Date post: | 07-Jan-2017 |
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Environment |
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www.ieep.eu @IEEP_eu
Innovative mechanisms for financing biodiversity conservationInsights from Europe
Daniela Russi, Andrea Illes, Marianne Kettunen & Driss Ezzine-de-Blas16 December 2016Cancun, Mexico / CBD COP13 side event
With Funded by
www.ieep.eu @IEEP_eu
Taxes, tax incentives, fees and charges
(public)
Relatively commonBut only few examples focused directly on biodiversity
PES (public, private & hybrid)
Mostly public financeLocal or regional scaleKey focus agricultural & water catchments
Investment sector (private)
Increasing interest & focusNatural Capital Financing Facility (NCFF) by EIB & EU pioneering the approach
Offsetting (public)
Controversial and not widely used in practicePioneered in Germany, France, the UK and Sweden
Ecological fiscal transfers (public)
New approachOperational only in PortugalIncentives conservation at local level
Business sector (private)
Increasing interestFocus on sharing best practice and experiences
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• Purpose: Compensate lower-tier governments cover their expenditure in providing public goods and services related to biodiversity conservation
• 2007: Idea was pushed by the Ministry for the Environment and accepted by the Ministry of Finance
• Protected Areas & Natura 2000 5% (mun. < 70%) - 10% (mun. > = 70%). Share of Ecological Component on Total Municipal Revenues: 18%
• 1995-2008: + 4 Reg PA• 2008-2015: + 6 Reg PA
Example: Natural Ecological Fiscal Transfers (Portugal)
Example: Natural Capital Financing Facility
• European Investment Bank (EIB) and EU• Pilot phase: EUR 125 million / 3 years in 2014-
2017 (with possible extension)• Debt and equity financing, direct and
intermediated funding• Project types: GI, PES, offsets, pro-biodiversity
and adaptation businesses• Some promising projects in the pipeline but
most project are still immature• Challenge: natural capital deal flow is still
absent→ Not yet enough suitable, large enough
projects (min. EUR 5-15 million)→ How to measure and monitor return?
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Example: Mondelēz International
• Harmony Charter – initiative on sustainable agriculture and biodiversity protection
• Paying premium to wheat producers who commit to improving their production standards (PES)
• Min 3% of every Harmony wheat field dedicated to chosen flowers or hedges
• Covers more than 2000 farmers in Europe and supplies 75% of west European biscuit volume
• A label is put on the products (certification)
→ Resulted in 22% reduction in pesticide use on average in France
→ Increased sales and is well perceived by consumers
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Conclusions & reflections from Europe
• Increasing experience in PES development and implementation (pollination services, +certification)
• Cautious attitude to and several development needs for offsetting
• Momentum behind environmental fiscal reform (e.g. EFTs) – but still limited direct buy in by Member States
• Public-Private emerging initiatives for investor involvement and impact investment (e.g. EIB / NCFF)
• Private impact investment: PES + Green markets
• PolicyMix: Need to consider how IFMs can work together with “traditional” public financing instruments
Reflections Mexico vs. Europe
• Decentralized PES (Matching Funds): Attracting new investments and stakeholders (=~NCFF for biodiversity investment)
• Continued impact evaluation of the national program of PES: Improved targeting and efficiency of public spending along the last 10 years
• New partnerships between NGOs and sustainable business coachers: New investment opportunities (=impact investment projects)
www.ieep.eu @IEEP_eu
Thank you!
Daniela Russi [email protected] Andrea Illes [email protected]
Marianne Kettunen [email protected] Ezzine-de-Blas [email protected]