutions, investment firms, small- and medium-sized enterprises (SMEs), sustainability certification platforms, and senior government officials. Private sector leaders identified top priorities for collaborative action, including increasing the access of SMEs and smallholder farmers to financing. Government leaders identified key priorities, including increasing private sector engagement in policy development and program implementation. Development partners recommended more regular dialogues among policy makers, businesses, forest product producers, and smallholder farmers.
On May 25, 2017, CEADIR hosted a webinar on “Scaling Up Private Sector Investment and Finance for Sustainable Landscapes in Southeast Asia” to share insights and recommendations from the regional meeting and priorities for next steps, featuring:
- Mikell O’Mealy, Activity Manager for CEADIR’s sustainable landscapes and clean energy support in Asia, who highlighted key findings from the March workshop on private sector investment for climate-smart, low-emission agricultural and forestry production.
- Beau Damen, Natural Resources Officer for FAO’s Regional Office for Asia and the Pacific, who discussed the importance of engaging the private sector to accelerate investment and finance aligned with national climate change targets.
- Rachel Zedeck, Director for Sustainable Programs at Control Union and a CEADIR partner, who provided insights on challenges and opportunities for mobilizing private sector investment for sustainable landscapes.
Key takeaways from the event:
- Greater public-private sector collaboration will help accelerate private sector investment and finance for climate-smart, low-emission agricultural and forest commodity production in Southeast Asia, which will also help countries achieve their national climate change commitments.
- Private sector leaders in the region have embraced the business and economic case for ambitious climate action. In the forestry sector, companies have committed to move toward net zero deforestation in key commodity supply chains by 2020. In food production, agribusiness leaders have pledged to make 50% more food available while reducing GHG emissions 50 percent by 2030.
- More regional and global markets are calling for commodities certified as sustainable, and leading banks, investors, and companies are beginning to develop “climate smart” products and strategies in response. In Asia’s dynamic markets, private sector leaders face multiple challenges to achieving their climate-smart goals, while national and subnational governments seek financing to promote and accelerate sustainable land use management.
- USAID, FAO, and the Asia LEDS Partnership convened a workshop in March 2017 in Bangkok, private sector leaders identified priority needs and opportunities to scale up investment for climate-smart, low-emission production in Southeast Asia’s largest agricultural and forestry value chains, including rice, pulp and paper, aquaculture, palm oil, coffee, tea and cocoa, focusing on key markets in Indonesia, Philippines, and Vietnam.
- Top private sector priorities include: (1) Finance: Identifying pathways and solutions to enable SMEs to access financing; (2) Communication: Facilitating more regular dialogue between national level policymakers with business and smallholder farmers; (3) Policy: Developing and implementing policies that incentivize (or penalize) companies that pursue (or do not pursue) climate-smart approaches; (4) Data: Improving data sharing with farmers and upstream commodity producers, including on weather data and best practices; and (5) Communication: Find a common “language” or understanding on climate change actions.
Download presentation: https://ceadirseries.adobeconnect.com/may2017_presentation/
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