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8/2/2019 Iucn Shell Bishop

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Building Biodiversity BusinessReport of a Scoping Study

Joshua Bishop, Sachin Kapila, Frank Hicks, Paul Mitchell

Presentation to Conservation CEOs

11th October 2006


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Source: Chape, S., Harrison, J., Spalding, M.,and Lysenko, I. 2005. Measuring the extentand effectiveness of protected areas as anindicator for meeting global biodiversity targetsPhil. Trans. R. Soc. B, 360, 443455.

Progress on protected areas but much more

needed to stem biodiversity loss

Growth in PA numbers and area Red List Index for birds

Adapted from: Butchart, S.H.M., Stattersfield,A.J., Baillie, J., Bennun, L.A., Stuart, S.N.,Akakaya, H.R., Hilton-Taylor, C., and Mace,G.M. 2005. Using Red List Indices to measureprogress towards the 2010 target and beyondPhil. Trans. R. Soc. B, 360, 255268.


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The biodiversity financing gap and

mainstreaming opportunities


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Booming global

carbon markets:

Total value of carbon contracts, US$ millions, reported by Natsource; IETA; World Bank (2005); Point Carbon (2006)

Start of European ETS(Jan 2005)

- A wave to rideand guide

- A model forbiodiversity?

0

5,000

10,000

15,000

20,000

25,000

30,000

2003 2004 2005 2006

U

S$Million

ETS CDM & other

0

20

40

60

80

100

120

1998 1999 2000 2001 2002

US$M

illion

(Projected)


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How to stimulate biodiversity

conservation by the private sector?

Sticks

Carrots

Flexibility

Increase the penalty for

damage / loss of habitat

Increase the reward for

conservation effort

Consumers choose how muchbased on preferences

Producers choose level of

performance based on costs


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Scoping Study - Terms of Reference

Take a snap-shot of the current biodiversity business

landscape

Review existing policy, legal and fiscal frameworks that

enable biodiversity businesses to grow and develop

Assess the level of technical knowledge and material

available with regards to biodiversity business tools

Analyse a range of approaches to financing biodiversity

businesses


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The process so far

Scoping study: Jan-Sep 2006 Interviewed ~160 people in >50 orgs.

Expert workshop: May 2006 Draft report under-going review (>1000

people)


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Findings 1: Sector Analysis

Direct

Bioprospecting

Biodiversity offsets Biod. mgmt. services

Ecotourism

Sport hunting & fishing

Indirect

Agriculture

Forestry

Fisheries

NTFPs

Biocarbon Watershed payments

Gaps &

opportunities

What is

working /

not?

Key

players

Where

is it?

Status &

Trends

What

is it?

Sector


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Findings 2: Mechanism analysis

Enabling policy

Voluntary as well as mandatory

Corporate, local, national, international

Business tools Product development, quality control, supply-chainmanagement, marketing, biodiversity reporting

Financing instruments Grants, debt, equity


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Finance

Enablingpolicy

Businesstools

Assist NTFP producers with

new product development,

quality control, marketing

and supply chain mgmt.

Provide investment capital to

NTFP enterprises that adopt best

management regarding

sustainable harvesting and local

community support

Help NFTP producers over-

come regulatory hurdles toregister their products and

enter new markets

Support independentcertification of NTFP

sustainability


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The BBF

Think TankPolicy

Legal

Fund

Debt / equityinvestments

Match Maker

Business development

assistance

Review &

evaluation of

business tools

Pipelineidentification

CertificationMetrics


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Workshop recommendations

(Wye River, 30-31 May 2006) Enlist other partners

Enabling policy is critical

Focus on large-scale, systemic change

Aim to kick-start the biodiversity market

Nurture a BBF on the back of a few best bets

Sell-on successful pilots to bigger investors

Develop clear targets and indicators of success

Focus on constraints to biodiversity business


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Selecting best bets for

potential pilot projects

Biodiversity benefit

Pro-poor rating

Internal rate of return

Scalability

Timing

Risk

Relevance to IUCN, Shell & others


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Best bet 1: Conservation Carbon

What?

Expand market for biodiversity-friendlycarbon offsets to mitigate climate change

How?

Develop models, metrics and standards for

large-scale land use change Mobilize buyers of carbon credits through

forest, wetland and/or soil conservation


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Best bet 2: Biodiversity Offsets

What? Provide site-based conservation to compensate

for the residual, unavoidable habitat loss causedby projects with a direct footprint on land or seaHow?

Develop policy, tools and capacity to ensurecredible biodiversity offsets (BBOP) Set up private conservation bank(s) for voluntary

and compliance markets Promote a biodiversity no net loss club

Site-level pilots and information sharing (BBOP) Biodiversity reporting and compensation targets Group-level offset policy with 3rd party verification


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Best bet 3: Sustainable Biofuels

What?

Develop markets for biodiversity-friendly andpro-poor biofuels

How?

Develop meta-standard and multi-commoditycertification protocols for biofuel feed stocks(oil palm, sugarcane, soya, etc)

Stimulate supply via direct investment insustainable producers and marketing

Research and development on biofueltechnology (e.g. perennial feed stocks)


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Best bet 4: Biodiversity

Management Services

What? Support improved biodiversity management in

private companies and public agencies

How?

Set up commercial consulting firm(s) targeting

leadership companies Promote best-practice biodiversity management

tools, capacity-building, verification services


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Next steps

Revise and publish Phase 1 report Agree TOR and funding for Phase 2

Build core team and partnerships

Business development phase

Business plans for best bets

Pilot projects to test concept


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Are we on the right track?

Choice of best bets (Conservation

carbon, Biodiversity offsets, Bio-fuels,Biodiversity management services)

Process (scoping, reporting, businessplanning, pilots, eventually a facility)

Partners (IUCN and Shell, with ForestTrends and others)


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Thank you!


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Contemporary challenges of

biodiversity conservation

Over-exploitation of biological resources

Under-supply of ecosystem services Unfair distribution of costs and benefits

Inadequate government response


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Biodiversity conservation

must become

Bigger

Better

Faster

From US$10 Billion/year to

$100 Billion/year or more?From 12% of land area to15% plus marine PAs

More cost-effectiveSocially equitableWealth enhancing

Keep pace with land usechange, biotechnology,

climate change, publicpreferences

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