Introduction
In 11 landscape across seven countries, IDH’s landscape program drives sustainable production and sourcing of agricultural commodities, while securing livelihoods and protecting natural resources. This is done in collaboration with public, private and community stakeholders, through among others production, protection and inclusion (PPI) agreements.
In the landscapes, IDH co-designs PPI compacts. These are based on participatory land-use planning, whereby land for production, livelihoods, and forest protection is clearly identified, and their related uses are agreed on by the landscape stakeholders and recognized by local and national governments. This will result in coalitions that are self-sustaining, are linked to markets, and prove the business case for landscape-level interventions and investments.
The compacts are the basis for investors to invest in the landscapes and for regional sourcing by supply chain companies. IDH also works at the market end to bring these players to the landscapes.
KPI Progress 2016
-
Change in Business Practice - Private Sector Investment Ratio
Target 2016 0Results 2016 1IDH is setting up a large fund to drive deforestation- free agricultural production in tropical forest countries, jurisdictions, and landscapes by directly linking commodity production to forest and peat land protection. The tropical forest and agriculture focused fund aims to trigger US $1.6 billion in private capital investments with a US $400 million de-risking capacity. The fund has an ambitious investment agenda with social inclusion and environmental safeguarding as central pillars, delivering public- and private-sector economic growth. While the fund was officially launched in 2017, much of the preparatory work to make the fund happen occurred in 2016. -
Field Level Sustainability - Number of producers/workers/ community members trained
Target 2016 250Results 2016 11,786 -
Change in Sector Governance - Change in policies in line with increased sustainability and management of natural resources
Target 2020 25Results 2016 5In Brazil, Mato Grosso state, the PRA legislation was launched and the Produce, Conserve and Include (PCI) Coalition was formalized with a decree. In Indonesia, at national level, IDH supported issuance of Perdirjen (Director General of Forest Production Decree) on mangrove silviculture management, and signed a co-funding agreement to model a public-private partnership project in Kubu Raya district that will serve as an example for implementation of the decree. In South Sumatra, IDH has done lobbying and advocacy work behind the issuance of a PERDA (provincial regulation) forbidding land users from using fire to clear land. The PERDA No.54/2016 was approved by the national government in March 2016.
Brazil
Mato Grosso is the largest producer of soy, beef and cotton in Latin America. Soy and beef are the biggest drivers of deforestation in the Brazilian Amazon. More than half of the extensive cattle ranches in Mato Grosso are highly unproductive, while new forests are being cleared to expand production. Intensifying cattle production to free up land for responsible soy, cotton and other farming is key to stopping deforestation in Mato Grosso. Through the state government-led “Produce, Conserve and Include” (PCI) strategy, IDH partners with leading producers, municipalities, NGOs and others to maintain and conserve 60 percent of native forest while doubling economic output by 2030.
IMPACT CLAIM 1
In global supply chain landscapes outside the program, public-private landscape governance models are replicated by leading companies and governments.
Achievements on claim
- IDH has contracted pilots with: Amaggi and Aliança da Terra); Grupo Roncador (beef producer) and TNC. Four field-level projects are in development.
- The Governor of Mato Grosso presented the Produce, Conserve and Include (PCI) Strategy (green growth strategy for Mato Grosso) at COP21 and established a committee to implement it. IDH is a member of the PCI Coalition, a multi-stakeholder group that will deliver the plan and includes companies such as Marfriq and Amaggi, the producers´ association FAMATO, and NGOs such as Earth Innovation Institute (EII).
- A pilot is being developed with Aprosoja on responsible sourcing areas, based on the work done by FEFAC under the soy program for area risk analyses.
- To build a pipeline for the de-risking deals, we spoke to a total of 23 investees (financial institutions, investment firms and large agri-business firms) and business cases are currently being developed.
IMPACT CLAIM 2
- Increase in public sector investments in the landscapes and build on landscape.
Achievements on claim
The Brazilian ministries of agriculture and of environment, as well as the Brazilian Trade and Investment Promotion Agency endorsed the PPI Fund at the World Economic Forum, which IDH is establishing to attract investment to the landscapes.
IMPACT CLAIM 3
Improved land and water use within public-private governance pilots executed by partners in the landscapes.
Achievements on claim
- IDH has contracted pilots with:
- Amaggi and Aliança da Terra to create verified soy sourcing areas, totaling 135,000 hectares.
- Grupo Roncador (beef producer) and The Nature Conservancy (TNC) contracted to support calf suppliers to intensify production, totaling 300,000 hectares.
- The design for the financial facility in Brazil is ready, well-tailored to the financial market in Brazil, and aligned with the financial instruments that already exist in the country. The basic metrics around the financial leverage, investment criteria and hectares/ euro are ready. There is an initial discussion on a derisking project in Para state.
- Four field-level projects are in development, all on restoration/intensification, with:
- São Marcelo (cattle rancher) and Carrefour in and around Juruena.
- ICV in the Alta Floresta region.
- IPAM/ISA, Rabobank, EII, Cargill and Amaggi, in the municipality of Querência.
- Aprosoja on legal compliance in soy connected to FEFAC.All pipeline projects are being prepared for investment, potentially as de-risking or other investment models.
Liberia
In South East and in Western landscapes in Liberia, we link the establishment of community oil palm farms to forest protection to ensure deforestation is avoided while communities have new income sources. We do this in partnership with the government of Liberia, palm oil companies and the local community. In South East Liberia for example, by 2020, the program aims to develop over 8,000 hectares of sustainable outgrower oil palm farms together with Golden Veroleum Liberia, and protect 70,000 hectares of forest. Further, we will support the community in ensuring food security though income diversification, gaining access to markets and agricultural inputs. In Nimba landscape, we collaborate with Arcelor Mittal Liberia, a mining company, and the government of Liberia to support ongoing work to add to community livelihood improvement and environmental protection.
IMPACT CLAIM 1
In global supply chain landscapes outside the program, public-private landscape governance models are replicated by leading companies and governments.
Achievements on claim
- Investment from Arcelor Mittal Liberia (mining company) in conservation agreements in Nimba landscape.
- Commitment from Golden Veroleum Liberia (GVL) to invest in oil palm outgrower loan in the South-East landscape.
- Development Finance Institutions confirmed interest in production-protection oil palm outgrowers investment proposal (Liberia wide).
- The National Community Oil Palm Outgrower Steering Committee was established, with key government agencies, concession holders and civil society representation. The aim of this committee is to drive the oil palm outgrower model into reality.
- IDH and GVL developed the investment proposal for the first 4,000 hectares of community oil palm, combined with at least 20,000 hectares of forest protection, then pitched it to potential investors.
IMPACT CLAIM 2
- Increase in public sector investments in the landscapes and build on landscape.
Achievements on claim
- The partnership for the South East solidified.
- Nimba: progress made on implementing a second round of (six) conservation agreements, in which commitments are laid out on environmental protection, in exchange for livelihood support.
- Ongoing government dialogue on: national forest definition (to include HCV/HCS); legal status of protected forest under the Production, Protection Agreement; community land rights and border dispute resolution; outgrower taxation.
- Close cooperation with National Bureau for Concessions, Forestry Development Authority (FDA), and Ministry of Agriculture, through setting up Steering Committee, implementing the program in the landscapes, and signing of MOUs.
- A cooperation agreement was signed between IDH and the FDA, formalizing our partnership for the next five years.
- A proposal for a long-term investment board and advisory committee developed.
IMPACT CLAIM 3
Improved land and water use within public-private governance pilots executed by partners in the landscapes.
Achievements on claim
- IDH and GVL co-designed a special purpose investment vehicle, to be established in 2017.
- Recruited Food Security and Income Diversification expert.
- Started development of the forest-protection plan and land-use plan related to the community oil palm outgrower loan.
- Western landscape: in January 2016, Sime Darby and IDH agreed to collaborate on detailed mapping of carbon stock in the landscape.
- Two sites have been identified for the first outgrower pilots.
Côte d’Ivoire
In the wider Taï forest area in Côte d’Ivoire, IDH focuses on enabling green growth to find a balance between forest, agriculture and people. It will do so by building a multi-stakeholder coalition that will jointly design and put forward a scalable, sustainable land management model that balances commodity production and environmental protection through an integrated landscape approach.
IMPACT CLAIM 1
In global supply chain landscapes outside the program, public-private landscape governance models are replicated by leading companies and governments.
Achievements on claim
- IDH secured €1.6 million in co-funding, mainly from private-sector partners (cocoa).
- Key players in the cocoa sector participate in the Supervisory and Technical Committees.
- Dialogue on cocoa and the forest with international industry partners in collaboration with ISU and WCF; developing supply chain commitment at the global level to address deforestation in cocoa supply chain.
IMPACT CLAIM 2
- Increase in public sector investments in the landscapes and build on landscape.
Achievements on claim
- At national level, the Supervisory Committee is established to the program. The Technical Committee is discussing and developing the building blocks for the program.
- Initial discussions with rubber sector (SIAT) held.
- MOU signed with SEP-REDD.
- Successful Agroforestry Forum in Soubré was held, followed by a high-level meeting in Abidjan. A learning brief on the status of agroforestry in Côte d’Ivoire developed. The promotion of agroforestry cocoa production systems was extensively discussed, as well as the applicability of the new Forestry Code in Côte d’Ivoire.
- Discussions started to work towards a green growth plan for Cavally. The Ministry of Planning developed a proposal to improve land-use planning in Cavally on the basis of a regional management plan (schéma régional).
IMPACT CLAIM 3
Improved land and water use within public-private governance pilots executed by partners in the landscapes.
Achievements on claim
- Barry Callebaut and CEMOI started the implementation of projects about intensification and diversification of cocoa farms in the landscape.
- Ongoing pilots on agroforestry systems (with Barry Callebaut and CEMOI), the New Forest Code (with CEMOI), sensitization of communities and surveillance of the forest (with World Chimpanzee Foundation) underway.
- Pilot with SODEFOR on forest mapping of the forest reserve Goin Debe and forest surveillance in forest reserve of Cavally in contracting phase.
- Pilot with Ministry of Planning and Regional Council on regional land-use plan for Cavally for people, forest and agriculture under development.
- IDH’s service delivery model expanded with an agroforestry module, yielding initial results on existing models in Côte d’Ivoire.
- Partners in the landscape started laying a foundation for a green growth plan for the region in an MOU.
- The Ministry of Planning developed a proposal to improve regional landscape planning on the basis of a schéma régional.
Ethiopia
The wetland ecosystem in the Central Rift Valley is the largest fresh water ecosystem of Ethiopia with considerable economic, ecological and social significance. It is a biodiversity hotspot for flora and fauna, containing a diversity of water plants and water birds, which breed primarily in the ecosystem. The islands in Lake Ziway are unique for their historical and cultural heritage. Lake Ziway is the only freshwater lake in the area, used for drinking water, small scale commercial fishing, and small- and large-scale agricultural irrigation for amongst others fresh flower production that provides a major source of income.
IMPACT CLAIM 1
In global supply chain landscapes outside the program, public-private landscape governance models are replicated by leading companies and governments.
Achievements on claim
€425,000 from public and private partners was secured and contracted; discussions with partners are ongoing, including strategic partnership with Wetlands International on Water Allocation Plan development by the Rift Valley Lakes.
IMPACT CLAIM 2
- Increase in public sector investments in the landscapes and build on landscape.
Achievements on claim
- Issues like the Water Allocation Plan have been discussed for the first time in Ethiopia with private sector partners on the ISLA coalition, driven by IDH.
- Helped lay the foundations for the Water Allocation Plan (WAP) that the Rift Valley Lakes Basin Authority intends to develop for the Ziway Shalla Sub-basin, part of the landscape. A strategic partnership with Wetlands International was initiated. Enabled capacity-building training for municipality officials on solid waste management in Ziway town.
IMPACT CLAIM 3
Improved land and water use within public-private governance pilots executed by partners in the landscapes.
Achievements on claim
- Joint reforestation, solid waste management and water allocation projects carried our with private and public sector partners with the aim to scale up activities. Communities are trained on alternative income-generation activities.
- Started certifying fruit and vegetable growing smallholders in GLOBALG.A.P. certification at a cooperative level. Farmers receive training on water-saving irrigation techniques, even using the conventional furrow in an improved manner. They also receive training on responsible agrochemical management.
Kenya
Through the Initiative for Sustainable Landscapes (ISLA Kenya), IDH aims to restore and conserve 100.000 hectares of the forest by 2030. We build on the interest of tea and other companies to conserve the South West Mau Forest for its micro-climate services and of the Kenyan government to improve livelihoods of communities. Together we work towards a holistic landscape management as well as improved livelihoods, water, and sustainable energy.
IMPACT CLAIM 1
In global supply chain landscapes outside the program, public-private landscape governance models are replicated by leading companies and governments.
Achievements on claim
- Annual contributions of €100,000 each from UTK, JFK and Safaricom Foundation; strategic partnership with Rhino Ark under development.
- Support for fence discussed with private sector; GIZ and Rhino Ark support agreed and discussions with KTDA and potential donors i.e. International Climate Initiative (IKI), and McKinsey/Partners for forest (P4F) ongoing. So far more than €750,000 secured.
- Business case for livestock intensification under development.
- Business case for fencing of the north-eastern boundary of South West Mau developed, and buy-in from private sector partners secured.
IMPACT CLAIM 2
- Increase in public sector investments in the landscapes and build on landscape.
Achievements on claim
- The ISLA Kenya board – consisting of public and private partners – jointly formulated an action plan. Quarterly ISLA board meetings are ongoing.
- Public and private partners are collaborating to improve policy enforcement in the landscape. Aerial surveillance flights helped to guide security operations in the forest, involving magistrates KWS, BSP and KFS staff.
- At the national level, meetings with ministries took place to mobilize national endorsement and support for the program.
- ISLA started a dialogue with the central government and aims to have meetings with relevant ministers in 2017.
IMPACT CLAIM 3
Improved land and water use within public-private governance pilots executed by partners in the landscapes.
Achievements on claim
- Reforestation projects with private sector, forest surveillance, water conservation projects with GIZ carried out.
- Communities also trained in bee-keeping (alternative income sources).
- Livestock intensification models are being developed to address main threat to the forest: livestock grazing.
- Southern Mau conservation area proposal developed by Rhino Ark, covering 100,000 hectares (South West Mau, Western Mau, and Transmara).
Vietnam
In the Central Highlands, most of Vietnams’ challenges: deforestation, water and chemical over-use and economic opportunities for migrants and refugees, come together. Vietnam has recently grown into the world’s second biggest coffee exporter after Brazil and 95 percent of its coffee is produced in the Central Highlands. Other important crops such as pepper, tea, fruits and vegetables, flowers, rubber, and cashew are also produced in this region, thanks to its favorable natural conditions (including abundant water resources that contribute to 22 percent of Vietnamese hydropower energy), fertile lands, and forests regulating the climatic conditions and water cycle, making the Central Highlands vital for Vietnamese economy as well as for international companies sourcing from the region. IDH collaborates with major coffee brands, the Vietnamese government, research institutes and NGOs to work towards enhancing sustainable agricultural production and protecting water and land resources through responsible agrochemical management.
IMPACT CLAIM 1
In global supply chain landscapes outside the program, public-private landscape governance models are replicated by leading companies and governments.
Achievements on claim
- IDH signed contracts with Olam, JDE, Simexco and ACOM and Lavazza, all co-financing the field-level projects of the program. The private sector invested €210,000 in these projects.
- A knowledge-sharing workshop was organized in which companies, donors, and NGOs shared their approaches and knowledge on topics such as agroforestry, water-saving irrigation techniques, and farmer data collection tools.
IMPACT CLAIM 2
- Increase in public sector investments in the landscapes and build on landscape.
Achievements on claim
- The public-private Steering Committee in Lam Dong Province defined a long-term vision for sustainable agriculture and natural resource management in 2025, with medium-term targets for 2020. We are working to establish a similar governance structure in Dak Lak Province.
- Drafted policy experiments on water pricing and water allocation in the Da Nhim river in Lam Dong Province – the first of its kind in Vietnam.
- Made agreement with DARD and VnSAT to pilot participatory land-use planning in Gung Re commune, Di Linh district in Lam Dong Province, supported by Tropenbos Vietnam.
IMPACT CLAIM 3
Improved land and water use within public-private governance pilots executed by partners in the landscapes.
Achievements on claim
- Four projects with different coffee exporters contracted, addressing agroforestry and intercropping, water-saving irrigation and water harvesting, as well as fertilizer and agrochemical use.
- Tests and training on water-saving irrigation techniques are included in the four projects with coffee exporters, as well as in the project to be started with the vegetable cooperative in Lam Dong on water pricing and irrigation services.
- The excessive use of fertilizer is being addressed by three out of four of the coffee exporters’ field level projects. In addition, an issue analysis of agrochemical use across different crops in Lam Dong has been finalized, and will serve as a basis for planning further field-level and policy interventions.
- The development of fertilizer and soil tests as a service to farmers contributing to reduced fertilizer use is part of two projects with coffee exporters.
- An issue analysis of agrochemical trade and use in Lam Dong province has been completed, and will provide the basis for future interventions supported by ISLA and IDH’s commodity programs.
Indonesia
In Indonesia, IDH has three landscape programs in four provinces: West Kalimantan, Aceh, South Sumatra and Jambi. We partner with the government of Indonesia at national, provincial and district levels; with palm oil, rubber, forestry and other companies; as well as with communities and civil society actors. Together we build coalitions for sustainable landscape governance, conserve and rehabilitate high conservation value forests and peatlands and support the creation of alternative and sustainable livelihoods for smallholders in these landscapes.
IMPACT CLAIM 1
In global supply chain landscapes outside the program, public-private landscape governance models are replicated by leading companies and governments.
Achievements on claim
- In West Kalimantan and South Sumatra/Jambi the private sector invested €678,000 in a total of eight projects. In addition, with the grant of NICFI, IDH has been actively looking for needs and developing a pipeline for large-scale investments in PPI projects, resulting in two concrete leads.
- The concept of de-risking investments in agricultural production linked to nature protection commitments have been explored with a number of palm, forestry, and rubber companies, resulting in two serious leads in West Kalimantan and Jambi.
- All landscapes: Landscape Working Group (previously Traceability Working Group) put in place, with representation of companies from the full palm oil supply chain. It will develop concepts related to verified sourcing areas and in landscapes applicable across the industry.
- All landscapes: engaged with around 30 different palm oil and forestry companies in the development of PPI strategies in the sub-landscapes in which their concessions are located. This resulted in the start of three new pilot projects in West Kalimantan and a number of leads that are expected to mature in 2017.
- West Kalimantan: Launched a partnership for sustainable commodities and landscapes, led by the Governor and supported by oil palm and forestry companies, national government representatives, and the Norwegian and Dutch Ambassadors.
- South Sumatra: Commitment of jurisdictional certification project of palm oil in Musi Banyuasin district presented and discussed with growers and buyers at the RSPO Round Table.
- Aceh: meeting with major palm oil buyers in the province with sustainability commitments (GAR, Musim Mas, Wilmar) alongside TFT and Rainforest Action Network to discuss potential opportunities and actions required to improve environmental sustainability around Leuser Ecosystem.
- Aceh: Established early relations with three palm oil growers in Aceh Tamiang and Timur and discussed ideas and leads for production-protection finance solutions. Potential PPI pilot projects and areas are being explored with these companies.
IMPACT CLAIM 2
- Increase in public sector investments in the landscapes and build on landscape.
Achievements on claim
- South Sumatra: a provincial-level green growth plan developed. The plan was nearly completed in 2016 and presented at the COP 22 in Marrakesh.
- West Kalimantan: started developing a provincial-level green growth plan. The head of Musi Banyuasin district committed to achieve jurisdictional certification in 2020, starting with Lalan sub-district in 2018.
- Aceh: MOU signed with the head of Aceh Timur district.
- In South Sumatra, the governor’s team developed a governance structure in which different government agencies ensure the work of donors, NGOs and the private sector is aligned. In the longer term, this structure may be reformed to a provincial-level trust fund for sustainable landscape development.
IMPACT CLAIM 3
Improved land and water use within public-private governance pilots executed by partners in the landscapes.
Achievements on claim
- West Kalimantan: started of three new pilot projects with PT PAS, Bumitama and Aidenvironment, Sampan Kalimantan, and continued project with WWF and a number of forestry companies, addressing production, peat and forest protection as well as social inclusion in different sub-landscapes in West Kalimantan.
- South Sumatra/Jambi: two ongoing projects with Asian Agri and Indofood Agri/Lonsum focusing on sustainable palm oil supply sheds and RSPO certification of smallholders in South Sumatra and Jambi, and one project focusing on community-based restoration of peat and forest with APP in Jambi.
- West Kalimantan: three projects work with communities in sub-landscapes on alternative livelihood/ economic development improvement activities.
Lessons Learned
Building complex multi-stakeholder coalitions on landscape management requires time. This relatively new way of working together between multiple sectors and government needs time to: develop trust between partners; design interventions that are beyond direct interests and/or spheres of influence (e.g. investment beyond farm gate); and engineer the business case (economic, political, social).
The merging of commodity programs (palm oil, soy, tropical timber, pulp & paper) into the landscape program has generated sufficient leverage to bring companies on board and to scale up interventions related to other commodities like tea, cocoa and coffee. This link adds value to stakeholders.
The conceptual development of the PPI Fund has opened doors to the highest levels in government and companies, has created momentum far beyond what was expected, and is expected to be a key enabler for impact at scale.’
Our Partners
