Worldwide, the growth of marine tourism is creating opportunities for financing marine protected areas (MPAs), but what these financial arrangements look like and how they can be governed at larger scales, and in equitable and transparent ways, is unclear. This paper examines the governance arrangement of two region-wide successive entrance fee systems established since 1997 in Raja Ampat, Indonesia, to finance a network of MPAs delineated under the auspices of two big international non-governmental organizations (NGO), namely Raja Ampat Entrance Fee and Raja Ampat Ecosystem Service Stewardship Fee. These two successive entrance fee systems can be viewed as payment for environmental services (PES) arrangements. The PES-like entrance fee arrangements improved in terms of participation, transparency and equity. In the second scheme, local communities in Raja Ampat were involved in the design of the disbursement of the community fund, and the criteria for disbursement became more clear and transparent. However, in both schemes there is no clear connection between the distribution of the funds and activities that improve environmental services provision (conditionality). In addition, the latter scheme is still facing equity challenges as some communities with customary rights over marine tourism hotspots are asking for additional user-fees from tourists and tourism operators.
In 2015, the Marine Protected Area Advisory Committee was charged with advising the Departments of Commerce and the Interior on opportunities to expand the use of external financing for marine protected area (MPA) programs. This report focuses on a wide range of approaches to obtain external funding for MPAs. Although in-kind services are important, analysis of these services is beyond the scope of this report.
External financing is used in this report to describe any kind of funding that an organization receives from outside its home institution. External financing is not intended to replace the need for dedicated government funding for protected areas, but rather to provide additional support in order to achieve the MPA’s objectives. Additionally, we note that organizations should pay careful attention to the limits of their authorities, procedures and ethics rules to ensure that external financing is used properly and accountably and dedicated entirely to achieving public purposes.
This guide presents lessons learned on how to increase central budget allocations to PAS through a strengthened budget negotiation process, based on the experiences and results generated by the Project. The analysis of the PAS budgeting cycle in the three target countries revealed weaknesses in each phase, partially as a result of major functional disconnects between each phase.
Effective enforcement can reduce the impacts of illegal, unregulated, and unreported (IUU) fishing, resulting in numerous economic, ecological, and social benefits. However, resource managers in small-scale fisheries often lack the expertise and financial resources required to design and implement an effective enforcement system. Here, a bio-economic model is developed to investigate optimal levels of fishery enforcement and financing mechanisms available to recover costs of enforcement. The model is parameterized to represent a small-scale Caribbean lobster fishery, and optimal fishery enforcement levels for three different stakeholder archetypes are considered: (1) a fishing industry only; (2) a dive tourism industry only; and (3) fishing and dive tourism industries. For the illustrative small-scale fishery presented, the optimal level of fishery enforcement decreases with increasing levels of biomass, and is higher when a dive tourism industry is present. Results also indicate that costs of fisheries enforcement can be recovered through a suite of financing mechanisms. However, the timescale over which financing becomes sustainable will depend largely on the current status of the fishery resource. This study may serve as a framework that can be used by resource managers to help design and finance economically optimal fisheries enforcement systems.
This report presents the first assessment of financing needs and gaps both for effective management of Mediterranean Marine Protected Areas (MPAs) and for achievement of the Aichi targets of 10% of the marine area protected in the Mediterranean Sea. The approach developed for this study is also the first of this kind in the region: based on data collection from a representative sample of MPAs and through interviews with national authorities, it has collected and compiled both local data on MPA financing and national data on resource mobilisation for MPAs in 17 countries of the Mediterranean Sea. It reveals the size of the financing gap for effective management of MPAs in the region and attainment of the Aichi target.
This guide aims to provide MPA managers and national authorities with tools and a step-by-step approach for the development and implementation of financial strategies. It provides useful practical knowledge for improving managers’ financial planning skills, as well as guidance on potential sources of funding which may supplement current funding, including innovative financial mechanisms.
The guide addresses strategic objective 3 of the Mediterranean Marine Protected Areas network roadmap: “Develop Mediterranean MPAs governance which is inte- grated on a territorial level and with the other sectors while promoting the sharing of environmental and socioeconomic benefits”.
The global oceans contribute to human wellbeing by providing marine ecosystem services, but the ability of the oceans to continue providing these services is jeopardised by anthropogenic impacts. There is a limit to marine conservation that has not been adequately addressed: finance. This paper reviews the state of marine conservation funding, identifies associated challenges, and recommends possible ways forward. We identify five challenges: 1) funding for marine conservation is inadequate in terms of the size, duration, and diversity of revenue, 2) finance mechanisms are under-developed and under-utilised, 3) finance is often disconnected from conservation planning, 4) the environmental side-effects of economic activity increase the gap in global conservation funding, and 5) few individuals and programmes specialise in marine conservation finance and integrate its disparate lines of thinking. We then propose five solutions: 1) financial strategies for marine conservation, 2) increased research on and development of finance mechanisms, 3) integration of financial planning into conservation planning, 4) engagement of businesses in reducing the gap in conservation funding for marine ecosystems, and 5) definition, focus, and specialists for the emerging field of marine conservation finance. Multi-sector and interdisciplinary collaboration is essential to reduce the marine conservation-funding gap and sustain marine ecosystem services.
Research suggest three key enablers of sustainable and profitable fisheries that, together, provide the basis for increased value:
- Secure tenure aligns the incentives and empowers the fishing industry to pursue sustainable use of the resource and is a vital first step in the transition
- Sustainable harvests determine how much fish can be caught sustainably and enable the creation of both management and investment frameworks
- Monitoring and enforcement provide assurance that fishers will comply with sustainable management and reduce the chance of illegal activity that could undermine the transition
These conditions, particularly establishing secure tenure, provide the platform for unlocking greater social, economic and environmental value in fisheries and are vital to investment activities. With the conditions described above in place, investment can be channelled towards the three key drivers of increased fisheries value:
- Improving stock health leads to higher long-term yields and makes fish less costly to find and catch
- Increasing operational efficiency reduces fishing and delivery-related costs, improving profit margins and thus improving the returns from fishing as a whole
- Increasing market value through improved market access, certification, branding and long-term partnerships returns more value to fishers
- A clear business case for the transition that includes a contextual analysis of the project as well as a bioeconomic and financial model of the investment proposition
- Investable entities to act as counterparty to the investment; these can be existing, modified, or newly created entities
- Mechanisms for capturing return from the beneficiaries of the transition to share the upside of a transitioned fishery with the investor, such as dividends, taxes, or fees
- Risk management through appropriate identification and articulation of risks, as well as efforts to mitigate or manage risk
Structuring the investment to align and coordinate sources of capital can create a financially sustainable transition and match investors to the financial, environmental and social returns that fisheries provide. Project developers can consider two key points:
- Sources of capital, or investors, fall along a spectrum based on, among other things, target returns, type of investment and target terms. Traditionally, fishery transitions have been funded by ‘impact-only’ investors who expect no return or little financial return
- Combining capital to sequence, blend or layer investment structures can effectively reduce and spread risk, while leveraging larger pools of capital. Including different types of investors will ultimately unlock the resources needed to start to address the scale of the challenge that lies ahead
Conservation Trust Funds (CTFs) are a source of sustainable financing for long-term biodiversity conservation, in particular for protected areas management. Through a review of 12 case studies from Africa, Asia, Latin America, the Caribbean, and Australasia, this research report provides a broad overview of how to create a CTF, describing its legal and institutional structure, fund generation and delivery, and identifying when it might be an appropriate tool. The lessons learnt from the case studies provide guidance on best practice and an insight into the conditions for the sustainability and success of the funds, and thereby their value to conservation.