WHY ARE WE HERE?

Biodiversity: Biodiversity:

Going, going…..Going, going…..

Potential “killer Potential “killer barriers”in the finance barriers”in the finance

areaarea

Impacts of Impacts of private financial private financial

flowsflows

Lack of Lack of reliable, reliable, long-term long-term fundingfunding

Conservation Conservation SuccessSuccess

Total fundingTotal funding is inadequateis inadequate by by an order of magnitudean order of magnitude

Nearly all conservation funding Nearly all conservation funding isis short-termshort-term (1 - 3 years) (1 - 3 years)

Explosive growth of Explosive growth of privateprivate financial flowsfinancial flows (adverse (adverse impacts/opportunities)impacts/opportunities)

Ecosystem servicesEcosystem services undervaluedundervalued

More specifically...More specifically...

Conservation Finance ProgramsConservation Finance Programs

• Sustainable funding for protected Sustainable funding for protected areas and national PA systemsareas and national PA systems

• Mechanisms to effectively channel Mechanisms to effectively channel funding to conservation activitiesfunding to conservation activities

• Pioneered some new approachesPioneered some new approaches

• Global impacts in just a few areasGlobal impacts in just a few areas

Lots of activity, limited Lots of activity, limited collaborationcollaboration

ConservationFinance

ConservationFinance

Intergovernmental agencies

Intergovernmental agencies

NGOsNGOs

FoundationsFoundations

Government agencies

Government agencies

UniversitiesUniversities

Private sectorPrivate sector

Approximate numbers of deals

• 20+ conservation trust funds (inadequate capital)

• 10 conservation-oriented carbon investment projects

• 3 biodiversity enterprises funds (mostly small-scale)

• 5 water user fees

• 4 conservation concessions

• 1 national ecotourism tax

• 2 resource extraction fees dedicated to conservation

How do we How do we go to scalego to scale??!!??!!

Barriers to Scaling UpBarriers to Scaling Up• CapitalCapital: Lack of seed funding for new : Lack of seed funding for new finance projects; lack of capital for finance projects; lack of capital for trust fundstrust funds

• ToolsTools: Lack of well-packaged : Lack of well-packaged information and practitioner tools for information and practitioner tools for taking actiontaking action

• Sharing/learningSharing/learning: Lack of info-sharing : Lack of info-sharing and learning from field experience and learning from field experience

• Technical supportTechnical support: Lack of technical : Lack of technical support, particularly in developing support, particularly in developing countriescountries

Lack of focussed collaborationLack of focussed collaboration

Training GuideTraining Guide

An example of concrete synergies An example of concrete synergies that can be achieved through that can be achieved through

focussed collaborationfocussed collaboration

(GO TO CD ROM)(GO TO CD ROM)

CAN A CONSERVATION ALLIANCE

BE BUILT AROUND A STRATEGIC

PROGRAM OF ACTION?

Purpose of retreatPurpose of retreat

• Preliminary Program of Preliminary Program of ActionAction

• General elements of MOU General elements of MOU to formalize allianceto formalize alliance

• Identify ways other Identify ways other organizations can organizations can contribute to and benefit contribute to and benefit from alliancefrom alliance

GroundrulesGroundrules

• Spirit of collaborationSpirit of collaboration

• Concise comments to allow Concise comments to allow others time to speakothers time to speak

• PatiencePatience

• Destroy all cellphones! Destroy all cellphones!

• Have funHave fun (or else) (or else)

TNC’S CONSERVATION FINANCE PROGRAM

(in transition)

Staffing: sizeStaffing: size

• ““Core Conservation Finance Staff” Core Conservation Finance Staff” (at least 1/3 of their time): Appx. 14(at least 1/3 of their time): Appx. 14

• Many others spending less than 1/3 Many others spending less than 1/3 of their time on conservation financeof their time on conservation finance

Staffing: deploymentStaffing: deployment

• Core Conservation Finance StaffCore Conservation Finance Staff– 10 in Arlington headquarters10 in Arlington headquarters

– 1 in New Zealand1 in New Zealand

– 1 in San Jose1 in San Jose

– 1 in Quito1 in Quito

– 1 in Vermont1 in Vermont

Conservation Finance ProgramsConservation Finance Programs

• Conservation Trust FundsConservation Trust Funds – IPG; TA to – IPG; TA to support establishment / start-upsupport establishment / start-up

• Water Policy ProgramWater Policy Program – water valuation and – water valuation and water user feeswater user fees

• Initiative for Innovative Conservation FinanceInitiative for Innovative Conservation Finance – tools, training, financial innovations– tools, training, financial innovations

• Compatible Ventures GroupCompatible Ventures Group – market tools, – market tools, compatible businesses, financial innovationscompatible businesses, financial innovations

• EcoEnterprises FundEcoEnterprises Fund – equity/loan/grant – equity/loan/grant capital for biodiversity-friendly enterprisescapital for biodiversity-friendly enterprises

Conservation Finance ProgramsConservation Finance Programs(continued)(continued)

• Ecotourism ProgramEcotourism Program – visitor use fees – visitor use fees

• Climate Change ProgramClimate Change Program – forest carbon – forest carbon mitigation projects (pvt. sector investment)mitigation projects (pvt. sector investment)

• Debt Swaps ProgramDebt Swaps Program: TFCA focus: TFCA focus

• Conservation bondsConservation bonds - state bond issues - state bond issues across U.S.across U.S.

• Conservation easementsConservation easements (?): US and LA (?): US and LA

Status of CF MechanismsStatus of CF Mechanisms

5 staffEarlyECO

ENTERPRISES

5 staffMatureCOMPAT VENTURES

3 staffStart upINIT FOR INNOV CF

1.5 staffEarlyWATER

4 staffMatureCTFs

Status of CF MechanismsStatus of CF Mechanisms

1 staff (intl)

30+ staff (US)?

MatureEASEMENTS/CONSERV CONC

10 staff? (US)MatureCONSERV BONDS

2 staffMatureDEBT SWAPS

5 staffMatureCLIMATE

CHANGE

Focus of CF MechanismsFocus of CF Mechanisms

Small-scale businesses (forest, farming, ranching)

Conservation Beef, Grass Bank, CTIMO, Forest Bank

COMPAT VENTURES

Training Gde/ related tools

Trainings

Carbon Fund

Agric. transition insurance

INIT FOR INNOV CF

Ecuador, Bolivia, HondurasWATER

Mostly nat’l-scale, some site, MesoAmer reef

Latin America

Carrib, Pacific

CTFs

Exploring Indonesia, DR

US focus to date

Focus of CF MechanismsFocus of CF Mechanisms

Latin AmericaECOENTERP

FUND

All US states

6 LA countries

EASEMENTS/

CONSERV CONC

20 states (US)

(e.g., CA and FLA)

CONSERV BONDS

Belize, Peru, Indonesia

DEBT SWAPS

Forest preserv and reforest, carbon fund

Latin America, US projects. Exploring Indo, PNG

CLIMATE

CHANGE

Ongoing in many states

Private land easements - growing area for LA, strong interest to apply in AP

Interest to expand in LA and to AP

Priority mechanismsPriority mechanisms(under review)(under review)

• CTFsCTFs

• Ecosystem service payments Ecosystem service payments (carbon, water, tourism user fees)(carbon, water, tourism user fees)

• Compatible enterprises (income gen, Compatible enterprises (income gen, reduce conserv costs, enterprise reduce conserv costs, enterprise funds)funds)

• Conservation concessions (broad)Conservation concessions (broad)

Priority themesPriority themes(under review)(under review)

• Site sustainability Site sustainability - lasting impacts- lasting impacts

• Multi-siteMulti-site strategies strategies - going-to-scale- going-to-scale

• Capacity-buildingCapacity-building delivery systems delivery systems (training guide, targeted tools, (training guide, targeted tools, targeted trainings, etc.)targeted trainings, etc.)

• 5 TNC Initiatives:5 TNC Initiatives: marine, invasives, marine, invasives, fire, freshwater, climate changefire, freshwater, climate change

GapsGaps

• Delivery systems:Delivery systems: seed fund, practical seed fund, practical tools, targeted training, field-based finance tools, targeted training, field-based finance specialistsspecialists

• Investment capitalInvestment capital for CF mechanisms for CF mechanisms

• Capacity in Capacity in resource economicsresource economics and and economic analysis (esp. int’l)economic analysis (esp. int’l)

• Finance Finance strategiesstrategies that engage that engage commercial-scale businessescommercial-scale businesses

• Forest policyForest policy expertise expertise

Existing collaborationsExisting collaborations

• Coral Reef / MPA Initiative:Coral Reef / MPA Initiative: TNC / CI TNC / CI leadership. Large, multi-year grant under leadership. Large, multi-year grant under discussiondiscussion

• Human welfare / biodiv. integration project:Human welfare / biodiv. integration project: TNC/WRI leadership. Large, ten-year Moore TNC/WRI leadership. Large, ten-year Moore Foundation grantFoundation grant

• CI / TNC science and research collaboration on CI / TNC science and research collaboration on conservation economicsconservation economics (e.g., conservation (e.g., conservation concessions)concessions)

• Mesoamer. reefMesoamer. reef reg. trustreg. trust fund fund - TNC and WWF- TNC and WWF

• EcoEnterprises FundEcoEnterprises Fund - TNC, IDB, GEF - TNC, IDB, GEF

Future collaborationsFuture collaborations

• Large-scale priority sites (e.g., SW Large-scale priority sites (e.g., SW Amazon, East Kalimantan, SW China)Amazon, East Kalimantan, SW China)

• Training Guide and targeted trainingsTraining Guide and targeted trainings

• Targeted events/fora: WPC, CBD, GEFTargeted events/fora: WPC, CBD, GEF

• Coral reef / MPAsCoral reef / MPAs

• Conservation concessions - Latin Conservation concessions - Latin America and AP)America and AP)