Direct and Indirect Incentives forBiodiversity Conservation

(Introduction to the Symposium)

Agi KissAgi KissAfrica Environment and Social Africa Environment and Social

Development GroupDevelopment Group

The World BankThe World Bank

July 15, 2002July 15, 2002Society for Conservation Society for Conservation

Biology 2002 Annual MeetingBiology 2002 Annual Meeting

Canterbury, UKCanterbury, UK

Investment in Biodiversity Conservation

$500 million per year worldwide (CI estimate)$500 million per year worldwide (CI estimate)

World Bank-financed projects since 1990:World Bank-financed projects since 1990: – over $ 1 Billion IDA/IBRD + over $ 1 Billion IDA/IBRD + – $450 million GEF +$450 million GEF +– $1$1..2 billion co-financing2 billion co-financing

Winning a few battles (?); losing the warWinning a few battles (?); losing the war

Main Causes of Biodiversity Loss

Transformation, degradation, Transformation, degradation, fragmentation of habitatfragmentation of habitat

Over-exploitation, extractionOver-exploitation, extraction Invasive alien speciesInvasive alien species PollutionPollution DiseaseDisease

Main Causes of Biodiversity Loss

Transformation, degradation, fragmentation of Transformation, degradation, fragmentation of habitathabitat

Over-exploitation, extractionOver-exploitation, extraction Invasive alien speciesInvasive alien species PollutionPollution DiseaseDisease

Often involving: large areas, large numbers of people, Often involving: large areas, large numbers of people, long periods of time, economic drivers, commercial long periods of time, economic drivers, commercial interests, external playersinterests, external players

Main Conservation Approaches & Incentives

Protected Protected AreasAreas

Outside PAsOutside PAs

Industrialized Industrialized CountriesCountries

Recreational Recreational use/employmentuse/employment

Land purchaseLand purchase

EasementsEasements

Conserv. SubsidiesConserv. Subsidies

Legislation (eg Legislation (eg ESA)ESA)

Developing Developing CountriesCountries

““Co-management”Co-management”

Revenue/benefit Revenue/benefit sharingsharing

Community-based Community-based

ConservationConservation

ICDPsICDPs

(LEAST DIRECT)

SPECTRUM Of CONSERVATION INCENTIVES

(MOST DIRECT)

SPECTRUM OF CONSERVATION INCENTIVES (LEAST DIRECT) • Use/marketing of extracted biological products

(MOST DIRECT)

SPECTRUM OF CONSERVATION INCENTIVES (LEAST DIRECT) • Use/marketing of extracted biological products• Use/marketing of biodiversity within relatively intact ecosystems

(MOST DIRECT)

SPECTRUM OF CONSERVATION INCENTIVES (LEAST DIRECT) • Use/marketing of extracted biological products• Use/marketing of biodiversity within relatively intact ecosystems• Compensation for reduced-impact land and resource use

(MOST DIRECT)

SPECTRUM OF CONSERVATION INCENTIVES (LEAST DIRECT) • Use/marketing of extracted biological products• Use/marketing of biodiversity within relatively intact ecosystems• Compensation for reduced-impact land and resource use• Direct payment for environmental services (biodiversity as side-benefit)

(MOST DIRECT)

SPECTRUM OF CONSERVATION INCENTIVES (LEAST DIRECT) • Use/marketing of extracted biological products• Use/marketing of biodiversity within relatively intact ecosystems• Compensation for reduced-impact land and resource use• Direct payment for environmental services (biodiversity as side-benefit) • Acquiring land and biodiversity use rights

(MOST DIRECT)

SPECTRUM OF CONSERVATION INCENTIVES (LEAST DIRECT) • Use/marketing of extracted biological products• Use/marketing of biodiversity within relatively intact ecosystems• Compensation for reduced-impact land and resource use• Direct payment for environmental services (biodiversity as side-benefit) • Acquiring land and biodiversity use rights• Direct payment for biodiversity conservation (MOST DIRECT)

Use/Marketing of Extracted Biological Products

Finite resources with limited renewal capacity

Vs.

Expanding, virtually inexhaustible demand

Use/marketing of biodiversity within relatively intact ecosystems

Limited prospects

Not always biodiversity-friendly

Compensation for reduced- impact land & resource uses

Direct subsidies (e.g. Conservation Reserve Program)

Price subsidies (e.g. Green Certification)

Project support or subsidies for multiple use systemsor “alternative livelihoods”(including improved agriculture, IGAs, etc.)

Market limitations

Targeting problems

Addition instead of substitution

Direct payment for (non-biodiversity) environmental services

Watershed protection

Water purification

Carbon sequestration

Biodiversity conservation is a “side-benefit”… may or may not result

Acquiring biodiversity and land use rights

Logging Concessions

Tradeable Quotas

Conservation Leases and EasementsSuccess depends on

institutional environment (e.g. judiciary)

Employment issues, esp. in LDCs

Direct payment for biodiversity outcomes

Specify outcomes, not methods

Indicators and monitoring are critical