Biodiversity Financing in Uganda: a Policy and Institutional Review BIODIVERSITY FINANCING IN UGANDA: POLICY AND INSTITUTIONAL REVIEW MAY 2017 Biodiversity Financing in Uganda: b Policy and Institutional Review Biodiversity Financing in Uganda: c Policy and Institutional Review Copyright ©2017 United Nations Development Programme and National Environment Management Authority. All rights reserved ISBN NO: 978-9970-881-11-6 Citation: United Nations Development Programme and National Environment Management Authority (2017), Biodiversity Policy and Institutional Review, National Environment Management Authority, Kampala UNDP Team David Meyers Senior Technical Advisor Wilson Kwamya Team Leader Inclusive Green Growth Onesimus Muhwezi Team Leader Environment, Climate and Disaster Resilience Daniel Omodo McMondo Programme Analyst Editorial Team NEMA Editor in Chief BIOFIN National Project Coordinator Sabino Francis Ogwal National Environment Management Authority Editors Elizabeth Birabwa Aliro Economic Policy Center for Research Evelyn Lutalo National Environment Management Authority Fred Onyai National Environment Management Authority James Elungat National Environment Management Authority Mary Nabatanzi ENR Africa Centre Monique Akullo BIOFIN/National Environment Management Authority Aiden Jullian Asekenye National Environment Management Authority Bob Nuwagira National Environment Management Authority Elizabeth Mutayanjulwa National Environment Management Authority Consultants Francis Mwaura BIOFIN - Private Finance /Business National Expert Fred Roland Muwanika BIOFIN - Private Finance /Business National Expert Moses Masiga BIOFIN - Biodiversity/ Environmental Economics National Expert Biodiversity Financing in Uganda: d Policy and Institutional Review Biodiversity Financing in Uganda: e Policy and Institutional Review BIODIVERSITY FINANCING IN UGANDA: POLICY AND INSTITUTIONAL REVIEW MAY 2017 Biodiversity Financing in Uganda: f Policy and Institutional Review Biodiversity Financing in Uganda: i Policy and Institutional Review FOREWORD The Policy and Institutional Review (PIR) was undertaken as part of the Uganda’s development of a Biodiversity Finance Plan supported by the Biodiversity Initiative (BIOFIN) project. The BIOFIN project is a global partnership seeking to address the biodiversity finance challenge in a comprehensive and systematic manner. It was launched by the United Nations Development Programme (UNDP) in October 2012 with financial support from the European Union (EU), Government of Germany, Switzerland and Norway through UNDP. The aim of the initiative is to enable governments to construct a sound business case for increasing investment in the sustainable and equitable management, protection and restoration of biodiversity and ecosystems. BIOFIN was implemented by the National Environment Management Authority (NEMA) on behalf of the Government of Uganda (GOU) Generally, the trends of biodiversity highlighted in the PIR report point to declines in forest cover, wetland cover, and increasing pressure on water resources and water catchments. The natural resources in protected areas manly national parks, wildlife reserves and to some extent central forest reserves suffered much less degradation compared to the natural resources on private land. The major drivers for degradation are high woody biomass energy demand, agriculture, settlements and infrastructure development, coupled with inadequacy in implementation, compliance and enforcement. The evolution of institutional arrangements in biodiversity management and financing was mirrored by the evolution in policy and institutional reforms for environmental and natural resource management, forestry management, wildlife management and water resources management. The National Environment Action Plan (NEAP) had envisaged an umbrella arrangement for all biodiversity management activities with NEMA providing coordination for lead agencies and district local governments specifically charged with management of environment and natural resources. In the case of biodiversity, the National Biodiversity Strategy and Action (NBSAP) provide a framework for biodiversity management in Uganda. NEMA is responsible for the development of NBSAP (in consultation with relevant stakeholders) as well as coordinating its implementation on behalf of Government. The NBSAP brings together stakeholders to agree on priority actions for biodiversity management taking account Although the NBSAP brings together actors to agree on priority actions for biodiversity management the PIR shows that financial resources mobilised for biodiversity management are inadequate and, many times, not efficiently or effectively utilised. The distribution of benefits from the current state of biodiversity management points to major welfare and economic impacts on households resulting from high deforestation, wetland degradation, low soil fertility, reduction in capture fisheries, reduced water quality. The high demand and over dependency on biomass energy and land for agriculture, low agricultural productivity and wetland conversion were the main direct drivers of biodiversity loss. Communities with a high dependence on the environment and natural resources and those that live adjacent to the critical ecosystems are the major losers from the loss of biodiversity. Disproportionate profits are made by traders and urban consumers who benefit from unregulated harvest of forestry, wetland and other natural resources to attain high volumes of sale, and cheap ecosystem goods and service, respectively. Provision of adequate biodiversity finance that is efficiently and effectively utilized is critical for maintaining the integrity, productivity and sustainable use of biodiversity and the associated ecosystem services. Implementation of the recommendations from PIR including sector level strategic environment Biodiversity Financing in Uganda: ii Policy and Institutional Review assessments, improved implementation of financing mechanisms, forest and wetland ecosystem restoration, catchment management and institutional capacity building for environment and natural resource management especially at sub-national level will go a long way in supporting implementation of the NBSAP. The findings of the PIR has also be been used to inform and guide the development of the Biodiversity Finance Plan. The Biodiversity Finance Plan is a publication under the BIOFIN project. I encourage stakeholders to use it in planning for resource mobilization for biodiversity conservation and management. Dr. Tom .O. Okurut EXECUTIVE DIRECTOR NATIONAL ENVIRONMENTAL MANAGEMENT AUTHORITY Biodiversity Financing in Uganda: iii Policy and Institutional Review ACKNOWLEDGMENTS This policy and institutional review (PIR) is a result of collaboration and support of various institutions and individuals. The National Environment Management Authority (NEMA) would like to acknowledge with profound thanks the contribution of NEMA Management, experts, advisors, consultants, members of the BIOFIN Technical Steering Committee, representatives from Government Ministries, Departments and Agencies (MDAs), the Private Sector and Civil Society Organisations (CSOs). NEMA is grateful to the following institutions for their contribution and active participation in developing the PIR: Animal Genetic Resources Centre, Ministry of Agriculture, Animal Industry and Fisheries Aquaculture Research & Development Centre Buikwe District Local Government Bujagali Energy Limited (BEL) Bwindi Impenetrable National Park Department of Forestry, Biodiversity and Tourism, Makerere University Department of Water Resources Management (DWRM) International Union for the Conservation of Nature (IUCN) Isimba Hydro Power Project Fisheries Department of Fisheries, Ministry of Agriculture, Animal Industry and Fisheries Kayunga District Local Government Makerere University Department of Biological Sciences Ministry of Finance, Planning and Economic Development (MoFPED) Ministry of Energy and Mineral Development Ministry of Tourism, Wildlife and Antiquities (MTWA) Ministry of Water and Environment (MWE) Mukono District Local Government National Agricultural Research Organization (NARO) National Animal Genetic Resources Centre and Data Bank (NAGRC&DB) National Fisheries Resources Research Institute (NaFIRRI) National Forestry Authority (NFA) National Planning Authority (NPA) Nature Uganda Oyam District Local Government Plant Genetic Resource Centre, Entebbe Rhino Fund Uganda The Technical Committee on Biodiversity Conservation Biodiversity Financing in Uganda: iv Policy and Institutional Review Total E&P Uganda Uganda Bureau of Statistics (UBOS) Uganda Export Promotion Board (UEPB) Uganda National Council for Science and Technology (UNCST) United Nations Development Programme (UNDP) Uganda Wildlife Authority (UWA) Uganda Wildlife Conservation Education Centre (UWCEC) Wakiso District Local Government Wetlands Management Department (WMD) Wildlife Conservation Society (WCS) World Wide Fund for the Conservation of Nature (WWF) NEMA further acknowledges the technical support from the United Nations Development Progrmme (UNDP) Uganda Country Office, Global Biodiversity Finance Initiative (BIOFIN) team. Special thanks to the European Union (EU), Government of Germany, Norway, and Switzerland for the financial support. NEMA is also grateful to Mr. Sabino Francis Ogwal for effectively coordinating and guiding the BIOFIN project on behalf of Government. NEMA extends appreciation to Ms Monique Akullo for the day to