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BIODIVERSITY FINANCE AN APPROACH TO MOBILIZING FINANCIAL RESOURCES - PowerPoint PPT Presentation

TRANSFORMING BIODIVERSITY FINANCE AN APPROACH TO MOBILIZING FINANCIAL RESOURCES TO IMPLEMENT NBSAPS The Future We Want: Stark Choices Global poverty Scarcity and Natural world on and inequity vulnerability brink of collapse Abundance


  1. 1a) What are the key practices and Steps in in mobil ilizin ing resources policies that are driving the loss of REVIEW BROADER CONTEXT biodiversity? 1a) Identify drivers of loss 1b) Assess sectoral institutions and actors 1c) Review biodiversity expenditures ASSESS COSTS AND GAP 2a) Assess costs of strategies and actions 2b) Calculate the financial gap MOBILIZE FINANCIAL RESOURCES 3a) Identify finance actors and mechanisms 3b) Develop resource mobilization plan

  2. DRIVERS OF CHANGE: KEY QUESTIONS 1. What are the most important drivers of both negative and positive trends in biodiversity and ecosystems? 2. What are the most important practices and policies that are driving these trends? 3. What are the underlying factors that contribute to these practices and policies?

  3. HOW TO ARTICULATE DRIVERS OF CHANGE 1. Use a clear, concise and complete sentence 2. Include a description of ‘what’, ‘how’ and ‘why’ change is occurring o Refer to specific changes in status and trends in biodiversity o Refer to specific practices and pressures o Refer to specific underlying causes, forces, policies 3. Ensure that the sentence is ‘actionable’ -- could be addressed by a strategy

  4. HOW TO ARTICULATE DRIVERS OF CHANGE GORILLA POACHING : Mountain gorilla populations are rapidly declining because of poaching with snares, which is driven by inadequate capacity and insufficient political will for enforcement, by high national and international market demand, and by insufficient community incentives for conservation.

  5. HOW TO ARTICULATE DRIVERS OF CHANGE WATER POLLUTION : Populations of fish are rapidly declining because of agricultural runoff of fertilizers and pesticides, driven by low-cost subsidized products, government policies that promote the over-use of chemical fertilizers and pesticides, and insufficient riparian buffer zones.

  6. EXAMPLES OF SPECIFIC POLICY AND PRACTICE 1a DRIVERS OF BIODIVERSITY LOSS Mainstreaming and sustainable use: • Agricultural frontier is expanding into sensitive ecosystems because of weak land use planning (Argentina) • Non-selective fisheries alters food chains and ecosystems because existing fishing policies are poorly enforced (Costa Rica) • Large-scale mining is promoted in pristine, sensitive ecosystems because of powerful mining interests and weaker environmental interests (Ecuador) • Mining affects water resources because full environmental impact assessments are not conducted or are incomplete (Peru)

  7. EXAMPLES OF SPECIFIC POLICY AND PRACTICE 1a DRIVERS OF BIODIVERSITY LOSS Protection: • Protected areas are isolated, with few connectivity corridors because of social pressures for land (India); • Invasive species are spreading throughout protected areas because staff do not have resources to prevent their spread (Mexico); • The protected area network does not adequately represent the biodiversity in the country because of competing interests (US); • Poaching and illegal trade threaten the viability of elephant populations because of market forces (many African countries) • The protected area network is not yet designed for climate resilience because of inadequate capacity (Nepal).

  8. REFLECTION POINT

  9. Enabling factors • Political will, leadership CHALLENGE • Lobbying by interest • A government lacks political will groups to mainstream biodiversity; does not place biodiversity high • Public media, perception on agenda • Good governance • Inter-sectoral OPPORTUNITY coordination • A new government is elected • Public participation • A politician commits to • Information about values ambitious goals at a high-level meeting • Utilization of funding

  10. Enabling factors • Political will, leadership CHALLENGE • Lobbying by interest • Powerful interests (e.g., mining) groups do not acknowledge the value • of biodiversity, and lobby Public media, perception against it • Good governance • Inter-sectoral OPPORTUNITY coordination • Powerful interests (e.g., • Public participation tourism) recognize and promote the value of biodiversity to their • Information about values industry • Utilization of funding

  11. Enabling factors • Political will, leadership CHALLENGE • Lobbying by interest • The public is unaware of groups biodiversity issues, and • biodiversity is not covered by Public media, perception local media • Good governance • Inter-sectoral OPPORTUNITY coordination • The public understands key • Public participation biodiversity issues, and is supportive of biodiversity • Information about values conservation • Utilization of funding

  12. Enabling factors • Political will, leadership CHALLENGE • Lobbying by interest • Corruption within government groups agencies and law enforcement • prevents effective decisions Public media, perception about biodiversity • Good governance • Inter-sectoral OPPORTUNITY coordination • The government routinely • Public participation upholds biodiversity-related laws and policies , and is • Information about values transparent about the costs and • Utilization of funding tradeoffs of decisions

  13. Enabling factors • Political will, leadership CHALLENGE • Lobbying by interest • There is competition between groups sectors (e.g., mining vs. forestry • vs. biodiversity), and little or no Public media, perception coordination • Good governance • Inter-sectoral OPPORTUNITY coordination • There is an effective multi- • Public participation sectoral working group in place, and sectors coordinate • Information about values information well • Utilization of funding

  14. Enabling factors • Political will, leadership CHALLENGE • Lobbying by interest • There are no effective means of groups engaging the public in key • biodiversity decisions Public media, perception • Good governance • Inter-sectoral OPPORTUNITY coordination • Public decision-making • Public participation procedures and mechanisms are developed and fully used • Information about values • Utilization of funding

  15. Enabling factors • Political will, leadership CHALLENGE • Lobbying by interest • The government and public are groups unaware of the true value of • biodiversity to their societal Public media, perception goals and agenda • Good governance • Inter-sectoral OPPORTUNITY coordination • There is clear and compelling • Public participation information about the value of biodiversity, and the • Information about values government is aware of these • Utilization of funding values

  16. Enabling factors • Political will, leadership CHALLENGE • Lobbying by interest • The government does not groups strategically and fully take • advantage of potential funding Public media, perception • Good governance • Inter-sectoral OPPORTUNITY coordination • Utilization of funding is fully • Public participation aligned with national priorities for biodiversity and • Information about values mainstreaming • Utilization of funding

  17. REFLECTION POINT

  18. INSTITUTIONAL REVIEW

  19. 1b) What are the key institutions, Steps in in mobil ilizin ing resources agencies and organizations, and REVIEW BROADER CONTEXT what is their relation to the status 1a) Identify sectoral drivers of loss quo and to the new state? 1b) Assess institutions and actors 1c) Review biodiversity expenditures ASSESS COSTS AND GAP 2a) Assess costs of strategies and actions Ministry of 2f) Calculate the financial gap Agriculture MOBILIZE FINANCIAL RESOURCES Chemical Agricultural 3a) Identify finance actors and mechanisms companies associations 3b) Develop resource mobilization plan

  20. INSTITUTIONAL REVIEW: KEY QUESTIONS 1. Which actors are responsible for the existing status quo, and which will likely be responsible under the new projected state? 2. Which actors and institutions currently benefit from , and pay the costs of , biodiversity in the status quo, and which will likely benefit from, and pay the costs of, the new projected state? 3. What role do key finance actors have in setting budget priorities , determining costs , accessing and disbursing resources and spending and reporting on funds ? 4. What are the existing finance capacities and capacity needs of key finance actors under the status quo and under the new projected state?

  21. IDENTIFYING KEY ACTORS AND INSTITUTIONS 2. Those who already do, or 1. Those who are or might be might in the future, benefit responsible for, or dependent from biodiversity under the upon, drivers of change status quo or from the projected new scenario 3. Those who already do, or 4. Those who have a key role in who might in the future, pay for finance, either under the status biodiversity under the status quo, or under the projected quo or in the projected new new scenario scenario

  22. IDENTIFYING KEY ACTORS – FROM DRIVERS Gorilla poaching : key actors include poachers, communities, protected area officials, police, national and international NGOs, each stage along the supply chain, trade officials, treasury, Ministry of Wildlife Water pollution : key actors include chemical companies, Ministry of Agriculture, Ministry of Finance, lobbyists, Department of Health and Sanitation, farmers and landowners, Department of Forests, Department of Fisheries

  23. MAP INSTITUTIONAL ARRANGEMENTS

  24. WHY IT’S IMPORTANT TO IDENTIFY WHO BENEFITS AND PAYS POLLUTER PAYS BENEFICIARY PAYS Direct Ecosystem Fees Ecosystem Services Markets ECOSYSTEM Beneficiary pays for ecosystem Polluter pays for damages to SERVICES services that flow to them ecosystems by buying an offset e.g. payments for watershed e.g. water quality trading, forest services carbon Direct Biodiversity Fees Source: GCP 2012 BIODIVERSITY Biodiversity Markets Beneficiary pays for access to Polluter pays for damages to biodiversity biodiversity by buying an offset e.g. ecotourism fees, hunting e.g. fisheries quota trading; licenses biodiversity offset

  25. CHECKLIST OF INSTITUTIONS AND ACTORS Public actors: Market actors: • Central government & ministries • Businesses and industry • District/local government • Trade associations • Governmental institutions • Lobby associations • Public research institutions & • Trade unions • Zoos, gene banks academia Private sector actors: Donor actors: • Households • Multilateral institutions (e.g. • Private foundations WorldBank, UNDP) • Private communities • Bilateral donors • Non-governmental organizations • Private foundations

  26. REFLECTION POINT

  27. EXPENDITURE REVIEW: ESTABLISHING A BASELINE

  28. 1c) What is the scope, amount and Steps in in mobil ilizin ing resources effectiveness of biodiversity REVIEW BROADER CONTEXT expenditures for each key finance 1a) Identify sectoral drivers of loss actor? 1b) Assess institutions and actors 1c) Review biodiversity expenditures ASSESS COSTS AND GAP 2a) Assess costs of strategies and actions Ministry of 2f) Calculate the financial gap Agriculture MOBILIZE FINANCIAL RESOURCES Chemical Agricultural 3a) Identify finance actors and mechanisms companies associations 3b) Develop resource mobilization plan

  29. DETERMINE THE FINANCIAL GAP RESOURCES Financial gap TIME

  30. Baseline expenditures for PAs in Belize Projected BAU funding

  31. Biodiversity expenditure review A compilation of all public and private expenditures on biodiversity-related activities

  32. Steps in an expenditure review Step 1 : Identify relevant finance actors Tourism Forestry Agriculture Fisheries Protected areas Water

  33. Steps in an expenditure review Step 2 : Extract budgetary data from relevant finance actors, including ministries, agencies, entities

  34. Steps in an expenditure review Step 3 : Develop a single coherent system for coding and processing all data

  35. Steps in an expenditure review Step 4 : Analyze all relevant expenditures from the past, and project into the future expenditures past projected future

  36. Expenditure review: 3 key issues Relevancy : Some expenditures are more relevant to biodiversity than others Example : Protected area management has high relevancy to biodiversity; water quality control efforts might have only low relevancy

  37. Expenditure review: 3 key issues Effectiveness : Some expenditures are more effective in conserving biodiversity than others Example : Tree planting efforts that fail

  38. Expenditure review: 3 key issues Negative expenditures : Some expenditures harm biodiversity Example : Subsidies that promote excessive fertilizer use

  39. Using the Aichi Biodiversity Targets to report expenditures Protected Understand Sustainable Implement areas values fisheries Nagoya Prot. Prevent Mainstream Manage extinctions biodiversity within limits Conserve Revise gene pool NBSAPs Address Reduce incentives pollution Respect and conserve TK Sustainable Reduce Restore Improve production invasive spp. ecosystems knowledge Halve rate of Minimize Mobilize Enhance loss reef loss resources resilience

  40. Aichi Biodiversity Targets – 5 core categories Protection ABS Mainstreaming and use Protected Understand Sustainable Implement areas values fisheries Nagoya Prot. Prevent Mainstream Manage extinctions Enabling biodiversity within limits Conserve Revise gene pool NBSAPs Address Reduce incentives pollution Respect and Restoration conserve TK Sustainable Reduce Restore Improve production invasive spp. ecosystems knowledge Halve rate of Minimize Mobilize Enhance loss reef loss resources resilience

  41. REFLECTION POINT

  42. IDENTIFYING THE COST OF STRATEGIES IN THE NBSAP AND DETERMINING THE GAP

  43. What is the cost of specific Steps in in mobil ilizin ing resources strategies and actions REVIEW BROADER CONTEXT 1a) Identify sectoral drivers of loss Biodiversity 1b) Assess sectoral institutions and actors mainstreaming 1c) Review biodiversity expenditures Protection ASSESS COSTS AND GAP Restoration 2a) Assess costs of strategies and actions 2b) Calculate the financial gap Access and benefits sharing (ABS) MOBILIZE FINANCIAL RESOURCES Enhancing 3a) Identify finance actors and mechanisms 3b) Develop resource mobilization plan implementation

  44. Using the Aichi Biodiversity Targets to identify costs Protected Understand Sustainable Implement areas values fisheries Nagoya Prot. Prevent Mainstream Manage extinctions biodiversity within limits Conserve Revise gene pool NBSAPs Address Reduce incentives pollution Respect and conserve TK Sustainable Reduce Restore Improve production invasive spp. ecosystems knowledge Halve rate of Minimize Mobilize Enhance loss reef loss resources resilience

  45. Aichi Biodiversity Targets – 5 core categories Protection ABS Mainstreaming and use Protected Understand Sustainable Implement areas values fisheries Nagoya Prot. Prevent Mainstream Manage extinctions Enabling biodiversity within limits Conserve Revise gene pool NBSAPs Address Reduce incentives pollution Respect and Restoration conserve TK Sustainable Reduce Restore Improve production invasive spp. ecosystems knowledge Halve rate of Minimize Mobilize Enhance loss reef loss resources resilience

  46. 2a-e 2a-2e FROM STRATEGIES AND ACTIONS TO COSTS Actions Cost elements Cost elements Cost elements Cost elements Actions Sub-strategies Cost elements Cost elements Actions Cost elements Cost elements Actions Cost elements Cost elements Cost elements Cost elements Cost elements Cost elements Actions Actions Sub-strategies Cost elements Cost elements Actions Cost elements Cost elements Strategies Cost elements Cost elements Actions Cost elements Cost elements Cost elements Cost elements Actions Sub-strategies Cost elements Cost elements Actions Cost elements Cost elements Actions Cost elements Cost elements Actions Cost elements Cost elements Cost elements Cost elements Sub-strategies Actions Cost elements Cost elements Actions Cost elements Cost elements Cost elements Cost elements Actions Cost elements Cost elements Actions

  47. Protection strategy : Create connectivity corridor in order to maintain viable populations of wide-ranging species Create connectivity Cost elements High Med Low corridor Staff, materials, travel, Land acquisition 250K 175K 125K land acquisition Inventory and site analysis Staff, materials, travel 125K 100K 75K Alternative livelihood program for communities within Staff, materials, travel 450K 350K 250K corridor

  48. Protection strategy : Create connectivity corridor in order to maintain viable populations of wide-ranging species ACTION : Conduct inventory and site analysis Conduct inventory Cost elements High Med Low Conduct site-level inventory Staff time – 100 days 25,000 15,000 10,000 Travel – 2500 miles 25 camera traps 5000 4000 3000 Conduct GIS inventory Staff time – 10 days 2500 1500 1000 Updated GIS layers 4500 3200 1800 Gather all existing data Staff time – 50 days 12,500 7,500 5,000 Legal analysis of boundaries Legal time – 3 days 1500 1200 900

  49. Mainstreaming strategy : Reduce impacts of intensive agriculture by developing a training program to help farmers transition to low-impact agricultural practices Develop agricultural High Med Low Cost elements training program est. est. est. Develop best practices and Staff, materials, travel 250K 175K 125K guidelines Develop training curriculum Staff, materials, travel 125K 100K 75K on low-impact agriculture Conduct training of trainers Staff, materials, travel 450K 350K 250K

  50. Mainstreaming strategy : Reduce impacts of intensive agriculture by developing a training program ACTION: Conduct training of trainers Conduct training of Cost elements High Med Low trainers Participants and trainers Travel and DSA 60,000 50,000 40,000 Workshop venue Hotel 5000 4000 3000 Printed material Photocopying, binding 5000 4000 3000 Translations Translators, 4 days 2000 1000 800 Translation of materials 10000 8000 3000 Field trip Driver, gas, guide 7200 3600 2200 Follow up webinar Web hosting costs 2500 1200 0

  51. DETERMINE THE FINANCIAL GAP RESOURCES Financial gap TIME

  52. Factoring in uncertainties and estimates gap $ past future

  53. Costing: 3 key issues One-time vs. recurring : Some costs occur once, while others are recurring Example : Tree planting that occurs once vs. a multi-year afforestation process

  54. Costing: 3 key issues Timing : Not all costs will occur at once – they should be scheduled along a timeline Example : Gradual phasing out and eventual elimination of harmful subsidies over time

  55. Costing: 3 key issues Sequencing and prioritizing : Not all strategies and related costs are equal…planners should consider prioritizing and sequencing Example : Urgent restoration for critical ecosystems efforts prioritized over creation of PA in intact area

  56. REFLECTION POINT

  57. INNOVATIVE FINANCE: AN OVERVIEW

  58. BIODIVERSITY FINANCE GAP The High Level Panel on Biodiversity Finance estimated a cost of $150 – 450 billion annually through 2020 to achieve the Aichi Targets. Biodiversity ODA is less than $5 billion annually – less than 5%.

  59. CONSERVATION FINANCE FLOW – $51.8 billion Direct market – $3.8bb Offset markets $3.3bb Green commodities – $6.6bb Biodiversity fees $.3bb Ecosystem service fees $.1bb Allowances auctions $.05bb Debt-for-nature < $.1bb Bio-prospecting $.05bb Philanthropy – $1.7 bb ODA – $6.3 Agricultural subsidy reform – $7.8 Domestic budget allocation – $25.6 Source: GCP 2012

  60. GLOBAL BIODIVERSITY VS. GLOBAL BIODIVERSITY FINANCE Source: GCP 2012

  61. Protected Area Global Cost Estimates 34 bb/yr

  62. Roughly half the costs are funded ~ 17 bb/yr

  63. Protected area costs as a percentage of GDP 20 highest GDP countries = <.0013% Global GDP = <.0005%

  64. Many untapped sources of revenue A surcharge of .007% would fully Tourism = 2.4 trillion fund all protected areas globally

  65. Overseas Aid ODA in context • US$ 1,400 mm PAs Environmental Environmental ODA • US$ 1,400 mm Perverse subsidies and incentives ODA

  66. Financial gap for PAs in Belize • Current funding: $ 9mm • Current finance gap: $19 – 29 mm • Gap: $10-20mm

  67. Financial gap for PAs in Belize Financial gap from projected growth in costs Financial gap Projected BAU funding

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