Julie CLARKE "Establishing a dryland fund for SLM projects in South Africa"

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  • ESTA TABLA INTRODUCE EL TEMA, SOLO DECIR CUALES SON LOS TIPOS DE INSTRUMENTO Y UNA BUENA FORMA DE AGRUPARLOS ES EN TIPOS DE MECANISMOHAY QUE INDICAR QUE LUEGO SE VERA UNA MUESTRA DE MECANISMOSTAMBIEN QUE ESA ES SOLO UNA FORMA DE ORGANIZAR LA INFORMACION Y QUE ALGUNOS DE LOS MECANISMOS PUEDEN CALZAR EN VARIOS TIPOS. (POR EJEMPLO UN PSA PODRIA SER UN ESQUEMA D EPAGO PUBLICO O UN ACUERDO PRIVADO AUTOORGANIZADO,

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  • 1. Establishing a dryland fund for SLM projects in South AfricaJulie Clarke, Development Bank of Southern AfricaGraham von Maltitz Council for Scientific andIndustrial ResearchMuleso Kharika Department of Environmental Affairsand Tourism
  • 2. Our common journey to scale up and make the change Scaling up Green Economy Resilience of Landscapes Responsibilities, partnerships and opportunities
  • 3. MEETING URGENT NEEDSMeeting food; fuel; water; poverty reduction needsMeeting environmental concerns; carbon,biodiversityWhy a fund?Extensive publics works, but poor mechanism todrive long term sustainabilityNeed exceeds governments ability to fundPrivate sector with $ has no mechanism to link tocommunities with need
  • 4. The three conventions Source COP 17 Land Day Reduced carbon Desertification Decreased plant sequestration and soil organisms into above- and below- ground UNCCD species diversity carbon reserves Reduced primary production and nutrient cycling Reduced soil conservation Soil erosion Increase in extreme events (floods, droughts, fires ) Reduced carton Reduced structural diversity reserves and of vegetation cover and increased CO2 diversity of microbial emissions species in soil crust Loss of nutrients and soil moisture Climate change Biodiversity loss UNFCCC Increases and reductions in species CBD abundances Change in community structure and diversityIn green : major components of biodiversity involved in the linkagesBolded : major sources impacted by biodiversity losses
  • 5. Background• South Africa ratified the UNCCD in 1997• National Action Plan 2004• Study of private sector willingness to fund• Funding mechanism to mobilize community and private sector resources• National Coordinating Body for UNCCD in DEA• Development of drylands fund – housed in DBSA
  • 6. Objectives• Empowerment the poor - social justice/livelihoods• Sustainable land management/ landscapes/ecosystem services• Develop financial mechanisms -mobilizing resources/partnerships• Sustainability of initiatives• Shared learning networks – scalability / replicability
  • 7. Governance Instruments• MOA is signed by DEA and DBSA• National Steering Committee comprising 13 people from government, business and private sector. Chaired by DEA• Fund is housed in DBSA and managed by a DBSA team that is mandated through a business plan and Strategy and by SC resolutions
  • 8. DEA – LEAD AGENCY - communicate to all government departments MANAGEMENT COST S WILL THE STEERING COMMITTEE BE ACCORDING T O T HE OVERALL MOU BET WEEN DEAT AND DBSA AND AS PER CONT RACT OF VARIOUS DONORS AS T HEY COME ON BOARD The Business Plan PROJECT IMPLEMENTATION UNIT RESIDING IN DONOR DBSA AGENCY UNIT COMMUNITY AND INVESTORS PRIVAT E SECT OR RECIPIENTS INT ERNATIONAL COMMUNITY GOVT FUNDINGFigure 1. The conceptual framework of the fund
  • 9. Instruments and MechanismsInstruments of international best practice
  • 10. Who benefits (rewards / payments compensation)Enviromental service Community Land owner /munic/prov region world /user Carbon fixation and retention Water for different uses Scenic Beauty Biodiversity Soil Sustainable timber and other products
  • 11. Costa RicaFROM 26% ofFOREST COVERTO 52%
  • 12. Biodiversity capital and corridors
  • 13. Carbon sinks Carbon sequestration
  • 14. The Water Factories( Water Sheds and catchments)
  • 15. Soil Soil retentiontypical erosion control measures weirs and groinsHans King
  • 16. Landscapes and heritage Scenic beauty
  • 17. MEASURING SUCCESS The value of one hectare Number of livelihoods improved % R300 Green Economy( Rx Tourism/ LED/eco agric related R200 beneficiations R Biodiversity R Carbon R100 R Sediment R water R Return from cattle R under sustainable management Return from stacked ecosystem Return from cattle under service approach and or conditions of over sustainable land use grazingAdapted from James management/green economyBlignaught
  • 18. Programme Flow BUYERS A variety of Funds / Resources to fund hydro schemes/water boards /private sector the PSA contracts Assures: - Transparency. AGENCY Anual Payments -Financial Security. - Water Protection -Monitoring - Scenic beauty - Biodiversity - GG Mitigation Independent auditing and internal auditing SELLERS provincial and National Parks Small and medium Provide enviromental Community/informal sector and services and conserved private farmersAdapted from Costa Rica landscapesFornafifo
  • 19. Partnerships
  • 20. Priority Landscapes for Ecosystem Services incentivesWillingbuyers Willing Umzimvubu/Maluti sellers Drakensberg and Wildcoast Mechanism for PES in land restoration across landscapes Olifants Catchment ( Kruger to Thabakgolo /Medupi Kruger Park communities) Thicket
  • 21. Thicket Restoration ProgrammeNational and Provincial Parks and DEA
  • 22. Thicket Programme
  • 23. Landscapes Partnership ProgrammesProgrammes• Thabakgolo Wildlife Village Economy Bushbuck Ridge• Thicket Reserves• Umzimvubu PES programme• DEAF Rural Economy• Ndakana Co-op programme• Namaqualand• North West Villages• Medupi SIP 1• Rural Entrepreneurship Programme
  • 24. FINANCIAL SITUATIONRESOURCES DEA DBSA Private Sector Dept Total Rural Develop mentTO DATE R3.25m R3.25m R4000 R7.25mAQUIRED R0.75m(excludinginterest)CONTRACTS R15m % of profits R13m R45m R75.2ADVANCED R2mSTAGES R2mMONEY R2.565 for R1.25m for R0.350 R0 R3 815 plusCURRENTLY operational projects R0.350 plusAVAILABLE costs interest
  • 25. LESSONS LEARNT• Cannot build a national economy on a bankrupt ecosystem• Assuming R100b for landscape activities • Government is a small contributor – enabling environment and seed funding • Drylands Fund has an important role to play to mobilise resources to incentivize the rest of society to do the bulk of the work• Business Case for SA to have a Drylands Fund is made – it is a collective fund to pool resources to implement sustainable innovative financial instruments to restore vulnerable landscapes and build resilience ( Business /Community and Government understand)• Requires funding to help develop specific tailored business cases/plans for each business partner and community that engages the Fund – this is a prerequisite to mobilising resources• Requires bulk seed funding to pay rewards for sustainable land use management practices and incentivize conservation of communal and private landscapes. Start up fund for action at scale• Needs to be able to ring fence funds
  • 26. LESSONS LEARNT• Slow process• Relies on committed and dedicated individuals• To access money you need to spend money• Needs additional running expense funding• Need state support• Clean audits, integrity and financial security• Private sector needs to see benefit • Image • Community relationships • Cost saving • Environmental / legal commitments • Advertising• When large amounts of money involved, internal and external competition• Desertification low priority – need to link to other priorities – jobs biodiversity etc• Requires good science• Institutional building at the project level NB
  • 27. CONTACT DETAILSDepartment of Drylands Fund PIU UnitEnvironmental Affairs DBSADirector of Resource Use: Drylands Fund PIUJones Muleso Kharika Manager: Julie Clarke012 310 3451 PO Box 1234Jkharika@environment.go Halfway House 1685v.za Telephone 011 313 3099 082 909 4637 juliec@dbsa.org
  • 28. LESSONS LEARNT• Cannot build a national economy on a bankrupt ecosystem• Assuming R100b for landscape activities • Government is a small contributor – enabling environment and seed funding • Drylands Fund has an important role to play to mobilise resources to incentivize the rest of society to do the bulk of the work• Business Case for SA to have a Drylands Fund is made – it is a collective fund to pool resources to implement sustainable innovative financial instruments to restore vulnerable landscapes and build resilience ( Business /Community and Government understand)• Requires funding to help develop specific tailored business cases/plans for each business partner and community that engages the Fund – this is a prerequisite to mobilising resources• Requires bulk seed funding to pay rewards for sustainable land use management practices and incentivize conservation of communal and private landscapes. Start up fund for action at scale