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Financing Species Conservation

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Financing Species Conservation Financing Species Conservation A Menu of Options September 2004 Sarah Koteen Center for Conservation Finance BUILDING CONSERVATION CAPITAL FOR THE FUTURE World Wildlife Fund Copyright: © 2004 WWF. All rights reserved by World Wildlife Fund, Inc. Citation: Koteen, Sarah. 2004. Washington, D.C.: WWF Center for Conservation Finance. Cover photo: African Savannah Elephant. Loxodonta africana. African elephant adult bulls drinking at water hole sub-Saharan Africa. © WWF Canon / Martin Harvey Acknowledgements The author is grateful to Bruce Bunting, Sue Lieberman, Caroline Mitten, and Amanda Nickson for their helpful contributions to the guide and would like to thank WWF colleagues: Karen Baragona, Luz Baskinas, Esteban Brenes, Tom Dillon, Jim Fuschetti, Tim Geer, Ginette Hemley, Sybille Klenzendorf, Melissa Moye, Michael Ross, Mingma Sherpa, and Jan Vertefuille. The author would also like to acknowledge that as the third guide in a series, this publication draws from and supplements information contained in Financing Marine Conservation: a Menu of Options (Spergel and Moye) and Raising Revenues for Protected Areas (Spergel). Center for Conservation Finance World Wildlife Fund 1250 24th Street, NW Washington, D.C. 20037-1124 Tel: +1 (202) 778-9676 Fax: +1 (202) 861-8324 http://www.worldwildlife.org/conservationfinance Financing Species Conservation This guide describes more than 30 mechanisms for financing species conservation. It is intended to familiarize conservation professionals – i.e., the managers and staff of government conservation agencies, international donors, intergovernmental organizations (IGOs), and nongovernmental organizations (NGOs) – with a menu of options for financing species conservation. The guide covers both revenue-raising and economic incentive mechanisms, and describes practical cases of each instrument implemented in the field. Rather than offering a detailed manual for the development of each mechanism, the guide presents a set of summaries for the reader to review. A list of sources to consult for additional information is provided at the end of each chapter. For the purpose of the guide, the term “species” is limited to wild fauna and can be interchanged with the term “wildlife.” Because protecting species depends directly on the conservation and sustainable management of habitat, the guide highlights mechanisms that support both the conservation of individual species as well as wider habitats whose disruption would significantly impact species biodiversity.1 Please note that the cases included in the guide are not necessarily presented as paragons of their category and inclusion does not constitute World Wildlife Fund (WWF) endorsement of the particular project. They are instead presented as examples of financing mechanisms that can be effective when designed as part of a comprehensive sustainable species or habitat management strategy. A strong scientific, economic, political, and social project framework is critical to the ability of each mechanism to support species biodiversity. WWF considers this publication an initial guide to the subject of financing species conservation. The financing mechanisms and case examples included in this guide represent a preliminary compilation to give the reader an overview of existing financing tools. The WWF Center for Conservation Finance will continue to develop new and innovative approaches to address the financial needs required by species conservation and welcomes additional ideas and information that can be included in subsequent editions. 1 Biodiversity (biological diversity): The variability among living organisms from all sources, including land based and aquatic ecosystems, and the ecosystems of which they are part. These include diversity within species, between species, and of ecosystems. Diversity is the key to ensuring the continuance of life on Earth. It is also a fundamental requirement for adaptation and survival and continued evolution of species. (World Bank) Table of Contents 1. Introduction………………………………………………………………………………….. 1 1.1 Business Planning………………………………………………….......................... 2 1.2 Feasibility Analysis………………………………………………………………... 4 2. Autonomy of Government Wildlife Agencies……………………………………………..... 7 3. Government Revenue Allocations.………………………………………………………….. 10 3.1 Taxes and Bonds Earmarked for Conservation…………………………………... 10 3.2 Real Estate and Development Taxes………………………………………………. 12 3.3 Lottery Revenues…………………………………………………………………... 12 3.4 Premium-Priced Motor Vehicle License Plates……………………………………. 14 3.5 Wildlife Stamps……………………………………………………………………. 15 3.6 Economic Instruments to Stimulate Environmental Investment…………………... 16 3.7 Debt Relief………………………………………………………………………… 17 4. Grants, Donations, and Loans……………………………………………………………….. 22 4.1 Bilateral and Multilateral Agencies………………………………………………... 22 4.2 Foundations ……………………………………………….………………………. 24 4.3 Conservation Trust Funds ………………………………………………………… 25 4.4 Nongovernmental Organizations …………………………………………………. 26 4.5 Private Sector……………………………………………………………………… 28 5. Tourism Revenues…………………………………………………………………………… 33 5.1 Protected Area Entry Fees…………………………………………………………. 33 5.2 Recreation Fees…………………………………………………………………….. 34 5.3 Species Related “User Fees”………………………………………………………. 35 5.4 Hunting Fees and Green Safaris…………………………………………………… 36 5.5 Commercial Operations in Protected Areas……………………………………….. 37 5.6 Airport Passenger Fees and Hotel Taxes………………………………………….. 37 5.7 Voluntary Contributions from Tourists and Tourism Operators…………………... 38 6. Revenue from the Sale and Trade of Wildlife…………………………………..................... 43 6.1 Revenue from Illegal Hunting and Wildlife Trade………………………………… 43 6.2 Wildlife Auctions………………………………………………………………….. 44 6.3 In Situ-Ex Situ Species Conservation Partnerships………………………………… 45 6.4 Species Product Certification……………………………………………………… 46 7. Financing Habitat Acquisition and Management…………………………………………… 49 7.1 Purchase or Donation of Land or Property………………………………………… 49 7.2 Conservation Easements…………………………………………………………… 50 7.3 Wildlife Conservancies……………………………………………………………. 50 7.4 Conservation Concessions…………………………………………………………. 52 7.5 Tradable Development Rights and Wetland Banking……………………………... 53 8. Natural Resource Extraction Revenues……………………………………………………… 55 8.1 Fines……………………………………………………………………………….. 55 8.2 Royalties and Fees…………………………………………………………………. 55 8.3 Taxes…..................................................................................................................... 56 8.4 Hydroelectric Power Revenues……………………………………………………. 56 8.5 Voluntary Contributions from Natural Resource Companies……………………... 56 9. For-Profit Investment………………………………………………………………………... 59 10. Conclusion………………………………………………………………………………….. 61 Appendix I………………………………………………………………………………………62 Acronyms and Abbreviations ACC Asian Conservation Company ADB Asian Development Bank ARAZPA Australia Regional Association of Zoological Parks and Aquaria ARPA Amazon Region Protected Areas BEC Busch Entertainment Corp. CBD Convention on Biological Diversity CBO Community Based Organization CBNRM Community Based Natural Resource Management CEPF Critical Ecosystem Partnership Fund CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora DNR Department of Natural Resources DOC Department of Conservation EKZNW Ezemvelo KZN Wildlife EPA Environmental Protection Agancy FMCN Fondo Mexicana para la Conservación de la Naturaleza/Mexican Nature Conservation Fund GDP Gross Domestic Product GEF Global Environment Facility GOCO Great Outdoors Colorado GTZ German Technical Coorporation HCP Habitat Conservation Plan HIPC Heavily Indebted Poor Countries IGO Inter-governmental Organization IUCN World Conservation Union KWS Kenya Wildlife Service LEX Lindblad Expeditions MBCF Monarch Butterfly Conservation Fund MAC Marine Aquarium Council MSC Marine Stewardship Council NFWF National Fish and Wildlife Foundation NGO Non-governmental Organization PACT Protected Areas Conservation Trust PHKA Indonesian Directorate General of Forest Protection and Nature Conservation PRSP Poverty Reduction Strategy Paper RCP Rhino Conservancy Project SANParks South African National Parks SSP Species Survival Program TANAPA Tanzania National Parks TFCA Tropical Forest Conservation Act UK United Kingdom UNDP United Nations Development Programme UNEP United Nations Environment Programme USAID U.S. Agency for International Development USFWS U.S. Fish and Wildlife Service WWF World Wide Fund for Nature/World Wildlife Fund 1. Introduction Forming the web of life upon which humans depend, nature provides a vast number of goods and services essential to human survival. Scientists have so far identified approximately 1.75 million species of plants, animals, and microorganisms on Earth, but estimates place the total number of species at between 3 and 100 million (Convention on Biological Diversity). These species supply valuable natural services that would be impractical – even impossible – to replace, such as large- scale pest control, pollination of plants and crops, maintenance of genetic resources, and replenishment of soil fertility. Furthermore, many of these species invoke a cultural or aesthetic pride that has become a source of social identity. Animals such as elephants, lions, and eagles adorn international flags, while charismatic wildlife mascots represent athletic teams and universities across the globe. Not only does species conservation have important biological and human psychological benefits, but it has important
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