3. ManufacturedCapital FinancialCapital HumanCapital The issue, in no uncertain terms…

4. Natural Capital (earth’s natural resources and life support systems) Human and Manufactured Capital (civilization)

7. ManufacturedCapital FinancialCapitalNaturalCapital HumanCapital Our challenge: halt the erosion of natural capital and achieve balanceManufacturedCapital FinancialCapital HumanCapital

9. A tiny glimpse at Costa Rica’s natural capital

10. Illustrate tropical forests’ role as “water sponges” and tie in to concept of natural capital/natural life support systems; use photo of water drop from Alvaro

11. The forest is a sponge…

12. ManufacturedCapital FinancialCapital HumanCapital The erosion of Costa Rica’s natural capital…

14. ManufacturedCapital FinancialCapitalNaturalCapital HumanCapital But starting in the `70s, Costa Rica took on the challenge…

16. 1970: the beginning of change

20. Land acquisition loans Ecological interest in lieu of monetary interest Strengthen natural capital stock via these eco-interest payments Empower local communities Promote the “bigger picture” (access to water is more than simply maintaining pipelines and storage tanks) Revolving eco-loan capital Eco-financing in practice: ECOLOGICAL LOANS

21. Community Water Management Associations Members: The entire community Administrative Board: Volunteers from the community Admin: Volunteer or paid staff Plumber: Usually paid staff, but may be volunteer So who are the eco-loan borrowers?

23. National Park of the Water Eastern Sector of Upper Balsa Watershed “Paso de las Nubes” Proposed Biological Corridor

24. Eco-Lending to date… ~$350,000 in eco-loans made since mid-2007 packaged together with ~$100,000 in equity financing 450 acres in NEW, community-owned protected areas Avg. of <$1,000/acre including closing costs Directly benefiting population of 7,300 (~40% of Balsa watershed)

25. … restoring … …documenting… …educating. Communities paying ecological interest… Interest paid to date… Over 2,000 person-hours spent planting, maintaining, monitoring, documenting, etc. Various community-run tree nurseries established Almost 3,000 “catalyst” trees strategically planted (including 800 produced by communities themselves) to help jumpstart the natural regeneration process Several dozen organized educational activities –Outings to restoration sites by community residents –Presentations at community meetings –Water quality monitoring –Cloud forest visits by school children

27. Next Steps $500,000 over next 2 yrs 10 additional eco-loans 650-800 additional acres Promote PEF/eco-lending by others beyond Balsa Replicable and “Open Source”

31. Local communities addressing several issues at once… Water & Watershed Mgmt. Other Environmental Services Climate Change Soil Productivity Land-Use Capacity Biodiversity & Buffer Zones Community Ecosystems Made possible with philanthropic ecological financing

32. Many Thanks