Sustainable conservation financing in the Dr Francis Vorhies The designation of geographical entities in this book, and the presentation of the material, do not imply the expression of any opinion whatsoever on the part of IUCN (International Union for Conservation of Nature), USAID (United States Agency for International Development), Project REGENERATE or the Government of Maldives concerning the legal status of any country, territory, or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries.

The views expressed in this publication do not necessarily reflect those of IUCN, USAID, Project REGENERATE or the Government of Maldives.

This publication has been made possible in part by generous funding from USAID.

This research has been made possible with the collaboration and expertise of Ministry of Environment (MoEnv), and Environmental Protection Agency (EPA).

Published by: IUCN and the Government of Maldives in collaboration with USAID

Copyright: © 2020 International Union for Conservation of Nature and Natural Resources and Government of Maldives.

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.

Authors: Dr. Francis Vorhies

Citation: Vorhies, F. (2020). Sustainable Conservation Financing in the Maldives.

Malé, Maldives: IUCN and Government of Maldives. 68pp.

Cover photo: © Ahmed Basheer, IUCN .

Layout by: Adam Zubin, adamzubin.com

Produced by: IUCN Maldives, Malé, Maldives Sustainable conservation financing in the Maldives Dr Francis Vorhies CONTENTS

1. Introduction...... 10 2. Conservation financing currently in the Maldives...... 10 2.1 Conservation areas in the Maldives...... 10 2.1.1 Legally protected areas...... 10 2.1.2 Resort island areas...... 10 2.1.3 International recognition...... 11 2.2 Use of biodiversity in the Maldives...... 11 2.3 The REEFS proposal...... 12 2.4 The Baa Atoll Conservation Fund (BACF)...... 13 2.5 South Ari Atoll Marine Protected Area (SAMPA)...... 15 2.6 Fuvamulah and Hithadhoo Climate Change Adaptation Project...... 16 2.7 Biodiversity-based public revenue...... 16 2.7.1 Tourism sector...... 16 2.7.2 Fisheries sector...... 17 2.7.3 Other sectors...... 17 2.7.4 International donors...... 18 2.8 Other public-sector experiences in environmental financing...... 18 2.8.1 The proposed Maldives Green Fund (MGF)...... 18 2.8.2 Fund for Renewable Energy System Applications (FRESA)...... 19 2.8.3 Green Climate Fund implementing agency...... 20 3. Conservation financing opportunities from abroad...... 20 3.1 Conservation finance in multilateral policy frameworks...... 20 3.1.1 2030 Agenda for Sustainable Development...... 20 3.1.2 Addis Ababa Action Agenda...... 22 3.1.3 CBD Strategic Plan for Biodiversity...... 23 3.2 Conservation finance in multilateral institutions...... 24 3.2.1 Global Environment Facility (GEF)...... 24 3.2.2 Green Climate Fund (GCF)...... 24 3.2.3 International Finance Corporation (IFC)...... 25 3.2.4 World Bank...... 25 3.2.5 Asian Development Bank (ADB)...... 26 3.2.6 United Nations Development Programme (UNDP)...... 26 3.2.7 United Nations Environment (UNEP)...... 27 3.2.8 CBD LifeWeb...... 27 3.2.9 IUCN...... 28 3.3 Conservation finance in bilateral financial institutions...... 29 3.3.1 Export Credit Agencies (ECAs)...... 30 3.3.2 US Agency for International Development (USAID)...... 30 3.3.3 Agence Française de Développement (AFD)...... 30 3.3.4 Japan International Cooperation Agency (JICA)...... 30 3.3.5 CDC Biodiversité...... 31 3.4 Conservation finance in private financial institutions...... 31 3.4.1 Equator Principles Financial Institutions (EPFIs)...... 31 3.4.2 UN-supported Principles for Responsible Investment (PRI)...... 31 3.4.3 Credit Suisse...... 31

 4 3.4.4 Althelia Ecosphere...... 32 3.4.5 Conservation Capital...... 33 3.4.6 EcoEnterprises Fund...... 33 3.4.7 Livelihoods Fund...... 34 3.4.8 Coalition for Private Investment in (CPIC)...... 34 3.4.9 Natural Capital Coalition...... 34 3.5 Conservation finance in private foundations and NGOs...... 34 3.5.1 Mava Foundation...... 35 3.5.2 Oak Foundation...... 35 3.5.3 The Nature Conservancy (TNC)...... 35 3.5.4 Conservation International (CI)...... 36 3.5.5 Rare...... 36 3.5.6 Forest Trends...... 36 3.5.7 Verified Conservation Area (VCA) approach...... 37 3.5.8 Conservation Finance Alliance (CFA)...... 37 3.5.9 Conservation Finance Network (CFN)...... 37 3.5.10 The Conservation Fund (TFC)...... 38 3.6 A summary list of grant makers...... 38 3.7 Prioritising sources of funding...... 41 4. Options for conservation financing in the Maldives...... 41 4.1 Financing needs – national, atolls, and sites...... 42 4.2 Funding sources – national, international, and local...... 42 4.3 The case for a national approach...... 43 5. Strategic conservation financing in the Maldives...... 43 5.1 A national conservation fund...... 43 5.1.1 Management and use of national funding...... 44 5.1.2 Sources of funds – national and international...... 44 5.2 Subsidiary atoll conservation funds...... 44 5.2.1 Management and use of atoll funding...... 44 5.2.2 Sources of funds - International/national and local...... 45 5.2.3 A financing mechanism for the South Ari atoll and SAMPA...... 45 5.3 A subsidiary conservation investment fund...... 45 5.3.1 Management and use of funds...... 45 5.3.2 Sources of funds - international and national/local...... 45 5.4 The overall structure of the Maldives Conservation Fund...... 45 5.5 Potential barriers to implementation...... 46 6. Towards sustainable conservation financing in the Maldives...... 46 6.1 A national system of conservation areas...... 46 6.1.1 Propose the national Maldives Biosphere Reserve...... 47 6.1.2 Develop a national conservation areas plan...... 47 6.1.3 Determine resources and financing required...... 47 6.2 Subsidiary atoll systems of conservation areas...... 47 6.2.1 Propose subsidiary atoll ‘Biosphere Areas’...... 47 6.2.2 Develop conservation areas management plans...... 47 6.3 Launch the Biosphere Reserve and Conservation Fund...... 48

Sustainable Conservation Financing In The Maldives 5 LIST OF FIGURES Figure 1. What biodiversity is worth to the National economy each year - direct values ...... 12 Figure 2. Top ten of gross ODA for Mladives, 2014-2015 average, USD million...... 18 Figure 3. Maldives level of borrowing: Commitments by Fiscal Year (in millions of dollars)*...... 18 Figure 5. Demand and supply side of conservation finance...... 32 Figure 6. Funding Opportunities Matrix...... 41 Figure 7. Funding Opportunities Matrix...... 41 Figure 8. Proposed structure for the Maldives Conservation Fund...... 46

 6 LIST OF TABLES Table 1. Overview of BACF yearly expenditure from 2013 to 2016...... 14 Table 2. BACF income sources from 2013-2016...... 14 Table 3. Glance at 2014 Bbudget and revised estimates...... 17 Table 4. 2016 Approved loans, grants & technical assistance ($ million)...... 19

Sustainable Conservation Financing In The Maldives 7  8 MAP OF THE MALDIVES’ PROTECTED AREAS

MARINE PROTECTED AREAS - MALDIVES

70° E 72° E 74° E 76° E

Haa Alifu Atoll

Haa Dhaalu Atoll

Shivayani Atoll Bathalaa Region

6° N Noonu Laccadive 6° N Villingilee Atoll Kuredhi Kanduolhi Thila (Kuredhu Express) Sea Raa Atoll Fushivaru Dhigali Thila Haa Lhaviyani Hanifaru Atoll

Maahuruvalhi Reef Region Aligaa kanduolhi Mendhoo Region Baa Anga Atoll Faru Olhugiri Goidhoo Koaru Area The wreck of “Corbin” Dhiffushi Mathifaru Huraa Region kanduolhi Makunudhoo Kandu Olhi Rasfari Huraa Mangrove Region Thanburudhoo Kuda Lions Head (Dhekunu Thila Haa Nassimo Thila Thilafalhu Miyaruvani) Kaafu Atoll (Lankan Thila) Mayaa Thila Karibeyru Banana reef (Gaathu Giri) Region 4° N Fish Head Emboodhoo Kollavaane, centre of 4° N (Mushimasmigili Thila) Kanduolhi Gulhifalhu Medhuga Orimas Thila Guraidhoo Kandu Hurasdhoo Region Boamas kanduolhi Rangali Kandu Alifu Dhaalu South Ari Marine Atoll Vaavu MIyaru Kandu Protected Area Atoll Kudarah Thila Vattaru Filitheyo Kandu Faafu Atoll Meemu Muli and Fushi Kandu Atoll Dhaalu kandu Atoll

Lhazikuraadi Kudahuvadhoo kandu Thaa Atoll

Laamu

2° N Arabian Atoll 2° N Sea

Hthaadhoo Gaafu Alifu Atoll

INDIAN

Gaafu Dhaalu OCEAN Atoll 0° 0° Thundi Dhandimagu Area Kilhi Gnaviyani Atoll Bandaara Kilhi Eidhigali Kilhi

Seenu Atoll

70° E 72° E 74° E 76° E

Pakistan Nepal Legend Bhutan China Marine Protected Area Coral Reefs Bangladesh !. Large Marine Ecosystem Boundary (Unknown Boundaries) India Myanmar Seagrass Lao Administrative Boundary Marine Protected Area Viet Nam (Polygon) Mangroves Arabian Exclusive Economic Zone (EEZ) Sea Bay of Thailand Bengal Cambodia Bathymetry (depths in metres) Andaman Sea Gulf of Thailand South Sri China Sea Laccadive Lanka Sea 650060005500500045004000350030002500200015001000 500 0 Malaysia Maldives Singapore Data sources: [ INDIAN Indonesia Exclusive Economic Zone (EEZ) VLIZ (2012) Maritime Boundaries Geodatabase, version 7. OCEAN Coral Reefs:UNEP-WCMC (2010) Global Distribution of Coral Reefs 0 25 50 75 100 Java Sea Mangroves: Spalding et. al (2010) World Atlas of Mangroves British Indian Seagrass: UNEP-WCMC, Short FT (2005) Global distribution of seagrasses km Ocean Territory Bathymetry: The GEBCO_08 Grid, version 20100927, http://www.gebco.net Date: 27 Mar 2014 Coordinate System: GCS WGS 1984 Marine Protected Areas: Compiled from various sources including ReefBase, BOBLME (2011) and EPA (2013) Datum: WGS 1984 by WorldFish up to October 2013 as of 20132

2 See: http://boblme.reefbase.org/pdf/Marine%20Protected%20Areas%20-%20Maldives.pdf

Sustainable Conservation Financing In The Maldives 9 1. INTRODUCTION 2. CONSERVATION areas are protected.” The Government FINANCING has also identified 247 ‘environmentally The Republic of the Maldives is sensitive areas’ which need to be an country located CURRENTLY IN THE protected. These areas are identified southwest of India. It consists of MALDIVES ecologically significant places for which 26 atolls with nearly 1,200 islands specific permission from EPA to carry surrounded by approximately 300 This section provides an overview out development or other activities square kilometres of sea. The of the current state of conservation is required. Data on resource-use, population of roughly 450,000 has financing in the Maldives. It existing biodiversity and connectivity of a middle-income standard of living demonstrates that there is a solid basis ecosystems of these marine sensitive derived from a biodiversity economy of pilot programmes upon which the areas have not yet been fully collected. based primarily on tourism and fishing. country can further develop is national conservation financing approach. The long-term plan for these areas is This report supports the 4th aim the to identify sustainable management USAID-funded Project Regenerate options for these areas. Within the in Maldives – Reefs Generate 2.1 Conservation areas in Ministry of Environment and Energy2, 3 Environmental and Economic Resiliency the Maldives the Environmental Protection Agency for Atoll Ecosystems. The project is has overall responsibility for establishing implemented by IUCN in collaboration There are at least two major types of and maintaining the country’s system of with the Government of Maldives and conservation areas in the Maldives protected areas: is generously funded by USAID. The legally protected areas and resort principle purpose of this project is to island areas. There is also a third The section develops and develop an operational framework type of conservation area which is a implements strategies to preserve for incorporating resilience into temporary or permanent closure of the Maldives’ biodiversity and management decisions in the Maldives. sites necessary for fisheries such as declare protected areas; it manages The outcomes of this project are meant grouper spawning sites or bait fishing coastal protection projects in to contribute to identifying the steps sites under the fisheries law. coordination with the government, necessary to enhance understanding of as well as the private and public resilience and to promote tools that will This report addresses the two major sector. It researches and provides increase capacity of local community types of conservation areas with regard advice and technical assistance islands to manage marine resources. to scaling up conservation financing. about environmental pollution, it gathers data for geographic In this context, the project is providing As well, in this section, it highlights information. technical assistance to the Government current international recognition for of Maldives to establish sustainable conservation areas in the Maldives. financing mechanisms to support However, once established, most of climate-resilient marine management. the areas are under the authority of 2.1.1 Legally protected areas the Environmental Protection Agency4, Background research for this report an agency of the Ministry. The areas includes an analysis of existing and There are currently 42 legally protected within the Baa Atoll Biosphere Reserve, potential financing mechanisms in areas in the Maldives under the however, are under the Baa Atoll Maldives and an analysis of global Environment Protection Law (4/93). Biosphere Reserve Office5, another opportunities and practices. The report As noted in the REEFS proposal agency of the Ministry. makes recommendations on selecting (discussed further below) they cover strategic financing mechanisms and on “24,494 hectares (0.2% of Exclusive establishing a sustainable conservation Economic Zone) designated under 2.1.2 Resort island areas financing system in the country. the Environment Protection and This includes securing finances for Preservation Act (Act No. 4/93).” The Ministry of Tourism6 lists 126 establishing, maintaining and enhancing For all of the protected areas, the resorts. See Annex D for the complete core zones, buffer zones and marine Environmental Protection Agency (EPA) list. Most of these have direct managed areas (resort islands) within a is the principal manager and regulatory planned national Biosphere Reserve. authority. See Annex C for a complete 2 See: http://www.environment.gov.mv/ list of the country’s protected areas. v2/en/ 3 See: http://epa.gov.mv/ Furthermore, “Under the Law on The 4 See: http://www.broffice.gov.mv/en/ Maldives Fisheries (Act No. 5/87),14 5 See: http://www.tourism.gov.mv/ turtle nesting beaches and several 6 See: http://www.tourism.gov.mv/ grouper, bait fish and tuna spawning facilities/resorts/?lang=resorts

10 Introduction responsibility for conserving biodiversity and has special environmental features” in the areas in which are they are and is located at the north-eastern end situated. These include islands with of the Ari Atoll. sandy beaches, lagoons and house reefs – i.e. coral reefs between the resort island and deep ocean. 2.2 Use of biodiversity in the Maldives There are also 3 yacht marinas Maldives has a biodiversity economy. and 4 villas which will have some level of responsibility for biodiversity Both consumptive and non- conservation. There are three islands or consumptive use of biodiversity are key lagoons currently available for lease. drivers of economic development as the REEFS proposal (discussed further The Ministry of Tourism is responsible below) highlights: for setting and enforcing regulations for conserving biodiversity including the Maldives economy is dependent on protection of house reefs from tourism biodiversity and ecosystem services impacts including land use and waste. where the economy directly From 2011-2015, its efforts in the benefits from marine and coastal regard were supported by a UNDP/ biodiversity. A significant contributor GEF Tourism Adaptation Project7. to government revenue is through biodiversity dependent sectors. The total size of the leased tourism areas including their offshore house Biodiversity based sectors’ reefs make up a significant component estimated contribution to the of the conservation areas in the economy are as follows: Maldives. These areas are also tied directly to the financial resources made 98% of exports available from the tourism operations. 89% of GDP 71% of national employment 2.1.3 International recognition 62% of foreign exchange Baa Atoll was designated in 2011 as 49% of public revenue a UNESCO Biosphere Reserve8. It covers 139,714 hectares of which Tourism is the main contributor to "Biodiversity based GDP with 28.7% and the industry the core areas include 66.2 terrestrial directly depends on biodiversity. sectors’ estimated hectares and 3,850 marine hectares. For instance, snorkelling and diving contribution to the Baa Atoll has also been considered by form major tourist activities, where the Conference of the Parties (COP) of remarkable income is generated economy are as the Convention on Biological Diversity through shark and manta watching. follows: 98% of (CBD) as am Ecologically or Biologically In addition to this, the marine ecosystems and diversity is the Significant Marine Area (EBSA).9 exports, 89% of basis for fisheries as well.11

The CBD EBSA website also lists These figures come from the 2009 GDP, 71% of national Rasdhoo Atoll Reef as an EBSA.10 It is report on ‘Valuing biodiversity: The employment, 62% of “one of the few micro-atolls in Maldives economic case for biodiversity conservation in the Maldives.12 'This foreign exchange, and 7 See: http://www.tourism.gov.mv/ report includes the following figure 49% of public revenue" projects/tap-project/?lang=tap-project on the economic importance of 8 See:http://www.unesco.org/new/en/ biodiversity to the national economy natural-sciences/environment/ecological- (Figure 1). sciences/biosphere-reserves/asia-and- the-pacific/maldives/baa-atoll/ 9 https://www.cbd.int/ebsa/ebsas and https://chm.cbd.int/database/ 11 Note that we use bold italics to record?documentID=237768 highlight key sections in the quotes in 10 See: https://www.cbd.int/ebsa/ this report. ebsas and https://chm.cbd.int/database/ 12 See: http://broffice.gov.mv/en/files/ record?documentID=237767 valuing-biodiversity-report.pdf

Sustainable Conservation Financing In The Maldives 11 It states that: being the main drivers of economic financing must be linked to the growth. In the early 1980s, it was one sustainable management and use of • Tourism employs, directly or indirectly, 64,000 people or 58% of the workforce of the world's 20 poorest countries, the country’s living natural resources. with a population of 156,000. Today, • Tourism contributes public revenue of with a population of more than Rf 2.5 billion or 34% of all government 100% 80% Biodiversity-based sectors contribute:

60% National Employment (78,500 jobs) Public Revenue (Rf 2.5 billion) 40% 98% 89% Foreign Exchange (US$ 435 million) 71% 20% 62% 49% Exports (Rf 1.7 billion)

0% GDP (Rf 135 billion)

GDP Public Foreign Export

Employment Revenues Exchange Figure 1. What biodiversity is worth to the National economy each year - direct values

receipts 300,000, it is a middle-income country • Tourism brings in US$ 434 million with a per capita income of over 2.3 The REEFS proposal in convertible currency or 70% of all $6,300. foreign exchange earnings The Government of the Maldives • Tourism accounts for Rf 1,920 million However, the Bank goes on to say: has posted the Resilient Ecosystems in capital investments or 29% of all to Energize Future Sustainability investment Environmental sustainability is the (REEFS) funding proposal on the • Tourism generates direct and indirect fundamental development challenge CBD LifeWeb website.14 It provides consumption and spending of Rf in the country… From an economic a summary overview of the current 9,413.2 million growth and development standpoint, state of conservation finance in the • The current upstream contribution of the management of the country's Maldives and the overall ambitions of tourism to the economy is US$ 764 natural resources and complex the Government for whom this study is million or 67% of GDP ecosystems will continue to determine being prepared. • Fisheries yield processed products the country's comparative advantage worth Rf 960 million in company sales and growth prospects into the A key component of this proposal • Fisheries add Rf 12 million to the public future. Biodiversity-based sectors is to establish a Conservation Trust budget contribute more than 70% of national Fund (CTF): • Fisheries create 14,500 jobs with wages employment, more than half of public worth Rf 510 million revenues, almost the entirety of A Conservation trust fund (CTF) will • Fisheries produce export earnings worth exports, and close to 80% of GDP. be developed to establish a financial Rf 1.7 billion or 99% of all exports mechanism to compensate costs and Another use of the country’s biodiversity equitably share benefits of the financial The World Bank reports online is for disaster risk management. This funds received for this project. CTF will (accessed September 2017) as is a tangible example of an ecosystem be a legally independent grant-making follows:13 services. The REEFS proposal explains: institution that provide sustainable financing for biodiversity conservation For much of the last three decades, Based on the records, the common and often finance part of the long-term Maldives has been a development geological hazards in Maldives are; management costs of the Maldives success story. With more territorial heavy rainfall (flooding), swell waves, biosphere reserve system. The sea than land, marine resources tsunami, storm surges, windstorms and predictability and security that CTFs have played a vital role in shaping the earthquakes… The coral reef systems provide as a source of sustainable contours of economic development, are the main ecosystems buffering the financing increases managements’ with nature-based tourism and fishing islands against disasters by offering ability to do long-term environmental coastal protection. 13 See: http://www.worldbank.org/en/ 14 See: http://www.worldbank.org/en/ country/maldives/overview In short, sustainable conservation country/maldives/overview

12 Conservation financing currently in the maldives planning, and increases stakeholder portfolio, controls that restrict use, Procedure and other applicable laws and accounting and periodic financial support by reassuring people that and regulations of the Republic of reporting systems in each atoll. financial resources for conservation and Maldives. sustainable development activities. 1B CTF accountability and The purpose of the Fund is to co- A resource mobilization strategy, a monitoring finance activities that ensure that Baa financial management strategy and a Atoll is a world class model of atoll revenue generating mechanism will be ecosystem conservation in accordance developed to ensure that the Trust fund Develop a Trust Fund with its designation as a UNESCO is efficient, equitable and transparent. Accountability Framework World Biosphere Reserve. The The Baa atoll trust fund is a living objectives of the Biosphere Reserve • At Cooperate Level - Grand Reporting example of this approach in the Baa are: and Monitoring System, Annual report Atoll Biosphere reserve. to donors, Periodic workshops for donor • Conserving and enhancing the natural representatives, Trust Fund Quality and beauty, biodiversity and cultural heritage Establishment of the CTF is to include Compliance Report, Trust Fund Annual of Baa Atoll the following activities: Report • Promoting opportunities for the • At Project level – Allocation of understanding and enjoyment of the management fees to operational units, special qualities of Baa atoll by local 1A Conservation Trust Fund donor approval to individual grant communities and visitors (CTF) Establishment proposals, Inspection visits by officials • Supporting the sustainable development from an appropriate body. • Seed money for trust fund establishment, of Baa Atoll, including fishing, tourism used to create administrative and and the economic and social interests financial capacity and to initiate the 1C Currently funded project of those who live and work in the area. operation of the Trust Fund. linkages The Fund managers have determined a • Establishing a board. • Create partnerships with bilateral specific set of activities to fund: agencies which are potential technical partners Strategic Plan for Operation and After consideration of maintaining a Financial Management The funding requested to implement satisfactory operating reserve, at least these activities is $260,000. 85% of the annual total Fund revenues • Standard strategies for administrative shall be used for funding projects and and financial management of the CTF. programs in the following areas: • Grant administration Manual - This manual covers procedures and criteria 2.4 The Baa Atoll 1. Management of Baa Atoll Biosphere regarding; grant proposals, responding Conservation Fund Reserve; to applicants, grant reporting (BACF) 2. Protection, conservation and requirements, and grant monitoring and management of biological and natural evaluation. As noted above, the Baa Atoll resources and biodiversity in Baa Atoll; Biosphere Reserve secured UNESCO 3. Livelihood improvements for Baa Atoll recognition in June 2011. The Baa Atoll Establishing a Revenue residents in line with sustainability and Generating Mechanism Conservation Fund (BACF) established atoll ecosystem conservation policies; in 201315 finances activities in the 4. Research, awareness raising and Reserve: education related to protection, Resource Mobilization Strategy conservation and management of • That comprises the mix of mechanisms The Baa Atoll Conservation Fund is biological and natural resources, the government will employ to mobilize a trust fund established under the biodiversity and nature protection in the resources for project activities in Public Finance Act of the Republic of Baa Atoll. a manner that is efficient, equitable Maldives. 5. Other projects and programs as defined and transparent for all the atolls with by the Fund’s adopted and published biosphere reserves. The Fund is governed by the Fund annual and long-term spending Board of Directors and the Fund policies, provided that such projects Financial Management Strategy Managing Director in accordance and programs are fully supportive and directly linked to the Fund’s purpose. • Training and implementing the recording with the provisions of the founding and use of funds, including allocation documents, TOR and Rules of processes, crediting and debiting of accounts, cash and investment 15 See: http://www.bacf.gov.mv/en/

Sustainable Conservation Financing In The Maldives 13 The published Financial Reports17 The strengths or advantages of the (with some minor numerical BACF structure include: "The Baa Atoll discrepancies) show an income • the focus on conservation-related Conservation Fund exceeding expenditures yearly. In 2015, activities; expenditures increased significantly • a clearly defined geographic scope; and provides an excellent from previous years because of grant payments to the amount of MVR • the participation of key stakeholders, in-country notably the private sector. 598,869.00 or $38,471.34 at the pilot from which to learn current exchange rate (Table 1). lessons in designing a BACF (in MVR) 2013 2014 2015 2016 national Conservation Opening balance 5,195,059.00 5,832,618.28 6,941,818.94 Trust Fund " Income 1,073,710.50 1,813,900.00 2,246,857.00 1,893,961.00 Expenditure 440,251.92 704,698.94 1,232,995.00 4,451,754.00*

Closing balance 5,828,517.58 6,941,819.34 7,958,130.64 It has also established priority spending areas16 as follows: *Office management costs as per workplan

• Baa Atoll Biosphere Reserve Table 1. Overview of BACF yearly expenditure from 2013 to 2016. management program (30%); • Program for the protection, conservation INCOME 2013 2014 2015 2016 and management of biological and natural resources, biodiversity and Sales of Access 137,330.00 352,412.00 614,375.00 777,421.00 nature protection in Baa Atoll (30%); Permits • Livelihood improvement program for Partnership Fees 154,780.50 663,115.00 826,990.00 287,765.00 Baa Atoll residents, focusing on projects that are in line with sustainability and Tour Guide 4,320.00 19,273.00 15,420.00 15,370.00 atoll ecosystem conservation policies Registration Fees (30%); and Photography and 6,280.00 8,100.00 19,072.00 42,405.00 • Research, awareness raising Videography Permits and education program, focused on protection, conservation and Donations 771,000.00 771,000.00 771,000.00 771,000.00 management of biological and natural Total 1,073,710.50 1,813,900.00 2,246,857.00 1,893,961.00 resources, biodiversity and nature protection in Baa Atoll (10%). Table 2. BACF income sources from 2013-2016.

This general allocation of spending The sources of income include charges Its potential weaknesses or is appropriate, though over time the for tourism uses including access disadvantages, on the other hand, allocation to running the programme permits, tour guide registration, and include: should drop so that more resources filming permits. It also includes fees to • the potential for too much bureaucracy; can be made available for conservation be a partner and donations (Table 2). • the lack of participation from outside and livelihood programmes. users of the Baa Atoll; and The Baa Atoll Conservation Fund To date, the Fund is disbursing provides an excellent in-country • the sustainability of the funding flows, e.g. dependency on tourists. funds for conservation activities pilot from which to learn lessons in while maintaining its capital base. designing a national Conservation Trust Regarding the potential weaknesses, It is replenished regularly through Fund. An assessment of its strengths these can be mitigated by good contributions from the Government, the and weaknesses can provide value management and by engaging users sale of permits, exam registration fees, insights for the further development of from the area in the scheme, e.g. and, importantly, partnership fees from conservation financing mechanisms in through licensing fees for use. the private sector. the country.

17 see: http://www.bacf.gov.mv/en/ 16 See: http://www.bacf.gov.mv/en/ index.php/2013-05-29-05-08-06/2016- index.php/about-bacf/priority-spending- 12-08-11-00-18 areas

14 Conservation financing currently in the maldives The issue of financial sustainability which took place on 07 November 2.5 South Ari Atoll Marine requires further consideration of 2012. What has the Board discussed Protected Area other possible sources of funding. and decided on since then? Has it, One important source could be an for example, asked for and reviewed (SAMPA) allocated share of the government any external evaluations on the Declared in 2009, the South Ari Atoll revenues generated from the tourism effectiveness of the use of funds? In Marine Protected Area (SAMPA) is 42 sector, e.g. a share of the green tax the interests of public accountability, square kilometres, the largest Marine generated in the Baa Atoll area. Another these questions should be answered. Protected Area in the Maldives. It is source could an allocated share of protected because it is a significant the government revenues generated Financial reports, however, are habitat for whale sharks. It is located from fishing and farming in the Baa publicly available for 2013, 2014 and south of the atoll from I kilometre off Atoll. And, as discussed, further below, 2015.22 The reports are one-page the shorelines of the islands and this atoll and others could share in summaries of sources of funds and includes deep waters – 1,500 metres internationally-sourced funds which are mostly administrative expenditures. In deep within 5 kilometres of the islands coordinated at the national level. 2015, there is a budget line for BACF – which are ideal for large pelagic Grant Payments, but it is not itemised. species. On paper, and indeed on the website, Further, none of the financial reports the BACF looks like a solid and well- are independently audited. Again, With support from the IUCN thought-out structure for raising and this makes it difficult to assess the REGENERATE project, a management disbursing funds for conservation in effectiveness of the use of funds. plan is under development for SAMPA. the Baa Atoll. However, because of A 2014 technical paper23 prepared by the lack of transparency and public The lack of transparency and public IUCN for the Maldives Environmental accountability about how the funds accountability in the actual running Protection Agency (EPA) and Ministry of are being generated and used, of the BACF is a challenge for Environment and Energy concludes: stakeholders cannot judge whether the management effectiveness. It is not BACF is being effective. clear how the funds are being allocated A successfully implemented and whether the Board is reviewing the management plan is a goal in its As of 15 November 2017, the last effectiveness and efficiency of the use own right. It has the potential to annual report available publicly is for of these funds. It is also highly unlikely attract funds and investments from the year 2012.18 This report19 provides that stakeholders, and notably the global institutions that have an information on the Fund and on private sector entities who are paying interest in the long term sustainable the sources of funds for 2012. The into the Fund, will be satisfied with the use of natural resources… financial information, however, does lack of transparency and accountability. not appear to have been audited. This situation, of course, is a barrier It is important to note that an MPA There are no publicly-available reports which has to the potential to undermine is an attractive resource that can for the subsequent four years – 2013, the ability of the Fund to secure be marketed to global donors such 2014, 2015 and 2016. This situation additional resources from international as international aid organizations, makes accountability to stakeholders donors. intergovernmental organizations, and, indeed, to the general public corporations and so on, provided challenging. Thus, what looks quite good on paper, that a good management plan and even on the website, does not and an effective governance and Also, as of 15 November 2017, the look terribly good in practice. As called enforcement structure is in place. minutes of only one BACF Board for in SDG 16, there is still more to be Meeting has been published.20 These done to “build effective, accountable The approach underway at SAMPA minutes21 are for the first meeting and inclusive institutions at all levels” clearly links putting in place an effective in the Maldives. The establish of a management plan with the ability to conservation trust fund for the Baa mobilise resources. This is necessary 18 See: http://www.bacf.gov.mv/en/ Atoll is an important step forward, as park-level funding will be needed index.php/2013-05-29-05-08-06/bacf- annual-reports but it needs to secure the trust of in addition to funds available from the 19 See: www.bacf.gov.mv/en/files/BAA_ stakeholders including investors, local Government: TOLL_CONSERVATION_FUND_Annual_ communities, local businesses, and the Report.pdf public at large. 20 See: http://www.bacf.gov.mv/en/ index.php/2013-05-29-05-08-06/2013- 23 Paper available from the IUCN 06-09-06-48-05 Maldives office 21 See: www.bacf.gov.mv/en/files/ 22 See: www.bacf.gov.mv/en/index. Baa_Atoll_Conservation_fund_Board_ php/2013-05-29-05-08-06/2016-12-08- meeting_minutes__1_.pdf 11-00-18

Sustainable Conservation Financing In The Maldives 15 Regardless of the model, any ecotourism and other sustainable The aim of these plans is to activities that can contribute to the governance and enforcement align economic activities with the socio-economic development of the framework implemented in the MPA conservation and sustainable use local community; and establish a model would require a mechanism to for management of the protected of biodiversity so as to ensure that finance the costs of operations. Even wetland area. livelihoods are secured, and income is where government involvement in generated in ways which ensure at net • The second component, coral reef the governance, enforcement and monitoring aims to strengthen the coral positive impact on the biodiversity of operations in the MPA is large, there reef monitoring framework for improved the islands. needs to be a mechanism through decision making and management of which the MPA could supplement coral reefs and related ecosystems. expenditure from the government "Tourism constitutes budget. The Community-Based Wetland Management Plan for by far the biggest An understanding of the challenges and Island25 includes the following objective: contributor to GDP opportunities for sustainable financing of SAMPA can provide insights into General Objective 2 To propose at 28 percent, and is possible financing options at the park and promote the development of the greatest generator level. The paper identifies possible new and alternative sustainable fees at the park including entrance activities related to the protected of foreign exchange fees or user fees on visitors, licensing area that can help contribute to the vessels within the park, sharing income socio-economic development of earnings at more than from private sector concessions and the local community, in particular 60 % in 2014" donations. It also questions about the ecotourism. possibility of providing incentives for stakeholders to contribute and about Specific objective 2.1 To support the possibility of investment income. the creation of new business 2.7 Biodiversity-based and job opportunities linked to ecotourism, by using the public revenue 2.6 Fuvamulah and protected area as the main The sustainable utilisation of biodiversity natural tourist attraction. Hithadhoo Climate – both goods and services – generates a significant percentage of the country’s Change Adaptation Specific objective 2.2 To provide public revenue. Project new visitor facilities that will support ecotourism activities and With support from the World Bank, the provide new recreational services 2.7.1 Tourism sector Climate Change Adaptation Project and opportunities for the local (CCAP)24 has aimed “to demonstrate population In their October 2016 Maldives Country climate adaptive planning and Snapshot,26 the World Bank reports management through the adoption of Specific activities include renovating a that: a multi-sectoral approach in Addu and Lake House as an information centre, Gnaviyani atolls.” Project components building a small wooden platform for Tourism constitutes by far the biggest are relevant to conservation financing boat mooring, establishing a picnic area contributor to GDP at 28 percent, and including: with facilities, and installing a boardwalk is the greatest generator of foreign and a bird observatory. exchange earnings at more than 60 • The first component, wetlands conservation aims to establish a percent in 2014. Revenue from the protected wetland management The Community Based Wetland sector accounts for 38 percent of system to protect the wetlands and Management Plan for Hithadhoo Island government revenue, derived from biodiversity in the Hithadhoo protected has a similar objective on sustainable various taxes and lease of islands… area (Eydhigali Kilhi and Koattey) of activities. In addition to eco-tourism This includes all tourism-related Hithadhoo island, and Bandaara Kilhi, activities, sustainable farming practices taxes: (part of) import duty, Tourism and Dhandimagu Kilhi in Fuvahmulah included organic agriculture and locally tax, GST on Tourism, Airport Service island; support the development of made handicrafts are planned.

26 See: http://documents. 24 See: http://documents.worldbank. worldbank.org/curated/ org/curated/en/468281467986350615/ en/547601476772013083/pdf/109250- 25 Management plans received from the Maldives-Climate-Change-Adaptation- WP-MaldivesCountrySnapshots- Ministry of the Environment Project-CCAP HighRes-PUBLIC.pdf

16 Conservation financing currently in the maldives Charge, Royalties, land and resort rent, Fisheries remain a large source of fisheries sector’s contribution to Business Profit Tax. employment, the largest source the GDP has remained significant, of physical exports, one of the both in terms of employment, value added production and export Today, there is also a Green tax27 which few local industries supplying the returns” (MPND, 2004). is a tax payable by tourists who stay in touristic resorts, and a major source tourist resorts, tourist hotels and tourist of food supply for the local market. vessels.” It is paid per day of stay and In 2014, it accounted directly for However, a review of the 2015 Budget the current rate is $8. 1.7 percent of GDP and, represents in Statistics32 indicates that the fisheries a much larger share of employment sector, as important as it is in the There are different explanations on how and livelihood. economy, is not a significant source of the revenues from this tax are to be revenue for the government. used: The relative contribution of fisheries to the economy, as noted by the FAO,31 • The President of the Maldives has said that he is considering the introduction has decline in the face of the growth of of a new environment tax on all tourists the tourism sector: who use its resorts as a way of paying for the economic cost of global Fisheries account for 6 % of GDP, warming.28 (Former President Mohamed 11% of employment and 98% 32 See: http://www.fao.org/fishery/facp/ Nasheed, September 2009) MDV/en • “Levying this tax is necessary given 2014 Approved 2014 Revised Maldives’ fragile environment,” [Former] Minister of Tourism Ahmed Adheeb told Improted duty 1,717.0 1,1717.0 reporters. “Revenue generated from Business profit tax 1753.4 2,376.4 the tax will go in to managing the waste from local resorts and other islands.”29 Bank profit tax 327.1 482.4 (December 2014) Tourism goods & services tax 2,792.1 2,977.9 • Aim of this new tax is unclear at this point. Having it coincided with Goods & services tax 1,335.9 1,478.0 annual budget submission the main Airport service charge 347.6 436.5 aim seems generating income to the government.30(November 2014) Resort lease rent 1,1390.9 1,271.1

From the perspective of sustainable Other tax 220.4 968.2 conservation financing in a country Other non tax 1,789.7 2,772.5 where tourism is the largest sector and this sector is based on Total 11,414.1 14,479.9 biodiversity conservation, it would * In Million MVR seem appropriate that a portion of the revenues collected could be used to Table 3. Glance at 2014 Bbudget and revised estimates capitalise the proposed Conservation Trust Fund. of the country’s physical export commodities (DPND, 2009). "...in a country where tourism is the largest 2.7.2 Fisheries sector The fisheries sector has traditionally been the major contributor to the sector and this sector Regarding fisheries, the World Bank’s country’s economy. Nevertheless, is based on biodiversity Country Snapshot reports: since 1978, the fisheries contribution to the GDP has shown conservation, it would a continual declining trend. This is mainly due to the introduction and seem appropriate that a 27 See: https://www.mira.gov.mv/ GreenTax.aspx rapid growth of the tourism sector portion of the revenues in the economy and diversification 28 See: http://www.dailymail.co.uk/ travel/article-1211919/Maldives-plans- of the fishery related businesses collected could be tourist-tax-help-climate-change-fight. into other economic sectors such html as export and labour. However, “the used to capitalise the 29 See: http://maldives.net.mv/12120/ proposed Conservation maldives-introduces-green-tax/ 30 See: https://maldivesfinest.com/new- 31See: http://www.fao.org/fishery/facp/ Trust Fund." green-tax-in-2015 MDV/en

Sustainable Conservation Financing In The Maldives 17 Top Ten Donors of Gross ODA for Maldives, 2014-2015 average, USD million

Japan 5.840 France 5.055 International Development Association 5.019 Australia 4.473 AsDB Special Funds 2.551 World Health Organisation 1.766 OPEC Fund for International Development 1.640 Islamic Development Bank 1.396 Global Environmental Facility 1.345 Germany 1.329

Figure 2. Top ten of gross ODA for Mladives, 2014-2015 average, USD million

2.7.3 Other sectors 40 The government raises revenues for 36 across the economy through taxes, fees and leases. However, as indicated in the following table, most of its domestically-raised income is directly or 30 indirectly related to the tourism sector (Table 3). 22 2.7.4 International donors 20

Though the Maldives now ranks as a middle-income country, it continues 12 to receive significant development assistance, both in terms of grants and 10 8 loans.

OECD33 provides the follow table of its top donors (Figure 2). 0 0 The World Bank34 shows an increasing level of borrowing(Figure 3). 2013 2014 2015 2016 2017

The Maldives is also a recipient of other * Amounts include IBRD & IDA commitments in Millions (US$) development assistance financing Figure 3. Maldives level of borrowing: Commitments by Fiscal Year (in millions of dollars)*. including loans and grants from the Asian Development Bank (ADB). ADB’s current Fact Sheet35 provides the following information (Figure 4). 2.8 Other public-sector experiences in Because of the nature of the Maldivian 33 See: https://public.tableau.com/views/ economy, much of this international environmental financing OECDDACAidataglancebyrecipient_new/ assistance is directly or indirectly The Ministry of the Environment and Recipients?:embed=y&:display_count=y related to biodiversity. Energy (MEE) of the Government of es&:showTabs=y&:toolbar=no?&:showVi zHome=no the Maldives also has experience and 34 See: http://www.worldbank.org/en/ 35 See: https://www.adb.org/sites/ capacity in environmental financing country/maldives/overview default/files/publication/27779/mld-2016. which is pertinent to development of pdf

18 Conservation financing currently in the maldives the sustainable development in 2016 Approved loans, grants & technical assistance ($ million) infrastructure, tourism, fishing and the Loans economic and social interests of those who live and work in the country Sovereign Nonsovereign Technical Grants Total Assistance The details of such a multi- stakeholder and multi-investor - - 0.50 9.69 10.19 structure provide a basis for - = nil developing the Maldives Conservation Note: Grants & technical assistance include ADB-administered cofinancing Fund proposed later in this report. This is made clear in presentation a,b,c Cumulative lending, grant & technical assistance approvals from the Ministry which makes the Sector No. Total amount %4 following case for such a fund: d ($ million) • Instrument to access donor funds after Agriculture, Natural resources, 4 2.14 0.77 progressing out of LDC status; & rural development • Roll out Baa Atoll Conservation Fund model to the entire country; Education 8 14.25 5.12 • One integrated Fund for the Maldives; Energy 15 88.56 31.84 • Leverage co-finance from local partners (banks, private companies) Finance 6 12.93 4.65 • Increase efficiency of public Industry & trade 6 19.47 7.00 environmental investment expenditure; Public sector management 29 56.40 20.27 and • Allow MEE to refocus on its role as Transport 21 45.63 16.40 policy developer/implementer. Water & other urban 2 6.40 2.30 Most importantly, the presentation infrastructure & services states that “agreement should be Multisector 5 32.40 11.65 reached to link the MGF closely with work dedicated on getting Maldives Total 96 278.17 100.00 declared as UNESCO Biosphere a Grants & technical assistance include ADB-administered Reserve.” Thus, as presented cofinancing below, the proposal for a Maldives b Includes sovreign & nonsovreign loans & technical assistance Conservation Fund made in this report c Using primary sector in reporting of approvals is closely aligned with the thinking d Numbers may not sum precisely because of rounding and experience within the Ministry to establish the MGF. Table 4. 2016 Approved loans, grants & technical assistance ($ million).

• Facilitate, co-finance and enable a biodiversity financing strategy and 2.8.2 Fund for Renewable investments; action plan. This section highlights Energy System some of the relevant initiatives. Ҵ Renewable energy and energy efficiency Applications (FRESA) Ҵ Biodiversity and nature protection As part of its Renewable Energy 2.8.1 The proposed Maldives Ҵ Waste management and water Technology Development and management Green Fund (MGF) Applications Project (RETDAP), the Ҵ Other sectors Ministry conceptualised a Fund for A particularly important example is the • Leverage commercial and foreign Renewable Energy System Applications proposed development of a Maldives finance for environmental and energy (FRESA). This initiative provides an Green Fund (MGF).36 The purpose of investments; example of establishing a national fund this Fund was to: • Capacity development in project for another environmental issue – in preparation, project appraisal and this case, the application of renewable 36 See: http://www.asiapacificadapt. project finance; energy (RE) to “replace a portion of the net/sites/default/files/ppts/workshops/ • Create an enabling environment to future use of fossil fuel based systems fy2013/cansa-august/Day%201/ absorb larger amounts of environmental effectively contributing to the reduction National%20Efforts%20on%20 and energy investment finance; in the growth rate of Greenhouse Gas Climate%20Finance%20by%20 Governments-%20Cases%20from%20 • Investment by the fund will support (GHG) emissions.” Countires-%20Maldives%20.pdf

Sustainable Conservation Financing In The Maldives 19 FRESA envisioned “financing $28.2 million investment aiming at seen as the high-level policy framework economically viable projects utilizing “providing safe and secure freshwater for development assistance. RE technologies” through loans to to 105,000 people on the outer islands companies and households. A detailed of the Maldives, in response to climate In the Maldives, sustainable finance is set of criteria for loan eligibility as well change-induced water shortages” directly linked to the sustainable use as detailed modalities for financing through “introducing integrated of biodiversity. In the 2030 Agenda, have been prepared. The operational water supply systems, decentralized sustainable development is aligned with framework of this proposed fund is dry season water supplies, and the sustainable use of biodiversity: sound and provides a most useful improvements to groundwater quality.” reference point from within the Ministry We envisage a world in which every for establishing a conservation country enjoys sustained, inclusive investment fund as proposed later in 3. CONSERVATION and sustainable economic growth this report. FINANCING and decent work for all. A world in which consumption and production Regarding the source of funds, FRESA OPPORTUNITIES FROM patterns and use of all natural was to be capitalised by a UNDP/GEF ABROAD resources – from air to land, from project. It would then sustain itself as a rivers, lakes and aquifers to oceans recurring investment fund through the Internationally, there are several and seas – are sustainable… repayment of loans with interest which active conservation financing policy One in which development and the application of technology in turn could be used to finance new frameworks and initiatives underway. are climate-sensitive, respect RE projects. Again, for the investment These initiatives provide current and biodiversity and are resilient. component of a conservation financing ongoing insights into options for One in which humanity lives in strategy in the Maldives, FRESA offers sustainable conservation financing. harmony with nature and in which a starting point for developing the wildlife and other living species are operational framework of a conservation This section highlights some of more protected…. investment fund. relevant international financing initiatives for the Maldives. Some of these may be directly applicable to the Maldives. " In the Maldives, 2.8.3 Green Climate Fund However, most of them serve as implementing agency examples from which the Maldives can sustainable finance is learn. directly linked to the Currently MEE is undertaking an initiative to become a national sustainable use of implementing agency of an adaption 3.1 Conservation finance biodiversity." fund and for the Bank of the Maldives in multilateral policy to be accredited to the Green Climate Fund. The proposed project – Support frameworks We recognize that social and of Vulnerable Communities in Maldives Development finance as well as economic development depends to Manage Climate Change-Induced conservation finance is an increasingly on the sustainable management Water Shortages37 – envisions a important focus of international of our planet’s natural resources. sustainable development policies and We are therefore determined to programmes. This section provides conserve and sustainably use 37 See: https://www.greenclimate.fund/-/ an overview of particularly relevant oceans and seas, freshwater support-of-vulnerable-communities-in- multilateral policy frameworks. resources, as well as forests, maldives-to-manage-climate-change- mountains and drylands and to induced-water-shortages?inheritRedirect =true&redirect=%2Fwhat-we-do%2Fproj- protect biodiversity, ecosystems ects-programmes%3Fp_p_id%3D101_ 3.1.1 2030 Agenda for and wildlife. We are also determined INSTANCE_Hreg2cAkDEHL%26p_p_ to promote sustainable tourism, lifecycle%3D0%26p_p_ Sustainable Development to tackle water scarcity and water state%3Dnormal%26p_p_ pollution, to strengthen cooperation mode%3Dview%26p_p_col_id%3D_118_ Conservation finance is integral to on desertification, dust storms, land INSTANCE_4ZRnUzRWpEqO__ the 2030 Agenda for Sustainable degradation and drought and to column-2%26p_p_col_ 38 count%3D1%26_101_INSTANCE_ Development which is now widely promote resilience and disaster risk Hreg2cAkDEHL_delta%3D30%26_101_ reduction. INSTANCE_Hreg2cAkDEHL_ keywords%3D%26_101_ ator%3Dtrue%26p_r_p_564233524_ INSTANCE_Hreg2cAkDEHL_ resetCur%3Dfalse%26_101_INSTANCE_ advancedSearch%3Dfalse%26_101_ Hreg2cAkDEHL_cur%3D2 un.org/post2015/transformingourworld INSTANCE_Hreg2cAkDEHL_andOper 38 See: https://sustainabledevelopment.

20 Conservation financing opportunities from abroad Biodiversity conservation is also the 14.7 By 2030, increase the to prevent the introduction and explicit focus of two of the Sustainable economic benefits to small significantly reduce the impact of Development Goals (SDGs), of which island developing States and invasive alien species… SDG 14 is particularly relevant to the least developed countries from Maldives: the sustainable use of marine 15.9 By 2020, integrate ecosystem resources… and biodiversity values into national Goal 14. Conserve and sustainably and local planning, development use the oceans, seas and marine 14.b Provide access for small- processes, poverty reduction resources for sustainable development scale artisanal fishers to marine strategies and accounts resources and markets Goal 15. Protect, restore and 15.a Mobilize and significantly promote sustainable use of terrestrial 15.1 By 2020, ensure the increase financial resources from ecosystems, sustainably manage conservation, restoration and all sources to conserve and forests, combat desertification, and halt sustainable use of terrestrial and sustainably use biodiversity and and reverse land degradation and halt inland freshwater ecosystems and ecosystems biodiversity loss their services… 15.b Mobilize significant resources The targets for these goals set out a 15.2 By 2020, promote the from all sources and at all levels large agenda of biodiversity-related implementation of sustainable to finance sustainable forest actions which are in the need of management of all types of forests, management… financing or which require a change halt deforestation, restore degraded in existing financial flows such as forests and substantially increase 15.c Enhance global support for subsidies for unsustainable fishing. afforestation and reforestation efforts to combat poaching and These include the following: globally trafficking of protected species, including by increasing the capacity 14.1 By 2025, prevent and 15.3 By 2030, combat of local communities to pursue significantly reduce marine pollution desertification, restore degraded sustainable livelihood opportunities of all kinds… land and soil, including land affected by desertification, drought Of significance to conservation 14.2 By 2020, sustainably manage and floods, and strive to achieve a finance, are the SDGs on and protect marine and coastal land degradation-neutral world accountability and implementation: ecosystems… and take action for their restoration in order to achieve 15.4 By 2030, ensure the Goal 16. Promote peaceful and healthy and productive oceans conservation of mountain inclusive societies for sustainable ecosystems, including their development, provide access to justice 14.3 Minimize and address the biodiversity, in order to enhance for all and build effective, accountable impacts of ocean acidification… their capacity to provide benefits and inclusive institutions at all levels that are essential for sustainable 14.4 By 2020, effectively egulater development Goal 17. Strengthen the means of harvesting and end overfishing, implementation and revitalize the illegal, unreported and unregulated 15.5 Take urgent and significant Global Partnership for Sustainable fishing and… restore fish stocks in action to reduce the degradation Development the shortest time feasible, at least to of natural habitats, halt the loss of levels that can produce maximum biodiversity and, by 2020, protect These goals include several targets sustainable yield… and prevent the extinction of which are directly applicable to threatened species conservation finance, including the 14.5 By 2020, conserve at least following: 10 per cent of coastal and marine 15.6 Promote fair and equitable areas… sharing of the benefits arising 16.4 By 2030, significantly educer from the utilization of genetic illicit financial and arms flows, 14.6 By 2020, prohibit certain resources… strengthen the recovery and return forms of fisheries subsidies which of stolen assets and combat all contribute to overcapacity and 15.7 Take urgent action to… forms of organized crime overfishing, eliminate subsidies that address both demand and supply contribute to illegal, unreported and of illegal wildlife products 16.5 Substantially reduce unregulated fishing and refrain from corruption and bribery in all their introducing new such subsidies… 15.8 By 2020, introduce measures forms

Sustainable Conservation Financing In The Maldives 21 16.6 Develop effective, multi-stakeholder partnerships that land degradation… Public and private accountable and transparent mobilize and share knowledge, investments in innovations and clean institutions at all levels expertise, technology and financial technologies will be needed, while resources… keeping in mind that new technologies 17.1 Strengthen domestic will not substitute for efforts to reduce resource mobilization, including 17.17 Encourage and promote waste or efficiently use natural through international support to effective public, public-private and resources… developing countries, to improve civil society partnerships, building domestic capacity for tax and other on the experience and resourcing We acknowledge the critical revenue collection strategies of partnerships importance of biodiversity and the sustainable use of its components in 17.2 Developed countries Finance, trade, and accountability and poverty eradication and sustainable to implement fully their official multi-stakeholder partnerships are all development. We welcome the development assistance key means of implementation of the implementation of the global Strategic commitments… SDGs including SDGS 14 and 15 on Plan for Biodiversity for 2011-2020 biodiversity conservation. Hence, the and its Aichi Biodiversity Targets by the 17.3 Mobilize additional financial 2030 Agenda provides the overarching parties to the Convention on Biological resources for developing countries policy framework for the Maldives Diversity and we invite all parties to from multiple sources to develop its strategic approach to attend the thirteenth meeting of the conservation finance at local, national Conference of the Parties, to be held in 17.4 Assist developing countries and international levels. Mexico in 2016. in attaining long-term debt sustainability… And AAA promotes conservation 3.1.2 Addis Ababa Action finance: 17.5 Adopt and implement Agenda investment promotion regimes for We encourage the mobilization of least developed countries The financial dimensions of the 2030 financial resources from all sources Agenda and its SDGs are linked and at all levels to conserve and 17.10 Promote a universal, rules- to the international negotiations on sustainably use biodiversity and based, open, non-discriminatory development finance which resulted in ecosystems, including promoting and equitable multilateral trading the Addis Ababa Action Agenda (AAAA) sustainable land management, system under the World Trade of the Third International Conference combating desertification, drought, Organization… on Financing for Development39. The dust storms and floods, restoring 2030 Agenda specifically recognises degraded land and soil, and 17.11 Significantly increase the the AAAA as “an integral part” and promoting sustainable forest exports of developing countries, in that its “full implementation… is critical management. We welcome the particular with a view to doubling for the realization of the Sustainable commitment of States parties to the least developed countries’ Development Goals and targets.” the United Nations Convention to share of global exports by 2020 Biodiversity conservation is likewise Combat Desertification to support prioritised in the AAAA: and strengthen its implementation. 17.12 Realize timely We commit to supporting the efforts implementation of duty-free and All of our actions need to be of countries to advance conservation quota-free market access on a underpinned by our strong commitment and restoration efforts, such as the lasting basis for all least developed to protect and preserve our planet and African Union Great Green Wall countries… natural resources, our biodiversity and Initiative, and to providing support our climate. We commit to coherent to countries in need to enhance 17.13 Enhance global policy, financing, trade and technology the implementation of their national macroeconomic stability, including frameworks to protect, manage and biodiversity strategies and action through policy coordination and restore our ecosystems, including plans. policy coherence marine and terrestrial ecosystems, and to promote their sustainable use, build Importantly, AAAA also emphasises 17.14 Enhance policy coherence resilience, reduce pollution and combat the importance of international trade for sustainable development climate change, desertification and and trade finance for sustainable development: 17.16 Enhance the Global 39 See: http://www.un.org/esa/ffd/ Partnership for Sustainable wp-content/uploads/2015/08/AAAA_ International trade is an engine for Development, complemented by Outcome.pdf inclusive economic growth and

22 Conservation financing opportunities from abroad poverty reduction, and contributes Target 20 aims to implement the CBD in harmony with the Convention to the promotion of sustainable Strategy for Resource Mobilisation41 and other relevant international development. which was adopted at COP9. Key obligations. elements of this Strategy include the We acknowledge that lack of access following Goals: 4.2. To consider biodiversity offset to trade finance can limit a country’s mechanisms where relevant and trading potential, and result in missed Goal 1: Improve information base on appropriate while ensuring that they opportunities to use trade as an funding needs, gaps and priorities are not used to undermine unique engine for development. We welcome components of biodiversity. the work carried out by the WTO Goal 2: Strengthen national capacity Expert Group on Trade Financing, for resource utilization and mobilize 4.3. To explore opportunities and commit to exploring ways to use domestic financial resources for the presented by environmental fiscal market-oriented incentives to expand Convention’s three objectives reforms including innovative taxation WTO-compatible trade finance and the models and fiscal incentives for availability of trade credit, guarantees, Goal 3: Strengthen existing financial achieving the three objectives of the insurance, factoring, letters of credit institutions and, promote replication Convention. and innovative financial instruments, and scaling-up of successful financial including for micro, small and medium- mechanisms and instruments 4.4. To explore opportunities sized enterprises in developing presented by promising innovative countries. We call on the development 3.1. To enhance efforts in financial mechanisms such as banks to provide and increase market- mobilizing co-financing and other markets for green products, oriented trade finance and to examine modes of project financing for business-biodiversity partnerships ways to address market failures biological diversity. and new forms of charity. associated with trade finance. 3.2. To strive to increase official 4.5. To integrate biological diversity development assistance associated and its associated ecosystem 3.1.3 CBD Strategic Plan for with biological diversity… services in the development of Biodiversity new and innovative sources of 3.3. To mobilize public sector international development finance, As biodiversity is the basis of investments in biological diversity taking into account conservation the Maldivian economy and as and its associated ecosystem costs. conservation financing is a central services. theme of the CBD, its policies are also 4.6. To encourage the Parties directly relevant. Regarding biodiversity, 3.5. To establish, as appropriate, to United Nations Framework both the 2030 Agenda and AAAA new and additional funding Convention on Climate Change build on the CBD’s Strategic Plan for programmes through voluntary and its Kyoto Protocol to Biodiversity for 2011-202040 adopted contributions… take into account biodiversity at its 10th Conference of the Parties when developing any funding (COP10). Within this plan are the 3.7. To continue to support, mechanisms for climate change. 20 Aichi Targets of which the last is as appropriate, domestic explicitly about financing: environmental funds… Goal 5: Mainstream biological diversity and its associated ecosystem services Target 20: By 2020, at the latest, the 3.8. To promote biological diversity in development cooperation plans and mobilization of financial resources for in debt relief and conversion priorities… effectively implementing the Strategic initiatives, including debt-for-nature Plan for Biodiversity 2011-2020 from swaps. Goal 6: Build capacity for resource all sources, and in accordance with the mobilization and utilization and promote consolidated and agreed process in Goal 4: Explore new and innovative South-South cooperation as a the Strategy for Resource Mobilization, financial mechanisms at all levels with complement to necessary North-South should increase substantially from the a view to increasing funding to support cooperation current levels. This target will be subject the three objectives of the Convention to changes contingent to resource Goal 7: Enhancing implementation of needs assessments to be developed 4.1. To promote, where applicable, access and benefit-sharing initiatives and reported by Parties. schemes for payment for and mechanisms in support of ecosystem services, consistent and resource mobilization

40 See: https://www.cbd.int/sp/ 41 See: https://www.cbd.int/sp/

Sustainable Conservation Financing In The Maldives 23 Goal 8: Enhance the global diversity; (b) climate change; 3.2.2 Green Climate Fund (c) international waters; (d) land engagement for resource mobilization (GCF) in support of the achievement of the degradation, primarily desertification and deforestation; (e) chemicals Convention’s three objectives The GCF45 is a “stand-alone multilateral and wastes. financing entity whose sole mandate Though this Strategic Plan was is to serve the [Climate Change] negotiated nearly a decade ago, it Regarding the CBD, the GEF is guided Convention.” It “aims to deliver equal sets out some of the main policies and by and accountable to the CBD COP amounts of funding to mitigation and instruments which the Maldives can as follows: adaptation” and its investment priorities consider in strengthening its strategic are: approach to conservation finance. The GEF shall be available to • Transforming energy generation and continue to serve for the purposes access; of the financial mechanism for • Creating climate-compatible cities; 3.2 Conservation finance in the implementation of the CBD if it is requested to do so by the • Encouraging low-emission and climate- multilateral institutions Conference of the Parties pursuant resilient agriculture; Several multilateral institutions are to its Article 21, paragraph 3. • Scaling up finance for forests and active in conservation financing both In such respects the GEF shall climate change; and as donors and as facilitators of financial function under the guidance of, and • Enhancing resilience in Small Island flows. This section highlights some of be accountable to, the Conference Developing States (SIDS). of the Parties which shall decide the major initiatives at the multilateral As noted by the CBD Secretariat:46 on policies, program priorities and level, some of which already finance eligibility criteria for the purposes of biodiversity-related projects in the Many of the initial result areas of the the CBD pursuant to its Article 21, Maldives. GCF (October 2013) are of direct paragraph 1. and indirect relevance to the global The current GEF-6 Biodiversity objectives of the CBD. The initial 3.2.1 Global Environment Strategy44 continues to require result areas of the Fund are: … (g) Facility (GEF) co-financing for its funded projects, Sustainable land use management but now is taking a more strategic to support mitigation and adaptation; The GEF42 was set up just prior to the approach to attracting private sector (h) Sustainable forest management ‘Rio+0 Conference’ in 1992 which co-financing “including capital to support mitigation and adaptation launched new multilateral conventions providers, financial intermediaries, and including afforestation and reduction on biodiversity, climate change and other key partners (large corporations, of forest degradation; (i) REDD+ desertification. It now serves as a small and medium enterprises, implementation; (j) Adaptation financial mechanism for these and resource user groups, cooperatives, activities to reduce climate-related other conventions on persistent organic and individuals).” This is reflected in all vulnerabilities; … (m) Scaling up of pollutants, and mercury. four objectives of GEF6: effective community-based adaptation (CBA) actions; and (n) Supporting the • Improve sustainability of protected area 43 In 2015, the GEF was restructured systems; coordination of public goods such as with the following mandate: “knowledge hubs”. • Reduce threats to biodiversity;

The GEF shall operate, on the basis • Sustainably use biodiversity; and For example, the GCF has funded a of collaboration and partnership • Mainstream conservation and project on in Vietnam which include among the Implementing Agencies, sustainable use of biodiversity into “strengthening storm and flood production landscapes/seascapes and as a mechanism for international protection for coastal communities sectors cooperation for the purpose of in Viet Nam through… planting and providing new and additional grant IUCN is an official GEF Project Agency rehabilitation of mangrove forests”47 and concessional funding to meet Office and could play a role in bringing and another in Senegal on “increasing the agreed incremental costs GEF financing to the Maldives from the of measures to achieve agreed GEF-7 replenishment which is currently global environmental benefits in the being negotiated. 45 See: http://www.greenclimate.fund/ following focal areas: (a) biological home 46 See: https://www.cbd.int/financial/ gcf.shtml 42 See: https://www.thegef.org/gef/ 47 See: https://www.greenclimate.fund/-/ 43 See: https://www.thegef.org/gef/ 44 See: https://www.thegef.org/sites/ improving-the-resilience-of-vulnerable- sites/thegef.org/files/publication/GEF_ default/files/publications/GEF6-BD- coastal-communities-to-climate-change- Instrument-Interior-March23.2015.pdf Strategy-9162014-final-lores_0.pdf related-impacts-in-viet-nam

24 Conservation financing opportunities from abroad resilience of ecosystems and and avoid, or where avoidance is not 3.2.4 World Bank possible, minimise, and, where residual communities through restoration of the impacts remain, compensate/offset for productive bases of salinized lands.”48 In addition to hosting the GEF and being risks and impacts; and IUCN is an Accredited Entity and could a lead implementing agency for the • Promote improved environmental and support efforts from the Maldives to GEF, the World Bank has been actively social performance through the effective secure financing from the GCF. engaged in conservation financing use of management systems. for many years. This includes the IFC PS6 sets out the specific objectives integration of biodiversity into its recently 3.2.3 International Finance for biodiversity conservation and the revamped Safeguard Policies into a new Corporation (IFC) sustainable management of living Environmental and Social Framework natural resources as follows: which includes 10 Environmental and The IFC – the private sector arm Social Standards (ESSs).53 • Protect and conserve biodiversity; of the World Bank – has had an • Maintain the benefits from ecosystem investment focus on biodiversity for ESS6 on biodiversity is very closely services; and over 20 years. This has included aligned with the IFC PS6 and ensures managing GEF projects on small and • Promote the sustainable management that biodiversity is addressed in all the of living natural resources through the medium enterprise and on biodiversity World Bank’s investments. As well, adoption of practices that integrate investment funds. The IFC also has the World Bank “is one of the largest conservation needs and development a long-standing online Guide to priorities. international financiers of biodiversity Biodiversity for the Private Sector.49 conservation, with a portfolio of 245 PS6 identified key issues to address projects worth US$1.058 billion in the Most importantly, however, is the in biodiversity assessment and 10 years from FY2004 to FY2013.” prominence of biodiversity in the IFC management. These include habitats, Environmental and Social Performance legally protected areas, invasive alien The World Bank’s biodiversity Standards.50 The IFC Standards have species, ecosystem services, and programme54 also features two been adopted by major investment production of living natural resources. It partnerships on biodiversity grant banks worldwide – notably by the also includes a mitigation hierarchy for finance. These are: Export Credit Agencies of OECD biodiversity which includes avoiding and member countries and by the Equator minimising negative impacts, restoring Save Our Species – a partnership Principles Financial Institutions which habitats, and offsetting like-for-like or with IUCN and GEF to disseminate are responsible for more than 70% better. These need to be “designed to “funds from donors to existing of the international project finance achieve no net loss of biodiversity” and frontline conservation actors in developing countries. These are “preferably a net gain of biodiversity.” working to protect from extinction discussed further below. Thus, IFC financing ensured that the some of the world's most funding they make available conserves threatened species of plants and The core standards for biodiversity biodiversity and even to enhances it. animals” are set out in Performance Standards 1 and 6 (PS1 and PS6). IFC PS1 For the Maldives, the IFC Performance Critical Ecosystem Partnership Fund sets out the overall framework for Standards and the related standards of – a joint initiative with l'Agence the assessment and management of other multi-lateral financial institutions – Française de Développement, environmental and social risks and such as the Asian Development Bank51 Conservation International, the impacts as follows: or the New Development Bank52 – European Union, the Global provide a base for ensuring that private Environment Facility, the • Identify and evaluate environmental and Government of Japan, and the social risks and impacts; sector investment in the country has a net positive impact on biodiversity. MacArthur Foundation to provide • Adopt a mitigation hierarchy to anticipate This is, of course, particularly relevant grants funding for “the development for the tourism and fisheries sectors. It and engagement of civil society in Earth’s biodiversity hotspots, 48 See: https://www.greenclimate.fund/-/ is also relevant for the development of the most biologically rich and resilience-increase-of-ecosystems-and- harbours, bridges, artificial islands and communities-through-restoration-of-the- threatened areas” productive-bases-of-salinized-lands other projects which have an impact on 49 See: http://www.ifc.org/wps/ biodiversity. wcm/connect/topics_ext_content/ ifc_external_corporate_site/ 53 See: http://documents.worldbank. ifc+sustainability/learning+and+adapting/ 51 See: https://www.adb.org/site/ org/curated/en/383011492423734099/ knowledge+products/publications/ safeguards/environment pdf/114278-REVISED-Environmental- biodiversityguide 52 See: http://www.ndb.int/wp-content/ and-Social-Framework-Web.pdf 50 See: http://www.ifc.org/ uploads/2017/02/ndb-environment- 54 See: http://www.worldbank.org/en/ performancestandards social-framework-20160330.pdf topic/biodiversity

Sustainable Conservation Financing In The Maldives 25 With respect to the Maldives, the World integral part of the environmental 3.2.6 United Nations assessment process… The Bank is very clear about the importance Development of biodiversity conservation for the assessment will focus on the major threats to biodiversity, which country’s development. In the country Programme (UNDP) include destruction of habitat snapshot on the Maldives55 released in UNDP is currently implementing a and introduction of invasive alien October 2016, the Bank states: Biodiversity Finance Initiative (BIOFIN)59 species, and on the use of natural : BIOFIN currently works in 30 countries resources in an unsustainable Biodiversity-based sectors supporting governments in reviewing manner. The borrower/client contribute more than 70 percent will need to identify measures policies and institutions relevant for of national employment, over half to avoid, minimize, or mitigate biodiversity finance, determining of public revenues, almost all potentially adverse impacts and baseline investment and assessing exports, and close to 80 percent of risks and, as a last resort, propose the costs of implementing National GDP. Indeed, the new constitution compensatory measures, such as Biodiversity Strategies and Action mandates the protection of the biodiversity offsets, to achieve no Plans, quantifying the biodiversity environment as a key citizen’s net loss or a net gain of the affected finance gap. BIOFIN aims to implement right, demonstrating its importance biodiversity. comprehensive national resource to the future development and mobilization strategies at national level. prosperity of the country. From an In their 2016 fact sheet58 on the economic growth and development Maldives, ADB reports that: BIOFIN is supported by the EU, standpoint, the management of Flanders, Germany, Norway, the country’s natural resources The Asian Development Bank Switzerland and the GEF with a current and complex ecosystems will (ADB) has been supporting the budget of $28 million. It may areas of continue to determine the Maldives’ Government of the Maldives since comparative advantage and growth work are as follows: 1978. It has approved 29 loans prospects into the future. Both the Globally-led development of a new and grants totaling $248.53 million i. government and its development methodological framework for the Maldives, and has funded partners realize the importance of 67 technical assistance projects environmental sustainability and are An entirely new methodological totaling $29.65 million. placing a high priority on work in framework is being developed and this regard. piloted for undertaking national- In recent years, ADB operations level “bottom-up” analyses of in the Maldives have focused on the finance-relevant enabling 3.2.5 Asian Development Bank energy, transport, public sector context; for determining the current / baseline investment in (ADB) management, and private sector development. ADB has committed biodiversity; for quantifying the full The ADB56 is a regional multilateral resources to help upgrade the cost of meeting national biodiversity conservation targets and the financial institution and works alongside country’s commercial and domestic resulting finance gap; and for the World Bank, the IFC and others harbors, ensure reliability of power assessing the suitability of financial in the Asia region. Biodiversity supply to the capital and outer mechanisms and developing conservation is addressed in the Bank’s islands, boost economic growth, and reduce regional disparities in national resource mobilisation Safeguard Policy Statement.57 ADB’s living standards. strategies that are fully appropriated approach is similar to the approaches by national governments and take by the World Bank and the IFC: other key in-country stakeholders. The Bank’s support to commercial and The methodologies applied in The borrower/client will assess domestic harbours in the Maldives and the project will be refined through the significance of project related compliance with their Safeguard regional and global learning, and impacts and risks on biodiversity Policy Statement provides a direct link made available more widely. and natural resources as an to the topic of conservation finance. ii. Adaptation and implementation of this new methodological framework 55 See: http://documents. at national level worldbank.org/curated/ en/547601476772013083/pdf/109250- To help countries increase the WP-MaldivesCountrySnapshots- importance attributed to biodiversity HighRes-PUBLIC.pdf and in consequence bridge the 56 See: https://www.adb.org/ financing gap, the work at national 57 See: https://www.adb.org/ level will be led by Ministries of sites/default/files/institutional- 58 See: https://www.adb.org/sites/ document/32056/safeguard-policy- default/files/publication/27779/mld-2016. statement-june2009.pdf pdf 59 See: http://biodiversityfinance.net/

26 Conservation financing opportunities from abroad Finance, Economics or Planning play and the way forward,”64 aims to “monitor, over the long term, the and the Ministry of Environment. It accomplish the following: changes in value of ocean and coastal is articulated through the following ecosystem services around the world.” components: This study represents a working 1. Analyze the integration of biodiversity paper to evaluate current and and ecosystem services in sectoral potential approaches for banks 3.2.8 CBD LifeWeb and development policy, planning and and asset managers to understand budgeting and assess natural capital risks in Managed by the CBD Secretariat, 2. Assess future financing flows, needs portfolios… LifeWeb67 aims to “facilitate financing and gaps for managing and conserving that helps secure livelihoods and biodiversity and ecosystem services Part 1 of this Working Paper address climate change through 3. Develop comprehensive national provides a business case for both supporting the implementation of the Resource Mobilization Strategies to banks and asset managers to Strategic Plan for Biodiversity 2011- meet the biodiversity finance gap incorporate natural capital factors 2020 and the CBD Programme of Work 4. nitiate implementation of the Resource in their lending and investment on Protected Areas.” Mobilization Strategy at national level decision-making processes. It reviews the current understanding The LifeWeb website services as An important tool of the Initiative is of natural capital and illustrates a ‘crowd funding’ platform for CBD the BIOFIN Assessment Workbook60 its economic and financial market Parties and donors. The Parties can which provides guidance to countries risks… post their biodiversity-related funding on how to assess financial needs and requests which, in turns, provides how to mobilize the financial resources Part 2 of the study provides an funding information for public and required to fully implement their revised independent assessment of existing private donors. The funding requests NBSAPs. capabilities to manage natural are submitted by a national CBD capital risk in order to inform the focal point as a LifeWeb Expression Though BIOFIN is not active in the research and development phase of Interest in accordance with a Maldives, its work other island countries of the NCD project to map financial standardised template. such as Cuba, Fiji and the Seychelles sector risks from natural capital provides a useful reference point for dependencies and impacts… Since 2008, LifeWeb has facilitated work to be undertaken in the Maldives. roughly $1.65 billion in conservation Part 3 of the study provides a financing from 80 donors to roughly conceptual framework for the 110 projects in 80 countries. The major 3.2.7 United Nations implementation of the further stages donor in the initiative has been the Environment (UNEP) of the project to develop effective Government of Germany. natural capital-adjusted financial risk UNEP61 is a core implementing agency assessments. As noted above, the Maldives currently of the GEF and over the years has has a project listed on the website implemented many GEF biodiversity The UNEP TEEB (The Economics of – Resilient Ecosystems to Energize projects.62 Ecosystems and Biodiversity) Division Future Sustainability (REEFS)68 – for works on valuation which has relevance which they are seeking €18 million of The UNEP Finance Initiative63 has a to conservation finance. They have funding to complement $13 million of work stream on ecosystems which has a programme on Natural Capital funding securing from UNDP, the World been active in promoting the concept Accounting and a partnership with Bank, the GEF and USAID. The project of natural capital and in promoting the CBD Secretariat on “advancing the contains several elements with the the inclusion of natural risk in the cost System of Environmental-Economic overall aim of designating the Maldives of capital. A recent working paper, Accounting65 (SEEA) Experimental as a UNESCO Biosphere Reserve by “Towards Including Natural Resource Ecosystem Accounting (EEA).” TEEB 2017. Risks in Cost of Capital, State of also maintains an ocean and coasts information portal66 which aims to

60 See: http://www.biodiversityfinance. net/sites/default/files/content/ 64 See: http://www.unepfi.org/ publications/undp-biofin-web_0.pdf fileadmin/documents/NCD- 61 See: http://unep.org NaturalResourceRisksScopingStudy.pdf 67 See: https://lifeweb.cbd.int/ 62 See: http://unep.org/dgef/Biodiversity/ 65 See: http://www.teebweb.org/areas- tabid/1697/Default.aspx. of-work/advancing-natural-capital- 68 See: https://lifeweb.cbd.int/ accounting/ project?id=4B3FAC3D-C4E9-8180- 63 See: http://www.unepfi.org/work- DB2C-588876BC8523 streams/biodiversity/ 66 See: http://teeboceans.org/

Sustainable Conservation Financing In The Maldives 27 3.2.9 IUCN project proposal71 explains the Building biodiversity business proposal as follows: IUCN has been active in the field In 2008, IUCN and Shell jointly released of conservation finance since the The Kijani Investment Project is a a report on Building Biodiversity 1990s. In 1995, it hosted the first 12 year, $35 million project which Business72 which explored various international workshop on the will support biodiversity business opportunities for establishing profitable topic in support of financing the investment processes for in rural biodiversity business in the following implementation of the CBD. The Africa. It will be implemented as a joint sectors: report of this workshop69 set out the initiative of the International Finance •e Agricultur following categories of financing, Corporation (IFC) and IUCN – The • Forestry which are still relevant today: World Conservation Union and will be financed by the Global Environment • Non-timber forest products • External financing mechanisms Facility, the World Bank Group and • Fisheries and agriculture Mechanisms for donor funding others. The Project will work with • Biocarbon Mechanisms for loan capital some 80 investment opportunities taking these through various steps of • Payments for watershed protection Mechanisms for equity investment a bio-business investment process • Bioprospecting • Internal financing mechanisms from identification to exit. • Biodiversity offsets Using revenue as a source of • Biodiversity management services finance About $19 million will be invested in up to 20 small and medium • Ecotourism Efficient use of funds enterprises, primarily in the agriculture • Recreational hunting and sport fishing Reducing loss-creating distortions and tourism sectors, that will be Over the next decade, IUCN guided by $16 million in technical The report also advocated the actively managed many stakeholder biodiversity business tool inputs and established of a Biodiversity Business consultations on conservation related activities. The project timeline Facility (BBF) which would include a finance, notably through sessions of will commence with identifying funding mechanism for debt and equity the Global Biodiversity Forum before some 800 candidate opportunities investments: CBD COPs. It also actively engaged and providing technical inputs to about 10% of these in the form in CBD policy discussions on the ‘Funding Mechanism’ Access to of more detailed development of topic. This work ultimately influenced capital is a critical factor for any integrated biodiversity business the COP9 decision on a Strategy business, including biodiversity plans. From this pipeline of 80 deals, for Resource Mobilisation which is business. This compon ent of up to 20 of investment quality will be embedded in Aichi Target 20 on a BBF would invest in (or lend financed and managed through to a to) businesses that demonstrate financing. sustainable exit. the potential to deliver both The project will be successful if it (a) financial returns and biodiversity Conservation investment funds develops a portfolio of sustainable benefits. It would seek to attract biodiversity investments; (b) co-investors from both the public / philanthropic and commercial In the early 2000s, IUCN’ work on mainstreams biodiversity objectives sectors, targeting especially those conservation finance included a into African investment processes for who are keen to see this market partnership with the IFC to develop small and medium enterprises; and/ develop. The Funding Mechanism biodiversity business investment or (c) leads to the establishment of would provide loans and / or grant funds. One of these was known as an integrated bio-capital facility for biodiversity businesses in rural Africa. finance to deliver ongoing business the European Conservation Farming development assistance and Initiative (ECFI). Its aim was to invest biodiversity management support in biodiversity-friendly businesses in Though Kijani was endorsed by 25 GEF to selected businesses. Specialist the buffer zones of protected areas national focal points in Africa, it was never skills would be required to match in central and eastern Europe. The implemented. In fact, it was a bit ahead the level and type of finance with flagship investment programme was of its time. Senior management in both potential investment opportunities, the proposed IFC-IUCN-GEF Kijani the IFC and IUCN at the time felt that using a combination of debt, equity Initiative70 which “aimed to develop the risks were too high. Today, however, and other instruments. and invest in sustainable African insights from Kijani can help to shape biodiversity business.” The 2003 a conservation investment fund in the Maldives. 72 See: https://portals.iucn.org/library/ 69 See: https://www.cbd.int/doc/reports/ efiles/documents/2008-002.pdf fin-harare-ws-en.pdf 71 See: http://earthmind.org/files/ 70 See: http://earthmind.org/kijani/ kijani/2015/10/kijani-mar2003.pdf

28 Conservation financing opportunities from abroad For the Maldives, this report outlines Today GMPP is currently exploring The MMF is active in the Maldives and potential areas for investing in opportunities to develop “blue’ financial the ARO is overseeing the work of the conservation-friendly enterprise. It also mechanisms enabling investments in IUCN office in the country. provides additional guidance for setting marine conservation. This includes up a conservation investment fund. discussion with the Government of Luxembourg and others on establishing 3.3 Conservation finance a Blue Natural Capital Financing Facility in bilateral financial Global business and biodiversity and developing selection criteria for investing in coastal zone restoration institutions Today, IUCN’s Global Business and and protection. This section overviews the important Biodiversity Programme (GBBP)73 role that biodiversity assessment is actively exploring biodiversity GMPP is most keen to continue and management is now playing conservation financing opportunities, its support to the Maldives in its in the decisions of official Export particularly with respect to private development of a sustainable Credit Agencies. It also highlights sector financing discussed further in conservation financing strategy. the conservation-related financing of the section below on the Coalition for a selection of bilateral development Private Investment in Conservation. assistance agencies as well as GBBP is also involved in the Conservation financing in Asia government-owned biodiversity bank Credit Suisse exploratory work on in France. conservation finance mentioned below. The IUCN Asia Regional Office (ARO)76 manages and co-chairs the Mangroves With respect to its work on ‘net positive for the Future (MFF)77 initiative which 3.3.1 Export Credit Agencies impact’ with Rio Tinto, the Business is “a unique partner-led initiative (ECAs) and Biodiversity Offsets Programme to promote investment in coastal and others, GBBP aims is to ensure ecosystem conservation for sustainable Under a set of Common Approaches78 that large landscape-based projects, development.” MMF has a grants facility agreed in 2012 through the such as mines, delivers a net positive which offers grants of various sizes for Organisation for Economic Cooperation impact on biodiversity. This aim links demonstration projects: and Development (OECD), the Working directly to investment decision-making Party on Export Credits and Credit • Small Grant Facility (SGF) - SGF in terms of IFC PS6. Projects are the mechanism through Guarantees agreed the following: which funds are provided for small-scale projects. Each member country receives When undertaking a review, Members Marine conservation finance funds to establish a Small Grant should benchmark … all eight IFC Facility to deliver projects under two Performance Standards, in particular The Global Marine and Polar categories: less than US$10,000, and where justified and/or practicable due Programme (GMPP)74 has piloted between US$10,000 to US$25,000. to the size and/or structure of the one of the first registered Verified MFF also encourages co-financing of transaction… Conservation Areas in an industrial these projects, especially by the private sector. harbour of a gas factory in Yemen. This This means that the 38 Official Export VCA registration encourages internal • Medium Grant Facility (MGF) - Medium Credit Agencies (ECAs)79 all need to financing for marine conservation projects were introduced at the 7th address IFC PS6 on biodiversity in their meeting of the MFF Regional Steering activities over the lifecycle of the financing decisions. This agreement Committee held in November 2010. The project. The VCA Approach is is critical as the ECAs play an early budget range for medium projects is discussed further below. USD 50,000-100,000. These projects and key role in syndicated financing of go through a multiple-stage approval overseas projects, for many of which GMPP has also been promoting ‘blue process. biodiversity conservation is material. carbon’ policies to support financing • Large Grant Facility (LGF) - The budget coastal and marine conservation. A range for large projects is up to USD revised guide on financing mechanisms 300,000. MFF Large projects were for coastal blue carbon was released in implemented between 2008-2011. January 2016.75

downloads/wetlands_carbon_finance_ 78 See: http://www.oecd.org/ 73 See: http://iucn.org/about/work/ paper_final_lr.pdf officialdocuments/publicdisp programmes/business/ 76 See: https://www.iucn.org/about/ laydocumentpdf/?cote=TAD/ 74 See: https://iucn.org/about/work/ union/secretariat/offices/asia/ ECG%282012%295&doclanguage=en programmes/marine/ 77 See: http://www. 79 See: http://www.oecd.org/tad/xcred/ 75 See: http://cmsdata.iucn.org/ mangrovesforthefuture.org/ eca.htm

Sustainable Conservation Financing In The Maldives 29 3.3.2 US Agency for two institutions are now planning to 2. Sustainable Utilization of Natural Resources for Improvement of provide support for the implementation International Livelihoods in Vulnerable Communities of offset mechanisms in four African Development (USAID) countries (Madagascar, Mozambique, 3. Biodiversity Conservation through Management of Protected Areas and USAID80 is a major bilateral donor for Uganda, Guinea) that are experiencing Surrounding Buffer Zones biodiversity projects: considerable growth in extractive industry projects and where there This includes a Japan Public-Private USAID invests about $200 million are major biodiversity conservation Platform for REDD+85 which aims “to each year to conserve biodiversity challenges. The introduction of offset facilitate REDD+ activities that aim to in more than 50 countries, making mechanisms should facilitate the contribute towards addressing climate us one of the world’s largest funders involvement of private companies change, conservation of biodiversity, in this sector. Our programs work in in terms of conservation under a sustainable development, and poverty partnership with foreign governments, sustainable partnership with local civil reduction.” civil society, the private sector, and society and the competent authorities.82 local communities to comprehensively JICA is providing support to the address both direct threats and the Regarding the Maldives, through the Maldives on several activities including underlying drivers of biodiversity French GEF, they are providing support education, water resources, disaster loss. While most effort is focused on for climate change related activities:83 management, natural resources biologically significant areas, we also and energy, and environmental work in cities to strengthen policies, The 1.5 million € grant is intended management.86 raise public awareness, and tackle to support assessment and challenges like wildlife trafficking. monitoring of the consequences of climate warming on the 3.3.5 CDC Biodiversité USAID is also a Government Member Maldives Archipelago, by acquiring of IUCN and, as noted above, has environmental data, implementing CDC Biodiversité87 is an innovative funded the project in the Maldives operational tools and developing government-owned French bank which is producing this report. monitoring and assessment that was created by two Caisse des indicators. dépôts (CDC) divisions which focused on forestry and the environment. 3.3.3 Agence Française de 3.3.4 Japan International It works in the general area of Développement (AFD) Cooperation Agency biodiversity compensation including biodiversity offsets and payments for AFD supports the Critical Ecosystem (JICA) ecosystem services. Partnership Fund and the French In 2010, Japan hosted CBD COP10, Facility of the Global Environment JICA made an effort to promote its The bank is an example of a (known as the French GEF).81 In this biodiversity funding. A position paper commercial public bank investing in regard, it has a particular interest in at the time was titled: “Achieving biodiversity conservation. It provides innovative financing mechanisms Poverty Alleviation through Biodiversity one example of how a conservation such as conservation trust funds Conservation.”84 It highlighted several investment fund might function in and biodiversity compensation their conservation-related grant and the Maldives. mechanisms. They are now also technical cooperation projects. increasingly interested in biodiversity offsets: Today, JICA has a thematic area call 3.4 Conservation finance Natural Environment Conservation in private financial For ten years now, Agence Française which focuses support in three areas: de Développement and the French institutions 1. Climate Change Measures through Facility for Global Environment Sustainable Forest Management Though there has been considerable have supported the structuring and interest within private financial capitalization of several conservation institutions to engage in conservation trust funds in Africa. In addition, these 82 See: http://ideas4development.org/ financing, actual financial flows appear en/innovating-to-protect-nature-offset-a- new-source-of-financing/ 80 See: https://www.usaid.gov/ 83 See: http://www.ffem.fr/lang/ 85 See: http://www.jica.go.jp/english/ biodiversity en/site/ffem/accueil-FFEM/ our_work/thematic_issues/environment/ c8h0vm0000011kf3-att/PPP_leaflet.pdf 81 See: http://www.afd.fr/lang/en/home/ projets?actuCtnId=40300 projets_afd/AFD-et-environnement/ 84 See: http://www.jica.go.jp/english/ 86 See: https://www.jica.go.jp/maldives/ Biodiversite/innover-pour-mieux- our_work/thematic_issues/environment/ english/activities/index.html proteger-la-nature pdf/position_paper_01.pdf 87 See: http://www.cdc-biodiversite.fr/

30 Conservation financing opportunities from abroad to be small. The one exception is the IFC PS6. This guide is equally useful In the Maldives, it would be useful to private investments that are compliant for other construction projects relevant check whether national or international with the IFC Performance Standards to the Maldives such as harbours, financial institutions have signed up which aim to ensure at least no-net- bridges and artificial islands. PRI, the Equator Principles or other loss at the project level. such responsible financing initiatives.

This section looks at several the 3.4.2 UN-supported Principles initiatives underway to scale up private for Responsible 3.4.3 Credit Suisse conservation financing. Investment (PRI) Credit Suisse91 is currently exploring PRI90 is “an investor initiative in opportunities for conservation finance. 3.4.1 Equator Principles partnership with UNEP Finance They starting point is as follows: Financial Institutions Initiative and UN Global Compact.” It has almost 1,500 signatories including In order to preserve the natural habitats (EPFIs) asset owners, investment managers and processes that are vital for the The Equator Principles88 is framework and professional service partners. survival of human beings, animals and for financial institutions “for These signatories “believe that other species, significantly more capital determining, assessing and managing environmental, social, and corporate will be required than has so far been environmental and social risk in governance (ESG) issues can affect the deployed. To generate more private projects.” There are currently over 80 performance of investment portfolios” capital for this purpose, it is essential EPFIs worldwide which are responsible and have committed to the following six to extend the existing range of financial for 70% of the debt financing in principles: products and make investors more developing countries which are called aware of investment opportunities that Non-Designated Countries. Most Principle 1: We will incorporate ESG not only generate financial returns but importantly the Principles are based issues into investment analysis and also have a measurable positive impact directly on implementing the IFC decision-making processes. on the environment. Performance Standards: Principle 2: We will be active owners The bank has hosted several For Projects located in Non-Designated and incorporate ESG issues into our workshops and produced several Countries, the Assessment process ownership policies and practices. reports on the topic of conservation evaluates compliance with the finance.92 For example, a recent then applicable IFC Performance Principle 3: We will seek appropriate report93 was released in January 2016 Standards on Environmental and disclosure on ESG issues by the alongside an NGO workshop which Social Sustainability and the World entities in which we invest. took place in New York City. It is titled Bank Group Environmental, Health and “"Conservation Finance. From Niche Safety Guidelines. Principle 4: We will promote to Mainstream: The Building of an acceptance and implementation of Institutional Asset Class." The report Note that the Maldives is a non- the Principles within the investment sets out four core challenges which are designated country and, thus, foreign industry. holding back the growth of the market direct investment should comply with for conservation finance market” the Equator Principles and IFC PS6. Principle 5: We will work together • Little commercial support for early-stage to enhance our effectiveness in project ideas with scale-up potential; The Equator Principles Association implementing the Principles. • Substantial search and transaction is also involved in the Cross-Sector costs in connection with the 89 Biodiversity Initiative (CSBI) along Principle 6: We will each report on identification and implementation of with the mining and oil and gas our activities and progress towards conservation projects; sectors. CSBI aims “to develop and implementing the Principles. share good practices and practical tools” for implementing the IFC Biodiversity loss is highlighted as an 91 See: https://www.credit-suisse. Standards. These include a recent example of an environmental issue. com/ch/en/about-us/responsibility/ environment/biodiversity-natural-capital. guide for implementing the biodiversity Thus, the principles are a high-level html mitigation hierarchy which is central to commitment which encourages 92 See: http://www.conservationfinance. biodiversity-responsible financing ch/ including “proactively seeking investment 88 See: http://equator-principles.com/ 93 See: https://www.credit-suisse.com/ opportunities which offer solutions.” media/assets/corporate/docs/about-us/ 89 See: http://equator-principles.com/ responsibility/banking/conservation- index.php/cross-sector-biodiversity- finance-en.pdf initiative 90 See: http://www.unpri.org/

Sustainable Conservation Financing In The Maldives 31 Projects Funds Financial vehicle Investment Investors

Cash flow(s) Financial retaurn Conservation impact Nonfinancial return

Vehicles use distinct Diverse investor expectations regarding • Scaling strategies (replicate uniiform vs. • return aggregate heterogeneous) • Risk • Risk mitigation strategies (e.g., • Impact technicalassistance, collateral, gurantees) • Transparency of underlaying assets • Project maturities (early stage vs. proven concept vs. mature)

Figure 5. Demand and supply side of conservation finance.

• High perceived risk; and Identifying, deciphering, quantifying, as carbon credits and certified • The lack of scalability and replicability and – where possible – mitigating commodities. models for existing projects. the risks involved in conservation projects will make investors In so doing, its investments will: To address these challenges, it much more comfortable with the proposes that “three paradigm shifts will emerging asset class. reduce deforestation, mitigate be essential to overcoming some of the climate change, protect biodiversity key market barriers and enable faster It also makes clear, as indicated in the and provide a fair and sustainable growth.” These shifts or phases are following Figure 5, the conservation living to rural communities through described as follows: projects must generate cash flow to activities that offer investors attract investors. competitive returns. • Incubating – moving from idiosyncratic and disaggregated early-stage testing efforts to a business curation The conservation finance approach The overall approach is to invest in approach that brings together business, being developed by Credit Suisse “real assets (certified commodities and conservation, and technical know- and its partners, including IUCN, is agricultural produce) and environmental how and provides the necessary most appropriate to the situation in services (verified emissions reductions infrastructure and engagement to rapidly the Maldives. The country has two and other ecosystem services)” which prototype and test promising new ideas established sectors of biodiversity- generate cash flows for the investors. with scale-up potential. This approach based economic activity – tourism and Investments to date include the addresses how to move from a concept fisheries. Through bringing together following: to a commercial business model. ‘business, conservation, and technical • Taita Hills Conservation and Sustainable • Scaling – moving from ad hoc attempts know-how’ in a national strategic Land Use Project – Kenya to scale proven projects along a approach, these sectors could be standardized and mainstream scaling • Tambopata-Bahuaja REDD+ and recognised and encouraged as key approach, including – where necessary Agroforestry Project – Peru partners in financing the conservation and available – risk mitigation levers. • Cordillera Azul National Park REDD+ of the country’s biodiversity. This phase emphasizes steps that can Project – Peru be taken to remove barriers to scale. • Guatemalan Caribbean Forest Corridor • Mainstreaming – moving from tested, – Guatemala medium-scale project implementation 3.4.4 Althelia Ecosphere • Amazon Sustainable Beef - Brazil models to large-scale and established conservation finance products that are Althelia94 Ecosphere is an example In January 2016, Althelia Ecosphere attractive to the mainstream investment private conservation investment fund. announced plans to launch a new market. This phase focuses on putting It aims: $100 million Sustainable Oceans together financial products that have Fund in partnership with Conservation already overcome the scaling barriers, to invest in sustainable land International and the Environmental with an emphasis on aggregation. use activities that generate Defense Fund. Once launched, Importantly, the report emphasises the environmental assets, such this Fund may be a tangible source need to mitigate the perceived risk of of funding for conservation-related investing in conservation projects: 94 See: https://althelia.com/ invested in the Maldives:

32 Conservation financing opportunities from abroad The Sustainable Ocean Fund will Sustainability: by promoting sustainable EcoEnterprises Fund offers alternatives to damaging commercial or make investments into real assets tailored growth capital and livelihood activities that threaten critical and management improvements strategic guidance to innovative natural resources; in coastal fisheries, sustainable impact businesses in order to aquaculture projects, the • Mitigate Habitat Conversion: by scale and optimize their financial, seafood supply chain and other increasing the economic productivity environmental and social select coastal projects, whilst of surrounding buffer areas to reduce performance. For nearly 20 years, the need for encroachment into core applying best-in-class social and we have successfully proven our conservation landscapes and marine environmental governance. Target unique approach, managing two areas; impacts include improved food and funds that have financed over 30 climate security, livelihoods and • Stimulate Conservation companies across 11 countries. In ecological biodiversity. Engagement: by facilitating educational early 2017, we will launch our 3rd and inspirational experiences with nature fund, building on our track record that foster increased engagement of delivering portfolio results while 3.4.5 Conservation Capital of relevant constituencies in its generating fair and sustainable conservation. livelihoods for local communities, 95 Conservation Capital focuses and preserving our most important on supporting and investing Case studies of Conservation Capital’s asset: Planet Earth. in ‘conservation enterprise.’ A work which are available on their conservation enterprise is: website include the following: There may be opportunities for tourism and fishing businesses in the Maldives • Wild Carpathians: Developing Europe’s any commercial venture that Largest Private Sector Wilderness to seek funding from their 3rd fund. generates economic and social Reserve in Romania benefits in ways that actively • Building Pioneering Public-Private support meaningful conservation Partnerships for Significant Conservation 3.4.7 Livelihoods Fund outcomes. Landscapes in Kenya and Mozambique The Livelihoods Fund97 grew out of a • Sustainable Business Models for National Parks & Reserves: Kenya, wetland carbon partnership between "The conservation 98 Zimbabwe, Ethiopia & Rwanda Danone, IUCN and Ramsar: finance approach being • New Conservation Economies: developed by Credit Pioneering Conservation Tourism in In 2008, Danone, the Ramsar Ethiopia’s National Parks Convention on Wetlands and the International Union for the Suisse and its partners, • Opening all the Doors: Diversified Conservation of Nature (IUCN) including IUCN, is Conservation Finance through Hybrid Corporate Structures created the Danone Fund for Nature with the following objectives: restore most appropriate to • Innovative Financial Incentives for degraded ecosystems, redevelop Tourism: Linking Cost of Investment local economies and combat the situation in the Capital to Conservation Performance Maldives." climate change… Though they focus on terrestrial ecosystems, their approach A successful mangrove restoration pilot They aim to work with commercial to supporting and investing in project in Senegal motivated Danone to business in conservation landscapes to conservation enterprises is fully open the fund to outside investors. The achieve the following: appropriate to marine ecosystem Danone Fund for Nature thus evolved economy of the Maldives. into an independent entity in 2011 • Generate Conservation Finance: that directly supports the development or and was rebranded as the Livelihoods management of a conservation area Carbon Fund. Other companies or initiative, for example via lease, 3.4.6 EcoEnterprises Fund have since joined the fund including concession or entry fee structures; Schneider Electric, Crédit Agricole S.A., 96 • Build Conservation Incentives: by The EcoEnterprises Fund was one of Michelin, Hermès, SAP, CDC Climat, creating or increasing ownership of the first funds to invest in biodiversity- La Poste, Firmenich, Voyageurs du nature-based revenue flows to relevant friendly businesses in developing Monde. stakeholders, typically local communities countries. It describes itself as follows: and public sector agencies; • Optimize Environmental 97 See: http://www.livelihoods.eu/ 96 See: https://www.ecoenterprisesfund. 98 See: http://earthmind.org/wetcarbon/ 95 See: http://www.conservation-capital. com/ com/

Sustainable Conservation Financing In The Maldives 33 The Livelihoods Carbon Fund delivers Global Environment Facility, IUCN, start rebuilding the precious natural carbon offsets as a return to its NaturVest, and Rare. capital upon which we all depend. investors. In other words, it essentially invests in the supply of carbon credits. Of relevance to the Maldives will be the If successful, the NCP will ensure Of relevance to the Maldives are their working groups on coastal resilience that biodiversity considerations mangrove planting carbon projects in and sustainable coastal fisheries. Other are mainstreamed into business India and Malaysia. working groups are possible, and the financing and account practices. For Maldives may want to encourage a the Maldives, the concept of natural More recently, a new fund for family working group on conservation tourism. capital is another tool for promoting farming has been launched with a conservation finance. focus on sustainable agriculture and integrated landscape management. 3.4.9 Natural Capital Coalition This fund provides a finance return 3.5 Conservation finance in 100 to investors through “a coalition of The Natural Capital Coalition was private foundations and off-takers (companies, institutions, formally called the TEEB for Business governments) that will pay a fee for Coalition and grew out of the TEEB NGOs the raw materials, public goods and Studies. Today its “activities focus This section provides a selection of environmental services generated from on global stakeholder engagement, private foundations and non-profit/ the fund’s projects.” focused research and development of NGO initiatives related to conservation methods for natural capital accounting.” finance. Most foundation and NGO programmes operate at the national. 3.4.8 Coalition for Private Natural capital is defined as “the However, as indicated in this section, Investment in stock of natural ecosystems on Earth there are some with larger institutions including air, land, soil, biodiversity with an international focus which may of Conservation (CPIC) and geological resources” which relevance to the Maldives. CPIC99 was launched at the 5th IUCN “underpins our economy and society World Conservation Congress in by producing value for people, both 2016 In Hawaii. It is a “global multi- directly and indirectly.” The benefits of 3.5.1 Mava Foundation stakeholder initiative focused on valuing or accounting for natural capital enabling conditions that support a in business are to reduce risk, cut The Mava Foundation102 is an example material increase in private, return- costs, enhance brand reputation; and of a charitable private foundation which seeking investment in conservation.” It generate revenue. focuses primarily on philanthropic mission is as follows: financing for biodiversity conservation. A key initiative of the Coalition is the It was established in 1994 with the CPIC aims to facilitate the scaling Natural Capital Protocol (NCP)101 which support of a high net worth individual, of conservation investment by is currently open for stakeholder Luc Hoffmann, and the name comes creating models (“blueprints”) for feedback. The aim of the NCP is from the first initials of his four children – the successful delivery of investable described as follows: Maja, André, Vera, and Daria. Currently priority conservation projects, André Hoffmann is the President. connect pipeline providers of The purpose of the Protocol is to such projects with deal structuring help businesses systematically The Foundation funds programmes support, and convene conservation integrate their relationship with in three regions – the Mediterranean, project delivery parties with nature into their strategy and the Alpine Arc countries and coastal investors to execute investable operations. The Protocol is intended West Africa – and works supporting a deals. to encourage those companies that sustainable economy. Regarding the may not have yet fully realized the latter, they state: Though the coalition is just getting benefits of valuing natural capital to underway, it has already secured get started, and ultimately empower Our Sustainable Economy commitments of support from many all businesses to understand portfolio explores how to their natural capital risks and institutions reviewed in this report ensure economic prosperity, opportunities so that they can help including Althelia, Conservation Capital, within the resources of one reduce environmental decline and the Conservation Finance Alliance, planet, addressing the issue the Conservation Finance Network, of overconsumption of natural Conservation International, Credit resources beyond their capacity 100 See: http://naturalcapitalcoalition. to regenerate. Suisse, Earthmind, Forest Trends, the org/ 101 See: http://naturalcapitalcoalition. 99 See: http://cpicfinance.com/ org/protocol/ 102 See: http://mava-foundation.org/

34 Conservation financing opportunities from abroad With respect to biodiversity The EcoEnterprises Fund, noted The agreement introduces impact conservation, the Maldives is an above, was set up by TNC as an investing to debt restructuring and example of a sustainable economy early innovator in biodiversity business provides proof of concept for other which may be of interest to Mava. financing. Building on this experience, Small Islands Developing States in 2014 in partnership with J P Morgan (SIDS)–or more accurately Large Chase, TNC set up NaturVest105 as a Ocean Developing States (LODS)– 3.5.2 Oak Foundation “dedicated and more comprehensive to replicate… conservation finance platform.” It The Oak Foundation103 is another aims to secure over $1 billion in The restructuring will provide example of a foundation set up by impact investments for conservation. funding to support adaptation to a high net worth individual, Kristian NaturVest will get involved in potential climate change through improved Parker, to provide philanthropic conservation deals which meet the management of coasts, coral reefs financing for biodiversity as well following five criteria: and mangroves. as other social causes. Regarding 1. Support for The Nature Conservancy’s biodiversity, it has a special focus global strategies. Does the deal help The financing will promote on marine conservation. It’s support achieve a critical conservation priority of implementation of a Marine Spatial for climate change projects is also a region and a global priority? Plan for the entire Seychelles relevant. Exclusive Economic Zone, a territory 2. Conservation activities that generate approximately 3,000 times the size cash flows. Does the conservation The regional focus of its support for activity generate economic value? Does of their land mass. The deal will marine conservation is the North the transaction’s success rely on the also ensure approximately 400,000 2 Pacific, Arctic, Central America and participation of impact capital? Does km /98.9 million acres (an area Europe. For example, over the years, the participation of such capital allow larger than the size of Germany) Oak has funded a lot of work in support for more efficient deployment of other will be managed for conservation as marine protected areas (MPAs) of sustainable fisheries. More recently, it capital resources (e.g., philanthropy or within five years. has become interested in the challenge government funding)? of keep plastics out of the oceans. 3. Size of the conservation impact and The debt restructuring uses investment opportunity. If successful, a combination of investment Their support for work on small-scale will we move hundreds of millions of capital and grants to protect and dollars toward conservation outcomes fisheries and plastic waste are of reduce the vulnerability of the through this deal and related efforts? relevance to the Maldives. marine and coastal ecosystems 4. Replicability of the individual deals. Can of the Seychelles. It also provides we replicate the transaction using similar Seychelles with an innovative legal structures, capital structure and 3.5.3 The Nature Conservancy financial tool to restructure its debt collaborators to quickly get similar deals and allow its national government to (TNC) done in different places? free capital streams and direct them 5. Readiness to deploy capital. Can toward climate change adaptation TNC104 has a long history in the United we get the deal done in the near- and marine conservation activities States, and, as well, in Canada and term without major policy, political or that benefit their fisheries and Australia, securing philanthropic funding investment barriers? What needs to be tourism industries, and ultimately to buy lands for conservation: accomplished to close the deal (e.g., the livelihoods of their citizens fundraising, stakeholder approvals, In the United States, The structuring)? As the Maldives moves forward with its Nature Conservancy uses land conservation financing strategy, it may acquisition as a principal tool TNC has significant programmes in wish to explore whether such a debt of its conservation effort. The the Asia/Pacific region, notably in restricting deal may provide the needed Conservancy has helped protect Indonesia. NaturVest has implemented capital for implementing and effective approximately 21 million acres in an innovative debt restructuring for system of marine protected areas. the United States and more than marine conservation and climate 103 million globally. We currently adaptation deal for the Seychelles.106 own nearly 2 million acres in the This deal is particularly interesting to 3.5.4 Conservation US and hold more than 3 million the Maldives: acres in conservation easements International (CI) in the US. CI has a programme focusing on 105 See: http://www.naturevesttnc.org/ ‘Funding Conservation’ which is also 106 See: http://www.naturevesttnc. called ‘Investing in nature.’107 It includes org/business-lines/debt- 103 See: http://www.oakfnd.org/ restructuring/seychelles-debt- 104 See: http://www.nature.org/ restructuring/?intc=nvest.header.projects 107 See: http://www.conservation.org/

Sustainable Conservation Financing In The Maldives 35 the following components: financing is in the form of grants. 3.5.6 Forest Trends However, even the funding behind • Global Conservation Fund (GCF) 111 - Since 2001, the GCF has protected these two schemes is grant based. Forest Trends works on several 108 more than 80 million hectares (197 For example, Verde Ventures is conservation financing initiatives. The million acres) around the world and supported by Fonds Français pour approach is described as follows: contributed more than US$ 1 million in l'Environnement Mondial (FFEM), also wages to local economies. known as the French GEF. Forest Trends seeks to shift the • Carbon Fund – The Carbon Fund economic paradigm towards has become a leader in the field by CI works across the globe, but has recognizing the value in all channeling nearly US$ 20 million in not yet really invested in the Indian natural ecosystems, connecting carbon finance since 2009, resulting Ocean. The Maldives may be able to policy-makers, businesses, in emissions reductions that are the encourage CI to directed some of the communities, and investors equivalent of taking more than 1 million funding from its many initiatives for to develop new financial tools cars off the road for a year. marine conservation. to help carbon, biodiversity, • Conservation Stewards Program and water markets work for (CSP)– CI’s CSP works with locals conservation and sustainability. who agree to protect their natural 3.5.5e Rar resources and the benefits they provide, One of most well-known initiatives is in exchange for a steady stream of Rare109 focuses on “locally-led, the Ecosystem Marketplace112 which compensation from investors. sustainable resource management is “a leading source of news, data and • Critical Ecosystem Partnership Fund solutions rooted in behavior change.” analytics on markets and payments (CEPF) – CI is one of seven donors in the CEPF. This organization, founded in A good deal of the work addresses for ecosystem services (such as 2000, provides grants to communities, sustainable coastal fisheries with field water quality, carbon sequestration nonprofits and private sector partners projects in Indonesia, Mozambique and biodiversity).” It includes a that can help protect Earth’s most and elsewhere. section focusing on developments biologically rich, yet threatened, regions. in Biodiversity Markets which covers • Verde Ventures – CI’s Verde Ventures Rare is about to launch its first impact such topics as “biodiversity offsets, program provides access to funding in investment fund:110 conservation easements, certified the form of loans and grants to small biodiversity-friendly products and and medium-sized business around The Meloy Fund1, expected to services, bioprospecting, payments the world. launch in early 2017, is a $20M for biodiversity management, hunting • Conservation Leadership Programme impact investment fund created permits, and ecotourism.” (CLP) – The CLP, a partnership of to demonstrate the potential for three of the world’s leading biodiversity financial returns in the coastal Another well-known initiative is the conservation organisations, gives fisheries sector, thereby de- Business and Biodiversity Offsets funding to early-career conservationists risking the market for later-stage Program (BBOP)113 which is “is an in developing countries. investment. The Meloy Fund will international partnership of some 80+ • Althelia Climate Fund (noted above) make loans and equity investments leading conservation organizations, – A great example of how CI supports in fishing-related enterprises companies, governments, and partners with technical support and that support sustainable coastal financial institutions developing, testing funding is the Althelia Climate Fund, fisheries and critical marine habitat and implementing best practice on which brings much-needed private conservation in Indonesia and the biodiversity offsets.” BBOP aims to sector investment to projects that Philippines. reduce deforestation as an integral support corporate biodiversity mitigation part of global efforts to reduce CO2 This fund may at a later stage be a management to halt the loss of emissions... In early 2015, Althelia source of financing for the Maldives. It biodiversity and, where possible, bring repaid its loans totalling US$ 1.05 will also serve as a model for develop a about a positive biodiversity outcome. million, bringing CI’s largest and most conservation fund in the Maldives. It revised approach114 as of January successful monetary investment 2016 which includes the following in a private sector partner to a mission statement: close. The loans, extended by CI’s Global Conservation Fund, helped Althelia raise over US$ 120 million in 111 See: http://www.forest-trends.org/ investment capital. 112 See: http://www. 108 See: http://www.conservation.org/ ecosystemmarketplace.com/ Except for Verde Ventures and the loan projects/pages/verde-ventures.aspx 113 See: http://bbop.forest-trends.org/ to Althelia, most of CI’s conservation 109 See: https://www.rare.org/ index.php 110 See: https://www.rare.org/meloy- 114 See: http://www.forest-trends.org/ how/pages/funding-conservation.aspx fund#.WYV1a0puKwc documents/files/doc_5091.pdf

36 Conservation financing opportunities from abroad BBOP’s mission is to provide VCAs –through their transparency and 3.5.9 Conservation Finance leadership in the mitigation public accountability – can potentially Network (CFN) of impacts on biodiversity by attract a range of financing ranging from developing and encouraging government support to private grants CFN121 is an active US-based network transparency, accountability to impact investment to revenues from of “leading resource for practitioners, and the wide application of the sale of goods and services. In this investors, conservationists, best practice, science and the respect, VCAs provide a natural capital students, and others interested in highest standards to strengthen foundation for sustainable production using innovative finance to further avoidance, minimization, and consumption. environmental conservation.” CFN restoration and finally offsetting, is maintained through a partnership based on agreed principles. For the Maldives, the VCA approach of the Yale Centre for Business and may provide a useful tool for recognising the Environment (CBEY),122 and the This mission statement reflects a and accounting for conservation on Conservation Fund (TCF) (see below) growing interest to address the the resort concession including the and the Island Press.123 entire mitigation hierarchy and not management of their house reefs. just offsets. From a conservation Their website is another excellent financing perspective, relevant and in source of information on the topic. This some cases substantive financing for 3.5.8 Conservation Finance includes a succinct and up-to-date biodiversity can result from avoidance, Alliance (CFA) introduction to conservation finance minimisation and restoration, which is reproduced in an annex to irrespective of whether an offset is also CFA has recently started up again and this report. There is also a glossary of undertaken. In this regard, their work its website has been relaunched.117 terms124 and list of conservation finance is closely aligned with the IFC PS6 They describe themselves as follows: videos.125 The section on Oceans126 is and relevant to engaging large scale of particular relevance to the Maldives. development projects in the Maldives The CFA is a global and to ensure net gains for biodiversity. collaborative network of volunteer members, who take part in CFA's 3.5.10 The Conservation Fund Working Groups (WG), Task (TFC) 3.5.7 Verified Conservation Forces (TF), Executive Committee (ExCo) and Secretariat. The 127 Area (VCA) approach TFC is a US-based NGO which network’s mission is to promote “devotes 96% of its annual budget The VCA approach115 is hosted by sustainable financing for biodiversity directly to conservation programs and Earthmind116 and supported by an conservation worldwide. just 1% to fundraising.” It has “protected international network of government and more than 7.5 million acres across non-government partners, including Of interest to the Maldives is the the country” through “support from several listed in this report. VCAs are excellent online library and, in particular, individuals, foundations, corporations a new transparent, and inclusive asset their guidance on environmental funds. and government agencies.” class of natural capital. In terms of CFA’s Environmental Funds Tool Kit118 the CBD Aichi Target 11, VCAs are contains a wealth of publicly available an effective area-based conservation information including the reports of the measure encouraging stakeholders to RedLAC Capacity Building workshops.119 121 See: http:// supply and finance conservation beyond For example, Workshop 10 was on conservationfinancenetwork.org/ legally protected areas. ‘Extractive Industries – Opportunities for 122 See: http://cbey.yale.edu/ Environmental Funds’ and is backed 123 See: https://islandpress.org/ An audited conservation management up by a guidance document in three 124 See: http://www. plan is required for VCA registration languages and a full reference library conservationfinancenetwork.org/ lexicon/13 and, according to the requirements development by Earthmind.120 125 See: http:// set out in the VCA Standard, this plan conservationfinancenetwork. must be aligned to the conservation org/2016/01/12/explore-our- issues and approaches set out in IFC conservation-finance-video-playlists PS6. As well, to remain on the VCA 126 See: http://www. Registry, an annual audited conservation 117 See: http://www. conservationfinancenetwork.org/forum- conservationfinancealliance.org/ topic/oceans performance report is required. 118 See: http://www. 127 See: http://www.conservationfund. conservationfinancealliance.org/ org/ environmental-funds-toolkit/ 115 See: http://ConserveAreas.org 119 See: http://redlac.org/ 116 See: http://earthmind.org 120 See: http://earthmind.org/redlac10/

Sustainable Conservation Financing In The Maldives 37 Though much of TCF’s funding is Resources for Food and Agriculture - Disney Conservation Fund grant based, it also operates a Natural - International Tropical Timber - Earthwatch Institute Capital Investment Fund (NCIF)128 Organization - EcoPix Conservation Photography which helps “innovative entrepreneurs - Australia — Australian Center for - Emerging Wildlife Conservation Leaders International Agricultural Research build locally-owned enterprises that - Ernest Kleinwort Charitable Trust create lasting jobs and community - Brazil — Brazilian Agricultural Research - European Outdoor Conservation Corporation wealth, while using natural resources Association responsibly.” Focus areas for loans - Japan — Japan International Research - Fondation Nature & Découvertes include energy and water conservation, Center for Agricultural Sciences - Fondation Segré local food systems, recycled materials, - United States of America — Department and essential services to distressed of Agriculture - Ford Motor Company communities. - Agropolis Foundation - Future for Nature Foundation - Archer Daniels Midland Company - Hermès Enterprise Foundation The structure of this Fund – partly - Cargill - Holohil Systems, Ltd. grant based for core conservation - CS Fund and Warsh-Mott Legacy - Idea Wild activities and partly investment based - Inter-Research Science Center for conservation-friendly enterprise – - Ekhaga Foundation can provide insights to structing such a - French Committee for International - Jana Robeyst Trust Fund national fund in the Maldives. Solidarity - J.M. Kaplan Fund - Fruit Tree Planting Foundation - J.R.S. Biodiversity Foundation - Global Forest Watch - John D. and Catherine T. MacArthur 3.6 A summary list of grant - Innocent Foundation Foundation makers - International Tree Foundation - John Ellerman Foundation - Nestlé Foundation - Keidanren Nature Conservation Fund The Terra Viva Grants Directory129 - Lawrence Foundation provides a useful list of grant makers - Program for the Endorsement of Forest and current funding opportunities Certification - Lighthouse Foundation relevant to the conservation and - Rabobank Foundation - Liz Claiborne and Art Ortenberg sustainable use of biodiversity. - Right Sharing of World Resources Foundation It includes the following funding - Rothamsted International - Marisla Foundation organisations, some of which were - Sea Pact - Marsh Christian Trust reviewed in the preceding sections. - SEED Foundation - Mava Foundation One of the tasks of a newly established - Mitsubishi Corporation Maldives Conservation Fund, as further - Mohamed bin Zayed Species discussed below, could be to work Group 2: Biodiversity, Conservation Fund through this Directory, funder by funder, Conservation, Wildlife - Monarch Butterfly Fund to create a short of list of current - Convention on Biological Diversity prospective donors. - Morris Animal Foundation - Convention on Migratory Species - Nagao Natural Environment Foundation - Ramsar Convention on Wetlands - Nando and Elsa Peretti Foundation Group 1 Agriculture, Fisheries and - United Nations Educational, Scientific, - National Fish and Wildlife Foundation and Cultural Organization Forestry - National Geographic Society - Spain — Biodiversity Foundation - Common Fund for Commodities - Neotropical Grassland Conservancy - United Kingdom — Darwin Initiative - Consultative Group on International - Ocean Foundation - United States of America — Tropical Agricultural Research - Ocean Park Conservation Foundation Forest Conservation Act - European Commission — Maritime - Overbrook Foundation Affairs and Fisheries - United States of America — U.S. Fish and Wildlife Service - Pacific Asia Travel Association - Food and Agriculture Organization of the - PADI Foundation United Nations - Aeon Environmental Foundation - Panthera - International Fund for Agricultural - Audubon Naturalist Society Development - Blue Action Fund - Paul M. Angell Family Foundation - International Treaty on Plant Genetic - British Ecological Society - People’s Trust for Endangered Species - Conservation International - Prince Bernhard Nature Fund - Pro Natura Fund 128 See: http://www.conservationfund. - Conservation Leadership Programme org/what-we-do/natural-capital- - Critical Ecosystem Partnership Fund - Rainforest Trust investment-fund 129 See: http://terravivagrants.org/

38 Conservation financing opportunities from abroad - Rapid Response Facility - ENGIE Corporate Foundation - European Commission — Humanitarian - Rare - Future of the Carbon Market Aid and Civil Protection - Rufford Foundation - Governors’ Climate and Forests Task - European Commission — Research and Innovation - Save Our Species Force - Global Environment Facility - Save Our Seas Foundation - KR Foundation - OPEC Fund for International - SavingSpecies - Livelihoods Funds Development - SeaWorld and Busch Gardens - Minor Foundation for Major Challenges - United Nations Development Program Conservation Fund - Renewable Energy and Energy - United Nations Environment Program - Shared Earth Foundation Efficiency Partnership - World Bank - Smithsonian Tropical Research Institute - Stiftung Mercator - Australia — Australian Agency for - Total Foundation - System for Analysis, Research, and Training International Development - Trust for Mutual Understanding - William and Flora Hewlett Foundation - Austria — Austrian Development - Van Tienhoven Foundation Agency - Wuppertal Institute - Waitt Foundation - Belgium — Belgian Development - Zayed Future Energy Prize - Walton Family Foundation Cooperation - Weeden Foundation Group 4: Water Resources - Belgium — Flanders Department of Foreign Affairs - Western Indian Ocean Marine Science - Asian Development Bank Association - Brazil — Brazilian Cooperation Agency - Akvo - Whitley Fund for Nature - Canada — Department of Foreign - Blue Planet Network - Wildlife Conservation Network Affairs, Trade, and Development - Coca-Cola Foundation - Wildlife Conservation Society - Canada — International Development - Eable Foundation Research Center - World Conservation Union (IUCN) - FEMSA Foundation - Chile — Chile International Cooperation - World Land Trust - France Libertés Foundation Agency - World Wide Fund for Nature (WWF) - Global Nature Fund - Cyprus — CyprusAid - Yves Rocher Foundation - Heineken Africa Foundation - Czech Republic — Czech Development Agency - Japan Water Forum Group 3: Energy, Climate Change - Denmark — Ministry of Foreign Affairs - Kurita Water and Environment - Asia-Pacific Network for Global Change Foundation - Estonia — Ministry of Foreign Affairs Research - Prince Sultan bin Abdulaziz International - Finland — Ministry for Foreign Affairs - Climate for Development in Africa Prize for Water - France — French Development Agency - Green Climate Fund - Rabobank Employees Fund - France — French Global Environment - Nordic Climate Facility - Royal Bank of Canada Facility - United Nations Framework Convention - Stockholm International Water Institute - France — French Research Institute for on Climate Change Development - Suez - United Nations Industrial Development - Germany — German Federal Ministry - Swiss Re Foundation Organization for Economic Cooperation and - World Meteorological Organization - Well Aware Development - Finland — Energy and Environment - Women for Water Partnership - Greece — Hellenic Aid Partnership - World Water Council - Hungary — Ministry of Foreign Affairs - Germany — German Federal Ministry for and Trade the Environment, Nature Conservation, Group 5: Cross-Cutting Funders - Iceland — Icelandic International and Nuclear Safety - Arab Fund for Economic and Social Development Agency - Ashden Trust Development - India — Indian Technical and Economic - AXA Research Fund - Caribbean Development Bank Cooperation Program - Belmont Forum - Commission for Environmental - Ireland — Development Cooperation - Charles Stewart Mott Foundation Cooperation Ireland - Climate and Development Knowledge - Commonwealth Foundation - Italy — Italian Development Cooperation Network - Development Bank of Latin America - Japan — Japan Fund for Global - DOEN Foundation (CAF) Environment - EKOenergy - European Commission — Development - Japan — Japan International and Cooperation Cooperation Agency - Energy Foundation - European Commission — Environment - Latvia — Ministry of Foreign Affairs

Sustainable Conservation Financing In The Maldives 39 - Lithuania — Lithuanian Development - Avina Stiftung - Nippon Foundation Cooperation - Beit Trust - Noel Buxton Trust - Luxembourg — Ministry of Foreign - Bestseller Foundation - Oak Foundation Affairs - Bill & Melinda Gates Foundation - One Percent for the Planet - Malta — Ministy for Foreign Affairs - Both ENDS - Orskov Foundation - Mexico — Mexican Agency for - Bromley Trust - Patagonia Environmental Grants International Development Cooperation - Building and Social Housing Foundation Program - Netherlands — Ministry of Foreign - Paul K. Feyerabend Foundation Affairs - Caterpillar Foundation - Polden-Puckham Charitable Foundation - New Zealand — New Zealand Aid - Charles Hayward Foundation - Prince Albert II of Monaco Foundation - Norway — Norwegian Agency for - Chrysalis Trust Development Cooperation - Conservation, Food, and Health - Purley Overseas Trust - Poland — Polish Aid Foundation - Rainforest Action Network - Portugal — Portuguese Institute for - Conservation Strategy Fund - Rescued Tools Foundation Cooperation and Language - CRDF Global - Right Livelihood Award Foundation - Slovakia — Slovak Aid - David and Lucile Packard Foundation - Rockefeller Brothers Fund - Slovenia — Ministry of Foreign Affairs - DigitalGlobe Foundation - Rockefeller Foundation - South Korea — Korea International - Donner Canadian Foundation - Roddenberry Foundation Cooperation Agency - Draper Richards Kaplan Foundation - Rolex SA - Spain — Spanish Agency for - Earthwatch Institute - Royal Geographical Society International Development Cooperation - Ecologia - Royal Society - Sweden — Swedish International - Energy Globe Foundation - Sahee Foundation Development Agency - Eppley Foundation - Saint Andrews Prize for the Environment - Switzerland — Swiss Agency for Development and Cooperation - Erbacher Foundation - Seeding Labs - Taiwan — Taiwan International - Eurasia Foundation - Soest Third World Group Foundation Cooperation and Development Fund - Explorers Club - South Asian Network for Development - Turkey — Turkish International - Fondation Ensemble and Environmental Economics Cooperation and Development Agency - Ford Foundation - Stockholm Resilience Center - United Arab Emirates — Dubai - G. Unger Vetlesen Foundation - The Big Give International Award - Gadfly rojectP - The International Foundation - United Kingdom — Department for - German Federal Environmental - The Pollination Project International Development Foundation - Thousand Currents - United Kingdom — Newton Fund - Global Development Network - Tiffany & Co. Foundation - United Kingdom — Scottish International - GlobalGiving - Tinker Foundation Development Fund - Google Dot Org - Tools with a Mission - United States of America — African Development Foundation - Hongkong Bank Foundation - Toyota Foundation - United States of America — - International Foundation for Science - Toyota Motor Corporation Environmental Protection Agency - Jephcott Charitable Trust - Triodos Foundation - United States of America — Inter- - King Baudouin Foundation - Turing Foundation American Foundation - Kitchen Table Charities Trust - Tyler Prize for Environmental - United States of America — - Kopernik Achievement National Oceanic and Atmospheric - Korea Green Foundation - Urgent Action Fund for Africa Administration - La Caixa Foundation - Vibrant Village Foundation - United States of America — U.S. - V. Kann Rasmussen Foundation Agency for International Development - Lemelson Foundation - Virginia Gildersleeve International Fund - Addax and Oryx Foundation - Lush Retail, Ltd. - Volkswagen Foundation - Aga Khan Foundation - McKnight Foundation - Volvo Environment Prize Foundation - Alcoa Foundation - Melania Development Foundation - Wallace Global Fund - Alstom Foundation - Misereor - Waterloo Foundation - Associated Country Women of the - Monsanto Fund World - Network for Social Change - Whole Systems Foundation - Atkinson Foundation - NextWorldNow - William A. Cadbury Charitable Trust

40 Conservation financing opportunities from abroad - Woodard and Curran Foundation - World Academy of Sciences - XminusY High Quickly Cautious - Xperedon

- Zayed International Foundation for the Impact Opportunistic Defer Environment Low Low High 3.7 Prioritising sources of Complexity funding Figure 6. Funding Opportunities Matrix The preceding sections have covered a vast array of potential sources of This listing indicates the best USAID or UNDP) to determine whether international funding for biodiversity prospects are probably with some further funding from them will have the conservation in the Maldives. How bilateral development organisations desired impact and whether securing can one prioritise these possible (e.g. JICA and AFD), some this funding will be complex. Once sources of funding? foundations (e.g. OAK) and some existing donors have been assessed international NGOs (e.g. RARE, CI and new donors, such as the ones A pragmatic way to assess the TNC). However, this list would then highlighted in this report could be various funding sources is to ask need to be backed up by a review of assessed. From this process, possible two questions. First, is the use of actual funding possibilities from these sources of funding could be prioritised the funds likely to have a high or a organisations as presented on their and a programme of work to approach low impact? Second, is the process websites or on sites such as the Terra them put into action. of sourcing the fund relatively Viva Grants Directory. straightforward of highly complex? This is reflected in the following matrix The national conservation financing (Figure 6). fund-raising team in the Maldives could use this approach first to review If the impact is high and the their existing sources of funding (e.g. complexity low, then one should quickly try to secure this funding. If the impact is low, but the complexity is also low, this provides an opportunistic possibility to secure JICA GEF funding. However, if the impact is high USAID but the complexity is also high, this AFD should signal a cautious approach OAK MAVA to this source of funds. And, finally, a High RARE LIVELIHOODS funding opportunity with low impact CI IUCN and high complexity should be TNC CBD LIFEWEB deferred until later or avoided. Impact In other words, based the potential Low ADB GCF conservation impacts and on the UNEP IFC complexity of the funding process, UNDP WORLD BANK various funding opportunities should either be prioritised or deferred. Such Low High a prioritisation exercise should be undertaken by the fund-raising team Complexity who will be most familiar with their funding needs and also with their Figure 7. Funding Opportunities Matrix capacity to engage with particular funding sources.

By way of example, we would initially list some of the funding sources listed above as follows (Figure 7).

Sustainable Conservation Financing In The Maldives 41 4. OPTIONS FOR policies and regulatory frameworks and source of private revenue for private CONSERVATION to establish a harmonised management benefit, particularly with respect to the system. tourism and fisheries sectors. Thus, FINANCING IN THE in addition to an allocation of general MALDIVES At the atoll level, there is a need to public funds from the Treasury, there finance the capacity to develop and is an opportunity to earmark funds Building on its own conservation implement conservation management generated from these sectors to financing experiences and drawing on plans which address atoll-specific conservation. This might include an insights from conservation financing issues related to the protection and allocated share of the lease payments experiences and sources internationally, sustainable use of marine biodiversity. for island resorts, a share of the per- the Government of the Maldives has While the national government sets tourist green tax, or a share of the taxes an opportunity to develop an efficient the policy and regularly framework, its generated in the fishing sector. and effective approach to enhancing implementation can most effectively be conservation financing measures in the done at the atoll level. Each atoll will Regarding the myriad of international country. Which options for conservation have its own set of opportunities and sources of funding reviewed in this financing it chooses, however, will challenges to address. report, there are broadly two options depend very much on actual financing for tapping into some of these sources. needs, possible financing sources, and At the site level – e.g. a marine The first option is to let any institution the opportunity to develop strategic protected area or a critical habitat – at the national, atoll, or site level approaches at the national, atoll there is the need to finance site-specific whether public, private or NGO solicit or site levels. This section reviews actions to conserve and sustainably funds from international sources. these issues to establish the basis use marine biodiversity. For the island The second option is to facilitate or for proposing a strategic approach to resorts and their house reefs, the coordinate international fundraising conservation financing presented in the financing and the management is through a national capacity. For a following sections. aligned and integrated with their tourism country such as the Maldives with a leases. For public areas such as the large, mostly marine territory and a open waters of the marine national small population, a national capacity to 4.1 Financing needs – parks, however, there is a need to manage international fundraising would national, atolls, and regulate and control access – both most probably increase its chances of tourism and fisheries. Also, in some success. Such a capacity would, of sites cases, there is a need to manage the course, need to set high standards for The most fundamental question relationship between the economic transparency and accountability to build regarding conservation financing sectors – such as tourists on the the trust of the international funders. are the same as for all questions island side of a house reef and the regarding all types of financing – fishers on the other side. Site-specific At the local level where there are atoll- financing for what? At the national, management needs targeted financing. specific or site-specific funding needs, atoll and site levels, what financing is specific ear-marked financing facilities required? Conservation planning and management is needed to answer this 4.2 Funding sources – "The overall question in detail, but we can provide national, international, some general observations here on conservation of the why financing is needed. and local The overall conservation of the Maldives’ marine At the national level, there is need Maldives’ marine biodiversity is a public biodiversity is a public to finance the establishment, good for public benefit. A fundamental implementation and maintenance of the role of public finance is to ensure that good for public benefit. county’s overall policy and regulatory public funds are allocated to cover framework and management system the costs of maintaining this public A fundamental role for the conservation of its marine benefit. In the Maldives, the source of of public finance is biodiversity. This includes both the these funds is the Ministry of Finance protection of marine biodiversity and and Treasury. A conservation finance to ensure that public its sustainable use. In the case of the priority at the national level is to secure funds are allocated Maldives, the uses include a significant an allocation of the national budget for export-focused tourism sector and conservation. to cover the costs of a large fisheries sector. Thus, there maintaining this public is a need to align and harmonise Importantly, the marine biodiversity conservation, tourism and fisheries of the Maldives is also an important benefit."

42 Options for conservation financing in the maldives may be appropriate. For example, conservation fund can facilitate and funds presented in this section provide where there is an open-access tourism encourage financing at the local level. a framework for adopting a range of pressure to be managed, such as Thus, the advantages of promoting measures and mechanism to finance whale shark watching in the South financing at the atoll and local levels conservation from national, international Ari Atoll, an access fee could be can be integrated into a national and local sources. implemented to both regulate access approach. This is discussed in more and finance the management of the detail in the following section. area. In the fisheries sector, fees for the 5.1 A national conservation usage of a public fish landings could be Finally, as the Maldives aims to fund another source of revenue. As well, a establish the entire country as a portion of the lease payments and the UNESCO Biosphere Reserve, this The Maldives is a small island country green tax levied on the tourism sector implies a need to a conservation with an economy – notably tourism could be allocated proportionately to financing strategy for the country as and fisheries but also agriculture – the atolls. a whole which includes financing substantially based on its biodiversity modalities and innovations at the assets. It has a population of less than atoll and site level as appropriate 500,000 people of which about 30% 4.3 The case for a national to enhance the level of resources live in the capital city, Male’, and the approach available to support the conservation balance live throughout its hundreds of of the country’s marine biodiversity. islands. For the Maldives, the challenge is not The following sections also address so much about selecting the ‘best’ how to utilise the Biosphere recognition Given its geography, the nature of methods for financing conservation, to establish a national approach to its economy and its population, it but rather about establishing and sustainable conservation finance. would be most efficient and effective operationalising an institutional to establish an overarching national framework to best capture the funds conservation fund with subsidiary funds which may be available, i.e. funds 5. STRATEGIC for the atolls and for private sector available nationally, internationally or CONSERVATION investments. locally. With a such an institutional framework – described in the next FINANCING IN THE Such a ‘Maldives Conservation Fund’ section as a national conservation fund MALDIVES would complement the government’s – the country can maximise its ability to pledge to establish the entire country seek financing for conservation from all Building on this report’s review of the as a Biosphere Reserve.130 Its sources. current situation in the Maldives and mission would be to fund activities the review of relevant international that support the conservation of the The alternative to a national approach developments and processes, this country’s biodiversity assets including would be to have an un-coordinated section sets out a strategic approach to preservation, maintenance, restoration, myriad of conserving financing initiatives establishing a sustainable conservation sustainable utilisation and the at the national, atoll and local levels. financing system in the Maldives. The enhancement of ecosystems, habitats One good example of this is the Baa ideas presented here are intended and species populations. Atoll Conservation Fund. On its own, to be used as a starting point for the as noted, it is a fine initiative, but on Ministry of Environment in consultation its own it does not address or even with other Ministries and other 5.1.1 Management and use of encourage conservation financing stakeholders, including representatives national funding for the rest of the country. Likewise, from the private sector and local the internal conservation financing of communities, to further explore The Fund should be established house reefs by the island resorts may possible ways forward. as not-for-profit entity with a multi- be effective, but there is little public stakeholder governing board, including learning from these efforts to encourage As discussed in the previous representatives from government, the similar approaches, particularly for section, the proposal for a national private sector, and communities and so small, community-based tourism strategic approach to conservation on. The Government probably should ventures. financing present here enables have a majority of the board seats. innovative financing mechanisms to A national approach to conservation be established as needed and as The governing board would be financing, however, does not mean that feasible at the national, atoll and site innovative financing mechanism cannot levels. In this respect the coordinating 130 See: https://www.seeker.com/entire- be implemented at the atoll or site structure of a national conservation maldives-nation-becoming-biosphere- level. Quite to the contrary, a national fund and subsidiary atoll conservation reserve-1767251221.html

Sustainable Conservation Financing In The Maldives 43 responsible for approving the annual warming, overfishing, plastics and Existing atoll funding structures such workplan and budget of the Fund and land-based sources of pollution. There the Baa Atoll Fund or planned funding its annually audited financial accounts. is and will be international support capacities for SAMPA or the islands The board would also appoint the for efforts in the Maldives to address of Fuvamulah and Hithadhoo can be Fund’s director who in turn would be these challenges. incorporated into the national Fund responsible for implementing the annual system as subsidiary funds. The workplan and securing the necessary Thus, in additional to securing a current model of the Baa Atoll Fund human resources and infrastructure. share of national public revenues, where the funds are actually deposited The director would also have a non- the Fund should have the capacity with the Ministry of Finance offers an voting ex-officio seat on the board. and the acumen to secure example of how this arrangement can funding internationally in regard be managed. To assist it with its work, the governing to key themes of concern that board may also want to establish a are of particular relevance to the cross-disciplinary technical advisory country’s environmental situation. 5.2.1 Management and use of committee. Such a committee could This includes seeking funding from atoll funding be tasked with reviewing project multilateral agencies such as the proposals, monitoring projects and Global Environment Facility and the The subsidiary atoll funds, similar the providing implementation guidance. Green Climate Fund, from national national fund, should be overseen by a development assistance agencies multi-stakeholder advisory board. The such as USAID and DFID, and from stakeholders – government, private 5.1.2 Sources of funds – private foundations such as the Mava sector, communities and so on – would national and international Foundation and the Oak Foundation. come from the atoll or atolls covered by the subsidiary fund. The national Fund’s As the Maldivian economy is primarily "Given its geography, director or his/her representative would based on its biodiversity assets, public have an ex-officio seat on the advisory revenues from taxes, fees, leases and the nature of its board. other sources are also primarily based economy and its on the revenues generated from the As a norm, the advisory board for a utilisation of these biodiversity assets. population, it would subsidiary atoll fund would act like a To maintain and enhance these assets, be most efficient and normal board. However, oversight and it is necessary that a portion of the ultimate authority would rest with the public revenues are earmarked for effective to establish governing board of the national Fund. the Fund. The portion – whether an An atoll fund’s advisory board would be absolute amount or a percentage – will an overarching national responsible for approving the annual need to be determined based on an conservation fund with workplan and budget of the fund. It overall assessment of funding needs, would also advise on the appointment the ability of the Fund to raise funds subsidiary funds for the of the fund’s director who would be internationally, and the capacity of the atolls and for private responsible for implementation. This government to allocate public revenues director would have a non-voting ex- to the Fund vis-à-vis other public sector investments." officio seat on the atoll fund’s board. expenditure needs. 5.2 Subsidiary atoll As a middle-income country with a conservation funds 5.2.2 Sources of funds - strong and growing economy, the ability International/national and of the Maldives to secure development The proposal to establish a national assistance – either in the form of Maldives Conservation Fund aligned local grants of or loans – is likely to diminish with the country’s forthcoming status Subsidiary funds could develop local in the coming years. Nevertheless, as a UNESCO Biosphere Reserve mechanisms for securing funds. The and particularly with respect to does not mean that funds should not Baa Atoll experiences in this regard environmental challenges, the country also be raised, managed and used provide evidence of the potential for should be able to continue to raise at the local level. Rather the national local fund raising. Plans for SAMPA funds internationally. Key environmental Fund needs to develop subsidiary or the islands of Fuvamulah and challenges include climate change atoll funds within the national fund to Hithadhoo provide further evidence that adaptation, endangered and threatened support local conservation activities. innovative resource mobilisation at the species conservation, marine Subsidiary funds could be set up for local level is a promising option. ecosystem integrity, and the mitigation individual atolls or, in some cases, for of ocean risks including ocean groups of atolls.

44 Strategic conservation financing in the maldives The atoll funds, however, would in within the sector to conservation of the 5.3.2 Sources of funds most cases need to or desire to seek marine biodiversity. This is an example - international and funds from the national government of a public-private partnership which and as well as from international could be fostered by a South Ari national/local sources. Again, as evidenced by the conservation fund. Investment capital could be sourced various international funding sources nationally both from public revenues for Baa Atoll, SAMPA and the islands and from private investors. The of Fuvamulah and Hithadhoo, different 5.3 A subsidiary Government may even consider international donors may be interested conservation offering a tax incentive to private in supporting conservation activities investors who invest in the fund. in different parts of the country. To investment fund ensure a coordinated approach, The fund system proposed above – a As a vehicle for foreign investment however, it will be important for national fund with subsidiary atoll funds in biodiversity-based sectors in the national and international fundraising – will most likely be based on a normal Maldives, this fund could also attract efforts by atoll funds to be coordinated grant financing modality. The funds will investments from development banks and, as needed, facilitated by the receive international grants, a share of such as the International Finance national Fund. national public revenues, and/or various Corporation, from private banks, and fees at the local level. The allocation from private investors. of these funds will normally be through 5.2.3 A financing mechanism grants to deliver specific conservation for the South Ari atoll and activities. 5.4 The overall structure of the Maldives SAMPA As the Maldives economy consists of In the case of the South Ari atoll and biodiversity-based enterprises, notably Conservation Fund the South Ari Atoll Marine Protected in the tourism and fisheries sectors, The proposed Maldives Conservation Area (SAMPA), a conservation fund it may also be appropriate for the Fund would have the following like Baa Atoll could be established national Fund to establish a subsidiary structure: and similar sources of funding could conservation investment fund. be sought. The funding sources could Such a structure will allow for national include sales of access permits, coordination and local innovation. It partnership fees, tour guide registration 5.3.1 Management and use of will also align with plans to declare fees, photography and videography funds the country as a whole as a UNESCO permits, and donations. Biosphere Reserve. The investment fund would aim to For SAMPA, a funding mechanism align biodiversity conservation with As an alternative, the various structures based on permits and access fees to financial returns. Hence, it would – a national fund, atolls funds, and an visit open water whale shark viewing require a board and management investment fund – could be developed areas would be particularly pertinent. team with the capacity to make as independent institutions as and As there is a conservation need to profitable investment decisions. when there is an interest and capacity regulate access to these areas, a to do so. However, as previously permit fee system could both regulate This fund would provide equity or loan discussed, for a country or such a large access and generate revenues to capital to enterprises who conserve, size and small population, a unified finance the monitoring and enforcement sustainably use and enhance the structure is more likely to establish the of tour boat visits. Also, such a permit country’s biodiversity assets. In so capacity needed to raise additional fee could be levied both on tour doing, for example, it could encourage funding for conservation from national, operators from within the atoll as well as the development of economic international and local sources. on those coming from outside the atoll. activities in less developed parts of the country in line with the overall aims of Further, in exchange for access, managing the Maldives as a UNESCO SAMPA could require monitoring by Biosphere Reserve. the tour operators visiting SAMPA. This would provide privately-financed in-kind support for enhanced management of the marine protected area. Such monitoring, of course, could be integrated into the tourism offering, thus further aligning the income generated

Sustainable Conservation Financing In The Maldives 45 5.5 Potential barriers to and local levels and is capable of the Maldives as a Biosphere Reserve 132 implementation attracting substantive international Implementation Plan 2013-2017. donor and investor interest. Regarding the establishment and At the Rio+20 Conference in 2012, the implementation of an integrated In this regard, perhaps the major Government of the Maldives committed Maldives Conservation Fund, as barrier to implementation is a strong to making the entire country a proposed in this report, there are enough reason to get going and UNESCO Biosphere Reserve by 2017. several potential barriers which will move forward. For the Maldives, Though the 2017 date is not possible, need to be addressed. These include however, there is a strong and the commitment remains. the following: compelling reason to move forward – the declaration of the country as a • Political will and public commitment; UNESCO Biosphere Reserve. This • Legislation and legal structures; 6.1 A national system of declaration can drive the process conservation areas • Institutional capacity and know-how; to overcome potential barriers and • Stakeholder buy-in – tourism, fisheries, implement a national conservation The NBSAP sets out key elements of a and communities; and financing mechanism. national system of conservation areas • Donor and investor interest. as follows:

However, the experience that 6. TOWARDS Maldives has continued to increase the country has to date with SUSTAINABLE protected as well as managed conceptualising and implementing areas. Under the Environmental innovative fund structures provides CONSERVATION Protection and Preservation Act, it with a solid basis from which to FINANCING IN THE 42 areas, 103 bird species and 14 marine species have been declared address such barriers. Of note are MALDIVES the government’s experiences with protected… the Baa Atoll Conservation Fund, Crucially, the development of a national the Fund for Renewable Energy conservation financing system in the In addition to the legally protected System Applications (FRESA), and Maldives must be aligned with the areas, the house reefs of 112 the licensing agreements with the country’s national plans for biodiversity resort islands in Maldives are well island resorts. These structures conservation. These plans are demonstrate that the country has the articulated in the country’s current know-how and capacity to implement 2016-2025 National Biodiversity mv/mv-nbsap-v2-en.pdf a nationwide conservation financing Strategy and Action (NBSAP)131 and in 132 See: http://www. system which engage both the public indiaenvironmentportal.org.in/files/file/ Maldives-as-a-Biosphere-Reserve--- and the private sector at the national 131 See: https://www.cbd.int/doc/world/ Implementation-Plan-2013-2017.pdf

Maldives Conservation Fund

Non-profit national entity Multi-stakeholder national governing board funded nationally & internationally

Baa Atoll Conservation Fund Conservation Investment Fund Non-profit national entity Multi-stakeholder Non-profit national entity Multi-stakeholder national governing board funded nationally national governing board funded nationally & internationally & international investors

South Ari Atoll Conservation Fund Non-profit national entity Multi-stakeholder national governing board funded nationally & internationally

And another Atoll Conservation Fund Non-profit national entity Multi-stakeholder national governing board funded nationally & internationally

Figure 8. Proposed structure for the Maldives Conservation Fund.

46 Towards sustainable conservation financing in the maldives managed with certain activities • Local communities will be taking 6.1.3 Determine resources and restricted, and in most cases responsibility for managing their limited to snorkelling. These areas environmental resources, supported by financing required extend to 1000 metres from the an Environment Office within each Atoll As almost all of the protected areas are beach line where possible. The total administration lacking management plans and there is reef and lagoon area of the 112 • Atoll and island development plans little collective information on how the resorts, although not yet calculated, and land use plans will be securing island resorts are managing their house represents a significant area of well- sustainable development through reefs, there is little information on what managed territorial waters… conservation and restoration of the environment conservation actions are needed and, Contribution of biodiversity • Coherent networks of coastal and in turn, what resources and financing to the national economy and terrestrial protected and managed are required. In this respect, a national human wellbeing of the country areas (MPAs/MMAs) covering at least ‘business plan’ for the conservation demonstrates the need for 17% of each atoll will be safeguarding areas – public and private – needs sustainable use, conservation the most important biodiversity and to be developed to guide resource and equitable access and ecosystem services, helping fisheries mobilisation and utilisation. sharing of benefits of biodiversity. and tourism to thrive, and providing new Efforts are underway to create opportunities for employment, including The management plans for Hanifaru awareness among people on the jobs such as rangers in Baa Atoll, and the management values of biodiversity. • The Maldives Green Fund will be regime in the Addu and Fuvahmulah providing grants for conservation, protected areas could provide a basis livelihoods and education/ outreach A conservation financing system will for lessons learned in developing projects need to support these elements. area-based conservation management • New businesses on many islands will plans. Conservation plans for house be supplying coconut products, food, reefs may also provide additional handicrafts, jewellery and other services 6.1.1 Propose the national insights and information. to the resorts Maldives Biosphere Within these ambitions is the Reserve establishment of a Maldives Green 6.2 Subsidiary atoll Further, the Implementation Plan for the Fund which, as noted, is similar in systems of Maldives Biosphere Reserve includes a scope and mission to the Maldives strategic set of ambitions at the national Conservation Fund proposed above. conservation areas and local level including the following: However, the Green Fund has Both the proposed Maldives Biosphere become inactive and so the proposed Reserve and the proposed Maldives • New fit-for-purpose governance and institutional mechanisms and Conservation Fund could incorporate Conservation Fund will need to have legislation will be in place, supporting a some of its ambitions and objectives. national platform as well as a network decentralised, integrated environmental of atoll platforms for conserving areas management system which empowers and financing conservation activities. atoll and island communities to look 6.1.2 Develop a national A ‘federal’ conservation system will after their own natural resources conservation areas plan link national aims and financial flows to • Offshore marine protected and marine local action. managed areas (MPAs/MMAs) covering Though there are now 42 protected more than 10% Of the territorial waters areas as well as over 100 house and EEZ will be supporting recovery of reefs conserved by private resorts, 6.2.1 Propose subsidiary atoll fish stocks and fisheries an overarching national conservation ‘Biosphere Areas’ • The Maldives tourism sector will be areas plan needs to be developed. top-ranked globally for its sustainability Implementation of the Maldives The Baa Atoll Biosphere Reserve and leadership and contribution to the Biosphere Reserve can deliver such a its associated fund provide excellent Maldivian environment and society plan which will provide the framework role models for the establishment of • A Maldives Green Fund will be for conservation management and similar systems in other atolls. However, supporting atoll communities to manage financing. The financing mechanism to ensure a coordinated national their own environment proposed in this report is to establish a system, the Baa Atoll Biosphere • New partnerships between atoll and Maldives Conservation Fund. Reserve probably should be rebranded island councils, resorts, NGOs and as a ‘Biosphere Area’ within the national international partners will have emerged Biosphere Reserve. (and be formalised as Environmental Advisory Boards) to deliver this vision

Sustainable Conservation Financing In The Maldives 47 6.2.2 Develop conservation 6.3 Launch the Biosphere areas management plans Reserve and To become a full-fledged component Conservation Fund of the national Biosphere Reserve, As the Government of the Maldives conservation areas – both public and moves forward with launching the private – should establish area-based Maldives Biosphere Reserve, it should conservation management plans at the same time move forward with and performance reporting systems. designing and establishing its national Building on best international practice, Maldives Conservation Fund. a common framework for planning and reporting should be established. As proposed in this report, for both the Reserve and the Fund, there will For the legally protected areas, the be national and atoll components, framework could recommend that as well as public and private sector these areas aim to be listed on the components. The Fund will be IUCN Green List133 which recognises structured to receive and allocate protected areas which “measure, international grant and investment flows, improve and maintain their performance public finance, private investment, through globally consistent criteria and locally-generated revenues. By that benchmark good governance, the end of 2018, Maldives could sound design and planning, effective be internationally recognised as a management, and successful UNESCO Biosphere Reserve with an conservation outcomes.” associated fully functional Conservation Fund to ensure the conservation, For the house reefs managed by maintenance, sustainable utilisation the island resorts and other privately and enhancement of the country’s and community managed areas, the magnificent biodiversity assets. framework could recommend that these areas aim to be listed on the Earthmind Conservation Area List134 which aims to recognise and celebrate conservation efforts outside of legally protected areas.

Financing from the national Conservation Fund or its subsidiary atoll funds as well as investment funding could be aligned with the development and implementation of internationally- recognised area-based conservation management plans.

133 See: https://www.iucn.org/theme/ protected-areas/our-work/iucn-green-list 134 See: http://conserveareas.org/

48 Towards sustainable conservation financing in the maldives ANNEX A. ACKNOWLEDGEMENTS

We would like to thank the many people who shared their knowledge and insights to help us prepare this report. In particular, we are thankful the time spend with the following people:

Name Position Institution Ms Ilham Atho Mohamed Assistant Director, Environment Department Ministry of Environment and Energy

Ms Muhusina Abdul Rahman Assistant Director, Environment Department Ministry of Environment and Energy

Ms Lisama Sabry Environmental Analyst, Environment Department Ministry of Environment and Energy

Saaif Mohamed Rasheed Assistant Environment Officer, Environment Department Ministry of Environment and Energy

Mr Ahmed Shan Senior Surveyor Environmental Protection Agency

Mr Ahmed Solih Permanent Secretary Ministry of Tourism

Mr Ibrahim Fikree Assistant Director Ministry of Tourism

Mr Nizam Ibrahim Senior Research Officer, Coral Reef Monitoring and Marine Research Centre Research

Mr Abdulla Shibau Managing Director, Baa Atoll Conservation Fund Ministry of Environment and Energy

Mr Aishath Farhath Ali Project Coordinator Climate Change Adaption Project

ANNEX B. KEY STAKEHOLDERS

This list of stakeholders is from the REEFS proposal. It provides a starting point for identifying whom should be consulted in

Stakeholders Roles Ministry of Environment and Energy Lead institution with Project Coordination Unit

Environmental Protection Agency Protected areas management

Atoll Council Environmental Unit overseeing atoll operations; Report to PCU

Island Council Environmental Unit management; Report to Atoll Environmental Unit

Ministry of Fisheries and Agriculture Implementation of Fisheries Master Plan, sustainable fisheries and sustainable agricultural methods

Marine Research Centre Capacity Building for National implementation of Coral Reef Monitoring Framework

Ministry of Tourism Management of resort house reefs as core areas, Implementing the Waste Management Plan

Ministry of Finance and Treasury Supporting the Conservation Trust Fund and financial mechanisms

Maldives Police Service Support the atoll environmental unit for compliance operations

Coast Guard/ Maldives National Defence Support the atoll environmental unit for compliance operations Force

Ministry of Education Conservation education and awareness for school children

Ministry of Housing and Infrastructure Assist in incorporating Conservation Management Plan into Island Development Plan.

Civil Service Commission Establishing an environmental unit in the island and atoll council’s structure.

Prosecutor General’s Office Make necessary amendments to legal frameworks.

International Union for Conservation of REGENERATE project phase two will compliment this project by establishing Ecosystem Nature(IUCN) Based Management in North Ari Atoll

United Nations Development Programme LECReD project will compliment this project by enhancing capacity of climate resilient (UNDP) development through local developmental planning in Laamu Atoll.

Sustainable Conservation Financing In The Maldives 49 the development of a conservation financing system for the Maldives.

ANNEX C. THE PROTECTED AREAS OF THE MALDIVES

# NAME TYPE ATOLL DECLARED HA 1 Makunudhoo KanduOlhi MPA K 01 Oct 1995 240

2 Rasfari island, lagoon and the surrounding reef Island/MPA K 01 Oct 1995 2,466

3 Thamburudhoo Thila MPA K 01 Oct 1995 57

4 Gaathugiri/Aiydhashugiri MPA K 01 Oct 1995 50

5 Kuda Haa MPA K 01 Oct 1995 200

6 Dhekunu Thilafalhuge Miyaruvani MPA K 01 Oct 1995 150

7 Gulhifalhu Medhugai onna kohlavaanee MPA K 01 Oct 1995 55

8 Emboodhoo Kanduolhi MPA K 01 Oct 1995 450

9 Guraidhoo Kanduolhi MPA K 01 Oct 1995 245

10 Mayaa Thila MPA AA 01 Oct 1995 200

11 Orimas Thila MPA AA 01 Oct 1995 200

12 Mushimasmigili Thila MPA AA 01 Oct 1995 200

13 Kudarah Thila MPA AA 01 Oct 1995 200

14 Miyaru Kandu MPA V 01 Oct 1995 390

15 Fushivaru Thila MPA F 01 Oct 1995 450

16 Vilingili Thila MPA R 21 Oct 1999 200

17 Dhigali Haa/Horubadhoo Thila MPA B 21 Oct 1999 200

18 Kuredhu Kanduolhi MPA Lh 21 Oct 1999 315

19 Lankan Thila MPA K 21 Oct 1999 200

20 Karibeyru Thila/ MPA AA 21 Oct 1999 4.5

21 Faruhuruvalhibeyru MPA ADh 21 Oct 1999 900

22 Vattaru Kandu MPA V 21 Oct 1999 1,000

23 Lhazikuraadi MPA M 21 Oct 1999 200

24 Filitheyo Kandu MPA F 21 Oct 1999 830

25 Fushee Kandu MPA Dh 21 Oct 1999 2,000

26 Eidhigali Kilhi and Koattey Area Mangrove/M S 07 Dec 2004 905 PA

27 Huraa Mangrove Area Mangrove K. 14 Jun 2006 4

28 Hurasdhoo Island/MPA ADh 14 Jun 2006 600

29 Olhugiri Island/MPA B 14 Jun 2006 430

30 Hithaadhoo Island/MPA Ga 14 Jun 2006 645

31 South Ari Atoll MPA MPA ADh 05 Jun 2009 4,000

32 B. Hanifaru Area MPA B 05 Jun 2009 1,397

50 Towards sustainable conservation financing in the maldives # NAME TYPE ATOLL DECLARED HA 33 B. Angafaru Area MPA B 05 Jun 2009 1,600

Mendhoo Region Island/MPA B 05 Jun 2009 1,172.8

34 Goidhoo Koaru Area Mangrove B 06 Jun 2011 13.9

35 Maahuruvalhi Reef Region MPA B 07 Jun 2011 1,872.6

36 Bathalaa Region Island/MPA B 08 Jun 2011 702

37 Mathifaru Huraa Region Island/MPA B 09 Jun 2011 55.6

38 The wrech of “Corbin” MPA B 10 Jun 2011 3.14

39 Dhigali Giri MPA B 11 Jun 2011 91.44

40 Bandaara kilhi and surrounding wetland area Mangrove/ Gn 21 Jun 2016 26.62 Wetland

41 Dhandimagu kilhi Mangrove/ Gn 22 Jun 2012 37.11 Wetland

42 Thundi Area- Fuvahmulah Terrestrial Gn 23 June 2012 35.18

Key biodiversity assets of the country can be found in the country’s network of protected areas. All of these areas need to be better managed and their conservation activities need to be financed.

ANNEX D. ISLAND RESORTS IN THE MALDIVES

Name Atoll Island Operator Lessee aaaVeee Nature's Dhaalu Dhoores Dhoores Retreat Pvt Ltd (C- Dhoores Retreat Pvt Ltd (C- Paradise 0145/2013) 0145/2013) Aimirani, 2nd Floor Aimirani, 2nd Floor Boduthakurufaanu Magu Boduthakurufaanu Magu Male', Rep. of Maldives Male', Rep. of Maldives

Adaaran Club Rannalhi Kaafu Rannalhi Jetan Travel Services Company Jetan Travel Services Company Pvt Ltd Pvt Ltd #7-A, STO Aifaanu Building, #7-A, STO Aifaanu Building, Boduthakurufaanu Magu Boduthakurufaanu Magu Male', Republic of Maldives Male', Republic of Maldives [email protected]

Adaaran Prestige Vadoo Kaafu Vaadhoo Unique Resorts Pvt. Ltd. 7th Floor, STO Aifaanu Building Boduthakurufaanu Magu Male', Republic of Maldives

Adaaran Select Kaafu Lhohifushi A.D.S Resorts Pvt. Ltd. (C- Altaf Enterprises Pvt. Ltd.(C- Hudhuranfushi 0468/2006) 0484) 7th Floor, STO Aifaanu Building 6th Floor, Marina Building Boduthakurufaanu Magu Koli Umaru Maniku Goalhi Male', Republic of Maldives Male', Republic of Maldives

Adaaran Select Raa Meedhupparu Cowrie Investment Pvt. Ltd. Cowrie Investment Pvt. Ltd. Meedhupparu #7-A, STO Aifaanu Building, #7-A, STO Aifaanu Building, Boduthakurufaanu Magu Boduthakurufaanu Magu Male', Republic of Maldives Male', Republic of Maldives [email protected]

Sustainable Conservation Financing In The Maldives 51 Name Atoll Island Operator Lessee Alidhoo Island Resort Haa Alif Alidhoo Yacht Tours Maldives Pvt. Ltd. H. Vilares Male', Rep. of Maldives [email protected]

Alimatha Aquatic Resort Vaavu Alimatha L.A Resorts Pvt Ltd (C-0907/2007) Safari Tours Pvt. Ltd (C- M.Opera Building 0035/1986) Chaandhanee Magu Opera Building, Chaandhanee Male', Republic of Maldives Magu Male', Republic of Maldives [email protected]

Amari Havodda Maldives Gaaf Havodda Crystal Plaza Resorts Pvt Ltd (C- Dhaalu 0008/2013) 2nd Floor, MF Building Chaandhanee Magu Male', Republic of Maldives

Amaya Kuda Rah Alif Dhaalu Kudarah Luxury Resort Pvt Ltd (C- Maldives 0671/2015) G.Sosanee, 3rd Floor Male', Rep. of Maldives

Anantara Kihavah Villas Baa Kihavah Huravalhi Minor International (Labuan) Ltd Maldives Tourism Development Level 15 (A2), Main Office Tower Corporation Plc Financial Park 01st Floor, Fathuruvehi Labuan, Jalan Mereedeka, 87000 Buruzu Magu FT Republic of Maldives Malaysia

Anantara Resort and Spa Kaafu Dhigufinolhu Eutopia Holdings Pvt Ltd Deep Blue Private Limited Maldives 1st Floor, H. Meerubahurugeaage M.Sahkeyodhoshu Ge Ameeru Ahmed Magu 39 Orchid Magu Male', Republic of Maldives Male', Republic of Maldives.

Angaga Island Resort Alif Dhaalu Angaga Angiri Resorts Management Angiri Resorts Management and Spa and Operations Pvt Ltd (C- and Operations Pvt Ltd (C- 0183/2001) 0183/2001) 2nd Floor, M.New Plot 2nd Floor, M.New Plot Ameenee Magu.(02-10-05) Ameenee Magu.(02-10-05) Male', Rep. of Maldives Male', Rep. of Maldives

Angsana Resort & Spa Dhaalu Velavaru Maldives Bay Pvt Ltd Sancturay Sands Maldives Pvt. Maldives - Velavaru Watheenigasdhoshuge Ltd Majeedhee Magu H. Aage, 02nd Floor Male', rep. of Maldives Boduthakurufaanu Magu Male', Rep of Maldives

Angsana Resort & Spa Kaafu Ihuru Banyan Tree Investment Holdings Ihuru Investments Pvt Ltd, Male' Maldives Ihuru (HK) Ltd, Ground Floor, Ma.Rimkha c/o 211 Upper Bukit Timah Dhilbahaaru Goalhi, Male' Road Singapore 588182

52 Towards sustainable conservation financing in the maldives Name Atoll Island Operator Lessee Name Atoll Island Operator Lessee Alidhoo Island Resort Haa Alif Alidhoo Yacht Tours Maldives Pvt. Ltd. Asdu Sun Island Kaafu Asdhu Polycom Investments Pvt. Ltd (C- Polycom Investments Pvt. Ltd H. Vilares 0627/1980) G. Lifadhoo ( Reg. Address) Male', Rep. of Maldives H. Benety, No. 23, Kashimaa 18, Rahdhebai Magu [email protected] Hingun Male', Maldives 18, Rahdhebai Magu Alimatha Aquatic Resort Vaavu Alimatha L.A Resorts Pvt Ltd (C-0907/2007) Safari Tours Pvt. Ltd (C- Male', Maldives M.Opera Building 0035/1986) Chaandhanee Magu Opera Building, Chaandhanee Atmosphere Kanifushi Lhaviyani Kanifushi Kanifushi Investment Pvt. Ltd Kanifushi Investment Pvt. Ltd Maldives Male', Republic of Maldives Magu M. Rowville, 5th Floor M. Rowville, 5th Floor Male', Republic of Maldives Fareedhee Magu Fareedhee Magu [email protected] Male, Rep of Maldives Male, Rep of Maldives

Amari Havodda Maldives Gaaf Havodda Crystal Plaza Resorts Pvt Ltd (C- Ayada Maldives Gaaf Magudhdhuvaa Ahmet Aydeniz Maldives Pvt. Ltd Maldives Tourism Development Dhaalu 0008/2013) Dhaalu M. Linkia, 07th Floor and Corporation 2nd Floor, MF Building Shaheed Ali Hingun Fathuruvehi Building, 1st Floor Chaandhanee Magu Male', Republic of Maldives Buruzumagu Male', Republic of Maldives Male', Republic of Maldives

Amaya Kuda Rah Alif Dhaalu Kudarah Luxury Resort Pvt Ltd (C- Bandos Maldives Kaafu Bandos Mohamed Waheed Deen, H. Mohamed Waheed Deen, H. Maldives 0671/2015) Deens Villa, Male', Republic of Deens Villa, Male', Republic of G.Sosanee, 3rd Floor Maldives Maldives Male', Rep. of Maldives [email protected] [email protected]

Anantara Kihavah Villas Baa Kihavah Huravalhi Minor International (Labuan) Ltd Maldives Tourism Development Banyan Tree Maldives Kaafu Vabbinfaru Vabbinvest Maldives Pvt. Ltd, K. Vabbinvest Maldives Pvt. Ltd, K. Level 15 (A2), Main Office Tower Corporation Plc Vabbinfaru Vabbinfaru Vabbinfaru Financial Park 01st Floor, Fathuruvehi c/o 211 Upper Bukit Timah Road c/o 211 Upper Bukit Timah Road Labuan, Jalan Mereedeka, 87000 Buruzu Magu Singapore 588182 Singapore 588182 FT Republic of Maldives Baros Maldives Kaafu Baros Universal Enterprises Ltd. Universal Enterprises Ltd. Malaysia 39, Orchid Magu 39, Orchid Magu Anantara Resort and Spa Kaafu Dhigufinolhu Eutopia Holdings Pvt Ltd Deep Blue Private Limited Male', Republic of Maldives Male', Republic of Maldives Maldives 1st Floor, H. Meerubahurugeaage M.Sahkeyodhoshu Ge [email protected] [email protected]

Ameeru Ahmed Magu 39 Orchid Magu Bathala Island Resort Alif Alif Bathala B Resorts Investment Private B Resorts Investment Private Male', Republic of Maldives Male', Republic of Maldives. Limited (C-0542/2011) Limited (C-0542/2011) Angaga Island Resort Alif Dhaalu Angaga Angiri Resorts Management Angiri Resorts Management 3rd Floor, Neem Building, 3rd Floor, Neem Building, and Spa and Operations Pvt Ltd (C- and Operations Pvt Ltd (C- Majeedhee Magu, Galolhu, Majeedhee Magu, Galolhu, 0183/2001) 0183/2001) Male’ 20-119, Republic of Male’ 20-119, Republic of 2nd Floor, M.New Plot 2nd Floor, M.New Plot Maldives, Maldives, Ameenee Magu.(02-10-05) Ameenee Magu.(02-10-05) Tel: 00960 3317373, Fax: 00960 Tel: 00960 3317373, Fax: 00960 3316016, 3321862 3316016, 3321862 Male', Rep. of Maldives Male', Rep. of Maldives Biyaadhoo Island Resort Kaafu Biyaadhoo Sunland Hotels Pte. Ltd. Sunland Hotels Pte. Ltd. Angsana Resort & Spa Dhaalu Velavaru Maldives Bay Pvt Ltd Sancturay Sands Maldives Pvt. #04-01, STO Trade Center, #04-01, STO Trade Center, Maldives - Velavaru Watheenigasdhoshuge Ltd Orchid Magu Orchid Magu Majeedhee Magu H. Aage, 02nd Floor Male', Republic of Maldives Male', Republic of Maldives Male', rep. of Maldives Boduthakurufaanu Magu Male', Rep of Maldives [email protected]

Angsana Resort & Spa Kaafu Ihuru Banyan Tree Investment Holdings Ihuru Investments Pvt Ltd, Male' Canareef Resort Maldives Seenu Herethere Canaries Resorts Maldives Pvt Ltd Canaries Pte. Ltd. (C-0169/2014) Maldives Ihuru (HK) Ltd, Ground Floor, Ma.Rimkha Marina Building, 05th Floor Marina Building, 05th Floor c/o 211 Upper Bukit Timah Dhilbahaaru Goalhi, Male' Koli Umaru Manik Goalhi, Road Koli Umaru Manik Goalhi, Male, Republic of Maldives Singapore 588182 Male, Republic of Maldives Centara Grand Island Alif Dhaalu Machchafushi R.M.L Leisure Pvt. Ltd. Sioux Investment Pvt. Ltd. Resort & Spa Maldives c/o Shah, Hussain & Co. 2nd Floor, Filla Building 2nd Floor, (West Wing) H. Aage Boduthakurufaanu Magu 12, Boduthakurufaanu Magu Male', Republic of Maldives Male', Republic of Maldives

Sustainable Conservation Financing In The Maldives 53 Name Atoll Island Operator Lessee Centara Ras Fushi Resort Kaafu Giraavaru Centara Maldives Pvt.Ltd (C- Mr. Abdul Rauf & Spa 0479/2011) M. Snow Rose M. Row Ville, 04th Floor Male', Republic of Maldives Fareedhee Magu [email protected] Male', Rep of Maldives

Cheval Blanc Randheli Noonu Randheli I & T Management Pvt Ltd I & T Management Pvt Ltd M. Bageecha M. Bageecha Keneree Magu Keneree Magu Male', Rep of Maldives Male', Rep of Maldives

Cinnamon Dhonveli Kaafu Kanuoiy Huraa Tranquility Pvt. Ltd. (C-0344/2004) Tranquility Pvt. Ltd. Maldives 2nd Floor H. Maizan, Sosun Magu 2nd Floor H. Maizan, Sosun Male', Republic of Maldives Magu Male', Republic of Maldives [email protected]

Cinnamon Hakuraa Huraa Meemu Hakuraahuraa Fantasea World Investments Pvt. Global Pvt Ltd Maldives Ltd. Champa Building, 3rd Floor C/O John Keells Maldivian Resorts Kandi Dhon Manik Goalhi Pvt. Ltd. Male', rep. of Maldives 2nd Floor, H. Maizan Building Sosun Magu Male' 20-05, Republic of Maldives

Club Med Finolhu Villas Kaafu Gasfinolhu Maldivian Holiday Villages Private Fantasea World Investments Pvt. Ltd Ltd. c/o Club Med Hong Kong Limited 2nd Floor, H. Maizan Building PO Box 2051 Sosun Magu Male' City [email protected] Republic of Maldives

Club Med Kanifinolhu Kaafu Kanifinolhu Maldivian Holiday Villages Ltd (On Cyprea Pvt. Ltd. (436) Behalf of Club Mediterrannee S. A) 66/17 Boduthakurufaanu Magu (FC-0007/2012) Male', Republic of Maldives 11 Rue De Cambrai 75957 Paris Cedex 19, France

Coco Bodu Hithi Kaafu Boduhithi Sunland Hotels Pte. Ltd. Shinetree Holdings Pvt Ltd.(C- H. Moonlit Villa 0198/1994) Medhuziyaaraiy Magu Oceanic Building Male', Republic of Maldives No.7 Boduthakurufaanu Magu Male', Republic of Maldives

Coco Palm Dhunikolhu Baa Dhunikolhu Sunland Hotels Pte. Ltd. Sunland Hotels Pte. Ltd. #04-01, STO Trade Center, #04-01, STO Trade Center, Orchid Magu Orchid Magu Male', Republic of Maldives Male', Republic of Maldives [email protected]

Coco Privé Kuda Hithi Kaafu Kudahithi Sunland Hotels Pte. Ltd. Kudahithi Investments Pvt Ltd. Island #04-01, STO Trade Center, Opera Building Orchid Magu Chaandhanee Magu, No.02 Male', Republic of Maldives Male', Republic of Maldives

54 Towards sustainable conservation financing in the maldives Name Atoll Island Operator Lessee Cocoa Island Kaafu Makunufushi Orchid Resorts Management Pvt. Ahmed Fayaz Waheed Ltd.(C-0063/1999) Shaamilaa Abdulla H. Deens Villa, Meheli Goalhi Mohamed Niyaz Waheed Male', Republic of Maldives Aminath Riyaaza Waheed Aishath Shiyaaza Waheed Fathmath Shifaza waheed Hawwa Hifaza Waheed Ibrahim Shiyaz Waheed Hassan Mafaz Waheed mariyam Ali M. Sosunmaage, Male' (Legal Heirs of the late Abdulla Waheed, M. Sosunmaage)

Cocoon Maldives Lhaviyani Ookolhu Finolhu Cocoon Investments Pvt Ltd (C- Cocoon Investments Pvt Ltd (C- 0441/2011) 0441/2011) H. Sonary, 2nd Floor H. Sonary, 2nd Floor Boduthakurufaanu Magu Boduthakurufaanu Magu Male', Republic of Maldives Male', Republic of Maldives

Conrad Maldives Rangali Alif Dhaalu Rangalifinolhu Crown Company Pte. Ltd. Crown Company Pte. Ltd. Island 30 Boduthakurufaanu Magu 30 Boduthakurufaanu Magu PO Box 2034 PO Box 2034 Male', Republic of Maldives Male', Republic of Maldives [email protected]

Constance Halaveli Alif Alif Halaveli Waterfront Pvt. Ltd. Eastinvest Pvt. Ltd. Resort H. Thandiraiymaage, 02nd Floor H. Akiri, Boduthakurufaanu Magu Roashanee Magu Male', Republic of Maldives Male', Republic of Maldives [email protected]

Constance Moofushi Alif Dhaalu Moofushi Moofushi Development Ltd. Moofushi Investments Pvt.Ltd Resort (076295) (C-0793/2007) 10, Frere Felix de Valois Street Yaagoothuge, Muniyaa Magu Port Loius, Mauritius Male'Republic of Maldives c/o Shah Hussain & Co. 12, Boduthakurufaanu Magu 2nd Floor (East Wing) H.Aage Male', Rep. of Maldives

Dhevanafushi Maldives Gaaf Alif Meradhoo CDL HBT Oceanic Maldives Pvt CDLHT Oceanic Maldives Pvt Ltd Luxury Resort, Managed Ltd (C-0717/2013) (c-0716/2013) by Accorhotels Orchidmaage, 2nd floor ,Ameer Orchidmaage 02nd floor, Ameer Ahmed Magu ahmed magu Male'-20095, Republic of Maldives Male'-20095, Republic of Maldives [email protected]

Dhigali Maldives Raa Dhigali Coral Edge Pvt Ltd (C-0192/2014) Coral Edge Pvt Ltd (C- 39, Orchid Magu 0192/2014) Male', Republic of Maldives 39, Orchid Magu Male', Republic of Maldives

Sustainable Conservation Financing In The Maldives 55 Name Atoll Island Operator Lessee Dhiggiri Tourist Resort Vaavu Dhiggiri Dhiggiri Investment Pte Ltd. (C- Dhiggiri Investment Pte Ltd. 0203/1994) Opera Building, Chaandhanee Opera Building, Chaandhanee Magu Magu Male', Republic of Maldives Male', Republic of Maldives [email protected]

Dhigufaru Island Resort Baa Dhigufaruvinagandu Dhigufaru Investments Pvt Ltd (C- Dhigufaru Investments Pvt Ltd 0348/2014) (C-0348/2014) M. Huraa M. Huraa Fareedhee Magu Fareedhee Magu Male',City, Republic of Maldives Male',City, Republic of Maldives

Diamonds Athuruga Alif Dhaalu Athurugau Voyages Maldives Pvt. Ltd. Voyages Maldives Pvt. Ltd. Beach & Water Villas M. Narugis, Chaandhanee Magu, M. Narugis, Chaandhanee Magu, PO Box 2019 PO Box 2019 Male', Republic of Maldives Male', Republic of Maldives [email protected]

Diamonds Thudufushi Alif Dhaalu Thundufushi Seagull Group Pvt.Ltd Seagull Group Pvt.Ltd Beach & Water Villas Narugish, Chaandhanee Magu Narugish, Chaandhanee Magu Male', Republic of Maldives Male', Republic of Maldives E-mail: [email protected]

Dusit Thani Maldives Baa Mudhdoo DMS Property Investment Pvt. Ltd DMS Property Investment Pvt. Ltd (C-0492/2011) (C-0492/2011) H. Sonary Building, 7th Floor H. Sonary Building, 7th Floor Boduthakurufaanu Magu (PO BOX Boduthakurufaanu Magu (PO 2188) BOX 2188) Male', Republic of Maldives Male', Republic of Maldives

Ellaidhoo Maldives By Alif Alif Ellaidhoo Travel Club Pvt. Ltd. (C-121/1992) Ellaidhoo Investments Pvt Ltd Cinnamon H. Maizaan, 2nd Floor (C-202/1994) Sosun Magu 5A STO Aifaanu Building, Male', Republic of Maldives Boduthakurufaanu Magu

Embudhu Village Kaafu Embudhu Kaimoo Travels & Hotels Services Kaimoo Travels & Hotels Services Pvt. Ltd. Pte. Ltd. H. Maagala, Meheli Goalhi H. Maagala, Meheli Goalhi Male', Republic of Maldives Male', Republic of Maldives [email protected]

Eriyadhu Island Resort Kaafu Eriyadhu Platinum Capital Holdings Pvt. Ltd. Platinum Capital Holdings Pvt. 2nd Floor, M. Mahi Ltd. Boduthakurufaanu Magu 2nd Floor, M. Mahi Male', Republic of Maldives Boduthakurufaanu Magu Male', Republic of Maldives [email protected]

Fihaalhohi Island Resort Kaafu Fihaalhohi Fehi Moorithi Pvt Ltd (C- Fehi Moorithi Pvt Ltd (C- 0159/2012) 0159/2012) 6th Floor, Moorithi Buiding 6th Floor, Moorithi Buiding Chaandhanee Magu Chaandhanee Magu Male' City, Republic of Maldives Male' City, Republic of Maldives

Filitheyo Island Resort Faafu Filitheyo A.A.A. & Trading Company Pvt. Ltd. A.A.A. & Trading Company Pvt. G. Neem, Majeedhee Magu Ltd. Male', Republic of Maldives #17 & 19 Chaandhanee Magu Male', Republic of Maldives [email protected]

56 Towards sustainable conservation financing in the maldives Name Atoll Island Operator Lessee Finolhu Baa Atoll Maldives Baa Kanufushi Kanufushi Investments Pvt Ltd (C- Kanufushi Investments Pvt Ltd 0763/2012) (C-0763/2012) M.120, M.120, Majeedhee Magu Majeedhee Magu Male', Republic of Maldives Male', Republic of Maldives

Four Seasons Private Baa Voavah Landaa Giraavaru Pvt. Ltd. (FC- Landaa Giraavaru Pvt. Ltd. (FC- Island Maldives at Voavah 0154/2004) 0154/2004) 2706,RBS Tower, Times 2706,RBS Tower, Times Square Square 1 Matheson Street, Causeway Bay 1 Matheson Street, Causeway Hong Kong Bay Hong Kong

Four Seasons Resort Kaafu Kuda Huraa Four Seasons Hotel & Resorts BVI HPL Resorts (Maldives) Private Maldives at Kuda Huraa (On behalf ofHPL Resorts Limited.(C-0179/1993) (Maldives) Pvt. Ltd. C-0179/1993) M. Lux Lodge, 2nd Floor Aurora Building, 7th Floor, Orchid Magu Stadhouderskade 2 Male', Republic of Maldives 1054 Es Amsterdam, Netherlands

Four Seasons Resort Baa Landaa Giraavaru Landaa Giraavaru Pvt. Ltd. Landaa Giraavaru Pvt. Ltd. Maldives at Landaa 50, Cuscaden Road #08-01 50, Cuscaden Road #08-01 Giraavaru HPL House HPL House Singapore 249724 Singapore 249724

Fun Island Resort & Spa Kaafu Bodufinolhu Villa Shipping & Trading Company Villa Shipping & Trading Company Pvt.Ltd. Pvt.Ltd. Villa Building, Ibrahim Hassan Didi Villa Building, Ibrahim Hassan Didi Magu Magu Male', Republic of Maldives Male', Republic of Maldives [email protected]

Furaveri Island Resort & Raa Furaveri NAID Investments Pvt Ltd (C- Ahmed Ibrahim Didi (A032894) Spa 0939/2007) Ma. Niyazvilla, 10th Floor M.Newton, 3rd Floor Buruzumagu Dhanbu Goalhi Male', Rep. of Maldives Male', Republic of Maldives

Gangehi Island Resort Alif Alif Gangehi Noomadi Resorts Pvt. Ltd. Gangehi Invesments Pvt Ltd 1st Floor, H. Filimaage M. Nifea, 50/1 Orchid Magu Dheyliyaa Hingun Male', Republic of Maldives Male', Republic of Maldives

Gili Lankanfushi Kaafu Lankanfushi Promus Pvt. Ltd. Transco Pvt Ltd 2nd Floor, 3/4 Famudheyri Magu 2nd Floor, H. Marvel Male', Republic of Maldives Male', Republic of Maldives

Grand Park Kodhipparu Kaafu Kodhipparu CES Park Kodhipparu Pvt Ltd (C- CES Park Kodhipparu Pvt Ltd Maldives 1023/2016) (C-1023/2016) H. Aage, 6th Floor H. Aage, 6th Floor Male', Republic of Maldives Male', Republic of Maldives

Holiday Inn Resort Kaafu Kandoomafushi Lesiure Holidays Pvt Ltd Kandooma Holdings Pvt Ltd Kandooma Maldives Premier Chambers H.Aagadhage Building, 5th Floor 2nd Floor, M.Lux Lodge Boduthakurufaanu Magu Orchid Magu, Male'. Male', Republic of Maldives [email protected]

Sustainable Conservation Financing In The Maldives 57 Name Atoll Island Operator Lessee Holiday Island Resort and Alif Dhaalu Dhiffushi Villa Shipping & Trading Company Villa Shipping & Trading Company Spa Pvt.Ltd. (C-0017/1986) Pvt.Ltd.(C-0017/1986) Villa Building, Ibrahim Hassan Didi Villa Building, Ibrahim Hassan Didi Magu Magu Male', Republic of Maldives Male', Republic of Maldives [email protected]

Hurawalhi Island Resort Lhaviyani Huravalhi Champalars Holdings Pvt Ltd (C- Champalars Holdings Pvt Ltd (C- 0461/2014) 0461/2014) M. Champa Building, 4th Floor M. Champa Building, 4th Floor Kani Dhonmaniku Goalhi Kani Dhonmaniku Goalhi Male', Republic of Maldives Male', Republic of Maldives

Huvafenfushi Resort and Kaafu Nakatchafushi Universal Resorts Pvt. Ltd. Universal Resorts Ltd. Spa 39, Orchid Magu 39, Orchid Magu Male', Republic of Maldives Male', Republic of Maldives [email protected]

JA Manafaru Haa Alif Manafaru Jarh Maldives Pvt Ltd (C- Jarh Maldives Pvt Ltd (C- 0146/2014) 0146/2014) Marina Building, 7th Floor Marina Building, 7th Floor Koli Umar Maniku Goalhi Koli Umar Maniku Goalhi Male',Repulic of Maldives Male',Repulic of Maldives

Jumeirah Vittaveli Kaafu Bolifushi SPH Pvt. Ltd. Gateway Maldives Pvt. Ltd. 2nd Floor, (East Wing) H. Aage H. Mirihi, Abadhah Ufaa Magu 12, Boduthalurufaanu Magu Male', Republic of Maldives Male', Republic of Maldives [email protected] www.jumeirah.com

Kandima Maldives Dhaalu Kadinma Kandinma Holdings Pvt Ltd (C- Kandinma Holdings Pvt Ltd (C- 0512/2014) 0512/2014) H. Thuniya Building H. Thuniya Building Boduthakurufaanu Magu Boduthakurufaanu Magu Male', Republic of Maldives Male', Republic of Maldives

Kandolhu Island Maldives Alif Alif Kandholhudhoo Kandholhudhoo Holdings Pvt Ltd Kandholhudhoo Island Investment (C-0685/2013) Pvt Ltd. (C-0685/2013) 39 Orchid Magu, Male' 39 Orchid Magu, Male'

Kanuhura Lhaviyani Kanuhuraa SRL Management Ltd SRL Kanuhura Limited Suite 15, Oliaji, Trade Center 4th Floor DMK No.2 Fihaara Fracis Rachel Street, Victoria Chandhanee Magu, Male' Mahe', Seychelles Republic of Maldives

Kihaa Maldives Baa Kihaadhuffaru Coral Island Resort Maldives Pvt Athama Marine International Pvt Ltd (C-1236/2016) Ltd H.Thuniya Building, 3rd Floor H.Thuniya Building, 3rd Floor Boduthakurufaanu Magu Boduthakurufaanu Magu Male', Republic of Maldives Male', Republic of Maldives

Komandoo Maldive Island Lhaviyani Komandoo Komandoo Holdings Pvt. Ltd. (C- Komandoo Holdings Pvt. Ltd. Resort 0079/1999) (C-0079/1999) CHP-3 CHP-3 Kandi Dhon Manik Goalhi Kandi Dhon Manik Goalhi Male', Republic of Maldives Male', Republic of Maldives

58 Towards sustainable conservation financing in the maldives Name Atoll Island Operator Lessee Kudafushi Resort & Spa Raa Kudafushi Silver Drift Maldives Pvt Ltd (C- Ali Zahir (A028106) 1042/2015) H. Iruvelige H. Minha, 2nd Floor Moonimaa Hingun Karankaa Magu Male', Republic of Maldives Male', Republic of Maldives

Kuramathi Maldives Alif Alif Kuramathi Universal Enterprises Ltd. Universal Enterprises Ltd. 39, Orchid Magu 39, Orchid Magu Male', Republic of Maldives Male', Republic of Maldives [email protected]

Kuredu Island Resort Lhaviyani Kuredu Kuredhu Holdings (Pvt) Ltd. (C- Kuredhu Holdings (Pvt) Ltd. (C- 0009/1988) 0009/1988) 4th floor, Champa Building 4th floor, Champa Building Ahmadhee Baazaar Ahmadhee Baazaar Male', Republic of Maldives Male', Republic of Maldives [email protected]

Kurumba Maldives Kaafu Vihamanaafushi Vihamanaafushi Holdings Pvt Ltd Mr. Mohamed Umar Manik (C-0448/2011) (A053530) 39, Orchid Magu M. Rukkara Male'City, Republic of Maldives Male', Republic of Maldives

Lily Beach Resort Alif Dhaalu Huvahendhoo Lily Hotels Pte. Ltd. Lily Hotels Pte. Ltd. 2nd Floor, H. Fasmeeru Building 2nd Floor, H. Fasmeeru Building Boduthakurufaanu Magu Boduthakurufaanu Magu Male', Republic of Maldives Male', Republic of Maldives [email protected]

Loama Resort Maldives at Raa Maamigili Loama Maamigili Resort & Spa Pvt Ahmed Waheed (A055598) Maamigili Ltd (C-0443/2011) G.Vaffushi, Male' Uniya Building, 01st Floor Rep. of Maldives Fareedhee Magu K.Male', Rep. of Maldives

Lux South Ari Atoll, Alif Dhaalu Dhidhdhoofinolhu White Sands Resort and Spa Pvt Ari Beach Co Pvt Ltd Maldives Ltd M.Kinbidhooge Jazeera Building, 5th Floor Izzudheen Magu Boduthakurufaanu Magu Male', Republic of Maldives Male', Republic of Maldives

Maalifushi by Como Thaa Male'fushi I.V.P.L Investment Ventures Pvt. Ltd I.V.P.L Investment Ventures Pvt. (C-0822/2011) Ltd (C-0822/2011) H. Sea Side, 01st Floor H. Sea Side, 01st Floor Boduthakurufaanu Magu Boduthakurufaanu Magu Male', Rep of Maldives Male', Rep of Maldives

Maayafushi Tourist Resort Alif Alif Maayafushi Maayafushi Resort Management I.R.T.S Private Limited Pvt Ltd (C-0132/2011) M.Merry Gold, 6th Floor M. Omadu Fanu Building, 2nd Male', Republic of Maldives Floor Haveeree Hingun Male', Rep. of Maldives

Makunudhoo Island Kaafu Makunudhoo Sunland Travel (Pvt) Ltd. Sunland Travels (Pvt) Ltd. G.Shafaq,7th Floor H.Millenia Rah Dhebai Magu Ameeru Ahmed Magu Male', Republic of Maldives Male', Republic of Maldives [email protected]

Sustainable Conservation Financing In The Maldives 59 Name Atoll Island Operator Lessee Malahini Kuda Bandos Kaafu Kuda Bandos Malahini Holdings Pvt Ltd (C- Malahini Holdings Pvt Ltd (C- 0479/2013) 0479/2013) 3rd Floor, Jazeera Building 3rd Floor, Jazeera Building Boduthakurufaanu Magu Boduthakurufaanu Magu Male', Republic of Maldives Male', Republic of Maldives

Medhufushi Island Resort Meemu Medhufushi Medhufushi Investment Pvt. Ltd. Medhufushi Investment Pvt. Ltd. G. Neem, Majeedhee Magu G. Neem, Majeedhee Magu Male', Republic of Maldives Male', Republic of Maldives [email protected]

Meeru Island Resort Kaafu Meerufenfushi KASA Holdings Pvt. Ltd. (C- KASA Holdings Pvt. Ltd. 40/2001) Champa Building 3rd Floor Champa Building 3rd Floor Male', Republic of Maldives Male', Republic of Maldives

Milaidhoo Island Maldives Baa Milaidhoo Universal Enterprises Pvt Ltd (C- Universal Enterprises Pvt Ltd (C- 0467/1978) 0467/1978) 39, Orchid Magu 39, Orchid Magu K.Male', Republic of Maldives K.Male', Republic of Maldives

Mirihi Island Resort Alif Dhaalu Mirihi Manta Maldives Pvt. Ltd. (C- Manta Maldives Pvt. Ltd. 124/2001) 3rd Floor Champa Building 03rd Floor, Champa Building Male', Republic of Maldives Kandi Dhon Maniku Goalhi [email protected] Male', Republic of Maldives

Naladhu Kaafu Veligan'du Huraa Eutopia Holdings Pvt Ltd Deep Blue Private Limited 1st Floor, H. Meerubahurugeaage M.Sahkeyodhoshu Ge Ameeru Ahmed Magu 39 Orchid Magu Male', Republic of Maldives Male', Republic of Maldives.

Nika Island Resort and Alif Alif Kudafolhudhoo Nika Maldives Pvt.Ltd. Nika Maldives Pvt.Ltd. Spa G. Nafaa, Raadhafathi Hingun M. West House, Chambeylee M. West House, Chambeylee Magu Magu Male', Republic of Maldives Male', Republic of Maldives [email protected]

Niyama Maldives Dhaalu Embudhufushi and O Plus E Holding Pvt. Ltd Maldives Tourism Development Olhuveli H. Thuniyaa Building, 08th Floor and Corporation Boduthakurufaanu Magu Haage, 4th Floor Republic of Maldives Boduthakurufaanu Magu

Oblu By Atmosphere at Kaafu Helengeli S.P.C Pvt Ltd (C-0173/2014) Helengeli Island Resort Pvt Ltd Helengeli (East Wing) Aage, 2nd Floor (C-0554/2014) 12 Boduthakurufaanu Magu H.Orchid Maage Male, Rep. of Maldives Ameer Ahmed Magu Male', Rep. of Maldives

Olhuveli Beach and Spa Kaafu Olhuveli Emerald Resorts Pvt. Ltd. (C- Hotels and Resorts Holdings Pvt. Maldives 0058/2005) Ltd.(C-0066/1992) H.Maley-Thila, Meheli Goalhi G. Sunset, Husnuheenaa Magu Male', Republic of Maldives Male', Republic of Maldives

One & Only Reethi Kaafu Medhufinolhu Reethi Rah resort Pvt. Ltd. Reethi Rah resort Pvt. Ltd. Rah,Maldives 1st Floor, Fasmeeru Building 1st Floor, Fasmeeru Building 25, Boduthakurufaanu Magu 25, Boduthakurufaanu Magu Male', Republic of Maldives Male', Republic of Maldives

60 Towards sustainable conservation financing in the maldives Name Atoll Island Operator Lessee Outrigger Konotta Gaaf Konotta O.K.M Private Limited (C- O.K.M Private Limited (C- Maldives Resort Dhaalu 0535/2014) 0535/2014) H. Orchidmaage H. Orchidmaage 2nf Floor, Ameer Ahmed Magu 2nf Floor, Ameer Ahmed Magu K. Male', Rep of Maldives K. Male', Rep of Maldives

Ozen By Atmosphere At Kaafu Maadhoo D.P.C Private Limited (C- M.T.R Holdings Pvt Ltd (C- Maadhoo 0705/2013) 0586/2013) H.Aage, 3rd Floor Premier Chambers 12, Boduthakurufaanu Magu M. Lux Lodge, 02nd Floor Male', Rep. of Maldives Orchid Magu Male', Rep. of Maldives

Palm Beach Resort & Lhaviyani Madhiriguraidhu Ibrahim Ali Manik, Ibrahim Ali Manik, Spa Maldives Ma. Nooree, Male'. Ma. Nooree, Male'. [email protected] [email protected]

Paradise Island Resort Kaafu Lankanfinolhu Villa Shipping & Trading Company Diza Travel & Trade Pvt. Ltd. and Spa Pvt.Ltd. Villa Building, Ibrahim Hassan Didi (on behalf of Diza Trade & Travels Magu Pvt. Ltd.) Male', Republic of Maldives Villa Building, Ibrahim Hassan Didi [email protected] Magu Male', Republic of Maldives

Park Hyatt Maldives, Gaaf Alif Hadahaa Driftwood Maldives Pvt.Ltd. Driftwood Maldives Pvt.Ltd. Hadahaa M. Vaarey Villa M. Vaarey Villa Izzudeen Magu Izzudeen Magu Male', Republic of Maldives Male', Republic of Maldives E-mail: gm@driftwoodmaldives. com.mv

Ranveli Island Resort Alif Dhaalu Villingilivaru Ms. Khadheeja Hassan (A035734) Ms. Khadeeja Hassan (A035734) M.Maalimeege, Fiyaathoshi Goalhi M. Maalimeege, Fiyaathosi Goalhi Male, Rep of Maldives Male', Republic of Maldives

Reethi Beach Resort Baa Fonimagoodhoo Mahogany Private Limited RBRM Pvt Ltd (C-0316/2015) G.Rosary View, 06th Floor Orchid Maage Husnuheena Magu Ameer Ahmed Magu Male', Republic of Maldives Male',Repulic of Maldives

Rihiveli Kaafu Mahaana elhi Huraa Castaway Maldives Pvt Ltd Mahal Tours Ltd. 3rd Floor, Dalina Building No.02 Ocean View Orchid Magu Male', Republic of Maldives Male; 20183 Republic of Maldives

Robinson Club Maldives Gaaf Alif Funamauddua Robinson Club Maldives Pvt Ltd Robinson Club Maldives Pvt Ltd (C-196/2009) (C-196/2009) c/o Premier Chembers c/o Premier Chembers 2nd Floor, Lux Lodge 2nd Floor, Lux Lodge Orchid Magu Orchid Magu Male', Republic of Maldives Male', Republic of Maldives

Sustainable Conservation Financing In The Maldives 61 62 Towards sustainable conservation financing in the maldives This long list demonstrates that there We also take note of the concept Social equity, sustainable use and, is many of the country’s biodiversity of ‘ecological complexes’ in the indeed, management are integral assets are being managed and used definition which, though not a term components of the IUCN definition of by private companies, mostly by island which the Parties have decided to conservation. Hence, for our purposes, resorts. These companies need play use, is reflected in the interest in we use the term ‘conservation’ to a role in both the implementation of broader landscapes and seascapes. encompass the environmental, the Maldives Biosphere Reserve and In the Maldives, of course, seascapes economic and social dimensions of the in the establishment of the Maldives with their complex compositions of three objectives of the CBD. Conservation Fund. ecological systems, habitats and species are source of the country’s natural wealth. ANNEX F. INTRODUCTION ANNEX E. USE OF TERMS TO CONSERVATION – BIODIVERSITY AND In Article 1, the CBD sets out what to do about biodiversity: FINANCE CONSERVATION This annex is included to provide Agreed use of terms will be important The objectives of this Convention, some background information on in establishing a conservation financing to be pursued in accordance conservation finance. It is a succinct system in the Maldives. This appendix with its relevant provisions, are introduction from the Conservation discusses some of the challenges we the conservation of biological Finance Network website:135 face in how we use words such as diversity, the sustainable use of biodiversity. its components and the fair and equitable sharing of the benefits Conservation Finance 101 The biodiversity conservation arising out of the utilization of community uses several terms, often genetic resources… What exactly is conservation finance? interchangeably. These include terms Why is it increasingly relevant to such as nature, living natural resources, Unfortunately, this wording has environmental conservation today? biodiversity, ecosystems, landscapes, separated the concept of conservation Which sectors does it involve? How seascapes, wildlife, wilderness, and, from the concepts of sustainable does it work? more recently, natural capital. This mix of use and equitable sharing. Thus, it is terms also appears in this report. Thus, it common today to see expressions If you are new to conservation finance, is important to clarify how we approach such as ‘conservation and sustainable these may be some of the questions these terms. Our starting point is the use’ or ‘equitable and sustainable you find yourself asking. Here, we definition of biodiversity set out in the use.’ Prior to the launch of the CBD, attempt to answer some of these text of Article 2 of the 1992 Convention however, its three objectives were questions and give a brief overview. on Biological Diversity (CBD): also expressed in the meaning of conservation as defined by IUCN This overview is not meant to be all- The variability among living and its partners in the 1980 World inclusive or in-depth. Rather, it seeks to organisms from all sources Conservation Strategy: paint a picture of the field with broad- including, inter alia, terrestrial, brush strokes so that newcomers may marine and other aquatic Conservation is the management of gain an understanding of some basic ecosystems and the ecological human use of the biosphere so that concepts and orient themselves within complexes of which they are it may yield the greatest sustainable this evolving and exciting field. part; this includes diversity within benefit to present generations while species, between species and of maintaining its potential to meet ecosystems. the needs and aspirations of future What is conservation finance? generations. Thus, conservation is From this definition and its use by positive, embracing preservation, Conservation can be broadly defined the CBD Parties over the years, we maintenance, sustainable utilization, as the stewardship, protection restoration, and enhancement of understand that ecosystems, species and restoration of nature and the the natural environment. and genetic resources are components environmental services on which of biodiversity. Thus, terms such people depend. It encompasses as ‘biodiversity and ecosystem a diverse set of subjects including services’ are somewhat redundant forestry, agriculture, fresh water, open as an ecosystem service is actually a biodiversity service at the ecosystem 135 See: http:// level. conservationfinancenetwork.org/ conservation-finance-101

Sustainable Conservation Financing In The Maldives 63 space, oceans and cities. (Clark, 2007; Huwler et al., 2014; How is the field combining NatureVest & Eko Asset Management tradition and innovation? The practice of conservation finance Partners, 2014). is far from new. In the United States, it Traditionally, conservation has been dates back to the 1634 creation of the Annual funding across the globe funded by non-market mechanisms Boston Common, the first example in is estimated to be approximately such as public-grant programs, private the English-speaking world in which a $50 billion, provided primarily by foundation grants, donations from self-governing people taxed themselves philanthropic, multi-lateral, and wealthy individuals and families, and to purchase open space for the governmental sources (Parker, government budget allocations (World provision of public and private benefits Cranford, Oakes, & Leggett, 2012). Wildlife Fund, 2009). These funding (Levitt, 2005). This falls far short of the estimated streams can be volatile over time, as $300-$400 billion needed annually they are often affected by the state Although its boundaries are (Credit Suisse, World Wildlife Fund, & of the economy and shifting donor somewhat fuzzy, in the most general McKinsey & Company, 2014). interests. As a result, the availability of sense conservation finance can be funding does not always align with the considered to be the practice of raising With flat and sometimes shrinking highest conservation priorities at the and managing capital to support government support and limited right time. environmental conservation (Clark, philanthropic dollars, filling this gap 2007). It includes the set of financial from current funding sources is highly This can result in piecemeal outcomes structures that can be employed unlikely (NatureVest & Eko Asset as conservationists protect what they to invest in the conservation and Management Partners, 2014). can with limited funding. However, restoration of ecosystems and the conservationists have been and services they provide over the long Private investment capital offers continue to be very successful in term (Huwler, Kaeppeli, Serafimova, enormous potential to help fill this achieving enormous results in the face Swanson, & Tobin, 2014). gap. Even if only 1% of the global of these challenges. assets under management (money At the core of conservation finance is currently invested across the globe) Conservation finance presents the the underlying belief that it is possible were allocated for private conservation opportunity to complement traditional to align environmental, social and investments, it would provide enough funding and form more diversified economic returns: the so-called triple capital to fill this annual shortfall and dependable funding streams. bottom line. New strategies that rely (NatureVest & Eko Asset Management Such sustainable funding enables on market-based mechanisms to Partners, 2014). organizations to engage in more stimulate positive environmental and proactive, strategic conservation and social outcomes, as well as financial execute holistic programs with long- returns, have emerged. These What fields have contributed to term, scaled-up goals and objectives. strategies complement the traditional this growing specialty? funding models, which remain critical, Conservation finance vehicles primarily particularly for leveraging private-sector Conservation finance is strongly include innovative market-aligned conservation investments. interdisciplinary by nature. It bridges mechanisms that generate double- the gap between the banker and the and/or triple-bottom-line returns. These Sources for conservation financing biologist, finance and ecology, and Wall include: include public, private and non- Street and the Catskills Mountains. • Direct earned income via the sustainable profit entities. Structures include tax production of food and fiber, recreation, incentives, loans and investments, Professionals in the field have a wide hunting or ecotourism; ecosystem-services markets, and range of backgrounds including • Environmental services markets (such catalytic grants and donations. investment banking, environmental as a market for watershed protection science, law, conservation biology, in which downstream water users pay and management consulting. They upstream communities to preserve What challenges does work in for-profit, non-profit, and watershed health); and conservation finance address? public organizations. They collaborate • Impact investing seeking to maximize a with stakeholders ranging from double or triple bottom line (investments There is a need for enormous increases local communities to international with financial, environmental, and/or in the financial resources deployed for development finance institutions (DFIs) social objectives) (World Wildlife Fund, conservation and increasing recognition to national, state and local governments 2009). that conservation finance has the (World Wildlife Fund, 2009). potential to address this need while generating significant financial returns.

64 Towards sustainable conservation financing in the maldives Public and/or philanthropic grants What challenges lie ahead? Some of these issues may need often are used to catalyze the process policy interventions to tweak market by helping to shape conditions that The conservation finance community conditions to allow for increased enable conservation investments and is adept at working with the traditional investments. Others will be addressed increasing the appeal of such deals to funding vehicles described above, as management teams gain experience private-sector investors. but these funding sources are not and develop new tools and techniques. projected to increase significantly in years to come. If current trends continue and the How is the market expanding? conservation finance market is able It appears that much of the future to overcome these challenges, it will A November 2014 study by NatureVest of conservation lies with the rapidly surely play an increasingly important and Eko Asset Management Partners growing investments market role in providing the capital needed for found that the market is undergoing (NatureVest & Eko Asset Management environmental conservation around the rapid growth and increasing interest. Partners, 2014). However, this market world. Private investment in conservation has not reached maturity. It faces doubled from 2004-2008 and again several significant barriers that must be Conservation Finance Network was from 2009-2013. $23.4 billion in overcome in order to take advantage of developed to help both seasoned conservation impact investments the increasing capital available. professionals and those just entering were made from 2009-2013. 92% the field navigate these challenges and • There is a shortage of investable deals of this total came from international with an appropriate risk/return profile, to stimulate innovation by highlighting DFIs, which expect to increase a clear exit strategy, and a skilled successful case studies, building a these investments by 50% by 2018 management team with a track record community of practice, and bringing the (NatureVest & Eko Asset Management of success (NatureVest & Eko Asset potential of conservation finance to a Partners, 2014). Management Partners, 2014). wider audience. • Short-term valuation of natural While private investments only ecosystems encourages disregard for Last updated December 28, 2015 accounted for about 8% of the total, the public goods they provide, such they grew by an average annual rate as the provision of water quality and of 26% and are projected to total $4.6 quantity (Huwler et al., 2014). billion from 2014-2018. DFI funders • Most investable conservation deals are primarily invested in water quantity too small to attract investment at scale and quality conservation projects (Huwler et al., 2014; NatureVest & Eko while private investors focused on Asset Management Partners, 2014). sustainable food and fiber production • Conservation finance asset classes projects (NatureVest & Eko Asset are undeveloped and unstandardized Management Partners, 2014). (Huwler et al., 2014). • Institutional investors lack familiarity with The capital available for conservation environmental issues and conservation projects is rapidly increasing and ready deals. to start filling the gap in global funding. • The conservation community has a However, only time will tell if the dearth of the financial skills needed to conservation finance market will be able structure investable deals. to mature and better structure itself to • There is a lack of effective and effectively absorb this growing capital. standardized impact measures (NatureVest & Eko Asset Management Partners, 2014).

Sustainable Conservation Financing In The Maldives 65 REFERENCES Credit Suisse, World Wildlife Fund, & McKinsey & Company. (2014). Conservation finance: Moving beyond donor funding toward an investor-driven approach.136 Clark, S. (2007). A field guide ot conservation finance. Washington, DC: Island Press. Huwler, F., Kaeppeli, J., Serafimova, K., Swanson, E., & Tobin, J. (2014, January 21). Making conservation finance investable. Stanford Social Innovation Review.137 Levitt, J.N. (2005). From Walden to Wall Street: Frontiers of conservation finance. Washington, DC: Island Press. NatureVest & Eko Asset Management Partners (2014). Investing in conservation: A landscape assessment of an emerging market.138 Parker, C., Cranford, M., Oakes, N., & Leggett, M. (2012). The little biodiversity finance book. Oxford, UK: The Global Canopy Programme. World Wildlife Fund. (2009). Guide to conservation finance. Washington, DC.

136 Retrieved from https://www.credit-suisse.com/media/cc/docs/responsibility/conservation-finance-en.pdf 137 Retrieved from http://ssir.org/up_for_debate/article/making_conservation_finance_investable 138 Retrieved from https://www.jpmorganchase.com/corporate/Corporate-Responsibility/document/InvestingInConservation_ Report_r2.pdf

66 Towards sustainable conservation financing in the maldives Sustainable Conservation Financing In The Maldives 67 INTERNATIONAL UNION FOR CONSERVATION OF NATURE

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