WHY ARE WE HERE?

Biodiversity: Going, going…..

Potential “killer barriers”in the finance area Impacts of private financial flows Lack of reliable, long- term funding Conservation Success

Total funding is inadequate by an order of magnitude Nearly all conservation funding is short-term (1 - 3 years) Explosive growth of private financial flows (adverse impacts/opportunities) Ecosystem services undervalued More specifically...

Conservation Finance Programs Sustainable funding for protected areas and national PA systemsSustainable funding for protected areas and national PA systems Mechanisms to effectively channel funding to conservation activitiesMechanisms to effectively channel funding to conservation activities Pioneered some new approachesPioneered some new approaches Global impacts in just a few areasGlobal impacts in just a few areas

Lots of activity, limited collaboration Conservation Finance Conservation Finance Intergovernmental agencies Intergovernmental agencies NGOs Foundations Government agencies Government agencies Universities Private sector

Approximate numbers of deals 20+ conservation trust funds (inadequate capital) 10 conservation-oriented carbon investment projects 3 biodiversity enterprises funds (mostly small-scale) 5 water user fees 4 conservation concessions 1 national ecotourism tax 2 resource extraction fees dedicated to conservation How do we go to scale??!!

Barriers to Scaling Up Capital: Lack of seed funding for new finance projects; lack of capital for trust fundsCapital: Lack of seed funding for new finance projects; lack of capital for trust funds Tools: Lack of well-packaged information and practitioner tools for taking actionTools: Lack of well-packaged information and practitioner tools for taking action Sharing/learning: Lack of info-sharing and learning from field experienceSharing/learning: Lack of info-sharing and learning from field experience Technical support: Lack of technical support, particularly in developing countriesTechnical support: Lack of technical support, particularly in developing countries Lack of focussed collaboration

Training Guide An example of concrete synergies that can be achieved through focussed collaboration (GO TO CD ROM)

CAN A CONSERVATION ALLIANCE BE BUILT AROUND A STRATEGIC PROGRAM OF ACTION?

Purpose of retreat Preliminary Program of ActionPreliminary Program of Action General elements of MOU to formalize allianceGeneral elements of MOU to formalize alliance Identify ways other organizations can contribute to and benefit from allianceIdentify ways other organizations can contribute to and benefit from alliance

Groundrules Spirit of collaborationSpirit of collaboration Concise comments to allow others time to speakConcise comments to allow others time to speak PatiencePatience Destroy all cellphones!Destroy all cellphones! Have fun (or else)Have fun (or else)

TNC’S CONSERVATION FINANCE PROGRAM (in transition)

Staffing: size “Core Conservation Finance Staff” (at least 1/3 of their time): Appx. 14“Core Conservation Finance Staff” (at least 1/3 of their time): Appx. 14 Many others spending less than 1/3 of their time on conservation financeMany others spending less than 1/3 of their time on conservation finance

Staffing: deployment Core Conservation Finance StaffCore Conservation Finance Staff –10 in Arlington headquarters –1 in New Zealand –1 in San Jose –1 in Quito –1 in Vermont

Conservation Finance Programs Conservation Trust Funds – IPG; TA to support establishment / start-upConservation Trust Funds – IPG; TA to support establishment / start-up Water Policy Program – water valuation and water user feesWater Policy Program – water valuation and water user fees Initiative for Innovative Conservation Finance – tools, training, financial innovationsInitiative for Innovative Conservation Finance – tools, training, financial innovations Compatible Ventures Group – market tools, compatible businesses, financial innovationsCompatible Ventures Group – market tools, compatible businesses, financial innovations EcoEnterprises Fund – equity/loan/grant capital for biodiversity-friendly enterprisesEcoEnterprises Fund – equity/loan/grant capital for biodiversity-friendly enterprises

Conservation Finance Programs (continued) Ecotourism Program – visitor use feesEcotourism Program – visitor use fees Climate Change Program – forest carbon mitigation projects (pvt. sector investment)Climate Change Program – forest carbon mitigation projects (pvt. sector investment) Debt Swaps Program: TFCA focusDebt Swaps Program: TFCA focus Conservation bonds - state bond issues across U.S.Conservation bonds - state bond issues across U.S. Conservation easements (?): US and LAConservation easements (?): US and LA

Status of CF Mechanisms 5 staffEarlyECO ENTERPRISES 5 staffMatureCOMPAT VENTURES 3 staffStart upINIT FOR INNOV CF 1.5 staffEarlyWATER 4 staffMatureCTFs

Status of CF Mechanisms 1 staff (intl) 30+ staff (US)? MatureEASEMENTS/ CONSERV CONC 10 staff? (US)MatureCONSERV BONDS 2 staffMatureDEBT SWAPS 5 staffMatureCLIMATE CHANGE

Focus of CF Mechanisms Small-scale businesses (forest, farming, ranching) Conservation Beef, Grass Bank, CTIMO, Forest Bank COMPAT VENTURES Training Gde/ related tools Trainings Carbon Fund Agric. transition insurance INIT FOR INNOV CF Ecuador, Bolivia, HondurasWATER Mostly nat’l- scale, some site, MesoAmer reef Latin America Carrib, Pacific CTFs Exploring Indonesia, DR US focus to date

Focus of CF Mechanisms Latin AmericaECOENTERP FUND All US states 6 LA countries EASEMENTS/ CONSERV CONC 20 states (US) (e.g., CA and FLA) CONSERV BONDS Belize, Peru, Indonesia DEBT SWAPS Forest preserv and reforest, carbon fund Latin America, US projects. Exploring Indo, PNG CLIMATE CHANGE Ongoing in many states Private land easements - growing area for LA, strong interest to apply in AP Interest to expand in LA and to AP

Priority mechanisms (under review) CTFsCTFs Ecosystem service payments (carbon, water, tourism user fees)Ecosystem service payments (carbon, water, tourism user fees) Compatible enterprises (income gen, reduce conserv costs, enterprise funds)Compatible enterprises (income gen, reduce conserv costs, enterprise funds) Conservation concessions (broad)Conservation concessions (broad)

Priority themes (under review) Site sustainability - lasting impactsSite sustainability - lasting impacts Multi-site strategies - going-to-scaleMulti-site strategies - going-to-scale Capacity-building delivery systems (training guide, targeted tools, targeted trainings, etc.)Capacity-building delivery systems (training guide, targeted tools, targeted trainings, etc.) 5 TNC Initiatives: marine, invasives, fire, freshwater, climate change5 TNC Initiatives: marine, invasives, fire, freshwater, climate change

Gaps Delivery systems: seed fund, practical tools, targeted training, field-based finance specialistsDelivery systems: seed fund, practical tools, targeted training, field-based finance specialists Investment capital for CF mechanismsInvestment capital for CF mechanisms Capacity in resource economics and economic analysis (esp. int’l)Capacity in resource economics and economic analysis (esp. int’l) Finance strategies that engage commercial-scale businessesFinance strategies that engage commercial-scale businesses Forest policy expertiseForest policy expertise

Existing collaborations Coral Reef / MPA Initiative: TNC / CI leadership. Large, multi-year grant under discussionCoral Reef / MPA Initiative: TNC / CI leadership. Large, multi-year grant under discussion Human welfare / biodiv. integration project: TNC/WRI leadership. Large, ten-year Moore Foundation grantHuman welfare / biodiv. integration project: TNC/WRI leadership. Large, ten-year Moore Foundation grant CI / TNC science and research collaboration on conservation economics (e.g., conservation concessions)CI / TNC science and research collaboration on conservation economics (e.g., conservation concessions) Mesoamer. reef reg. trust fund - TNC and WWFMesoamer. reef reg. trust fund - TNC and WWF EcoEnterprises Fund - TNC, IDB, GEFEcoEnterprises Fund - TNC, IDB, GEF

Future collaborations Large-scale priority sites (e.g., SW Amazon, East Kalimantan, SW China)Large-scale priority sites (e.g., SW Amazon, East Kalimantan, SW China) Training Guide and targeted trainingsTraining Guide and targeted trainings Targeted events/fora: WPC, CBD, GEFTargeted events/fora: WPC, CBD, GEF Coral reef / MPAsCoral reef / MPAs Conservation concessions - Latin America and AP)Conservation concessions - Latin America and AP)