The United Nations Environment Programme and BNP Paribas signed a milestone agreement during the 2017 One Planet Summit to establish sustainable finance facilities and collaborative partnerships aimed at bringing private finance to transformative development and environmental projects in emerging countries. This agreement aims at raising USD 10 billion of private capital by 2025. It will facilitate the collaboration between BNP Paribas and United Nations agencies in financing projects through innovative financial structures.
The United Nations and BNP Paribas collaborated on several blended finance projects, reaching different levels of advancement and maturity. Multiple projects are still under study by the coalition. Some have been closed or are on standby, and three are ongoing (see below).
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Focus on the 3 initiatives currently being implemented:
1. Tropical Landscapes Finance Facility (TLFF)
TLFF is a landmark $95 million Sustainability Bond to finance a sustainable natural rubber plantation in Sumatra, Indonesia (2018). The consortium is working on a second transaction to issue the first Smallholder Palm Oil Sustainable Bond.
More information at : https://www.admcapital.com/tropical-landscapes-finance-facility/
2. The Global Fund for Coral Reefs (GFCR)
GFCR seeks to enhance the resilience and adaptive capacity of priority coral reef ecosystems and of the communities that depend on them. This fund would be the first global impact fund to foster climate adaptation. It was first discussed in 2018 and the fundraising campaign started in January 2021. The aim is to raise and deploy $625 million over 10 years.
More information at : www.globalfundcoralreefs.org/
3. Micro finance for ecosystem-based adaptation (MEba)
MEba aims at increasing the climate resilience of small-scale farmers in Latin America, through micro-finance. As of September 2020, 17 870 credits have been disbursed by partner Microfinance Institutions (MFIs), amounting to $30,7 million of private investment towards EbA. BNP Paribas collaborates with United Nations agencies and public institutions in the implementation of this project.
More information at : www.unepmeba.org/