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Innovative Financing for Marine and Coastal Ecosystem Services
Tundi Agardy & Winnie LauMARES Program
Forest Trends
November 10, 2010USAID Biodiversity & Forestry Seminar
Nature’s Value
• Valuing the priceless• Establishing priorities• Allowing evaluation of trade‐offs and making of informed choices
Ecosystem Services Focus
What Are These Services?
Provisioning Services Supporting Services
Cultural Services
• Soil & sand formation • Photosynthesis • Nutrient cycling (e.g., carbon cycling)
Regulating Services
• Climate regulation • Carbon sequestration • Shoreline stabilization • Storm & flood protection • Water Purification• Waste treatment
• Tourism • Recreation • Spiritual values • Education • Aesthetics
• Food (e.g., Fisheries)• Energy & Fuel• Minerals & Materials • Water (e.g., from desalination)
Coastal Ecosystem Services and Their Value
The coastal zone supports over 40% of the global population
Coastal Ecosystem Services and Their Value
This thin strip of land, accounting for only 5% of the world’s land mass, provides a disproportionate amount of the ecosystem services important to humankind.
Coastal Ecosystem Services and Their Value
Estuaries
Within the global coastal population, 71% live within 50 km of an estuary
Coastal Ecosystem Services and Their Value
Estuarine services account for many of the “pull” factors that led to settlement on the coasts and subsequent population growth there, including:
Coastal Ecosystem Services and Their Value
• fish and shellfish resources• building materials• safe harbors• connections to inland waterways• freshwater• pollution filtering / waste processing• buffering from storms
Despite these values, coastal and marine ecosystems are at risk, and resources to protect, monitor, and
manage them are insufficient
Coastal Ecosystem Services and Their Value
Conservation Financing
• Government
• Multilateral Organizations• User Fees• Donors (Individual or Foundations)
Tax $
Conservation Financing
• Government• Multilateral Organizations
• User Fees• Donors (Individual or Foundations)
THE WORLD BANK
Conservation Financing
• Government• Multilateral Organizations• User Fees
• Donors (Individual or Foundations)
Users (e.g., Park‐goers,
Fishermen)
$
Conservation Financing
• Government• Multilateral Organizations• User Fees• Donors (Individual or Foundations)
Carbon sequestration and storage
Waste and Pollutant Processing
Sustainable Fisheries
Safe and Healthy Seafood
Coastal Water quality
Storm and Hurricane Protection
Seascape and Landscape Beauty
Marine Biodiversity
Sandy Beaches
Stable Coastlines
Investing in “Natural Infrastructure”
Innovative Conservation Financing
Supply Chain
Raw Materials Manufacturer Distributor ConsumerRetailer
Source: Freefoto.com
Innovative Conservation Financing
Supply Chain
Raw Materials Manufacturer Distributor ConsumerRetailer
Source: Freefoto.com
$$
$$
Paradigm Shift
COSTS OF
DOING BUSINESS
AdvertisingProduction
Natural resource
protection & maintenance
Salary
Operations
Paradigm Shift
In essence…
payment Investment
Incentives for Buyers
Making the Business Case to Potential Buyers:• Reducing risks: e.g. storm buffers and for erosion control• Enhancing production: e.g. protecting fish nursery areas resulting in increased catches
• Increasing tourism value: e.g. higher value coral reefs, beaches
• Increasing product value: e.g. public relations, reputation, price premiums
• Reducing costs: e.g. tax breaks, efficiencies of scale for meeting regulatory obligations
• Growing Network• Identifying and creating products to service the community:
• Marine Matrix• Marine Portal• Guidelines• Policy Statements (e.g. Mangrove Call to Action)
• Exchanging Lessons Learned on the ground
Marine Katoomba
Building the C0mmunity of Practice
• Growing Network• Identifying and creating products to service the community:
• Marine Matrix• Marine Portal• Guidelines• Policy Statements (e.g. Mangrove Call to Action)
• Exchanging Lessons Learned on the ground
Marine Katoomba
Tools & Resources: Marine PES Primer
25
English
Tools & Resources: Marine PES Primer
26
English
Spanish
Tools & Resources: Marine Matrix
27
Tools & Resources: Marine Matrix
28
Markets Covered:
Fisheries• Fisheries Quota• Fisheries Buyout
Conservation Banking
Carbon
Sustainable Tourism
Water Quality
Biodiversity
Disaster Mitigation
Existing/Developed
Emerging
Conceptual
Tools & Resources: Marine Matrix
29
Market & Sub-marketsCompliance vs. VoluntaryGeographic region
Market SizeCurrent size in dollars10, 40 year forecasts
Developing World ImpactCurrent size in developing countriesQualitative assessment of potential
Environmental ImpactCurrent/Potential environmental benefit
Market ParticipantsBuyers/Sellers
Market ShapersRegulators/Policy Makers/Advocates/Critics
Market Service ProvidersConsultants/Brokers/Investors/Analysts
Future DirectionTrends and emerging developments
Alternative SolutionsCost of Business as Usual
“Blue” Carbon Market: developing/emerging
Sub-Markets: Voluntary carbon market, cap-and-trade, REDD, CDM
Potential Market Size: $100 million –4+ billion
Growth Rate: ?
Dev World Impact: High
Potential Enviro Benefit: High
Market Information Providers: Few(Market need)
Future Direction: development of methodologies for incorporation into existing carbon markets and international mechanisms
Tools & Resources: Marine Matrix
30
• Growing Network• Identifying and creating products to service the community:
• Marine Matrix• Marine Portal• Guidelines• Policy Statements (e.g. Mangrove Call to Action)
• Exchanging Lessons Learned on the ground
Marine Katoomba
PES for Beach Maintenance
Beach Erosion
PES
$$$
Location: San Andres Island, ColombiaMARES Partner: CORALINA
PES for Biodiversity – Sea Turtle Protection
Location: Akumal Bay, MexicoMARES Partner: Centro Ecológico Akumal
Fisheries PES: No‐Take Zone
$
$
Location: Puerto Morelos, MexicoMARES Partner: COBI
Mangrove Carbon Offsets
Carbon Capture of Mangrove Soils:6 x undisturbed Amazonian Rainforest
+Many co‐benefits
• Methodology development•Global pilot scoping
Tundi [email protected]
Winnie [email protected]
www.forest-trends.org/mareswww.ecosystemmarketplace.com
37
Terrestrial PES Markets
MarketAnnual Global
ValueAnnual Value
in U.S.Voluntary Carbon Market (2009) US$387 M --
Biodiversity Markets US$1.8 – 2.9 B US$1.5 – 2.4 B
Water Quality Trading/ Payment for Watershed Services (2008)
US$ 9.3 B US$1.3 B
