SUSTAINABLE FINANCE FOR MARINE PROTECTED AREAS

Katia KarousakisBiodiversity Team LeaderOECD Environment Directorate

IDDRI GIZ, IUCN-France side-event on Innovative financial mechanisms for biodiversityWednesday 14 December 2016CBD COP13

Overview

• Current and projected pressures on marine ecosystems

• The role of Marine Protected Areas

• Sustainable financing of MPAs

Pressures on marine ecosystem services and biodiversity

• Over-fishing

• Pollution

• Habitat degradation

• Climate change

• Invasive alien species

The future of the Ocean Economy…Total ocean industry value-added expected to double by 2030

0

200 000 000 000

400 000 000 000

600 000 000 000

800 000 000 000

1000 000 000 000

Overview of industry-specific value-added in 2010 and 2030

20102030

Source: OECD (2016) The Ocean Economy to 2030

Policy instruments for marine biodiversity conservation and sustainable use

Regulatory (command-and-control) instruments Economic instruments Information and

voluntary approaches

Marine protected areas Taxes, charges, user fees (e.g. entrance fees to marine parks)

Certification, eco‑labelling (e.g. MSC)

Marine spatial planning Individually Transferable Quotas for fishing

Negotiated voluntary agreements, such as public‑private partnerships     

Spatial and temporal fishing closures; limits on number and size of vessels (input controls); other restrictions or prohibitions on use (e.g. CITES)

Reform of harmful subsidies - and use of subsidies to promote marine conservation and sustainable use

Catch limits or quotas (output controls)

Payments for Ecosystem Services

Standards (e.g. MARPOL for ships); bans (e.g. dynamite fishing)

Marine biodiversity offsets

Licenses e.g. aquaculture and offshore windfarms Non-compliance penalties

Planning requirements e.g. EIA and SEA Fines on damages

Financing of marine protected areasFinancing Domestic govt budget

Often the main source of finance in many developed countries

External devt finance

Often a substantial source of finance in many developing countries

Trust funds Several trust funds have been established e.g., Belize, Mexico and Mauritania

User fees (e.g., entrance fees)

Often a substantial source of MPA finance in a number of MPAs. Entrance fees used in Australia, Mexico, Belize, Thailand and the Galapagos Islands in Ecuador

Taxes and fines

France (1995 Barnier Act). Tax on maritime passenger ships protected areas – with earmarked revenue

Subsidies MPAs can enhance fisheries by protecting nursing groundsPES A few examples in marine context – e.g., sea turtles in

Tanzania, grey whale habitat protection MexicoSource: OECD (2017) Marine Protected Areas: Economics, Management and Effective Policy Mixes.

EU payments to Mauritania and Guinea Bissau for MPAs under the Fisheries Partnership Agreement

• In Mauritania and Guinea Bissau, conservation trust funds (CTFs) created to provide sustainable financing to MPAs, including from the EU through Fisheries Partnership Agreements

• Lobbying efforts by environmental NGOs to link the economic benefits to fisheries of well-functioning ecosystem services helped mobilise finance for conservation trust funds for MPAs

Source: OECD (forthcoming 2017), Overcoming Barriers to Effective Biodiversity Policy Reform. OECD Publishing, Paris. [Policy Highlights available]

• Challenge: In the case of Mauritania, wavering political support threatens long-term stability of the CTF. Early momentum to establish financing arrangements has dissipated due to competition for scarce financial resources and shifting government priorities

Key messages for more effective MPAs (with focus on finance elements)

• Need to scale up finance but also need to make existing finance more cost-effective

Better understanding of costs and benefits Effective siting of MPAs to address pressuresMPA management plans to include MPA

financing strategy More robust monitoring and reporting

(including on finance) Enhanced compliance and enforcement

Source: OECD (forthcoming, 2017) Marine Protected Areas: Economics, Management and Effective Policy Mixes.

Thank you!

OECD work on biodiversity and ecosystems:Biodiversity Indicators, Valuation and Assessment

Economic Instruments, Incentives and Policies for BiodiversityBiodiversity Finance, Development and Distributional Issues

Other relevant OECD reports: • Marine Protected Areas: Economics, Management and

Effective Policy Mixes (OECD, forthcoming 2017) [Policy Highlights available]

• Overcoming Barriers to Effective Biodiversity Policy Reform (OECD, forthcoming 2017)

• The Ocean Economy in 2030 (OECD, 2016)• Green Growth in Fisheries and Aquaculture (OECD,

2015)• Biodiversity Policy Response Indicators (OECD ENV WP

No. 90, 2015)• Scaling Up Finance Mechanisms for Biodiversity

(OECD, 2013)

Visit: www.oecd.org/env/biodiversityhttp://www.oecd.org/environment/resources/mainstream-biodiversity/