BIOFIN – The Biodiversity Finance Initiative
How BIOFIN supports Biodiversity
Conservation in Perú
October 2014, Pyeonchang, Korea
Why MINAM take BIOFIN as
its own project?
conSerVation
without financing is just
conVerSation
The Ministry of Economy and
Finance – MEF in Our Lives
Draft and Adoption
of Policies and Practices
Budget (warnings)
The Autonomy of Local and Regional Governments
Total Quantity: Main part of Budget is “Continuity”
MEF promotes private investments but (obviously)
doesn´t control private budgets
BIOFIN – MINAM and MEF
and Biodiversity
DGIP (public investment):
Its recent statement says “Peruvian mega biodiversity must become one of
the axes of economic development and growth”. It considers that there is an
opportunity, as the “sector” is quite new, to avoid or reduce the inefficiencies
reported in traditional sectors. In this scenario, DGIP says “It´s an urgent
need to introduce the relevance of biodiversity and environmental and climate
change issues into national development planning, so it´s a challenge to have
adequate academic and technical language in our public sector processes
(economics, planning, targets, and indicators).
BIOFIN – MINAM and MEF
and Biodiversity
DGPP (public budget):
Applies an Output Budgeting Approach through Budget Programs (BP). BPs
aim to solve specific problems under a logical process, supported by
evidence. DGPP oversees the allocation of public resources to any public
activities, as biodiversity conservation must be executed with equity, efficacy
and efficiency under national guidelines and policies. There are 2 BPs
scoping natural resources: “Sustainable Management of Natural Resources
and Biodiversity” and “Biodiversity Conservation and Sustainable Economic
Natural Resources Use in Protected Areas”. Both BPs needs around US$ 64
million per year to implement its regular activities.
Other Allies – MINAGRI
and PRODUCE
MINAGRI – Agro-biodiversity and
Forest – (4.5 times MINAM´s budget)
PRODUCE – Fishing and
Manufacturing
Other Allies – MINAGRI
and PRODUCE
MINAGRI – Agro-biodiversity and
Forest – (4.5 times MINAM´s budget)
PRODUCE – Fishing and
Manufacturing
Finance Mechanisms for
Biodiversity Conservation in a
Megadiverse Country
Marine Biodiversity – Sustainable Fishing – Hypothesis: Operations are
more expensive and fished quantity is less so costs rise… Who should pay
for it? Consumers? Producers? Do other countries demand sustainable
operations of their producers, ergo are our producers in the same competitive
position as others countries?
Rainforest – Offers “megadiverse” ecosystem services, and who gets
benefits? Locals? Foreigners? What´s the price for each service? What´s the
actual cost of conservation?
Agro-biodiversity – there are already almost 4000 varieties of potatoes
(papa for us) – Hypothesis: 50 varieties can be commercialized and this
practice will preserve and develop those varieties… Who is going to conserve
the other 3950 varieties? Who receives the benefits of these varieties, ergo
who pays for it?
Guidelines and Ideas to
Resource Mobilization – 1
Guidelines – Our assumptions for Perú
No existe la Solución Universal
(there is no ONE COMPREHENSIVE project finance answer,
so let´s think of what financial mechanism and instruments
can be applied in each case and think of “everything”)
3 Sources: Increasing and Fresh Resources; Mobilizing what
is stuck; and Use Resources more effectively – PRIVATE and
PUBLIC – LOCAL and INTERNATIONAL
Guidelines and Ideas to
Resource Mobilization – 2
Guidelines – Our assumptions for Perú
Recourse Mobilization Strategy is to support long term conservation, so let´s
think how agents will behave in the future, not only how things are at this
moment
Recourse Mobilization Proposals MUST:
- …aim to achieve NBSAP implementation and Aichi Targets
- …respect indigenous people and local communities’ rights and their way of
living
- …at least, cover the cost of conservation
- …be as inclusive as possible
- …support poverty reduction, especially in the short term.
Guidelines and Ideas to
Resource Mobilization – 3
Guidelines – Our assumptions for Perú
Those who receive benefits from ecosystem
services must pay
and
Those who pay the costs for conservation must
receive benefit
Guidelines and Ideas to
Resource Mobilization – 4
Ideas – 03 Sources
Increasing and Fresh Resources: Hardest Work – Payments for Ecosystem
Services, like source of water for Hydro Power Plants or Water Utilities.
Mobilizing what is stuck: Sub National Governments receive 50% of the
taxes paid by Mining Firms. In 2013 – US$ 1.4 billion (2009 – 2013: US$ 7
billion). At least, US$ 500 million has not been used… BIOFIN activities aim
to facilitate the execution of the stuck budget, and to direct it to biodiversity.
Use Resources more efficacy: In Perú, 2.2 million farmers and Ministry of
Agriculture spends about US$ 12 million in assistance. Less than 2 ha: 1.3
million farmers…
BIOFIN Perú –
What else are we doing – 1
Assisting:
- MEF to develop Guidelines for Environmental Public
Investment
- MINAM to identify tax incentives for conservation activities
- MINAM to estimate the operation cost of the Protected
Areas System
- MEF to develop Guidelines to formulate and asses Public
Investment Projects in Biodiversity Conservation (“Green
Projects”)
BIOFIN Perú –
What else are we doing – 2
Develop:
- Ecosystems Conservation Impact indicators financed by
domestic public sources
- Modeling Public Investment Projects on Biodiversity
Conservation
- How Local Communities, who have an integral view of the
values of biodiversity and ecosystem services, can receive
actual income from these kind of businesses
NBSAP… Waiting for…
APPROVAL BY DECREE
No WAVES, TEEB, SEEA or…
BIOFIN Perú – Short Term
Next Steps
Evaluate Biodiversity
Conservation expenses in Perú
NBSAP Budget
MUCHAS GRACIAS