Uganda’s experience with the UNDP Biodiversity Finance Initiative (BIOFIN):

Manage for better results when mainstreaming biodiversity

Angella Rwabutomize Matsiko Ministry of Finance, Planning and Economic Development

OECD: Biodiversity and Development Workshop

Paris, France 18th February 2015

A. Facts about Biodiversity in Uganda: Tourism sector

B. Bionfin approach in Uganda

C. Other Biodiversity funding mechanisms

D. Mainstreaming process

E. Challenges in mainstreaming

F. Opportunities

Outline of the presentation

A. Facts about Biodiversity in Uganda

A. Facts about Biodiversity in Uganda

Uganda (241,000 Sq km: over 36 million people) is a natural resource based economy that highly depends on biodiversity based sectors like agriculture, tourism, forestry and water resources.

Biodiversity plays a key role in national development by providing material for various sectors of the economy.

As a result, the above sectors remarkably contribute in terms of employment, food security, total GDP, foreign exchange, security and poverty alleviation.

Tourism contribution

Total contribution of travel and tourism to GDP:

UGX 5,495 billion ($ 2.11 m: 7.9% of GDP) in 2013 from UGX 4,994 billion in 2012 ($1.92m)

Uganda’s path to development Vs Biodiversity conservation…

This is a fairly new concept that requires building of a business case for increased investment in the management of ecosystems and biodiversity: Resources towards this initiative to date: US$ 468,000

Uganda is in the inception phase and currently a consultant is being procured to help in understanding the concept

However, Uganda has had to make initial steps/entry point into adopting the approach:Take stock of where we have come from; where we are; where we want to go; the challenges and opportunities

BIOFIN in Uganda

Review existing biodiversity policies, institutional set up and capacity and the expenditures to date

o Policy and drivers of biodiversity and ecosystem changes: identify policies and practices that lead to biodiversity loss (Policy on Oil and Gas that is not explicit on conservation of biodiversity; Bush burning)

o Institutions and overlapping mandates (NEMA and Ministry of Water and Environment: who is the implementor)

o Public and private expenditure needed disaggregated over a specified period of time: Government funding and the private sector funding

Entry point for BIOFIN in Uganda…

Development/review of the National Biodiversity Strategy and Action Plan (2015 – 2025)

The 3rd NBSAP revision process involved:

o Identification of relevant biodiversity institutions

o Formulation of 4 Thematic areas to look at Policy, legislature and institutional framework; Aquatic and terrestrial biodiversity; Biotechnology and Biosafety; and Biodiversity and National Development

o Thematic Working Groups (TWGs) formed

o Consultants were hired to collate the information from the TWGs

Entry point for BIOFIN in Uganda…

Entry point for BIOFIN in Uganda…

Defining the costs of implementing National Biodiversity Strategies and Action Plan

o Biodiversity Strategies, Actions

and Costs: The cost of implementing the NBSAP is estimated at USD 119,320,000.

o Overall costs, projected expenditures and finance gaps

o Uganda has developed Guidelines and an action plan for financing biodiversity conservation (September 2014)

Developing a strategy to mobilise resources for biodiversity finance: scheduled for this year 2015 o Potential finance actors, mechanisms,

revenue and feasibility: Funds allocated and/or proposed by government, donors and trusts will represent a core source of funding for the Action Plan.

Explore other innovative financing mechanisms o Integrated and operational resource

mobilization plan

Initiate implementation of the Resource Mobilisation Strategy:

Received funding for this 4th component from the US$176,336 from the Government of Germany

B. Other Biodiversity Funding Mechanisms

Traditional Financing Mechanisms

o Financial disbursements to the Central Government Departments and Agencies

o Budget support allocations from donors

o Trust funds

Innovative financing mechanisms o Payments for ecosystem services, o Biodiversity offsets (how do we

compensate for any residual significant, adverse impacts that cannot be avoided, minimized and/or rehabilitated or restored: for example developers of large infrastructure projects like hydro electric power, oil and gas to use these offsets)

o Environmental fiscal reforms (taxation/subsidies: on pollution or harmful emissions like cement),

o Green markets (like ecotourism) through natural resource trade and value chains,

o Climate finance o Global Environment Facility (GEF) and

other donor-funded programmes

Within the national context: This has been mainstreamed into the

2nd NDP mainly on ecosystem restoration –

wetlands and forests: Cabinet recently passed a

resolution to cancel all titles in wetlands

Growth in infrastructure projects like Hydropower, oil

and gas, mining, transport and works have

mainstreamed biodiversity concerns.

Potential impacts of road construction like loss of

trees, should be followed with planned and costed mitigation measures like planting trees, grassing

Biodivesity issues have been integrated into

the EIA processes spearheaded by

National Environment Management

Authority

Energy being an emerging sector in terms of oil and gas exploration has

included aspects of biodiversity.

MoFPED, OPM, MWE and NEMA have developed a checklist for mainstreaming environment into the Budget Framework

papers and this is used for funding a project and M&E and appraisal

D. Mainstreaming process…

Poverty continues to bite thus encroachment on biodiversity

Population increase (1 woman = 7.2 children)

Limited/inadequate financing for implementation of mitigation aspects

Lack of data/information to guide proper decision making

Political will Vs the demands of voters

Physical Infrastructure Vs natural resource infrastructure is high on Uganda’s development agenda (physical infrastructure budget not marched with resources for mitigation)

Weak institutional collaboration

E. Challenges in mainstreaming…

Value addition to biodiversity products

Improved market access for biodiversity products

Employment opportunities

Use of biodiversity resources to alleviate poverty

Valuation of biodiversity and ecosystem services and their linkage to national development

Policy, legal and institutional framework in places

Funding of REDD-plus and the development of the REDD strategy in place

F. Opportunities

ASANTE SANA

THANK YOU

MERCI