Supporting Business for B iodiversity Opportunities, constraints and requirements in development of pro-biodiversity business programme as contributing to a green economy Gabala, 5-6 July 2010 Zenon Tederko Polish Society for the Protection of Birds & Pro-Biodiversity Service Investing in biodiversity and maximising the benefits of the green economy

Supporting Business for B iodiversity 2 Presentation outline  Introduction and reaching common language  Opportunities for pro-biodiversity business development  Constraints and barriers  Recommendations and conclusions

Supporting Business for B iodiversity 3 Introduction and reaching common language (1) Major Questions  Where is the biodiversity?  What biodiversity we are concerned with?  How we want to protect it?..  How and where sustainable development takes place?

Supporting Business for B iodiversity 4 Introduction and reaching common language (2) Protected areas in Poland Protection regimekm2 % of country 23 National Parks3 285,241, Nature Reserves1 724,850, Landscape Parks25 937,588, Areas of Protected Landscape85 124,5427, Natura 2000 areas (823 ACIs SPAs) (11,0% %) 19.7

Supporting Business for B iodiversity 5 Introduction and reaching common language (3) Majority of biodiversity is the subject to economic use !!! Where then sustainable development comes true?  Is Sustainable Development an abstract category ????  If „development”, then it means economic processes !!!  SD takes place at lowest level – at farm, enterprise, household, individuals level!!!!  Sustainability level of development results from myriad of individual decisions !!!  If so, what are the key tools & instrument to influence such numerous decisions?

Supporting Business for B iodiversity 6 Introduction and reaching common language (4) Relation between economy & nature CONVENTIONAL BUSINESS RELEASE OF POLUTIONS USE OF RESOURCES AND SERVICES NATURAL ENVIRONMENT PRO-BIODIVERSITY BUSINESS SERVICES & BENEFITS FOR NATURE SUSTAIN- ABLE USE OF RESOURCES AND SERVICES NATURAL ENVIRONMENT

Supporting Business for B iodiversity 7 Introduction and reaching common language (5) NON-COMMERCIAL COMMERCIAL ECONOMIC ACTIVITIES FINANCING PUBLICCOMMERCIAL EU LOCAL BUDGETS NATIONAL BUDGET ENTERPR. IN KIND COMMER. N & I FI ENTERPR. IN CASH Commerciality of goods services flows

Supporting Business for B iodiversity 8 Definition of pro-biodiversity enterprise A pro-biodiversity enterprise is dependent on biodiversity for its core business and contributes to biodiversity conservation through that core business  Development strategy based on long term dependence on biodiversity and hence its protection  Dedicated to achieving both economic and biodiversity benefits  Primary, secondary and tertiary level of activities  Chain of custody  First of all – business, enterprise achieving income and realizing profit  Second – biodiversity opportunities and constraints = environmentally conditional -& has to deliver biodiversity benefits  Third – it s based on biodiversity and biodiversity is its indispensable component of a development strategy

Supporting Business for B iodiversity 9 Status and Opportunities (1)  Number and surface of high nature value areas, biodiversity status and richness, ecosystem services  Status of “pro-biodiversity sector” and objectives addressed to (what is now and what we want to achieve within the time deadline and budgets available)  Types and number of enterprises biodiversity/natural resources dependent  Existing and future pro-biodiversity businesses, intensified creation of new demanded businesses  Policy framework (EU policies and communications, SDS, Lisbon and Europe 2020 Strategies)  International commitments – Millennium Goals, Earth Summit Johannesburg, CBD Decisions  Enterprises tend to differentiate themselves upon environment and biodiversity concerns  People tend to value nature as determining quality of life and are more ready to pay for.  Promotion of “green business” and development of new jobs in rural areas.  High nature value areas management costs are reduced by growth of suitable SME business operations.

Supporting Business for B iodiversity 10 Status and Opportunities (2) As pro-biodiversity business is biodiversity based the major opportunity is the biodiversity itself The more biodiversity the more opportunity !  Up to 25% of EU  km 2  Over 25,000 sites  Unattainable annual management costs: €6 - €10 billion for EU27

Supporting Business for B iodiversity 11 Status and Opportunities (3)  A series of business sectors have been identified that use biodiversity as a resource  SMEs are active in all key ecosystems  Many SMEs use biodiversity as their primary resource  Many SMEs operate within Natura 2000 sites and protected areas

Supporting Business for B iodiversity 12 Status and Opportunities (4)

Supporting Business for B iodiversity 13 Status and Opportunities (5)

Supporting Business for B iodiversity 14 Size structure of potential PBBs in Poland Status and Opportunities (6)

Supporting Business for B iodiversity 15 Constraints and Barriers (1)  Pro-biodiversity business - is it a matter of choice or public strategy to effectively support/add the nature conservation sector?  Weak and ineffective enabling framework  Approach and behavior towards business, language and knowledge format  Lack of transparent set up – protection and management plans, lack of “business opportunity” plans, regional strategies, spatial development  Investment risk and uncertainty, unpredictable changes in policies, regulations and administrative/fiscal practices  Number and size of enterprises, scattered and remote distribution  Miscommunication of Natura is often seen as being „bad for business and bad for development”.

Supporting Business for B iodiversity 16 Constraints and Barriers (2)  The lack of practical know-how within both the SMEs and the financial institution sector with regard to the potential of enterprise development in N2000 sites and the natural conditions affecting investment projects  The banking sector’s disregard of the market niches of SMEs that depend on natural resources and are located in high natural value areas  The high risk to investments caused by a lack of management plans for N2000 sites and a lack of protection plans for other areas  A lack of professional advisory services or tools for the identification and assessment of commercial investment projects in N2000 sites, which could ensure positive economic as well as nature outcomes  A lack of access to funding sources and suitable financial instruments as well as a lack of procedures that are friendly to SMEs

Supporting Business for B iodiversity 17 Preconditions and R equirements (1)  Supportive enabling framework and incentives oNational/regional/local governments and self-governments have to want to develop green economy oIntegration of sectoral policies and strategies on all levels oIntegration of instruments and available resources within rural development policies/strategies oTime and costs effective EIA framework and procedures oProviding financial incentives for enterprises and farmers – grants, preferential loans/credits, micro-credits, loan insurance/guarantee schemes, green taxes, oL ocal governments/self-governments welcoming green investments by creating special pro-biodiversity economy zones, tax vacation zones, providing required information, feasibility studies, demand studies, laying infrastructure

Supporting Business for B iodiversity 18 Preconditions and R equirements (2)  Building on local/regional natural and cultural heritage  Using legal and certification framework of local/regional products  Developing local/regional business strategies and providing complete offer – goods and services  Purposeful efforts to creation or expansion of pro- biodiversity investments market niche  Specificity of pro-biodiversity entrepreneurship and building pro-biodiversity entrepreneurs  Knowledge transfer and technical assistance

Supporting Business for B iodiversity 19 Preconditions and R equirements (3)  Development framework - knowing where one can do what –Ecological network framework – ECONET, PEEN, Natura 2000 –Protection/management plans –Spatial development plans –Rural development plans –Ecosystem based approach, business opportunity plans followed by incentives system

Supporting Business for B iodiversity 20 Preconditions and Requirements (4)  Merging biodiversity and financial expertise  Using pool of existing information & knowledge  Providing biodiversity expertise in a format accessible for business  Using a bespoke methodology for identifying and prioritizing potential pro-biodiversity businesses  Innovative and visionary approach approach, financial mechanisms, creating clusters  Creating new type of innovative and knowledge based entrepreneur

Supporting Business for B iodiversity 21 Preconditions and R equirements (5)  Accessible and attractive preferential loans to SMEs for development of pro-biodiversity investments  Incentivised finance and technical support for banks  Advisory service providing technical assistance that connects SMEs, site managers and banks  Natura PA management prescriptions from which investment criteria can be developed

Supporting Business for B iodiversity 22 Conclusions (1)  Innovative thinking much desired !!!  Variety of business opportunities and sustainable use options available  Need for involvement of pro-biodiversity small and medium enterprises (SMEs)  Meeting decisions and resolution on private business involvement into biodiversity protection

Supporting Business for B iodiversity 23 Conclusions (2)  SMEs are an essential element of rural economies and are key to long-term Natura 2000 & PA management.  Pro-biodiversity business activities help to implement and maintain Natura 2000 & PA.  Preferential SME loan facilities are proven to encourage specific desired business development.  Financial crisis is an opportunity to develop a highly transferable and innovative “green business stimulus”  EU 2013 – 2020 financial perspective should offer significantly more pro-biodiversity business development opportunities..

Supporting Business for B iodiversity 24 Conclusions (3)  Pro-biodiversity business is not a step back but challenge of the immediate future  It is innovative and knowledge based approach, hence well suiting objective of Europe 2020 strategy  It requires approach in terms and scale of rural development and consequently integrating policies and instruments of various sectors and policies  PBBs are not a domain of nature conservation only and reflect process if integrating biodiversity concerns into daily practices on enterprise and farm level

Supporting Business for B iodiversity 25 Conclusions (4)  Integration of biodiversity into sectoral policies and practices remains still much valid ……….but  Educating, motivating and empowering local decision makers and environment users at lowest level is equally important  In steadily deepening European democracy community based management is more important than ever before  Public-private partnership is a key word for „beyond 2010”  Supporting development of pro-biodiversity business is the tool to protect biodiversity beyond Protected Areas

Supporting Business for B iodiversity 26 What are the key SME business sectors?

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Supporting Business for B iodiversity Thank for your attention !!!