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Building Biodiversity Business

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Building Biodiversity Business Building Biodiversity Business Joshua Bishop, Sachin Kapila, Frank Hicks, Paul Mitchell and Francis Vorhies 1. One of the 73 frog species found in the 1 Gamba Complex, Gabon © Carlton Ward Jr. 2. A water lily in Jacana, Botswana IUCN Photo Library © IUCN / Sue Mainka 3. Masked butterflyfish in the Red Sea, Egypt IUCN Photo Library © Christian Laufenberg 2 3 4. Chameleo dilepis © Carlton Ward Jr. 5. Alcedo leucogaster © Carlton Ward Jr. 6. Forest in the Garajonay National Park, Spain IUCN Photo Library © Jim Thorsell Carlton Ward Jr. is an environmental photojournalist from Florida, 4 5 6 USA with graduate training in ecology and anthropology. Through his photographs, he aims to promote conservation of natural environments and cultural legacies. Building Biodiversity Business Joshua Bishop1, Sachin Kapila2, Frank Hicks3, Paul Mitchell4 and Francis Vorhies5 2008 1 IUCN (International Union for Conservation of Nature) 2 Shell International Limited 3 Forest Trends 4 Green Horizons Environmental Consultants Limited 5 Earthmind Publication Data Bishop, J., Kapila, S., Hicks, F., Mitchell, P. and Vorhies, F. 2008. Building Biodiversity Business. Shell International Limited and the International Union for Conservation of Nature: London, UK, and Gland, Switzerland. 164 pp. © Shell International Limited, International Union for Conservation of Nature and Natural Resources and the authors 2008 ISBN: 978-2-8317-1019-8 Reproduction of this publication for educational or other non-commercial purposes is authorised without prior written permission from the copyright holder provided the source is fully acknowledged. Reproduction of this publication for resale or other commercial purposes is prohibited without prior written permission of the copyright holder. In this report the collective expression “Shell” is sometimes used for convenience in contexts where reference is made to the companies of the Royal Dutch / Shell Group in general or where no useful purpose is served by identifying a particular company or companies. The findings, interpretations and conclusions expressed here are those of the authors and do not necessarily reflect the views of Shell, IUCN or those interviewed. Any errors are purely the responsibility of the authors. All economic values are as noted in quoted source materials and have not been converted to the equivalent value in 2008 terms. This review should not be used as the basis for investments or related actions and activities. Cover design by 3R Communications Ltd. Graphic design by Shell Visual Media Services. Contents Contents Acknowledgments 6 Author information 7 Preface 8 Executive summary 10 Chapter 1. Introduction 14 Chapter 2. Context: the biodiversity challenge 16 2.1 Biodiversity, ecosystem services and conservation 16 2.2 Funding biodiversity conservation 20 Chapter 3. Rationale: why biodiversity business? 24 3.1 The business case for biodiversity 25 3.2 The conservation case for biodiversity business 27 3.3 The development case for biodiversity business 28 Chapter 4. The biodiversity business landscape 30 4.1 The spectrum of biodiversity business 31 4.2 Agriculture 33 4.2.1 What is ‘biodiversity-friendly’ agriculture? 33 4.2.2 Agriculture – status and trends 34 4.2.3 Agriculture – what is working / not working 37 4.2.4 Agriculture – gaps and business investment opportunities 40 4.3 Forestry 41 4.3.1 What is sustainable forestry? 41 4.3.2 Forestry – status and trends 42 4.3.3 Forestry – what is working / not working 43 4.3.4 Forestry – gaps and business investment opportunities 45 4.4 Non-timber forest products 46 4.4.1 What are NTFP? 46 4.4.2 NTFP – status and trends 47 4.4.3 NTFP – what is working / not working 48 4.4.4 NTFP – gaps and business investment opportunities 51 4.5 Fisheries and aquaculture 52 4.5.1 What are sustainable fisheries? 52 4.5.2 Fisheries and aquaculture – status and trends 53 4.5.3 Fisheries and aquaculture – what is working / not working 55 4.5.4 Fisheries and aquaculture – gaps and business investment opportunities 57 1 Building Biodiversity Business 4.6 Biocarbon 58 4.6.1 What is biocarbon? 58 4.6.2 Biocarbon – status and trends 59 4.6.3 Biocarbon – gaps and business investment opportunities 63 4.7 Payments for watershed protection 64 4.7.1 What is watershed protection? 64 4.7.2 Payments for watershed protection – status and trends 65 4.7.3 Payments for watershed protection – gaps and business investment opportunities 65 4.8 Bioprospecting 68 4.8.1 What is bioprospecting? 68 4.8.2 Bioprospecting – status and trends 69 4.8.3 Bioprospecting – what is working / not working? 71 4.8.4 Bioprospecting – gaps and business investment opportunities 73 4.9 Biodiversity offsets 75 4.9.1 What are biodiversity offsets? 75 4.9.2 Biodiversity offsets – status and trends 76 4.9.3 Biodiversity offsets – gaps and business investment opportunities 78 4.10 Biodiversity management services 80 4.10.1 What are biodiversity management services? 80 4.10.2 Biodiversity management services – status and trends 83 4.10.3 Biodiversity management services – gaps and business investment opportunities 83 4.11 Ecotourism 84 4.11.1 What is ecotourism? 84 4.11.2 Ecotourism – status and trends 86 4.11.3 Tools for managing impacts 87 4.11.4 Ecotourism contributions to conservation 88 4.11.5 Ecotourism – what is working / not working 89 4.11.6 Ecotourism – gaps and business investment opportunities 90 4.12 Recreational hunting and sportfishing 92 4.12.1 Hunting and sportfishing – status and trends 92 4.12.2 Hunting and sportfishing – what is working / not working 94 4.12.3 Hunting and sportfishing – gaps and business investment opportunities 95 4.13 Conclusions on the biodiversity business landscape 96 4.13.1 Enabling environment 97 4.13.2 Business development services 98 4.13.3 Investment opportunities 99 Chapter 5 Review of biodiversity business promotion mechanisms 102 5.1 Mechanisms to promote biodiversity business 102 5.1.1 Enabling environment 103 5.1.2 Business tools 104 5.1.3 Financing instruments 105 2 Contents 5.2 Review of mechanisms 105 5.2.1 Creating an enabling environment for biodiversity business 106 5.2.2 Mandatory policy 107 5.2.3 International laws and regulations 107 5.2.4 Local and national policy and institutions 109 5.2.5 Voluntary policies 113 5.2.6 Key lessons / challenges and opportunities 116 5.3 Biodiversity business tools 118 5.3.1 Introduction 118 5.3.2 A typology of biodiversity business tools 118 5.3.3 Key lessons / challenges and opportunities 121 5.4 Financing instruments 123 5.4.1 Financing instruments – the range 123 5.4.2 Key lessons / challenges and opportunities 127 5.5 Conclusions on business promotion mechanisms 128 Chapter 6. Conclusions 130 6.1 Key findings and opportunities 130 6.2 Critical success factors 133 6.3 Towards a Biodiversity Business Facility 134 6.3.1 What exactly would a Biodiversity Business Facility do? 138 6.3.2 How to develop a Biodiversity Business Facility 138 6.4 Closing remarks 139 Appendix A. Overview of selected biodiversity funds 142 Appendix B. Overview of selected think-tanks and business incubators 148 Glossary and list of acronyms 150 Glossary 150 Acronyms 153 Index 156 3 Building Biodiversity Business List of figures Figure 1. Extinctions per thousand species per millennium 18 Figure 2. Growth of global protected areas over time 19 Figure 3. The Red List Index for birds in different ecosystems 20 Figure 4. Regional variation in the percentage of the overall cost of effective reserve networks that are met 21 Figure 5. Biodiversity in development finance: tapping new sources 22 Figure 6. Area of organic agriculture and wild harvested plants worldwide 38 Figure 7. Certified forest area worldwide 43 Figure 8. Aquaculture production in developed and developing countries 54 Figure 9. Growth of the global carbon market (value of carbon contracts) 60 Figure 10. Orders of magnitude in drug discovery 69 Figure 11. Biodiversity offsets and net positive impact 76 Figure 12. The growth of international tourist arrivals 86 Figure 13. The ‘playing fields’ of interest 103 Figure 14. General screening process 131 Figure 15. Overview of a Biodiversity Business Facility 134 Figure 16. What would a Biodiversity Business Facility do? An illustration for NTFP 139 List of tables Table 1. Status of the USA mitigation market 77 Table 2. Biodiversity management services offered by different providers 82 Table 3. A tourism typology 85 Table 4. Selected ecosystem markets and their potential for growth 96 Table 5. Global subsidies 1994–1998 (US$ billion per annum) 112 Table 6. Certification strengths and weaknesses: the case of coffee 116 Table 7. BioTools for biodiversity business 119 Table 8. The financing spectrum 124 Table 9. Biodiversity Business Facility – SWOT analysis 136 Table 10. Attributes of a Biodiversity Business Facility 137 List of boxes Box 1. Biofuels and biodiversity 34 Box 2. Combining rural development and biodiversity conservation 36 Box 3. UNCTAD BioTrade principles and criteria 39 Box 4. Promoting certified timber markets in Central America 44 Box 5. High Conservation Value Network launched 44 Box 6. The value of wild plants, animals and freshwater fisheries in Senegal 46 Box 7. Bamboo and rattan – facts and figures 47 Box 8. The sustainability of the bushmeat trade 48 Box 9. Linking conservation and local economic development at Flower Valley, South Africa 48 Box 10. PhytoTrade Africaa 50 Box 11. The Marine Stewardship Council and certification of fisheries 56 Box 12. ForTuna by WWF and TRAFFIC 57 Box 13. A selection of biocarbon initiatives 60 Box 14. The potential of avoided deforestation 62 Box 15. The Climate, Community and Biodiversity Standards 63 4 Contents Box 16. Payments for watershed protection in Costa Rica 65 Box 17.
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