References to Economic References to Economic Instruments in Selected MEAsInstruments in Selected MEAs

Matthew StilwellMatthew Stilwell

Economic Instruments in Economic Instruments in Selected MEAsSelected MEAs

Exploring the role of economic instruments in the Exploring the role of economic instruments in the context of three biodiversity-related MEAs:context of three biodiversity-related MEAs:– Convention on Biological DiversityConvention on Biological Diversity– Convention on Trade in Endangered Species of Flora and Fauna Convention on Trade in Endangered Species of Flora and Fauna

(CITES)(CITES)– Convention on Wetlands (Ramsar Convention)Convention on Wetlands (Ramsar Convention)

Some considerations for Working Group:Some considerations for Working Group:– Guidance on areas of overlap and synergy, where economic Guidance on areas of overlap and synergy, where economic

instruments may have a roleinstruments may have a role– Conventions developed in different erasConventions developed in different eras– Conventions share common objectivesConventions share common objectives– Conventions share common approachesConventions share common approaches

Convention on Biological DiversityConvention on Biological Diversity

The Convention’s three main goals:The Convention’s three main goals:– The conservation of biodiversityThe conservation of biodiversity– Sustainable use of the components of biodiversitySustainable use of the components of biodiversity– Sharing the benefits arising from the commercial and Sharing the benefits arising from the commercial and

other utilization of genetic resources in a fair and other utilization of genetic resources in a fair and equitable wayequitable way

According to the Conference of the Parties, According to the Conference of the Parties, incentives:incentives:

““are essential elements in developing effective are essential elements in developing effective approaches to conservation and sustainable use of approaches to conservation and sustainable use of biological diversity especially at the level of local biological diversity especially at the level of local communities” (Decision V/14) communities” (Decision V/14)

Main obligations relating to economic Main obligations relating to economic instruments in the CBDinstruments in the CBD

Conservation and sustainable use of Conservation and sustainable use of components of biological diversity:components of biological diversity:

““Each Contracting Party shall, as far as possible and as Each Contracting Party shall, as far as possible and as appropriate, adopt economically and socially sound measures appropriate, adopt economically and socially sound measures that act as incentives for the conservation and sustainable use of that act as incentives for the conservation and sustainable use of components of biological diversity” (Article 11)components of biological diversity” (Article 11)

In situ conservation (Article 8)In situ conservation (Article 8)Sustainable use of the components of biological Sustainable use of the components of biological diversity (Article 10)diversity (Article 10)Other obligations (e.g. access to and transfer of Other obligations (e.g. access to and transfer of technology (Article 16))technology (Article 16))

Relevant COP and subsidiary body Relevant COP and subsidiary body decisions (CBD)decisions (CBD)

COP6 adopts Decision VI/15COP6 adopts Decision VI/15– recognizes that further work has to be undertaken on positive recognizes that further work has to be undertaken on positive

incentives and their performance, as well as on perverse incentives and their performance, as well as on perverse incentives and their removal or mitigationincentives and their removal or mitigation

– requests the Executive Secretary, in collaboration with relevant requests the Executive Secretary, in collaboration with relevant organizations, to elaborate proposals for the application of ways organizations, to elaborate proposals for the application of ways and means to remove or mitigate perverse incentivesand means to remove or mitigate perverse incentives

– encourages Parties and relevant organizations to submit case-encourages Parties and relevant organizations to submit case-studies, lessons learned and other relevant information on studies, lessons learned and other relevant information on incentive measures (especially on positive and perverse incentive measures (especially on positive and perverse incentives) to the Executive Secretaryincentives) to the Executive Secretary

– Proposals for the design and implementation of incentive Proposals for the design and implementation of incentive measures (Annex 1)measures (Annex 1)

– Recommendations on further cooperation on incentive measures Recommendations on further cooperation on incentive measures (Annex 2)(Annex 2)

CITESCITESCITES aims to ensure that international trade in specimens of wild CITES aims to ensure that international trade in specimens of wild animals and plants does not threaten their survivalanimals and plants does not threaten their survival CITES recognizes “that international co-operation is essential for the CITES recognizes “that international co-operation is essential for the protection of certain species of wild fauna and flora against over-protection of certain species of wild fauna and flora against over-exploitation through international trade” (preamble)exploitation through international trade” (preamble)CITES lists species in three appendices:CITES lists species in three appendices:– Appendix I includes species threatened with extinction. Trade in Appendix I includes species threatened with extinction. Trade in

specimens of these species is permitted only in exceptional specimens of these species is permitted only in exceptional circumstances.circumstances.

– Appendix II includes species not necessarily threatened with extinction, Appendix II includes species not necessarily threatened with extinction, but in which trade must be controlled in order to avoid utilization but in which trade must be controlled in order to avoid utilization incompatible with their survival.incompatible with their survival.

– Appendix III contains species that are protected in at least one country, Appendix III contains species that are protected in at least one country, which has asked other CITES Parties for assistance in controlling the which has asked other CITES Parties for assistance in controlling the trade.trade.

No explicit references to incentives in text, but decision No explicit references to incentives in text, but decision taken on economic incentives at recent COP meetingtaken on economic incentives at recent COP meeting

Relevant COP and subsidiary body Relevant COP and subsidiary body decisions (CITES)decisions (CITES)

COP 11 Strategic Plan for the ConventionCOP 11 Strategic Plan for the Convention– stresses the importance of the economic dimension of CITES, stresses the importance of the economic dimension of CITES,

and recognizes the need for economic incentives to ensure that and recognizes the need for economic incentives to ensure that wildlife trade is carried out in a responsible and sustainable wildlife trade is carried out in a responsible and sustainable mannermanner

COP12 adopts decision on economic instrumentsCOP12 adopts decision on economic instruments– technical workshop on wildlife trade policies and economic technical workshop on wildlife trade policies and economic

incentives applicable to the management of and trade in CITES-incentives applicable to the management of and trade in CITES-listed specieslisted species

– Based on workshop, develop a methodology to review those Based on workshop, develop a methodology to review those policies and to make targeted recommendations on the use of policies and to make targeted recommendations on the use of those incentivesthose incentives

– Includes voluntary review of Parties national policy regarding the Includes voluntary review of Parties national policy regarding the use of and trade in CITES-listed speciesuse of and trade in CITES-listed species

– Compile and synthesize the information provided by the Parties, Compile and synthesize the information provided by the Parties, and produce a report analysing the economic impacts of wildlife and produce a report analysing the economic impacts of wildlife trade policies trade policies

Ramsar ConventionRamsar Convention

Ramsar Convention promotes:Ramsar Convention promotes:““the conservation and wise use of all wetlands through local, the conservation and wise use of all wetlands through local, regional and national actions and international cooperation, as a regional and national actions and international cooperation, as a contribution towards achieving sustainable development contribution towards achieving sustainable development throughout the world” (preamble)throughout the world” (preamble)

No explicit reference to incentives in textNo explicit reference to incentives in textGeneral obligations relevant to use of economic General obligations relevant to use of economic instruments:instruments:

““The Contracting Parties shall formulate and implement their The Contracting Parties shall formulate and implement their planning so as to promote the conservation of the wetlands planning so as to promote the conservation of the wetlands included in the List, and as far as possible the wise use of included in the List, and as far as possible the wise use of wetlands in their territory” (Article 3.1)wetlands in their territory” (Article 3.1)Parties shall “…endeavour to coordinate and support present Parties shall “…endeavour to coordinate and support present and future policies and regulations concerning the conservation and future policies and regulations concerning the conservation of wetlands and their flora and fauna”of wetlands and their flora and fauna” (Article 5) (Article 5)

Relevant COP and subsidiary body Relevant COP and subsidiary body decisions (Ramsar)decisions (Ramsar)

Strategic Plan adopted at COP8 includes:Strategic Plan adopted at COP8 includes:– goal of promoting “incentive measures that encourage the goal of promoting “incentive measures that encourage the

application of the wise use principle, and the removal of perverse application of the wise use principle, and the removal of perverse incentives” (Operational Objective 8)incentives” (Operational Objective 8)

– Review policy, legal and institutional frameworks to identify and Review policy, legal and institutional frameworks to identify and promote those measures which encourage conservation and wise promote those measures which encourage conservation and wise use of wetlands and to identify and remove measures which use of wetlands and to identify and remove measures which discourage conservation and wise use, and develop supportive legal discourage conservation and wise use, and develop supportive legal and policy frameworks for the design and implementation of and policy frameworks for the design and implementation of incentive measuresincentive measures (Resolution VIII.23) (Resolution VIII.23)

– When reviewing agricultural policies, identifying possible subsidies When reviewing agricultural policies, identifying possible subsidies or incentives that may be having negative impacts on water or incentives that may be having negative impacts on water resources and wetlands and remove or replace them by incentives resources and wetlands and remove or replace them by incentives that would contribute to wetland conservation (Resolution VIII.34) that would contribute to wetland conservation (Resolution VIII.34)

– In collaboration with relevant bodies and experts and the Bureau, In collaboration with relevant bodies and experts and the Bureau, investigating linkages between incentives and related topics investigating linkages between incentives and related topics including financial mechanisms, trade, impact assessment and including financial mechanisms, trade, impact assessment and valuation. (Resolution VIII.23) valuation. (Resolution VIII.23)

Relevant COP and subsidiary body Relevant COP and subsidiary body decisions (Ramsar)decisions (Ramsar)

Also mentions economic incentives in Also mentions economic incentives in relation to:relation to:– integration of wetlands wise use into sustainable integration of wetlands wise use into sustainable

development (Operational Objective 3.1)development (Operational Objective 3.1) – the restoration and rehabilitation of wetlands the restoration and rehabilitation of wetlands

(Operational Objective 4)(Operational Objective 4) – local communities, indigenous people and cultural local communities, indigenous people and cultural

values (Operational Objective 6)values (Operational Objective 6)

Other resolutions at COP8 also address Other resolutions at COP8 also address economic incentives – awaiting publicationeconomic incentives – awaiting publication

Thematic areas for the use of Thematic areas for the use of economic instrumentseconomic instruments

Conservation and sustainable useConservation and sustainable use

Economic instruments for in situ conservationEconomic instruments for in situ conservation

Raising financial resourcesRaising financial resources

Sustainable tradeSustainable trade

Payments for environmental servicesPayments for environmental services

Transferring technology/know-how/ capacity Transferring technology/know-how/ capacity buildingbuilding

Addressing perverse subsidiesAddressing perverse subsidies