This paper captures early observationsby the World Bank Forests and Landscapes Climate FinanceFunds in engaging the private sector, particularlymultinational companies involved in global agriculturalcommodity supply chains, in the context of emissionreductions programs to address land use change. The WorldBank Group’s Forest Carbon Partnership Facility (FCPF) andthe BioCarbon Fund Initiative for Sustainable ForestLandscapes (ISFL) have spent years working with privatesector companies that produce, trade or buy commodities thatplay a role in driving deforestation or forest degradation.These funds have gained valuable insights into what hasworked, and what more is required to further shift privatesector behavior toward sustainable businessmodels.Relationship building can take time; governments needto better understand the role and implementation capacity ofthe private sector, and the private sector needs tounderstand the benefits of a government-led REDD+ and/oremission reductions program. Such partnerships, however,offer promising opportunities to use availableclimate-related finance to leverage much larger privateinvestments that can support the objectives of the WorldBank Forests and Landscapes Climate Finance Funds.Whileprivate sector engagement has many challenges to overcome,as summarized in Section two, many new cooperativerelationships are being developed as part of the World BankForests and Landscapes Climate Finance Fund programs.Section three summarizes these emerging opportunities andways in which the Forests and Landscapes Climate FinanceFunds are overcoming some of the barriers to public-privatecooperation. Gaps that remain are highlighted in Sectionfour. The overall message is that private sector engagementrequires long-term commitments and unique strategies to meetthe needs of each country.
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