National Environmental Funds as a Tool for promoting Conservation Fondo Mexicano para la Conservación de la Naturaleza, AC Latin American and the Caribbean Network of Environmental Funds

Overall Approach to Conservation Finance: National Environmental Funds (NEFs) Are innovative mechanisms for the long-term financing of initiatives such as: –sustainable use of natural resources –direct biodiversity conservation efforts –prevention and reduction of pollution –and training and strengthening of civil society

They can build an endowment from: governments and/or donor agencies grants proceeds from debt-for-nature swaps taxes and designated fees for conservation grants from private foundations and individuals National Environmental Funds (NEFs) or operate with sinking funds that can be donor- labeled or NEF discretional (or both)

They are one of the best tools for conservation because they: address long-term issues manage funds and provide technical support with relative simple private to private schemes National Environmental Funds (NEFs)

Rely on an organized civil society able to implement activities Have in most countries an active government support and broad base community participation Apply rigorous record keeping, transparency and reliable systems of management and auditing National Environmental Funds (NEFs)

Number of NEF incorporated by year Latin America and the Caribbean

Number of NEFs Operating in the Region

Private, Public and Hybrid NEFs in the Region private 24% hybrid 20% public 56%

Capitalization Level of NEFs in the Region < 1 MMUS 21% 1-10 MMUS 38% MMUS 4% > 50 MMUS 8% MMUS 29%

Annual Budget & Combined Endowment Level for NEFs in LAC Total endowment funds of FANs in LAC – US$150 million (in 2000) Combined annual budget exceeds US$70 million These figures are insignificant compared to the extent of the challenge but encouraging based on the organizational increase

LAC NEF’s Scope of Work Protected Areas 19% Combined agenda 66% Green 15%

NEF’s Perspectives and Challenges Capacity assessment and institutional strengthening at a regional and national (local) level Research and development model for larger scale private sector and government implementation Link between private and public interests Environmental policy and mainstreaming effort

Capacity Assessment and Institutional Strengthening at a Regional and National (local) Level RedLAC Mexican Conservation Learning Network Program components –Organizational capacity assessment –Training –Information management

Research and Development Model for Larger Scale Government Implementation Protected areas management schemes Sustainable use of biodiversity Fire prevention Community based eco-tourism

Link between Private and Public Sectors Fishing industry Forestry industry Media and communication efforts Financial and insurance sector

Environmental Policy and Mainstreaming Effort Link between applied science and environmental policy Implementing agent between Multi/Bi donors and local governments Recipients of user fee pilot projects

México´s biodiversity diagnose (Estudio de País) National strategy for the conservation of biodiversity. CONABIO priority sites Protected areas system Watersheds Focus of Conservation Finance Program of FMCN: Geographic

Direct conservation activities Research for conservation Sustainable use of natural resources Capacity building / institutional strengthening Environmental education and communication Focus of Conservation Finance Program of FMCN: Thematic

Capital campaign phase I (58 mm) Capital campaign phase II (42 mm) (30 mm already committed) Direct fund-raising for earmarked funds Other mechanisms Focus of Conservation Finance Program of FMCN: Funding Sources

Conservation program (open call for proposals) Protected areas program Fire prevention program Mexican Learning Conservation Network FMCN - NWF “Environmental Education Initiative” FCEA (Environmental Communication and Education Fund) NV-WRI-FMCN “Investors Forum” RedLAC Current and Planned Portfolio

Personnel Finance and Operations Department Executive Director Conservation Department Natural Protected Areas Department Communications Department Executive Secretary RedLAC Mexican Conservation Learning Network Delivery Systems: Staffing

Committees General Assembly Board of Directors Evaluation International Consultative Committee Fire Prevention Natural Protected Areas Personnel Finance Delivery Systems: Expertise

Conservation directory Conservation project database SIEVI IMAC Delivery Systems: Tools

Communication skills Marketing skills Profitable and sustainable community projects Delivery Systems: Gaps

Donor market surveys Case studies of environmental services and user fees projects Reduction of red tape and bureaucratic with bi- and multi- lateral donors Role in Conservation Finance Alliance: Needs

GEF large donations experience Asset management know how Networking at a national and regional level Role in Conservation Finance Alliance: Contributions