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The role of economic instruments in the context of biodiversity related MEAs Presentation on the basis of a report prepared by Nicola Borregaard Matthew Stilwell Beatriz Bustos 17-18th of February 2003 Geneva Division of Technology, Industry and Economics- Division Technologie, Industrieet Economie - División de tecnologia, industriay economia Content Division of Technology, Industry and Economics- Division Technologie, Industrieet Economie - División de tecnologia, industriay economia 1. Introduction 2. The role of economic instruments in the context of biodiversity related MEAs 3. References to economic instruments en selected MEAs 4. Lessons learnt in the use of EIs to implement selected biodiversity related MEAs 5. Conclusions – Prospect for enhanced use of EIs 1. Chapter: Objectives Division of Technology, Industry and Economics- Division Technologie, Industrieet Economie - División de tecnologia, industriay economia • How can EIs be used (more effectively) for biodiversity protection? • How have EIs been approached in MEAs? • How can a more comprehensive perspective on the use of Eis help biodiversity protection? • Which synergies exist to be taken advantage of in the different MEAs? Chapter 2: Which EIs for Biodiversity Protection? Division of Technology, Industry and Economics- Division Technologie, Industrieet Economie - División de tecnologia, industriay economia • Property rights – Conservation easements – Communal property rights • Market creation – Ecolabeling – CO2 sequestration offsets – Tradable development rights • Charges – Entrance fees – Concession payments for tourism, hunting, fishing Chapter 2: Which EIs for Biodiversity Protection? Division of Technology, Industry and Economics- Division Technologie, Industrieet Economie - División de tecnologia, industriay economia • Fiscal instruments – Tax exemptions or tax deductions – Differential land use tax • Environmental Funds and financial mechanisms – National environmental funds – Soft credits – Biodiversity investment funds • Liability system – Fines – Performance bonds Division of Technology, Industry and Economics- Division Technologie, Industrieet Economie - División de tecnologia, industriay economia Chapter 4: How to increase the effective use of EIs to implement biodiversityrelated MEAs 1. Thematic areas for the use of EIs 2. Supporting the introduction of EIs for biodiversity protection Division of Technology, Industry and Economics- Division Technologie, Industrieet Economie - División de tecnologia, industriay economia Thematic areas for the use of EIs • • • • • • EIs for in situ conservation Raising financial resources Sustainable trade Payments for environmental services Transfer of technology Addressing perverse subsidies Division of Technology, Industry and Economics- Division Technologie, Industrieet Economie - División de tecnologia, industriay economia EIs for in situ conservation • Emphasis of conventions • Great variety of EIs applicable • Experience concentrated in the industrialized world • More analysis of more recent instruments required • More analysis regarding the compatibility between exsitu and in-situ instruments required Orcutt Grass, Sacramento Conservation Bank Division of Technology, Industry and Economics- Division Technologie, Industrieet Economie - División de tecnologia, industriay economia Raising financial resources • Often more important than incentive character of EIs • Conventions emphasize the need at national as well as at MEA level • Funds have been important instrument (more than just financial tool) • Lessons from funds that have not endured? • Innovative mechanisms The kiwi is a unique biological oddity, a Division of Technology, Industry and Economics- Division Technologie, Industrieet Economie - División de tecnologia, industriay economia Sustainable trade • Still small, but very dynamic • Relevance not only in CITES • Ecolabeling, captive breeding, geographically focused programs • Make more use of synergies and of private initiatives Community forest management in Xapuri, Brazil, FSC certified Payments for environmental services Division of Technology, Industry and Economics- Division Technologie, Industrieet Economie - División de tecnologia, industriay economia • Variety of different payments • Mention of specific services in MEAs • Little researched and used • Potential has to be analyzed • Environmental impacts as well Climate Care reforestation project in Uganda Supporting the introduction of EIs Division of Technology, Industry and Economics- Division Technologie, Industrieet Economie - División de tecnologia, industriay economia • • • • • • Valuation and EIs Integration of local communities Identification of benefits and beneficiaries Importance of bundling goods and services Role of the State Networks / training / exchange of experience Division of Technology, Industry and Economics- Division Technologie, Industrieet Economie - División de tecnologia, industriay economia Valuation and EIs • Valuation (not only economic!) important for raising consciousness and for creation of markets • MEAs have recognized this • Reminds us that Eis sould be inserted in overall strategy • Simpler techniques required Division of Technology, Industry and Economics- Division Technologie, Industrieet Economie - División de tecnologia, industriay economia Integration of local communities • Two-way relationship: • – Effective use of EIs – EIs can help integrate local communities • Importance recognized in MEAs • “Mainstreaming” of local community involvement in EIs required Campfire – Elefant in the fields Questions to the Group Division of Technology, Industry and Economics- Division Technologie, Industrieet Economie - División de tecnologia, industriay economia (beyond critique and comments) • Structure of report: – Should chapter 2 and chapter 3 be interchanged? • Chapter 4: – Are the main aspects included? – Are key sources or major initiatives lacking? – Should perverse subsidies be integrated or not? • Conclusion: – Which other aspects should be considered in the conclusion? Questions to the Group Division of Technology, Industry and Economics- Division Technologie, Industrieet Economie - División de tecnologia, industriay economia (beyond critique and comments) • For discussion: – What emphasis should be given to positive incentives? – What emphasis should be given to the market´s capacity? – Which are the areas in which there might be most need for capacity building? – The audience of the report: • Policy makers involved in MEAs, MEA secretariats, policy makers involved in biodiversity conservation, other groups involved (NGOs at national and international level, selected business) in biodiversity protection, practitioners and academics in use of economic instruments