Transcript Achievements to Date

Achievements to Date
Muleso Kharika
Background
• DEA ratified the UNCCD in 1997
• The objective of the Convention is to combat
desertification and mitigate the effects of
drought in countries experiencing serious
drought and/or desertification, particularly in
Africa
• Article 20 UNCCD: National Action Plan
• Funding mechanism to mobilise private sector
resources
Objectives
• To improve the living conditions of the rural poor living
in degrading landscapes
• To improve the condition of affected ecosystems
• To generate global benefits through effective
partnerships - develop financial mechanisms capable of
mobilizing resources/partnerships to support
implementation of Convention
• Sustainability of initiatives
• Shared learning networks – scalability / replicability
Core Activities
• Establish and operationalise the Drylands Fund as a vehicle for
mobilising resources for financing pro-poor sustainable land
management practices (improving ecosystem services, productivity
of landscapes, and improving livelihoods)
• Focus on community land in resource rich areas (e.g. with high
biodiversity and water value – especially people and parks
/watersheds)
• Impact measured – increasing hectares of land under sustainable land use management
– improving livelihoods (e.g. entrepreneurship and job opportunities)
Governance Instruments
• MOA was signed by DEA and DBSA
• Steering Committee comprising about 13
people from government, business and
private sector. Chaired by DEA
• Fund is managed by a PIU that is mandated
through a business plan and Strategy and by
SC resolutions
– Service providers subject to funding coming on
stream
Budget
Budget
R7.3m guaranteed over 3 years plus additional funds to be raised by the
partners.
• R3.250 DEA
• R3.250 DBSA
R1m per year projects
R1m per year operational costs
Plus raised R800 000 in first year for projects
Expenditure 1.5 years
R3.1m committed /in process
• R2.8m projects ( 7 projects)
• R400 000 operational costs (bank fees, charges, s and t and other
direct costs – excluding DBSA time and other activities and
sponsorships planned)
Achievements from June – August
2012
Projects
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Ongoing work on the three projects
in implementation ( Thicket,
Thababkgolo, Deaf Economy)
3 projects approved from CEO Funds
R800 000 –prepared for
disbursement
Project in pipeline ready for approval
Amashangane Community
Monitoring and Reviews
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Internal
external audit –
SizweNtsalubaGobodo
Fund review – Genesis Analytics
DBSA Internal monitoring report
MOA revised awaiting finalisation
Revised strategy and Action Plan
Events /meetings
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National Coordination Body
IAIA – 400 practitioners
ARC SADC Land Management
Seed awards
3 PES presentations and workshops
Meetings with BUSA, NBI and ABSA
and other business partners
international agencies AFD and
USAID
Drylands Fund SC meeting
Meeting PIU DEA team
Achievements continued
Resources Mobilized
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DBSA CEO Fund money materialized R800 000
Examples of Resources in process of being mobilised
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Buffelshoek/Londolozi Trust (R1m to double our efforts in Bushbuck Ridge)
Rotary application – R8m – R20m
Rotary local R500 000
NBI (provide time and skills)
ARC (research funds R200 000)
Department of Agriculture – in kind on monitoring and baselining
DIFD R45m
GEF application - R50m together with 5 other stakeholders
ABSA provide grants for entrepreneur projects leverage on project basis
Gauteng GDARD application R28m – not much promise
AFD (go through DBSA DPD)
GEF small Grants leverage on project basis
DEA R5m per year for 3 years
Green Fund applications for R45m
Strategy Document
Strategy Document completed serves as a
guideline R60m budget subject to:
– Green Fund R45m
– DEA for operational costs for 3 years R5m/year
– DBSA considerations
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– Contract a management team (Fund
manager/administrator, resource mobiliser to
develop project proposals to a point of buy in)
Green Fund-Drylands Fund
Relationship
International best practice:
– The National Green Fund is an umbrella wholesale
body whilst the Drylands Fund is a retail specialist
rural delivery vehicle (in support of one another)
– The Drylands Fund niche is to mobilise private
sector resources to rural communities through
developing Incentive and Market Based Financial
Instruments such as PES/RES or Easements etc
– Build on and support what exists rather than
undermine and or duplicate
The Green Fund
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There are niche areas within the ‘green economy’ and ’sustainable environment’
sectors which are associated with specific goals and have unique contextual and
operating characteristics. These are typically associated with a multiplicity of small,
targeted interventions with relatively quick turnaround times. Directing and
managing funding towards these niche areas requires a focused, informed and
sustained commitment by a proactive facilitating/coordinating authority. It also
requires a well developed network and an ability to rapidly pursue interesting
opportunities and new ideas, flexibly and on an informed basis, without the need
for a detailed, time-consuming and costly due diligence processes. Given its scale
and strategic nature, this is not something the Green Fund (GF) is well equipped to
do. Nor does it have the resources to comprehensively review what could amount
to an extensive pipeline of small proposals, many of which require specialist
assessment and oversight.
GF can use a portion of its resources to capitalise specialist and focused sub-funds
which serve as its ‘retail’ funding vehicles which serve particular niche areas of the
green economy.
The Drylands Fund
Although relatively small in scale, the Drylands Fund warrants its
specialisation in terms of the support it can provide to the Green Fund:
• understanding the nature of the problems and their potential solutions in
its targeted ‘drylands’ areas and communities,
• engaging with the relevant stakeholders and facilitating partnership-based
solutions between them,
• pursuing and testing innovative offset-based financing instruments with
which to leverage additional investment in fragile ecosystems, and
• effectively translating and communicating the lessons from project
interventions within the ‘drylands network’ to a wider community of
interested players and policy makers.
Pro-poor and
social justice
Pro
Environment
Partnership
Three – 3 priority geographical areas to start with
Small Grant under 50K
Medium to Large
Project Grants 50k +
Innovative Financial
mechanisms
Window 1
Window 2
Window 3
Disbursements (against
criteria and reporting)
Disbursements ( against
criteria and reporting )
Disbursements ( against
criteria and reporting)
Action Plan for 2012/3
Projects in process
• Thabakgolo (Limpopo)
• DEAF Rural Economy (KZN)
• Thicket (EC)
Project at Grant Agreement stage /
implementation (DBSA CEO Fund)
• Biogas Digester Energy Sanitation
(Limpopo)
• Ndakana Food Security Programme (EC)
• Umzimvubu Programme Conservation
Estate Incentives / PES (EC)
Drylands Fund allocated money 2012
• Amashangane Bushbuck Ridge (incentives,
private sector resource mobilisation for
conservation/ food
security/entrepreneurship investments)
Events
• Grassland event
• Thicket Forum
• People and Parks
• Earth Link
• Adaptation Network
• Green Economy Book
• Land Care conference
Programme concept support
• trees for fees
Action Plan continued
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Implement Strategy - test innovative finance vehicles with private sector
companies and such as Rewards or incentives for ecosystem services
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Resource Mobilisation: Green Fund R45m and DFID leverage R45m and Rotary
local and International
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Monitor Fund impacts: GEF UNDP and other international best practice land
management initiatives
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Augment SC with additional members as deemed appropriate
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Implement finance mechanism in priority landscapes
– Umzimvubu/ Maloti Drakensberg (Upper Umzimvub extend it as resources open
to Wild Coast)
– Olifants catchment (Kruger to Thabakgolo communities)
– Thicket Programme
Criteria
• Poverty issues and social inequality addressed promoting
a rapid transition to a green economy
• Biodiversity/natural resource/eco system management –
demonstrating the creation of healthy and resilient
livelihoods and landscapes
• Partnerships are key promote scaling up, subsidiary, and
are proportional to the challenges faced).
• Sustainability factors
• Replicability and scalability
• Assist to shape Drylands Fund Policy and Strategy and
within focal areas
• Risks or likelihood of success
• Readiness for impact- capacity to implement
• Innovation
Project Priority Selection
Projects
Criteria 1
Criteria 2
Criteria 3
Criteria 4
Criteria 5
Criteria 6
poverty issues and
social inequality
addressed promoting
a rapid transition to a
green economy
Biodiversity/Natural
resource/eco system
management –
demonstrating the
creation of healthy
and resilient
livelihoods and
landscapes
Partnerships are key
promote scaling up,
subsidiary, and are
proportional to the
challenges faced).
Sustainability factors
Replicability and
scalability
Assist to shape
Drylands Fund Policy
and Strategy and
within focal areas
Olifants Thabakgolo and
Hazey View and communities
and parks along KNP
5
5
5
4
5
5
Moloti Drakensberg, Upper
Umzimvubu/Wild Coast
projects
5
4
5
3
4
Thicket Programme
3
5
5
4
Karoo including support to
initiatives such as Skeppies
SADC Transfrontier
programmes
4
4
4
5
5
5
Khosi Bay
4
4
Buffalo City Turbine
4
5
Alfred Nzo sanitation
programme
Agulhas various projects
5
3
Youth environmental capacity
building and SD programme
managed through EWT
Criteria 7 Risks or
likelihood of success
Criteria 8 Readiness
for impact- capacity
to implment
Criteria 9
Total score
4
5
5
43
5
4
5
5
40
4
5
4
5
5
40
4
3
4
4
4
4
35
3
4
4
3
3
3
35
3
3
4
5
4
4
4
35
4
4
4
4
4
2
4
35
4
3
4
4
3
3
4
5
35
4
4
4
4
4
3
4
3
33
4
4
4
3
3
4
4
3
3
32
Community project support
with Bird Life Africa
4
4
4
3
3
4
4
3
3
32
Climate Change adaptation
projects through Green
Network
4
4
4
3
3
4
4
3
3
32
Northern Cape composting
3
4
4
3
4
4
2
2
3
29
Camdebou eco-town
3
3
3
4
4
4
3
3
3
29
innovation
Small requests instant relief
work such as community
traditional centres, capacity
building initiatives, scientific
studies etc
Key to ratings for above chart Rating is out of 5 1= needing a significantly drawn out and huge amount of preliminary work to build it up to a high potential project 2= needing a substantial degree of work to build it up to a high potential
project 3= acceptable with a small amount of preliminary work 4= a potential lead example 5 = absolutely solid opportunity
Priority Landscapes for Ecosystem
Services incentives
Willing
buyers
Umzimvubu/Maluti Drakensberg and
Wildcoast
Mechanism for
PES in land restoration
across landscapes
Olifants Catchment (Thabakgolo,
Amashangane, Kruger to Canyon and
Kruger Park communities)
Thicket (ABFRP and moving beyond
to communal lands)
Additional priority emerging
landscapes are the Karoo,
Northern Cape, Khosi Bay
Willing
sellers
Olifants Programme
The Area
PES/ RFE
Thabakgolo Project
• Driven by the Sekhukhune Traditional Authority and a
local village pilot. Exploring innovative financial
mechanisms for incentives and rewards for
sustainable land use management ( forms of
stewardship)
• Works with multiple levels of rural entrepreneurship
initiatives -exploring innovative partnership
institutional models - Entrepreneurship model - Thwii
• Sharing lessons learnt to the wider Sekhukhune
Kingdom and other adjacent Kingdoms
Outcomes
• Baseline studies (livelihoods and land/ecosystem values - MDGs, skills,
food security, resources, ecosystem services)
• SWOT analysis - Asbestos scoping report
• Stakeholder assessment/empowerment/engagement
• Common visioning ecosystem and adaptation based planning
• Master Plan (conservation, expanded protected areas, productive areas
and local economic/entrepreneurship and job opportunities).
Integration with all other emerging regional plans and programmes (
backward forward upstream and downstream)
• Feasibilities of key initiatives
• Training programmes
• Institutional building
• Monitoring and reviewing
• Phase 2 implementation of entrepreneurship programe with leveraging
of private sector funding
Amashangane
• Secure community emergency priority
capacity/
institutional development needs
• Linkages and support to DEA planning process and other
regional initiatives (GEF, USAID, Corridors of Hope, Ivory
Trail, Land Affairs, ARC and DAFF etc)
• Mobilise private sector resources for sustainable land
management practices and improved ecosystems services
and livelihoods through designing and testing incentive and
market based financial mechanisms
• Technical support for at least 2-3 potential demonstration
projects for enhancing ecosystem services and or finding
new and or expanded markets to increase green job
opportunities, entrepreneurship opportunities and incomes
The Umzimvubu
Eastern Cape Programme
Upper Umzimvubu Project
• Improved land conditions and watershed service at six
project sites.
• Enhanced capacity of stewardship groups in the region.
Removal of invasive species on 35,000 ha with co-financing
from the national government.
• Interested buyers of ecosystem services identified and at
least five new value-add enterprises established in
conjunction with development planning/scenario
development.
• Governance structure of freshwater PES structure piloted
and aligned with economic development plans for the
region.
• Monitoring system established for assessing stocks and
flows of fresh water in the Umzimvubu landscape and
enabling analysis of changes based on different economic
scenarios and valuation of the services.
• South African government fresh water pricing strategy
reflects lessons learned from the project.
Thicket Restoration Programme
Project Areas
Indicative budget with GF funding
PROJECT
AMOUNT
COMMUNITY
PROJECT DESCRIPTION
Thicket other projects
R5m plus
Addo communities,
Baviaanskloof projects,
Presence
3 projects demonstrating resource
mobilisation of private sector in Thicket
restoration and biodiversity economy
Umzimvubu
R8.5m plus
CSA and ERS Community
Organisations
PES and opening new markets leveraging /project investments
Olifants Kruger to
Thabakgolo
R8.5m plus
Community
Organisations and Trusts
Balancing portfolio for
project preparation and
investment/leveraging
windows
TOTAL
R8.5m plus
To be determined
together with SC
members
PES Easement mechanism- leverage in
private sector funding for
entrepreneurship ecosystem adaptation
based inititiatives
Determined by SC members and fund
criteria in other provinces
R37m
Recommendations for the PSC
from the Drylands Fund
• Support of the PSC for the Drylands Fund submission
for a grant of R45m to the Green Fund.
• Secure R10m of this amount to be earmarked for the
ABFRP Agency
• Support of the PSC for requesting DEA to resource the
Drylands Fund for R5m per year over the next three
years to mobilise private sector investment in the Fund
and to meet the funds minimal operational and project
investment costs
ABFRP Agency Project
Guy Preston
Background
• Signatory Parties for the Addo Elephant Park, Baviaanskloof Nature
Reserve, and the Park Great Fish River Nature Reserve Restoration
Programme (ABFRP.) Account included DBSA, SanParks, DEA and ECPTA
• The ABFRP has generated a Project Document which has been validated
by internationally accredited validators against standards stipulated by the
Verified Carbon Standard and the Climate, Community, and Biodiversity
Alliance. This Project Document specifies how the implementation of the
ABFRP needs to be undertaken and importantly how the ecosystem
carbon stocks need to be monitored through time in order to generate
verified carbon credits for sale
• The Parties have agreed that the money generated and spent in the
implementation of the ABFRP objectives will be transparently and
responsibly managed with a minimum of transaction costs. In order to
achieve this transparent and responsible management of the money, the
DBSA has been charged by the Parties to establish a Project
Implementation Unit (PIU)
Objective
• The objective of the ABFRP is to restore
degraded thicket in three parks with a view to
expanding beyond
• Restoration will be achieved by planting
cuttings of the indigenous tree P. afra in
specific planting sites within the project areas
Progress
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Approved by DBSA Board
MOA signed by 4 parties
Agency created
VCR credits internationally validated
In process of registration potential to bring in R100m - R120m
R50 000 deposited into Agency by DEA
R30 000 committed to registration costs and audit
Presented concept to International and national forums,
conferences and key potential buyers
• Found potential buyers and developed a strategy for sales for
discussion by SC members
Interrelationship with the Drylands
Fund
• Drylands Fund is currently working to raise funding from Green
Fund and others to work with communities to restore Thicket
biome – including supporting organisations to establish knowledge
and institutional frameworks for managing the thicket biome and
for mobilising further private sector resources
• The planting and maintenance of the project sites under the ABFRP
Agency will be financed through funds generated by the sale of
carbon/biodiversity credits generated by the ABFRP. As it is
currently not optimal to sell credits immediately, additional
bridging financial arrangements need to be made to mobilise the
programme. DEA have provided R50 000 for registration costs and
SC meetings. Further bridging finance will come from the Drylands
Fund (drawing from the Green Fund or other donations to the
Drylands Fund) until time is optimal to sell credits
Way Forward
• Sign a Communication Agreement between
Parties in order to finalize registration
• SC site inspection of areas under planting to date
• SC resolution on details of roles and
responsibilities, methodology and funding flows
• SC to decide on strategy and timing of sales
• Agency to implement, monitor and report to SC
• Acquire gap funding from Drylands Fund (through
Green Fund donation)
Recommendations for the PSC
from the Drylands Fund and the
ABFRP Agency
• Support of the PSC for the Drylands Fund submission
for a grant of R45m to the Green Fund. Secure R10m
of this amount to be earmarked for the ABFRP Agency
• Support of the PIU for requesting DEA to resource the
Drylands Fund for R5m per year over the next three
years to mobilise private sector investment in the Fund
and to meet the funds minimal operational and project
investment costs