ARPA Sutstainable Finance of Protected Area Systems

Sustainable Finance of Protected Area Systems
an experience from Brasil
July 2007
Governos Estaduais da Amazônia Brasileira:
Acre, Amazonas, Amapá, Mato Grosso, Pará,
Rondônia e Tocantins
Ministério
do Meio Ambiente
31.07.2007
Seite 1
ARPA
ƒ A program of the Federal
Government of Brazil
ƒ In cooperation with civil
society, donors, Federal
States and municipalities
ƒ To expand and consolidate
50 Million ha protected
areas in the Brazilian
Amazon until 2013
31.07.2007
Seite 2
Working Areas of ARPA
Until 30th of June 2007:
Disbursed US$ 24.059.349,93 in Investments
Capitalized US$ 14.794.659,21 in FAP
Supported 65 Protected Areas
Totalling 34.670.987 ha.
Unidades
de Conserva¨
Conservation
Units (CUs)‹ o-UC
Unidades
de Conserva¨
‹ o apoiadas
Conservation
Units with ARPA
supportpelo ARPA
ēr
ea
em
estudo
para
cria¨
‹
o
de
Areas being studied for creation ofUCCUs
Terras
ind’genas
Indigenous
Territories
Terras
ind’genas
regularizadas pelo PPTAL
Indigenous Territories with PPTAL support
31.07.2007
Seite 3
The ARPA structure
German Taxpayers
Donor Committee
Private Donors
MMA
World Bank
Administration
FAP – Endowment Fund
Sinking Fund
Financial Management
AIG
Running cost
Switzerland
Goal: 240 Mio. US$ capital in 2013
Investments
Now: 14,8 Mio US$ capital
Committed: 57,3 Mio. US$ until 2008 Environmental Agencies
of Federal States
Disbursed: 24,1 Mio. US$ until June 2007
Timeframe: “Forever”
Timeframe: “Until 2013”
Conservation Units
Management, Coordination, Assessment
Financial flows
31.07.2007
Seite 4
Issues of Sustainable Finance
Improving financial
administration and
effectiveness
Use
Taking a comprehensive
view on costs and benefits
Disposition
Creating an enabling
framework
Building capacity to use
financial mechanisms
Capacity Building
Building a transparent and
accountable Governance
structure beneficial to actors
Governance
Theory
“Maintenance” – Replacement and running costs
Aquisition
“Implementation Phase” - Investment
Building diverse funding
portfolio
“Constitutional Phase” – Designing Master Plan
Emerton / Bishop / Thomas 2006
adapted to the logic of a development programme.
31.07.2007
Seite 5
Sustainable Finance – closing the gap
Protected Areas‘
demand for finance
Aquisition
Efficient resource use
Use
Direct instruments
Maximizing its returns
Capitalization of fund
Capacity Building
To make things work
today and tomorrow
Governance
Set incentives to
stick to the rules
Public budget
Disposition
Getting the money from the „right“ to the „left“
31.07.2007
Seite 6
2003-2013
2000-2002
Project Appraisal Document
(18th of July, 2002)
“Constitutional
Strategy”
Overall Governance Structure
Sinking Fund
Endowment Fund
(Investments until 2012)
(Running costs “forever”)
Mechanisms for
disposition of funds
Efficient resource use
Capacity Building
Direct instruments
Capitalization of fund
2003-”forever”
MAINTENANCE
IMPLEMENTATION
CONSTITUTION
Sustainable Finance in ARPA
“Implementation /
Instrumental
Strategies”
Maximizing returns
31.07.2007
Seite 7
Examples
Examples for financing instruments and strategies in ARPA
Constitutional Phase
Acquisition
Use
Implementation Phase
Maintenance Phase
Donor Committments,
Fundraising goal,
Sustainable Finance
Component
Selection of
complementary financing
instruments (FUNBIO)
FAP Investment Strategy
(FUNBIO)
Definition of CU categories
eligible for support
Conservation and
investment strategy (MMA)
---
PEP and TT (MMA)
Disposition
Capacity Building
Selection of Sinking Fund
and Endowment Fund as
overarching financing
instruments
Establishment of FAP
Assigning funds for
capacity building that
contributes to achievement
of objectives
Capacity Building Working
Group (f.e. GESPUBLICA
etc.)
---
Establishment of “Cerebro”
and “Conta vinculada”
---
31.07.2007
Seite 8
Conservation and Investment Strategy
High priority
Low priority
(modificado de Noss et al., 2002)
31.07.2007
Seite 9
Conservation and Investment Strategy
-65
-60
-55
-50
-45
5
5
0
0
-5
-5
-10
-10
Work in progress. Do not cite.
-70
Reservado
Excluído
-15
-70
-65
-60
-55
-50
Insubstituibilidade
1 (insubstituível)
>0.8 - <1 -15
>0.6 - 0.8
>0.4 - 0.6
>0.2 - 0.4
>0 - 0.2
IRREPL = 0
-45
31.07.2007
Seite 10
Work in progress. Do not cite.
Conservation and Investment Strategy
31.07.2007
Seite 11
Complementary financial instruments
31.07.2007
Seite 12
FAP investment strategy
Adapted Investment strategy of June 2006
Commodities; 4,5
Funds; 4,5
BRL Pre-fixed Bonds; 20
Global Equities; 9
USD Brazilian Bonds; 20
USD Bonds; 42
Annual performance of portfolio (until
June 2007): 7,22%
31.07.2007
Seite 13
Some observations
ƒ Too early to draw real lessons on sustainable finance (we are still in the
implementation phase)
ƒ There is no „one“ Financing strategy, rather a „Financing strategy hierarchy“ that is not
explicit, but seems to work pretty well
ƒ Constitutional strategy (high-level representatives of all actors involved)
ƒ Instrumental strategies (Different set of actors depending on instrument)
ƒ Strategies and instruments need to be process-oriented and able to adapt to changing
framework conditions
ƒ Governance structure is decisive for success of financing instrument(s)
ƒ Technical tools important to support decision-making, but decisions are taken in a
political negotiation process
31.07.2007
Seite 14
Thank you!
Johannes Scholl
[email protected]
0055-61-3214-8403
Governos Estaduais da Amazônia Brasileira:
Acre, Amazonas, Amapá, Mato Grosso, Pará,
Rondônia e Tocantins
Ministério
do Meio Ambiente
31.07.2007
Seite 15