PARTNERING FOR SUCCESS - UNDP...2 GREEN COMMODITIES PROGRAM: PARTNERING FOR SUCCESS UNDP established...

PARTNERING

FOR SUCCESS INFORME PARA EMPRESAS

2 GREEN COMMODITIES PROGRAM: PARTNERING FOR SUCCESS

UNDP established the Green Commodity Program (GCP) in 2009, as a small unit within UNDP’s global network to transform agricultural production and trade around the world through multi-stakeholder collaboration and the establishment of effective enabling environments

WHY SHOULD COMPANIES PARTNER WITH US?

Achieving sustainable agricultural commodity production is critical for companies to secure long term quality supplies as well as for improving livelihood of producers, reducing the impact on the planet resources, and support rural development. Businesses, with the support of NGO’s, international organizations and donors have piloted various instruments and supply chain initiatives to drive sustainability. Certification has been so far the most effective tool for companies to incentivize and manage sustainable agricultural production.

Some progress has been made using these instruments, but their impact is still small as all the efforts are too fragmented and as structural problems persist at scale across producing countries. These problems, which are mostly beyond the farm level, can include weak policies on: land use planning, landscape management, land tenure, deforestation, food safety and quality, trade; combined with weak legal enforcement, poor infrastructure and support services. The Green Commodities Program offers an holistic approach bringing together public and private sector efforts to address the structural problems that prevent mainstreaming sustainable practices in the agricultural commodity supply chain. The Government needs to be able to conduct the necessary changes in its policies; to have the capacity to enforce them, to improve the necessary infrastructure, and provide the basic education and extension services to farmers. The involvement of the private sector provides the confidence to governments of the value of the policy reform on sustainability and of the potential of markets. A systemic approach brought by all public and private actors will lead to a win-win long term solution for all, and a wide adoption of sustainable agriculture practices, as shown in the below figure. Core GCP strength is UNDP’s presence in many ministries providing policy advice and capacity building. GCP complements and works closely with current efforts of supply chain actors and initiatives (e.g. Sustainability Roundtables, IDH, and WWF) as well as with relevant ministries within a government, to create an effective enabling environment for sustainable practices in commodity sectors.

GREEN COMMODITIY PROGRAM


The GCP combines public and private sector efforts to transform commodity sector. GCP is a neutral broker with a strong technical

expertise, bringing together the various stakeholders of the targeted commodity sector at country level to engage and address

underlying structural problems. GCP focuses on highly traded commodities with substantial environmental and social impacts. It has

initiated programmes on beef, cocoa, coffee, dairy, palm oil, pineapple and soya.

GCP has developed a framework to replicate its approach in the targeted countries. At global level, GCP is the centre of expertise and

knowledge management. It facilitates the sharing of country experience and lessons on modalities for public private partnerships for

strengthened enabling environments. It can act as a link between the global forums and standards and national activity.

It formulates strategy, develops global partnerships and provides guidance and support to country level interventions, managed by

UNDP country offices. At the country level, GCP addresses root causes of unsustainable production practices for the target commodity

and supply chain using the framework as pictured below.

The GCP views the design phase of the commodity sector transformation as crucial to ensure that the structural problems are well

captured in the root cause analysis, the government is fully engaged in the process and the identified stakeholders are ready to join the

National Commodity Platform. UNDP’s long term presence enables the design analysis to navigate the dynamics of the country during

this phase.

THE GREEN COMMODITY PROGRAM APPROACH

Source: UNDP, Green Commodities Facility 2013


GCPF acts as a crucial connection between public and private sectors leading them both towards the implementation of sustainable practices in targeted countries

GCP – BUILDING BRIDGES


The implementation phase focuses on the four following components:

• NATIONAL COMMODITY PLATFORM: This mechanism pioneered by GCP brings government, private sector

and civil society together to join forces to promote sustainable production and trade at a country level for a target

commodity. The Platform creates a long-term neutral space where the stakeholders can align, take ownership and develop

a joint concrete action plan necessary to transform the country commodity sector. National stakeholders typically include

government, domestic and international business, producers, producers’ organizations, labour unions, industry

associations, financial institutions, NGO’s and research institutions. The Platform Chair is a high level government official

such as a Minister or Vice-Minister. GCP supports the creation and the development of the Platform from consensus

building to the definition of the action plan and its implementation. The Facility focuses on systemic capacity building at

government level so that the government through its relevant ministries/ institutions is fully empowered to lead the

transformation of the sector.

• POLICY ADVICE: this involves the review of legal and regulatory framework (eg policies promoting sustainable

practices, land tenure, land use planning, fiscal policy instruments), the strengthening of legal enforcement, the provision

of a package of market based tools and economic incentives to sustainable production through the payments for

ecosystem services, REDD+ .

• INSTITUTIONAL CAPACITY BUILDING OF GOVERNMENT to strengthen the legal enforcement and to

deliver more effective assistance to producers through extension services, land use planning, financial services access,

social services access, etc.

• FINANCE FOR PRODUCERS: GCP works with the national financial sector building local banking capacity for

farmer financing.

THE GREEN COMMODITY PROGRAM APPROACH


The expected outcome is a transformation of the sector with sustainable practices being mainstreamed.

The uniqueness of the approach is that GCP, through UNDP’s expertise with government engagement, is able to bring together governments and supply chain actors to promote a systemic change for scaling sustainable agricultural commodity production and trade. The benefits for businesses include:

1. INCREASED NUMBER OF FARMERS PRODUCING SUSTAINABLY, due to:

More effective extension services for sustainable practices resulting from institutional capacity building.

National institutions and policies supporting sustainable practices on farm, landscapes and in the supply chain

The combination of improved policies (eg land tenure security), access to finance and long term incentives (e.g. payment for ecosystem services) enable farmers to invest long term in sustainable production capacity.

2. REDUCE OPERATIONAL AND REPUTATIONAL RISK, due to:

Engaging in interventions at the landscape level allow better control of risks which cannot be managed at the farm level such as deforestation and upstream water contamination.

Improved and better enforced standards and regulations can increase trust in farm practices across a country.

3. OPPORTUNITIES TO LEVERAGE GOVERNMENTS and other stakeholders resources to support sustainability

in the supply chain, for example by clarifying respective roles and responsibilities with government on broad issues such as rural development.

4. BRAND BUILDING by being able to demonstrate positive impact on sustainable production and broader issues like rural

development, deforestation, climate change.

BENEFITS


Companies are key partners for GCP at the global and national level. Having local as well as large international

companies engaged with National Commodities Platform is essential to demonstrate the market interest to stimulate

government action and to promote additional private sector engagement. Companies can participate in the activities

in three main ways:

HOW CAN COMPANIES PARTNER WITH GCP?


How to participate? Benefits:

1. PARTICIPATE IN A NATIONAL COMMODITY PLATFORM

Companies can participate in Platform operations, both plenary meetings and

thematic working groups relevant to the company. Companies can assign

country staff to participate actively in the discussions and to commit to

implement solutions. A company can also participate in establishing Platforms in

countries where they are needed but do not yet exist.

• Possibility to discuss and address the

problems faced in the commodity sector in a

coherent way at national level

• Networking with the other actors and

initiatives

• Co-participant in solutions to favour

sustainable practices

2. PILOT A COUNTRY-FOCUSED PROJECT FOR SYSTEMIC

CHANGE OF A COMMODITY SECTOR

A company can be part of jointly designing a country project to tackle root

causes, either as a standalone project or connected to a National Commodity

Platform. Company involvement and expertise can be matched with UNDP’s

expertise in rural development and policy to design effective interventions and

encourage governments to adopt sustainable policies.

• By piloting and funding specific projects,

companies can be pro-active, gain the first

movers benefits and have emphasised

sustainability issues of priority to the

company.

3. BECOME A LEAD PARTNER IN A GLOBAL COMMODITY PROGRAMME AT INTERNATIONAL LEVEL For example, to

enhance rural development, reduce deforestation and carbon emissions

• Leverage all UNDP expertise to build a global commodity programme for example exploring REDD +mechanisms and incentives

.

*GCP welcomes exploring other innovative ways to partner.

For more Information and partnerships contact:

[email protected]

Green Commodities Programme

United Nations Development Programme

PARTNERING FOR SUCCESS - UNDP...2 GREEN COMMODITIES PROGRAM: PARTNERING FOR SUCCESS UNDP established...

Documents

Transcript of PARTNERING FOR SUCCESS - UNDP...2 GREEN COMMODITIES PROGRAM: PARTNERING FOR SUCCESS UNDP established...