United Nations Conference on Trade And Development 2 years of Bi Trade Connecting people, the planet and markets Note The views expressed are those of the authors and do not necessarily reflect those of the United Nations. The designations employed and the presentation of the material do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city area, or of its authorities, or concerning the delimitations of its frontiers and boundaries. Material in this publication may be freely quoted or reprinted, but acknowledgement is requested, together with a reference to the document number. A copy of the publication containing the quotation or reprint, should be sent to the UNCTAD secretariat: Palais des Nations, 1211, Geneva 10, Switzerland. This publication has been edited externally. For further information on UNCTAD’s BioTrade Initiative please consult the following website: http://www.unctad.org/biotrade or contact: [email protected]
Acknowledgements This publication, 20 years of BioTrade: Connecting people, the planet and markets, was compiled and prepared by Lorena Jaramillo Castro, Economic Affairs Officer, UNCTAD secretariat, under the supervision of Bonapas Onguglo, Senior Economic Affairs Officer, UNCTAD. Substantive support was provided by Neiva Rosa, consultant; Lalen Lleander, Programme Management Officer; David Vivas, Legal Officer; and Lucas Assunção, Head Trade, Environment, Climate Change and Sustainable Development (TED) Branch, UNCTAD. This publication was edited by Vivien Stone and designed by Sarah Thompson, Watermark Creative. UNCTAD would like to thank all the contributors to this commemorative publication marking 20 years of BioTrade. The broad support given by all partners and practitioners over the last two decades has enhanced the recognition of the role that BioTrade can play in achieving sustainable development, particularly regarding the 2030 Agenda for Sustainable Development, the Sustainable Development Goals and the Strategic Plan for Biodiversity 2011–2020. UNCTAD gratefully acknowledges the support of the Swiss State Secretariat for Economic Affairs (SECO) in the development of this publication under the BioTrade Facilitation Programme III (BTFP III).
Guillermo Valles Director Division on International Trade in Goods and Services, and Commodities (DITC)
UNCTAD/DITC/TED/2016/4 UNITED NATIONS PUBLICATION Copyright © United Nations, 2017 All rights reserved
ii Contents
Contents Acronyms v Foreword vi
BioTrade history and conceptual 1.3. BioTrade: A market driver for sustainable framework development 8 Introduction 8 1 1.1. BioTrade – harmonizing trade, biodiversity Defining products and services 8 and livelihoods 1 Reaching the market 9 Introduction 1 Market trends and opportunities 10 BioTrade countries 2 Conclusions 10 BioTrade sectors 3 BioTrade capacity and skills development 3 1.4. Reflections on the drivers of economic The next 20 years: Upscaling BioTrade and and financial sustainability in BioTrade the 2030 Agenda 4 initiatives 11 Introduction 11 1.2. BioTrade: An opportunity for synergy with Key aspects and lessons learned for the multilateral environmental agreements 5 development of BioTrade initiatives 12 Origins of the relationship between BioTrade Future opportunities 13 and MEAs 5 The Sustainable Development Goals and MEAs 7 Concluding remarks 7
BioTrade and people 2.4. Traditional knowledge as a business model: 2.1. BioTrade and livelihoods – Takiwasi and Ampik Sacha (Peru) 22 a possible synergy 15 Introduction 22 2 Introduction 15 A BioTrade business model that benefits Connecting BioTrade and livelihoods of people and nature 22 grassroots actors 15 Considerations on upscaling benefit-sharing Key message 16 models 23 2.5. Sandalwood: Ethical sourcing of a unique 2.2. Ecoflora Cares: Jagua value chain (Colombia) 17 and valued fragrance (Sri Lanka) 24 Introduction 17 Introduction 24 Implementation strategy 17 Setting up ethical sourcing of sandalwood Upscaling the jagua value chain to enhance in Sri Lanka 24 local livelihoods 18 Strengthening the sandalwood supply chain 25 2.3. Achuar and Shuar communities and the 2.6. Up in the mountains: Traditional herbal Chankuap Foundation: Resources for the remedy improves ethnic future (Ecuador) 19 minority communities (Viet Nam) 26 Introduction 19 Introduction 26 Enhancing local livelihoods through value Developing a value chain in the che-day herb 26 addition and trade of non-timber forest products 19 Valuing culture – key to developing livelihoods in the Ecuadorian Amazon region 21
BioTrade and the planet 3.4. Sustainability principles and criteria applied 3.1. BioTrade and the CBD – supporting to wild collection of non-wood forest conservation and sustainable use of products (Kosovo) 34 3 Introduction 34 biodiversity 29 Introduction 29 NWFP as a strategy to promote Kosovo’s development 34 3.2. Natura and the Suruí Forest Carbon Ways forward in developing the NWFP sector 36 Project (Brazil) 30 Science, biodiversity and trade 30 3.5. Traceability in orchids: A win-win tool to Investing in carbon credits to protect forests enhance sustainable trade (Peru) 37 and improve people’s lives 31 Introduction 37 The future is now – challenges and Implementing a traceability system for orchids 38 opportunities 31 Upscaling this experience at the national level 39 3.3. EcuaFrog, WIKIRI and the amphibian pet trade (Ecuador) 32 Introduction 32 How WIKIRI contributes to research and to reducing amphibian depletion 32 The future of the sustainable trade of Ecuadorian amphibians 33
iii 20 years of BioTrade
BioTrade and markets 4.4. Promoting sustainable cocoa (Ecuador) 49 4.1. BioTrade and market-driven strategies to Background 49 develop biodiversity-based sectors Accessing international cocoa markets 50 4 Recommendations for enhancing markets and businesses 41 The impact of biodiversity and social for associations of small cocoa farmers concerns in trade and development agendas 41 in Ecuador 50 BioTrade actions to access national and 4.5. Novel food regulation: Beyond a technical international markets 41 protocol? Sacha inchi oil (Peru) 51 Concluding remarks 42 Background 51 “Novel food” as a driver for collective action 52 4.2. Developing inclusive and resilient Positioning sacha inchi 53 indigenous natural products sector (southern Africa) 43 4.6. When all that is needed is a little push A bottom-up approach 43 (Viet Nam) 54 Lessons learned 44 Introduction: The dedication of a Vietnamese Way forward 44 small business to reach big markets 54 Upscaling Vietroselle: Next steps 55 4.3. Communitarian ecotourism: An idea full of nature (Colombia) 46 Introduction 46 Colombia – a destination for peace and nature 46 The real significance of communitarian ecotourism 47 Conclusions 48
Partnerships 5.4. Vision matters: BioTrade implementation 5.1. The role of partnerships in unlocking (Viet Nam) 64 BioTrade potential 57 Introduction 64 5 The BioTrade Implementation Group 65 Introduction 57 Orchestrating the governance of BioTrade 57 Lessons learned from developing Partnerships as challenges and opportunities partnerships in Viet Nam 65 for BioTrade 58 5.5. Biodiversity-based businesses: 5.2. The BioTrade Initiative and CITES 59 Leveraging new ecological economies 66 CITES and BioTrade: Introduction 66 A long-standing partnership 59 Fostering partnerships – selected Projects and achievements 59 Groupe Rocher case studies 66 Challenges and opportunities ahead 60 Key lessons and recommendations in developing effective partnerships 68 5.3. BioTrade – a resilience-building tool: Helping states fulfil the pledge of leaving 5.6. Enhancing the sustainability of the python no one behind 61 skin trade through innovative partnership 69 Background 61 Python Conservation Partnership 69 Upscaling the UNDP-UNCTAD collaboration 61 Challenges and achievements of the partnership 70 What can other partnerships learn from the PCP? 70
Future challenges and opportunities 6.1. BioTrade and people 73 6 6.2. BioTrade as a conservation tool 75 Challenges 75 Opportunities 75 6.3. Emerging issues on markets for BioTrade and biodiversity-based businesses 76 6.4. BioTrade and sustainable development 77 6.5. BioTrade, Aichi Targets and the SDGs 78 Aichi Targets and the SDGs 78 Connecting the SDGs and Aichi Targets 79 BioTrade and the SDGs 81
References 82 Notes 85
iv Acronyms
Acronyms ABP Andean BioTrade Project MINAM Ministry of Environment (Peru) ABS access and benefit sharing MINCETUR Ministry of Foreign Trade and Tourism (Peru) AGR access to genetic resources MoU memorandum of understanding B2B business-to-business NBSAPs national biodiversity strategies and BIG BioTrade Implementation Group (Viet Nam) action plans BT P&C BioTrade Principles and Criteria NFR novel food regulation CAF Development Bank for Latin America NGO non-governmental organization CBD Convention on Biological Diversity NTB non-tariff barriers CEI communitarian ecotourism initiatives NTF non-timber forest CEPNN Communitarian Ecotourism Programme in NTMs non-tariff measures National Parks (Colombia) NWFP non-wood forest products CITES Convention on International Trade in PCP Python Conservation Partnership Endangered Species of Wild Fauna PIC prior informed consent and Flora PNN National Natural Parks (Colombia) COP/CoP Conference of the Parties PROMPERU Export and Tourism Promotion Agency of CORPEI Corporación de Promoción de Peru Exportaciones e Inversiones (Ecuador) PTA PhytoTrade Africa COSiRA Competitiveness of the Private Sector in Rural Areas (Kosovo) R&D research and development CSR corporate social responsibility REACH Registration, Evaluation, Authorization and Restriction of Chemicals (EU) EFSA European Food Safety Authority REDD+ Reducing Emissions from Deforestation EU European Union and Forest Degradation, conservation, FAO UN Food and Agriculture Organization sustainable management of forests and FDA Food and Drug Administration (USA) enhancement of forest carbon stocks FEKIHD Federación Kichwa Huallaga Dorado (Peru) SDGs Sustainable Development Goals FSAI Food Safety Authority of Ireland SECO State Secretariat for Economic Affairs GACP good agriculture and collection practices (Switzerland) GEF Global Environment Facility SFCP Suruí Forest Carbon Project (Brazil) GHG greenhouse gas SMEs small and medium-sized enterprises GIIB BioTrade Research and Innovation Group SPS sanitary and phytosanitary (Peru) SSIT Sete de Setembro Indigenous Territory GIZ Die Deutsche Gesellschaft für Internationale (Brazil) Zusammenarbeit (German Agency for TBT technical barriers to trade Cooperation) TK traditional knowledge GMP good manufacturing practice UEBT Union for Ethical BioTrade GRAS Generally Recognized As Safe (USA) UNCCD United Nations Convention to Combat HACCP hazard analysis and critical control points Desertification IDP internally displaced person UNCTAD United Nations Conference on Trade and ILCs indigenous and local communities Development INP indigenous natural product UNDP United Nations Development Programme IPBES Intergovernmental Science-Policy Platform UNEP United Nations Environment Programme on Biodiversity and Ecosystem Services UNFCCC United Nations Framework Convention on ISO International Organization for Climate Change Standardization UNOCACE Unión de Organizaciones Campesinas Cacaoteras del Ecuador (Union of Peasants ITC International Trade Centre Organizations of Cocoa of Ecuador) IUCN International Union for Conservation of UNWTO United Nations World Tourism Organization Nature VIETRADE Viet Nam Trade Promotion Agency JECFA Joint FAO/WHO Expert Committee on Food Additives WHO World Health Organization MAFRD Ministry of Agriculture, Forestry and Rural Development (Kosovo) MAT mutually agreed terms MEA multilateral environmental agreement
v 20 years of BioTrade
Foreword
Twenty years ago, the BioTrade Initiative was launched as the UNCTAD response to implementing the 1992 Earth Summit’s Agenda 21, the blueprint for sustainable development action into the twenty-first century. The BioTrade Initiative aims at promoting the conservation and sustainable use of biological resources through international trade and investment. UNCTAD coined the term “BioTrade”, which has become recognized in efforts to promote sustainable development and poverty alleviation through trade and investment. The BioTrade Initiative facilitates and supports national, regional and international BioTrade programmes, partnerships and businesses that have contributed to fighting biodiversity loss while ensuring the sustainable use of biological resources and ecosystems. Activities are implemented in close cooperation with the secretariats of the Convention on Biological Diversity and the Convention on International Trade in Endangered Species of Wild Fauna and Flora on the development of regulatory and institutional frameworks to prevent illicit trade in natural species and to safeguard them. The experiences, lessons and successes in the articles shared by BioTrade practitioners in this commemorative publication attest to the reach of BioTrade and the BioTrade Initiative. There are now ongoing BioTrade activities in over 20 countries. Efforts cover a range of products and services in a variety of biodiversity-based sectors. Building sustainable livelihoods, particularly for rural communities and marginalized groups, in biodiversity-rich developing countries is central to the conservation and sustainable use of nature’s resources. Thus, UNCTAD collaborates with Governments, the private sector and international organizations in developing and promoting BioTrade programmes and businesses that adhere to sustainable development principles, ethical sourcing of biological resources, access and sharing of benefits, proper traceability of products derived from biodiversity and awareness raising of the value of nature. Improving income earning opportunities for rural communities can also bring added dividends such as consolidating peacebuilding in post-conflict areas. Most recently, at the fourteenth session of the United Nations Conference on Trade and Development in Nairobi in July 2016, member States agreed on how the institution should contribute to achievement of the 2030 Agenda for Sustainable Development and its Sustainable Development Goals by fostering inclusive trade and sustainable development policies. In the Conference’s outcome document, the Nairobi Maafikiano, they agreed specifically to “promote sustainable trade in biodiversity products and services to strengthen the sustainability of biodiversity and foster sustainable growth, in close cooperation with other relevant agencies where appropriate”. The agreement marks a new milestone in the evolution of BioTrade and will serve as a the platform through which UNCTAD will act on the 2030 Agenda, especially Sustainable Development Goal 15 which seeks to “protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss”. Since 1996, UNCTAD has contributed to the evolution of a group of producers, processors and retailers committed to conserving the biodiversity wealth of countries and guaranteeing sustainable use of biological resources under fair and equitable conditions. Going forward, Sustainable Development Goal 15 sets a path for UNCTAD and the international community to use tried and tested approaches, such as those consistent with the BioTrade Initiative’s vision, to conserve and use nature sustainably to meet the needs of present populations without jeopardizing those of future generations.
Mukhisa Kituyi Secretary-General United Nations Conference on Trade and Development © Fotolia: Sergey Belov © Fotolia: Sergey
vi Foreword
For over a decade, Switzerland, through the State Secretariat for Economic Affairs SECO has been partnering with UNCTAD and other international and national partners in the fields of the sustainable use of biodiversity. It has done this from a trading perspective through the BioTrade Initiative and in support of the objectives of the Convention on Biological Diversity. The importance of biodiversity cannot be highlighted enough. Located mainly in rural areas, it provides for the basic needs of the poor as well as essential resources and services to industries. Currently, strong consumption trends favor demand for sustainably sourced products and services, thus generating new opportunities for biodiversity products and services, including BioTrade. However, biodiversity is decreasing at accelerating rates, reducing ecosystems’ capacities to provide their essential services for humans, affecting in particular those who depend most and directly on those resources. Furthermore, in many developing countries rich in biodiversity, conservation efforts are often not sufficiently taken into consideration. One promising way to address this is to attribute economic value to biodiversity, by developing incentives both for conservation and for sustainable use. Trade, if sustainably managed, can be a positive incentive by generating income for local communities who sustainably manage their resources. The BioTrade conceptual framework and approach, with their set of principles and criteria for the sustainable use of biodiversity, can be a real change maker in favor of ecosystems and livelihoods for the poor. The global sales of BioTrade value added products and services reached €4.3 billion in 2015. A previously niche green market is transforming into a robust subsector of the economy of many developing countries. Small and medium-sized enterprises, grassroots associations and cooperatives, in particular, are the direct beneficiaries of this commercialization. They benefit from increases in their income and improvements in their livelihoods. In the coming years, SECO intends to continue and deepen its engagement with national and international partners at different levels and on different issues. This is in line with Switzerland’s commitment to double its financial engagement in favor of biodiversity by the year 2020. The effort to harness the enormous market opportunities by engaging in trade of biodiversity products is not an easy task. Establishing sustainable BioTrade value chains requires coordinated and sustained work by a large variety of actors, from the public, private and academic sectors as well as civil society. UNCTAD’s BioTrade Initiative supports partners – governments, companies and civil society alike – to address these challenges and capitalize on the opportunities offered by BioTrade. Only by joining forces at all levels, we can seize such opportunities in favor of ecosystems and the livelihoods of the poor. This is a direct contribution to the implementation of the Agenda 2030 and the SDG targets.
Raymund Furrer Ambassador Head of Economic Cooperation and Development State Secretariat for Economic Affairs SECO Switzerland
vii 20 years of BioTrade
UNCTAD, through its BioTrade Initiative is one of the oldest partners contributing to the implementation of the Convention on Biological Diversity (CBD). Formal cooperation between the CBD Secretariat and UNCTAD on BioTrade goes back to October 1997. There are good reasons for this long-standing cooperation. Parties to the CBD recognized early on that BioTrade – which comprises all economic activities related to the production and trade of biodiversity based products under sustainability criteria – can provide important incentives towards the conservation and sustainable use of biodiversity. In circumstances where the risk of converting natural landscapes to other purposes is high, encouraging sustainable use of natural resources can provide incentives to conserve biodiversity. Ensuring that the right incentives are in place to promote sustainable use is critical for the effective implementation of the Convention. In Article 11, the Convention encourages measures that act as incentives for conservation and sustainable use, including measures that promote BioTrade. The decisions and work programmes of the Conference of the Parties of the Convention contain frequent references to BioTrade activities, including appreciative language with regard to the activities of the UNCTAD BioTrade Initiative and invitations to continue its good work. There is a growing number of BioTrade programmes at national and subregional levels. The BioTrade Initiative and its partners have also supported the development of products based on fauna, food, fashion, personal care products, nature-based tourism and REDD+ projects. In 2007, global guidance on BioTrade, the BioTrade Principles and Criteria, was published, and other sector-specific guidance material has also been produced. There is a growing network of BioTrade partners, including the United Nations Development Programme (UNDP), the Union for Ethical BioTrade (UEBT), Development Bank of Latin America (CAF) and PhytoTrade Africa, among others. The BioTrade Principles and Criteria also include a reference to fair and equitable benefit sharing, thus referring to the third objective of the Convention, and the focus of the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of the Benefits from their Utilization to the CBD. The entry into force of the Nagoya Protocol in 2014 creates opportunities for developing business models that rely on sustainable use and increased knowledge of the value of natural resources. It creates incentives for preserving genetic diversity, and biodiversity more broadly, as well as associated traditional knowledge while providing the conditions for continuous research and development on genetic resources. With the middle of the United Nations Decade on Biological Diversity reached, and enormous work ahead of us if we are to achieve the Strategic Plan for Biodiversity 2011–2020, BioTrade provides an opportunity for scaling up sustainable use of biodiversity. Thus, taking steps to strengthen markets for BioTrade and putting in place supportive policies would help leverage the contribution that BioTrade can make to meeting the objectives of the Convention. The need to further enable the environment for BioTrade remains an important challenge, as we move to the next 20 years. I would like to encourage more countries to benefit from the experiences developed in the last 20 years under the BioTrade Initiative.
Braulio Ferreira de Souza Dias Executive Secretary Convention on Biological Diversity © Fotolia: Fotos 593
viii Foreword
We would like to warmly congratulate the BioTrade Initiative of UNCTAD on the launch of this 20th anniversary publication. This publication shows the culmination of two decades of hard work and commitment in enhancing environmental, social and economic sustainability in the trade of biodiversity- related goods and services. 2016 is also the 15th anniversary of the cooperation between the BioTrade Initiative and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). CITES is both a global conservation convention as well as a trade-regulatory body, whose mandate is to ensure that international trade in CITES-listed wildlife does not threaten their survival. CITES recognizes that commercial trade in certain wildlife may be beneficial to the conservation of species and ecosystems, and/or to the development of local communities when carried out at levels that are not detrimental to the survival of the species in question. CITES was described in the outcomes of Rio+20 in 2012 as an international agreement that stands at the intersection between trade, the environment and development, promotes the conservation and sustainable use of biodiversity, and should contribute to tangible benefits for local people. The BioTrade Initiative is an ideal partner in advancing the joint endeavour of ensuring the conservation of species and enhancement of the livelihoods of local communities, whilst also facilitating income-generating opportunities for those compliant with the Convention’s requirements and national legislation. Today, 182 Parties to CITES are making concerted efforts to regulate the international trade in more than 35 000 animal and plant species, recording over one million trade transactions per year. We remain committed to focusing on the Convention’s three pillars of legality, sustainability and traceability, and our cooperation with UNCTAD and its BioTrade Initiative provides a strong foundation to further improve the mutual supportiveness between trade and environment. The United Nations Sustainable Development Summit held in New York in 2015 adopted the SDGs, which envisage a world “in which humanity lives in harmony with nature and in which wildlife and other living species are protected”, and many of the 17 goals and 169 targets in the SDGs are of specific and common relevance to the BioTrade Initiative and CITES. In this pivotal year for sustainable development, we must keep in mind the importance of strengthening multilateral and cross-cutting cooperation to tackle increasingly interconnected global challenges. We believe that the CITES-BioTrade Initiative collaboration is a great example of a how focused and effective such collaborative effort can be.
John E. Scanlon Secretary-General Convention on International Trade in Endangered Species of Wild Fauna and Flora
ix © Fotolia: Misao NOYA BioTrade, biodiversity, AichiTargets andSDGs:Factsfigures Number ofbeneficiaries US$40 millionin2003 A significantincreasefrom €4.3 billion companies andassociations Sales ofBioTrade beneficiary BioTrade impactinfigures economic sustainabilitycriteria. under environmental, socialand (species andecosystems) from nativebiodiversity goods andservicesderived commercialization of transformation and Collection, production, BioTrade • Forestry-based • Sustainabletourism • Textiles andnaturalfibres • Handicrafts floraandfauna • Ornamental • Fashion • Food • Pharmaceuticals/ • Personalcare BioTrade activities: Sectors involvedin Around worldwide 5 million hunters, workers, amongothers Producers/farmers, collectors/ activities. carbon credit phytopharma 1 conceptual framework BioTrade historyand (2015)
Source: Adapted from Lojengaand Oliva,2016. 20 AichiTargets directly to13ofthe BioTrade contributes and theAichiTargets Biodiversity 2011–2020 Strategic Planfor different ecosystems. the species,and genetic varietywithin animals andmicroorganisms, the including thewiderangeofplants, The varietyoflifeonEarth, Biodiversity 7000 17% 86% 70% unknown. uses) are still their potential of species(and purposes. medicinal are usedfor of plantspecies food. by peopleas are consumed plant species biodiversity. directly on poor depend of theworld’s than biodiversity. food companiesnowmention companies and annual reporting isgrowing. report onbiodiversityintheir The numberofcompaniesthat responsibility. environmental (andbiodiversity) Compact, committingtogreater up totheUnitedNationsGlobal and prosperity. ensure allliveinpeace poverty, protect the planetand are aglobalcalltoaction.To end Development adoptedin2015, Agenda forSustainable The SDGs,partofthe2030 Goals Sustainable Development to almostallSDGs BioTrade contributes 36 12 000 83% awareness Business andbiodiversity 8 SDGs Directly to biodiversity. policies inplacethatrespect companies tohavesourcing ofthetop100cosmetic ofconsumersexpect 70 companiesinmore countrieshavesigned 94% 60 ofthetop100 to 8SDGs Indirectly
Chapter I. BioTrade history and conceptual framework
BioTrade – harmonizing trade, biodiversity 1.1 and livelihoods
In 1996, UNCTAD created the term “BioTrade” and the BioTrade Initiative as an instrument to enable countries to harmonize economic development with conservation of biodiversity through the trade of goods and services derived from biodiversity. Over the past 20 years, several organizations and companies in a number of countries have engaged in implementing BioTrade across a variety of sectors.
Introduction To more fully develop this concept, Lorena Jaramillo, UNCTAD, jointly with international and UNCTAD, through its BioTrade Economic Affairs national partners and practitioners, Initiative, has been promoting trade Officer, UNCTAD; established the BioTrade Principles and investment in biological resources Bonapas Onguglo, and Criteria (BT P&C). These, (biological resources and ecosystems) Senior Economic combined with the four distinctive Affairs Officer, to further sustainable development approaches (value chain, sustainable UNCTAD and poverty alleviation in line with the livelihoods, ecosystem and adaptive three objectives of the Convention on management),2 guarantee the Biological Diversity (CBD):1 sustainability of the interventions. This • Conservation of biodiversity; framework addresses the objectives of • Sustainable use of its components; biodiversity-related MEAs in the broader and context of sustainable development and responsible business (Figure 1.2). • Fair and equitable sharing of benefits For instance, the BT P&C enable the arising from genetic resources. identification of social, economic and Additionally, it contributes directly to environmental challenges and gaps of the achievement of conservation and beneficiaries that need to be addressed sustainable development objectives through the implementation and of other multilateral environmental monitoring of customized workplans agreements (MEAs). One such to guarantee actions are sustainable. agreement is the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), to which UNCTAD has provided support to promote legal, Figure 1.1 Origin of “BioTrade” sustainable and traceable trade in endangered species. Finally, with the adoption of Agenda 2030 and the Sustainable Development Goals (SDGs), the BioTrade Initiative will contribute to the implementation of Development Trade almost all SDGs, notably SDGs 15, 17 and 12. BioTrade refers to the collection, production, transformation and commercialization of goods and Biodiversity services derived from native biodiversity (species and ecosystems) under environmental, social and economic sustainability criteria. This should not be confused with the conduct of “biotrade” in general which does not necessarily relate to “native” species and which also does not adopt or implement BioTrade’s frameworks or its tools/ UNCTAD created the term: methodologies. Bio + Trade
1 20 years of BioTrade
Figure 1.2 BioTrade conceptual framework: Mandates, principles and approaches
Mandates BioTrade Principles Approaches
P1. Conservation of biodiversity Value chain MDGs, SDGs P2. Sustainable use of biodiversity
P3. Equitable benefit-sharing Sustainable livelihoods
UNCTAD XII, XIII, XIV P4. Socioeconomic sustainability
P5. Legal compliance Ecosystem approach
P6. Respect for actors’ rights CBD, CITES and other MEAS Adaptive management P7. Clear land tenure and resources access
Source: Adapted from UNCTAD, 2007a.
BioTrade countries Nations Development Programme Zusammenarbeit (German Agency for (UNDP), International Trade Centre Cooperation - GIZ). At the national Over 20 developing countries in Africa, (ITC) and the United Nations level, partners include ministries of Asia and Latin America now implement Environment Programme (UNEP), environment and trade in Colombia, BioTrade, its concept or methodologies, among others. UNCTAD’s BioTrade Ecuador, Peru and Viet Nam, trade with the support of national, regional Initiative receives support from donors, promotion agencies in Ecuador, Peru and international BioTrade partners in particular the Swiss State Secretariat and Viet Nam, non-governmental (Figure 1.3). Some companies working for Economic Affairs (SECO)/ organizations (NGOs) such as in developed countries, such as France, Government of Switzerland. HELVETAS Viet Nam, Alexander Germany, Italy, Switzerland and the von Humboldt Institute (Colombia), United Kingdom, are also working At the regional level, partners include Corporación Biocomercio Sostenible under the BT P&C through the Union the Development Bank of Latin - Colombia, Corporación Fondo for Ethical BioTrade (UEBT). America (CAF), General Secretariat Biocomercio (Colombia), EcoCiencia of the Andean Community, Amazon At the international level, UNCTAD’s (Ecuador) and business associations Cooperation Treaty Organization, BioTrade partners include the CBD and such as the BioTrade Implementation PhytoTrade Africa (PTA) and Die CITES secretariats, UEBT, the United Group (BIG) in Viet Nam, among others. Deutsche Gesellschaft für Internationale
Figure 1.3 Countries implementing BioTrade
Africa: Botswana, Burkina Faso, Ghana, Madagascar, Malawi, Mozambique, Namibia, South Africa, Swaziland, United Republic of Tanzania, Zambia and Zimbabwe Asia: Indonesia, Lao People’s Democratic Republic, Myanmar and Viet Nam Latin America: Plurinational State of Bolivia, Brazil, Colombia, Ecuador, Mexico and Peru.
2 Chapter I. BioTrade history and conceptual framework
BioTrade sectors Table 1.1 BioTrade sectors prioritized by countries and partners For beneficiary countries working with BioTrade initiatives, a broad Sector Type of product variety of products and services can be sustainably derived from their rich Personal care Essential oils, natural dyes, soaps, cream biodiversity (Table 1.1). Within each and butters, cosmetics, etc. sector, efforts and resources are Pharmaceutical (phytopharma) Extracts, capsules and infusions from prioritized and channelled into areas medicinal plants, etc. where major social, environmental and economic impacts need to be Food Fruits pulps, juices, jams, biscuits and achieved. The BT P&C are used to sauces, spices, nuts, tubers, snacks, guide interventions on the ground food supplements, meat from caiman and several tools, methodologies and fish, etc. and protocols have been produced Fashion Skin and belts, bags from Caiman to support partners and programme yacare, etc. beneficiaries (e.g. SMEs, community- based associations) in implementation. Ornamental flora and fauna Heliconias, orchids, butterflies, etc. Handicrafts Jewellery, decorative objects based on BioTrade capacity and skills native species, garments, etc. development Textiles and natural fibres Furniture and decorative objects based UNCTAD and its partners have on natural fibres, bags, shoes, etc. focused on enhancing the capacities and skills of BioTrade practitioners Sustainable tourism Ecotourism, nature-based tourism, for engaging in sustainable sourcing, community-based tourism, etc. access and benefit sharing (ABS) and trade in value added products and Forestry-based carbon credit Reducing Emissions from Deforestation services. Such training may include activities. and Forest Degradation, conservation, legal and technical advice relevant sustainable management of forests and to BioTrade activities including the enhancement of forest carbon stocks regional and national implementation of (REDD+), greenhouse gas (GHG) emissions regulations, good practices, enhancing mitigation strategies for specific value harvesting and processing methods chains, etc. and documentation. A master’s degree programme and online courses have also been developed and implemented by the Catholic University in Peru and UNCTAD, among others, in addition to the development of tools, guidelines, training material and documents. Topics addressed and tools offered are shown below: • Policy frameworks: Guidelines • Social practices: Guidelines The tools and methodologies to fulfil regulations, protocols, to enhance the participation of developed under BioTrade can be management plans, ABS, etc. communities in decision-making adapted to country and region specific and value chain development, • Market access: Market studies, circumstances and realities. These implementing methodologies for guidelines to develop and implement can include additional approaches, an equitable and fair distribution marketing and promotion strategies, criteria or considerations to target of benefits across the value chain guidelines on requirements to access specific geographical locations and stakeholders. specific markets, etc. beneficiaries. • Environmental practices: • Value chain development: Guidelines to develop management plans and Methodologies to prioritize sectors resource assessments for flora and and value chains, formulate fauna species, sustainable practice implementation strategies and guidelines for ecotourism and monitoring systems, etc. community-based tourism initiatives, • Managerial skills: Guidelines protocols for the use of wild species, to develop business plans and including those listed under CITES feasibility studies, cost assessments, Appendices II and III. traceability and documentation, etc.
3 20 years of BioTrade
The next 20 years: Upscaling the private sector, civil society and BioTrade specializes BioTrade and the 2030 Agenda markets. A strong network of partners and practitioners has been established in niche markets In the past 20 years, BioTrade has “ and is being expanded continuously to and developing and expanded in terms of the number of cover evolving needs of beneficiaries, trading products partners and practitioners involved, document lessons learned and address sectors and geographical coverage. and services that relevant emerging issues. Further efforts BioTrade has been mainstreamed at are economically from BioTrade partners should continue both national and international levels, for competitive, documenting, disseminating and instance in the Decisions of the Parties and socially and measuring its impact and contribution to the CBD and CITES, discussions at to sustainable development, SDGs and environmentally the United Nations General Assembly, the Aichi Targets at all levels (Table 1.2). responsible... as well as within development banks,
Table 1.2 Lessons learned and emerging issues for upscaling BioTrade
Issue or lesson learned Further work or lessons learned
Holistic, integrated and Continue emphasizing socioeconomic sustainability, fair and equitable sharing of benefits, and respect for inclusive approaches the rights of actors involved in BioTrade activities. Further work should also enhance the participation of and which are demand-driven liaison with indigenous and local communities, and in fostering horizontal and vertical integration of value chain stakeholders and BioTrade practitioners worldwide. For demand-driven interventions it is essential to develop workplans that comply with market requirements, are competitive and economically feasible, and also fit the interests and needs of BioTrade beneficiaries.
Capacity building Continue developing BioTrade methodologies, guidelines, training and technical assistance, implementing programmes new technologies and matching the circumstances and needs of beneficiaries.
Knowledge management Establish and/or enhance systems for: systems • Documenting and sharing good practices and experiences; • Measuring BioTrade’s impact and contribution to the SDGs and Aichi Targets; and • Identifying and addressing emerging issues relevant to BioTrade. This enables practitioners to be updated, capture development opportunities and upscale their actions. Further work is needed on linking BioTrade and climate change (e.g. implementing carbon-neutral value chains), ecosystem services valuation, ocean economy, including marine ecosystems, and peacebuilding and post-conflict recovery and supporting the national implementation of the Nagoya Protocol.
Enabling policy Continuous work is needed to identify and address constraints related to gaps, lack of clarity, overlapping environment supportive of and duplicity in regulations and roles of different government agencies. Similarly, it should also consider BioTrade and its prioritized addressing non-tariff barriers (NTBs) for prioritized products and services in target markets. sectors Raise awareness and mainstream BioTrade as an engine for achieving green growth in developing countries, for valorizing their biodiversity potential, securing ABS, and enhancing their competitiveness and differentiation based on the sustainable use of native biodiversity.
Competitive and This continues to be a challenge when implementing BioTrade and requires access to funding, and economically feasible improvement of businesses practices. For example, carrying out research and development (R&D) activities, businesses and value improving processes and products, and liaising with universities and research organizations. chains
Globalization of value Globalization enables the ability to access more customers for BioTrade products and services and, in chains some cases, to reduce middle men. This can increase competition from other sourcing countries and foster stronger quality and quantity control systems, documentation and traceability systems.
Accessing markets Identifying and learning about prioritized target markets are essential when developing value chains. Positive market trends and business practices that favour environmentally and socially responsible products and services are supportive of BioTrade. However, the challenges that BioTrade practitioners need to face relate to evolving and/or stronger market requirements, for example sanitary and phytosanitary (SPS) certificates, labelling, novel food regulation (NFR) as well as the proliferation of certification schemes and consumer confusion and/or mistrust due to false claims – greenwashing. Strong documentation and traceability systems in compliance with international standards are becoming essential when accessing markets and complying with national and international regulations.
4 Chapter I. BioTrade history and conceptual framework
BioTrade: An opportunity for synergy with multilateral 1.2 environmental agreements
This article focuses on the relationship of BioTrade with the achievements and objectives of biodiversity-related MEAs and the SDGs. It also highlights the growing recognition of BioTrade in the decisions of the Conference of the Parties (COP) of the CBD and CITES, from 1996 onwards.
to implement sustainable-use practices, María Luisa del Origins of the relationship between programmes and policies at regional, Río, Biodiversity BioTrade and MEAs national and local levels, especially in Officer, Strategic Launch of BioTrade – Lyon, France, Development of pursuit of poverty alleviation” (Decision 1996 V/24 §5) (CBD, 2000). Later at COP 7 Natural Resources, I remember as it was yesterday when in Malaysia, the Addis Ababa Principles Ministry of I first heard the word “BioTrade” Environment and Guidelines for the Sustainable use (BioComercio in Spanish). It was (MINAM), Peru of Biodiversity were approved, and November 1996, at the third meeting these constitute the conceptual basis of the COP to the CBD in Buenos of BioTrade (Secretariat of the CBD, Aires, Argentina. UNCTAD launched 2004). the BioTrade Initiative there, with the aim of fostering trade and investment In 2006 in Curitiba, Brazil, the Andean in biological resources to achieve countries, through Decision VIII/26 sustainable development, in line with §9, introduced the BioTrade Initiative the three CBD objectives: conservation, into the CBD workplan on incentive sustainable use and equitable sharing measures. It concretely “invites the of benefits (CBD, 1992). United Nations Conference on Trade and Development, through its initiatives, On that occasion, the initiative including, BioTrade Initiative, to continue was simply acknowledged in CBD supporting the programme of work on COP 3 Decision III/18 to “take into incentive measures of the Convention” consideration relevant work under (CBD, 2006). way in other forums, such as the United Nations Conference on Trade At CBD COP 9 in 2008 in Germany, and Development …”.3 However, Decision IX/6 §13 related to incentive following the launch, the Plurinational measures “invites the BioTrade Initiative State of Bolivia, Ecuador and Peru of the United Nations Conference on approached UNCTAD and discussed Trade and Development to continue the sustainable use of biodiversity. They its work on trade promotion for were convinced that only through the biodiversity-based products which are sustainable use of the components produced in a sustainable manner and of biodiversity, that its effective compatible with the three objectives of conservation could be achieved. the Convention on Biological Diversity, through capacity-building, enhancing The task of setting up the BioTrade market access, promoting enabling Initiative was long, as the conceptual environments and engaging relevant framework needed validation and public and private actors” (CBD, 2008). experience needed to be developed. 1996 was the starting point, and Since the launch of the BioTrade BioTrade was introduced formally as a Initiative, progress made by the CBD decision 12 years later. Andean, Asian and African countries, in particular, has underpinned the BioTrade and CBD COP decisions conceptual framework and the During the CBD COP 5 in Kenya in principles and criteria (expressed via 2005, sustainable use of biodiversity norms, strategies, programmes, and was recognized as an effective pilot projects). In 2012, the achievement instrument to foster value in biological that consolidated these efforts was the diversity and Parties were “requested first BioTrade Congress, run in parallel to identify appropriate actions to assist with the Rio+10 summit. Recognition of other Parties, especially developing the role the BioTrade Initiative plays in countries and countries with economies promoting biodiversity is clear, indicated in transition, to increase their capacity
5 20 years of BioTrade
BioTrade’s “conceptual framework and approaches have come a long way and BioTrade is now mainstreamed in several arenas... © MINAM: Frank Pichardo by the support noted in COP 12 Elaboration of options for enhancing its ecosystem services. Without Decision XII/6, “cooperation with other synergies among biodiversity- these elements, it would simply be conventions, international organizations related conventions (UNEP, 2016) the commerce and export of natural and initiatives”. Decision XII/6 §18 “calls states two tools: national strategies resources, without an integrated upon the BioTrade Initiative of United and monitoring systems. However, view of the biodiversity cycles and Nations Conference on Trade and these are rather broad and do not processes, in particular, regarding Development to continue to strengthen enable countries to find concrete native biodiversity. Furthermore, its technical support to Governments, implementation procedures. BioTrade embraces the social aspect companies and other stakeholders to by enhancing the livelihoods of people What makes BioTrade a useful enable them to incorporate BioTrade, living in rich biodiversity areas. and valuable instrument to foster as well as sustainable harvesting synergies among these MEAs? In developing a value chain, all practices within national biodiversity BioTrade’s conceptual framework and stakeholders are involved, generating strategies and action plans, as approaches6 have come a long way regional and bilateral cooperation. appropriate, highlighting the importance and BioTrade is now mainstreamed in Capacities at critical points of the of BioTrade as an engine for sustainable several arenas. For instance, BioTrade value chain are enhanced, exchange use of biodiversity and its conservation is considered in norms (26839 Law of technology and knowledge for through the involvement of the private for the Conservation and Sustainable innovation and value addition are sector” (CBD, 2014a; Secretariat of the Use of Biodiversity in Peru, 2001), fostered, respect for traditional CBD, 2015a). and in policies, strategies and plans, knowledge (TK) and its norms is However, more remains to be such as the Peruvian Bicentennial promoted, livelihoods are enhanced, achieved, especially considering the Plan (Plan Bicentenario), which and financial resources for activities new development context of the 2030 proposes a strategic action for 2021 on the ground are mobilized. Clearly Agenda and the SDGs. The SDGs to “Promote BioTrade initiatives in this scenario there is common framework invites the integration of articulated with specialized high-value ground between BioTrade and the efforts, for example, SDG 17, “Revitalize markets” (CEPLAN, 2011). These implementation of MEAs. the global partnership for sustainable instruments provide strong support The relationship between BioTrade development”. This can only be for implementation, which integrates and the SDGs is undeniable when achieved with strong commitment additional efforts, generating broader we analyse BioTrade Principles and the in favour of global alliances and positive impacts. potential to support the implementation cooperation. For this reason, the author believes of agreements such as the United Multilateral environmental agreements that BioTrade is the most suitable Nations Framework Convention on provide for the best context for and effective way to sustainably use Climate Change (UNFCCC), UN cooperation and achievement of the biodiversity and its components. Convention to Combat Desertification SDGs, in particular, those closely Therefore, it should be considered (UNCCD), Ramsar Convention, etc., linked to the objectives of the CBD as an indispensable action to fulfil or when we consider supporting the such as the CBD itself, CITES,4 and the second objective of the CBD. integration of BioTrade in development the Convention on Wetlands (Ramsar), It is not a label or a new certification processes. This is more evident when among others. These are part of the scheme, a stakeholder cannot decide considering BioTrade’s potential to seven biodiversity-related conventions to be organic or implement BioTrade link investment and conservation, grouped under the Biodiversity Liaison – organic is already integrated within investment and benefit sharing, and Group5 (Decision VII/26 §1 and §2) BioTrade, as are strategies to build conservation and sustainable use (CBD, 2004). resilience, inclusion, an ecosystem of biodiversity. approach, innovation, technology, Countries’ efforts to integrate MEAs’ and environmental and social justice. governance recommendations and find commonality with their obligations have A substantive difference is precisely grown and, with this, concerns about what it promotes through the value how to put them into practice in an chain and adaptive management efficient and coherent manner, avoiding approaches, the conservation and duplication of effort. The study on sustainable use of biodiversity and
6 Chapter I. BioTrade history and conceptual framework
The Sustainable Development How to guarantee this conservation? • Establishing how these approaches Goals and MEAs Through the sustainable use and can be implemented within NBSAPs recovery of ecosystems? With the for each country. The 2030 Agenda for Sustainable support of local populations, involving Development and the SDGs7 were It is also essential to document and local stakeholders? For example, by adopted on 25 September 2015 monitor BioTrade experiences and working under BT P&C, the value during the United Nations Sustainable impacts in social, environmental and chains of cocoa, Brazil nut, sustainable Development Summit in New York. economic spheres, to feed into national tourism and other biodiversity They can be viewed as the path to and international frameworks (e.g. components, are being enhanced. achieve MEA synergies. For example, NBSAPs, national laws, strategies) SDG 15 (Life on land), “aims to SDG 12 relates to sustainable as lessons learned and best practices. production and consumption and is conserve and restore the use of It is indispensable to relate the findings also relevant to BioTrade. The target terrestrial ecosystems such as forests, above to the Aichi Targets and the states the urgent need to reduce the wetlands, drylands and mountains SDGs to establish common ground ecological footprint through changes by 2020. Promoting the sustainable between MEAs. The topics considered in the patterns of production and management of forests and halting relate to information and monitoring, consumption of goods and services. deforestations is also vital to mitigating education, capacity-development, It also refers to changes in agricultural the impact of climate change. Urgent governance, conservation and use patterns and the efficient management action must be taken to reduce the (rational, sustainable, etc.), among of shared natural resources – a clear loss of natural habitats and biodiversity others. These are elements that should synergy with BioTrade. which are part of our common heritage” be integrated into each stage of the (United Nations, 2015). This text value chain, fostering compliance acknowledges the main elements Concluding remarks according to each MEA. Resilience, of MEAs stated above. adaptation, rational use of wetlands, It is important to mainstream BioTrade should also be considered as guiding Further, when considering SDG into MEAs, including into National principles. Such an exercise will 15, Target 1, “By 2020, ensure Biodiversity Strategies and Action Plans renew the way we see MEAs, from the conservation, restoration and (NBSAPs). This can be achieved via a their international scope to their sustainable use of terrestrial and three-step strategy: inland freshwater ecosystems and implementation at the local level. their services, in particular forests, • Developing a clear understanding of wetlands, mountains and drylands, how BT P&C can be implemented; in line with obligations under • Assessing the implication of each international agreements,” the of the Principles and Criteria within common ground found is in BioTrade approaches (adaptive implementing BioTrade, its Principles management, ecosystem approach, and Criteria to achieve this target. value chain and livelihoods); and © CAF
7 20 years of BioTrade 1.3 BioTrade: A market driver for sustainable development BioTrade aims to promote sustainable development through trade and investment in biodiversity. Turning BioTrade into a market driver for sustainability has required defining opportunities for BioTrade products, ensuring market access and staying on top of market trends. Looking ahead, one priority is securing sufficient private sector buy in.
Rik Kutsch Introduction Defining products and services Lojenga, Executive The private sector is called upon BioTrade’s initial focus was, specifically, Director, UEBT to engage as an active partner in on harnessing the growing interest in achieving the SDGs, adopted in genetic resources in the pharmaceutical 2015 by over 190 countries. The new and biotechnology sectors, which development paradigm put forth by offered important economic the SDGs requires business models opportunities for biodiversity-rich that consider the environmental, social, developing countries. The UNCTAD economic and governance imperatives BioTrade Initiative successfully (Sustainable Development Knowledge established a portfolio of regional and Platform, 2015). Can such business country programmes in Latin America, models also present opportunities for Africa and Asia. Yet, it quickly became innovation, competitive advantage and clear that research, development commercial growth? and commercialization timelines and investment costs in these sectors Since 1996, the UNCTAD BioTrade could be significant. The development Initiative has been working to promote potential of genetic resources would sustainable development through only be realized over the long term. trade and investment in biodiversity. Interest in natural products was also That is, the BioTrade concept is seen diminishing among pharmaceutical as a market driver for sustainability, companies, in view of new ensuring trade contributes to one of the technological developments and legal most significant global challenges: the uncertainty stemming from discussions conservation and sustainable use of over the misappropriation of genetic biodiversity, based on a fairer and more resources and TK. These developments equitable sharing of benefits. affected efforts to promote BioTrade. The focus of the BioTrade concept – at least in terms of markets – thus changed to other products and services derived from biodiversity. The launch of the first national BioTrade programme in Colombia in 1998 already reflected a focus on biological resources, rather than genetic resources. Promoting the inclusion of indigenous peoples, local communities and local companies in supply chains of natural ingredients – extracts, oils and powders used by the food, pharmaceuticals and cosmetics industries – offered more short-term and tangible benefits. Examples of BioTrade ingredients include fruits obtained through wild collection or agroforestry (such as açaí berries from the Amazon), herbs, flowers and spices (such as hibiscus flowers from Africa). BioTrade also started promoting Harvesting allanblackia in Ghana © UEBT sustainable trade in plants and animals
8 Chapter I. BioTrade history and conceptual framework listed under CITES (e.g. Caiman yacare Yet for BioTrade products and services and proficiency. A well-known example leather from the Plurinational State of to reach markets, challenges must be of such a hurdle has been the novel Bolivia and alpaca wool from Peru). overcome in areas such as technical food regulation (NFR) in the European Services such as ecotourism were and financial capacities, regulatory Union (EU), which poses a challenge for included in BioTrade programmes, frameworks and market uptake. those BioTrade initiatives that bring food mainly in Latin America. ingredients to the market with no history Experiences in BioTrade show of significant consumption in the EU More recently, attention has focused that sustainability is a particularly prior to 2007. The approval processes on biodiversity as a source of valuable differentiator in the for baobab fruit pulp, which were led innovation, partly driven by the work business-to-business (B2B) sector, by PTA and supported by the UNCTAD of BioTrade partners such as the offering opportunities for SMEs in BioTrade Initiative, cost in the region of UEBT and PTA. The 2010 adoption developing countries. However, these €300 000. of the Nagoya Protocol on Access companies often need support to to Genetic Resources and the Fair meet market requirements relating to Finally, the BioTrade concept and and Equitable Sharing of Benefits quality, volumes, constant supplies products can only succeed with Arising from their Utilization to the sufficient market uptake. Private sector CBD provided an international legal interest in biodiversity and BioTrade framework for biodiversity-based Regulatory hurdles products needs to be promoted innovation and has increased interest “to market access are and awareness raised. To this end, in fair and sustainable practices for also not unusual... UNCTAD and International Finance the development of natural ingredients Corporation supported the creation (CBD, 2014b). Consequently, the of the UEBT, which actively promotes UNCTAD BioTrade Initiative and other and marketing. In 2003, UNCTAD business interest in the ethical sourcing BioTrade partners are again providing launched the BioTrade Facilitation of biodiversity in the cosmetics, food technical support and guidance on the Programme, which brings together and pharmaceutical industries. It also issue of genetic resources. Currently, various organizations in an innovative encourages private sector adoption BioTrade covers a mix of products partnership to promote the market of the BT P&C, through the Ethical derived from biodiversity, both from uptake of BioTrade initiatives. Other BioTrade Standard, to ensure that trade genetic resources and biochemical international organizations such as in biodiversity-based ingredients really compounds. the ITC and CAF also established contributes to local development and programmes to support enterprises, biodiversity conservation. Companies particularly SMEs, to overcome such that are members of UEBT adopt Reaching the market challenges. Ethical BioTrade practices within their Biodiversity is now recognized as a own operations, and encourage such Regulatory hurdles to market access pillar in innovation and production practices among hundreds of suppliers are also not unusual, especially for in a number of sectors. Moreover, and supply chains. innovative ingredients for which less sustainability values can be a powerful information is available about safety differentiator for a product or service.
Box 1.1 Ten takeaways from eight years of UEBT Biodiversity Barometer
By 2020, people around the world should be aware of the values of biodiversity. This is the ambitious goal set by the CBD as part of its Aichi Targets. Since 2009, UEBT has published its annual Biodiversity Barometer, which provides insights on trends on biodiversity awareness among consumers and on biodiversity reporting in the beauty and food industries. The UEBT Biodiversity Barometer is a recognized indicator for measuring Aichi Biodiversity Target 1. In reviewing eight years of UEBT Biodiversity Barometer research, there are surprising findings and critical lessons to be learned. Ten findings are highlighted below: 1.The understanding of biodiversity is rising significantly. 2. Biodiversity is a global concept, with high awareness in emerging markets in Latin America and Asia. 3. People want to personally contribute to biodiversity conservation, but don’t know how. 4. Consumers expect companies to respect biodiversity, but there is little confidence that they currently do. 5. Transparency is important. Consumers want to know whether sourcing practices respect people and biodiversity, and would like more information, preferably externally validated. 6. Brand reputation, authentic stories and images in brand communication convince consumers. 7. Millennials have the highest awareness of biodiversity and can identify brands that respect biodiversity. 8. Few international brands are positioned highlighting respect of people and biodiversity. 9. Corporate communication on biodiversity by beauty, food and beverage companies is on the rise, but still falls short of expectations. 10. References to ABS are rising in corporate communications.
9 20 years of BioTrade
Research for developing new products © Fotolia: Lily
The number of companies involved in long-term supplier relationships and in way for companies to be competitive, Ethical BioTrade is projected to grow good social and ecological practices. innovative and profitable. The BioTrade significantly in the near future. Indeed, BioTrade offers an excellent conceptual concept has pioneered such an for BioTrade to be a true market driver framework for such practices. approach, but still faces certain of sustainable development, a much challenges. To fully reach its potential, Thirdly, biodiversity awareness is more significant uptake of the BioTrade BioTrade needs more significant market growing among consumers and concept is still required across the uptake. companies (UEBT, 2016). The term board: government policies, business biodiversity is relatively recent: this Market trends show an opportunity strategies and markets. As will be seen, explains why business and consumers for BioTrade. Demand for biodiversity there are various trends that suggest are only now starting to develop a ingredients is increasing, as is the upcoming opportunities for BioTrade real understanding of the concept. interest in ethical sourcing practices partners to achieve such increased Yet, awareness and understanding for these ingredients. The SDGs, the take up. are expanding. In our increasingly Nagoya Protocol and other international biodiversity-aware world, it turns out instruments are changing the regulatory Market trends and opportunities consumers have high expectations and policy landscape. This means that towards companies, and are likely countries, companies and associations UEBT identifies several market trends to make purchasing decisions that have an incentive to adopt and promote that offer opportunities for BioTrade respect biodiversity (see Box 1.1 for BioTrade practices – as a contribution activities in the years to come: an overview of the key findings of the to sustainable development and as a Firstly, consumers increasingly UEBT Biodiversity Barometer). business strategy. demand that natural ingredients are Finally, an important trend is the The challenge is to get sufficient private used in products, such as natural emerging business models connecting sector buy in. The role of initiatives such sweeteners, colourants, fragrances, sustainable use of biodiversity and as UEBT in convening companies and flavours, preservatives or emulsifiers. ecosystem services. Sustainable assuring sustainable practices through Companies are responding. In the food tourism, for example, minimizes the the Ethical BioTrade Standard is crucial. sector, for example, more companies negative impact on ecosystems A priority for the next 20 years should adopt a “clean label” approach, which and incentivizes local environmental be getting companies on board, so that stands for products with no artificial stewardship. BioTrade and REDD+ BioTrade can move towards significantly ingredients and chemicals. This drives strategies are also linked. In 2013, impacting the way that markets and a trend to use natural ingredients, Natura Cosmetics, a company involved consumers approach biodiversity – particularly new and innovative natural in BioTrade, purchased carbon offsets making BioTrade a stronger market ingredients. Similar trends exist in the from the Paiter-Suruí, an indigenous driver for sustainability. cosmetics sector. people of the Amazon. Secondly, there are increasing calls for transparency about the type of ingredients used in consumer products, Conclusions the origins of these ingredients, and The drivers of sustainability are evolving, the conditions under which they are with the balanced consideration of produced. This means traceability social, environmental and economic from package to field, investment in issues now firmly established as a
10 Chapter I. BioTrade history and conceptual framework
Reflections on the drivers of economic and financial 1.4 sustainability in BioTrade initiatives
Financing for green businesses and BioTrade is a critical factor hindering the development of the sector in Latin America and worldwide. The available financial products are limited, and are not adapted to the characteristics of production cycles and BioTrade businesses. Action is needed at different levels to address this limitation: macro (by implementing public policies); meso (by strengthening value chains: R&D, market access and targeted financial products); and micro (by increasing companies’ capabilities).
Introduction Region” – the Andean BioTrade René Gómez- Project (ABP). The project focused on In recent years BioTrade has gained García Palao, governance, market access, access to importance internationally as a catalyst Head, Green finance and pilot project strengthening. for the conservation of biodiversity Business Unit; A major result was that sales of and the generation of social inclusion. Federico Vignati beneficiary companies increased Globally, there is a strong trend toward Scarpati, Principal 65 per cent on average during the markets related to BioTrade. At least 4 Executive; period – a performance superior to the per cent of world trade, equivalent to Marisela Vega average in similar industries. These US$290 billion, included transactions Zuleta, Consultant, experiences demonstrated the capacity of biodiversity goods and services, Department of of BioTrade’s sustainable principles to including BioTrade (Gómez-García Environment and promote development.9 In 2015, to et al., 2014). Even more, BioTrade Climate Change, scale up the ABP and continuing with has positioned itself as an important CAF its commitment to support innovative management model, applicable to the endeavours devoted to green economy green business characteristics of Latin transformation in Latin America, CAF America, as well as other regions. created the Green Business Unit. It is in this context that CAF’s8 It focuses on a portfolio of projects Department of Environment and linked to the ethical and sustainability Climate Change joined forces during principles proposed by BioTrade.10 2011–2015 with UNEP and the Global After five years involved in developing Environment Facility (GEF), for the economically viable biodiversity-based development of the project “Facilitation businesses, a number of the key of financing for biodiversity-based aspects and lessons learned have been businesses and support of market identified which are useful for the future development activities in the Andean development of BioTrade initiatives.
BioTrade Forum and Roundtable at PeruNatura © PROMPERU
11 20 years of BioTrade
Key aspects and lessons learned • First, improved access to financial of products derived from native for the development of BioTrade tools and services should be a major biodiversity. Consequently, awareness initiatives priority since this is one of the most raising and technical advice for critical barriers for BioTrade initiatives. financial institutions are important Experience shows that companies According to the CBD, during 2013, to enhance their capacity to identify which choose to shift to BioTrade are financial institutions only granted 3.5 and select business projects that able to respond to a rising demand that per cent of total financing to green meet verifiably sustainable practices may guarantee long-term competitive businesses. Furthermore, the existing and to understand the variety of advantage, and generate shared value credit lines of “green” financing in the productive and business cycles of on the demand and supply sides of region are usually related to energy green business and BioTrade. CAF chains. However, despite the significant efficiency issues. Financial products expertise, as a development bank, growth in BioTrade markets – business available to meet production segments has contributed to tackling this need turnover reached €4.3 billion in 2015 and, within these, BioTrade products, in several countries in Latin America. (Jaramillo, 2016a) – the initiatives are limited and the ones that exist encompass market segments which • Second, it is fundamental to generally have high barriers to access are small when compared with the strengthen value chains through (guarantees) and unfavourable financial market for biodiversity-based products. capacity building in organizational, conditions (rates, terms). All these This requires companies seeking to administrative and productive matters, conditions limit the competitive access maintain and consolidate a position so as to allow the development of to credit for BioTrade initiatives. in BioTrade to make major efforts highly productive business models The lack of financing results in to train personnel in technical and that are properly structured and low investment in innovation, thus production issues, ensure their capacity articulated, and eligible for financing. companies have limited markets to enter the market, attend to market Therefore, service providers are and uncompetitive offerings. needs, develop innovative products essential to offer advice and guidance and access differentiated financing in the initial stages of business start- (green financing).11 All this is part of ups – usually lacking financing – to the challenge that companies which BioTrade experience develop strategic aspects of the understand the benefits of BioTrade “in Latin America is organization such as the acquisition are willing to overcome as they commit quite innovative... and implementation of certifications and seek in BioTrade a new strategic and permits, brand development choice, based on a more ethical, and research for the development inclusive and sustainable business Financing for BioTrade initiatives of new products/processes. The model. is a challenge that needs to be strengthening of value chains can overcome by working with both be effectively implemented through Such efforts clearly need support, BioTrade initiatives and the financial strategic alliances and knowledge given that most BioTrade companies sector. Companies often lack proper exchange between enterprises and in the region are micro-SMEs with organizational and accounting similar organizations with successful limited capital and human resources, administration which limits their experiences and lessons learned. to make key investments in applied debt management. Although financial research and product development. • Third, taking into consideration that institutions are interested in the In this context, there are three markets are increasingly demanding development of green financing credit important aspects to consider to and competitive, investment in lines, the sector is generally unfamiliar promote the economic sustainability innovation, and implementation of with the dynamics and potential and competitiveness of enterprises. quality and sustainable systems
Quality control systems for BioTrade products © CAF Processing of physalis © Villa Andina
12 Chapter I. BioTrade history and conceptual framework
Ecotourism – capitalizing on the natural beauty of the Amazon’s ecosystems © Walter H. Wurst
which support practices and increase commercially competitive enterprises At a higher level, policymakers in levels of supply, are fundamental for under value chain models, generating interested countries should develop the production of differentiated value new local development dynamics. an enabling policy and regulatory added products and services. This will environment conducive for BioTrade With a strong trend of 19 per cent require the establishment of public- businesses, with clear regulations that annual growth until 2020, biodiversity private collaboration for research, consider the business circumstances goods and services with BioTrade innovation and the implementation and which foster innovation through potential will have an approximately 33 of technologies and differentiation market and tax incentives. Incorporating per cent share of world trade (Gómez- schemes (e.g. certifications, biodiversity into public policies and García et al., 2014). However, this appellation of origin, etc.), and the the overall economic development important growth opportunity requires participation of BioTrade initiatives agenda is still an emerging issue establishing support and cooperation in specialized commercial platforms, around the world. platforms that cover key aspects for trade fairs, and technological and strengthening value chains. Building BioTrade experience in Latin America commercial missions. These activities business skills and facilitating access is quite innovative, as the region holds involve specialized knowledge and to market for the proper development the highest biodiversity rate per capita high costs; thus, the role of the public of BioTrade companies is essential. in the world. It is by experimenting and sector in the early stages is important. However, as noted above, leveraging learning that BioTrade will increase financial resources to drive BioTrade its practical know-how, the number Future opportunities initiatives needs to be a priority. This of businesses endorsing BioTrade BioTrade is an innovative ethical and can be accomplished through the and build strategic alliances. CAF, biodiversity-friendly based business creation of financial instruments, as a development bank, believes in model for overcoming some of the awareness-raising about opportunities the economic feasibility of BioTrade most relevant income distribution and in the sector and the dissemination of and confirms its engagement to biodiversity conservation challenges information regarding the availability of upscale its implementation jointly with in Latin America and elsewhere. It financial assistance to initiatives. Equally public and private sectors and civil presents itself as a coherent model important is the creation of a strong society. This collaborative approach for responding to critical current network of knowledge exchange in the will create specific responses that global priorities: loss of biodiversity sector. Similarly, emphasis should be make sustainable development and as well as climate change mitigation. placed on establishing and maintaining integration in the region viable by Equally, its contribution stands in the a BioTrade community of practice with promoting initiatives such as BioTrade, transformation of the production base expertise at different levels (macro, as well as enhancing financial solutions and the distribution of wealth, by meso and micro) which incorporates for green businesses. generating social benefits. It is reached relevant lessons learned, and explores through the inclusion and articulation bolder and more systemic interventions of community initiatives with more that may drive countries or even regions into the sustainable, green economy.
13 20 years of BioTrade
BioTrade and people
BioTrade has delivered positive impacts for its beneficiaries in the last two decades. This section provides examples of initiatives being promoted by BioTrade 2 practitioners in Asia, Africa and Latin America, in the personal care, phytopharma and food sectors. Beneficiaries are wide ranging, from indigenous communities, women’s associations, product-based associations to communities who are sustainably transforming their biodiversity into products and services. The trade in BioTrade products and services increases these communities’ incomes and enhances their capacity and ability to compete with differentiated value added products and services that are traded in national and international markets.
BioTrade and people: Case studies and their contribution to the Aichi Targets and SDGs
Sustainable Development Case study Aichi Targets Targets
2.1. BioTrade and livelihoods – a possible synergy
2.2. Ecoflora Cares: Jagua value chain 1, 2, 4, 7, 16, 18, 19 1, 2, 8, 9, 10, 12, 15 (Colombia) 2.3. Achuar and Shuar communities 1, 2, 3, 4, 7, 16, 18, 19 1, 2, 8, 9, 10, 12, 15 and the Chankuap Foundation: Resources for the future (Ecuador) 2.4. Traditional knowledge as a 1, 2, 4, 7, 16, 18, 19 1, 2, 8, 9, 10, 12, 15 business model: Takiwasi and Ampik Sacha (Peru) 2.5. Sandalwood: Ethical sourcing 2, 3, 4, 7, 12, 13, 16, 19 1, 2, 8, 9, 10, 12, 15 of a unique and valued fragrance (Sri Lanka) 2.6. Up in the mountains: Traditional 2, 3, 4, 7, 13, 16, 18, 19 1, 2, 8, 9, 10, 12, 15 herbal remedy improves ethnic minority communities (Viet Nam) © IM EDITORES
14 Chapter II. BioTrade and people 2.1 BioTrade and livelihoods – a possible synergy
BioTrade aims to enhance the livelihoods of people, particularly those living in rich biodiversity areas and those dependent on biodiversity. To do so, BioTrade practitioners have developed a variety of services to enhance the social impact of interventions, including the development of projects, guidelines and tools, among others, and a number of lessons learned can be identified.
Introduction value addition and trading activities to Lorena Jaramillo, provide higher incomes and prices for Economic Affairs The Secretariat of the CBD states Officer, UNCTAD that around 1.6 billion people depend their products and services. As of 2015, on forest and non-timber forest (NTF) almost 5 million grassroots stakeholders products for their livelihoods. Many have been integrated into over 3600 households in Asia, derived as much global and local value chains in a as 50–80 per cent of annual household variety of sectors and regions (García income from NTF products, namely Rodríguez et al., 2015; Lojenga and from biodiversity resources (Secretariat Oliva, 2016; Rossow, 2015). of CBD, 2014). This is also seen in Success stories and lessons learned Latin America, where 75 per cent are enabling the BioTrade concept, of households depend directly on methodologies and technical biodiversity to meet their basic needs assistance to adapt to the real and for food and water, and to preserve their dynamic circumstances and needs culture (García Rodríguez et al., 2015). of beneficiaries. These can be grouped into the following: • Inclusive and participatory BioTrade and people: Case studies and their contribution to the Aichi Targets and SDGs BioTrade’s philosophy community-based approaches for “centres on providing ensuring that needs, opportunities, livelihoods for poor, culture and circumstances of particularly rural, grassroots actors are mainstreamed into all activities. Fair and equitable communities and people benefit sharing, transparent living in and depending discussions and decision-making on biodiversity... processes along the chain are also mainstreamed. • Market access and value chain approaches to develop demand Connecting BioTrade and driven interventions, enhance the livelihoods of grassroots actors chain efficiency and reduce its BioTrade’s philosophy centres length (steps) by linking producers on providing livelihoods for poor, to markets. Actions also strengthen particularly rural, communities and grassroots actors’ abilities to people living in and depending on manage their businesses and biodiversity. Through its principles, supply chains, and provide them BioTrade promotes the equitable with tools and financing to enhance sharing of benefits, respect for the the competitiveness of their rights of actors involved, and develops organizations and products. inclusive and transparent value chains Importantly, the grassroots actors’ and sectors. Partners are engaged capacities are assessed to establish in establishing or strengthening their role and the stage at which they cooperatives, producer associations, should enter into the value chain, and community-based and/or micro-SMEs, consider a gradual approach, linking and strengthening their managerial them with local, then national and and supply management capacity. It then international markets. is complemented by enhancing local
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• Reintegration and post-conflict recovery of ex-combatants, affected communities and displaced people into civilian life through BioTrade activities. These income- generating activities sustainably use and transform unique biodiversity into value added products and services that are traded in national and international markets. To date, reintegration and post- recovery activities have been mainly implemented in Colombia and Indonesia (Aceh Selatan). • Risk diversification and enhancing resilience by diversifying the use of a limited number of species, increasing the number of value added products being developed and traded and markets being served. Grassroots actors should not depend on a small number of traded products, services and markets, to lessen their vulnerability to supply/demand shocks, climate change and natural and conflict-related disasters.
Key message BioTrade is a livelihood option for many people across the globe. It provides for developing tools and technical assistance to fulfil the changing needs of grassroots stakeholders to commercialize their value added products in national and international markets. Integrated and participatory approaches, ABS, carbon neutral production process, circular economy, environmental pressures and strong competition, are some of the issues that practitioners need to tackle in order to provide real and long-term livelihood options to grassroots actors. Concretely, practitioners should consider also the opportunities provided by the 2030 Agenda and the SDGs, as well as the Biodiversity Strategic Plan 2011-2020 and its Aichi Targets for mainstreaming poverty alleviation, development and conservation of biodiversity. Finally, displacement, immigration, and the existence of diaspora communities, are also areas where BioTrade can contribute, as shown with reintegration and post-recovery activities, but also as an interesting market segment for products and services. © MINAM
16 Chapter II. BioTrade and people 2.2 Ecoflora Cares: Jagua value chain (Colombia) Ecoflora Cares develops high-end natural colour solutions derived from Colombian biodiversity for food and cosmetic applications. Through the development of BioTrade practices in collaboration with rural, indigenous and afro-descendent communities, the company enhances livelihoods through sustainable use of the rainforest, the conservation of valuable ecosystems and a fair and equitable distribution of benefits.
Implementation strategy As such, it is one of the first companies Juan Fernando to sign a formal commercial AGR Through extensive work over the last Botero, President, contract with the Ministry of eight years, Ecoflora Cares, with the Ecoflora Cares S.A.S. Environment and Sustainable support of local communities under Development representing the the wild sourcing programme, has Colombian Government. The contract, identified, georeferenced and protected signed on 16 December 2014, lasts close to 7000 jagua trees distributed for 20 years. The monetary benefits over 55 000 hectares. In 2015, 54 comprise royalties to be paid families from the Chocó and Uraba to the Colombian Government regions sustainably harvested 150 on turnover produced by the blue trees. By 2018, the company aims colourant. The ministry, through its to increase sustainably harvested local offices, exercises all monitoring trees to 12 500 by diversifying supply and auditing regarding fulfilling contract chains and inviting 400 families from Introduction obligations. Ecoflora Cares’ non- new communities in other regions to Ecoflora Cares developed a unique monetary commitments are: participate in the sourcing programme. blue natural colour additive derived It also aims to increase the harvested • To carry out annual reporting and from the jagua fruit (Genipa americana), trees per hectare, conserve naturally awareness raising of the programme’s commonly found in tropical forests. regenerated trees, and expand the progress with regional environmental A pilot wild sourcing programme species population in depleted areas authorities such as local government considering the Ethical BioTrade near villages to facilitate harvesting authorities (Corporación para el Standard was implemented with and logistics activities. The economic Desarrollo Sostenible del Urabá and rural, indigenous and afro-descendent impact is expected to generate 353 Corporación Autónoma Regional para communities living in extreme poverty direct jobs for vulnerable youngsters el desarrollo social del Chocó) and in the Colombian Chocó rainforests. exposed to criminal groups or illegal research institutions (Instituto This programme secured the coca growers. de Investigaciones Ambientales conservation of jagua trees and del Pacífico). their surrounding ecosystems, Ecoflora Cares is a trading member of while potentially improving by more the UEBT and a Colombian pioneer in • To promote activities to strengthen than 50 per cent family incomes in fulfilling international and local access to institutional development in the sourcing communities. genetic resources (AGR) regulations. communities and jagua supply organizations.
Jagua fruit and natural colourants © Ecoflora Cares
17 20 years of BioTrade
Activities with the local communities under the wild sourcing programme of Ecoflora Cares © Ecoflora Cares
Upscaling the jagua value chain to subsist by carrying out basic daily the supply and logistics operations enhance local livelihoods activities such as fishing, small-scale in which the knowledge of the farming and exchange of goods forest becomes these communities’ There are several challenges and with neighbouring communities. most prized asset – the only one opportunities in enhancing the Training programmes on sustainable that cannot be either copied or jagua value chain via BioTrade to sourcing practices, quality control imitated and does not depreciate improve livelihoods of rural and ethnic and business fundamentals should in time. Protecting and preserving communities in the Chocó rainforest: be initiated to enable BioTrade that knowledge should be a key 1. The Nagoya Protocol can provide operations with industrial or urban point of discussion by institutions opportunities for the sector. actors. and organizations shaping BioTrade It encourages companies and standards and regulations. 4. Strengthen control and forest supplying communities producing protection mechanisms in relation 6. Guarantee market access for biodiversity derived products to work to illegal and depleting activities. the jagua colourant. Market together harmoniously to foster an Mining and illegal activities have access is essential for the success equitable, sustainable relationship. created false and illusive economies of any business, particularly at Its principles encourage building in terms of salaries and expected the pre-commercial stage. To and strengthening communication incomes in these communities. trade the colourant in national channels and processes in order to This exerts very high pressure on and international markets, it is understand each other’s realities, alternative livelihoods that may essential to obtain permits issued objectives and challenges. However, compete with them in relation to by respective regulatory authorities. national legislation needs to be land, labour or forestry resources. The Instituto Nacional de Vigilancia set up in order to support such Therefore, organizations in rich de Medicamentos y Alimentos partnerships. biodiversity countries with potential approved the sanitary permit of the 2. Raising awareness in local for engaging in BioTrade should jagua colourant for the Colombian communities and indigenous support the creation and adoption market. However, this is not enough peoples regarding the intrinsic of more effective forest protection as the international market is the value of the natural resources mechanisms. only one that can generate enough available in their territories. Value demand to develop the jagua 5. Strengthen the perception of the is a concept that must transcend supply chains and achieve the intrinsic value of natural resources a simple conservationist approach company’s goals for 2018. In this and traditional knowledge in and be framed as an enabler of regard Ecoflora Cares has needed BioTrade projects. Sometimes better and more sustainable living to employ its scientific, technical, “value creation” or “added value” are conditions. In order to foster this, regulatory and business knowledge perceived exclusively as the process the government should encourage and capabilities to obtain the permits of transforming a material into entrepreneurship related to BioTrade for the target markets (e.g. from the something else; from raw material in initiatives within communities. Food and Drug Administration (FDA) nature into a cosmetic application. BioTrade should be a means of in the United States of America, the That view, although not incorrect, has protecting ecosystems and a European Food Safety Authority several limitations, especially when powerful value builder for the people (EFSA) in the EU and the Joint Food it becomes the sole expectation inhabiting them. and Agriculture Organization (FAO)/ or desire of potential supplying World Health Organization (WHO) 3. Capacity building on sustainable communities to transform nature- Expert Committee on Food Additives sourcing practices, quality control sourced raw materials into semi- (JECFA) for inclusion in Codex and business fundamentals. finished or finished products. This Alimentarius). Most of the communities dwelling objective is perfectly plausible and in these dense biodiverse hotspots justifiable, but the BioTrade concept do not have trading activities may minimize the complexity behind with other regions, instead they
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Achuar and Shuar communities and the Chankuap 2.3 Foundation: Resources for the future (Ecuador)
The Chankuap Foundation: Resources for the future promotes sustainable development and conservation of the forests located in Morona Santiago Province (Ecuador) by the local Achuar and Shuar communities. This is achieved by developing sustainable value chains under BT P&C, thus guaranteeing the availability of resources for future generations.
Introduction are non-legal organizations providing Adriana Sosa V, training and technical assistance for Secretary-General, The Taisha District of Morona Santiago planning the production of species that Chankuap Province is home to the indigenous are transported to Chankuap’s modern Foundation: Achuar and Shuar communities. collection centre and transformation Resources for the More than 80 per cent of the region is facilities in Macas, the provincial capital. future primary forest – some 508 850 hectares From the beginning, the foundation’s – and extremely rich in biodiversity. strategy focused on native species The district also includes part of the that the communities know and use in Kutukú Cordillera and Trans-Kutukú their gardens, such as: charak peanut areas, which are a biodiversity hotspot (Arachis hypogaea), achiote (Bixa (Gobierno Autónomo Descentralizado orellana), chili (Capsicum spp.), ginger Municipal del Cantón Taisha, 2014). (Zingiber officinale), turmeric (Curcuma In this area, cattle and agricultural longa), among others, which have production is nascent but becoming market potential at local, national and/ an economic alternative for families. or international levels. For example, Cutting trees and selling illegal wood it re-established native species such is threatening the rainforest; a situation as the charak peanut for which there which could be exacerbated by the is an unsatisfied international market development of the Macas-Macuma- demand. Also, other wild collected Taisha Highway. If insufficient incentives are provided to minimize this threat, Shuar woman harvesting the native local human development may become peanut charak (Arachis hypogaea) More than 80 per more complex. For communities where cent of the region is the highway does not reach, air travel is “ the only means of communication. primary forest – some 508 850 hectares – The Chankuap Foundation was set and extremely rich in up in 1996 in the Ecuadorian Amazon at the request of local communities biodiversity... wanting support to help promote sustainable collection and production activities to generate family income. It species and derived products are focuses on native species used by the being encouraged, such as dragon’s Achuar and Shuar communities. The blood (Croton lechleri), ishpink (Ocotea foundation works throughout the value quixos), guayusa (Ilex guayusa) and chain of different products in order ungurahua (Oenocarpus bataua). to guarantee market access, and to Management plans were developed comply with requirements related to for each of the wild species to volume, quality and continuity, and to guarantee their future existence. For be a real response to one of the major instance, ungurahua, used in the challenges: commercialization. personal care sector, is in high demand and its management plan includes Enhancing local livelihoods the implementation of prevention, through value addition and trade protection, rehabilitation, mitigation and of non-timber forest products rationalization methods for its use. To organize production in the area, High value added products have the foundation fostered the creation been developed by the Chankuap
© Fundación Chankuap of solidarity working groups. These Foundation. These include a cosmetic
19 20 years of BioTrade
Chankuap Foundation’s cosmetic product range Ikiam Amazon Soul and production process © Fundación Chankuap
product range named Ikiam Amazon by Chankuap, their products fulfil An interesting case is the ungurahua Soul. These products were developed market requirements related to quantity, value chain, which was also supported to value native species and derived quality, continuity of supply and volume. by the Ecuadorian BioTrade Programme products such as essential and fatty It is important to mention that these and fulfils 85 per cent of the BT P&C. oils from the ungurahua palm for use products are not only sold to Chankuap Specifically, regarding socioeconomic in liquid soaps, creams, massage oils but also to other local buyers. criteria, the value chain fulfils all the and shampoos. Chankuap Foundation criteria and indicators in Principle 3: Chankuap also generates other social products fulfil production norms (e.g. Fair and equitable sharing of benefits benefits for the communities living in good manufacturing practices – GMPs) derived from the use of biodiversity; difficult economic and social conditions. and voluntary requirements (organic Principle 5: Compliance with national In the city of Macas, the Chankuap and fair trade certification) and the and international regulations; and Foundation manages a school foundation is a member of the World Principle 7: Clarity about land tenure programme for children (7–14 years) Fair Trade Organization. and access to natural resources and who have dropped out or are struggling knowledge (Buitrón, 2012). This is For 20 years, Chankuap has enhanced academically, and provides them due to the close relationship between the living conditions of approximately with two meals a day. Finally, it also Chankuap and all value chain actors, 650 indigenous families who are directly raises awareness in the communities which is built on knowledge, trust, involved in BioTrade value chains, with on caring for the environment and continuous dialogue and mutual benefit monetary and non-monetary benefits. among consumers on responsible (Buitrón, 2012). The development of the charak peanut, consumption. cocoa, ginger and organic turmeric and ungurahua value chains have had significant social, economic and environmental impacts. The turmeric Figure 2.1 Chankuap Foundation sales 2004–2015 (US$) and ginger were already available in family gardens and the forest, and used as medicine. The cocoa supported is the native variety named fino y de aroma. Currently, these are the most sold products and are important components in the total sales of the foundation (Figure 2.1). The selling of these products has generated an average additional annual family income of US$330 at producer level. As a result of the technical assistance and capacity-building activities provided to the communities Source: Fundación Chankuap, 2016.
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This is a different “programme because people learn, sow and sell their products. I feel satisfied with the work done... Luis Shimpiukat, local technician, Chankuap Foundation.
Valuing culture – key to developing livelihoods in the Ecuadorian Amazon region It is possible to develop NTF value chains targeting markets that value sustainable production processes and products. This can directly enhance the living conditions of small producers, particularly those located in marginal areas such as the communities assisted by Chankuap. In developing BioTrade, it is essential to respect and value the culture of the communities and how they use their resources and their environment. This is fundamental – their view of their environment, the acknowledgement of its origin and the distribution of the benefits that can be generated from its use. Clear policies should be formulated to enhance research, use of biodiversity and ABS. And these should be disseminated to all actors involved, in order to promote and strengthen BioTrade. © Fundación Chankuap
21 20 years of BioTrade
Traditional knowledge as a business model: 2.4 Takiwasi and Ampik Sacha (Peru)12
The Laboratory for Natural Products (Takiwasi) and an indigenous producers’ organization (Ampik Sacha) implement a business model based on TK associated with medicinal plants in the Peruvian region of San Martín, which benefits both people and nature. This benefit sharing scheme improves the indigenous population’s living conditions, recovers old traditions and promotes the sustainable use of the forest resources.
Introduction on local medicinal plants and Lena Katzmarski, Amazonian TK. The surrounding It is estimated that Peru has more Principal Advisor Kichwa communities provide the than 1000 Amazon plant species PerúBioInnova (GIZ raw material for the medicines and with commercial potential (FAO, Peru). Supported by cosmetics produced in its small plant Flavia Noejovich 1994). Indigenous and local , in Tarapoto, San Martín. These plants, Independent communities (ILCs) are the guardians such as cat’s claw (Uncaria tomentosa) Consultant; Manuel of the knowledge associated with this and dragon’s blood (Croton lechleri), Rojas, Technical biodiversity. They have used these are “accompanied” with an ancestral Advisor ProAmbiente; plants to treat illnesses and fight knowledge about their properties and Luis Rosa-Perez, diseases, and maintain their health Technical Advisor uses. This knowledge resides in the over centuries. ProAmbiente, GIZ public domain and, as such, Peruvian Peru; Fernando Today, the pharmaceutical and legislation neither obliges users to Mendive, Plant cosmetics industries develop popular obtain PIC from nor share benefits with Manager, Coordinator products based on ancient practices the communities. However, Takiwasi of Takiwasi Scientific and knowledge of plants’ properties. recognized and valued the intellectual Committee and It can be assumed that many species contribution of the Kichwa communities Director of Marketing, Takiwasi Laboratory with curative properties would have through a monetary and non-monetary never been identified for commercial redistribution scheme. use without this immense TK base. With support from the project Within these industries, it is considered PerúBiodiverso (co-financed by vital that TK is valued appropriately as SECO and the German Development stipulated in the Nagoya Protocol. The Cooperation, implemented by GIZ), latter regulates that access to genetic Takiwasi and FEKIHD developed a resources be subject to prior informed business model based on BT P&C. consent (PIC) of the ILCs involved, The communities provide the raw ensuring they obtain fair and equitable material, but also actively participate in benefits arising from their use. the production and commercialization In this case study, TK on the use of of value added products. Therefore, medicinal plants is shared very close ancestral knowledge is re-valued to home. In the Peruvian Amazon and the communities’ capacities are region of San Martín, the indigenous strengthened. Federación Kichwa Huallaga Dorado Takiwasi also supports the communities (FEKIHD) and the Laboratory for Natural involved in so-called knowledge rescue Products (Takiwasi) developed a local sessions with the yachakkuna (wise benefit-sharing scheme. This scheme elders from the community) to identify contributes to conserving regional remedies for illnesses and pains. Ampik biodiversity, recovering ancestral Sacha, an association of medicinal plant knowledge and improving the living producers supported by FEKIHD and standards of almost 1000 indigenous Takiwasi, develops and commercializes (Kichwa) families in the region. products based on this knowledge. Takiwasi provides technical assistance A BioTrade business model that to Ampik Sacha. To recover almost lost benefits people and nature knowledge, FEKIHD maintains various demonstration plots and catalogues Takiwasi was established in 2007 from recovered knowledge in a local a local NGO that offers alternative register. To conserve the biodiversity treatments for drug addiction based
22 Chapter II. BioTrade and people base, Takiwasi offers the communities has resulted in a success story, Peru is forest management plans for the use capacity building programmes on good still confronted with various challenges. of NTF products and the re-valorization agricultural practices and forest and How can existing national rules (such of NTF species. International private plant nurseries management. as Law 27811 on the protection of actors, such as the UEBT and the collective indigenous knowledge related FairWild Foundation, aim to incorporate As a result of applying this business to biological resources) for sharing business aspects related to the model, three products are already associated knowledge with third parties harvesting of wild plant species. At the commercialized on the market: be put into practice and made more same time, scientists and policymakers • At local level, an ointment based on adapted to reality? How can TK be best are proposing new procedures and an ancestral recipe commercialized protected? How can the expectations policies to safeguard culturally and by the communities under their own of the communities be managed, and scientifically important plants. brand AMPIK®; and interest and trust in this model be In conclusion, this local model reflects maintained? These questions need • At national/international level, Takiwasi the BT P&C and illustrates their to be addressed within a solid legal Laboratory markets two herbal implementation on the ground. Yet, framework. infusions based on aromatic medicinal national regulations on benefit sharing plants under the brand SUMAK®. Equally important are considerations and TK are still not sufficiently clear The laboratory pays a royalty to the related to sustainability and indigenous (nor fully implemented) to provide communities on sales. culture. As medicinal plants receive a solid framework for these kinds increased scientific and commercial The key ingredients of this local benefit- of benefit-sharing agreements. The attention, there is increasing pressure sharing scheme are mutual trust, current national framework needs to be on the medicinal plants’ wild plant respect and equal relationship, and an further developed and substantiated populations. Commercial exploitation honest intercultural dialogue. These in the spirit of the Nagoya Protocol, may lead to overharvesting, posing aspects have shaped a shared vision in coordination with international a serious extinction risk. At the of how to protect and value ancestral organizations such as UNCTAD. The same time, communities need to knowledge and to generate additional described model provides the basis for balance commercialization and auto- income for the indigenous communities. sustainable livelihoods for marginalized consumption in order to maintain their The result is an attractive business groups, and a framework for a more traditional indigenous health-care model for all actors involved. sustainable use of the natural resources regimes. Benefit-sharing schemes which could be used as inputs for this should consider these aspects in order new framework. Considerations on upscaling to conserve the natural resource base, benefit-sharing models and preserve indigenous medicinal In Peru, there is little awareness practices. about the legal framework for genetic Peruvian public institutions at national resources and associated TK, especially and regional levels are working on in rural regions, where most ancestral regulating the wild harvesting of knowledge is found. Although the medicinal plants, for example by present model of local benefit-sharing developing guidelines to prepare
Women from Ampik Sacha and Takiwasi products SUMAK® © Takiwasi
© Takiwasi
Takiwasi recognized “and valued the intellectual contribution of the Kichwa communities...
23 20 years of BioTrade
Sandalwood: Ethical sourcing of a unique and valued 2.5 fragrance (Sri Lanka)
Sandalwood trees, which provide a unique and valued fragrance for perfumes and cosmetics, are under threat in many natural habitats. For several years, a project undertaken by Weleda in the highlands of Sri Lanka has been contributing to the protection of sandalwood trees, as well as to the livelihoods of local communities involved in their planting and harvesting.
Introduction María Julia Oliva, I hope that others will Senior Coordinator Sandalwood has been used as a follow our lead and for Policy and fragrance for thousands of years. “ Technical Support, Due to its rich, woody and lingering that the project will UEBT; Annette fragrance, sandalwood remains an inspire them to adopt a Piperidis, Manager important ingredient in perfumes and sustainable approach Sustainable cosmetics products. Yet interest in to producing this Sourcing, the essential oil, extracted from the Weleda AG precious oil... heartwood, has resulted in over- harvesting of the slow-growing sandalwood trees. This is particularly Setting up ethical sourcing of true for Indian sandalwood (Santalum sandalwood in Sri Lanka album). This tree, native to the Indian subcontinent but now more widely In 2009, Weleda, a Swiss-based grown, is considered “vulnerable” in the company producing natural and organic International Union for Conservation of beauty products and anthroposophic Nature (IUCN) Red List of Threatened medicines, and a UEBT member, Species. Actions to counter illegal launched a project for the organic and harvesting, while also promoting local sustainable cultivation of sandalwood livelihoods, include the sustainable in Sri Lanka. Sandalwood is used as planting and harvesting of sandalwood. an essential oil and fragrance for a The Weleda project on sandalwood, range of Weleda products, including now entering its seventh year, is an its Pomegranate skin care line. For example of how Ethical BioTrade can Weleda, it is fundamental that the advance such objectives. sandalwood oil used not only comes
Indian sandalwood (Santalum album) © J.M.Garg © Weleda © Weleda
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are planted every year, to not only including on identifying the best parent conserve but increase the number trees and finding the most suitable of trees. cultivation environments. In line with the Ethical BioTrade There are also challenges in the Standard – based on BT P&C – the processing of sandalwood oil. The Weleda sandalwood project also has distillation process can be complex. a strong social component. Weleda Weleda’s local partner has a distillery signed an agreement committing to only 130 kilometres away, but it the project and to sourcing exclusively takes over six hours by car. Around from this company for a number 100 kilograms of wood must be © Weleda of years. It has also supported the transported to yield one litre of Sandalwood nursery in Sri Lanka creation of a plant nursery and a essential oil. Security measures are training and education centre for the required for both the plantation and collectors. This centre focuses not the distillery. There is a significant only on sandalwood, but also on the problem with poachers, who target from organic and sustainable sources, cultivation of vegetables, tea and wild and cultivated sandalwood trees. but also contributes to increasing the cinnamon trees. This is to ensure that In this sense, local partners highlight number of sandalwood trees in Sri a variety of crops is cultivated – key to that the project came “at just the Lanka and to the livelihoods of local local food security and to diversifying right time”. It is clear that if efforts to communities. local incomes. For example, the local conserve and propagate sandalwood company now independently harvests In this context, Weleda formed a are not taken, there is a risk that these and commercializes other crops, with partnership with a local family-owned beautiful and fragrant trees will be lost an organic certification. company. Together, they found an for ever from the hills of Sri Lanka. At old, abandoned tea plantation in the the same time, Sri Lanka has recently highlands of Sri Lanka. There, next to Strengthening the sandalwood emerged from a civil war and there is 100-year-old tea bushes, grew almost supply chain great need for investment in additional 1000 sandalwood trees, including and improved livelihoods. As noted by There are many challenges ahead. young saplings. The trees had spread the Sri Lankan project partner, “I hope Growing sandalwood remains naturally thanks to birds carrying seeds that others will follow our lead and that difficult. It takes many years for the and had thrived on the steep terrain the project will inspire them to adopt tiny sandalwood seedlings in the protected by the wide root systems of a sustainable approach to producing plant nursery to be large enough the tea bushes. With the support of this precious oil” (Leuenberger, 2013). Weleda, the company invested in the for harvesting. More than half the land and techniques for organic and seedlings may not survive the first sustainable harvesting of sandalwood. months. Nevertheless, the Weleda For example, only trees older than 15 project is yielding valuable lessons. years are used for oil production and Such knowledge is also contributing between 8000 and 10 000 new trees to broader research in Sri Lanka, © Krish Dulai
25 20 years of BioTrade
Up in the mountains: Traditional herbal remedy improves 2.6 ethnic minority communities (Viet Nam)
As one of the top pharmaceutical companies in Viet Nam, Traphaco demands a large supply of natural herbs for its production of herbal medicine. Applying the BioTrade framework has helped it develop a sustainable supply chain and build trust with local authorities and communities, as well as enhance its reputation.
Introduction started to boom two decades ago. Linh Nguyen, Back in the 1990s, Traphaco launched Dzao is an ethnic minority group in Communication several products, using well-known northwest Viet Nam. Even though Officer, BIG herbs, for Vietnamese consumers. their origin is uncertain, they are one These products experienced of the few ethnic groups that possess a skyrocketing sales. They placed the plethora of TK, especially on medicine. Traphaco brand in the consumers’ Che-day (Ampelopsis cantoniensis), mind, and the company gradually a native plant of the region, has been progressed to become one of the traditionally used by Dzao people to top pharmaceutical companies in treat digestion-related diseases. the country. The method of pre-processing and fermenting che-day into tea or medicine Traphaco studied che-day together is a secret that has been kept within with scientists from the National Board the community for generations. of Science. By 2003, the company had successfully formulated che- day into soft capsules with high Developing a value chain in the concentration generating higher che-day herb effectiveness compared with other Meanwhile, 370 kilometres away forms. Ampelop, the name of the in Hanoi, R&D departments of capsule, was considered a product with pharmaceutical companies work day many benefits for gastric and intestinal and night to find ways of using natural inflammation common in Viet Nam herbs and help city dwellers suffering (Pham, 2004). However, the sustainable from pollution, hectic lifestyles and supply for che-day needed to be constant stress to maintain their well- solved before Traphaco could upscale being. Traphaco took up this trend. In Ampelop production. As the Dzao fact, the company started researching people, main collectors of che-day, and manufacturing medicines using were far away in Lao Cai province, the natural herbs when the economy company decided to begin by buying from traders or middlemen.
Che-day © BIG Figure 2.2 Rising demand for che-day
Procurement of Ampelopsis (in tons) 100 100
80 65 60
40 36
20 3 0 2002 2010 2011 2012
Source: Ta, 2013.
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Traphaco training farmers © BIG
After launching, Ampelop was well on wild collection, and to harvest it which is the average monthly income received by consumers with annual in a way that allowed the plant to in the region. This enabled them to sales of 4–5 billion VND (Vietnamese regenerate for the next harvest season. cover expenses for food, health and dong) (US$180 000–230 000) and Additionally, Traphaco, in collaboration their children’s education. Additionally, became one of Traphaco’s bestsellers. with the BioTrade project, developed in order to protect the TK of their Again, this challenged the company a set of standard procedures following community, the contract established since che-day was wild collected only the good agriculture and collection that the pre-processing and fermenting three months a year and if people practices (GACP) guidelines of the step would be implemented by the collected large quantities, the plant WHO. In this way, the company and the Dzao community in Muong Hum could be depleted. That brings us to cooperative could ensure the quantity themselves; Traphaco would only the story of how Traphaco became and the quality of che-day, without provide the equipment. a beneficiary of the Swiss-funded depleting resources and the ecosystem. The value chain of che-day in Lao Cai BioTrade project in 2012. province set an example for Traphaco Traphaco visited Muong Hum, a With the opportunities to expand to other regions with other commune in Lao Cai province with 170 ingredients. The company now has Dzao households, to consult with the “also come some four value chains in the country. With local authorities and the community, challenges... the opportunities also come some and identify and select 60 households challenges. Since the regulation system to establish a cooperative group. These in Viet Nam is complex, which might households had fewer livelihood options Sure enough, the Dzao community in discourage natural herbal enterprises compared with the rest inhabitants Muong Hum benefited. By applying interested to switch to sustainable of the commune. Later, Traphaco BioTrade and WHO GACP, they can production and implement sustainable and the cooperative signed a supply sustainably harvest che-day up to practices as it requires massive and contract for che-day. Traphaco sought nine months per year and receive a constant effort. Hopefully, BioTrade help from local experts at the National better price for their product (20 per committed enterprises similar to Institute of Medicinal Materials and cent higher). The direct contract with Traphaco would be capable of the BioTrade project (implemented by Traphaco raised the income of the overcoming the obstacles; enhancing HELVETAS Swiss Intercooperation Viet Dzao community, nearly doubling their status as pioneering Vietnamese Nam) to set up a training programme from US$200 to US$400 for 30 pharmaceutical companies. for the cooperative. The issues covered days’ collection per year (Ta, 2013) in included the sustainable cultivation of comparison with US$130 (People’s che-day so as not to depend solely Committee of Lao Cai province, 2014),
27 20 years of BioTrade
BioTrade and the planet
BioTrade has benefited and positively impacted biodiversity in different biodiversity- based sectors and regions through the development of methodologies, guidelines, 3 training courses, as well as enhancing governance to support its conservation and use. This section provides examples of initiatives being promoted by BioTrade practitioners in Asia, Africa and Latin America, working on orchids, non-wood forest products, amphibians and forest carbon initiatives. Beneficiaries are using their native biodiversity in a manner that contributes to conservation.
BioTrade and the planet: Case studies and their contribution to the Aichi Targets and SDGs
Sustainable Development Case study Aichi Targets Goals
3.1 BioTrade and the CBD – supporting conservation and sustainable use of biodiversity
3.2 Natura and the Suruí Forest 3, 4, 7, 11, 18,19, 20 1, 2, 8, 10, 12, 13, 15 Carbon Project (Brazil) 3.3 EcuaFrog, WIKIRI and the 4, 5, 12, 13, 19 12, 15 amphibian pet trade (Ecuador) 3.4 Sustainability principles and criteria 2, 4, 7, 19 1, 2, 5, 8, 9, 10, 15 applied towild collection of non- woodforest products (Kosovo) 3.5 Traceability in orchids: A win-win 3, 4, 12, 13, 19 9, 12, 16 tool to enhance sustainable trade (Peru) © Fotolia: snaptitude
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BioTrade and the CBD – supporting conservation and 3.1 sustainable use of biodiversity
Given the growing importance of biodiversity-based products in global, regional and local markets, BioTrade is an important tool to support implementation of the CBD and its three objectives. The commercial use of biodiversity under BT P&C is a commendable way to seize this opportunity and benefit people, markets and the planet.
Initiative has been recognized in many towards meeting some components Braulio Ferreira decisions of the COP to the CBD as of the Aichi Targets, but that in most de Souza Dias, an important contribution to achieving cases, additional action is urgently Executive Secretary, CBD the sustainable use of biodiversity required to achieve the Strategic Plan and, by harnessing the commercial for Biodiversity. interest in using biological resources, BioTrade can play a vital role in to generating incentives for biodiversity achieving the Strategic Plan for conservation. Biodiversity. Interest in commercial use The basis of BioTrade activities of biological resources is a powerful and products are flora and fauna, incentive for encouraging biodiversity such as flowers, nuts, fruits, seeds, conservation. There is considerable the skin of amphibians and other potential for growth of this sector: the wildlife, but also ecosystem services global market for biodiversity-based such as ecotourism. Many of these businesses, including BioTrade, is products and services are produced projected to triple by 2030 (Gómez- BioTrade and the planet: Case studies and their contribution to the Aichi Targets and SDGs by local communities as a source of García et al., 2014). The effective Introduction income, while others have been used mainstreaming of biodiversity and by the pharmaceutical, food and ecosystem services into economic Economic activities related to the and governmental sectors as well production and trade of biodiversity- as across society is key to scaling based products in a manner that As we work together up BioTrade. This includes various addresses all three elements of “to achieve the goals elements: raising awareness of the sustainability (environmental, social and of the CBD, it will value of biodiversity among consumers, economic) is referred to as BioTrade. be important to take businesses and governments so that In 2013, at least 4 percent of world biodiversity criteria are effectively trade consisted of biodiversity-based steps to support the role of BioTrade... included in purchasing decisions; products and services, including improving the enabling environment BioTrade products (Gómez-García et for BioTrade through policies and al., 2014). While still a niche market, the beverage, and cosmetic sectors in the legal frameworks; removing trade trade of products sustainably derived development of new products. Ensuring barriers; streamlining certification and from biodiversity has grown significantly that biological resources are used in a labelling of products; and strengthening in the past decade. One driver of this sustainable manner is crucial for these supply chain management towards growth is the fact that consumers are business sectors since the economic enhanced sustainability, traceability increasingly concerned, and aware of, benefits can be generated only for as and accountability. These factors are the environmental and social impacts long as these biological resources are indispensable to the long-term success of their purchasing decisions. BioTrade available. Protection of biodiversity of BioTrade and its contribution to can thus play an important role in is therefore at the very heart of any conservation and sustainable use of contributing to the implementation of BioTrade activity. biodiversity. These elements could the CBD and the Strategic Plan for be achieved through the concerted Unfortunately, however, many countries Biodiversity 2011–2020. efforts of governments, international are losing biodiversity at extremely organizations, BioTrade companies and In 1993, the CBD entered into force alarming rates. The fourth edition of local communities to support effective with three objectives: the conservation the Global Biodiversity Outlook (GBO4) BioTrade promotion and market of biological diversity, the sustainable (Secretariat of the CBD, 2014) provided development. use of the components of biological a mid-term assessment of progress diversity, and the fair and equitable in achieving the Strategic Plan for As we work together to achieve the sharing of benefits arising out of Biodiversity 2011–2020 and its 20 goals of the CBD, it will be important the utilization of genetic resources. Aichi Biodiversity Targets.13 The report to take steps to support the role of The work of the UNCTAD BioTrade found that there has been progress BioTrade.
29 20 years of BioTrade 3.2 Natura and the Suruí Forest Carbon Project (Brazil) In 2013, Natura purchased carbon units from the Suruí Carbon Forest Project contributing to the conservation of endangered rainforest in Brazil. It also aimed to co-fund the implementation of the Suruí’s 50-year “life plan” to create a sustainable economy. This initiative is part of Natura’s Carbon Neutral Programme, committed to neutralize 100 percent of its GHG emissions since 2007.
Science, biodiversity and trade Talía Manceira The reality faced by Bonfante, Sustainability challenges instigated 14 this kind of initiative Sustainability Natura to innovate its way of “ Coordinator, Natura doing business. In 2000 Natura is tough... Cosmeticos; made the decision to incorporate Ivaneide Bandeira Brazilian biodiversity as a driver Cardozo, Kanindé, for its technological R&D platform. Strategic Partnerships Establishing local partnership networks initiated by an indigenous community Coordinator; Almir and combining science with the TK of (Paiter-Suruí) took place, providing an Narayamoga Suruí, Amazon communities, it created jobs innovative template for other indigenous Environmentalist, and generated income opportunities people across the Amazon. Political Activist and for collectors’ families, benefiting all Suruí Tribal Chief, The Suruí Forest Carbon Project stakeholders involved. In addition, Associação Metareilá; (SFCP) aims to halt deforestation and it strengthened the maintenance of Vasco Roosmalen, associated GHG emissions in an area rainforest economic development, Executive Director under intense deforestation pressure, ECAM; Kachia fostering its conservation. in the Sete de Setembro Indigenous Techio, Indigenous Territory (SSIT) (Figure 3.1), located Advisor, Associação In 2007 Natura launched the Carbon Metareilá Neutral Programme to neutralize GHG in the so-called Brazilian Amazon’s emissions that cannot be reduced by “deforestation arc”, in Rondônia and the company’ own efforts. Through Mato Grosso states (IDESAM, 2011; a tender process, Natura started to Jaramillo et al., 2016). This protected invest in offsetting projects aimed area covers 248 000 hectares of forest at also generating positive social and faces several conflicts related to and environmental impacts. In this illegal deforestation resulting from agri- context, the first sale of forest-carbon business interest in converting forest credits generated by the first REDD+ into pasture and agriculture crops.
Figure 3.1 Sete de Setembro Indigenous Territory
Source: Soares, 2013. Note: IL refers to indigenous lands.
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Investing in carbon credits to conservation. SFCP also supports the requirements or establishing traceability protect forests and improve strengthening of indigenous women’s systems. Others suppliers lack formal people’s lives craft activities to promote income organizational governance and demand generation, culture value and conserve complex logistics that discourage The SFCP is an initiative led by the local biodiversity through the sale of the private sector in establishing Paiter-Suruí, who were searching for products in a shop in the indigenous commercial agreements. financial mechanisms to implement territory. their forest conservation strategy, In order to build a bridge between while improving their quality of life, and biodiversity-based suppliers and the preserving their traditional culture and The future is now – challenges and market, structural actions are needed in knowledge. opportunities two areas: The initiative supports the maintenance The implementation of the SFCP project • Government level: Establish policies, of carbon stocks in the standing has elements to catalyse biodiversity laws and legal instruments that give forests and consequently in the entire conservation and sustainable legal certainty for organizations and biodiversity in the SSIT and involves socioeconomic development by the companies practising BioTrade. sales of carbon credits and BioTrade six associations composed of Suruí • Local level: Invest in social capital products and services (e.g. derived people (IDESAM, 2011). In 2013, and capacity-building programmes from NTF products or sustainable Natura bought 120 000 verified carbon for suppliers so that they can be tourism). This arrangement generates a units from the project (Jaramillo et al., protagonists of their development, virtuous circle: sales’ income is invested 2016). The revenue from this sale, drive innovation and monitor their in structural actions that strength managed by the Suruí Fund, is invested activities through a robust plan of sustainable supply chains and foster in their 50-year “life plan”, which aims forestry management, processing local development and livelihoods in to improve the indigenous people’s life units to increase aggregate value harmony with nature. quality and enhance forest conservation and valorization of biodiversity-based and traditional practices within the However, the reality faced by this kind products. locality. Among eight main activity of initiative is tough. The combination Furthermore, it is important to highlight areas, this alternative economy fosters of forest conservation and sustainable that BioTrade products and forest sustainable activities that generate forestry depends on several factors carbon projects (such as the SFCP) income from coffee, banana, Brazil and mutual willingness of traditional involve communities with complex nuts, cattle, tourism, babaçu (Orbignya populations, the government and sociocultural arrangements. Therefore, speciosa) and fish farming (IDESAM, private sector. There is clearly a it is necessary that the stakeholders 2011). To ensure understanding among demand for biodiversity-based involved have a relationship beyond the associations and their participation products, but also a gap between commercial transactions, enabling joint in the project a free PIC process was suppliers (in many cases small creative solutions to overcome the conducted, according to the Brazilian farmers, collectors, indigenous and possible barriers that may arise in this legal framework (Ávila, 2010). The quilombolas – descendants of Afro- kind of economic activity. activities also target fauna conservation Brazilian slaves) and demand from monitored by indigenous agents who the marketplace. Many suppliers have collect data and guide the community difficulties in meeting quality and volume on the importance of biodiversity
Amazon rainforest © Fotolia: gustavofrazao
31 20 years of BioTrade 3.3 EcuaFrog, WIKIRI and the amphibian pet trade (Ecuador) WIKIRI is an Ecuadorian BioTrade company that breeds and exports amphibians worldwide. Under its EcuaFrog brand, it sells laboratory- and farm-bred amphibians and other related products to the pet trade. This pioneer and innovative scientific enterprise produces bio-knowledge and does business to help fund research and conservation of Ecuadorian amphibians.
breeding, and financing for research María Dolores Introduction and conservation of amphibians. To Guarderas, General Ecuador is a megadiverse country with date, WIKIRI has developed unique Manager, WIKIRI S.A. 569 amphibian species known to date. technological advances to improve the This extraordinary diversity is threatened breeding and conservation of 16 frog by extinction. According to IUCN species in Ecuador that are threatened (IUCN, 2008) more than one third of with extinction, including some CITES- the world’s amphibians are threatened listed species. or extinct, and the largest numbers of endangered species occur in Latin WIKIRI collaborates with a variety of America. In Ecuador no less than 200 Ecuadorian scientists, especially from Box 3.1 WIKIRI and EcuaFrog species are on the IUCN Red List. Centro Jambatu (Box 3.1), whose Global warming, pathogens, habitat support is fundamental to developing WIKIRI has several products under destruction and a cocktail of other novel breeding techniques to raise the brands EcuaFrog, SelvaViva, factors are conspiring to undermine large numbers of critically threatened EcuaGrillo, among others. the survival of amphibians. The illegal populations. The scientists have traffic of amphibians has contributed to utilized techniques to enrich the frog WIKIRI currently exports 16 species declines as well. habitats, restore frog populations in and seven morphs of frogs for the degraded forests and developed ex pet market. The most demanded Generally, the amphibian pet trade situ breeding strategies (in laboratories) species is the Little devil poison frog has been characterized by illegal and for endangered species. One of Oophaga sylvatica, which currently unethical practices, including the WIKIRI’s key breeding technique is has three commercial morphs: Paru, capture of wild frogs and subsequent to provide a proper diet, including Diablo and Pata Blanca. smuggling, false claims of either captive dietary supplements, and to mitigate breeding or sustainable farming and WIKIRI supports conservation and development and metabolic issues unsustainable catch quotas (Brown research programmes, one being associated with captive frogs. Jointly, et al., 2011). In this scenario, WIKIRI, executed by Centro Jambatu WIKIRI and Centro Jambatu have been through its EcuaFrog brand, provides (Center for Amphibian Research and successful in developing technologies an ethical and legal option, aiming to Conservation) – Otonga Foundation. to breed and raise endangered contribute to reverse the depletion of It is a non-profit NGO committed harlequin frogs of the Atelopus genus amphibians. to habitat protection, research, and marsupial frogs of the Gastrotheca conservation and education. genus, among others. This a big Source: http://www.anfibioswebecuador.ec/ How WIKIRI contributes to step forward for ex situ conservation and www.otonga.org. research and to reducing programmes of harlequin and marsupial amphibian depletion frogs in Latin America, where more than 100 species are critically endangered. Wikiri and EcuaFrog were launched to WIKIRI laboratory in Quito, Ecuador provide urgent action and to implement Much of the in situ work is done in the new, creative and multidisciplinary Otonga Foundation’s private reserve, efforts to reverse extinction trends. Otokiki, which is managed by WIKIRI It brings a new form of ethical and and is located in the Ecuadorian Chocó sustainable commerce to combat region. In this reserve, WIKIRI manages wildlife trafficking. It incorporates and studies Oophaga sylvatica (Paru science and social responsibility into morph), Agalychnis spurrelli, Cruziohyla the mindset of a business focused calcarifer and Hypsiboas picturatus. on providing high quality products to Studies analyse the natural history of the amphibian pet trade in line with these frogs in enhanced habitat BioTrade Principles. The price of conditions. Based on the findings, products covers the production costs WIKIRI has recruited larger sized of implementing high quality standards juveniles and enough surplus animals and good practices for animal for the pet trade. Consequently, it does ©WIKIRI
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Critically endangered harlequin Diablito (little devil) poison frog Tricolour poison frog raised by frogs (Atelopus elegans, raised by WIKIRI (Oophaga WIKIRI (Epipedobates tricolor, Atelopus balios, Atelopus sp.). sylvatica, diablo morph). cielito morph). This population These species are part of the ex Populations of this morph are has suffered significantly due to situ management programme suffering massive declines in illegal trafficking. called Arca de los Sapos of northwestern Ecuador. Centro Jambatu, of the Otonga Foundation.
© WIKIRI © WIKIRI © WIKIRI not rely on stocking from wild, smuggled frogs. The same is the case for five frog species which are successfully raised ex situ in WIKIRI facilities, either in laboratories in Quito or farmed near Santo Domingo de los Tsáchilas. For example, several morphs of Epipedobates tricolor and E. anthonyi are bred and raised in Quito, whereas two morphs of the little devil poison frog (Oophaga sylvatica), are bred in Sapoparque La Florida, near Santo Domingo. Andean marsupial frog Sun’s glass frog (Gastrotheca riobambae) raised (Hyalinobatrachium The future of the sustainable trade by WIKIRI. Laboratory-raised aureoguttatum). This is a new of Ecuadorian amphibians frogs will be used to reintroduce species released to the legal pet Since its launch in 2011, WIKIRI (www. into their previous habitat around trade by WIKIRI in 2015. wikiri.com.ec) has become a pioneering Quito, Ecuador. amphibian breeder and research company working under the BioTrade framework. © WIKIRI © WIKIRI WIKIRI will continue financing and helping to develop research and ex situ conservation programmes to understand more about the amphibians’ which will directly impact its profitability. behaviour and dynamics and improve To access this market, the company their wild populations. They will also needs to address, inter alia, the promote the sharing of experiences following challenges: delays in obtaining and knowledge to improve breeding research and trade permits, fears of the practices globally. WIKIRI is promoting spread of pathogens, smuggling and legal trade of these species by working difficulties working in conflict areas (e.g. with government authorities to develop Otokiki). Despite all of these, WIKIRI is monitoring and traceability systems in convinced and committed to engaging order to reduce frogs smuggling. in BioTrade as an effective tool for not only the conservation of amphibians, The company’s long-term growth and but also of hundreds of flora and success depends mainly on access fauna species which characterize a to and expansion of the legal and megadiverse country like Ecuador. sustainable pet trade for amphibians,
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Sustainability principles and criteria applied to wild 3.4 collection of non-wood forest products (Kosovo)
In Kosovo, the National Strategy on Non-Wood Forest Products (NWFP) Sector 2014–2020 and its associated action plan have been developed to cope with the country’s economic challenges with the support of GIZ/COSiRA. One instrument to strengthen its economy is the sustainable wild collection of NWFP, based on UNCTAD BT P&C, GACP (WHO, 2003) and the FairWild Standard (FairWild Foundation, 2010).
Introduction unemployment and poverty, to Klaus Dürbeck, strengthen public institutions and Stefan About 20 000 individual collectors, Director; infrastructure, and to improve the Lermer, Project 100 sub-operators and around 10 business climate. Addressing these Manager, Klaus processing companies are part of objectives, the Ministry of Agriculture, Dürbeck Consulting the NWFP sector in Kosovo. It is Forestry and Rural Development also an important source of income, (MAFRD), the Ministry of Environment especially for women and minorities and Spatial Planning and the Ministry in rural areas. The current GIZ project of Trade and Industry have developed “Competitiveness of the Private Sector different strategies to improve the in Rural Areas” (COSiRA), based on the country’s economic development National Strategy on Non-Wood Forest (MAFRD, 2014). Products (NWFP) Sector 2014–2020 (henceforth “National Strategy”), is The National Strategy aims to develop supporting the sector’s stakeholders rural areas through the sustainable implementing challenging activities use of natural resources (Box 3.2). It related to NWFP management in also coordinates activities of all actors Kosovo (MAFRD, 2014). The project (public, private and donors) in this aims to generate rural income through sector, which absorbs a significant sustainable wild collection of NWFP. amount of labour in almost all rural So far, 62 economically valuable plant areas of the country. A focus is set species have been identified. on income-generation activities for the rural population and enhancing sector/regional competitiveness. It also NWFP as a strategy to promote balances the production of goods with Kosovo’s development the conservation of nature through the The economy of Kosovo faces many sustainable use of biological resources, challenges. The main objectives of its in compliance with international government are: to reduce high environmental agreements and rules.
Box 3.2 Pillars, objectives and activities for implementation of the NWFP strategy Objectives of Pillar I: Objectives of Pillar II: Objectives of Pillar III: Capacity building for resource Resource management for resource Organization of the private sector, owners (private and public), owners and resource users. including private forest owners, resource users and collectors. Activities: companies and entrepreneurs. Activities: • Capacity development at Kosovo Activities: • Pre-university vocational education Forest Agency and National Park • Promoting establishment of for forestry profiling; Administration; associations; • Development of sustainable training • Identification of access rights; • Creating a favourable business systems for sustainable wild • Development of sustainable climate; collection; management plans for Kosovo • Providing possibilities for the private • Intersectoral mobilization for raising forests and national parks; and sector to undertake management of awareness of the importance of • Development and implementation of public forests; and NWFP; and a licensing and permit system. • Initial land consolidation processes. • Assessment and improvement of needs for scientific research premises. Source: MAFRD, 2014.
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Figure 3.2 Non-wood forest products value chain in Kosovo
Source: ProFound- Advisers in Development, 2015.
The strategy also supports Kosovan parks and forest management units Fragaria vesca institutions and the private sector which enables the use of NWFP in a through: sustainable way for the environment, the fair share of benefits to rural • Practical implementation of a communities, and the value addition collection permit issuing scheme for for companies active in the sector areas under the administration of (Figure 3.2). the Kosovo Forestry Agency and the National Park Agency; In this context, the COSiRA project is supporting the sector’s stakeholders to • Incorporating NWFP in forestry overcome challenging activities related management plans as well as national to sustainable management of natural park management plans; resources. Particularly, it: • Technical support to the University • Legalizes and monitors sustainable of Pristina to refurbish the National wild collection; Herbarium, and collectors’ plant monographs to identify and collect • Complies with national and appropriate species for commercial international requirements related to use; and protection of the environment and implementation of fair and social • Developing and disseminating standards; a concept/outline for botanical identification manuals. • Further positions and strengthens © Klaus Dürbeck Consulting the integration of national value chain The strategy and associated action stakeholders into relevant international plan follow the principles of the FairWild chains, for example with products Standard, WHO GACP and UNCTAD So far, 62 derived from Primula veris, Juniperus BT P&C, as well as its management economically communis, Fragaria vesca and “ plan guideline (Becerra, 2009a) to Vaccinium myrtillus; and valuable plant protect and use NWFP in Kosovo on species have been a sustainable basis. Furthermore, the • Attracts and facilitates investment for identified... FairWild Standard is the certifiable enhancing value added activities in implementation standard in national the country.
35 20 years of BioTrade
Juniperus communis growing wild in Kosovo Primula veris © Klaus Dürbeck Consulting © Klaus Dürbeck Consulting
product identity;substantiating botanical Recommendations to further upscale The National identification through the National the sustainable management and Strategy aims Herbarium in Pristina, in collaboration trade of NWFP, as an engine to “ with the Herbarium of the Botanische promote sustainable development and to develop rural Staatssammlung in Munich, Germany, conservation of biodiversity are: areas through the as an international reference. sustainable use of • The consensus in the National natural resources... The main lessons learned in the context Strategy by the members of the of the COSiRA activities in implementing national working group offers sustainable wild collection are: the structure for investment in conservation and sustainable use • The formation of a national of wild resources in Kosovo through Ways forward in developing the stakeholder working group proved sustainable wild collection based on NWFP sector crucial in identifying and activating the the FairWild Standard. Although Kosovo is not a party to stakeholders concerned and working MEAs such as CITES and CBD, it is through inputs from international • Overcoming the limitations on human aware of these as well as the 2030 experts providing information and and financial resources to allow Development Agenda and the SDGs. training along with active participation successful implementation. Based on NWFP resource management at working group meetings. • The training of different stakeholder for Sharri National Park and pilot • Supporting the trust building process groups as forest guards and forest management units, the resource with the development of the National customs on processes for botanical owners are in position to commit Strategy allowed all stakeholders identification, resource assessment the necessary human and financial active participation and representation. and management, requires additional resources to implement and police the efforts in policing the implementation respective resource management plans. • Product identity proved to be by well informed, motivated Through a national stakeholder working the cornerstone; this required personnel. group, including private forest owners, refurbishment of the National a discussion forum with civil society is Herbarium as a reference point functioning between forest owners and for resource owners and users for users to transform the resource use conservation and sustainable use of NWFP into a value added format and resulted in renewed recognition based on the FairWild Standard as a for the institution. management standard, which is based • The trust building for access to on the WHO GACP (WHO, 2003). international markets through COSiRA/GIZ is spearheading the the participating companies was implementation of the National strengthened through product Strategy by supporting actors such documentation based on the as concerned ministries to establish principles of the FairWild Standard.
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Traceability in orchids: A win-win tool to enhance 3.5 sustainable trade (Peru)
Implementing traceability systems in the trade of ornamental plants is one of the major issues in strengthening the control of legal trade and its regulation. Thus traceability is a fundamental element in ensuring the conservation and promotion of BioTrade practices. Through a Peruvian case study to setup and implement an orchid traceability system project, the benefits and challenges can be seen.
Introduction control and documentation Vanessa Ingar, mechanisms that enable species’ The international trade in ornamental BioTrade Specialist; mobilization from reproduction centres, plant species is one of the major Harol Gutiérrez, where orchids are nurtured to the final pressures related to the conservation CITES Specialist, destination (consumer), such as forestry of wild orchid populations (MINAM, Ministry of transportation permits, do not allow the 2014). In Peru, market potential is Environment complete history of the orchid, from the (MINAM), Peru based on the diversity of orchids, nursery to commercial outlet, to be estimated at 2600–3000 species. tracked. Consequently, crucial The richest resource areas are located information to assure the origin and in the Amazon region (Brako and monitor the trade from an authorized Zarucchi, 1993; Roque and León, nursery is lost. 2006). The trade in orchids adhering to CITES requirements, has an In San Martín – one of the richest important market, which can support orchids regions and considered an the sustainable use of biodiversity. In emerging market for ornamental Peru the legal framework that guides species – the first traceability initiative this trade is the Forest and Wildlife for orchids was initiated with the Law 29763, which focuses on the support of the PerúBiodiverso project sustainable use of artificial orchid (SECO/GIZ). The results of this reproduction centres, and regulating project demonstrated the advantages and penalizing illegal trafficking and of traceability and the positive trade of wild species. However, the perspectives it offers for sustainable
Cattleya orchids in a nursery in Peru ©SERFOR
37 20 years of BioTrade and harmonized trade in line with consumer. Initially, technology and Productive conservation based on biodiversity conservation and BioTrade capacity challenges, such as the sustainable use of biodiversity is one Principles. In Peru, the National Forestry manual organization of registers into of the most efficient conservation and Wildlife Service (Servicio Nacional a unique database raised problems alternatives – with the correct Forestal y de Fauna Silvestre), as related to the identification of parental management and controls. In this the CITES Management Authority, breeding stock, management of non- context, ornamental plants trade can is responsible for the legal trade of identified clones and control of lost be used as a good model of productive wild species that are reproduced on crops, among others. conservation, if legal trade based land, assuring species traceability on artificial cultivation is facilitated. Once the project ended, each orchid and managing the administrative Decreasing the risk of illegality (wild species in the nursery was identified in requirements of CITES. harvest) ensures that trade is not detail through a systematized inventory, detrimental to wild populations, but this technical sheets, GTIN-13 standard requires strengthening and promoting code, images and documentation of mechanisms of traceability. Productive the species’ unique characteristics. In “conservation based a master database, all the information on sustainable use related to providers, clients, employees, of biodiversity is transportation and others was one of the most available and adequately identified and registered. One relevant result was the efficient conservation improvement of the nursery’s entry and alternatives... exit control of plants from production centres. This highlighted the importance of the traceability proposal as a key tool in strengthening existing control Implementing a traceability system mechanisms, and enhancing inspection for orchids and tracking processes being led by the CITES Management Authority, as The pilot project implemented the well as clarifying the difference between traceability mechanism for the trade in the nursery’s estimated and real orchid orchids for one of the biggest nurseries production. The nursery is currently an in the San Martín region, Vivero Agro orchid exporter fulfilling all the required Oriente. It developed information permits and its governance structure management tools and a monitoring enables the monitoring and tracking of standard, using a unique codification/ species origin. identity. This assured the traceability of the orchid from collection to final ©SERFOR ©SERFOR
Breeding orchids in a laboratory Cyrtochilum sp. ©MINAM
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Comparettia sp. ©MINAM
Upscaling this experience at the national level Traceability systems in ornamental nurseries are an essential support to assure the sustainable trade of species. However, this has to be combined with other control and command mechanisms and regulatory frameworks for successful implementation. It not only enables more effective monitoring, regulation and control, but also improves the operation of all actors involved. The Peruvian CITES Management Authority,with technical support from the Scientific Authority (Ministry of Environment), should promote traceability system projects in the next few years as a mechanism for strengthening CITES processes, limiting illegal trafficking and trade in orchids, to guarantee sustainable use. Furthermore, these systems enable national orchid nurseries to have a competitive advantage when accessing international markets. Traceability not only enhances transparency and the reputation of nurseries and their products (orchids) with clients and governments, it also enables them to have a competitive marketing and positioning tool at local and international level. This is a win-win situation for all actors involved in the orchid value chain. Mormodes rolfeana ©MINAM
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BioTrade and markets
Through BioTrade, its beneficiaries – companies, associations and projects – are placing their products and services not only in national markets but also 4 regional and international ones across a variety of biodiversity-based sectors. This section includes case studies working with flora and ecosystem services (sustainable tourism) in Africa, Asia and Latin America.
BioTrade and markets: Case studies and their contribution to the Aichi Targets and SDGs
Sustainable Development Case study Aichi Targets Goals
4.1 BioTrade and market-driven strategies to develop biodiversity-based sectors and businesses
4.2 Developing inclusive and resilient 2, 4, 7, 16, 19 8, 9, 12, 15 indigenous natural products sector (southern Africa) 4.3 Communitarian ecotourism: An idea 1, 2, 4 8, 12, 15 full of nature (Colombia) 4.4 Promoting sustainable cocoa 2, 3, 4, 19 1, 2, 8, 9, 10, 12, 15 (Ecuador) 4.5 Novel food regulation: Beyond a 4, 19 9, 12 technical protocol? Sacha inchi oil (Peru) 4.6 When all that is needed is a little 4, 7, 19 9, 12, 15 push (Viet Nam) © Fotolia: Dmitriy Danilenko
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BioTrade and market-driven strategies to develop 4.1 biodiversity-based sectors and businesses
BioTrade, which fosters the sustainable use and trade of biodiversity- derived products and services, contributes to development and trade agendas by addressing biodiversity loss and poverty. For over 20 years, UNCTAD, its partners and practitioners, have been building a BioTrade enabling environment, strengthening value chain actors’ capacities to trade value added products and services, and facilitating access to key markets.
The impact of biodiversity and Barometer. Similarly, the importance of Lorena Jaramillo, social concerns in trade and biodiversity is increasingly recognized in Economic Affairs trade agreements such as the Trans- Officer, UNCTAD development agendas Pacific Partnership that includes, inter BioTrade is considered as a market- alia, the commitment of its partners to driven incentive for the sustainable use combat wildlife trafficking, illegal logging and conservation of biodiversity and and illegal fishing (Office of the United the equitable sharing of the benefits States Trade Representative, n.d.). generated by its use and trade. It is also These trends are an important driver recognized as such in several UNCTAD for BioTrade and its goal of conserving and MEA mandates. For instance, it biodiversity, promoting sustainable responds to the trade-related aspects livelihoods and creating broader of CBD Article 10 on sustainable use, sustainable development opportunities. BioTrade and markets: Case studies and their contribution to the Aichi Targets and SDGs 11 on incentive measures and Aichi Target 3. Similarly, CITES-UNCTAD Market access for biodiversity products collaboration recognizes the role is increasingly affected by non-tariff that economic incentives play in the measures (NTMs). Some NTMs are sustainable resource management. used as commercial policy instruments (e.g. subsidies, trade defence measures), while others stem from Accessing markets, non-trade policy objectives (e.g. food particularly premium safety and environmental protection) “ (Erasmus et al., 2014). “NTMs may ones, motivates have restrictive and distorting effects on BioTrade and international trade. This can comprise biodiversity-based complex technical barriers to trade businesses to (TBT) and sanitary and phytosanitary continue implementing (SPS) measures” (Cadot et al., 2015) the sustainability that are difficult to comply with. principles... BioTrade actions to access national and international markets Accessing markets, particularly The growing trends for sustainable, premium ones, motivates BioTrade natural, environmentally and socially and biodiversity-based businesses to responsible consumption and continue implementing the sustainability production patterns trigger the sale principles. It also provides businesses of BioTrade and other biodiversity- with resources to continue their based products and services. operations. Exporters’ understanding Raising awareness and valorizing of and compliance with requirements biodiversity is also a way of creating (e.g. SPS regulations and standards) and developing markets and seizing from key markets, are essential to market opportunities (UNCTAD, 2013). accessing them. Standards, such For example, consumers wish to know as ISO (International Organization more about the sourcing practices of for Standardization), hazard analysis the ingredients and services purchased, and critical control points (HACCP), as shown by the 2016 Biodiversity GMP, Globalgap and WHO GACP,
41 20 years of BioTrade are also used in the market place. environment, and the formulation Concluding remarks Additionally, voluntary sustainability and implementation of several tools Accessing and creating markets for standards are increasingly key to and activities to access national and biodiversity products and services accessing premium markets. Strategies international markets. Partnerships have is a complex and complicated issue implemented by BioTrade partners been essential for BioTrade, for instance that requires enhancing the capacity across the globe include tackling and working with trade promotion agencies of value chain actors and keeping up understanding consumers’ preferences from developing countries, such as the to date with market and consumer and distribution channels, and reaching Export and Tourism Promotion Agency requirements. However, it is also the out to buyers with value added, high of Peru (PROMPERU), Corporación basis for developing profitable, long- quality and differentiated products and de Promoción de Exportaciones e term commercial businesses, using services. Experience has shown the Inversiones from Ecuador (CORPEI) these products and services sustainably need to be inclusive, involve a broad and the Uganda Export Promotion and enhancing the livelihoods of the number of national and international Board, as well as trade promotion sourcing communities. organizations and experts, and programmes or centres from developed guarantee the flow of information and countries, such as the Dutch Centre benefit sharing among all value chain for the Promotion of Imports from actors. Developing Countries and the Swiss Import Promotion Programme, and BioTrade’s value chain approach leads international agencies, such as ITC. to fulfilling market requirements. This Box 4.1 provides some examples of has helped in the development of actions taken. a BioTrade-friendly enabling policy
Box 4.1 Actions taken by BioTrade partners to access markets
• Enabling policy environment: conceived for instance to develop developments and the development Identifying and addressing policy substantive supporting documents agenda (SDGs, climate change, gaps and duplication at national and (e.g. material safety datasheets) and natural resources depletion). R&D also international levels, as well as market implement traceability systems. In plays a key role, for instance with the barriers that are negatively affecting some countries, partners organized development of new products and the trade of BioTrade products and specialized trade fairs, such as enhanced product differentiation. services. For instance, understanding Perunatura, or the promotion of • Enhancing consumer awareness: and complying with regulations or country-flag products. Focusing on this area by highlighting voluntary requirements from target • Geographical indications and the social and environmental benefits markets can be challenging for SMEs appellation of origin: Recognize of BioTrade products and services in from developing countries. SPS or and identify typical characteristics of order to enhance the market for them. TBT requirements, particularly for a product or service or development This is implemented in Viet Nam. The new biodiversity-based traditional process integrating specific know- Biodiversity Barometer contributes food products, such as the EU NFR how, such as the “cacao arriba” and measures consumer awareness have resulted in time-consuming and appellation that was developed by in relation to biodiversity. significant costs due to trials and risks the National BioTrade Programme assessment that have been funded • Access to market information: in Ecuador with the support of the jointly by the companies, BioTrade Involves not only market intelligence Ecuadorian Intellectual Property partners and other donors. Similarly, with specialized studies and websites, Institute, UNCTAD, cocoa producers, new regulations such as the Nagoya but also technical assistance and companies and research associations Protocol are essential to create a capacity-building activities, and (Jaramillo, 2012). policy environment that complies specific market access guidelines, with international requirements and • Market differentiation schemes: among others. Formulate and implement company supports BioTrade and implements • Access to finance: Creating funds, branding and product standards its principle on ABS. accessing venture capital and enabling focusing on “sustainability”, • Market access: Developing commercial banks to develop specific “biodiversity” and “social, inclusive and collaborative models and programmes credit lines such as CORPEI CAPITAL fair trade”, speciality products, and (e.g. B2B, public-private partnerships, (Ecuador) or the New Ventures even “peacebuilding and post-conflict business associations), participating in Biodiversity Investor Forum for the recovery” concepts. Standards and trade fairs and in buyer-seller missions Andean-Amazonian region (UNCTAD- certifications may be tools to address aiming to facilitate market linkages of CAF-World Resources Institute) the emergence of consumer demand SME providers of BioTrade products to promote concrete investment for more information and more and services with potential buyers opportunities through venture “sustainable” products and services, at national and international levels. capital in bio-businesses (https:// and production processes, improve Technical assistance programmes, sustainabledevelopment.un.org/ the quality and traceability of the coaching and funding have been partnership/?p=1586). products, and the fulfilling of regulatory
42 Chapter IV. BioTrade and markets
Developing inclusive and resilient indigenous natural 4.2 products sector (southern Africa)
For any entrepreneur in the world, the route to success is a challenging journey that requires patience and methodology. For a start-up located in a developing country, supporting tools are often yet to be designed. To reach the stage of business viability, joining forces remains the key starting point that has become the credo in PTA’s proposition to its members.
A bottom-up approach diversification strategy for the regional Véronique Rossow, indigenous natural product (INP) PhytoTrade Africa is a membership- Head of Research sector, PTA has also gathered data on based trade association that was and Development, many pipeline species that have been created in 2001 in southern Africa. PhytoTrade Africa identified to represent a commercial At that time, its main objectives were (PTA) interest, particularly for the food to mutualize all the efforts and funding and cosmetic sectors. For further needs of various stakeholders working information, see Figure 4.1. on the same local indigenous plant species, then to bring and share One recurrent commonality throughout technical and market support through the PTA network is the very strong a regional value chain approach. commitment entrepreneurs have towards the sustainable use of This BioTrade initiative started around biodiversity (e.g. with the establishment the marula oil value chain, but soon of resource management plans), expanded to additional southern African together with investment in developing species. Fifteen years later, it connects long-term business relationships with more than 55 SMEs (producers) across their collectors/harvesters. This goes in eight countries (Botswana, Malawi, line with BioTrade Principles which are Mozambique, Namibia, South Africa, embedded into PTA’s charter. Swaziland, Zambia and Zimbabwe), representing more than 12 500 local Such dedication towards social collectors (PTA, 2015). In terms of and environmental impacts has a products, its members are involved transactional cost, which PTA mitigates in the valorization of around 10 focal by providing a range of technical species,15 mainly NTF products that and commercial supports, therefore occur in several southern African fostering its network’s competitiveness. countries. In preparation of a robust © PhytoTrade Africa © PhytoTrade
Boabab and Kigelia africana
Among the many “challenges of such a bottom-up approach, a few are quite critical to ensuring long- term commercial success... Natal mahogany © PhytoTrade Africa
43 20 years of BioTrade
Lessons learned sales, where consumer purchasing In its “incubating” endeavours, and power is higher than in the country to strengthen its network, PTA has Among the many challenges of such of origin. Depending on the industrial more recently started to build a a bottom-up approach, a few are sector and geographical zone, strategy of higher resilience throughout quite critical to ensuring long-term entering a new market implies fulfilling its membership. This adaptive commercial success. Looking back specific NTMs such as regulatory management goes from developing at the two most iconic value chains compliance or label certification. The “fit for purpose” diversification that PTA has supported (marula oil cultural and geographical distances, strategies, to capturing as much and baobab powder), two strategic combined with the complexity of added value locally as possible. steps are pre-requisite for entering into some compliance procedures make any new product development: it difficult for a single producer to • At grassroots – patience and prepare for such compliance alone. Way forward methodology. From the identification The related costs could also put In the African region, the future of this of the species, to the first scaled at risk the return on investment (or “bio-economy”16 is highly dependent production, the level of investment simply its viability) for any business. on national policies to support local is high in terms of time, as well as innovation and entrepreneurship PTA had started the procedures two financially. Many investigations have (Lombard, 2015). It remains challenging years before obtaining the EU NFR and to be conducted, ranging from to connect small local producers with United States of America Generally resource assessments, commercial international players. Such imbalance in Recognized as Safe (GRAS) status potential, to technology and strength has to be decreased through for the baobab fruit powder in 2008. equipment evaluations. It took eight various processes, involving: efficient This involved mobilizing several of its years, many sample tests and several capacity-building training, suitable members in three different countries, process evaluations to go from local access to finance, and mainstreaming to provide representative samples from artisanal small oil production to a business resilience when developing their respective production in order to scalable marula oil production that inclusive value chains. The entry into build a meaningful regulatory dossier. had reproducible and marketable force of the Nagoya Protocol on ABS This value chain approach allowed specifications (CRIAA SA-DOC, plays an important role in providing decreasing risks and costs at each 2010). legal tools to foster fairer and win-win business level, while also benefiting business relationships. At the forefront • For market access – caution and non-members, who could then access of Nagoya Protocol implementation, methodology (again). The local the EU and United States markets at through its network, PTA has an market is often the first target of marginal costs. advocacy role that has certainly new product sales. But it is unlikely The enthusiasm and reward that bring become even more critical for its to be sufficient to allow profitable the first successes are quickly followed members and the entire INP sector. revenues. When preparing business by the need to ensure businesses plans, most SMEs target export sustainability.
Flowers and fruits from indigenous natural products © PhytoTrade Africa Martha K. Kangandjo-Negumbo, Manager of the Eudafano Women’s Cooperative (Namibia) at a trade fair in Europe © PhytoTrade Africa © PhytoTrade
44 Chapter IV. BioTrade and markets
Figure 4.1 PhytoTrade Africa © PhytoTrade Africa
45 20 years of BioTrade
Communitarian ecotourism: An idea full of nature 4.3 (Colombia)
Developing communitarian ecotourism in the Parques Nacionales Naturales de Colombia (PNN) (National Natural Parks of Colombia) is a valuable tool for social assessment and recognition of the benefits of nature; and becoming one of the most significant inputs to consolidate BioTrade. It is a process of commercial innovation based on natural and cultural assets that has adapted itself in a dynamic way to the global market’s demands, which are growing significantly.
Introduction in the world. This privileged position Juliana Hoyos forces the government to formulate BioTrade includes cultural identity Moncayo, policies defining the country’s land use and natural diversity as fundamental Environmental and productive development. These Business elements of sustainable development policies recognize the importance of Specialist, National and the conservation of the natural and biodiversity to consolidate peace and Natural Parks of cultural heritage in Colombia. More development scenarios. Colombia, Ministry universally, positioning environmental of Environment businesses in the sustainable economy Given the exceptional conditions of and Sustainable depends on societies’ production Colombian nature and culture, each Development and consumption patterns, and the PNN is unique in terms of geography, Translated by appreciation and recognition of the biology and culture. It is a perfect Carolina Valbuena benefits that people derive from nature. scenario for the contemplation and Osorio with the enjoyment of ecotourism activities.17 For the past 20 years, the growth of support of Lorena Colombia receives 4.2 million foreign Jaramillo, UNCTAD nature-based tourism in the global visitors per year, of which only 10 per market has increased (UNWTO, 2010) cent visit a PNN (PROCOLOMBIA, and enhanced the essential role of 2016). Over the past decade, the local communities in the conservation Colombian tourism sector has of natural resources (Kiper, 2013). experienced a 12.7 per cent growth, This article shows the experience of becoming the second highest income- a group of entrepreneurs inspired by generating activity in the country, after communitarian ecotourism who have minerals and oil exports (Revista Dinero, successfully positioned themselves as 2015). Nature-based tourism maintains one of the most recognized biodiversity a positive behaviour in comparison to conservation programmes in Colombia other sectors, as for instance, PNN (PNN, 2015). visits registered a 6 per cent growth in 2015 (Figure 4.2). This represents Colombia – a destination for peace approximately one million foreign and and nature national visitors. Likewise, the number of visitors grew by 11.7 per cent in the Parques Colombia stands out as one of the 10 Nacionales first quarter of 2016 (PNN, 2016c). EcoturCOMUNITARIOismo Naturales de Colombia countries with the highest biodiversity
Figure 4.2 Visitor numbers to National Natural Parks in Colombia (2013–2015) Ecotourism is a “major sector with 990 000 great potential for 970 000 Colombia. More effort is needed to enhance 950 000 its development 930 000 and openness to 910 000 international markets 890 000 in a sustainable 870 000 manner... 2013 2014 2015 Source: PNN, 2015.
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The real significance of PNN Utría, humpback whale © Fundación Yubarta communitarian ecotourism The opportunities to create value through the tangible and intangible attributes of nature are infinite. Diversity is considered the principal attraction of many destinations chosen by travellers wishing to experience local culture and nature (e.g. annually 6.4 million European travellers are interested in communitarian ecotourism (UNWTO, 2016). The UN World Tourism Organization (UNWTO) points out that tourism is a social, cultural and economic phenomenon that requires a long chain of production; making tourism one of the most inclusive economic activities at the global level. Differing from conventional tourism, communitarian ecotourism enlarges the social scope, claiming the role that local communities play in the conservation of the heritage (Comité Interinstitucional Figure 4.3 National Natural Parks in Colombia de Ecoturismo, 2007). In Colombia, the Communitarian Ecotourism Programme in National Parks (CEPNN) started as a conservation strategy over a decade ago with seven parks in the Andean, Caribbean and Pacific regions (Figure 4.3).18 Each CEPNN must: • Improve or maintain the conservation status of the PNN • Promote the social valorization of nature • Generate benefits that improve the local communities’ quality of life (Bio- comercio Colombia, 2014). Since 2008, 10 communitarian ecotourism initiatives (CEIs) have been implemented; each includes a contract for the provision of communitarian ecotourism services and actions. Within the CEPNN and with the support of the GEF-CAF-UNEP Andean BioTrade Project “Facilitation of financing for biodiversity-based businesses and support for market development activities in the Andean region” (Biocomercio Colombia, 2014) each CEI enhanced their knowledge and skills to develop BioTrade businesses, implement sustainability principles and criteria (e.g. BioTrade) and good ecotourism practices. Additionally, they diversified their economic activities by developing products and value chains associated with ecotourism such as handicrafts. A knowledge sharing Ecotourism chains of value scenario was created among them, which enhanced their skills related to Handicrafts chains of value commercial and promotional strategies and the implementation of business Source: PNN website: www.parquesnacionales.gov.co.
47 20 years of BioTrade plans, aiming to enrich their capacity Figure 4.4 Visitor flows to communitarian ecotourism destinations to develop nature-based tourism companies. SFF Otún Quimbaya By the end of 2014, the number of visitors to the six CEIs increased by 4.6 SFF Iguaque per cent from 2013 to 2014 generating US$313 000 in sales, and with 95–97 PNN Chingaza per cent visitor satisfaction registered PNN Utría for the past three years (figures 4.4 and 4.5) (PNN, 2016c). Similarly, PNN El Cocuy four of the six CEIs increased their PNN Corales del Rosario revenues by almost 54 per cent. Under the CEPNN, 80 per cent of the CEIs 0 200 000 400 000 600 000 800 000 1000 000 1200 000 1400 000 promoted their initiative to domestic 2013 2014 2015 and international markets by raising Source: PNN, 2016a. awareness and implementing promotion and commercialization activities, including using new technologies and Figure 4.5 Revenue (2014) social media (Twitter, Facebook and 19 Instagram). Furthermore, the number 2014 of PNN has increased to 11 located in SFF Otún Quimbaya seven departments (Figure 4.3). SFF Iguaque Today, communitarian entrepreneurs focus on obtaining a sustainability PNN Utría certification for their activities, PNN El Cocuy enhancing their language skills and diversifying their products, activities PNN Corales del Rosario 100 000 150 000 200 000 50 000 250 000 300 000 350 000 and services. This is achieved by 0 enhancing the participation of different actors in the ecotourism value chain and fostering the empowerment of local Source: PNN, 2016b. communities.
Conclusions PNN Los Nevados, Laguna del Espejo (Mirror Lake) © Juan Manuel Torres Ecotourism is a major sector with great potential for Colombia. More effort is needed to enhance its development and openness to international markets in a sustainable manner. Competitiveness of the sector is a challenge that requires investing in infrastructure and equipment as well as in human talent. These efforts must strengthen communities’ entrepreneurship and organizational capacities, to enable them to manage their assets and financial resources and promote their touristic product. Furthermore, they need support to enhance their research and innovation capacities to develop new ecotourism products fulfilling sustainability standards (e.g. BioTrade). They also promote a unique experience, based the natural resources. This approach need to establish a network between on co-creation,20 establishing the fosters enlightened private participation public, private and civil society to avoid ‘visitor’s experience’ in the heart of the in conservation. It is a tool for duplicating efforts. communitarian ecotourism promise”. territorial planning and environmental management of PNN. From the business point of view, Close interaction with local communities designing the touristic experience is essential to generate positive The CEPNN has a strong institutional implies the synergy of multiple elements change between public and private and business insight that fosters the to enhance positioning, development actors at local, regional and national role of BioTrade in the development of and innovation of the product. levels. It is also important to generate the Andean region. It also encourages Naturar Iguaque (2015) stated: “We a positive response in safeguarding the inspiring idea that BioTrade is not (should) stop selling beds and food to just an idea in Colombia but a reality.
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4.4 Promoting sustainable cocoa (Ecuador)
UNOCACE, a cocoa producers’ association, has been working since 1999 to enhance the livelihoods of small cocoa farmers and their surrounding biodiversity in the coastal provinces of Ecuador. It focuses on producing and exporting high quality and differentiated cocoa beans to niche markets in Europe and the United States of America. It also shares its experience and knowledge to strengthen the cocoa sector.
Background National BioTrade Programme Freddy Cabello, and later in 2011 with the Andean The Union de Organizaciones Manager, UNOCACE; BioTrade Programme. This support Campesinas Cacaoteras (UNOCACE) Lorena Jaramillo, enabled UNOCACE to consolidate its is an organization that is part of the Economic Affairs commercialization strategy for organic Officer, UNCTAD Ecuadorian Popular and Solidarity and fair trade cocoa, access high- Economy (Economía Popular y quality markets in Europe and the Solidaria) created in 1999. It currently United States of America; resulting groups 927 small cocoa farmers with in an increase in the income of its 4157 hectares of national high quality members. Particularly, the biodiversity- cocoa (Theobroma cacao) know as friendly strategies implemented under fino de aroma. Their cocoa plantations BioTrade, more than doubled the are located in four provinces (Guayas, annual productivity of family cocoa Los Ríos, El Oro and Bolívar) and are plots, from 200 to 500 kilograms per managed under BioTrade Principles. hectare. The goal is to achieve 1000 They are also in line with organic, fair kilograms per hectare per year. trade, biodiversity-friendly requirements and post-harvest processes resulting in UNOCACE has also been providing a very high quality product. technical assistance to other cocoa producers’ associations in managerial The strategy of combining cocoa crops and quality programmes for enhancing with biodiversity enabled UNOCACE to sustainable cocoa farms under BT P&C participate in BioTrade activities, starting (CORPEI/MAE, 2014). in early 2000 with the Ecuadorian
Cocoa fino de aroma © UNOCACE Figure 4.6 New York Stock Exchange price versus UNOCACE’s producer price at farm (January 2013 to June 2016)
© Freddy Cabello
49 20 years of BioTrade © UNOCACE © Robert Gibson
Accessing international cocoa from cocoa surpassed US$749 million • Identifying and implementing markets (260 540 metric tons) and employed mechanisms to provide a stable around 120 000 producer families purchasing price for cocoa producers. UNOCACE is strongly focused on (ANECACAO, 2016). It is also a accessing international markets for its • Establishing commercial and long- pioneer sector as it established the high quality cocoa. It has developed term partnerships with buyers that first Ecuadorian appellation of origin public-private partnerships with value the uniqueness of UNOCACE’s for cocoa “Arriba” in 2008. UNOCACE European chocolate manufacturers, social and environmental cocoa and other producers and sector which recognize the uniqueness of its beans. However, it is important to associations supported UNCTAD and cocoa developed under environmentally diversify buyers, to avoid dependence the Ecuadorian BioTrade Programme and socially responsible practices. and minimize risk. UNOCACE has in the two-year process to gain the been working on this point, and Currently, one of the main markets appellation (Jaramillo, 2012). has accessed new markets such as accessed is the Swiss chocolate It is important to foster and create Canada and also has six new buyers, industry, which captures 60 per cent of policies that improve the productive resulting from BioTrade support UNOCACE’s production with a premium practices of cocoa farms and develop (CORPEI/MAE, 2014; CAF, 2014). price (free on board) of over US$1000 policies to upscale and support per metric ton. This has enabled cocoa • Implementing strategies to environmentally and socially responsible farmers to earn a stable income and diversify product ranges, for cocoa farms which may also improve price, avoiding the normal shift in instance developing value added cocoa production systems. This is prices related to commodities. In many (e.g. cocoa liquor and nibs). illustrated in the UNOCACE experience cases, cocoa farmers receive an even which is significantly improving the • Formulating and implementing higher price than that stated on the livelihoods of cocoa producers and strategies on an ongoing basis to New York Stock Exchange, a situation implementing biodiversity-friendly enhance the income of associated not normally seen in the Ecuadorian systems (e.g. agroforestry). producers, i.e. by identifying niche cocoa sector or other cocoa producing markets for other products produced Another important aspect is to identify countries. on their farms and increasing niche markets for associated species In 2015, the difference on the price their value added through agro- found on cocoa farms and their derived paid to cocoa farmers and the stock industrialization. industrialized products. This will further exchange price resulted in an additional increase the producer families’ incomes income of approximately US$235 000 and cash flow. (Figure 4.6). This continues to motivate UNOCACE members to implement Other recommendations that can also projects that enhance the quality and enhance market access for small cocoa productivity of the cocoa farms while producers are: working under BioTrade Principles. • Knowing your target markets and consumers so that the product and Recommendations for enhancing your business model match consumer markets for associations of small expectations. cocoa farmers in Ecuador • Enhancing the quality of the Cocoa is a strategic economic sector product is an ongoing task, and for Ecuador because it represents a should be combined with social major source of export revenue and and environmental considerations employment. For 2015, export revenues throughout its value chain.
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Novel food regulation: Beyond a technical protocol? 4.5 Sacha inchi oil (Peru)
In 2013, four Peruvian sacha inchi firms joined efforts to overcome one of the most important trade barriers to accessing the European market for natural products: the authorization as a novel food. This is a considerable milestone and has led to increased integration of this value chain; yet steps to enhance its governance are necessary.
Background PerúBiodiverso (co-financed by SECO and German Development Cooperation, Nathalie Gil, Plukenetia volubilis L., commonly Technical Advisor implemented by GIZ), promoted its known as sacha inchi, inka peanut PerúBioInnova; development (Box 4.2). Also, during or just inka nut, is a wild oleaginous, Lena Katzmarski, the first stage of UNCTAD’s BioTrade climbing plant native to the Amazon Principal Advisor Facilitation Programme (2003–2008), region. In Peru, it is naturally distributed PerúBioInnova, sacha inchi was a priority value chain in the Amazon regions of San Martín, with the support selected to implement the BT P&C. of Manuel Rojas, Ucayali, Huánuco, Amazonas, Madre de Technical Advisor Dios and Loreto. Peruvian indigenous On the international market, sacha ProAmbiente, GIZ communities have recognized the inchi vegetable oil is considered a true Peru exceptional properties of sacha inchi for “superfood”, being one of the richest centuries, and use it for cosmetics and sources of omega-3 fatty acids and health purposes (IIAP, 2016). it contains high amounts of protein, fibre and antioxidants (Flores and During the last decade, sacha inchi was Lock, 2013). It is used as a dietary domesticated in Peru, and San Martín supplement, especially for vegetarians is the main cultivation area. Initially, and vegans. Sacha inchi is also sold in national and regional authorities, and the form of protein powder and as afterwards BioTrade projects such as a snack.
Box 4.2 The PerúBiodiverso project and sacha inchi
Between 2007 and 2013, the PerúBiodiverso project (SECO/GIZ jointly with the Peruvian Government) continued supporting the promotion of BioTrade in Peru. The project focused, inter alia, on developing the sacha inchi value chain at regional and national levels. It established and institutionalized the regional sacha inchi round table in San Martín; supported three sacha inchi companies through public-private partnerships and accompanied the novel food application process for sacha inchi oil to access to the EU market.
Sacha inchi © Jonas Köppel
51 20 years of BioTrade
“Novel food” as a driver for recognized as an equivalent to round table on sacha inchi, established collective action linseed oil. in 2006, initially served as a negotiation platform for producers’ organizations Currently, more than 50 Peruvian The first step to obtain the novel and firms in San Martín. Later, this firms export sacha inchi products food authorization was establishing round table provided the ideal space in the form of oil, powder, snacks or a multisectoral technical committee, for the articulation of the regional actors seeds to the United States of America, comprising PROMPERU, the Ministry (producers, firms, universities) during Europe and several Asian countries, of Foreign Trade and Tourism the preparation of the dossier. attaining different market segments (MINCETUR), the National Sanitation (conventional, organic). Exporting firms Authority, and the Peruvian Institute In September 2014, all these efforts identified the EU market as particularly for Natural Products. It was supported culminated in a favourable opinion by promising for this natural ingredient. by the project PerúBiodiverso. The the FSAI on the equivalence of sacha Yet, in order to access it with processed commission’s task was to rigorously inchi virgin oil to linseed oil, allowing the sacha inchi products such as oil or collect and systematize the required four Peruvian firms to export their oil to powder, the exporters are faced with scientific information on sacha inchi the EU. PROMPERU, with the help of a market requirement: the EU NFR No. (taxonomic description, distribution, PerúBioInnova (co-financed by SECO 258/9721 that acts as a barrier. phytochemical information) to develop and German Development Cooperation, the dossier on its oil, which was to be implemented by GIZ), documented this In order to enter the EU market with submitted to the FSAI. experience in a manual for Peruvian sacha inchi oil, four Peruvian firms firms preparing the novel food dossier (Agrodindustrias Osho SAC, Amazon Other existing platforms were also (EU regulation 258/97), before the new Health Products SAC, Roda Selva crucial for obtaining the novel food regulation enters into force (Box 4.3). SAC,22 Olivos del Sur SAC) – all authorization. At the national level, working under BioTrade Principles – the BioTrade Research and Innovation submitted an application to the Food Group (GIIB), formed in 2008, was Safety Authority of Ireland (FSAI). the nexus between the participating Exporting firms universities and the private sector. This application was for substantial identified the EU equivalence of their sacha inchi virgin Jointly with the Cayetano Heredia “ oil (from Plukenetia volubilis L. seeds) National University, the GIIB developed market as particularly to “Inca inchi” virgin oil derived from the sacha inchi oil nutritional promising for this the same plant which is already sold composition information – the basis natural ingredient... in the EU market. The latter has been of the dossier. At the regional level, the
Box 4.3 New EU regulation on Sacha inchi products © PROMPERU novel foods
In November 2015, the EU adopted a new regulation on novel foods (2015/2283) that aims to centralize the authorization procedure and covers additional products to those in the previous regulation. The European Food Safety Authority will be responsible for the scientific risk assessment. Under this new framework, the authorization procedure for a novel food should be reduced from about three years to 18 months. It facilitates access to the EU market for traditional foods from non-EU countries having a demonstrated history of safe food use (safe consumption of this novel food by a significant number of the country’s population for at least 25 years). Although the aim is to simplify the application process, EFSA draft guidance documents suggest that scientific analyses for the dossier will be more exigent. The regulation comes into force on 1 January 2018.
Source: European Commission, 2016.
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Processing of sacha inchi © GIZ
Positioning sacha inchi Table 4.1 Peruvian exports of sacha inchi oil to the EU market (US$) Before 2013, it was widely agreed among public institutions such as Company 2014 2015 Trade evolution PROMPERU, and sacha inchi firms, that the novel food authorization would Amazon Health US$133 399 US$182 942 37.14 per cent open up promising market opportunities Products SAC for Peruvian firms. Yet, according to Agroindustrias US$195 108 US$181 697 -6.87 per cent official statistics, sacha inchi oil exports Osho SAC have not increased since approval. One firm was able to increase its exports; Source: PROMPERU, 2016. two other firms (Roda Selva SAC and Olivos del Sur SAC) are no longer exporting (Table 4.1). Although it is too early to finally the novel food authorization can be Led by the public sector and assess the impact of the novel food considered a significant milestone. implemented in coordination with authorization, there are concerns about The multisectoral committee enabled the private sector, a long-term the future of the Peruvian sacha inchi collective actions and generated trust competitiveness strategy for sacha oil value chain. First, several Asian between the parties, and disseminated inchi must be developed to enhance countries have developed long-term the rules of this market requirement. this value chain and capture EU market strategies to provide sacha inchi and its Currently, such collaborative efforts are opportunities. Additionally, efforts derivatives to the international markets, needed. should continue to foster R&D in order presenting fierce competition to the to support innovation in production and Governance was particularly “original” Peruvian sacha inchi. Second, transformation stages, to implement important for the creation, transfer Peruvian stakeholders have shown efficiency indicators and to protect and dissemination of the knowledge very slow reaction in capturing the biodiversity. Finally, processes to certify generated, yet lost its importance opportunities arising from accessing the the origin or the creation of a collective when authorization was obtained. EU market for this product. brand have to be initiated in order Hence, further efforts should focus to position the Peruvian sacha inchi Certainly, reaching consensus among on strengthening the value chain’s products in niche markets. the main players responsible for governance.
53 20 years of BioTrade 4.6 When all that is needed is a little push (Viet Nam) Going natural is a worldwide trend that sparks many opportunities for suppliers of natural ingredients. Coming from a country rich in biological resources that can be used as natural ingredients, Vietroselle found itself in a place where they just needed a little help to seize success.
Introduction: The dedication of now a recognized supplier in the natural Linh Nguyen, a Vietnamese small business to herbs sector. Communication reach big markets Foreseeing the inevitable trend for Officer, BIG It was a hot sunny day in May when quality, Vietroselle started implementing Lam was watching trucks loaded with international standards to their diep-ha-chau (phyllanthus amarus) cultivation and production processes. leaves coming in through the gate. They and their technical staff Looking up at the burning sun, he felt researched all aspects, from the basics lucky that diep-ha-chau could be sun like which fertilizers to use, how much dried today instead of machine dried, water to provide, to how to document saving his company a lot of energy. the process; until they could develop “The heat of the middle of Viet Nam standard cultivation procedures for is not always bad after all”, he said every herb they had. Training farmers (personal communication with Hoang on these procedures was not easy as Xuan Lam, Director, Vietroselle). they were used to their own practices. Lam together with his wife, Tuyet-Anh, The hard work paid off when Vietroselle own Vietroselle, a company specialized established a contract with international in providing natural herbs as ingredients buyers from Europe, Japan and Taiwan, for the pharmaceutical, food and Province of China, even though the cosmetics industries. Founding the move to high quality considerably company back in the 1980s, they took raised their manufacturing costs and small steps in cultivating natural herbs their prices. Some of their products by cooperating with local farmers. even exceeded the buyers’ quality Working hard to earn the trust of requirements, motivating buyers to pay the farmers and to obtain their first a higher price than initially offered. At purchasing contracts, Vietroselle is the time, Vietroselle decided against
Working hard to earn “the trust of the farmers and to obtain their first purchasing contracts, Vietroselle is now a recognized supplier in the natural herbs sector...
Diep-ha-chau (phyllanthus amarus) © BIG
54 Chapter IV. BioTrade and markets establishing a domestic network as they cannot produce. Consequently, need to strengthen their distribution most local manufacturers preferred low a mechanism for trading among channels to reach more customers. priced imported ingredients from China, BioTrade companies was facilitated More importantly, their competitive and 80 per cent of its revenues came for the first time. edge of certified standards compliance from exports (Ta, 2013). will add no value if customers do not understand the meaning. Much more Vietroselle was involved since the Upscaling Vietroselle: Next steps dedication and investment are required beginning of the UNCTAD/SECO In 2015, Vietroselle obtained WHO to raise awareness of Vietnamese funded BioTrade project developing of GACP certification for the cultivation of consumers and the sector about the BioTrade activities within the natural diep-ha-chau and UEBT membership, advantages of their products and about ingredients sector in Viet Nam. Given which enhanced its competitive edge. BioTrade, which Vietroselle cannot do Vietroselle management’s commitment With its own funding, Vietroselle is alone. Through BIG, Vietroselle will to sustainability and its business now committed to implementing both join efforts to improve the sustainable potential, the company’s diep-ha-chau of these certifications in other value sector in general; and hopefully, over supply chain was selected as a pilot chains. Also, the skills acquired during time, raise Viet Nam’s profile globally project. Firstly, Vietroselle received the training under the BioTrade project in this important arena. They also aim technical assistance to obtain WHO enhanced their skills and confidence to mobilize the government and other GACP certification; and for gaining to proactively seek new contracts stakeholders to join their dream. membership of UEBT. Secondly, the instead of passively waiting to be company was trained in a variety contacted by buyers. Additionally, the of topics, including marketing, manufacturers’ forum was formalized communication and trade promotion. into a platform called the BioTrade Thirdly, Vietroselle and other companies Implementation Group (BIG), which were supported to participate in created opportunities for Vietroselle to relevant national and international become a supplier for several domestic trade fairs. Last, but not least, the manufacturers. Consequently, most BioTrade project initiated a forum for of Vietroselle’s products are now sold manufacturers to get together and domestically, representing around constructively discuss issues and ideas. 80 per cent of their sales, while their The project involved 10 pioneering exports also have grown but at a companies working with herbal slower rate. As a result of the BioTrade medicines/ingredients and accounting project, Vietroselle’s sales increased for about 80 per cent of domestic four times in just three years between market share. These companies 2012 and 2015 (HELVETAS Swiss discussed their own strengths and Intercooperation Viet Nam, 2015). weaknesses, and planned for their own as well as the sector’s development. The future looks very bright for Now, the manufacturers no longer Vietroselle, but there are still plenty of consider each other as rivals, as in the tasks to undertake. As their sales are past, but as suppliers of ingredients growing in the national market, they
Vietroselle and other Vietnamese companies at an international trade fair © BIG
Lam and Tuyet-Anh in their factory © BIG
55 20 years of BioTrade
Partnerships
Developing partnerships is essential to achieving sustainable development, and addressing emerging issues that have an impact on biodiversity and BioTrade. 5 For instance, partnerships can help address new developments in MEAs (such as the Nagoya Protocol), the SDGs, peacebuilding, and accessing international markets (e.g. trade agreements, NTMs, commercial partnerships, etc.). This section provides examples of partnerships being established by a variety of stakeholders with the aim of promoting the sustainable use of biodiversity and/or BioTrade. It includes examples from Asia, Africa and Latin America across a variety of sectors.
Partnerships: Case studies and their contribution to the Aichi Targets and SDGs
Sustainable Development Case studies Aichi Targets Goals
5.1 The role of partnerships in unlocking BioTrade potential 5.2 The BioTrade Initiative and CITES 2, 4, 12, 13, 19 1, 2, 12, 15, 17 5.3 BioTrade – a resilience-building 2, 4, 19 1, 2, 8, 9, 10, 11, 12, 15, tool: Helping states fulfil the pledge 16, 17 of leaving no one behind 5.4 Vision matters: BioTrade 1, 4, 16, 19 8, 9, 15, 17 implementation (Viet Nam) 5.5 Biodiversity-based businesses: 2, 4, 7, 16, 18, 19 1, 2, 8, 9, 12, 15, 17 Leveraging new ecological economies 5.6 Enhancing the sustainability of 2, 3, 4, 6, 13, 19 1, 2, 9, 12, 15, 17 the python skin trade through innovative partnership
© Fotolia: pict rider 56 Chapter V. Partnerships 5.1 The role of partnerships in unlocking BioTrade potential The governance of biodiversity-based endeavours, including BioTrade, requires the orchestration of diverse actors and multi-level incentives in terms of regulation, finance, technology and capacity building. In a scenario of growing demand for biodiversity-based products and services, partnerships will play an important role in further strengthening frameworks, mechanisms and networks to scale up BioTrade, from both supply and demand sides.
Introduction civil society (including NGOs, think Paulo Branco, Vice tanks and academia), and indigenous Coordinator; Lívia BioTrade reflects many of the most and local communities in a common Menezes Pagotto, complex challenges society faces framework aiming at putting biodiversity Researcher; today, especially in natural resource- and livelihoods at the heart of trade Mario Monzoni, based developing economies. It can agendas and increasing the likelihood Coordinator; Daniela be of great value in overcoming the Gomes Pinto of achieving the SDGs. , persistently incentivized misalignment Researcher, Center between sustainable use of natural In a scenario of growing demand for Sustainability Studies/Fundação resources and economic growth, rural for biodiversity-based products Getulio Vargas development and international trade. and services (UNCTAD, 2013) and It is amidst these challenges that many increasing pressures on natural opportunities for BioTrade lie. In seizing resources (UNEP, 2012), partnerships these, BioTrade can contribute to will play an important role in further unlocking long-term development in line strengthening governance frameworks, with the 2030 Sustainable Development mechanisms and networks to scale up Agenda and SDGs (12, 15 and 17) the BioTrade agenda, from both supply (UNCTAD, 2015a; UNCTAD, 2016a). and demand sides. Therefore, further In this context, partnerships are being advancements may be reinforced recognized as a fundamental element in terms of regulation, governance, to foster cooperation among actors finance, technology and capacity for achieving all SDGs.23 Similarly, building to foster the climate for Partnerships: Case studies and their contribution to the Aichi Targets and SDGs partnerships will play an important common solutions. role in BioTrade initiatives. From the regulatory framework perspective, partnerships between governments, the private sector and BioTrade reflects many civil society are essential for enhancing “of the most complex BioTrade-related international trade challenges society and MEA implementation at national faces today, especially level (Chandra and Idrisova, 2011). This in natural resource- means that all countries can implement the appropriate policies, mechanisms based developing and institutional architecture for taking economies... advantage of BioTrade opportunities. Partnerships are also key for enabling multi-level and multisectoral governance dedicated to more innovative, inclusive Orchestrating the governance and participatory arrangements of BioTrade (including market-based, self-regulation The governance of BioTrade, and and/or co-regulation) (Hepburn, 2006). biodiversity-based endeavours, requires This may enhance the already existing orchestration of diverse actors and set of environmental, social and multi-level incentives due to its value economic sustainability criteria that chains and characteristics (Becerra, guides the commercialization of bio- 2009b). This means engaging public based products and services such as organizations (at international, national BioTrade (UNCTAD, 2007a). and subnational levels), private sector – The financial system may be of ranging from transnational corporations great value in two ways. Firstly, by (TNCs) to SMEs – development banks, freeing access to finance to enhance 57 20 years of BioTrade processes, equipment and facilities and to develop value added products in compliance with market requirements. Secondly, by providing market information, guarantees and loans suitable to SMEs’ needs, on one side, and TNCs, on the other, in favour of more equitable value chains (Jaramillo, 2012; Klein et al., 2014). Lastly, the implementation of measures towards capacity building for enhancing supply chain management under social and environmental concerns, technological development and data and monitoring, may greatly contribute to innovative arrangements in order to strengthen BioTrade practices across sectors and among countries while conserving nature.
Partnerships as challenges and opportunities for BioTrade Existing experiences from developing and developed countries highlight the importance of building partnerships when dealing with biodiversity and BioTrade, as a means to match societal demands, priorities and expectations towards sustainable development. More specifically, BioTrade initiatives require more than “one size fits all” solutions. They mobilize a broad number of stakeholders in view of the need to capture different approaches, knowledge and expertise, such as entrepreneurship, innovation, value chain and ecosystem thinking, while considering the local circumstances of beneficiaries. In this context, partnerships are fundamental for a global BioTrade strategy that fosters economic growth and reinforces intergovernmental commitments (e.g. CBD and CITES) and, at the same time, contemplates development opportunities for local communities from developing countries based on the sustainable use of biodiversity. In a globalized world where everyone has the right to have a say – from natural resource-based traditional communities to consumers – collaboration via partnerships will be crucial for addressing emerging issues that will impact the biodiversity- based and BioTrade global scenario. © Fotolia: bannafarsai
58 Chapter V. Partnerships 5.2 The BioTrade Initiative and CITES CITES Secretariat and UNCTAD’s BioTrade Initiative have a long-standing collaboration starting in 2001 and formalized by a memorandum of understanding (MoU) in 2010. This article presents selected experiences developed to conserve CITES-listed species, improve livelihoods of the poor in remote and marginal areas, and promote opportunities for businesses that comply with CITES requirements in Latin America, Africa and Asia.
CITES and BioTrade: A long- encourage consultations between Johannes Stahl, standing partnership BioTrade focal points and CITES Scientific Support authorities when including species listed The cooperation between the UNCTAD Officer for Fauna; in the CITES Appendices in national BioTrade Initiative and the CITES Tom De Meulenaer, BioTrade programmes. The BioTrade Chief, Scientific Secretariat started in 2001 with the Initiative and the CITES Secretariat Services Team; general objectives of enhancing the also cooperate in facilitating capacity- Haruko Okusu, conservation of the CITES-listed building in developing countries on Chief, Knowledge species, improving livelihoods of issues relating to the organization Management and poor people in remote and marginal Outreach Services, of the value chain for species listed areas that harvest and trade these CITES Secretariat under CITES. species, and promoting opportunities for businesses that comply with CITES requirements and national Projects and achievements legislation. Identifying and promoting Since 2001, several CITES Parties, economic incentives for the sustainable including the Plurinational State of management of, and trade in, CITES Bolivia, Colombia, Ecuador, Peru and Appendices II- and III-listed species, Uganda, have selected CITES-listed and ensuring that benefits are shared species as a component of their with local communities, are of major national BioTrade programmes.24 These importance in this cooperation. Parties have received strong assistance In order to formalize and strengthen this from UNCTAD for conducting wildlife cooperation, UNCTAD and the CITES trade surveys, developing adequate Secretariat signed a MoU in 2010. As CITES-implementing legislation and part of the MoU, the CITES Secretariat making non-detriment findings for trade works with the BioTrade Initiative to in selected species. © Fotolia: Franck Monnot
59 20 years of BioTrade
As a result of ongoing cooperation, commissioned a scoping study on handbook to assist Parties to undertake CITES requirements have been traceability systems for international a rapid assessment of the effects of incorporated in UNCTAD BioTrade trade in South-East Asian python the application of CITES decisions on procedures, such as the selection skins, which analysed existing marking livelihoods in poor rural communities, of product groups and value chains, and tracing systems, and options for and to consider how to mitigate any and the development of tools for an economically feasible traceability negative effects. engagement of the private sector, etc. system that can confirm the legal The topics of traceability and livelihoods UNCTAD BioTrade also developed, origin of snake skins. The study were discussed in detail at the in close cooperation with the CITES findings formed the basis for specific upcoming 17th meeting of the CITES authorities in selected countries in recommendations to the CITES Animals Conference of the Parties (CoP17, which it operates (i.e. the Plurinational Committee and Standing Committee. Johannesburg, September–October State of Bolivia, Colombia, Ecuador, In 2015, the BioTrade Initiative started 2016). It is expected that these issues Peru and Uganda), guidelines for the a project to look into the traceability will gain further momentum following sustainable management of wildlife of CITES-listed medicinal plants in CoP17, as more generic traceability products for enterprises engaged in the Greater Mekong subregion, and advice will be developed, and an wildlife trade. In Peru, for example, of ornamental plants in the Andean increasing number of countries and these guidelines were focused on subregion. stakeholders will focus on collecting Arapaima gigas (UNCTAD, 2007b; The main thrust of CITES is to ensure evidence for potential impacts on 2007c). that international trade in listed species livelihoods of CITES-listing decisions, Furthermore, the BioTrade Initiative is sustainable, legal and traceable. while also exploring the opportunities supported a number of studies on The partnership with the BioTrade of sustainable income and resources CITES-listed species to strengthen Initiative allows Parties to explore provision through long-term species their sustainable management by local practical examples and best practice conservation strategies. stakeholders. Research involved, inter on how to work with various value In a broader context, the approach alia, Caiman yacare in the Plurinational chain partners to maximize benefits followed by the BioTrade Initiative State of Bolivia; Arapaima gigas in Peru; for rural communities from such legal, has demonstrated that species vicuñas in the Plurinational State of sustainable and traceable trade in conservation and poverty reduction can Bolivia and Peru; orchids in Colombia CITES-listed species. be delivered together. For this reason, and Peru; and wildlife trade in Uganda, the BioTrade Initiative has been, and will focusing on birds, reptiles, insects and continue to be, a key partner for CITES. amphibians. The BioTrade Initiative Challenges and opportunities also sponsored joint workshops on the ahead sustainable trade in Arapaima gigas, Parties to CITES have been advancing Caiman yacare and turtles. discussions that touch upon the areas of cooperation between CITES and The BioTrade Initiative and CITES the BioTrade Initiative. These include are also cooperating in the field of the development, implementation and traceability of specimens of CITES- improvement of traceability systems listed species in international trade. In for CITES-listed species, and work this context, in 2013–2014, they jointly on livelihoods. The latter resulted in a
The main thrust of “CITES is to ensure that international trade in listed species is sustainable, legal and traceable...
Bletia catenulata © MINAM
60 Chapter V. Partnerships
BioTrade – a resilience-building tool: Helping states fulfil 5.3 the pledge of leaving no one behind
BioTrade has the potential to bring trade and investment to biodiversity-rich countries affected by conflict and displacement. It can be a tool to increasing the economic self-reliance and resilience of displaced persons and host communities while safeguarding biodiversity.
Background and local communities revive local Glaucia Boyer, economic activity. Together they sought A UNDP-UNCTAD BioTrade Policy Specialist, to develop value chains of culturally collaboration was initiated in late UNDP significant products for marginalized 2010 within the framework of post- groups, including women. Nutmeg conflict peacebuilding efforts when the (Myristica fragrans Houtt), or pala in United Nations was supporting the Bahasa Indonesia, was the native implementation of a number of peace species selected because it formed part agreements. It complemented initiatives of the biologically diverse forest gardens to reintegrate large groups of returning that had belonged to the Aceh Selatan conflict-affected groups, such as ex- communities for generations. The crop combatants and associated groups, had suffered considerable deterioration internally displaced persons (IDPs) and during the war and had a promising refugees. Several post-conflict countries market demand. Several products in Africa, Latin America and Asia have made from the nutmeg fruit and seed, ecosystems that are rich in biodiversity. such as candies and syrup, spice Their natural resource sector offered and essential oil, had the potential to enormous potential for generating generate income again, improving the attractive jobs and income generation livelihoods of communities, as explained opportunities for returnees. in Box 5.1 (Jaramillo, 2016b). BioTrade as a peacebuilding tool Technical assistance to strengthen was therefore tested in Aceh Selatan, the nutmeg value chain included the Indonesia, where UNDP partnered establishment of Forum Pala and a with UNCTAD to help the government producers’ cooperative able to access potential buyers and connect to domestic and international markets. Such interventions demonstrated how the rich biodiversity available could contribute to the livelihoods of marginalized groups and in the recovery of communities in an economically, socially and environmentally sustainable way. The approach also helped increase social cohesion through dialogue and trust building among key stakeholders. Lessons included the importance of engaging the private sector dependent on biodiversity products early on to best address sustainability issues and capitalize on investments they were able to make.
Upscaling the UNDP-UNCTAD collaboration Although peace agreements are still negotiated today, as recently seen in Colombia, the Philippines and Myanmar, “never-ending conflicts and large numbers of semi-permanent refugees” © UN Photo: Tim McKulka
61 20 years of BioTrade
Box 5.1 The UNDP-UNCTAD project in Indonesia (2010–2011)
The UNCTAD-UNDP project on was one of the major concerns reintegration and livelihood recovery BioTrade in Aceh Selatan began in prioritized during the assessment in Aceh Selatan. Forpala has emerged 2010, to complement economic phase and actions were developed as an organization that now leads the reintegration support for women to tackle this issue. Other key issues development of nutmeg in the Aceh ex-combatants and conflict- considered were the organization of Selatan. Forpala continues to operate affected communities. BioTrade the sector through the creation of the even after the conclusion of the concepts and methodologies were nutmeg forum (Forum Pala or Forpala) UNDP-UNCTAD project over five years used to contribute to practical and cooperative; enhancement of ago. Currently, financial and technical and environmentally friendly the quality of nutmeg and its derived support to Forpala is being provided socioeconomic alternatives for products; and an increase in product by the United States Agency for generating employment and income diversification (UNCTAD, UNDP, International Development Indonesian based on the sustainable use of UNEP, 2010). Access to markets Forestry and Climate Support project, nutmeg and the commercialization was also a key concern in the project together with local government of its derived products (Ruhanawati, implementation, where contacts and cooperation. 2012). cooperation were made with global For further information on project leaders in the fragrance and flavour As part of the project, constraints implementation and lessons industry (as potential buyers), import that limit the development of the learned, see Jaramillo, 2016b promotion initiatives, market experts value chain were identified jointly (available at: http://unctad.org/en/ and other stakeholders who were part with all the value chain actors, PublicationsLibrary/ditcted2015d6_ of UNCTAD’s BioTrade network. including grassroots communities, en.pdf). traders, industries, government, The project opened up opportunities Source: Extracts from Jaramillo, 2016b. academia and NGOs. The nutmeg for implementing integrated crop’s exposure to pests and diseases approaches on environment, peace,
Nutmeg fruit, sweet and a woman collector in Aceh district © L Jaramillo
from Afghanistan, Islamic Republic of Host governments and local authorities Development actors have therefore Iraq, Somalia, Syria and many other are increasingly faced with the reality gained a more prominent role over countries have become more frequent. of having to accept that many of the past years, so humanitarian funding Humanitarian responses also end up displaced will not return home either can be phased out and channelled becoming protracted and care and because conditions for return do not again primarily to new emergency maintenance systems insufficient exist or because after so many years, settings. Development agencies have and inappropriate for dealing with the host countries and communities increasingly assisted national actors to increasingly urban displaced population. themselves have become the migrants’ integrate solutions to displacement in Lacking solutions, refugees and IDPs new home. In this new context, the national strategies and plans. Because either have to become, de facto, locally pressure is on humanitarian agencies the needs of IDPs and refugees are integrated or have no choice but to to work differently and jointly with invariably indistinguishable from those move forward as “migrants”. Large development actors from the beginning of their vulnerable hosts, programmes regional movements of migrants and to enhance the displaced persons’ and have tended to target these groups refugees to Europe and other parts of their hosts’ own coping mechanisms. jointly. Addressing displacement is the world have brought international Open ended external humanitarian aid increasingly understood in the context consensus around the need to adopt is expected to give way to investing of broader national and regional poverty comprehensive international responses in the resilience of displaced persons, and development strategies and that also address the root causes communities, institutions and systems. systems. (UNGA, 2016, §12).
62 Chapter V. Partnerships
Achieving economic self-reliance and livelihoods solutions for displaced persons has become a must, including in refugee-hosting countries. Constraining environments are turning into conducive spaces for economic activity in Colombia, Jordan, Kenya, Turkey, Uganda, United Republic of Tanzania and Zambia. Access to work permits and the possibility to jump- start small businesses need to be supported by increasing access to credit and markets. BioTrade can also complement these resilience-building efforts as part of the comprehensive solutions led by development actors in displacement contexts that are also biodiversity rich. It can help move away from the aid-centric view of livelihoods that does not recognize the agency and capacities of displaced persons. BioTrade can be a vehicle for improving the livelihoods of displaced populations and host communities while conserving the environment, in line with Agenda 2030 and the SDGs. UNCTAD can play a role by connecting the local and international markets for biodiversity goods and services sustainably produced by the displaced and their hosts. The question is to find the right mix of policy interventions to lead to greater self-reliance and income generation, favouring tax returns in the medium term as well as economic growth and development in the long term. Development actors can assist governments in identifying the right policy mix, as well as contributing to the implementation and monitoring on the ground of relevant strategies and programmes. They can also help devise the right set of cross-sectoral measures that can build resilience among the poorest and excluded displaced persons and members of host communities, so no one is left behind. The Solutions Alliance on Ending Displacement25 is looking at very concrete ways of engaging the private sector in this effort (Solutions Alliance Secretariat, 2016). It provides an entry point for action. Integrating companies owned by displaced persons into the value chains of larger companies is one practical area for the UNCTAD BioTrade Initiative to engage in biodiversity-rich countries, such as Uganda, United Republic of Tanzania and Zambia, where national groups have been formed. © UN Photo: Eskinder Debebe
63 20 years of BioTrade 5.4 Vision matters: BioTrade implementation (Viet Nam)
In Viet Nam, BioTrade is becoming familiar to many players in the natural ingredients sector. This awareness is the result of three years’ endeavour. Tackling a number of obstacles in a developing country, BioTrade has proven that it is an excellent initiative offering such sectors as natural ingredients a way to sustainably use biodiversity to the benefit of local communities.
Introduction In order to support the Vietnamese Linh Nguyen, natural ingredients sector to address Viet Nam, a tropical country with an Communication these problems and develop it under Officer, BIG Viet Nam extensive coastal area, is a country rich social and environmental principles, in biodiversity. More than 4000 species SECO, approved a three-year project of plants have been found with the “Development of BioTrade activities potential to become ingredients for the with natural ingredients sector in Viet food, pharmaceutical and cosmetics Nam”. From 2012 to 2015, the project industries (Nguyen and Vuong, 2012). conducted value chain interventions, However, certain challenges limit the including setting up pilot value development of the natural ingredients chains, in which farmers and plant sector, including: collectors were trained on sustainable • Dwindling supply of many wild plants agricultural and collection practices, due to overexploitation; as well as connected to enterprises • Low profit generated by local through supply contracts. Additionally, communities from the sale of their enterprises were given access to plants; capacity building and trade promotion activities to build their brand names and • Limited awareness among local explore markets for their natural origin communities of the importance of products. At the sector level, the project biodiversity conservation; initiated communication platforms to • Volume constraints for good quality raise public awareness on the BioTrade ingredients leading domestic concept, while organizing discussions manufacturers to import from China among enterprises and government or India with unknown origin of agencies to facilitate a more favourable ingredients; and policy environment. • Unclear and complex policies to develop the sector under sustainability criteria (Ninh, 2012).
More than 4000 “species of plants have been found with the potential to become ingredients for the food, pharmaceutical and cosmetics industries...
Dzao farmers picking che-day (Ampelopsis cantoniensis) leaves in Bat Xat, Lao Cai province, Viet Nam © BIG
64 Chapter V. Partnerships
Box 5.2 BIG: Lessons learned, challenges and opportunities
Lessons learned: Inclusiveness, transparency and empowerment are essential to building trust and recognition among partners. Particularly, understanding the individual views of each partner and communicating the gains and challenges they may face as a result of the partnership. This is even more important when setting up partnerships and networks with businesses. Challenges: Limited capacity exists in several stakeholders, including government institutions, BIG in meeting with buyer in Thailand © BIG enterprises and farmers’ groups. Addressing this challenge entails a broader collaboration with all stakeholders to work towards • Formulating and implementing a The BioTrade Implementation a common goal to consolidate strategy to position BioTrade products Group the natural ingredients sector’s in the domestic market, including capacities. Building on the implementation of raising awareness about the BioTrade the BioTrade project and to upscale framework and methodologies to Opportunities: Key players who its activities, four manufacturers of consumers. are leading enterprises in the sector pioneering natural ingredients in Viet have witnessed the feasibility • Supporting BioTrade companies Nam (Nam Duoc, DHG, Traphaco, and effectiveness of the BioTrade exporting to the EU, United States Vietroselle) launched the BioTrade framework and are committed to of America and Japan by developing Implementation Group (BIG) in 2015. play a leading role in promoting the market studies with relevant BIG is also open to other organizations model with the facilitation of BIG research institutes, universities and and companies that aim to support the Viet Nam. development of the Vietnamese natural organizations collaborating with ingredients sector under BioTrade VIETRADE and HELVETAS Viet Nam Principles. It is currently supported on trade fair participation. by HELVETAS Viet Nam and the Viet Nam Society for Medicinal Materials. Lessons learned from developing BIG also cooperates with UNCTAD’s partnerships in Viet Nam BioTrade Initiative, the UEBT, Viet Nam Trade Promotion Agency (VIETRADE), BIG is a newly established organization. and TNCs to broaden its network and However, already there are lessons enhance the impact. learned in this process as well as challenges and opportunities to be BIG aims to become a leading actor faced, as shown in Box 5.2. providing services to support the implementation of BioTrade in Viet Nam, There are many things needed before covering the following areas: achieving the ambitious goal of BIG’s founders namely “international • Advocating with various government recognition for Viet Nam as a supplier bodies at all levels to facilitate an of choice for biodiversity derived enabling policy environment for natural ingredient products – sourced, enhancing the natural ingredients processed and traded in compliance sector and developing high-quality with the CBD objectives and BioTrade value added products in Viet Nam. Principles”. Until then, BIG is committed • Promoting the BioTrade business to help poor communities and model by encouraging companies companies utilize their potential and who source from biodiversity to apply strive toward sustainable growth with it in their business strategies and their sustainably produced products. operations.
65 20 years of BioTrade
Biodiversity-based businesses: Leveraging new 5.5 ecological economies
Groupe Rocher shares its experience based on 60 years of business activity linked to Botanical Beauty® that transformed a poor village in Brittany, France, into a sustainable and prosperous district. This article highlights the geographic and economic diversity of its botanical supply chains worldwide and the way value has been created locally thanks to partnerships and access and benefit sharing.
Introduction economic partnership between Claude Fromageot, collectors and the cosmetics brand, Head of Experience shows that biodiversity creating useful additional income Sustainability; resource flows create environmental for mainly disadvantaged local Anaïs Picard, and social value. Furthermore, the populations. In Madagascar, the Sustainability Project appropriate management of these collection of Centella asiatica by rural Leader, Groupe flows spreads out shared value and populations is supported by providing Rocher generates local development (Souchier, technical assistance and training on 2013). monitoring, traceability, quality and At the beginning of the 21st century, environmental conservation. This the predominant tendency in the activity generates a few hundred cosmetics sector was the use of plants kilograms of plant extracts and and botanical extracts in formulas and creates an additional seasonal increasing communication on their economy, thus starting local value effectiveness in personal care products. creation. As a consequence, numerous botanical • Traditional farming partnerships supply chains were implemented, for agricultural research always associated with micro-projects The cosmetics sector uses classic in sourcing, resulting in limited botanical plant extracts known for specific volume and monetary value creation. properties. Groupe Rocher cultivates Since 2010 and the signature of the several tons of German chamomile CBD’s Nagoya Protocol, an important in La Gacilly, France, annually. A shift towards BioTrade is taking partnership has been set up with place which requires more and more a local technical institute (Instit partnership building and adaptation to Techni Plant Medic Arom) to enable access global value chains. plant breeding, following traditional agronomic analysis. The result is a choice of German chamomile adapted Experience shows to an organic agricultural method that biodiversity and exemplary agro-ecology model “ with over 200 beehives installed on resource flows create 55 acres of flowers. Additionally, environmental and a local study on biodiversity social value... management has been conducted. A very strong local anchorage and partnerships with several local and regional stakeholders have created Fostering partnerships – selected benefit sharing on the social and Groupe Rocher case studies environmental sides. For instance, A range of case studies follow outlining eight industrial facilities of Groupe botanical sourcing examples around Rocher covering over 69 hectares of the world and the reasons behind the land followed site assessments with different partnerships developed: the NGO Ligue de Protection des • Picking partnerships to enhance Oiseaux (French equivalent of Bird Life livelihoods of local communities International), in order to draw up five- The cosmetics sector often depends year ecological management plans to on local communities’ parsimonious favour local biodiversity. plant picking. Punctual and seasonal collection of plants generates an
66 Chapter V. Partnerships
• Collective farming partnership for partnership with the Tahitian Monoï Rocher comes from Madagascar, enhancing territorial development botanical supply chain (coconut oil with the instrumental support of the Collective farming is often used and tiare flower), which includes the Protocol’s local focal point, Naritiana for botanical resources involving purchasing of many tons of plants Rakotoniaina. A PIC/mutually agreed communities over a wide territory annually. Maintaining its purchasing terms (MAT) was signed in 2015 requiring transformation practices. volumes over time despite variable concerning the Madagascan plant Volumes are more significant, with annual product turnover plays a Sigesbeckia orientalis. A partnership many tons of raw material per significant role in the valorization with the University of Antananarivo cooperative being produced. With the and preservation of the local brand was established and two students example of shea butter in the south “Monoï”, and of the traditional cultural were supported for a year to develop Sahel region in Africa, a local active heritage and knowledge locally. an ecological study of the plant, using trade network has been created identification and cartography methods. According to Groupe Rocher, ABS involving numerous stakeholders. Furthermore, the research information can also be considered as a collective It organizes pressing, storage, was shared in order to develop local commitment of actors contributing to traceability, etc. Local benefit sharing knowledge on the plant. Additionally, apply the Nagoya Protocol principles includes the active participation tools and processes have been and the development of partnerships of women’s groups in the initial provided to the local SME in charge is a means to achieve it. The members preparation and quality storage of of the plant’s harvest and preparation. of the Natural Resource Stewardship shea nuts, creation of support centres Such support for a local partner Circle – the major actors from the for women’s cooperatives, resource was established to help the local beauty industry (cosmetics, perfume, conservation and organic certification firm develop its know-how, become ingredient suppliers) – initiated training, quality and management autonomous and enhance its expertise discussions on ABS in 2010. They programmes and valorization of TK on (with a new research laboratory and interact directly with representatives shea butter cultivation. up-to-date equipment for instance), and of indigenous peoples from all over foster local transformation for additional • Agri-business partnerships the world, with the support of the onsite added value. to enhance local culture and NGO Tribal Link Foundation. Specific traditional knowledge guidelines have been developed and Agri-business are generally presented at several CBD COPs, considered an agricultural activity UNCTAD Business and BioTrade relying on a large organized network, forums, and to Braulio Ferreira de with many local stakeholders Souza Dias, CBD Executive Secretary, contributing to sales, marketing, in Montréal. export, supply chain management, A very concrete experience of etc. Groupe Rocher’s purchasing the Nagoya Protocol for Groupe department has developed a
Shea nuts harvest © Dominique Rolland
67 20 years of BioTrade
Key lessons and • Challenge the local partner on In conclusion, long-term partnerships recommendations in developing environmental and social issues with local stakeholders create a unique effective partnerships so they can achieve continuous opportunity for added shared value, improvement by integrating these contributing to a new ecological Based on the cases presented, key issues into their business practices. economy, based on local and factors for successful partnerships are: sustainable micro-projects. We could • Rely on a multi-stakeholder internal • Work with a variety of actors with therefore say that BioTrade businesses committee associating legal, local anchorage in order to create are drivers of a new model of ecological purchasing, research, marketing and a local network. economy. communication, and sustainability • Favour micro-projects, small actors departments in order to provide and partners in order to optimize the technical assistance and support to impact locally. the different projects implemented by a company, group or association. • Support partners and encourage them to maintain their autonomy from • Focus on concrete actions in the the beginning of the project; identify field for developing benefit sharing the local impacts generated and schemes and promote empowerment extend benefit sharing. of local stakeholders. • Create win-win inclusive projects • Rely on MEAs’ local focal points for where all stakeholders benefit global coordination of the relations from and actively participate in and interactions with national the partnership. authorities.
Matricaria chamomilla harvest © Franck Bel
68 Chapter V. Partnerships
Enhancing the sustainability of the python skin trade 5.6 through innovative partnership
In November 2013, the IUCN, ITC and the French luxury group Kering, formed an innovative partnership to improve sustainability within the international trade in python skins. The success of the partnership, and its challenges and achievements, offer powerful lessons for future partnerships in the realm of BioTrade.
Python Conservation Partnership concerns have been raised about the Daniel JD Natusch, sustainability (biological, economic, Imagine waking at night to the sound Python Conservation social and ethical) of such utilization, of dogs barking, to find the world’s Partnership (PCP) and its impacts on the conservation of largest species of snake consuming Project Coordinator, the species. Finding a balance between IUCN SSC Boa and your family’s pet goat. Or imagine falling python conservation and the economic Python Specialist to sleep each night surrounded by aspirations of the people using them Group, NSW enclosures occupied by giant pythons can be challenging, particularly given Australia you have raised since birth. For some uncertainties inherent in dynamic natural this sounds like a horror story, but these systems. One of the major problems are common situations for many people has been that we simply didn’t know living in South East Asia. Those wild or enough about python biology, ecology captive-bred snakes are sold to small and trade to make informed decisions. businesses that form part of a global supply chain transforming python skins To address this, in November 2013 into products for the fashion industry. the IUCN (specifically through its Boa Other businesses also utilize different and Python Specialist Group), the parts of the snakes; particularly meat ITC, and the French luxury company for human consumption. In rural areas Kering, teamed up to form the Python of several developing countries, the Conservation Partnership (PCP). The opportunity to use pythons in this way PCP aims to improve sustainability of forms a critical component of many the python skin trade by collaborating people’s livelihoods. with governments, conducting science- based research, and disseminating best The harvest and trade of pythons for practice guidelines to facilitate industry- their skins began in the 1930s, and wide change. today nearly one million python skins (from five species) are exported from Each of the PCP’s members is very South East Asia annually to supply different. IUCN is the world’s largest the trade. Perhaps unsurprisingly, biodiversity conservation organization;
Figure 5.1 Exports of South-East Asian python skins (Python reticulatus, P. molurus bivittatus, P. breitensteini, P. brongersmai and P. curtus) between 1995 and 2013
1 000 000
800 000
ns
sk i 600 000
400 000 python #
200 000
0 1995 1997 1999 2001 2003 2005 2007 2009 2011
Source: UNEP-WCMC-CITES Trade Database.
69 20 years of BioTrade
ITC is a United Nations organization pythons from the wild is sustainable, working to promote sustainable and have identified ways to enhance economic development in developing population management to guarantee economies, while Kering is the parent sustainability into the future (Natusch et company of several brands utilizing al., 2016a; 2016b; Figure 5.2, Box 5.3). python skins in their produce ranges The PCP’s ongoing challenge will be (e.g. Gucci). But why collaborate to to effectively communicate the results improve the trade in pythons? The of its research, and create the tools to PCP members believe the answer is provide different stakeholders with a simple. Collectively, our economies and clear path toward implementation of livelihoods are dependent on healthy more sustainable practices. ecosystems. The conservation goal of ensuring abundant and sustainably © D Natusch managed python populations, in What can other partnerships learn Most python skins are exported turn ensures livelihood security and from the PCP? air-dried like these Burmese sustainable business opportunities The success of the PCP can be python skins, but some are also for those people utilizing pythons (the attributed to several key points: tanned before export. economic development and business • Agreement on a shared vision and goals). The PCP is unique but powerful, mission; and it holds lessons for future private- public collaborations. • Knowledge and respect of each partner’s needs and expectations; • Identification and utilization of each We now know that partner’s strengths; “breeding pythons in • Definition of each partner’s roles and captivity for their skins responsibilities; and is biologically and • Trust and honest communication. economically feasible – a situation thought Successful partnerships like the impossible only several PCP are not new. In some sectors, years ago... businesses commonly team up to tackle shared problems. For example, Coca-Cola and Heinz have recently collaborated on the creation of biodegradable bottles. However, similar Challenges and achievements of partnerships in the realm of biodiversity- © D Natusch the partnership based businesses and conservation are Pythons are captive-bred within small and large-scale farms Guiding stakeholder discussions more novel, perhaps because the goals of some stakeholders are assumed to in several South-East Asian toward the real rather than perceived countries. Here, staff remove problems affecting trade (to facilitate conflict with the goals of others. For instance, the goal of conserving wild pythons for feeding while their change in priority areas) is the biggest cages are cleaned. challenge the PCP has faced – but it is species, while at the same time utilizing also its most important achievement. those species for economic gain, is By conducting robust, transparent and incomprehensible to many people. science-based research, the PCP is But as companies become more providing the information necessary committed to sustainability (and more to properly inform the discussion aware of what is needed to achieve it), about how trade sustainability can opportunities are frequently enhanced be improved. For example, we now through the alignment of conservation know that breeding pythons in captivity and business interests. for their skins is biologically and This alignment can form the backbone economically feasible – a situation of many successful future BioTrade thought impossible only several partnerships. Strong respect for years ago (Natusch and Lyons, the goals of different partners and 2014). The industry also has very the support of objective and peer- clear recommendations on how to reviewed science is also fundamental © D Natusch treat pythons humanely. Research for success. The end result of these The expansion of oil palm conducted by the PCP has revealed partnerships will, hopefully, enhance plantations in South East Asia important information about the all forms of sustainability, and in turn appears to have favoured benefits of python trade to participants, Python deliver mutual benefits for people, and and how livelihood security can be reticualtus, P. breitensteini species, and ecosystems – and (because of high enhanced (Nossal et al., 2016a; P. brongersmai ultimately the planet. densities of rats). Many snakes are 2016b). Finally, for the first time we have captured in this habitat type. empirical data indicating the harvest of
70 Chapter V. Partnerships
Figure 5.2 PCP research on sustainability of trade in reticulated python skins
© D Natusch
Box 5.3 PCP work to assess sustainability of the trade in reticulated python (Python reticulatus) skins
To assess sustainability of the trade in these metrics. These data lend reticulated python (Python reticulatus) strong empirical support to claims of skins, researchers examined 4200 sustainability of wild python harvests pythons brought to processing in Indonesia. From a management facilities in northern and southern perspective, implementing minimum Sumatra, Indonesia, over a 20-year size limits for snakes will enhance period. The graphs in Figure 5.3 confidence in sustainability by depict the number of male (hollow preventing capture of small columns) and female (grey columns) (immature) snakes. Measurements pythons of different sizes (based on made on the sizes of traded skins snout-vent length - SVL) brought to can simply and effectively enforce processing facilities. Despite being these limits. collected from the same areas as 20 years ago, the numbers, mean body sizes, clutch sizes, sizes at maturity and proportion of giant specimens have not decreased between first surveys (1995) and repeat surveys (2015). If sustainability had been compromised, we would expect to see declines in several or all of Source: Natusch et al., 2016a; 2016b.
71 20 years of BioTrade
Future challenges and 6 opportunities The future may encompass many opportunities and challenges for BioTrade in particular, and biodiversity and trade related initiatives in general. This section provides key messages on each of the topics featured in this publication: people, the planet, markets and partnerships. It will also provide an overview of BioTrade, the Aichi Targets and the SDGs.
Future challenges and opportunities: Key messages
Article
6.1 BioTrade and people 6.2 BioTrade as a conservation tool 6.3 Emerging issues on markets for BioTrade and biodiversity-based businesses 6.4 BioTrade and sustainable development 6.5 BioTrade, Aichi Targets and the SDGs © Fotolia: Gerhard Bittner © Fotolia: Gerhard
72 Chapter VI. Future challenges and opportunities 6.1 BioTrade and people
Found under various definitions (e.g. harvesters) level cannot be Véronique Rossow, (e.g. local communities, harvesters, maintained. This delays the tangible Head of Research perception of livelihood improvement, and Development; collectors, indigenous peoples), Arthur Stevens, the first beneficiaries of BioTrade and may lead to discouragement before Head of Supply, PTA value chains are theoretically such impacts are identifiable, hence those interacting directly with local measurable. biodiversity. It has been demonstrated Besides such business-related that when appropriate resource challenges, and prior to any other management plans are followed, and considerations, practitioners have to dedicated training is carried out, the identify who owns the knowledge of the involvement of local people positively biological resource and/or how rights to impacts on conserving the resources access are defined. If customary rights and related ecosystems (Cunningham, are in place, is this sufficient to start a 2016), while ensuring optimal quality valorization process or should other of the raw material to be collected. beneficiaries be taken into account? However, to ensure positive livelihood Once such rights are identified, and impacts, many challenges still need to to positively impact on livelihoods, be overcome. Ethical and sustainable the benefits sharing strategy will vary local practices generate transactional drastically depending on countries’ costs that are often seen as too high to laws, local needs, amount and be easily accepted, or then absorbed type of benefits that can be shared, by the rest of the actors down the among other factors. One important value chains. It also takes several years development that enhances livelihoods to establish and secure reliable sales of communities is the entry into force opportunities. At grassroots level, of the Nagoya Protocol in 2014, which building the understanding of these provides a mandatory ABS legal commercial uncertainties is not always framework. However, implementation Future challenges and opportunities: Key messages taken into account. This may create a is not without its challenges and loss of motivation during the early years opportunities, as shown in Box 6.1. – so important for establishing a reliable Ultimately, local people and their living value chain. conditions are highly dependent on the In addition, the need to develop commercial success of the value chain an effective resilience strategy at in which they are involved. Therefore, practitioner level, to ensure minimizing without proper regulation systems in and smoothing out of sales fluctuations, place to protect their rights, positive is not sufficiently appreciated. This impacts on their livelihood remain may also generate loss of interest very limited. when regular incomes at grassroots
Practitioners have “to identify who owns the knowledge of the biological resource and/or how rights to access are defined... © UN Photo: Albert Gonzalez Farran
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Box 6.1 BioTrade, ABS and the Nagoya Protocol
UNCTAD prepared a scoping study which offers an overview of the challenges faced and options available to implement BioTrade and ABS principles under the CBD and the Nagoya Protocol in a coherent manner. This study provides a set of key points and policy recommendations for key stakeholders (governments and companies) to take advantage of policy options and strategies available for BioTrade sectors, including: 1. Ensure that ABS frameworks enable parallel benefits sharing and facilitated access. 2. Ensure that ABS regimes are transparent, clear, operational and enhance legal certainty for all actors. 3. Produce a checklist and compile cases that guide countries on the coverage and interlinkages between BioTrade and ABS frameworks. 4. Support national authorities to communicate and coordinate in a regular manner to ensure coherent implementation of rules and procedures. 5. Consider ways in which PIC and MATs within BioTrade projects or business arrangements can become regularized or validated through simple and practical administrative procedures. 6. Asses how PIC, MAT and benefit sharing take place in the particular context of indigenous peoples and communities participating in BioTrade value chains and specific ABS projects. 7. Promote understanding on the changing and very diverse research and development landscape and where and how connections between BioTrade and ABS may occur. 8. Value non-monetary benefits that could generate and introduce incentives to maximize absorptive capacity by BioTrade businesses. 9. Set clear and easy procedures to obtain certificates of compliance, as well as well selected checkpoints – critical to ensure proper traceability. 10. Raise awareness on BioTrade actors, including national authorities, on the implications of the Nagoya Protocol. Further information: www.unctad.org/en/PublicationsLibrary/webditcted2016d4_en.pdf
Source: UNCTAD, 2016b. © PhytoTrade Africa © PhytoTrade
74 Chapter VI. Future challenges and opportunities 6.2 BioTrade as a conservation tool
Challenges guidelines and initiatives that recognize Pablo Sinovas, the importance of the sustainable use Senior Programme Despite its important potential benefits, of biodiversity. Such initiatives have Officer, United trade in wildlife can, when poorly ranged from certification schemes Nations Development managed, e.g. due to the lack of an and sustainable use guidelines to Programme-World enabling policy environment that fosters international policies and commitments, Conservation the sustainable use of biodiversity, Monitoring Centre including the CITES and CBD pose serious challenges, including (UNEP-WCMC) conventions, the Intergovernmental overexploitation, a key threat to Science-Policy Platform on Biodiversity biodiversity globally. Factors such as and Ecosystem Services (IPBES), the illegal trade or corruption, where the Aichi Targets and SDGs and forestry- priority is short-term profit and not based carbon credit mechanisms. This landscape offers real opportunities for maximizing the benefits for biodiversity Local communities and policymakers through continued sustainable use in a are faced with choices over the way in Harnessing the changing world. which natural resources are managed, “potential for trade often presented as trade-offs between in biodiversity while Implementation of best practice remains socioeconomic development and minimizing its risks a key challenge, however. Work in this biodiversity conservation. Within requires adequate direction ought to continue, including this context, the sustainable use of management and the collection of relevant baseline biodiversity can help address both monitoring of the information and the development of needs by promoting the responsible management plans and robust adaptive management of the biodiversity harvest and trade... management approaches. In some underpinning economic development. cases, this necessary work may require This can be achieved by increasing financial and technical support from the perceived value of wildlife, for long-term sustainability, as well as consumer countries. Ensuring adequate example through carefully managed instances where appropriate, well- management will also require measures trade, reducing incentives for alternative informed management is not in place, to address perverse incentives that damaging land use scenarios, such are likely to lead to overharvesting. can result in illegal and unsustainable as clear-felling for agriculture or cattle practices. Such measures should take In addition, closed-cycle captive ranching. BioTrade can thus harness into consideration which approaches breeding of animals or artificial market forces to generate powerful have proven to be successful under propagation of plants, while appropriate incentives for the conservation of which circumstances, e.g. community in some cases as a way of reducing the species utilized, as well as their engagement and the equitable sharing damaging harvest pressure on wild habitats. of revenues, enforcement measures populations, can sometimes contribute and improved information sharing. The Multiple examples exist of how to a decoupling from nature and capability to identify the origin of wildlife adequately managed sustainable use weakened incentives for conservation commodities in trade throughout the and trade programmes can result of the target species in the wild if value chain is essential to guarantee in conservation benefits, including not considered as part of a wider that sustainable use programmes crocodilian population recoveries management plan. Consideration are not being undermined, hence the around the world (e.g. Hutton et al., should be given to assessing the development of traceability systems 2002) and vicuña population increases feasibility of establishing wild or and standards will become increasingly in Peru (e.g. Shaley et al., 2007), ranching utilization programmes in relevant. Emerging processes such sustainable use of NTF products in order to maximize the conservation as this will need to be combined with Africa and Latin America (UNCTAD, incentives. continued and strengthened efforts on 2013; 2015b) or the incentives undertaking resource assessments, generated for the establishment developing and implementing of in situ and ex situ conservation Opportunities management plans and sharing of programmes for amphibians in Ecuador. Harnessing the potential for trade in experiences and lessons learned. Crocodilians and vicuña are primarily biodiversity while minimizing its risks harvested for the fashion industry, while requires adequate management and Ecuadorian amphibians show current monitoring of the harvest and trade. and potential economic value in the pet, The past few decades have seen pharmaceutical and cosmetics markets the development of a plethora of (UNDP, 2015).
75 20 years of BioTrade
Emerging issues on markets for BioTrade and 6.3 biodiversity-based businesses
• Raising awareness regarding the companies to overcome them. For Lorena Jaramillo, benefits of BioTrade among potential example, labelling and packaging Economic Affairs consumers is important not only to requirements, reporting requirements, Officer, UNCTAD capture the growing market trends and registration of new ingredients but also in creating markets for with Codex Alimentarius, GRAS, NFR BioTrade products. and the EU’s Registration, Evaluation, Authorization and Restriction of Other emerging factors for BioTrade Chemicals (REACH) regulations are practitioners to consider are: being identified by practitioners in • The growing consumer trend for Colombia, Peru and Viet Nam under BioTrade-friendly products and UNCTAD’s work on trade barriers in services is a reality, but differentiation the food, phytopharma and personal schemes and premium prices could care sectors. plateau in the future, forcing exporters • Generating platforms and spaces to be more competitive, cost-efficient for policymakers, regulators and The marketplace is dynamic and and differentiate their products companies from exporting and BioTrade actors need to closely based on other aspects. For instance, importing countries to effectively monitor and foresee changes, while businesses are interested in the type discuss, formulate/adapt regulations increasing the competitiveness of their of ingredients, sustainable sourcing and strategies related to market businesses. Governments and private practices, benefits to communities access, while avoiding hindering sector stakeholders need to cooperate and the story behind them, rather sustainable livelihoods and further to understand those challenges than certification logos – as the biodiversity conservation. This and address them, while capturing the increasing number is causing could lead to further understanding growing market opportunities by: consumer confusion in addition and consensus building, as well • Developing an enabling environment to high associated costs. as develop sustainable business for the unrestricted movement of opportunities for local producers BioTrade products and services in and communities. national and international markets, The marketplace is and generate incentives for “dynamic and BioTrade In light of the 2030 Agenda and the entrepreneurs to develop innovative actors need to closely SDGs, issues such as climate change, natural resources depletion (including value added products and services monitor and foresee based on its native biodiversity. biodiversity and water), poverty, changes... immigration, peacebuilding and post- • Enhancing the competitiveness of conflict recovery (e.g. circular economy, value chains, beneficiary companies carbon neutral products, carbon and products by collaborative emission footprints, etc.) are impacting approaches to prioritize, implement, • Horizontal and vertical integration of consumer preferences and market monitor and assess programmes global value chains is reducing chain requirements, providing a competitive and actions plans based on market length, generating end-consumer edge for the companies that work in needs. Civil society and national linkages, and enabling companies this arena. A comprehensive approach and international organizations may to control their supply chains to address these issues within also enhance implementation of the under social and environmental businesses and developing country actions prioritized. considerations based on their governments is essential, as through corporate social responsibility (CSR) the 2030 Agenda, the international • Improving access to finance (e.g. and business strategies – all of which community is aiming to focus credit lines and grants), for example to have implications for producers. develop value added and innovative development in an integrated products and services, enhance • Enhancing connections with the end- and impactful way. production facilities, compliance with consumer and raising awareness of SPS requirements, and implement the benefits BioTrade products and standards and best practices such services to people, the planet and as ISO, HACCP, GMP, GACP, private markets. and voluntary certification schemes, • The increasing number of NTMs in implement traceability systems, and developed and developing country carry out trials and documentation to markets need to be identified and substantiate claims, among others. addressed in order to enable BioTrade
76 Chapter VI. Future challenges and opportunities 6.4 BioTrade and sustainable development
With the adoption of 2030 Agenda and BioTrade provides, in addition to other Balakrishna associated SDGs in 2015, attention options, concrete means of valuing and Pisupati, protecting biodiversity resources and Coordinator has now shifted to action to realize for Biodiversity the agenda and its goals. Natural improving livelihoods in the process MEAs and SDGs resources and biodiversity form a critical (UNCTAD, 2013). Programme, UNEP component of achieving a significant The current focus of the private sector number of goals, in particular SDGs 12 regarding biodiversity is largely limited to 17 (Figure 6.1). to fixing and paying for the cost of Trade in biological and genetic harvested resources and there is resources is a key component in limited understanding of the economic ensuring appropriate governance of value of these resources. This leads to such resources. Trade and development limitations on the benefits countries and policies implemented by governments communities gain from the real value of often ignore key characteristics of trade the resources. in such resources. Thus guidance The time has come for both the private on actions to ensure conservation, sector and the governments to look sustainable management of resources again at the nature of BioTrade and and sharing of subsequent benefits with consider a broader approach that goes appropriate stakeholders is necessary. beyond the principles of conservation BioTrade is characterized by reliance and sustainable management on biodiversity and by the particular options to economic and social framework under which trade in that well-being. A series of opportunities biodiversity takes place. In light of exist for promoting BioTrade through this, BioTrade initiatives rely heavily adjustments in the promotion of CSR, on partnerships not only between the developing equitable partnerships in providers and users of resources but commercial utilization of bioresources, also a range of other stakeholders and supporting access to resources including the private sector. With and benefit sharing. Both governments its unique approach to developing and private sector need to explore such value chains of natural ingredients opportunities. and products that are derived from the sustainable use of biodiversity, ©MINAM-DGDB: Enrique Pezo Gomez
77 20 years of BioTrade 6.5 BioTrade, Aichi Targets and the SDGs
BioTrade has, over the years, provided Aichi Targets and the SDGs Bonapas Onguglo, for concrete actions to enhance Senior Economic livelihoods and ensure the conservation The Strategic Plan for Biodiversity Affairs Officer; and sustainable use of biodiversity, 2011–2020 with its 20 Aichi Lorena Jaramillo, Targets (which included aspects of Economic Affairs including valuing and mainstreaming biodiversity into economic sectors, sustainable development), divided Officer, UNCTAD; over five strategic goals (Table 6.1), Neiva Rosa, and enabling for improved biodiversity is the global biodiversity roadmap Consultant governance. These aims are embodied in the Aichi Targets and the SDGs, and established under the CBD. It was BioTrade brings real possibilities to adopted in 2010 at COP 10 of the contribute to their achievement. CBD (CBD, 2010). 193 parties are
Table 6.1 Aichi Targets and strategic goals
Aichi Biodiversity Strategic goal Targets Targets Icons
(A) Mainstreaming 1 Awareness of the values of biodiversity biodiversity 2 Integration of biodiversity 3 Elimination of incentives harmful to biodiversity 4 Development and/or implementation of plans for sustainable production and consumption
(B) Reducing 5 Halving the rate of loss of all natural habitats pressure on 6 All fish and invertebrate stocks and aquatic plants biodiversity are managed and harvested sustainably 7 Areas under agriculture, aquaculture and forestry are managed sustainably 8 Reducing pollution 9 Invasive alien species and pathways are identified and prioritized 10 Minimize the anthropogenic pressures on coral reefs, and other vulnerable ecosystems
(C) Safeguarding 11 Conservation of terrestrial and marine areas ecosystem 12 Prevent extinction of known threatened species 13 Minimizing genetic erosion and safeguarding genetic diversity
(D) Enhancing 14 Restoring and safeguarding ecosystems benefits from 15 Enhanced ecosystem resilience biodiversity 16 Implementation of Nagoya Protocol on Access and ecosystem to Genetic Resources services
(E) Enhancing 17 Implementation of national biodiversity strategy implementation and action plan 18 Traditional knowledge, innovations and practices of indigenous and local communities respected 19 Knowledge, the science base and technologies relating to biodiversity, improved 20 Mobilization of financial resources
Source: CBD, 2010.
78 Chapter VI. Future challenges and opportunities
Figure 6.1 Sustainable Development Goals
Source: Sustainable Development Knowledge Platform website (https://sustainabledevelopment.un.org).
Connecting the SDGs and Aichi sustainable agriculture, sustainable Sustainable Targets consumption and production, development economic growth, cities and human “ The Aichi Targets, following the broad settlements, and accountable and and biodiversity aspect of conservation embraced inclusive institutions, among others. conservation are by the CBD and its three objectives This integrated approach underpins inextricably linked and (conservation, sustainable use of the United Nations 2030 Agenda for one cannot succeed biodiversity, and fair and equitable Sustainable Development. without the other... benefit sharing), have a direct connection to the 2030 Agenda and The conservation of biodiversity and its SDGs. The 2030 Agenda highlights halting of biodiversity loss requires, in committed and implementing the plan the importance of living in harmony addition to environmental measures, through NBSAPs. The strategic plan’s with nature (§9), and specifies that social and economic measures, creation was intended to contribute UN Member States will “conserve and including trade. Trade, including trade to the achievement of the Millennium sustainably use oceans and seas, in environmental goods and services, is Development Goals (MDGs), including freshwater resources, as well as forests, also mainstreamed into the SDGs. It is poverty reduction, as explicitly mountains and drylands and to protect identified as a means of implementation mentioned, “it contributes to local biodiversity, ecosystems and wildlife.” in Goal 17, but it is also transversal in livelihoods, and economic development, The CBD Secretariat also stated other SDGs (2, 8, 9 and 10) and the and is essential for the achievement of that “Paragraph 33 of the Agenda’s biodiversity-related goals (14 and 15). the Millennium Development Goals”. Declaration focuses on biodiversity Sustainable trade can contribute to and ecosystems and related matters, mainstream biodiversity and enhance The Special Summit of the UN and two of the SDGs refer directly to its economic valuation into the General Assembly, 25–27 September biodiversity (i.e. SDG 14 on marine economy as well as provide incentives 2015, adopted the 2030 Agenda for biodiversity and SDG15 on terrestrial to conserve biodiversity and ensure its Sustainable Development, including the biodiversity).”26 When analysing the sustainable use, rather than destroy it. set of SDGs that succeeded the MDGs. Aichi Targets and SDG 15 targets, the The SDGs comprise 17 goals (Figure close relationship is obvious (Table 6.2). 6.1) and 169 related targets (United Nations, 2015). It sets the path for Sustainable development and governments, UN agencies, civil society biodiversity conservation are inextricably and businesses for the next 15 years to linked and one cannot succeed without work together to end poverty, promote the other. Therefore, approaching and prosperity and ensure people’s well- implementing the SDGs must be a being while protecting the environment. holistic, inclusive and integrated effort, involving all stakeholders to address poverty eradication, food security,
79 20 years of BioTrade
Table 6.2 SDG 15 and its targets and the Aichi Targets
Target Description
15.1 By 2020, ensure the conservation, restoration and sustainable use of terrestrial and inland freshwater ecosystems and their services, in particular forests, wetlands, mountains and drylands, in line with obligations under international agreements – related to Aichi Targets 5, 7, 11, 14, 15. 15.2 By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests and substantially increase afforestation and reforestation globally –related to Aichi Targets 5, 7, 11, 15. 15.3 By 2030, combat desertification, restore degraded land and soil, including land affected by desertification, drought and floods, and strive to achieve a land degradation-neutral world –related to Aichi Targets 5, 7, 15.
15.4 By 2030, ensure the conservation of mountain ecosystems, including their biodiversity, in order to enhance their capacity to provide benefits that are essential for sustainable development –related to Aichi Targets 3, 7, 11, 14, 15 15.5 Take urgent and significant action to reduce the degradation of natural habitats, halt the loss of biodiversity and, by 2020, protect and prevent the extinction of threatened species – related to Aichi Targets 3, 5 12.
15.6 Promote fair and equitable sharing of the benefits arising from the utilization of genetic resources and promote appropriate access to such resources, as internationally agreed – related to Aichi Target 16. 15.7 Take urgent action to end poaching and trafficking of protected species of flora and fauna and address both demand and supply of illegal wildlife products – related to Aichi Targets 4, 12. 15.8 By 2020, introduce measures to prevent the introduction and significantly reduce the impact of invasive alien species on land and water ecosystems and control or eradicate the priority species – related to Aichi Targets 3, 9. 15.9 By 2020, integrate ecosystem and biodiversity values into national and local planning, development processes, poverty reduction strategies and accounts – related to Aichi Targets 2, 17. 15.a Mobilize and significantly increase financial resources from all sources to conserve and sustainably use biodiversity and ecosystems – related to Aichi Target 20.
15.b Mobilize significant resources from all sources and at all levels to finance sustainable forest management and provide adequate incentives to developing countries to advance such management, including for conservation and reforestation – related to Aichi Targets 3, 20. 15.c Enhance global support for efforts to combat poaching and trafficking of protected species, including by increasing the capacity of local communities to pursue sustainable livelihood opportunities – related to Aichi Targets 1 3, 4, 12, 14.
Source: Adapted from Sustainable Development Knowledge Platform website (https://sustainabledevelopment.un.org).
Value chain workshop in Ecuador © UNCTAD Giant corn from Cuzco © PROMPERU
80 Chapter VI. Future challenges and opportunities
BioTrade and the SDGs adequately managed enabling the Key lessons learned and best practices development of profitable ecotourism from the BioTrade Initiative can be UNCTAD, the UN agency addressing destinations. These are some of identified and translated into ways the interface between trade and the sectors embraced by BioTrade of supporting the promotion and development, has been actively initiatives promoted by UNCTAD and achievement of 11 of the SDGs (Figure engaged in building – jointly with its national, regional and international 6.2), contributing directly to eight SDGs governments, private sector and civil partners and programmes. and indirectly to another eight, as well society – inclusive and sustainable as 13 Aichi Targets. This publication paths centred on people and nature. Considering the importance of provided practical cases, related to the Trade, nature and creativity all intertwine international trade as an engine for BioTrade Initiative and other initiatives to shape the future and develop economic growth and development,27 led by private stakeholders, which new industries through innovation, BioTrade has the power to serve the contribute to biodiversity sustainability technology, sustainable management SDGs on a broader level. However, and sustainable use and that can of nature, and development of in order to build on the achievements help to achieve the SDGs and the economically feasible opportunities and seize the opportunities generated Aichi Targets. for local communities and SMEs. by BioTrade it requires a coherent policy framework and collaboration The BioTrade Initiative of UNCTAD to overcome capacity and market is a practical programme that can challenges faced in the implementation make a concrete contribution to of sustainable businesses and sustainable development. Under employment in developing countries. social, environmental and economic Furthermore, countries and criteria, biodiversity resources are being organizations will need to understand transformed into value added products and identify these challenges and by local communities, SMEs and TNCs opportunities in order to implement and used in the food, pharmaceutical, actions to promote the SDGs and personal care, handicrafts and fashion achieve the post-2015 development industries. Ecosystems are also being agenda.
Figure 6.2 BioTrade’s contribution to the Aichi Targets and SDGs
SDGs
Aichi Targets contribution Direct
BioTrade’s contribution contribution Indirect
Source: Jaramillo, 2016.
81 20 years of BioTrade
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Notes 1 See more on the Convention at CBD, 13 More information on the Strategic Plan 25 The Solutions Alliance was established 1992: https://www.cbd.int/doc/legal/cbd- for Biodiversity 2011–2020 and the in 2014 to mobilize a broader range en.pdf Aichi Biodiversity Targets is available at: of stakeholders to work together for 2 The interaction of these approaches and https://www.cbd.int/sp/. the benefit of displaced persons and BioTrade: (a) value-chain approach: 14 Natura is a BioTrade company host communities. It is an inclusive where the strengthening of value chain implementing BT P&C with the support forum that brings together donor and is a critical element in implementing of the UEBT since 2007. host governments, UN agencies, BT P&C; (b) sustainable livelihood multilateral financial institutions, civil 15 Baobab (Adansonia digitata), devil’s society organizations, international approach: strengthens the human, social, claw (Harpagophytum sp.), sausage tree physical, financial and natural capital NGOs, the private sector and (Kigelia africana), Kalahari melon (Citrillus academia to promote innovative and of people and communities to which lanatus), marula (Schlerocarya birrea), BioTrade contributes; (c) ecosystem effective responses to displacement sour plums (Ximenia sp.), mongongo and to rethink the way we respond to approach: the planning of productive (Schinziophyton rautaneii), mafura processes related to BioTrade initiatives displacement from the start. UNCTAD (Trichilia emetica), mbiri (Commiphora sp. BioTrade is a member of the Thematic which are environmentally and socially from Namibia). responsible with regard to their impact Group on Engaging with the Private on species, habitats, ecosystems and 16 There is no official definition of this Sector, chaired by UNDP and the NGO local communities; and (d) adaptive neologism, but rather a general Spark (Solutions Alliance Secretariat, management approach: when understanding that such a word refers 2016). implementing sustainable practices, it is to an economy based on the biological 26 Secretariat of the CBD, September crucial to consider the identification of resources valorization. 2015b. impacts on species and ecosystems and 17 Bird watching, wildlife, whale watching, 27 Within the action areas of the Addis the continual improvement of BioTrade hiking, caving, mountain climbing, Ababa Action Agenda, international initiatives. rock climbing, camping, diving and trade is considered and engine for 3 https://www.cbd.int/decision/ snorkelling, as well as educational and development. See: http://www.un.org/ cop/?id=7114. research activities (Resolution 531 of esa/ffd/wp-content/uploads/2015/08/ 2013). 4 UNCTAD and CITES have a long-standing AAAA_Outcome.pdf. relationship at the international, regional 18 The seven parks include: five in the and national level. Furthermore, BioTrade Andean subregion (PNN Cocuy, PNN is also recognized in CITES Decisions, Chingaza, PNN Los Nevados, SFF particularly Decisions 14.46, 16.102 c), Iguaque and SFF Otún Quimbaya); one in 16.103 and 16.105. the Caribbean Region (PNN Corales del Rosario) and one on the Pacific region 5 https://www.cbd.int/blg/. (PNN Utría). 6 Note from author: I have decided not to 19 For further information see: https://www. mention BioTrade simply as concept, facebook.com/OtunQuimbaya. as it now goes beyond ideas and is
demonstrating concrete actions on the 20 Co-creation is a management initiative ground. or form of economic strategy, that brings different parties together in order to jointly 7 See A/RES/70/1. produce a mutually valued outcome 8 CAF is a multilateral financial institution, (Prahalad CK and Ramaswamy V, 2004). made up of 19 countries (17 in Latin 21 Regulation (EC) No. 258/97 defines that America and the Caribbean, plus Spain all foods and food ingredients without and Portugal) and 14 private banks. a history of “significant” consumption in It promotes sustainable development the EU prior to 15 May 1997 must be and regional integration by financing authorized by this legislation. projects in the public and private sectors, providing technical cooperation and other 22 No longer active. specialized services in the region. 23 Sustainable Development Goal 17: 9 Full ABP report: http://biocomercioandino. Revitalize the global partnership for org/wp-content/uploads/2015/08/ sustainable development, states that Memoria-Virtual-Biocomercio-Andino- multistakeholder partnerships will be CAF-Ingles.pdf. crucial to leverage the interlinkages between the SDGs to enhance their 10 See more on www.biotradeinnovation. effectiveness and impact and accelerate org. progress in achieving the goals. 11 Financing that understands the dynamics 24 National BioTrade programmes are of BioTrade and its positive effects on managed by local counterparts, such conservation and social inclusion. as ministries of the environment, and 12 Based on the publication Conocimientos support the implementation of BT P&C in Tradicionales y Biocomercio: La prioritized value chains and sectors. experiencia de un emprendimiento intercultural en San Martín, (Noejovich, 2013).
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