our goal:

lasting human well-being

fresh water | food | climate resilience | livelihoods

CI-P’s ES work

• Mapping of Ecosystems Services in KBAs

• TEV of MMPL and Endowment Challenge Fund

Capitalization

• Quirino Forest Carbon Project – completed validation

and verification

• Building Community and Ecosystems Resilience to

Climate Change and Disasters through Green Grey

Infrastructure in Concepcion, Iloilo

• Cost Effectiveness of Coastal Protection Services in

Silonay Mangrove Forest Conservation and

Ecotourism area – An EbA to CC intervention

• National Blue Carbon Technical and Policy Working

Group

Conservation

Finance: An

Endowment Fund

for

Mt.

Mantalingahan

Protected

Landscape

(MMPL)

Cagayan de Oro

November 2016

Ricky Nuñez Country Executive Director

• Introduction to CI’s conservation

finance

• CI’s experience in conservation

finance

• MMPL TEV

• MMPL Endowment

• MMPL Endowment Benefits

• Next Steps

SESSION OUTLINE

©Photo credit

Introduction• Conservation Finance describes the practice of raising and managing capital to support land, water, and resource conservation.

• Conservation has traditionally been financed mostly through grants.

• Great potential to finance more conservation through commercial investments where Conservation activities activate cash flows (PES).

What Conservation Finance?

Non grant financing

Indirect or a direct financial investment in conservation which is made to activate cash flows part of which goes back to the investors. This is often referred to as Impact Investing.

Cash flows can be generated from PES.

Investment is usually in the form of debt or equity.

Sources of Non-grant financing: Impact driven organizations (foundations, for profit impact investors etc.), international financial institutions (including through green bonds), investment funds (eg – MeloyFund, Althelia and Ecobusiness Fund) and traditional commercial investors.

Grant financing

• Grants are non-repayable funds or

products disbursed by one party (grant

makers), often a government

department, corporation, foundation or

trust, to a recipient, often (but not

always) a nonprofit entity, educational

institution, business or an individual.

• Sources of Conservation Grants:

Philanthropy (individuals, foundations

etc.), government (including debt

swaps), international financial

institutions and corporations (CSR,

etc).

Experience in Grant Financing

CI’s global conservation fund (GCF) has

significant experience in sophisticated grant

financing for long term conservation funds which

are either endowments or sinking funds.

GCF finances the creation, expansion and long-term management of protected areas in the world’s biodiversity hotspots, high biodiversity wilderness areas and important marine regions.

GCF helps finance long-term management of protected areas by helping to establish and capitalize endowments.

An Endowment Fund is a trust fund scheme where the CAPITAL is PRESERVED AS A PERMANENT ASSET and only the income from INTEREST earned on its capital is SPENT.

GCF endowments are managed by conservation trust funds (CTFs).

GCF in the Philippines

Presidential Proclamation 181523 June 2009

120,457 hectares

2013 Best Protected Area showcasing Civil Society Partnership

History of CI Engagement in MMPL

Planning Phase – 2004 Outputs:

A project entitled “Creating a New Protected Area in

Mantalingahan Mountain Range” was developed.

A rapid biological survey in four sampling sites in the

lowland forests of Mantalingahan range confirmed high

species richness and diversity.

A rapid stakeholder and policy analysis was

undertaken

History of CI Engagement in MMPL

Implementation Phase – 2005-2010 and

Desired Outputs:

Presidential Proclamation for Mt.

Mantalingahan 2009

Management plan 2010

Business plan 2010

Some of the steps undertaken: Compilation of Maps

and Technical Description

Municipality

# of

Brgys Area (ha)

Rizal 8 59,406.79

Brooke’s Pt. 14 34,412.07

Quezon 5 13,367.52

Bataraza 6 8,159.04

Espanola 3 5,111.58

TOTAL 36 120,457.00

Some of the steps undertaken: Resource Profiling

Presidential Proclamation - June 2009

MMPL Management MMPL is managed by a Protected Area Management Board (PAMB) • composed of 71 members• affirmed by the DENR Secretary• guided by an adopted operations manual

MMPL Management Programs(2010-2020)

1. Resource Management and Protection2. Community Development and Outreach3. Tourism and Recreation4. Institutional Development, Administration and Fiscal

Management

Why is Mantalingahan Important?Forest cover: 79%11 forest types

Plants: 920 species Mammals: 35 species Birds: 129 speciesReptiles: 30 speciesAmphibians: 14 speciesGlobally threatened: 23 species

New Discoveries: at least 11 species(both flora & fauna)

Saccolaimus saccolaimus

Pin-tailed parrot finch

Erythrura prasina

Coelogyne

Palawan soft-furred mountain rat

Palawanomys furvus

© CI Phils

© CI Phils © CI Phils

Medinilla sp.

© CI Phils

© CI Phils

1. Direct UsesWater, TimberOccupants’ land-based livelihood,Occupants’ river-based livelihood, Ecotourism

2. Indirect UsesCarbon stock, Soil conservation, Soil fertility maintenance, Watershed and biodiversity functions Protection of coastal & marine ecosystemsEcosystem services of tropical forests Recreation

Why is Mantalingahan Important?

MMPL Total Economic Value: $5.6B

Estimated reduction in benefits if

mining will be allowed is $1.118

billion, while the cost of rehabilitation

is $105 million for a total of $ 1.223

billion

at least US$ 3M(assuming net 5% per annum interest,

to cover the minimum annual management expenses)

Target Endowment Capital

MMPL is the first protected area in the country with an endowment fund

US$ 1M challenge capital fund

CI’s Commitment to MMPL endowment

Launch of Endowment Fund for

Mt. Mantalingahan Protected Landscape (MMPL)Palawan, Philippines

CI provided a of US$1 Million to PTFCF (endowment manager) as initial capital for the MMPL Endowment, pursuant to a grant

agreement entered into in January 2016. The endowment fund will be launched on October 7, 2016 in Manila.

• PA proclaimed in June 2009

• 120,457 hectares

• habitat of more than 1000 species of

flora & fauna

• home to at least 12,000 indigenous

Palawan men & women

• total economic value is US$5.6B of

MMPL

• first Protected Area in the country with

an endowment fund

Philippine Tropical Forest Conservation Foundation (PTFCF)

Trust Fund Manager

Grant agreement between CI (GCF) and PTFCF was signed in January 2016

MMPL Endowment Operations Manual adopted by PTFCF to supplement PTFCF governance and administrative rules

MMPL Endowment Oversight Committee established to assist PTFCF Board to govern MMPL Endowment

Endowment invested in a diversified investment portfolio targeting a net USD equivalent 5% annual return

Endowment revenues primarily allocated to costs prescribed in an acceptable annual work plan and budget submitted by the MMPL PAMB for the financing of activities under the MMPL Management Plan

Major Elements of MMPL Endowment

Endowment Fund Management StructurePhil. Tropical Forest

Conservation Foundation (PTFCF)

(Trust Fund Manager)Owns Endowment Sub-Account; Manages Endowment Investment, with the advice of an Investment Advisor;Makes grant making decisionsAdministers grant-making;Assists with fund raising

Endowment Oversight Committee

Makes grant making recommendations to the Trust Fund Manager;Reviews investment management;

MMPL PAMB(Implementing

Body)

Submits workplans and budgets;

Provides reports

Advises

Periodic transfers of grants

Benefits from MMPL Endowment sustainable financing for adequate and long term protection of the

ecosystem services of MMPL such as promoting sustainable

ecotourism

livelihood diversification for at least 12,000 indigenous Palawan men

and women towards improving their well-being

ensure clean freshwater to all residents of southern Palawan for

domestic and agricultural uses

Ensure management effectiveness of MMPL.

stop deforestation and contribute towards carbon sequestration

(approx 32MtC)

PTFCF Board of Trustees to approve MMPL endowment operations manual; - done October 2016

Disbursement of GCF endowment capital grant ($1M) to PTFCF; - Done October 2016

Finalizing investment management arrangements for the MMPL Endowment. - Being undertaken with an investment institution. Fundraising for MMPL Challenge capital fund

to fill the gap of $2M.

Next Steps

MARAMING

SALAMAT PO!