1. Scorecard for financial sustainability of national protected area systems Helen Negret Valuing and Financing Protected Areas Workshop Bogota, November 2009, Financial Sustainability of National PA Systems -Applying the UNDP PA finance scorecard in LAC

2. Scorecard for financial sustainability of national protected area systems Why UNDP is working on PA financing? What is sustainable PA financing? What is the “Financial Sustainability Scorecard for National Systems of Protected Areas”? Use of PA Financing Scorecard in LAC – partnership with TNC Next steps Issues include:

3. Scorecard for financial sustainability of national protected area systems Protected areas provides services vital to development (national, sectors, local communities) Long engagement with countries in LAC for conserving biodiversity and ES through protected areas Short term success at site level but concerns over sustainability Long-term financing systems are key for PA sustainability –premise is increased resources: increases management effectiveness: increases conservation; aids development– UNDP convening role: PA financing needs work across sectors (PA agencies, Finance Ministry, Tourism etc.); across all stakeholders (private sector/ donors/ NGOs) and good governance (transparency, accountability, empowerment) UNDP work and PAs

4. Scorecard for financial sustainability of national protected area systems Sufficient and predictable revenue/ resources to meet total protected area management costs for all PAs to meet their conservation objectives Total costs : Recurrent (operations) and investment PA sites per se Buffer zone management/ corridor management System operations What is Sustainable Finance of a PA system?

5. Scorecard for financial sustainability of national protected area systems What should be considered: Supply and Demand PA financial sustainability needs to be addressed from both sides of the financial equation “Supply" challenge of generating more revenue “Demand" side challenge of accurately defining PA financing needs (at sites and at the system level ) Systematic process of defining costs and identifying ways to meet those costs constitutes financial planning Good financial planning enables PA managers to Make strategic financial decisions Identifying appropriate cost reductions and potential cash flow problems Engage in policy negotiations with credible data and understandable language

6. Scorecard for financial sustainability of national protected area systems What are the elements needed for assessing sustainable financing? Financial data that quantifies both the supply and the cost sides of the equation Analysis of why these figures are as they are What are the underlying reasons for those figures? What are the constraints for improving them? What are the structural and foundation elements required for changing them?

7. Scorecard for financial sustainability of national protected area systems UNDP Scorecard for financial sustainability of national protected areas systems A tool that enables: a systematic assessment of the status of financial sustainability; identifies key weaknesses and opportunities for action measure progress over time towards sustainability

8. Scorecard for financial sustainability of national protected area systems Benefits of Using PA Financial Scorecard To supply biodiversity professionals with factual data to demonstrate system weaknesses to decision-makers To holistically review, assess and track the evolution and improvements in country’s PA financial situation To bring partners and government professionals together to raise awareness, share knowledge, jointly review and agree areas for improvement To help implement CBD PoWPA, especially Goal 3.4 Financial Sustainability

9. Scorecard for financial sustainability of national protected area systems What is in the scorecard? Part I: Overall Financial Situation Part II: Assessing elements of the Financing System Component 1: Legal, regulatory and institutional framework Component 2: Business Planning and tools for cost- effective management Component 3: Tools for revenue generation Part III: Scoring and Measuring Progress

10. Scorecard for financial sustainability of national protected area systems Part I: Quantitative Financial Data Introduction: PA types, numbers and coverage All available funds: government budget + donors + own PA revenue Actual expenditure : actual disbursements in a given year for operational and investment costs How much ideally is needed? : basic scenario and optimal scenario Deficit? For different scenarios 2 (?)

11. Scorecard for financial sustainability of national protected area systems Part II: Qualitative scores Component 1: Assessing legal and regulatory framework legal framework for PAs to generate, retain and share revenue alternative management options such as funds, concessions, co- management, private reserves national financial strategies including economic valuation of PA resources, strategic vision, Treasury policies, clarity of institutional mandates and inter-institutional cooperation staffing profiles and incentives for PA managers

12. Scorecard for financial sustainability of national protected area systems Part II: Qualitative scores Component 2: Business and other planning site-level management and business plans cost effectiveness guidance efficiency and transparency of auditing and reporting training, capacity building and learning opportunities

13. Scorecard for financial sustainability of national protected area systems Part II: Qualitative scores Component 3: Tools for revenue generation Types of resource user fees at work? Fees collected? PAs engage in marketing and communications? Payment for Ecosystems & concessions - at work? New opportunities from REDD Assessments and capacity in system to develop pilots and scale up

14. Scorecard for financial sustainability of national protected area systems Part III: Measure score progress Total possible score from Part II is 196 Give the actual Part II score and calculate the percentage of 196. What was the percentage last year – doing better or worse?

15. Scorecard for financial sustainability of national protected area systems Financial scorecard: summary of results

16. Scorecard for financial sustainability of national protected area systems Component 1 Score Governance frameworks that enable sustainable PA financing 11,9 15,9 0,0 16,7 16,0 23,8 14,3 38,1 15,9 0 25 50 75 100 Element 1 – Legal, policy and regulatory support for revenue generation by PAs Element 2 - Legal, policy and regulatory support for revenue sharing within the PA system Element 3 - Legal and regulatory conditions for establishing endowment or trust funds Element 4 - Legal, policy and regulatory support for alternative institutional arrangements for PA management Element 5 - National PA financing strategies Element 6 - Economic valuation of protected area systems Element 7 - Improved government budgeting for PA systems Element 8 - Clearly defined institutional responsibilities for PA management and financing Element 9 - Well-defined staffing requirements, profiles and incentives at site and system level Elements Actual Score / TPS (%)

17. Scorecard for financial sustainability of national protected area systems LAC experience to date Initial application as part of GEF project processes 2008 Regional partnership UNDP-TNC 2 sub-regional workshops (South America and Meso America) Buy-in and agreement of 19 countries to apply the scorecard National 2 day workshops preceded by support with data collection and exchanges with experts (330 trained) Completion of scorecards via exchange and consultation Presentation of initial results to Forum of Ministers of Finance in CEPAL

18. Scorecard for financial sustainability of national protected area systems LAC experience to date Completion of Regional Report on the Financial Sustainability of PA systems Overall trends in region Highlight strengths and weaknesses Identify best practices for more in-depth analysis Enable countries to see what is possible in the region Guide regional initiatives and investments to key issues

19. Scorecard for financial sustainability of national protected area systems Next steps UNDP is promoting the application of the Scorecard globally with partnerships with TNC, IUCN, WCPA and GEF (new version for GEF 5) In LAC and with TNC in 2010 will facilitate the use of the report to catalyze policy discussions & promote budget increases at national levels Link with the BD valuation and equity report to further strengthen policy negotiations Mobilise resources for targetted studies/support on key issues such as CC and PA interfaces (strategies and costs); data collection and cost effectiveness

20. Scorecard for financial sustainability of national protected area systems 20 For further inquires : UNDP Andrew Bovarnick : andrew.bovarnick@undp.org Helen Negret : helen.negret@undp.org Patricia Perez: patricia.perez@undp.org TNC Lila Gil: lgil@tnc.org : We look forward to working with you !