Her company and From admin control from admin control give it up for Christina, please Thank you. Thank you. All right. Hello, everyone Cool to see that you found the time and to join me today on day One of Kubernetes community days Amsterdam I'm gonna talk about day zero of adopting a managed Kubernetes service and for those who may not know what a managed Kubernetes service is this is basically a offering of creating Kubernetes clusters in cloud for example in GCP or Asher or AWS and what considerations you may need to take when you decide to adopt such managed Kubernetes service offering a Few words about me. So as I was nicely presented My name is Cristina de vodka. I'm based in Oslo, Norway and Working as a software architect and have been working with Kubernetes for more than a four years now I am also a Microsoft Azure MVP and apart from my full-time job. I find it really Giving and fun to contribute back to the tech community. That's why I am here today but if we get back to Why we are here This session came to life because I have been working in the projects That where we have been adopting a managed Kubernetes service and one of the projects where I was involved we actually At some point I had to postpone the production rollout of our workloads Hosted on managed Kubernetes service and in that case that was AKS Which is Azure Kubernetes service and offering from Microsoft and we had to get back to the table and do adjustments in order to make that production rollout Really of high quality and efficient and this was also based on discussions with other teams in other organizations that we've had and The things they wish they knew During the initial phase the adoption phase of managed Kubernetes service Which made this session came to life to raise a bit more awareness about this and you can see some of the questions here that many organizations and teams may be having that could also be related to the Existing misconceptions and expectations that we may have to cloud service providers and you may think that if a Kubernetes service offering is managed then a lot may be pre-configured and hardened and Secured in a good way so you might not need to do and Invest as much effort and time and resources as you would guess But reality is a bit harsher than that and I forgot to say that I like cats So you may see quite a few cat pictures here. So bear with me But the answer to many of these questions is actually no you will need to do quite some effort in order to ensure that The managed service the managed Kubernetes service is actually of enterprise scale and production ready When you deploy your workloads on it and to set the scene I guess the most important Misconception that is important to clarify is if managed Kubernetes service is a platform as a service offering And the fact is that it isn't if you for example go to the official documentation from Microsoft for AKS There it is stated straightforwardly that the that AKS is not a pass offering Even though cloud service providers do manage And secure control plane of the Kubernetes clusters we create for us We still have a high level of responsibility in terms of Keeping up to date secure properly configured the worker nodes where our applications will be running And we will also be responsible for updating those nodes those clusters Including the control plane because cloud service provider will not do that for us So we end up in that important concept when it comes to using cloud solutions, which is shared responsibility model The cloud provider does have a high level of responsibility But so do we and this is also applicable for managed Kubernetes service And in order to be able to execute upon that responsibility We need to understand how Kubernetes works and how components in the Kubernetes ecosystem Hang together and which tools can help us do it in a good and agile way And that's when another question that raises a lot of discussions these days pops up if Kubernetes is hard and I could say that from my experience and the experience of the teams I was working with I could say that this isn't Kubernetes is not necessarily hard, but the learning curve is quite steep and You need to ensure that you are not the only one Having that competence and knowledge in how to maintain Kubernetes and workloads running on those clusters so that others can step in in case things go wrong and that's when they zero phase comes into picture because We do talk a lot about day two operations and what will happen when we have our workloads up and running on Our Kubernetes clusters and they are in production and our customers and users start using it But I do believe that it's equally important to raise awareness about day zero Phase which is that design the architecture and planning phase of adopting Kubernetes and manage Kubernetes service as well and there is a saying that Rome was not built in a day But they were laying brick by brick every hour I guess that's more or less the quote and that is applicable in case of adopting Kubernetes as well You cannot implement everything at once in a day and the approach will be layered Where you work brick by brick and build That mature technical platform based on Kubernetes, which will be which will be production ready But if we get more concrete, I have only half an hour Normally, I do have at least an hour to go more in depth and maybe even show some demos But it will be highlights of the highlights So what should you think about before going all in with a managed Kubernetes service? And I want to start with maybe the most important piece the piece The first brick that you would start with that is very important And that is the readiness of the applications that you want to migrate to Kubernetes and We do hear quite a lot of success stories about companies that have migrated to Kubernetes To manage kubernetes service in cloud and kubernetes can be a good candidate for lifting and shifting your legacy applications But if we deep dig down a bit into those success stories We get to see that they were able to succeed because they are systems their legacy applications were already Relatively distributed and they had a collection of lightweight Microservices which from before had all the necessary prerequisites to be able to just migrate them to kubernetes and Get that quick and fast scaling fast time to market more or less Out of the box, but if you have a legacy application that is heavier that is Potentially more monolithic that takes some time to warm up then Lifting and shifting to kubernetes may not resolve those challenges for you And here is an example if you think about the image size if you decide to containerize Your application you need to think about the container image size in the end it would contain Include the base image the security patches and updates that the owner of the base image pushes out Continuously and the size of the application code itself So if you have a monolithic legacy application that is running on dotnet framework 4.8 For example, it's five to six gigs in size just the base image And then you have the updates a few gigs in size on top of that And then you have the application code with a few gigs size on top of that so you may end up in a Container image of size 10 to 11 gigs and if you put warm up time on top of that And then you put that in a kubernetes cluster and try to scale you can imagine that you will Definitely not be able to to get that in an efficient manner So you would need during the planning stage evaluate how your Current application architecture is can you move Things out and if there is any refactoring that needs to be done And another important point is the technology strategy that you have long term Are you gonna be working with a single cloud? Will you have multi cloud approach or will you have a hybrid cloud where you have also parts of your workloads running on premises and This will also define which kind of tools you will be choosing going forward that may need to be cloud agnostic for instance And kubernetes may not always be the answer for you or at least the managed kubernetes service So if you have a single instance of a monolithic application, for example kubernetes will definitely be an overkill So or if you have just a small amount of microservices one or two Just maintaining and operating those clusters those worker nodes would be an overkill So you could consider something like serverless kubernetes offering where cloud providers do also Manage the worker nodes for you It is more of a black box solution and you may have limitations like you don't get access to a Kubernetes API server direct access to it But this may be enough for your case what the serverless kubernetes offering can can get you so this is important to look into and See what would be the most the most optimal choice for your for your use case and how much time you may need to prepare Your applications before eventually migrating to a managed kubernetes service and from application readiness We move more to a people question. We move move more to an alignment in the organization and another important equally important Consideration you need to work on is organization readiness and See my awesome design skills. I made this animation just for you today the quote that Some organizations maybe the leadership can often fall into is that we should do kubernetes because Spotify does it or because so many other organizations Do it and succeed with it and because this is hot. This is what everyone is talking about But using that as the guidance is The wrong reasoning for why you should be adopting that and this is important to talk about and align And I think that kubernetes has a really good quote about it that kubernetes management requires making cultural shifts on steroids and that is true because this is not only you who will Who may need to work with those kubernetes clusters and maintain them? In in the long term you would need to ensure that the developers also understand how this will affect their daily work You also need to understand that you may not see Cost optimizations from the beginning or likes the that it will be cheaper than it used to be from the beginning It may be a long-term investment What we have seen in one of the projects is that we had applications that were offered both in cloud and For our own premises customers and when we decided to adopt Managed kubernetes service we had to do changes in the application and the way we deploy which affected on premises customers Directly and we assumed that the changes are of no significance. I mean they can just fix it They can set up what's needed in the infrastructure to adopt for those changes But when our customer success teams and sales teams came into picture We realized that alignment was missing there And we used much more time to ensure that those customers are properly prepared and Negotiated with them in order to ensure that they were also okay with these changes If we did it from the start if we ensure that the sales and customer success teams also understood how these changes Technical changes will affect them. We would have used much less time. So it is important to during the planning to think about will adopting and changing to Managed kubernetes service bring value to us in our daily work and to our customers or would it just create more complexity and frustration and Also align it across departments and collaborate from the start and during the whole journey and the important part of the organization are our dear developers and They may be affected and it's important to ensure that you also have a dialogue with the developers And also remember about making it easier for them. So the Thing to have in the back of our heads when we are planning for doing such a shift is that we should still Aim for reducing the cognitive load on our developers and not introducing more complexity and if we Deliver the responsibility to our developers do not create tools that can make it easier for them To understand how they can containerize the application in a good way and prepare it for kubernetes This is what happens. It is blurred, but it does not matter here So what you can see here are two applications to microservices That's did not have any resource and request limits set at all and They sneaked their way in into the cluster Fortunately, this cluster was not a production cluster But what you can see here are lots of pods in the evicted terminating crash loop back of state this caused quite some chaos and almost a cardiac arrest for some of our operations resources and This is not the developers fault. They made there are so many components and things you need to think about And if you haven't worked with Containerization or orchestration before and are just a developer you cannot possibly remember all of those points So creating making it easier for the developers creating Tools that could make some of this configuration out of the box can really make their life Easier so during the planning phase. It is worth looking into how you can Abstract that complexity away from the developers and we have seen also that Just providing the links to the documentation or to tutorials was not enough But when we had those hands-on workshops with concrete scenarios, okay, we're gonna containerize this application now Let's do it together and you are doing it live together with them we have seen this giving the most value out and this is definitely something worth considering and also having the Automated checks that could ensure that such sneaky applications with missing resource and request limits will never be deployed To a cluster and will be gated automatically is definitely worth looking into from the start And we have also seen that having production like Clusters could really help to ensure that you are also testing Your applications with the same level of configuration as it is in production And this has proven to be really useful for operations resources as well and lastly We do hear a lot about github's these days This is kind of the golden standard of deployment to Kubernetes where you have your source repository as a single source of truth And you have that model where the cluster pools changes every time the Ryan it changes being merged But I think it's also important Like Shakespeare potentially said to github's or not to github's that is the question It's important to say that github's will not resolve the bottlenecks You may have in the organization currently So if you don't have in a high enough level of automation to ensure that you have the Automated tests the automated security checks and gates in place from before That github's will not help you resolve it. It may create more more challenges So the point is that you should know that you can always start without github's from the start with the starting with the bare Minimum and building that maturity over time as you evolve and get more skills with Operating kubernetes Another important point that we have heard about today also during the keynote is the cost and how to ensure that the cost is actually under control and This is interesting because I find that CNCF had a Survey last year and it was discovered that 68% of respondents Reported a kubernetes cost increase and more than 20% have said that the cost increased during the last year and with the Disturbing times that we are in now with a high focus on cost It is important also to plan for the necessary tools and Investigate the capabilities that are there in in the cluster or in the in the cloud from the cloud service provider that can make you create a Manage the kubernetes clusters in a cost efficient manner from the start and here are some Some opportunities that that you can see here and we had also a session about cube green earlier today Which is also a relatively new tool that can help you Sleep and Create more and decrease the amount of pods in the cluster based on a specific schedule This will also optimize your costs and what is a great consequence out of that when you have Focus on building efficient and cost optimized platform You also utilize resources to their max potential and end up in building and more Sustainable and greener solution and having policies that can again have Help you control that daily budget can control sudden increase in cost could also be extremely Beneficial and also see the trend With cost management tools like cube cost for instance and again one of the examples we had just last week There was an issue on the cloud service provider side which costs some of our installations of the extensions or add-ons Ending up in a hanged state and we were using private endpoints for communication and what this ended up with is 24 7 10 instances we're sending this Failing requests through the private endpoint which takes money for the amount of inbound and outbound traffic And if we didn't have alerting we might not have discovered this straight away. We might not start Doing the remediation and we may have ended up in Going long over the budget and having that budget limit that also alerts you if you keep doing like this You will end up so so much over budget Having that could really help you and make your leadership happy as well Call savings is always cute and Here is also one of the examples that I took from Asher that is also worth keeping in the back of your head Here you can choose the The nodes for your Kubernetes cluster for AKS in this case with either Windows or Linux operating system And you can see if we take a look at the first row here This is the type of the virtual machine which is D2S V3 if you choose with Linux You will need to pay seventy eight dollars But if you choose with Windows you get almost double you will need to pay double as much and this is also worth thinking about When you are deciding which OS you need to use and what type of workloads you have Another example is the region here is a comparison of North Europe versus West Europe and versus Norway East And these are Norwegian Croners But if we convert it to two euros if you choose a B2S, which I highlighted there, which is also a virtual machine You if you choose North Europe you would need to pay two hundred eighty Croners versus 300 or 339 for Norway East if you can use a region that is potentially cheaper not to violating any Laws privacy laws and compliance frameworks. That's worth considering And now Getting trying to cover it quickly. Can we cover it quickly? We can't so let's talk a few minutes about security and The trap here is that Kubernetes is not built with security by default What do you think these numbers represent? And his ideas What what? CVEs. Oh, you are right on top there This is the amount of exposed Kubernetes clusters worldwide that as you can see In June 2022 cyborg research lab did a scanning worldwide on the most known endpoints that can Kubernetes clusters expose and this is not that far from a million clusters worldwide. This is insane and In some cases if you think again as I've been Mainly working with AKS. So I know most about it by default its API server is Searchable by default so you can you can reach it you get an Unauthenticated response back, but you still have that attack surface that attackers can check and work towards so having that in mind starting with these most crucial steps like Limiting access to your cluster following the least privilege principle Ensuring that you have our role-based access control in place. He is important and also running containers as root We know that this is a no-no, but it is not always easy. Here is an example of a dotnet core sp.net core base image that actually does not provide possibility to run with as Non-root by default so you would need to make some changes in order to accommodate for that and Implementing security checks should happen continuously During the whole development lifecycle process and fortunately some frameworks out there could help us achieve that and It's worth looking into those frameworks from the start because customers will keep running and some of them are really curious and they Would need proof that your new solution is compliant with those frameworks And what is good is that some of them do provide concrete examples on how you can mitigate and implement this and that security control Lastly quickly quickly in two minutes. I'll I'll do that I'll still try to sneak in a data operations here and the fact that things will fail And this is also something that is worth thinking about and planning for from the start This is an example of an outage in one of the regions of AWS that happened both in December 2021 and July 2022 where multiple big services were experienced downtime This is an example of a faulty update that Azure has rolled out to their Linux virtual machines that also caused quite a few outages and especially a chaos being Affected a lot by that. So having that disaster recovery and important things like Observability multi-region deployment even chaos engineering which could help you simulate these situations would really help and Don't rely on cloud vendors and having operations team that will take that responsibility work with it from the start would Really be worse the effort in the long term than them figuring it out once you are up and running in production And this is how you deploy a container on Kubernetes in 30 minutes. That was my session session today So summing it up now. We're getting close Do the change for the right reasons do? Adopt Kubernetes and manage Kubernetes service if it brings value to you and your customers Do not underestimate the day zero the planning stage to ensure that you don't need to get back and do a lot of rework afterwards do invest time in that Start small and expand building brick by brick with everyone who needs to be involved by to build that mature platform Have that common ownership so that you will not be the only one Operating kubernetes because then you can't be sick or go on vacation you would need to have others understand kubernetes understand how Everything works in that ecosystem so that they can step in shift left not only on security on everything and Prepare for the things will fail and my hearty recommendation to not forget the resource and request limits If you don't want if you want to take care about your kubernetes administrators And once you have done all that you are good to go. You have a full operational Kubernetes clusters running in cloud or elsewhere You get all the resources in this github repo if you want to Find more about it and do reach out to me and if you have any questions I'll be happy to help you out either here or after afterwards. So Thank you Thank you Christina is is absolutely true. Rome was not built in a day and was built brick by brick, but it was broken down Does anyone have questions for We have 15 minutes switch time that means that you can go downstairs or you can stay here where it's Nicer and nicer people We are going to have Jack from check from CERN Speaking to us in 15 minutes that will be a 15 passport. Thank you Can we test can we test one laptop, please?


That could increase their annual revenue in 5% if they started charging resale royalties. That's a quarter of a billion dollars that is transacted on one skew, one vendor. So we estimate that the resale market could actually bring 20 to 30% additional revenue for brands. But if you end the paper certificate and move it into a digital NFT, that's the authenticity problems over. Because even if you attach the NFT to a fake, then the real one has no sales value. So the scarcity is there. You're actually defining scarcity for the first time in the fashion market, which is something that has not been done successfully over the years.


So, so welcome to today's session on Corus Monnets. I think to some extent, this session today is meant to give a job. The two course sessions we did this way up in the season of Monnets. So, there was no session set up very compact. And what we have is the real thing today. First of all, painting, what is the current state of play regarding movement across the Paris area and country communities in this season. We've talked a lot about this today. What are the emerging trends in terms of finance in the region? What are we seeing? And also, what is the framework of governments and public sector, very close to engagement on finance in Corus and red? So, the morning will be speaking to basically the four sessions. The first session which my son is going to talk to, talk with three of us, he's making a collaboration with the process actors. We'll have a short break and then we'll be looking at what is like the uses of innovative finance tools for particular Corus. We'll then be looking at the next section, what are some of the pathways in which we can scale up the public sector in terms of engagement in Corus. And then finally, we'll have some conclusions in the last 30 minutes or so. So, one of the things that's very important is we've asked them to be very short and sharp in their presentations so that we can then have precious audience and the moderator for the session will actually come off the stage and walk around the room to try to get you to engagement. So, please, I do encourage you very much. This is meant to be specifically for the table. Interactive session, if you've got ideas or thoughts, please don't hesitate to come forward. So, on that basis, I'll hand over to Marcel to kick off the first session. Thank you very much. And welcome everybody. Good morning, ladies and gentlemen. So, we're going to have a look at who the key players are in the private sector that invest in Red Plus and what actually drives them to invest in the forest landscapes in Red Plus projects. We're also going to look at the experience of the private sector and what kind of risks they are looking at, what kind of risks they're facing and the kind of returns that they are looking for. So, I'm not going to give the presentation on myself, but we've got four very distinguished panel members here from the government Ibuami and from the investors, you can say, Bicam and Juan and I have Ida Greenberry from the round table from the private sector round table and the Asia Pacific Rainforest partnership. So, I think I can start with Bicam to kick the session off with a brief presentation dealing with these two questions. One, key private sector actors in Red Plus what drives them, what are the experiences today and what are the returns that they are looking for and the risks that they are facing. Hi, I'm Ibuami Ibuami. My name is Bicram Chowdhury. I'm here on this panel as I guess top of my experience as a private investor.  So my investment experience, you know, extends kind of all the way from all the professional investors what we in the business call real money all the way down to, you know, private individuals and family officers who tend to be, you know, private banking clients who also have 14 basic investment.  The good news is that, you know, there is still a lot of, I think, a lot of scope or potential for, you know, red glass or even forest conservation to be an investable asset class. And I guess the bad news, if you were, is that there are a number of assets in the impact investing space that compete for that investment goal of theme-based investing. So what, and when I look at this space, I, you know, again, first of all, putting on my large institution hat, you know, having been in a financial institution for the best part of my career, one of the, you know, one of the striking aspects of this, for example, this conference and, you know, a number of forums that people speak about conservation and conservation finance or green finance is, one, the lack of, I would say, private sector participation, which I think was pointed out yesterday by a number of people. And secondly, and to me, the more glaring commission is the lack of financial institution participation. And in other words, the banks, you know, and obviously there are a number of, you know, what have gone national, you know, investors, but in terms of the financial institutions that typically would invest, for example, in an asset class to bring it to scale, you know, finance, debt, finance, you know, mezzanine, and sometimes in finance equity. Today, that dialogue, you know, is definitely lacking. And I think there is a strong need at the policy level to work together, you know, especially at the national level, to work together with the leagues in the banking supervision space at the respective jurisdictional levels. You know, banks are, you know, banks and financial institutions, for those of you who know it, it's taking the obvious. They are highly regulated institutions. And the regulatory framework that, you know, encompasses banks and employees to a certain extent drives their commercial choices. So there's an interesting initiative on, for example, the European Union to be able to provide guidelines around green finance and the number of the, you know, aspects that they're talking about are as simple as providing capital concessions for investing in conservation projects and also asking banks to recognize environmental liabilities for lending to non-environmental projects, the concept of environmental liability, right? These are still, you know, the working group rates. But, you know, this is an overview. You know, I think there are a number of things to be done here. And again, you know, to those who are in the policy-making, you know, areas of the, you know, of the space, I'd really urge you to form coalitions specifically with, you know, for example, your Ministry of Finance and your banking regulators in the respective jurisdictions to understand how you can move it forward in tandem, you know, with me, financial partners. Thank you very much. Thank you. Thank you very much. It's a positive hike to who I am. That's from my other investment side, the public investment side, the GCF. What is your take on this? Who are actually the key actors who you would be servicing as GCF? How does the private sector come into that? And how are you using GCF only, actually, to de-risk their enterprise? Thank you very much. I'm Marcel for the introduction and thank you everyone for being here in this session. So the GCF is in an early stage. Actually, this presentation is for the later session. We will have a dance. So I will not talk much about this presentation, but in general, GCF is still in an early stage of engaging with private sector in the policy-making sector. We have some already approved projects that are working mostly in the country, but private sector, and with the aim of reducing emissions from deforestation, is still an ongoing work that we have with some entities that are our partners, our great entities to the party. So what we are doing internally is developing some potential guidance that's requested by the GCF board. In the next, the following board meeting in October, there will be a board document on how the GCF could engage with the private sector. This document, what we did is to analyze who are the actors that we're talking to. When we talk about private sector, we need to start identifying who they are. If we look at the value chain in the forest management sector, we have producers, buyers, financial institutions, service buyers. They are all private sector. If we want to engage with the private sector, we have different kinds of instruments and and extractors that will be suitable for these different actors. For example, if we talk to a farmer, there needs to be as a private sector actor, we need to, as a GCF, we can support them in order to build their capacities to engage in larger deals, like other associations, for example. If we want to engage in a value chain of coffee, it's for having an impact that we're expecting to have as a GCF. We need to work with an association of farmers working with coffee and not with the individual themselves directly. So, in all this change, we are going to develop different instruments for when we do the private sector now. When we're already starting to talk with some investors, and there is indeed to note very well red glasses is still something that has been already for many years under discussion but at the scale that is needed is just starting in the recent years. We want to have red glasses at the scale of the national and subnational levels that trigger this pilot shift that we call in the GCF. We need to have significant investment by the sector. But if we talk only about red glasses, the experience that we have with the project level and what happened was that there was no demand for what red glasses was producing. So there was no incentive for the sector. But we're discussing now our potential structures on how to reduce those market risks that are perceived at the moment for the private sector if they want to engage in red glasses. Now, red glasses is not only about the credits or emission reduction that are generated. It's also about the changes of the commodities that in principle are the drivers of forestation but how do we turn them into zero deforestation by the change. And that's an area that we're also trying to work in more detail this year. How we need to understand from the private sector what actually prevents them to have zero deforestation by the change. Where are the vital things? Many companies have ledges of deforestation by the change but according to recent reports they are not going to meet their commitments by 2020 as they were promising in the New York Regional Forest for some reason. But what actually is happening? Why is not that materialized? So there are many additional elements that are not purely private sector reducing risk but it's also in every condition the need to happen in the future. I'm very happy to discuss the deforestation and have made a presentation on that and it will be great to answer any of your questions. Thank you very much. Thank you very much Juan. So from the investment side we now have a picture of actually a lack of involvement of private sector with the lack of financial institutions that are involved in the deforestation they need to be engaged and from the public finance side there is a need to identify the need to produce into collaborators for deforestation maybe either investment in restoration how do you do that how do you incentivize that? I think there is a goal here for the private sector to take initiative itself as a key role for government to identify the reason what would drive private sector to invest in the most proactive engagement in this what do they need to help them actually to do this in such a way that it also provides a return and what kind of returns are they that's why I think it's a perfect introduction I have some presentations to present while talking for 5 minutes and I don't like putting my back on the presentation can you play the presentation please thank you so my name is Aida Greenberg I'm working as a chair in the private sector role to ensure I should also be ready for deforestation for 2 years let's just start by presenting some facts I think you haven't touched this before and as you can see from the screen the cost let's talk about the cost of deforestation in the tropics it's a forestry and agricultural industry for at least two-thirds of the deforestation globally and 447 global companies made public comments to address the treatment of deforestation other questions about whether they can complete their commitment or implement it probably not global grid has a destination for agriculture and forestry it's about 24% and tropical deforestation accounts for about 15% of the world's global warming pollution meanwhile according to Woodsville research 500 million hectares of tropical forest if we are to meet Paris agreement of staying under 1.5 degrees so these are the facts of their ground information next slide and let's see what the private sector is doing the last 8 years we have seen a transformation in the global commodity supply chain towards breakable deforestation there's now a broad global agreement between companies research institutions and environmental NGOs governments and forest dependent communities that tropical deforestation need to be stopped for many years they have been committed to the protection of high conservation forest as ACVs however secondary forests that provide essential carbon storage have been done by deforestation forest with basically what deforestation means were not protected back then in 2011 so next a forest conservation initiative was born in 2011 the initiative many river and sky carbon stock prices created a global methodology for land use planning that is to distinguish forest from its areas for protection from degraded lands with low carbon and biodiversity values that may be developed if you go to the next slide so why the approach, why the high carbon stock approach first is practical methodology based on later science in my previous role as the managing director of the Asian public and group I've seen with my own eyes how practical cause can be prevented on the ground and second is now an integrated process is an integrated process between high carbon stock approach and high conservation value protection and implementation of equity so instead of doing multi-assessments in a concessions or in ecosystem restoration areas whatever you only just do one assessment to ensure that biodiversity and high carbon stock and community rights are protected and thirdly is adaptive is evolving expanding horizon is expanding to different communities and different regions right now and also is scientifically always evolving this is the latest science in forest conservation but most importantly it has multi-stakeholder governance and oversight of the methodology the members of the high carbon stock are consisting of conservation organizations scientists producers technical experts so the decisions that we reach inside the initiative is based on consensus level from this multi-stakeholders next please so the methodology to implement zero deforestation is already there but how much does it actually cost so based on my own experience and several benchmark studies in the tropics forest conservation costs about 20 to 100 dollars depending on the region and level of threats and for a full restoration is about 1,000 to 2,000 dollars depending on the soil condition this excludes the opportunity cost and currently the responsibility for conserving and protecting these areas is largely within the producer country and the associated organizations and communities we must also remember that forest conservation does not recognize boundaries that means that each concessions can just implement this methodology themselves without looking at the full landscape and this is thankfully supported by the government of Indonesia with the issuance of the DG regulations on high conservation values areas of high carbon stock price that was issued in 2017 so the instrument by the government thankfully is already there to help us to achieve that and what is missing on this list is basically the consumer good manufacturers branch, retailers and buyers what they do to conserve forest what have they done probably just 1 or 2 million dollars as part of the CSR is typically not enough to conserve forest in the tropics where a lot of these brands and good manufacturers and brands, retailers actually make a huge profit in the last century from the tropics next slide please forest conservation and finance require enabling conditions and necessary instruments we are very, very happy that the government has issued government regulation number 46 basically a government on economic instruments in environmental matters where national balance sheet for natural capital and also in environmental funding mechanism have been recognised and also part of the regulations as a next step to move forward to achieve our goal next slide but we must also not forget the fiscal transfer mechanism which some say has been proven positive in India it receives 1% of their forest cover and Indonesia also want to have to look at the same thing next slide please in December 2017 Indonesia government and Ministry of Finance has issued ministry regulations number 230 where it regulates implementation of fiscal transfer it's still being rolled out so the implementation is not yet consistent throughout the nation probably this is where we need to help the government to implement this properly in summary we need the following partners to collaborate in forest conservation and finance with clear roles and responsibilities from private centres we have two types producers and users producers they need to protect their own forest and address the legacy of deforestation in the past in their own concessions for users they need to start addressing their deforestation footprint in the past and also support forest conservation in their supply chain and the surrounding landscapes it is very important that we need an uncomfortable zero deforestation or no deforestation some people call it no deforestation no exploitation platform to link between supply chain to the forest through direct intervention at a community level and to collaborate with partners in landscape to achieve a nested ecosystem approach the key principles of this platform that probably need to be established because I have not yet seen any platform exists until now is basically it need to be credible artistic order three of confidence of interest achieving performance and results on the ground equitable sharing of forest and support the government commitments to deforestation reduction and NEC so it is very important to declare equalcy with government as well the government of course has established their instrument to allocate a national budget for physical transfer for example and then of course by working with Fagan for ecosystem services after all forest conservation is a good responsibility so this shows that there is a lot of a lot of private sector interact to engage they are already platform established to engage to set joint targets there is a lot of collaboration between producers with the lack of involvement of downstream industry but still the results so far is only 50% of industry is engaged the other 50% continue the business as usual and that means the continuation of deforestation with in a more level playing field so where these industries might actually get more profits than the industry that is trying to do responsible business so it clearly is a role for another key stakeholder in the government I would like to ask Ibrahim to give us an overview of how the government sees this playing field of industry and what are you doing as government to incentivize the actors and to de-risk the entrepreneurs that are daring enough to take a role in achieving the policy of the government so thank you and first of all I would like to thank the organizer for having me here at this very important timely important sessions as a timely important because the regime of finance would play a very significant role and should play a more active role in responding to the current environmental challenges I have three slides to help me in describing the role of government to change this context in modifying various stakeholders in moving toward the sustainable financing to the environment may I have my presentation please just not my presentations okay can I have the right one please because I only have one I don't understand the false one by the way Ibu Aida has mentioned the government regulation number 46 2017 indeed the government regulation is one of the initiative a policy initiative has been done by government of Indonesia by the way my name is Laxmi and I'll be my nickname so please call me Laxmi we start our environmental protection and management act back in 1982 and we renewed the act on 1987 but again in 2009 we have a new act on environmental protection and management but based on the past experiences there was not only a lack of awareness that facing by all the stakeholders indeed there is also lack of other instrument not only technical regulation but also economic instrument that's why back 10 years ago we thought that it is a must for government of Indonesia to draw a scheme or a complete picture of how government should incentivize and push the motivation all stakeholders so this is the offer view if you can see but basically we would like to push or to move all the many resources towards sustainable financing for the environment including the forest conservation and there are three big groups if I would explain to you the first group is this one is the group of well the orange one orange one is the group of set of incentive mechanisms set by the government the green one government need to also assist or to to to drive the creation of market towards sustainable financing and the third one it is also important how to have a better management a good governance and all this kind of economic instrument and there are these three groups are continue inspiring our government government officer to really put this idea into the regulation and then only last year after eight years of preparing the draft we finally come up with the new regulation, government regulation number 40 in year 2015 and we categorize the economic instrument call it economic instrument initially we would like to call it as market based instrument but then the government agreed to use economic instrument for this set of instrument so there are three categories instrument for planning basically to as corrective actions to internalize the externalities because we forgotten the externalities for decades so we need to internalize the externalities so it's kind of a corrective action to our development planning process and second groups instrument for financing in it financing is very important everybody talking about financing nowadays yesterday we heard how to finance and this is today we are talking about again finance, how to finance the forest protections activities and the third one is incentive so basically this instrument are not really only providing money or providing finance or making them easier way to do the business but the more important thing is to change the behaviors behavior of all the stakeholders we need to have a new type of behavior towards our development process so the behavior that lowering the greenhouse gas emission behavior to lowering the loss of biodiversity behavior to base our plan based on the carrying capacity of the ecosystem that kind of changing behavior that we would like to have by implementing this instrument so as a widely practice I could put those instrument in this charge so these regulations well you may argue that this regulation is too ambitious but honestly we don't have any other choice other than ambitious because we've been like so many things for decades so it is a time to collect our behavior to collect our policy to correct our way to do the business so we try to put all the the needs into a frame and the government regulation 48 2017 is really a regulatory framework this government regulation cannot be implemented as a single regulation it has to be followed by a sense of regulation standard and many many what you call it procedures guidelines and that kind of things and I could share with you that although it's only it's still less a year in our age but because we prepare this government regulation since back eight years ago so all the some guidelines then regulations are already there for example the OJCA financial services regulatory authority has been launched two important initiative policy one is on the sustainable financing second one is regarding the green board it's because of this regulatory framework and to better the financial financing initiative the one the economic for the ecosystems the government of Indonesia is not preparing a draft of presidential decree on establishing the MPU by the layanan umu it's the public service unit owned by government to manage the environmental farm more flexible include various of schemes various of type of instrument on environmental financing so I think by having said that I just like to underline that government of Indonesia and I believe other government as well it's a belief that we need to have all stakeholders on board to do toward the sustainable development especially in term of the forest conservation but as a policymaker government could play a very significant role in set the standard set the regulation to have everybody all the stakeholders will likely to to have in hand in doing a good effort toward the sustainable development policy thank you I think that's all my my share to this important discussion thank you very much frameworks put in place already by government now that would facilitate actually to for the instrument to be but at the moment it's still frameworks it's largely theory if I maybe with easiest how do we get it to actually operate what will it take rather than going back now myself with this question to the panel members I would like to open up the floor to you guys I'm sure you're very impatient you've seen that 50% of the industry is already active wanting to engage in this field and they're already engaging in this field but they need support they would need to be taken by government what are the steps that should be taken by private sector to actually take these frameworks that would be the steps by the government to take that forward, interact with our action I think that's what we're going to look at throughout the day but maybe we can get a feel for the ideas that are living in the crowd in the audience so who would question or make a comment in this regard yes please I'll start with first and I'll walk around I'm a private sector businessman I have 10 million dollars to invest in forests and I want my money to go towards maximum conservation of the forest tomorrow I want return of between 5 and 20% on my money I've reached over 10 years what do I do I'll take a few more questions before we start answering I can see I only see men I go from gender balance here but unfortunately yes because we never talked about technology specifically and I'm wondering where the costs are so if the funding is a generic issue of operation on the field and how technology is still an obstacle like the cost processes in this case thank you I have two questions oh yeah I might get this one from under us I have two questions actually the first is rather than giving more opportunities for private sector in its natural resource explorations we have to regulate that don't come directly because when you come directly to the field it will produce conflict with the local communities it is better to make a fair trade and give them to work more on any field rather than work directly on the field and then the second question is as our experience that when we have new regulation we take time to visualize the current regulation and we need no operational regulation that's how long we need time to get the real benefit from the government regulation number 46 2017 thank you if you have one more question in fact that most of the land are public lands or public purposes actually related to the private sector what kind of the equity the private sector is looking for do you need to privatize the whole public land to track your investment as it is from conservation direction let's answer these four questions ladies first please would you like to start so government first there's only one specific question to leave but allow me to also answer the open questions regarding analogy I'm sorry I only focus my presentation on fiscal and financial instrument because we're according to the TOR organization yes technology is still a challenge especially in Indonesia especially for the small and medium micro small and medium enterprises what government do in dealing with these challenges is we develop a set of another incentive for example we we develop the information full of technology information so then the SME could easily find a proper technology that may be a fit to their activities we also develop so-called environmental technology verification so for example this is very incentive for the technology developer they have a new technology and they they simply have to go to the certification body for example they can go to the office and then ask to facilitate they will explain their technology it's kind of their self declare so we develop the self declare environmental technology in to my knowledge other colleagues and other ministries for example, they also kind of incentive to lower the cost of technology again it is for the small and medium enterprises because the government the government resource is always not limited so we focus our effort to incentivize the micro small and medium enterprises the question regarding when likely there will be benefit for regulation number 46 2017 basically indeed it is a new regulation but if you if you go into the more various instrument there are a lot of instrument that has been there in the film for example the green GDP done by the local government payment for ecological services environmental they are already there there are only a limited new instrument promote by this regulation but other for other existing regulation this government regulation is basically to speed up and to improve the ongoing one so far we already implement the government regulation as it is the launch but only two instrument that takes according to the demand we only have two years to develop what is environmental performance deposit fund and we need to harmonize because nowadays it is of energy and mining resources already have that regulation other things already have that regulation we only have two years to do so but for the other instrument you may find the guidelines already you may find the information you may find the case of best practices of the instrument is already there so I believe and I'm sure that this government regulation is already ready before going to Buayda we have a question somebody was very impatient sitting there on 10 million dollars and not knowing how to actually get this operation life here in Indonesia so what the question is actually for what is the advice for this person what could he do with this 10 million in the current policy environment we don't have yet if the institution is already there you can put your money into that institution but I would rather suggest you to go to because as I mentioned about the initiative done by the OJGAU, Autoritas Jazakowana financial services authority they already have two innovative policy one is sustainable financing and the other one in green borne as we got to the sustainable financing since two years ago they already have the first bank they call it first movers that includes eight banks so you can go into the banks enjoy with the first movers of the OJGAU to invest your money apart of that you may also go to the we call it Klonkok Philanthropy Indonesia Indonesia Philanthropy Association go to that association and invest your money and they will put your money in proper ways who are what would the US VCF say to such an investor can you help them? to return the services that have monetized value are bases when you have different conserving forests we reduce the cost of drinking water to monetize services from forests in that way it's easy in some countries also under services there is a more traditional way of investing in conserving forests where you get returns now what we are looking into in some countries we have one proposal going to a group project where investing purely in conservation may not be as profitable as other potential investments you can get if you have an expected rate of return that is higher you may not invest purely in conservation so what we had in one project was a basket of different investments because conservation wasn't part of it so this is a fund that has created to invest in commodities that will deliver importation free products but also in conservation investments a mix of different investments will give the expected return or at least part of the investment but investing purely in conservation may not be sufficient unless there is a market that is willing to pay for all those services that the forests are providing again Karaman is something that we would discuss later in the course of the conference Thank you Gohan I go to Bikram because you have a whole crowd of investors behind you so are there best practices or ideas that you can put forward? Established or don't price in externally then unfortunately from an investment perspective a very theme based or cost based where investors trade off within their own risk return on a cost that suits them or that isn't that a piece of them versus the financial return that you are in and today in conservation I mean if you look at it as an asset not secured as the President said the return simply won't stack up unless in reality there is a variety of factors and then the absence of that market clearing mechanism what you have to do is you have to unfortunately be a bit of a pioneer and say that Thank you very much Bikram There are also a few options the willingness to take risks that maybe are beyond the normal kind of risks for entrepreneurs but then people either we can there is already a lot of activities that are meeting a lot of investment being made the NDB is a very active platform you are looking at various instruments to actually integrate conservation in business what would be your opinion perhaps a that's not all focus only on 10 million dollar question or what kind of policies would you like to see come up first to operationalize the NDB to help the industry to move forward I forgot to say thank you for the organisers people for arranging a gender balance for the for the for the for the for the private sector's point of view our priority right now is not about making money from cross-conservation is not basically insuring sustainable supply chain so that's probably producers and users point of view how can we concern for us as well infesting it in the forest to ensure that our supply chain will be sustainable the palm oil, the palm wood, the cofoil a lot of rubber and everything else will be sustainable so I'm not going to touch my attention at all and regarding the general questions about funding a questionable operation and implementation from the private sector's side we split the implementation and the operations into two the private sector's side and the community in the in the producers' country we split into two the producers and the community institutions and also experts I don't know if you think this is good on the monitoring side there's still such technology we have right now that can actually be 100% bulletproof so again ground clarification is always needed so the implementation team have to be strong enough and also we can also use the NGOs to to help monitor what's going on on the ground we get and what we need from the private sector in Marshall the instruments are really there thank you very much for the government we need more supporting regulations from other ministry supporting regulations from other ministry of finance, ministry of agriculture and others and also the enforcement side so these regulations need to be enforced to be implemented by stakeholders and producers okay so thank you very much our panel members I think we've come to the end of this session obviously we won't be able to answer all questions with all the issues but I hope this has given you a bit of an overview of what is out there in terms of questions in terms of issues the private sector is looking at issues and solutions that are being put in place by the government the frameworks that have been put in place both in the private sector side as well as the government side we're going to look further into this in the next sessions today so I hope you all stay and hope more people will join even going for a break now so I think we're eating already five minutes into the free trial I will keep it at this thank you very much for your attention and look forward to seeing you later


lesson 358. No call to God can be unheard nor left unanswered and of this I can be sure. His answer is the one I really want. You who remember what I really am alone remember what I really want. You speak for God and so you speak for me and what you give me comes from God Himself. Your voice my Father then is mine as well and all I want is what you offer me in just the form you choose that it be mine. Let me remember all I do not know and let my voice be still remembering but let me not forget your love and care keeping your promise to your son in my awareness always. Let me not forget myself is nothing but myself is all. Amen.