RedLac Capabity Building

8/3/2019 RedLac Capabity Building

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Scaling up Conservation Finance

A RedLAC Initiative to build capacity

in market solutions for

biodiversity conservation

July 2010


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Contact Information:

RedLAC Latin American and Caribbean Network of Environmental Funds

Based at Funbio Brazilian Biodiversity Fund*

Largo do Ibam, 1 6o andar Rio de Janeiro

22271-070 - Brazil

Camila Monteiro

[email protected]

+55 21 2123 5305

Local partner contacts are listed for each country in Annex 1.

*RedLAC is not a registered corporate entity. It is legally represented by the individual trust fund thatchairs the network, via its Presidency and Executive Secretariat. These are designated by the RedLAC

Assembly every two years and have a maximum mandate of up to four years. The Brazilian Biodiversity

Fund, Funbio, currently holds this seat, with its mandate extending through 2012. RedLAC can also be

represented by any of its members, on an as needed basis, as long as this decision is approved by the

networks General Assembly and Executive Council.


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I. Executive SummaryOver the last fifteen years, Conservation Trust Funds (CTFs1) have been set up in more than 50

developing countries in Latin America, the Caribbean, Africa and the Asia Pacific regions. CTFs have

been recognized as one of the most efficient mechanisms to ensure the long-term support of

biodiversity conservation programs and protected area systems as demonstrated by their ability to

mobilize significant financial resources from a variety of sources and to involve a diverse set of

stakeholders in the implementation of biodiversity conservation and sustainable management

conservation programs.

CTFs are increasingly seen as the choice strategic partners for taking advantage of emerging fundingopportunities for biodiversity conservation and for contributing to the implementation of national

conservation policies. In 1999, a regional network of trust funds - RedLAC2 was established to

enhance learning, collaboration and best practice sharing in conservation finance among trust funds in

Latin America and the Caribbean. RedLACs broader goal is to support increased efficiency and

effectiveness in resource allocation and to enhance impacts in biodiversity conservation in the region.

RedLAC has identified the evolving opportunities around market based instruments and their potential

to provide lasting and integrated solutions to the pressures that threaten biodiversity, while also

offering new resource streams for biodiversity conservation. Recognizing the strategic position of itsmembers, RedLAC is positioning itself to enhance the knowledge and operational capacity of CTFs to

provide innovative solutions in conservation finance. To do so, RedLAC proposes to utilize the existing

knowledge and best practices of its members to enhance and improve CTF capacity in topics related to

market based financial mechanisms, such as global carbon markets (REDD type mechanisms) and other

payment for ecosystem services mechanisms.

Aimed at scaling up biodiversity conservation programs and providing a solid financial platform for

1

CTFs are flexible structures that raise as well as invest funds in grant programs targeted at a variety of partners non-governmental organizations (NGOs), community based organizations (CBOs), and governmental agencies (such as nationalparks) acting as financing mechanisms rather than implementing agencies. They serve to strengthen civil society, and tomake protected area management agencies more transparent, accountable and effective. More recently, CTFs have alsoserved as catalysts in the creation of new partnerships with private businesses bringing new resources to biodiversityconservation programs.

2RedLAC is the Latin America and Caribbean Network of Environmental Funds. Currently made up of 19 CTFs from the

region, its mission is to set up an effective system of learning, strengthening, training, and cooperation through a Networkof Environmental Funds aimed at contributing to the conservation and sustainable use of natural resources in Latin Americaand the Caribbean. For more information, please visit: www.redlac.org


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implementing lasting programs, RedLAC is seeking support from donors that see CTFs as effective

mechanisms to structure a capacity building and grants program focused on innovative financial

mechanisms and enhancing the operational capacity of CTFs.

This initiative is structured around the following three major components:

1. Capacity Building for Conservation Trust FundsOpen workshops with experts, based on RedLACs funds best practices, focused on sharing knowledge

and delivering cutting edge technical capacities to implement innovative financial mechanisms, as well

as funds establishment requirements and operational practices.

2. Competitive Grants Facility to encourage CTF pilot programs on innovative conservation financeschemes.

Implement a competitive grants facility to co-finance innovative mechanisms within CTFs existing

funding portfolios. Grants would contribute start-up costs for new initiatives, such as the development

of a business plan and market viability study, hiring new staff or consultants, developing operational

manuals, and benefit sharing solutions with on the ground partners.

3. RedLACs Organizational Development

Establish an operational support structure to coordinate capacity building activities, complementing

the current structure of RedLACs Executive Secretariat.

A description of the strategy for delivering each of these components is spelled out in the subsequent

sections of this concept paper. A total of about US$ 3.85 million will be invested over three years

(2010-2013) to directly support the involvement of all RedLAC funds in 13 countries from the region as

well as of about 10 to 15 funds in Africa.

Of the total programs costs, RedLAC CTFs will invest about US$ 1.1 million, in travel expenses related

to training, in matching resources for the pilot grants facility, and in support for the operation of the

RedLAC Executive Secretariat (through membership fees). The Gordon and Betty Moore Foundationand FFEM/AFD would contribute US$951K and US$983K, respectively.

The proposed program will rely on an administrative platform, structured within the Brazilian

Biodiversity Fund Funbio given its current capacity as RedLACs Chair and Secretariat.

The capacity building component will also include collaboration and engagement with other key trust

funds from Africa, enabling Funds to benefit from the peer-to-peer learning and exchange here

described, making this a truly global conservation finance initiative.


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II. JustificationEnvironmental issues were once regarded as irrelevant to economic activity, but today they are

dramatically rewriting the rules for business, investors, and consumers. Current changes in the global

context demonstrate an increase in concerns for and the relevance of environmental issues, given

pressures from consumers and policy makers, and a response from productive sectors to identify

appropriate responses to these trends. This is especially evident in the discussions and proposals being

implemented around climate change mitigation opportunities, where an estimated more than US$100

billion is being spent annually by pioneering entrepreneurs, organizations, and governments that are

taking steps to incorporate environmental criteria into economic systems.

As an example, in 2006, an estimated US$52 billion was invested in wind power, biofuels, and other

renewable energy sources, a rise of 33 percent from 2005 figures. Preliminary estimates indicate that

the figure soared as high as US$66 billion in 2007.3 Carbon markets have been especially significant,

growing substantially every year and reaching an estimated US$30 billion in 2006, nearly triple the

amount traded in 2005.

The over reliance on international funding sources and the limited national capacity to integrate

financial and market based solutions into conservation programs are some of the main challenges for

conservation trust funds. Despite the ongoing success of trust funds to provide financial support toconservation programs in their national (or sometimes regional) contexts, most CTFs have so far,

focused on traditional funding streams. These include debt-swap agreements, from which a number of

trust funds have emerged, as well as other bi-lateral and multi-lateral commitments to fund

conservation programs administered by CTFs. As a result, few conservation initiatives throughout the

world can be considered financially sustainable. Support for protected areas is especially vulnerable in

this scenario.

Recognizing the need to incorporate market trends and dynamic threat analysis into the design of their

funding strategies, CTFs would like to explore and identify the different roles they can play in providinga platform for bridging the gap between markets and conservation objectives. 4 Ultimately, CTFs can

act as intermediaries designing and guiding market strategies that support biodiversity, administering

resources and programs, and delivering a gamut of services to project implementers.

In the Latin America and Caribbean region, RedLAC is well positioned to organize the conservation

3Worldwatch Institute, State of the World, 2008.

4Lampman, S. Possible Roles for Environmental Funds in Payment for Ecosystem Services Schemes, October 22, 2007 - Paper

prepared for the El Salvador EAI/TFCA Annual Meeting organized by USAID.


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finance community to take advantage of new market opportunities for conservation finance, by

strengthening local capacity to manage and innovate their programmatic and funding strategies.

Networks, like RedLAC, can act as a powerful means to share information and knowledge aroundspecific topics. RedLACs focus on promoting communication and collaboration to achieve conservation

finance solutions is a solid example of a cadre of committed local organizations focusing on these

issues and learning from one anothers best practices.

The network is capable of structuring ambitious regional initiatives such as the Ecofunds Database,

which is the first project overseen by RedLAC, involving 10 member Funds and covering 9 countries in

the region. This system will track conservation investments as well as needs and opportunities for

funding. This program is funded through a grant of USD 618K from the AndesAmazon Initiative of the

Gordon and Betty Moore Foundation.

RedLAC plays a key role in the LAC region by uniting the biodiversity conservation players and helping

them to take advantage of new markets to fund conservation. Thus, it contributes to strengthening its

members capacity to manage but also develop innovative approaches in their programs and funding

strategies.

In Africa there are already 13 CTFs in place, six are being created, and at least four others have had

feasibility studies. Most CTFs established in Africa before 2002 were intended to provide support to

one or two protected areas, and were in English-speaking countries. However, most of the new CTFs inAfrica are located in French-speaking countries and have been created to help funding the whole

network of protected areas of a country. This shift also reflects the shift of the GEF (which is the largest

donor to African CTFs), which increased support to protected areas networks management.

The trust funds are less advanced in Africa than in Latin America. A recent study on the financial

performance of CTFs showed that the 5 African funds that responded to the questionnaire were able

to raise only USD 42 million (with an average of USD 8.5 million per fund). By contrast, the 12 Latin

American funds were already topping USD 268 million. This difference comes from the fact that Latin

American funds have benefited from debt for nature swaps with the U.S. government, which haveenabled them to create capital funds. Moreover, Latin American funds have also networked strongly

over the past decade, thereby sharing practices and shortening learning curves in conservation finance

and trust fund management.

The absence of a financial gap analysis at the national networks of protected areas in most African

countries (with some notable exceptions such as Madagascar) complicates the design and creation of

CTFs to support an entire national network of PAs.


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1. Capacity Building for Conservation Trust Funds:The first set of activities relate to developing the necessary skills within CTFs to both improve their

operational capacity to manage existing conservation programs and financial assets, as well as todevelop new areas of expertise related to innovative market instruments.

This component would be open to participation from non-RedLAC CTFs, offering an opportunity to

expand knowledge exchange to other regions, as well as to engage additional donors interested in

supporting CTFs.

There are 21 RedLAC member Funds and about15 CTFs in Africa including those in a design stage.

There are just a few Asian Funds that are in RedLACs contact list and whose existence was

documented in the Rapid Review study in 2007-08. Thus, it is expected that the vast majority ofparticipants will hail from LAC and from Africa. Asian participants will be expected to be willing to

travel to Latin America and Africa to attend workshops and also to pay for their travel costs.

As mentioned below, the tentative content of the three tracks has been based on surveys conducted

with African CTFs in late 2009 (Training Needs Assessment) and in April 2010 (consultation in the form

of three conference calls facilitated by P. Taeb) and with RedLAC members in 2008.

A final questionnaire will be sent by the RedLAC secretariat (Funbio) to all potential participants to not

only finalize the list of 10 topics that will be picked for the workshops but also get a first sense of thelevel of participation. This information will be helpful to decide where a workshop should be organized

(in case, there is mainly interest in a given topic on the part of African CTFs, the workshop will take

place there) and whether any one topic should be covered twice (in case, there are 30+ people

expressing interest in a topic, Funbio might consider organizing a workshop on the subject twice since

participation will be limited to roughly 20 people per workshop.)

Here are the 16 topics that will be included in the survey:

Administrative costs and fees for services provided by CTFs

Support to Protected Areas (financial and technical) Strategic communication and marketing Fundraising Impact monitoring and evaluation Asset management and investment strategy Issues related to starting a CTF (first 3 years) Governance Grant-making and operating manual Strategic planning and institutional development


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Leadership for conservation Networking and regional collaboration Energy and Climate Payment for Ecosystem Services Forest Carbon / REDD Mechanisms Biodiversity offsets1.1.Workshops on the establishment of trust funds

This cycle of seminars focuses on exchange of experience to support CTFs in development or newly

established, in Africa but also in Latin America and the Caribbean. These seminars - two per year for

two years - would all take place in Africa where the main public concerned is, but the speakers would

be mainly Latin American CTFs members or experts involved in this region.

A survey with African funds participating in the CFA Working Group has achieved an initial assessment

of topics for exchanging experience. The themes requested for support by the African funds are mainly

related to the establishment of the CTF (defining mission, legal framework, governance rules) and to

the day-to-day operation (such as strategic and operational procedures, financial and auditing

guidelines, fundraising and communication, monitoring and evaluation, and hiring human resources).

1.2.Workshops on strengthening capacities of trust fundsThis cycle of three seminars aims to exchange experiences during the second year of the project amongfunds already established both located in the LAC region and Africa. These seminars should all be held

in Latin America where the main public concerned is based. The topics of exchange were determined

following a needs assessment within the RedLAC members and should include: monitoring and

evaluation of impacts on biodiversity of the projects financed by the CTFs; strategic communication;

and asset management and investment strategies.

1.3.Workshops on innovative financial mechanismsThis cycle would focus on delivering cutting edge technical capacities and knowledge to prepare CTFs

for using new financial arrangements. It would be composed of three seminars during the first year andis focused on funds already experienced mainly located in Latin America and the Caribbean, but would

be open to some African funds established and that want to start familiarizing themselves with these

new tools.

As in the previous cycle, the themes were identified following an assessment of needs within the

RedLAC members and should include carbon markets, climate-friendly technologies, energy efficiency,

Payment for Ecosystem Services, strategic impact evaluation and biodiversity compensation.


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The workshops would be designed and run by top experts on the selected topics and would be

complemented by RedLACs members own case studies, emphasizing direct experiences which can be

utilized to demonstrate and explore the necessary steps towards the implementation of a program,analyzing opportunities for adaptation to local contexts.

The week-long workshops would be organized and hosted by rotating CTFs, enhancing the projects

ability to capitalize on existing best practice experiences in different countries. The rotating workshop

scheme would also serve to promote local international conservation finance event in their countries

and strengthening CTFs connection to the RedLAC network.

All workshop and course materials would be documented (in English, Spanish and French) and turned

into materials which can be made available through different online platforms (e.g. RedLAC and otherkey websites) to facilitate their replication and sharing with other conservation finance practitioners.

Measuring the Impact of CTFs on Biodiversity

Within the Capacity Building Component, there is an effort to develop a methodology on measuring

the impact of Conservation Trust Funds on biodiversity. This theme has been identified as one of CTFs

shortcomings (most Funds devote the majority of their resources to measuring the outcomes of the

projects they fund but not these projects impacts per se). As a result, RedLAC launched a working

group in 2008 whose purpose was to study this impact measurement question more in depth.

The goal of this sub component of the Project is to produce an impact measurement methodology, i.e.

second-level (more macro) meta-evaluation methodology measuring impact vs. outcomes. Every

RedLAC Fund will have the opportunity to apply it to its own work eventually. A budget will be set aside

so that the RedLAC working group can recruit an independent expert to help the network in that

endeavor.

First, a survey of the few existing M&E systems (e.g. FPAA in Colombia, Fundacion Natura in Panama,

or PUMA in Bolivia) will be conducted. The consultant will then integrate best practices on M&E toexpand the RedLAC M&E working groups horizons. The working group will thus be in a good position

to decide on a pilot impact measurement methodology with the consultants help. This methodology

will subsequently be tested with actual projects funded by RedLAC Funds, members of that working

group. After this second phase, another report will be produced, laying out lessons learned from the

application of the pilot methodology and proposing one for the entire network.

The material produced by the M&E working group and the consultant will potentially be integrated

into the corresponding experience sharing track (in the course of year 2).


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In sum, this component will include the following activities:

Consolidation of existing impact monitoring experiences in RedLAC (types of methodologiesused, categories of indicators, typology of projects funded by RedLAC Funds, operational andfinancial implications of M&E)

Production of a report (presentation of past experiences - see previous bullet point - and ofbest practices in M&E) to inform the working groups discussion.

Organization of a workshop to decide on pilot methodology Testing of pilot methodology by three to five Funds on their project portfolio or a set of projects Production of a final report presenting feedback on implementation of pilot methodology by

each of the Funds and finalization of M&E methodology. That methodology will then be

presented to the RedLAC Executive Committee and subsequently to the General Assembly.

Transfer of knowledge outside the workshops:

The strengthening of CTF capacity cannot stop for participants when workshops end. They have to be

able to pursue their learning once they are back at their organizations and to transfer the knowledge

they have acquired to their co-workers. However, the responsibility of knowledge transfer to other CTF

employees will not rest only on their shoulders. Tools will be offered by the Project so that everyone in

the CTF universe can enrich his/her knowledge.

Knowledge sharing and continuous learning:

A web platform featuring a number of different tools and varied material will be put in place. The

Funbio colleagues lean toward using the current RedLAC websites knowledge platform that they admit

is imperfect and needs to be improved. However, using the existing platform would avoid replicating

efforts and incurring costs resulting from setting up a new one.

The platform will present:

1. Complete content of workshops (i.e. workshop summaries drafted by Project Coordination(Funbio), presentations and attached comments provided by presenters for those who could notattend (available in French / English / Spanish), materials/hand-outs distributed, and participants

and presenters contact information.

2. List of additional resources (articles, publications, books) related to workshop topics that everypresenter will be asked to submit for those who want to further study the subject matter

3. Video testimonials of workshops participants and presenters/experts and picture gallery of eachworkshop

4. Availability of the workshop presenters / experts to answer questions for 2 months following theseminars they will have attended: when they are contracted by Funbio, presenters will be asked if


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they accept to remain available to respond questions post-workshop. Their fees will reflect this

extra time commitment (that will be evaluated to a few hours a month).

5. Discussion and exchange forum enabling the formation of a learning community featuring: Feedback from workshop participants on quality of seminars they attended Discussion threads (with optional alert system) Open-ended comments on subjects of interest (e.g. suggestions of articles, upcoming

conferences, mini blog entries, opinions)

Requests for short-term assistance6. Thematic updates every three months submitted by the RedLAC Secretariat: the most popular

topics (e.g. fundraising, M&E) will have dedicated sections on the platform. In addition to workshop

material and additional resources, topical updates (e.g. upcoming conferences on the subject,

RedLAC reports on that topic, recent articles or books published) will be posted regularly.7. Link to Environmental Funds Tool Kit: table of contents and web link available on platformApplication of knowledge acquired

Workshop participants will be asked to draft an action plan at the end of the seminars they will attend

detailing a) how they will use the knowledge they have acquired in their work in the 6 months

following their return, and b) how they will transfer what they will have learned to their colleagues.

They will already have filled out a tentative action plan in their applications (see section 1.5. below)

and thus they will able to finalize this plan at the end of the workshop.

At the six-month mark, they will receive an email from the Project Coordination (Funbio) asking them

to report on what actions items they will have carried out and what results those will have contributed

to produce.


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Operational aspects:

This component of the initiative will be coordinated and overseen by the Project Coordination(Funbio).

a) Number of participants:

A total of roughly 20 participants per workshop seems the best compromise in order to combine

maximum participation and workshop effectiveness. The ten workshops will guarantee participation by

about 200 individuals. There are currently 21 RedLAC member Funds and about 15 in Africa (including

those in formation). Adding a few CTFs from Asia we can expect that around 40 CTFs will be involved in

those seminars, i.e. on average 5 slots per Fund. Thus, for instance every Fund could send 2 employees

to 2 workshops.

The consultation of African CTFs carried out in April 2010 has revealed that most of them would be

interested to attend more than one workshop, including from different tracks. Some of the more

advanced one are interested not only in those on capacity strengthening (track #2) but also in those

focusing on innovative mechanisms. By the same token, we heard from the Funds that are still in the

early stages of their life cycles that they would benefit from the start-up seminars (track #1) but also

from those on capacity strengthening (track #2).

b) Timing of workshops:The four workshops of Track #1 and the three Track #2 seminars will take place over the three years of

the Project.

It has been tentatively planned that the four Track #1 workshops will take place in Africa while the rest

will be based in the LAC region. However, it will depend on the level of interest that the upcoming

questionnaire that Funbio will send to all potential interested CTFs will be able to gauge.

Synergies can be found between this Project and African CTFs current regional structuring and

capacity building efforts. Indeed, representatives from African CTFs made it clear during theconsultation organized in April 2010 that they were keen to form a formal or informal network of CTFs

for the region modeled after RedLAC.

Their first regional meeting will take place in Dakar in September 2010 and the Capacity Building

Project will be presented to them during that event, although it wont be a workshop of the Project. By

the same token, future annual meetings of African CTFs would be perfect venues for other Africa-

based experience sharing workshops. Funbio and the CFAs African Committee will coordinate

accordingly.


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c) Experts and working groups:

All the training and experience sharing seminars / workshops will be run by experts in the particularareas that will be covered on the occasion. These experts will be recruited by Funbio through

invitations based on terms of reference reflecting the wishes of those that will attend those

workshops. The content of these will draw upon case studies presenting Funds actual experiences or

projects that are representative examples.

Procurement transparency: hiring external personnel with institutional links with the RedLAC member

funds should be avoided, and exceptional cases must be approved by the Project Committee. Thus, if

an expert from the staff of a RedLAC fund is recommended to run a workshop, this can be hired only if

also approved by the Project Committee.

Reports will also be presented at RedLACs annual General Assemblies relating the progress and

outcomes of this capacity building endeavor.

d) Process and selection criteria:

Interested individuals will need to provide the following information and documentation as part of

their application:

i. Individual application form; which will include: a) a description of the applicants role within theCTF, b) rationale for participation (i.e. why that workshop would be beneficial for his/her work), b)tentative plan for follow-up actions leveraging his/her participation and benefiting the organization

after the candidate returns from workshop (assuming that the CTF has enough knowledge transfer

capacity), and c) skills self-assessment (will include self-assessment on three to five dimensions

related to the workshops topic the Project Coordination (Funbio) will thus have a better sense of

each participants level, which will help in the workshop design)

ii. Curriculum Vitae of applicantsiii. Letter from leadership showing support for participation and commitment to support follow-up

actions: in case the Executive Secretary or Director is applying, the letter will come from

governance body (Board or governing committee when Funds are in the process of being created).When technical staff applies, the letter will come from the Director.

iv. Language preference and restrictions;v. Demonstrated organizational commitment to pay for travel and local costs (note that candidates

will be notified that some financial support will be available on a limited basis)

The applications will be reviewed by the Project Coordination (Funbio), except for applications coming

from Funbio employees that will be examined by the Project Committee (to avoid potential conflicts of

interest). Applications for the same workshop coming from employees of the same Fund will be

reviewed separately.


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The selection criteria will include:

Convincing explanation about how the candidate will benefit from workshop and how s/he willimplement follow-up action plan to leverage lessons learned Demonstrated support of individuals candidacy and commitment to let candidate execute

his/her action plan upon his/her return on the part of organizations leadership (Board or

management)

CTF has a knowledge transfer capacity that will leverage the workshop content and increase thenumber of staff people that will have access to the material

The first two criteria are critical and are considered to be requirements. Given the varied level of

capacity of CTFs around the world, the third criterion is not required. However, the Project Committeesees it as a key to a successful follow-up to the workshops.

The review process is competitive and there is a limited number of participants, around 20. All

candidates will be notified by Funbio whether their applications have been selected or not. In the case

they have not, candidates will receive substantive feedback from Funbio to help them apply to future

workshops if they wish to do so.

In case a workshop is under-subscribed and an application is not deemed acceptable, the Project

Coordination (Funbio) will provide feedback to the candidate and give him/her the opportunity torevise his/her application right away to allow for his/her participation in that workshop.

In order to ensure wide participation of CTFs from LAC / Africa / Asia there will be a limit of two

participants per CTF per workshop. We expect to see different employees from the same CTF apply to

multiple workshops as the topics covered will be far-ranging and the audience of these seminars

consists mainly of technical staff. However, when the Project Committee considers the applications of

two candidates coming from two different CTFs, one of which has already sent staff members to

previous workshops and the other has not, preference will be given to the latter.

e) Financial support:

Candidates are expected to pay for part or all of their travel costs. However, to allow maximum

participation some financial support has been budgeted in this Project. It includes:

- For African CTFs: All participants lodging and per diem expenses will be paid for the workshops that will take

place in Africa

The Project will offer full financial support to 18 participants attending workshops in the LAC


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region (6 workshops should take place in the region): given that the number of participant

hailing from African CTFs is uncertain for every workshop, we recommend that there be

flexibility and the number of 18 be taken as a total. This means that there will not benecessarily 3 participants from Africa receiving full support for every workshop in LAC but

rather than a total of 18 participants will get that support over the 6 workshops. It is also

important to note that participants from some African CTFs may be willing and able to take part

in workshops in LAC without financial support. Thus, it is possible that there will be more than

18 African participants in these workshops overall.

- For RedLAC CTFs: The Project will offer full financial support to 12 participants so that they can attend workshops

in Africa: as in the case of the African CTFs, it seems to make sense that 12 employees fromRedLAC Funds overall will benefit from that financial support over the 4 workshops currently

planned in Africa rather than 3 per workshop systematically.

- Contingency: the budget includes a contingency fund supposed to cover unexpected expenses,such as expensive visa or immunization costs. However, after the consultation conducted with

African Funds representatives, we realized that they were generally in agreement with covering

their travel costs but pointed to the possible need for financial support for very expensive airline

tickets. As a result, unusually or unpredictably high airfares were added to the list covered by this

contingency fund.

In order to avoid excluding candidates from cash-strapped Funds who could clearly benefit from the

workshops, the ability to pay travel-related costs has not been included in the selection criteria even

though a commitment to do so is among the items that each candidate will be asked to submit.

After candidates have been selected, they will be notified and asked to confirm their attendance within

a short time frame (two to three weeks). They will also be expected to confirm that they can pay for

part or the entirety of their travel costs. In case they inform the Project Coordination (Funbio) that they

are not able to pay for the share of costs they were expected to assume, their cases will be examinedone by one and the Project Coordination (Funbio) will proceed to the decision, with the Project

Committee or RedLAC Executive Committee (for African and LAC participants cases, respectively)

whether the candidates can receive financial support.

To avoid complications and maintain a climate of trust, no justification of financial hardship will be

asked from the candidates. Thus, financial support will be provided on a first come first served basis

and when the 30 fellowships (12 for RedLAC members and 18 for African CTFs) and the contingency

fund are exhausted, candidates requests will be turned down.


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Also, potential participants will be advised that organizations whose employees have not been granted

financial support in the context of the Project will come before those whose staff has.

2. Competitive Grants Facility to encourage CTF pilot programs on innovative conservationfinance schemes:

CTFs often operate with restricted resources from donors for specific programs. In very few cases do

CTFs possess reserve funds which they can direct towards starting new programs. Even if CTFs receive

training and participate in the capacity building activities spelled out under component 1 of this

proposal, launching a new program would necessarily involve start up costs to support a business planand market feasibility study, hiring new staff or consultants, developing new materials (e.g. operational

manuals, communications and marketing materials, ). Moving from theory to practice in what

pertains to CTFs involvement with innovative financial mechanisms would require external financial

inputs which can be used to leverage CTFs own investments.

In order to kick start new programs and reduce the burden on CTFs, RedLAC has proposed the design

of a Competitive Grants Facility which would co-finance the development of innovations within CTFs

existing funding portfolios. This Facility would co-finance pilot projects on innovative financial

mechanisms (including all topics delivered through the workshops), funded by the programs donors.

The Grants Facility would have the following characteristics:

Only RedLAC member funds would be eligible to participate. Each CTF interested in developing a pilot project/program on Innovative Financial Mechanisms

would need to provide an investment of US$50K, in order to leverage an additional US$100K

from the Facilitys donors (Moore Foundation & FFEM), thus bringing the total proposed

investment in each pilot to US$150K.

The application and selection process would be open and transparent. A budget has been setaside for a consultant to be hired who will help to finalize the selection process and structurethe grant facility. However, the following components are likely to be carried out. The project

proposal and selection process will be coordinated by the Project Committee, a monitoring and

selection committee composed of RedLAC representatives, representatives from some donor

agencies, and conservation finance experts. As FFEM generally does not sit on that type of

committees, it will be represented by an outside expert whose references will be submitted by

the RedLAC secretariat for approval (or non objection). Every member on this committee will

work on a voluntary pro-bono basis and will only be defrayed for the costs they will incur to

attend those meetings.


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The following selection criteria are likely to be considered:

1. Market-based aspect2. Innovative natureThose two criteria are the cornerstone of what this Grant Facility is about. Indeed, the initiative

seeks to foster the emergence or replication of market-based mechanisms. Furthermore, the

innovative nature of these projects is essential, i.e. projects featuring types of mechanisms that are

under-represented in the RedLAC member Funds portfolios will be encouraged. Thus, the

respective weights of those two criteria will probably be higher than that of the other six criteria.

3. Financial sustainability: the ability for the mechanism to generate income that will help fund futureprojects of the same nature

4. Financial amount / volume/ size: amount in $ / Euros generated by the mechanism. It is likely thatthe positive impact of the mechanism will increase as the amount generated is higher.5. Programmatic impact: whatever the focus of the mechanism (e.g. energy efficiency, PES), it will be

important to assess its programmatic impact, for example in terms of volume of reductions of

emissions or of avoided emissions, or change in conservation status

6. Return on investment: the ratio between the amount of money invested to set up the mechanismand make it operate and the income that it will bring

7. Leverage effect: the ability to attract other investors to the project or indirectly to channeladditional funds towards conservation and/or development

8.

Social impact: the mechanism will have to produce social benefits for the populations andcommunities as well

Projects that will be presented should feature innovative financial mechanisms that have not yet been

tested yet by the CTF candidate. It is recommended that proposals have a focus on trying out new

market-based instruments. Mechanisms that are likely to be supported include (this list is not

exhaustive):

1. Payment for Ecosystem Services (PES): regular payments made for beneficiaries to maintain/orincrease the provision of certain ecosystem services, such as:a. Carbon: includes payments for avoided carbon emissions that may come from the use of

new technologies and reforestation (Clean Development Mechanisms defined by the

Kyoto protocol) or may be the result of forest carbon projects (REDD - Reducing

Emissions from Deforestation and Degradation);

b. Water: payments made by users to providers (communities, protected areas,companies, etc.) that maintain water flow with adequate volume and quality or that

refrain from degrading watersheds.


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2. Offsets schemes: offer private landowners or companies a means to meet obligatory orvoluntary compensation for their impacts on natural areas, such as by renting preserved

areas.3. Species/ Biodiversity, wetlands banking creating a clearing house and a registry of species

conservation projects or preserved lands to be traded, as a tool for compensation schemes.

4. Markets for green products: new businesses that offer products and services that have anadded value because of an environmental friendly production process, or that use natural

resources as an asset (such as the examples created within New Ventures Mexico).

5. Revenues from tourism and other user fees: charge users visitation fees or for ecosystemservices and use resources to conserve these areas.

6. Mortgage-backed securities, derivatives and bonds use such financial sector instruments forenvironmental purpose, making hedge payments for future use.

7. Pollinators rental facility: promote renting schemes for species with agricultural benefits suchas pollinators.

There are also financial mechanisms that can be used by CTFs which are not traditional revenue

sources, even though they are not directly related to market activities, such as:

8. Fines and penalties conversion: direct resources from court decisions to a fund with a specificpurpose in agreement with government agencies that apply penalties.

9.

Royalties conversion: direct resources received by governments from royalties (e.g. oilexploitation) to a fund with environmental purposes.

10.Green lottery: create a lottery that dedicates part of the revenues for environmental projectsthrough a specific fund.

11.Fiscal incentives: reduce taxes in proportion to donations made to an environmental fund orfacilitate loans for activities that are environmentally friendly.

12.Biodiversity/ conservation auctions: leverage individual donations for conservation projectsthrough environmental auctions, which conserve natural areas.

13.Pollution taxation scheme: direct resources from taxation on polluting sectors towards theconservation of natural areas.14.Bioprospecting payments: receive revenue payments for the access and use of naturalresources.

Proposed projects will be expected to result in financial income (that will be channeledtowards additional resources for conservation projects) and measurable social and

environmental outcomes. All projects supported by CGF will be monitored and evaluated.

The Grants Facility will have the following timeline:- The call for proposals will be announced to RedLAC members in July 2011


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- Deadline for submitting proposals within 2 months is September 30th, 2011- Applications will be evaluated by the Project Committee within 30 days (until the end of

October)- Project Committee meets to select pilot projects during the RedLAC Assembly in early

November 2011.

- Selected pilot projects will be announced during the RedLAC Assembly.

3. RedLAC Organizational Development:Support will be provided to RedLACs Executive Secretariat to coordinate the capacity strengthening

and competitive grant fund efforts. The Executive Secretariat will work together with the ProjectCoordination team to organize the capacity building activities, the grants facility and the sharing and

capitalization of the experience of the Project as a whole.

The following activities will be carried out as part of this component:

Set up an operational structure to support the capacity building component: RedLAC currentlyoperates with one Executive Secretary. This position is in charge of implementing RedLACs

annual work plan, putting together the networks annual General Assembly, organizing two

RedLAC Executive Committee meetings per year, representing the network in events,

identifying and sharing information sources relevant to the network, producing the networksnewsletter and all other communication materials, and carrying out projects that are part of

RedLACs strategic plan.

In order to implement the capacity building component described above, the current staff ofthe secretariat will need to be reinforced by a full-time person who will focus on the planning,

coordination, and execution of the component in close collaboration with RedLACs Executive

Committee (terms of reference will drafted describing the position and the person will be

recruited through a selection process).

Set up an operational structure dedicated to the Competitive Innovation Fund (the projectscomponent #2): four main tasks will have to be carried out to put that structure together:i. Put a technical committee in place (composed of Funbios technical agents) and anindependent monitoring and selection committee made up of RedLAC members,

representatives of certain donor agencies, and conservation finance experts.

ii. Organize the call for proposals, the technical review and selection process for the proposalssubmitted to the Grants Facility that will include: a) the creation of its operating manual; b) the

structuring of internal resources mobilized by Funbio to execute the various tasks on behalf of

the Project Coordination; c) the creation of an independent monitoring and selection

committee (Project Committee).


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iii. Support Grants Facility grantmaking and the project monitoring activitiesiv. Support the production of promotional material that will document and report on the progress

and outcomes of the projects. A final report presenting the Project activities will be publishedand widely distributed.

The Project also plans to support the design of a business plan for the network, as an effort to

strengthen RedLACs sustainability. To have a business plan will enable RedLAC to define the follow-up

activities of the Capacity Building Project or the development of new ones.

Timeline


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V. Expected ResultsIt is expected that at the end of the three years, Conservation Trust Funds, especially RedLACs

members, would have acquired significantly relevant new skills to operate market based instruments

to increase funding and resource flow to conservation programs. This means the capacity building for

CTFs should have a high impact on the amounts managed by the funds through long term initiatives.

This increase is measurable and would be monitored to evaluate the success rate of the program.

Given the focus of this proposal on capacity building for CTFs, it is expected that the operational

efficiency and quality of programs implemented by RedLAC and other participating CTFs would strongly

improve, in existing programs as well as in the new schemes developed.

The documentation of best practice standards and lessons learned by Conservation Trust Funds would

also bring new and invaluable content to the conservation finance community, helping existing and

new CTFs to build on the lessons of the past. The focus on documentation would also enhance the

position of conservation finance topics and leaders in the biodiversity conservation debate.

With innovative programs underway CTFs would be able to take advantage of new private sector

partnerships that enhance the response to the conservation crisis, offering creative solutions to

partners interested in new emerging green economies. Furthermore, the new market mechanismswhich would be put in place through the Grants Facility would provide new resource for biodiversity

conservation programs improving their capacity to meet the funding gap for providing incentives

against opportunity costs and competitive land uses and towards the enhanced protection of fragile

ecosystems.

VI. Proposed Estimated Cost

External donors would cover the following main items:

Workshops structure (room rental, catering, material) Contracting thematic specialists for workshops Workshops content development and materials translation Co-financing for pilot projects Administrative support for the grants facility Consultant for structuring grants facility - operational manual, thematic lines, call for proposals,

reporting, monitoring and evaluation


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Grants facility adhoc coordination and technical committee meetings Pilot projects monitoring - visits and reports Pilot projects final independent evaluation Pilot projects documentation and materials for sharing and replication Final publication: case studies, workshops documentation and conclusions, pilot projects final

reports

Development of a Business Plan for RedLACRedLAC funds would cover their own travel expenses (component 1), commit to raising matching funds

for the pilot projects (component 2), and provide support for the Secretariat structure through their

membership fees. In-kind contributions are not considered in this cost estimation.


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Annex 1 RedLAC members

BELIZE

PACT - Protected Areas Conservation Trust

Sharon Perera

[email protected]

BOLIVIA

FUNDESNAP - Fundacin para El Desarrollo Del Sistema Nacional de reas Protegidas

Sergio Eguino

[email protected]

PUMA - Fundacin Proteccin y Uso Sostenible de Medio AmbienteJuan Carlos Chvez

[email protected]

BRAZIL

FUNBIO Brazilian Biodiversity Fund

Rosa Lemos de Sa

[email protected]

FNMA - Fundo Nacional do Meio Ambiente

Fabricio [email protected]

COLOMBIA

Fondo para la Accin Ambiental y la Niez

Jos Luis Gomz R.

[email protected]

Fondo Patrimonio Natural

Francisco Alberto Galn

[email protected]

Fondo Biocomercio

John Bejarano

[email protected]

ECUADOR

FAN - Fondo Ambiental Nacional

Samuel Sangeza

[email protected]


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EL SALVADOR

Fondo Iniciativa para las Amricas - FIAES

Jorge Oviedo

[email protected]

GUATEMALA

FCG - Fideicomiso para la Conservacin en Guatemala

Yvonne Ramrez

[email protected]

FONACON - Fondo Nacional para la Conservacin de la Naturaleza

Marco Tulio Daz del [email protected]

MAR Fund - Mesoamerican Reef Fund

Mara Jos Gonzlez

[email protected]

JAMAICA

EFJ - Environmental Foundation of Jamaica

Joan Grant-Cummings

[email protected]

MEXICO

FMCN - Fondo Mexicano para la Conservacin de la Naturaleza

Lorenzo Rosenzweig

[email protected]

PANAMA

Natura - Fundacin para la Conservacin de los Recursos Naturales

Zuleika Pinzn

[email protected]

PERU

Fondo de las Amricas

Juan Gil

[email protected]

Profonanpe - Fondo Nacional para las reas Protegidas por el Estado

Alberto Paniagua

[email protected]


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FONAM

Julia Justo

[email protected]

SURINAME

SCF - Suriname Conservation Foundation

Leonard Johanns

[email protected]

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