GLOBAL CONSERVATION FUND:World-Changing Impacts, 2001-2016

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Executive SummaryApril 2017

Ensuring the protection of biologically rich landscapes and seascapes is the greatest

conservation challenge of this century. I am convinced that protecting these places is the most important legacy our generation can

bestow upon our children. —Gordon MooreBoard Member Emeritus

Conservation International

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© Conservation International/photo by Russell A. Mittermeier

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We are excited to share with you this executivesummary of the final report of the Global ConservationFund (GCF), highlighting the world-changing impacts ofthe Gordon and Betty Moore Foundation (GBMF)’svisionary investment.

As in 2001, when the agreement with CI and theFoundation was signed, GCF remains unique in itsfocus on pairing effective conservation managementwith substantial investments in sustainable financing.

Our experience has shown the many benefits ofinvesting over a long-term horizon in the inherentlycomplex world of conservation—and of a “patientcapital” approach that can allow multifaceted projectsto achieve conservation results over time. At CI, webelieve that GCF has been one of the most important,most productive and historically most impactfulprograms in the 30-year history of our organization.

Many GCF investments will continue to gain inimportance, even though our agreement with theGBMF has concluded, as conservation approachestested and proven by GCF continue to see resultsregionally, nationally and globally.

Additionally, more than 25 sustainable financingmechanisms established through GCF leadership willcontribute to core conservation costs and measurableimpacts year after year.

This report attempts to synthesize the impacts,innovations and lessons from GCF’s 15-year history.We look forward to discussing these lessons—and ourexciting future plans—with GBMF and providing anyadditional detail that you would require.

We remain grateful to Gordon and Betty Moore, theMoore family and GBMF staff for their leadership,vision and the inspiring legacy they will bestow uponfuture generations.

Sincerely,

Chris StoneManaging DirectorGlobal Conservation Fund

Russell MittermeierExecutive Vice ChairmanConservation International

OVERVIEW

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GLOBAL PORTFOLIO

Over the course of 15 years, the Global Conservation Fund supported conservation efforts in 45 countries.

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KEY CONSERVATION OUTCOMES

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KEY FINANCIAL OUTCOMES

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Testing the conservation agreements modelIn partnership with CI-Ecuador, the Critical EcosystemPartnership Fund and the Conservation Stewards Program,facilitating one of the first investments to test conservationagreements with three Chachi communities, eventua llyleading to the Socio Bosque initiative in Ecuador, whichprotects 2 million acres and benefits 120,000 people—andis now being replicated across the globe.

Investing in KiribatiIn partnership with the New England Aquarium and CI’sPacific Islands programs, making the first investment toexplore the feasibility of protecting the Phoenix Islands ofKiribati, beginning with a $25,000 planning grant. Withcontinued investment, the Phoenix Islands Protected Areaeventually grew to become one of the largest protectedareas in the world—and served as the inspiration for thePacific Oceanscape, a framework for marine conservationspanning 10% of the Earth’s surface.

Supporting indigenous territoriesIn partnership with CI-Brazil, working to support theprotection of the Kayapó indigenous territories, eventua llyleading to the Fundo Kayapó, which enlisted the BrazilianDevelopment Bank to create a first-of-its-kind fund tosupport the conservation and sustainable developmentwork of the indigenous Kayapó people.

Laying the groundwork in GuyanaIn partnership with CI-Guyana, working to support theestablishment of the Konashen Community-OwnedConservation Area, and eventually leading the design ofwhat would become the Guyana Protected Area Trust. TheTrust has since attracted a large contribution from KfW anda $10 million commitment from the Guyanese government.

Leading the way in MadagascarIn partnership with CI-Madagascar, WWF-Madagascar andkey donor agencies, making the first investment in theMadagascar Biodiversity Fund, which has since grown toover $50 million and is a leading force for conservation inthe country.

Forging corporate partnershipsBuilding off core competencies and experience built underthe GBMF agreement, partnering with the world’s largestmining company, BHP Billiton, to help the company designand execute over $30 million in long-term conservationinvestments in their countries of operation, including what isbelieved to be the largest-ever corporate investment in asingle protected area.

Facilitating world-wide changeGCF has supported many other protected areas andconservation trust funds in Belize, Cambodia, the Caucasusregion, Chile, Colombia, the Democratic Republic of theCongo, Federated States of Micronesia, Fiji, Gabon,Indonesia, Liber ia, Mexico, Mozambique, Palau, Panama,Paraguay, Peru, Philippines, Papua New Guinea, SierraLeone, South Africa and Tanzania.

KEY IMPACTS

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Long-term financing designGCF’s legal team successfully designed efficient long-term funds to optimize good governance, financialperformance and robust administration in a variety ofpolitical, legal, financia l, and protected areamanagement contexts, including support for indigenousand community conserved areas, national protectedarea systems, regional transboundary protected areasystems, important marine sites, and innovativeconservation interventions.

KEY INNOVATIONS

Conservation agreementsGCF was an early and regular funder of theconservation agreements model, which hasdeveloped into a robust program within CI that isnow deployed worldwide. The model has beenincorporated into national policy, as in Ecuador’sSocio Bosque program.

Funds for community-led conservationThe Kayapó Fund is believed to be one of the firstdedicated endowments for financing conservation byindigenous people in Amazonia and perhaps worldwide.The model demonstrated in the Kayapó Fund and severalother GCF projects is the basis for a new ConservationEquity initiative in development by CI and partners.

New conservation model in IndonesiaBy supporting the work of the Royal Society for theProtection of Birds and Birdlife Indonesia, in theHarapan rainforest of central Sumatra, GCF helpedpioneer a new legal instrument for forestconservation—an ecosystem restoration license—that allows organizations to bid for concessionsfrom the Ministry of Forests to use forest forconservation and restoration activities.

Monitoring and evaluationAn innovative monitoring and evaluation frameworkmade GCF one of the few donors able tocomprehensively track protected area investmentson issues from protected area management tosustainable financing.

KEY INNOVATIONS

Business planning approachGCF demonstrates the value of a business planningapproach, which analyzes the financial needs of aprotected area and the potential sources of revenue tocomplement endowment financing and establish afoundation for long-term financial success.

Compensation fund mechanismsCI-financed conservation trust funds in Brazil have beendesigned to strategically and efficiently deploycompensation funds collected from private sectorinvestments (potentially generating millions of dollarsannually for conservation) in the Amapá and Bahia regions.

Conservation finance toolsGCF-developed tools such as a long-term financingtoolkit, a financial management effectivenesstracking tool and protected area permanence indexinfluenced the broader conservation financecommunity and positioned GCF as a thought leaderin the conservation finance sector.

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KEY LESSONS LEARNED

GCF’s unique vision enabled the program to build expertise in the management and financingof conservation areas in diverse contexts. The next two pages summarize key lessons learned(a complete version can be found in the full report).

A patient capital approach and higher risk toleranceenabled success.Projects that required long-term commitments or thatpursued an as-yet unproven approach were the source ofsome of GCF’s most important impacts. From conservationagreements and ecosystem restoration licenses to theplanning of large protected areas that had not evenreached the feasibility study stage, GCF’s mandate andlong-term vision enabled exper imentation with diverseapproaches to conservation and to not only test but a lsocultivate new ideas. GCF’s long-term vision provided acomplementary strategy that enabled steady support forpromising conservation opportunities for—in some cases—a decade or more.

Institution-building creates multiple benefits and canattract significant additional investment.Institutions with improved governance, stakeholderengagement, strategic planning and operational capacitycreate new tools that can be used by governments,conservation organizations and other investors togenerate impacts beyond conservation funding. InSuriname, Madagascar, Guyana, Mozambique, theCaucasus region and other cases, the institutionsdesigned and created by GCF for the benefit of specificprotected areas have since attracted multimillion dollarinvestments and have grown to be key actors in nationaland regional conservation planning.

GCF-designed financing mechanisms proved applicable.The financing mechanisms necessary to implementREDD+, payments for ecosystem services, debt swaps andinnovative conservation financing tools in developmenthave much in common structurally with conservation trustfunds: Although they may have different sources ofrevenue, the challenges of financial modeling andmanagement, sound governance and programmaticdelivery remain the same. The capacities GCF built forconservation trust funds proved valuable and transferableto many other conservation finance approaches used byCI and partners.

© Trond Larsen

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KEY LESSONS LEARNED (CONTNIUED)

Flexible funding enabled agility and opportunistic deal-making to complement a strategic approach.GBMF’s visionary and large-scale financial commitmentcoupled with flexibility allowed GCF to take advantage oftime-sensitive conservation opportunities. Investmentssuch as those in the Valdivian Coastal Reserve, which waspurchased from a forestry company in bankruptcy, maynot have occurred without this level of financialcommitment, flexibility and agility.

GCF’s approach and combination of competenciesproved unique in the marketplace and attractive todonors.GCF’s experience in grant management, technicalassistance, field delivery and long-term conservationfinancing proved to be a unique and attractive package fordonors such as BHP Billiton, Emerson Collective, theMacArthur Foundation and others. Moreover, the uniquefocus on linking protection, effective management andsustainable financing attracted corporate partners seekinglong-term corporate social responsibility or net positiveimpact outcomes and donors concerned with the need fora long-term horizon when partnering with indigenouspeoples and local communities.

Demand for GCF investment far exceeded supply.In the project selection stage of GCF, demand was quitehigh and GCF overcommitted to more projects than couldbe supported with the initial $100 million in capital fromGBMF. Eventually, GCF had to discontinue some projectsthat were not progressing satisfactorily in order to ensurethat sufficient funds would be available to the highestpriority projects. As a result of this experience and otherlessons described here, GCF increased its estimates for theamount of time and financial resources required to fullyimplement a project with the GCF model.

© Conservation International/photo by Lynn Tang

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Grant agreement signed; first investment in Kayapó project

2001

First debt-for-nature swap with U.S. and Peru

2002

GCF leads first investment in Phoenix Islands Protected Area (PIPA)

2003

GCF leads first investment in Madagascar Biodiversity Fund

2005

PIPA established as a 100 million-acre protected areaby the Government of Kiribati

2006

First Indonesia debt-for-nature swap, the largest in history at the time, completed

2009

GCF OVER THE YEARS

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GCF OVER THE YEARS (CONTINUED)

PIPA added as UNESCO World Heritage site

2010

Kayapó Fund created; new alliance with BHP Billitonlaunched; start-up financing loan issued to the Althelia Climate Fund

2011

Conservation Trust Fund launched in Guyana, which evolved into the National Protected Areas Trust in 2014, serving the National Protected Area System

2012

Final evaluation2013

Central CardamomsConservation Endowmentlaunched for Cambodia’s largest conservation program

2015

Liberia Conservation Trust established, bringing the total of endowments created with GBMF funds to 26; CI/GBMF grant agreement completed

2016

2017Negotiations ongoing for launch of Conservation Equity building from GCF experience

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Christopher StoneManaging DirectorGlobal Conservation Fundcstone@conservation.org

Michael McGreeveyDirector, Conservation Investmentsmmcgreevey@conservation.org

Jennifer MorrisChief Operating Officerjmorris@conservation.org

Agustin SilvaniVice PresidentConservation Finance Divisionasilvani@conservation.org

Curan BonhamDirector, Project Monitoring and Evaluationcbonham@conservation.org

Romas GarbaliauskasSenior Legal AdvisorConservation Finance Divisionrgarbaliauskas@conservation.org

Andrew SchatzLegal AdvisorConservation Finance Divisionaschatz@conservation.org

Cassandra KaneCommunications ManagerConservation Finance Divisionckane@conservation.org

Beth SpesiaParalegal and CoordinatorConservation Finance Divisionespesia@conservation.org

© Brooke Hoyer/Flickr Creative Commons

KEY CONSERVATION INTERNATIONAL STAFF

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When I worked with Gordon Moore back in 2001to finalize the creation of the GlobalConservation Fund, I promised that the impactsof his investment would be visible from space.

Fifteen years later, we have achieved that and somuch more. In collaboration with the dedicatedstaff of Conservation International and a globalnetwork of inspiring partners, we have deliveredworld-changing results from the PacificOceanscape to Madagascar to the Amazon.

We should all be thankful for the extraordinaryvision and generosity of the Moore family. In aworld with ever more challenges, I hope theirexample will inspire new commitments to carefor nature and people on our shared planet.

Sincerely,

Peter SeligmannChairman and CEOConservation International

THANK YOU

The Kayapó indigenous territories in Brazil surrounded by deforested areas

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