Nigel Asquith Fundación Natura Bolivia (www.naturabolivia.org) Kennedy School, Harvard University Biodiversity and watershed conservation investments: what works & what doesn ’t ? TBLI Amsterdam, November 14th 2008

$250 M LOSSES FROM FLOODING 1992-2003 0.1% of GDP/ year BOLIVIA’S RIO GRANDE A tributary of the Amazon

The 700 000 ha El Chore Forest Reserve: projected to be 46% deforested by 2036: 4 million t C up in smoke

Further upstream: the Red Fronted macaw, endemic to south central Bolivia, only 3000 left

Mr. Serafin Carrasco forest owner annual income €700

Mr. Serafin Carrasco

forest owner

annual income €700

The Rio Grande Watershed ... problems caused by loss of environmental assets, precarious survival of other potential assets and both asset types controlled by very poor people…

Poverty endemic to communities neighboring biodiversity makes such investments high risk 2) Traditional conservation and development projects have invariably failed The bad news

Poverty endemic to communities neighboring biodiversity makes such investments high risk

2) Traditional conservation and development projects have invariably failed

Tree intact: value to society € 2000 Carbon value € 300 Value that Mr. Carrasco captures € 0

Tree cut down: value to society € 0 Carbon value € 0 Value that Mr. Carrasco captures € 500

Biodiversity’s neighbours They don’t know you, they don’t care about you and they’ll be suspicious of your money

Biodiversity and carbon deals in the developing world are very complex, and very risky The developing world has highest levels of biodiversity, perhaps the cheapest carbon (REDD), and the greatest sustainability gains

3) Coupling biodiversity conservation to watershed protection can engender long-term sustainability 4) “ P ayments-for- environmental-services” (e.g. REDD) is an increasingly widespread tool that is developing best practices that can guide investors The good news

Mrs. Rojas Pena, water user annual income €1100

Mrs. Rojas Pena, water user annual income €1100

Mega-diverse: Hosts at least 145 species of mammals, 105 species of reptiles, 73 amphibian species and more than 800 bird species (10% of the birds on the planet) Protects the upper watersheds of many rivers, including the Pirai and Yapacani that provide water to agriculture and the 2 million residents of the cities of the Department of Santa Cruz Annual Park Operating Budget € 200,000 Amboró National Park

Mega-diverse: Hosts at least 145 species of mammals, 105 species of reptiles, 73 amphibian species and more than 800 bird species (10% of the birds on the planet)

Protects the upper watersheds of many rivers, including the Pirai and Yapacani that provide water to agriculture and the 2 million residents of the cities of the Department of Santa Cruz

Annual Park Operating Budget € 200,000

Cloud forest protected > water in the stream channel > downstream agricultural production > increased incomes Low opportunity cost for upstream conservation High opportunity cost for reduced water supplies downstream THE CONCEPT

Cloud forest protected >

water in the stream channel >

downstream agricultural production > increased incomes

Biodiversity and forest carbon investments need to be developed very carefully

What have we learned about institutional needs and capacities? Bolivia, Ecuador, South Africa, Costa Rica, Mexico, USA, Brazil and India Different cultural contexts, different forms of incentive-based watershed management, but some similar solutions

Bolivia, Ecuador, South Africa, Costa Rica, Mexico, USA, Brazil and India

Different cultural contexts, different forms of incentive-based watershed management, but some similar solutions

Biodiversity investments are not easy… Poverty endemic to communities neighboring biodiversity makes such investments high risk 2)Traditional (donor-funded) conservation and development projects have invariably failed

Poverty endemic to communities neighboring biodiversity makes such investments high risk

2)Traditional (donor-funded) conservation and development projects have invariably failed

But biodiversity investments are possible with the right institutional frameworks… 3) Coupling biodiversity conservation to local interest watershed protection can engender long-term sustainability 4) P ayments for environmental services is an increasingly widespread tool that is developing best practices that can guide investors

3) Coupling biodiversity conservation to local interest watershed protection can engender long-term sustainability

4) P ayments for environmental services is an increasingly widespread tool that is developing best practices that can guide investors

Deal with the right people

Deal with the right people

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