One Ocean – Regenerating Fish Stocks Achieving SDG Goal 14 July 1, 2015 Financing Sanctuaries – Examples from the UNDP/GEF Ecosystems & Biodiversity Portfolio 4:55 – 5:25 PM Andrew Hudson Head, Water & Ocean Governance Programme United Nations Development Programme

Benefits and Costs of Marine Protected Areas UNDP/GEF and other examples of MPA Financing Strategies

MPA Benefits Coastal protection Species survival and reproduction Fisheries – fish size, density, biomass, species diversity Carbon storage – blue carbon % global GHG emissions Jobs, livelihoods and commerce Cultural value

Marine Protected Areas - Smart Investments in Ocean Health (WWF, 2015) Benefits exceed costs across a range of scenarios that targeted different criteria for MPA implementation to protect 10 or 30 per cent of marine and coastal areas. Economic rate of return in expanding networks of MPAs is 9 to 24 per cent, and greater than the discount rate (3 per cent) in every scenario considered Benefit-to-cost ratio of expanding MPAs to % is from 3:1 to as high as 20:1, total net benefits from $490 - $920 billion accruing over the period Under all scenarios, benefits more than triple the costs. Create 150,000 – 180,000 jobs by 2050 These are all likely underestimates due to data limitations

Costs to Achieve Aichi 10% MPAs Source: Catalysing Ocean Finance (UNDP, 2012)

Examples of MPA Financing from the UNDP/GEF Ecosystems & Biodiversity Portfolio

Partial Loan Guarantees – Croatian Dalmatian Coas t Project performed biodiversity inventories and mapped terrestrial and marine biodiversity in targeted sites in Dalmatia Led to incorporation of 50,000 ha of marine areas into the National Ecological Network All new developments now require Nature Impact Assessment to assess, avoid and mitigate impacts on biodiversity

Green Business Support Program (GBSP) Helped 83 Croatian businesses develop conservation compatible ventures - shellfish farming, eco-tourism, etc.; Partial Guarantee Loan mechanisms established with two banks; Biodiversity criteria developed accepted by these banks within their SME financing processes; 16 loans approved to biodiversity- friendly businesses; Sustainability of the GBSP strengthened via integration of biodiversity-friendly business development objectives & measures into national development strategies; Private sector investment in biodiversity-friendly businesses increased from none to US$ 19 million.

Conservation Funds – Maldives Baa Atoll Biosphere Reserve Reserve and fund established by Presidential decree To sustain livelihoods and directly benefit local communities Capitalized by GEF, government, tourism sector (resorts, safari boats, dive centres), biosphere reserve access permits Independent board of directors and Articles and Rules of Operation First in Maldives and led President to launch idea to extend concept of biosphere reserves across the country within 5 years.

User Fees – Aqaba Marine Park Aqaba (Jordan) Special Economic Zone Authority charged with: Monitoring violations on beach and sea-side area within boundaries of park Enforcement of related regulations, tourism activities and services Awareness raising of visitors and local community…….but: Park facing growing pressure from unregulated # of visitors and lack of enforcement of entrance fee system Park not financially sustainable, faced JD 1 million deficit Project helped Authority develop business plan to determine and effectively implement entrance fees needed for effective management and sustainability.

Public-Private Partnerships – Belize Barrier Reef Facilitated designation Belize Barrier Reef as a World Heritage Site and establishment 7 MPAs; comprehensive coastal area GIS system Number of cooperation agreements established with public and private sectors to underwrite MPA management costs Wildlife Conservation Society, Belize Audubon Society, Toledo Institute for Development and Environment, Southern Environmental Association, Healthy Reefs Initiative, The Nature Conservancy Expansion of the no-take zones within the country’s existing marine reserve system Scientific analyses aimed at setting priorities for no-take zones beyond these marine reserves

Cost-Benefit Analysis Brazil Pilot Conservation Units 3 No-take areas identified in pilot conservation units, to be zoned and biodiversity monitoring established. Government financial support for coastal zone protected areas increased through strategic approach that accurately defines the costs and benefits of proposed investments. Helped align government budgeting process relevant to protected areas to provide adequate funding for achievement of conservation objectives. Worked with private sector to implement new & innovative funding mechanisms to offset conservation costs of existing and pending economic development.

Debt-for-Adaptation Swap – Seychelles Seychelles – Tourism 66%, tuna 22% GDP – 88% dependent on healthy marine ecosystems Debt-swap between Government of Seychelles and its Paris Club creditors In exchange for Seychelles’ commitment to enhance marine conservation and ecosystem-based adaptation to climate change TNC investing $23 million in impact capital while raising $5 million more in grant funding to finance the deal Government will re-direct portion of current debt payments from external creditors to fund conservation activities including the creation and management of up to 400,000 km 2 of their EEZ as MPA Government’s goal 30% of the EEZ to be in MPA, including up to half as “no take” areas, or 15% of EEZ In 20 yrs endowment capitalized pays out $1.9 million/yr MPA operational costs

Global % MPAs tripled , need to triple again => Aichi Can we maintain accelerating trend of MPAs to get from here…

….to there?