Three Returns economic, ecosystem, social

Baviaanskloof, South Africa

Baviaanskloof, South Africa 3 years later

SOURCE: El Salvador La Cinquera

This tree grew 130 cm in 6 months

Waterboxx Ecuador Gmelina tree

and 350 cm in 10 months

SOURCE: Aquapro Ecuador

Waterboxx Permaculture

SOURCE: Nature Resilience: ecological restora&on by partners in business for next genera&ons. RSM, IUCN CEM (2012), Desire WUR, GPFLR (FAO, WRI, IUCN, WUR), Wetlands Interna&onal, Savory Ins&tute

Small waterwalls and waterworks

Many proven technologies exist

Holistic Livestock Management

Why ecosystem restora&on? What: from obstacles to opportuni&es How: from one return to four returns AcKon: selec&ng restora&on ready to investment ready projects

Return on Investment (RoI) for 20 years is driven by the crea&on: "InspiraKonal capital: inspira&on, awareness, beauty & entrepreneurship " Natural capital: fer&le soil, hydrology, biodiversity, biomass & carbon Social capital: employment, social cohesion and security "

Four Returns

4 Returns Different Entities Values measured

Return on Investment

Agriculture Carbon Timber Leisure, hunting, bush harvesting Real estate & other incomes Water Decrease erosion, increase topsoil

Yield / yr / ha ton Carbon absorbed / yr / ha Yield / yr / ha Yield / yr / ha Value / yr / ha Production m3 / yr Decrease costs input chemicals / ha / yr

Return of Social Capital

Jobs Security Local social cohesion Education & Social Services

# of new jobs / project / municipality - ha # various yr / project # of social ventures / yr / project # schools, trainings, services / project

Return of Natural Capital

Biodiversity Invasive species Vegetation cover Top soil Water

# of native species / yr / ha % decrease / yr / ha % coverage / yr / ha; % cloud formation mm layer / yr / ha; % microbes; % C / ha % humidity; # stream flow (m3 / yr / ha)

Return of Inspirational Capital

Pride, self determination, meaningfulness, awareness

Understanding & outreach Commitment local ownership,

entrepeneurship, less corruption Commitment companies & investors Creative time

% of stakeholder group / yr / ha: # local cultural & social events % of stakeholder group /yr / ha % of stakeholder group / yr / ha

committed; % corruption benchmark/ yr % responding to long term commitment % of free time to rest and think SOURCE: Nature Resilience: ecological restora&on by partners in business for next genera&ons. RSM, IUCN CEM (2012); McKinsey (2012), Ecosystem Return Founda&on (2014)

Four Returns Values

NATURE (biodiversity)

ECO AGRO MIX (agro forestry, water, soil)

ECONOMIC(agriculture, real estate)

Restored biodiversity, soil for ecosystem services, carbon, forest products, leisure and

hunting

Partially restored biodiversity, soil by agroforestry, fruit trees,

water, leisure and carbon

Productive zones for agriculture, dedicated zones for housing and infrastructure

SOURCE: Nature Resilience Team Analysis, McKinsey, Willem Ferwerda (ERF), RSM, IUCN CEM , GPFRL, ELD

In every project, we define three landscaping zones

Nature

Eco Agro Mix

Economic

SOURCES: Laguna Blanca, restora&on project Tompkins Conserva&on, Argen&na.

Per project, the distribution per zone varies

RestoraKon acKvity: "Work with local popula&on and stakeholders to

o increase biodiversity o build sustainable water infrastructure o create new agriculture and forestry (three zones)

RestoraKon results:

"Sustainable water infrastructure - small dams and water stores"

"Perennial vegetaKon cover increased from 17% to 34%

"Increased soil ferKlity and biodiversity due to return of species

Benefits & Hope:

"2.5m people liqed out of poverty

"Average farmer income rose from US$ 70 to US$ 200 p.a.

"Reduced flooding of populated areas and sustainable water use >53m tonnes reducKon fer&le sediment loss to the Yellow River

SOURCES: World Bank Loess Plateau Watershed Project (2003); Images: John D. Liu (EEMP): Hope in a Changing Climate (2010)

Restoring 3.5m hectares of the once fer&le Loess Plateau

China

Return on Investment: agriculture, forestry, economy

Return of Social Capital: 2,5m jobs, immigra&on stop

Return of Natural Capital: 34% vegeta&on cover back

Return of Inspira&on: educa&on, social cohesion, joy

1995 2009

SOURCE: TEEB for Business (2010): slide from Pavan Sukdhev

Return on Investment

5 10 15 20 Years

Return to local people and stakeholders is key to success

RestoraKon investment (Grants, Loans, Equity)

Return

The four returns will be generated from ecological, mixed and economic zones Aqer 20 years ecosystem

funcKons are sufficiently restored to recover ecosystems services and provide economic benefits.

SOURCE: Ecosystem Return Team Analyses McKinsey, RSM, IUCN CEM (2012)

Business model for restoration partnerships long-term returns (20 years)

Indicators for low hanging fruit: - Poli&cal stability - High percentage of degrada&on (low value) - Low percentage of land tenure issues

Why ecosystem restora&on? What: from obstacles to opportuni&es How: from one return to four returns AcKon: selec&ng restora&on ready to investment ready projects

WHAT CAN THEY DELIVER Match between financiers / four returns our / local team

SUPPORT TO LOCAL NEEDS Managerial capacity, poli&cal network, access to finance, business skills

EXTERNAL FACTORS Poli&cal, Economic, Social, Technical and Legal boundary condi&ons

LOCAL OPERATIONAL PEOPLE Availability and quality of Landscape entrepreneurs

Design Scout

Pilot Scale up Implement Maintain

Selec&on From restora&on ready to investment ready projects

43

Business partners direct interest in the

area

2

Farmers

3

Government (municipality,

district, na&onal)

4

Business school

5

Local communi&es

6

4 pillar approach

Rela&onship building between stakeholders Building collec&ve understanding of how the system works and what is stakeholders impact on the system Establish clarity on value drivers based on four returns Build ability to con&nuously learn, reflect and act

Large scale ecosystem restora&on

Business partners interest to learn from the process

1

Do not focus on predefined outcomes but collaboratively look for value propositions for each stakeholder

LocaKon: Baviaanskloof Size: c200,000 ha Partners: Living Lands, Shell, other companies in Port Elisabeth and SA ministry

LocaKon: Floreana (Galapagos) Size: 17,300 ha Partners: Charles Darwin Founda&on and ministries, companies

LocaKon: Otjiwarongo Size: c65,000 ha -> 10,000,000 ha Partners: Cheetah Conserva&on Founda&on, ministry and company

LocaKon: Madrid, Cas&lla-Leon, Andaluca Size: 3 areas to be iden&fied: c10,000 ha In total 10m ha is degraded Partners: NGOs, government, Dutch Embassy, farmers and landowners

South Africa

Ecuador

Namibia

LocaKon: Bergrivier Size: tbd Partners: local NGO, communi&es and ministry, Dutch Embassy

South Africa

Creating a pipeline of projects Spain

LocaKon: West Sumatra Size: c19,000 ha Partners: local NGO, communi&es and ministry

Indonesia

LocaKon: Java Size: c19,000 ha mangrove restora&on Partners: Wetlands Int., communi&es and ministry

Indonesia

LocaKon: Wahab Size: 5,000 ha Partners: Sekem Company, Heliopolus University and local authority

LocaKon: Tamil Nadu, Gundar river basin Size: 20,000 ha Partners: Dhan Founda&on, Hivos and companies, local authority

India

Egypt

LocaKon: Southern Poland Size: c5,000 ha, old mining pits Partners: RWE Poland, landowner, university.

Poland

Founda&on

Enterprise Assets

Foundation & Enterprise

Opera&onal Companies

Ecosystem Restora&on Business Partnerships

Project execu&on

Interna&onal endorsement and monitoring

Communica&on and training

Project selec&on

Business development

Asset management

Private sector

APG Asset Management

McKinsey & Company

FMO

Baker & McKenzie

Triodos Bank

ASN Bank

Camunico

Groasis

Egon Zehnder

Eosta

Form Interna&onal

Deltares

Land Life Company

IE Madrid (Spain)

Enviu

"

Use of an international network NGOs and UniversiKes

HIVOS (NL)

World Land Trust (UK)

IUCN Leaders for Nature

Wetlands Interna&onal

ISRIC World Soil Informa&on

Nyenrode Business School (NL)

Tropenbos Interna&onal

Massey University (New Zealand)

Tompkins Conserva&on (US)

Wageningen University (NL)

Free University Amsterdam (NL)

Charles Darwin Founda&on (Galapagos)

Global Footprint Network (US)

TEMA (Turkey) "

Utrecht University

IUCN ES (Spain), IUCN China, IUCN NL

Living Lands (South Africa)

EEMP (China)

Governmental and mulK-lateral organisaKons

UN Conven&on to Combat Deser&fica&on (UNCCD)

UN Environmental Programme (UNEP)

Global Partnership on Forest & Landscape Restora&on

IUCN Commission on Ecosystem Management

Economics of Land Degrada&on

Bonn Challenge

Dutch Government (ministry Economic Affairs,

ministry Infrastructure & Environment)

Netherlands Ins&tute for Ecology (NIOO)

Project: South Africa

Summary

Region:

DescripKon:

DuraKon:

Stakeholders:

Eastern Cape Province - Baviaanskloof

200,000 hectares of severely degraded land caused by intensive grazing that destroyed the original thicket leading to severe erosion of the fer&le top soil and disrup&on of hydrology

c10 years

investors, local communi&es, government, private sector and experts

NGOs, scienKfic and academic organisaKons

Business case

RaKonale:

Return:

build sustainable water infrastructure and re-vegetate area to increase produc&vity and natural storage of water, carbon and reintroduce wildlife (game)

reduced water costs, real estate (incl. leisure), agriculture, CR, and tourism

Making a business plan to restore the Baviaanskloof with companies

Key success factor: scaling up best local projects by aligning the interests of stakeholders

Spain: 10m hectare degraded

Spain

Millennium Ecosystem Assessment ((2008) - www.maweb.org The Economics of Ecosystem and Biodiversity (2008) - www.teebweb.org Dead Planet, Living Planet (2010) www.unep.org Nature Resilience: ecological restora&on by partners in business for next genera&ons (2012) - www.rsm.nl Red List of Ecosystems - www.iucnredlistofecosystems.org

Further Reading

Ecosystem Return FoundaKon A: Barbara Strozzilaan 101 | 1083 HN Amsterdam | NL E: catherine.vannierop@ecosystemreturn.com T: +31 20 2010410 W: www.ecosystemreturn.com

Contact

If you want to build a ship, dont drum up people, together to collect wood and dont assign them tasks and work, but rather teach them to long for the

endless immensity of the sea.

Antoine de Saint-Exupry