Transcript CBD Presentation - Zoological Society of London

Sustainable Financing of Protected Area
Systems—A Long Rode to Ho:
Lessons from the Biodiversity Portfolio of
the Global Environment Facility
Mark Zimsky
GEF Biodiversity Coordinator, Senior Biodiversity Specialist
Protected Area Symposium at the ZSL
November 9, 2012
Outline
1. Evolution of the GEF Strategy to Sustain
Biodiversity through Protected Areas (PA)
2. Assessments of the Current Funding Needs for
Managing and Expanding the Global PA Estate
(Aichi Target 11)
3. Examples from the GEF Portfolio of Reducing
the PA Funding Gap
4. Key Findings from the GEF Portfolio
GEF Support to Protected Areas: 1992-2004
Thank you for your attention
Questions?
GEF Support to Protected Areas: 2004 to present
Improve the sustainability of protected area systems.
Thank you for your attention
Questions?
High Level Panel on Global Assessment of Resources for
Implementing the Strategic Plan of Biodiversity 2011-2020
Investment
needs
(US$ million)
Aichi Target
66,00011—
626,000
terrestrial
(17%) and
coastal and
marine (10%)
protected
areas
Recurrent
Expenditure
(US$ million)
970-6,700
Average
annual
expenditure
(US$ million)
2013-2020
9,200-85,000
Range
$77-81 billion
per annum
(multiple
sources)
Expert Team GEF-6 Needs Assessment: 2014-2018
• Aichi Target 11: Range $23 to $50 billion
• Reality check: GEF-5 amount for biodiversity focal
area for 2010-2104: $1.2 billion
Reducing the Funding Gap: Examples from the GEF Portfolio
• Trust fund+
• Protected areas as engines of local and national
economic development
• Protected areas as profit centers
Peru: Trust Fund+
•
77 protected areas covering about 19 million hectares that require $38.5 million/year to
cover administration costs.
•
National Trust Funds for Protected Areas (PROFONANPE) manages an endowment fund of
$43 million which generates about $3 million/year (8% of annual needs) based on
historical annual average returns of 7%.
•
GEF engagement begins in 1995 with seed money for the trust fund (National Trust Fund
Protected Areas, $ 5 million).
•
•
Government allocates $13.8 million/year or about 36% of total needs.
Current annual total gap is $ 21.7 million/year or about 56% of total needs.
•
PA management contracts were introduced through a GEF project ($ 9 million,
Strengthening Biodiversity Conservation through the National Protected Areas Program)
to help fill the funding gap.
•
In 2012, PA management contracts will bring in at least $23 million for management of
eight protected areas.
Namibia: Protected Areas as Engines of
Local and National Economic Development
•
In 2004, at the start of the GEF project, “Strengthening the Protected Area Network”
($ 8.2 million) baseline investment of Government into the PA system was about US$
4.6 million using today’s exchange rate.
•
Analysis undertaken at start of project revealed an annual need of US$12 million or a
gap of $7.4 million.
•
Economic analysis discovered that protected areas contribute 3.1 –6.3 percent of the
GDP through park-based tourism alone, without including other ecosystem services
values; if the tourism potential is fully realized, the economic rate of return on the
government investment over 20 years would be as much as 23 percent.
•
Using these study results, the government increased the annual budget for park
management and development by three fold. By the end of the project the annual
investment by Government was US $15.5 million.
Namibia: Protected Areas as Engines of
Local and National Economic Development
•
The Ministry of Finance also agreed to reinvest 25 percent of park entrance revenue in park and
wildlife management through a trust fund, providing up to $2 million in additional financing per
year.
•
In 2007, Cabinet approved the National Policy on Tourism and Wildlife Concessions on State Land
to maximize the economic potential of protected areas. Since the policy has been implemented,
more than 20 new tourism and hunting concessions were approved, generating over $1 million
per year in fees payable to the government.
•
An update of the 2004 economic analysis was done in 2009/2010 and estimated that the annual
recurring expenditure was $US 18 million in addition to a one-time capital injection of $62
million.
•
Analysis conducted during the project was critical to the mobilization of a US$ 40.51 million
Millennium Challenge Account tourism grant for Etosha National Park infrastructure and KfW’s
funding of US$ 7.8 million for north-eastern parks infrastructure. This has contributed
significantly to the $62 million needed for infrastructure development.
Jordan: Protected Areas as Profit Centers
•
Royal Society for the Conservation of Nature (RSCN) has a national mandate to set up and manage
protected areas on behalf of the Government and receives less than 10% of its annual operating budget
from the Government.
•
A GEF project funded in 1997 ($ 6.3 million, Conservation of the Dana and Azraq Protected Areas) sought
to improve management of the Dana Nature Reserve and build capacity of the RSCN.
•
Project successfully developed income generating projects with local villages and Bedouin communities
that also provided revenues for PA management. Dana Nature Reserve experience served as basis for
replication throughout the PA system.
•
The end result has been the creation of a business division within the RSCN—Wild Jordan– in 2003.
•
In 2010, Wild Jordan generated $800,000 net revenue to support conservation costs, mainly from
nature-based business and tourism (eco-tourism, crafts, restaurants). This represented close to 50% of
total protected area costs.
•
Wild Jordan going to scale: a) more broad-based business strategy, i.e., investing in opportunities
outside of protected areas that make good business sense; b) more outsourcing and partnerships with
private sector; and c) business models developed for each protected area.
Key Portfolio Findings
• Most finance strategies are emphasizing the simple over the sophisticated (trust fund
+, economic analysis, capture gate revenue, honey-pot redistribution).
• Data is king and economic analysis is fundamental.
• Start with a baseline assessment and audit, about 60 countries currently undertaking
such an analysis with GEF support.
• Finance ministries act on numbers not moral suasion.
• Managing protected areas as assets and developing business plans requires specialists
with different skills and institutions operating in a favorable enabling environment of
laws and policies.
• Outsourcing is not a dirty word.
• Long-term institutional engagement and financial support—easily a decade--- is
required to getting anywhere close to financial sustainability.
Prosaic Trumps the Innovative
Thank you for your attention.
Mark Zimsky
[email protected]
GEF Biodiversity Coordinator
Senior Biodiversity Specialist
Mark Zimsky, [email protected]
GEF Biodiversity Coordinator, Senior
Biodiversity Specialist
.