Financing

Innovative financing for the High Seas

Thiele T, Gerber LR. Innovative financing for the High Seas. Aquatic Conservation: Marine and Freshwater Ecosystems [Internet]. 2017 ;27:89 - 99. Available from: http://onlinelibrary.wiley.com/doi/10.1002/aqc.2794/abstract
Freely available?: 
Yes
Summary available?: 
No
Type: Journal Article
  1. Innovative financing, that is the development of new funding sources and mechanisms including from the private sector, can be used to deliver promising ocean conservation opportunities. Capital markets are increasingly accessible for sustainable development and climate finance, and are gaining traction for biodiversity conservation. Such financing concepts could also be applied in the High Seas. Drawing on natural capital economics as a way to ascribe economic value, specific marine investment opportunities can be identified and made accessible to new financiers and funding processes.
  2. International waters cover nearly half of the planet's surface, yet governance deficiencies have meant that marine habitats and ecosystems are rapidly deteriorating. Improved governance through the proposed Marine Biodiversity Implementing Agreement discussed under the 1982 UN Convention on the Law of the Sea and delivery of the Sustainable Development Goals, in particular ocean goal 14, will require additional financial support for High Seas solutions, including for the effective management of marine reserves.
  3. For projects to be attractive to funders they need to be clearly structured and deliver quantifiable benefits. A comprehensive ocean data infrastructure could be put in place to support large-scale marine conservation monitoring cost-effectively. This infrastructure could serve also other ocean users, thereby defraying the cost and could be delivered through public–private partnerships. Development finance and climate finance provide examples for relevant pathways for such integrated approaches.
  4. Existing efforts to find additional funding for ocean solutions can be enhanced through the range of specific innovative ocean finance mechanisms that are identified. These offer the prospect of long-term support.
  5. This review draws on progress made at the IUCN World Conservation Congress in Honolulu, Hawai'i in September 2016 and builds on the momentum created by the Paris Agreement and the Sustainable Development Goals.

Conservation Finance: Moving beyond donor funding toward an investor-driven approach

Anon. Conservation Finance: Moving beyond donor funding toward an investor-driven approach. WWF; 2014. Available from: https://www.cbd.int/financial/privatesector/g-private-wwf.pdf
Freely available?: 
Yes
Summary available?: 
No
Type: Report

Valuable ecosystems are today undergoing rapid degradation and depletion in many parts of the world. Natural capital and the services that ecosystems provide are still poorly understood and rarely monitored. Unlike in the case of traditional commodities, the value of these natural resources is not recognized by today’s markets. It is, however, crucial that we understand the interrelationship between environmental quality and economic profitability. This information needs to be integrated into macroeconomic analysis and included in decision-making processes in the areas of financing and investment.

To preserve the health of natural ecosystems, a significantly larger amount of capital investment is required than the sums currently being allocated to conservation. Private sector investment is needed, not to replace but to supplement traditional sources of conservation capital such as public funding or philanthropy, which have been impacted by the global economic downturn. Against this backdrop, WWF and Credit Suisse have joined forces in the area of conservation finance to identify the conditions needed to attract and redirect private capital toward conservation.

This report shows that there are many unexploited private sector investment opportunities to increase conservation finance and deliver maximum conservation impacts while, at the same time, generating returns for investors. In order to develop appropriate financing structures and ensure that private sector conservation finance results in measurable conservation outcomes, financial institutions and non-governmental organizations must experiment and define their respective roles and approaches. If both sides concentrate on their main areas of expertise – with banks focusing on the alignment of capital resources, risks, and maturities, while NGOs identify measures to protect the natural environment – we can create a new opportunity for collaboration that will help to preserve natural capital for future generations. Provided it delivers measurable results, investor-driven conservation finance can create powerful incentives for truly sustainable development.

Our Shared Seas: A 2017 Overview of Ocean Threats and Conservation Funding

Anon. Our Shared Seas: A 2017 Overview of Ocean Threats and Conservation Funding.; 2017. Available from: https://www.packard.org/insights/resource/global-ocean-report/
Freely available?: 
Yes
Summary available?: 
No
Type: Report

The global ocean is at a crossroads with pressure coming from many sides. Climate change, overfishing, pollution, shipping, coastal development: there is no shortage of threats facing the marine environment. Recently, an increasing number of philanthropists and aid agencies have risen to the challenge to support solutions that are within reach. Given the urgency, how can funders and advocates understand the most pressing threats and promising solutions and therefore prioritize where to make an impact? Our Shared Seas: A 2017 Overview of Ocean Threats and Conservation Funding was commissioned by The David and Lucile Packard Foundation to provide a guide to the primary ocean threats, trends, and solutions to help funders, advocates and governments make better, faster, and more informed decisions. The message that emerges from this synthesis is clear: when managed well, ocean resources have the potential to simultaneously support thriving ecosystems, sustainable development, and increased fishing profits. But human impacts are swiftly pushing the ocean to its brink. There are many issues of interest in this guide. For our foundation, three topics in particular strike us as essential for the future health of our ocean: tackling overfishing caused by illegal, unregulated and unreported activities; mitigating and addressing the effects of climate change on the ocean; and improving our scientific capacity to understand and manage all of these compounding pressures.

Financing marine conservation tourism: Governing entrance fees in Raja Ampat, Indonesia

Atmodjo E, Lamers M, Mol A. Financing marine conservation tourism: Governing entrance fees in Raja Ampat, Indonesia. Marine Policy [Internet]. 2017 ;78:181 - 188. Available from: http://www.sciencedirect.com/science/article/pii/S0308597X17300106
Freely available?: 
No
Summary available?: 
No
Type: Journal Article

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.

Protecting Our Marine Treasures: Sustainable Finance Options for U.S. Marine Protected Areas

Anon. Protecting Our Marine Treasures: Sustainable Finance Options for U.S. Marine Protected Areas. Marine Protected Areas Federal Advisory Committee; 2017. Available from: http://marineprotectedareas.noaa.gov/fac/products/mpa-fac-external-finance-report-jan-2017.pdf
Freely available?: 
Yes
Summary available?: 
No
Type: Report

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. 

Guide to improving the budget and funding of national protected area systems. Lessons from Chile, Guatemala and Peru, July 2012 – April 2014

Flores M, Bovarnick A. Guide to improving the budget and funding of national protected area systems. Lessons from Chile, Guatemala and Peru, July 2012 – April 2014. UNDP; 2016. Available from: http://www.latinamerica.undp.org/content/rblac/en/home/library/poverty/guide-to-improving-the-budget-and-funding-of-national-protected-.html
Freely available?: 
Yes
Summary available?: 
No
Type: Report

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.

Designing and financing optimal enforcement for small-scale fisheries and dive tourism industries

McDonald G, Mangin T, Thomas LR, Costello C. Designing and financing optimal enforcement for small-scale fisheries and dive tourism industries. Marine Policy [Internet]. 2016 ;67:105 - 117. Available from: http://www.sciencedirect.com/science/article/pii/S0308597X16000476
Freely available?: 
No
Summary available?: 
No
Type: Journal Article

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.

Sustainable financing of Marine Protected Areas in the Mediterranean: a financial analysis

Binet T, Diazabakana A, Hernandez S. Sustainable financing of Marine Protected Areas in the Mediterranean: a financial analysis. Vertigo Lab, MedPAN, RAC/SPA, WWF Mediterranean; 2016 p. 114 pp.
Freely available?: 
Yes
Summary available?: 
No
Type: Report

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. 

Sustainable financing of Marine Protected Areas in the Mediterranean: A guide for MPA managers

Binet T, Diazabakana A, Laustriat M, Hernandez S. Sustainable financing of Marine Protected Areas in the Mediterranean: A guide for MPA managers. Vertigo Lab, MedPAN, RAC/SPA, WWF; 2015 p. 76 pp.
Freely available?: 
Yes
Summary available?: 
No
Type: Report

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”.

Marine conservation finance: The need for and scope of an emerging field

Bos M, Pressey RL, Stoeckl N. Marine conservation finance: The need for and scope of an emerging field. Ocean & Coastal Management [Internet]. 2015 ;114:116 - 128. Available from: http://www.sciencedirect.com/science/article/pii/S096456911500174X
Freely available?: 
No
Summary available?: 
No
Type: Journal Article

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.

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