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About the CFA

About the CFA. The Conservation Finance Alliance is a collaborative network established in 2002, whose mission is to promote sustainable financing for biodiversity conservation worldwide. How does the CFA accomplish this mission?.

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About the CFA

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  1. About the CFA The Conservation Finance Alliance is a collaborative network established in 2002, whose mission is to promote sustainable financing for biodiversity conservation worldwide How does the CFA accomplish this mission? Through the exchange of knowledge and experience between its members Who are the CFA members? Volunteers from around the globe who represent institutions as diverse as NGOs, governments, multilateral agencies, foundations, private companies, research centers, as well as independent consultants

  2. CFA members • Sponsoring members More than 215 registered members, based in 65 countries

  3. CFA activities • CFA members take part in: • Working Groups: Environmental Funds, Innovative Finance Mechanismsand Protected Areas Financing– and respective committees to carry out specific projects • The CFA Executive Committee – responsible for decision-making • The CFA Secretariat – facilitation and operational support • Together, CFA members: • convene virtual meetings – monthly conference calls and online collaboration; • organize physical meetings and workshops; • carry out surveys and publications; • develop online libraries

  4. CFA website www.conservationfinance.org

  5. CFA in action Environmental Funds Tool Kit – free online data base of Environmental Funds’ documents from all regions of the world http://toolkit.conservationfinance.org Conservation Trust Fund Investment Survey – an annual report that covers the performance of Conservation Trust Funds since 2007 www.conservationfinance.org/library.php Rapid Review of Conservation Trust Funds – overview of experience with the creation, operation and evaluation of CTFs www.conservationfinance.org/library.php

  6. Contact Fernanda Barbosa Funbio | CFA Secretariat Fernanda.barbosa@funbio.org.br secretariat@conservationfinance.org

  7. Study of Comparative Advantages of CTF versus Project for Protected Areas Objective: to compare the advantages and disadvantages of financing through a long-term, CTF mechanism versus a project-finance approach to support Protected Areas Systems, as well as to put in evidence the conditions that determine the decision of both investment options. The focus of the study is on Africa and LAC.

  8. Study of Comparative Advantages of CTF versus Project for Protected Areas Underlying issue: In most countries a PA financing gap exists, i.e. the demand for finance in a national PA system is significantly higher than the supply of finance. In many countries this gap is expected to increase over time. Illustration: Belize An estimated US$8.9 million was spent in total on the PA system in 2010. Using the UNDP’s Financial Scorecard methodology (Bovarnick, 2010) and the Threshold of Sustainability for Tourism approach (Drumm, McCool, Rieger, 2011), financing needs for a basic scenario is US$18.5 million. Funding Gap: US$9.6 million for the basic scenario increasing to US$ 19.4 million for an optimal scenario.

  9. Study of Comparative Advantages of CTF versus Project for Protected Areas • 1) to elaborate an overall PA financingstrategy: identification of needs and gaps as part of a business plan, takingintoaccount: • Identification • Segmentation of needs • Life cycle of the PA • Ref. management effectivenesstools: METT, UNDP Scorecard, etc.

  10. Study of Comparative Advantages of CTF versus Project for Protected Areas => 2) identify which mechanisms /tools (projects, CTF), when and in what form, can help finance which priority gaps and needs of PAs, in the context of long term strategic importance of maintaining the PA system

  11. Study of Comparative Advantages of CTF versus Project Financingfor Protected Areas Determiningfactors and elements of comparison between CTF (long-term) and donor project finance (short-term) Analysis of when CTF and/or donor projects contribute to, among other things: building capacity, building institutions, encouraging enabling policies, delivering conservation, enhancing the effectiveness of overall PA management

  12. Study of Comparative Advantages of CTF versus Project for Protected Areas

  13. Study of Comparative Advantages of CTF versus Project for Protected Areas • Madagascar Biodiveristy Fund: success in attracting, bundling and coordinating the allocation of endowment capital and sinking funds of a multitude of donors. • Development of specific operational guidelines and procedures for PA’s e.g.: earmarking, eligible recurrent costs, the eligibility and priority criteria to choose protected areas that are suitable for financing, as well as requirements for contracting protected area management, fiduciary management, safeguard aspects and monitoring Illustration 1 CTF as advocacy organization and as a key actor of public policy lobbying : multi-donor and multi-stakeholder structure of a CTF makes it a very effective instrument to lobby for policy.

  14. Study of Comparative Advantages of CTF versus Project for Protected Areas Illustration 2 In Uganda the Bwindi Mgahinga Trust has supported key PA management plan components of two important PAs with endangered mountain gorillas since 1995. Earnings from the Eco-tourism in those parks today subsidizes the operations of the national park system with the Trust supporting community programs, research and targeted management – making more funds available for other PAs CTF generally have a business/PA finance strategy attached that is in line with government and PA policy. That strategy provides a clear pathway to systematically address financial and capacity barriers over time.

  15. Study of Comparative Advantages of CTF versus Project for Protected Areas Illustration 3 Eastern Arc Mountains Conservation Endowment Fund received $6 million to support conservation in the fragile mountains of eastern Tanzania over five years. Grant to CTF based on reputation for good fiscal management and ability to deliver on the ground For 5 years with no withdrawals from the endowment – EAMCEF will grow its capital and increase its ability to support conservation CTFs continuously and systematically leverage additional finance from various sources (project owners, commercial banks and insurers, leasing companies, national/regional/local government budgets, foreign sources)

  16. Study of Comparative Advantages of CTF versus Project for Protected Areas Some Lessons CTFs are a very useful vehicle to provide long-term financing for PA’s and implementation of PA policy- but there are limitations CTF funding is often limited in amount and scale – larger investments such as project financing is necessary to meet infrastructure and other investment needs CTFs play an important regional and national institutional role – a private or public-private venture dedicated to providing public goods Insufficient information is available yet to determine the proper mix or strategy between project and long-term funding “What CTF have been able to achieve is a mix of various functions » Jean Paul Paddack

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