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Direct and Indirect Incentives forBiodiversity Conservation
(Introduction to the Symposium)
Agi KissAgi KissAfrica Environment and Social Africa Environment and Social
Development GroupDevelopment Group
The World BankThe World Bank
July 15, 2002July 15, 2002Society for Conservation Society for Conservation
Biology 2002 Annual MeetingBiology 2002 Annual Meeting
Canterbury, UKCanterbury, UK
Investment in Biodiversity Conservation
$500 million per year worldwide (CI estimate)$500 million per year worldwide (CI estimate)
World Bank-financed projects since 1990:World Bank-financed projects since 1990: – over $ 1 Billion IDA/IBRD + over $ 1 Billion IDA/IBRD + – $450 million GEF +$450 million GEF +– $1$1..2 billion co-financing2 billion co-financing
Winning a few battles (?); losing the warWinning a few battles (?); losing the war
Main Causes of Biodiversity Loss
Transformation, degradation, Transformation, degradation, fragmentation of habitatfragmentation of habitat
Over-exploitation, extractionOver-exploitation, extraction Invasive alien speciesInvasive alien species PollutionPollution DiseaseDisease
Main Causes of Biodiversity Loss
Transformation, degradation, fragmentation of Transformation, degradation, fragmentation of habitathabitat
Over-exploitation, extractionOver-exploitation, extraction Invasive alien speciesInvasive alien species PollutionPollution DiseaseDisease
Often involving: large areas, large numbers of people, Often involving: large areas, large numbers of people, long periods of time, economic drivers, commercial long periods of time, economic drivers, commercial interests, external playersinterests, external players
Main Conservation Approaches & Incentives
Protected Protected AreasAreas
Outside PAsOutside PAs
Industrialized Industrialized CountriesCountries
Recreational Recreational use/employmentuse/employment
Land purchaseLand purchase
EasementsEasements
Conserv. SubsidiesConserv. Subsidies
Legislation (eg Legislation (eg ESA)ESA)
Developing Developing CountriesCountries
““Co-management”Co-management”
Revenue/benefit Revenue/benefit sharingsharing
Community-based Community-based
ConservationConservation
ICDPsICDPs
(LEAST DIRECT)
SPECTRUM Of CONSERVATION INCENTIVES
(MOST DIRECT)
SPECTRUM OF CONSERVATION INCENTIVES (LEAST DIRECT) • Use/marketing of extracted biological products
(MOST DIRECT)
SPECTRUM OF CONSERVATION INCENTIVES (LEAST DIRECT) • Use/marketing of extracted biological products• Use/marketing of biodiversity within relatively intact ecosystems
(MOST DIRECT)
SPECTRUM OF CONSERVATION INCENTIVES (LEAST DIRECT) • Use/marketing of extracted biological products• Use/marketing of biodiversity within relatively intact ecosystems• Compensation for reduced-impact land and resource use
(MOST DIRECT)
SPECTRUM OF CONSERVATION INCENTIVES (LEAST DIRECT) • Use/marketing of extracted biological products• Use/marketing of biodiversity within relatively intact ecosystems• Compensation for reduced-impact land and resource use• Direct payment for environmental services (biodiversity as side-benefit)
(MOST DIRECT)
SPECTRUM OF CONSERVATION INCENTIVES (LEAST DIRECT) • Use/marketing of extracted biological products• Use/marketing of biodiversity within relatively intact ecosystems• Compensation for reduced-impact land and resource use• Direct payment for environmental services (biodiversity as side-benefit) • Acquiring land and biodiversity use rights
(MOST DIRECT)
SPECTRUM OF CONSERVATION INCENTIVES (LEAST DIRECT) • Use/marketing of extracted biological products• Use/marketing of biodiversity within relatively intact ecosystems• Compensation for reduced-impact land and resource use• Direct payment for environmental services (biodiversity as side-benefit) • Acquiring land and biodiversity use rights• Direct payment for biodiversity conservation (MOST DIRECT)
Use/Marketing of Extracted Biological Products
Finite resources with limited renewal capacity
Vs.
Expanding, virtually inexhaustible demand
Use/marketing of biodiversity within relatively intact ecosystems
Limited prospects
Not always biodiversity-friendly
Compensation for reduced- impact land & resource uses
Direct subsidies (e.g. Conservation Reserve Program)
Price subsidies (e.g. Green Certification)
Project support or subsidies for multiple use systemsor “alternative livelihoods”(including improved agriculture, IGAs, etc.)
Market limitations
Targeting problems
Addition instead of substitution
Direct payment for (non-biodiversity) environmental services
Watershed protection
Water purification
Carbon sequestration
Biodiversity conservation is a “side-benefit”… may or may not result
Acquiring biodiversity and land use rights
Logging Concessions
Tradeable Quotas
Conservation Leases and EasementsSuccess depends on
institutional environment (e.g. judiciary)
Employment issues, esp. in LDCs
Direct payment for biodiversity outcomes
Specify outcomes, not methods
Indicators and monitoring are critical