Upload
philippine-press-institute
View
81
Download
2
Embed Size (px)
Citation preview
our goal:
lasting human well-being
fresh water | food | climate resilience | livelihoods
CI-P’s ES work
• Mapping of Ecosystems Services in KBAs
• TEV of MMPL and Endowment Challenge Fund
Capitalization
• Quirino Forest Carbon Project – completed validation
and verification
• Building Community and Ecosystems Resilience to
Climate Change and Disasters through Green Grey
Infrastructure in Concepcion, Iloilo
• Cost Effectiveness of Coastal Protection Services in
Silonay Mangrove Forest Conservation and
Ecotourism area – An EbA to CC intervention
• National Blue Carbon Technical and Policy Working
Group
Conservation
Finance: An
Endowment Fund
for
Mt.
Mantalingahan
Protected
Landscape
(MMPL)
Cagayan de Oro
November 2016
Ricky Nuñez Country Executive Director
• Introduction to CI’s conservation
finance
• CI’s experience in conservation
finance
• MMPL TEV
• MMPL Endowment
• MMPL Endowment Benefits
• Next Steps
SESSION OUTLINE
©Photo credit
Introduction• Conservation Finance describes the practice of raising and managing capital to support land, water, and resource conservation.
• Conservation has traditionally been financed mostly through grants.
• Great potential to finance more conservation through commercial investments where Conservation activities activate cash flows (PES).
What Conservation Finance?
Non grant financing
Indirect or a direct financial investment in conservation which is made to activate cash flows part of which goes back to the investors. This is often referred to as Impact Investing.
Cash flows can be generated from PES.
Investment is usually in the form of debt or equity.
Sources of Non-grant financing: Impact driven organizations (foundations, for profit impact investors etc.), international financial institutions (including through green bonds), investment funds (eg – MeloyFund, Althelia and Ecobusiness Fund) and traditional commercial investors.
Grant financing
• Grants are non-repayable funds or
products disbursed by one party (grant
makers), often a government
department, corporation, foundation or
trust, to a recipient, often (but not
always) a nonprofit entity, educational
institution, business or an individual.
• Sources of Conservation Grants:
Philanthropy (individuals, foundations
etc.), government (including debt
swaps), international financial
institutions and corporations (CSR,
etc).
Experience in Grant Financing
CI’s global conservation fund (GCF) has
significant experience in sophisticated grant
financing for long term conservation funds which
are either endowments or sinking funds.
GCF finances the creation, expansion and long-term management of protected areas in the world’s biodiversity hotspots, high biodiversity wilderness areas and important marine regions.
GCF helps finance long-term management of protected areas by helping to establish and capitalize endowments.
An Endowment Fund is a trust fund scheme where the CAPITAL is PRESERVED AS A PERMANENT ASSET and only the income from INTEREST earned on its capital is SPENT.
GCF endowments are managed by conservation trust funds (CTFs).
GCF in the Philippines
Presidential Proclamation 181523 June 2009
120,457 hectares
2013 Best Protected Area showcasing Civil Society Partnership
History of CI Engagement in MMPL
Planning Phase – 2004 Outputs:
A project entitled “Creating a New Protected Area in
Mantalingahan Mountain Range” was developed.
A rapid biological survey in four sampling sites in the
lowland forests of Mantalingahan range confirmed high
species richness and diversity.
A rapid stakeholder and policy analysis was
undertaken
History of CI Engagement in MMPL
Implementation Phase – 2005-2010 and
Desired Outputs:
Presidential Proclamation for Mt.
Mantalingahan 2009
Management plan 2010
Business plan 2010
Some of the steps undertaken: Compilation of Maps
and Technical Description
Municipality
# of
Brgys Area (ha)
Rizal 8 59,406.79
Brooke’s Pt. 14 34,412.07
Quezon 5 13,367.52
Bataraza 6 8,159.04
Espanola 3 5,111.58
TOTAL 36 120,457.00
Some of the steps undertaken: Resource Profiling
Presidential Proclamation - June 2009
MMPL Management MMPL is managed by a Protected Area Management Board (PAMB) • composed of 71 members• affirmed by the DENR Secretary• guided by an adopted operations manual
MMPL Management Programs(2010-2020)
1. Resource Management and Protection2. Community Development and Outreach3. Tourism and Recreation4. Institutional Development, Administration and Fiscal
Management
Why is Mantalingahan Important?Forest cover: 79%11 forest types
Plants: 920 species Mammals: 35 species Birds: 129 speciesReptiles: 30 speciesAmphibians: 14 speciesGlobally threatened: 23 species
New Discoveries: at least 11 species(both flora & fauna)
Saccolaimus saccolaimus
Pin-tailed parrot finch
Erythrura prasina
Coelogyne
Palawan soft-furred mountain rat
Palawanomys furvus
© CI Phils
© CI Phils © CI Phils
Medinilla sp.
© CI Phils
© CI Phils
1. Direct UsesWater, TimberOccupants’ land-based livelihood,Occupants’ river-based livelihood, Ecotourism
2. Indirect UsesCarbon stock, Soil conservation, Soil fertility maintenance, Watershed and biodiversity functions Protection of coastal & marine ecosystemsEcosystem services of tropical forests Recreation
Why is Mantalingahan Important?
MMPL Total Economic Value: $5.6B
Estimated reduction in benefits if
mining will be allowed is $1.118
billion, while the cost of rehabilitation
is $105 million for a total of $ 1.223
billion
at least US$ 3M(assuming net 5% per annum interest,
to cover the minimum annual management expenses)
Target Endowment Capital
MMPL is the first protected area in the country with an endowment fund
US$ 1M challenge capital fund
CI’s Commitment to MMPL endowment
Launch of Endowment Fund for
Mt. Mantalingahan Protected Landscape (MMPL)Palawan, Philippines
CI provided a of US$1 Million to PTFCF (endowment manager) as initial capital for the MMPL Endowment, pursuant to a grant
agreement entered into in January 2016. The endowment fund will be launched on October 7, 2016 in Manila.
• PA proclaimed in June 2009
• 120,457 hectares
• habitat of more than 1000 species of
flora & fauna
• home to at least 12,000 indigenous
Palawan men & women
• total economic value is US$5.6B of
MMPL
• first Protected Area in the country with
an endowment fund
Philippine Tropical Forest Conservation Foundation (PTFCF)
Trust Fund Manager
Grant agreement between CI (GCF) and PTFCF was signed in January 2016
MMPL Endowment Operations Manual adopted by PTFCF to supplement PTFCF governance and administrative rules
MMPL Endowment Oversight Committee established to assist PTFCF Board to govern MMPL Endowment
Endowment invested in a diversified investment portfolio targeting a net USD equivalent 5% annual return
Endowment revenues primarily allocated to costs prescribed in an acceptable annual work plan and budget submitted by the MMPL PAMB for the financing of activities under the MMPL Management Plan
Major Elements of MMPL Endowment
Endowment Fund Management StructurePhil. Tropical Forest
Conservation Foundation (PTFCF)
(Trust Fund Manager)Owns Endowment Sub-Account; Manages Endowment Investment, with the advice of an Investment Advisor;Makes grant making decisionsAdministers grant-making;Assists with fund raising
Endowment Oversight Committee
Makes grant making recommendations to the Trust Fund Manager;Reviews investment management;
MMPL PAMB(Implementing
Body)
Submits workplans and budgets;
Provides reports
Advises
Periodic transfers of grants
Benefits from MMPL Endowment sustainable financing for adequate and long term protection of the
ecosystem services of MMPL such as promoting sustainable
ecotourism
livelihood diversification for at least 12,000 indigenous Palawan men
and women towards improving their well-being
ensure clean freshwater to all residents of southern Palawan for
domestic and agricultural uses
Ensure management effectiveness of MMPL.
stop deforestation and contribute towards carbon sequestration
(approx 32MtC)
PTFCF Board of Trustees to approve MMPL endowment operations manual; - done October 2016
Disbursement of GCF endowment capital grant ($1M) to PTFCF; - Done October 2016
Finalizing investment management arrangements for the MMPL Endowment. - Being undertaken with an investment institution. Fundraising for MMPL Challenge capital fund
to fill the gap of $2M.
Next Steps
MARAMING
SALAMAT PO!