Developing Sustainable Conservation Finance Strategies for Coral Reef Restoration


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Developing Sustainable Conservation Finance Strategies for Coral Reef Restoration

  1. 1. Developing Sustainable ConservationFinance Strategies for Coral Reef Restoration Brett Howell, Georgia Aquarium
  2. 2. AgendaProject Site – South FloridaCoral Restoration & Economic IncentivesNext Steps
  3. 3. Florida Keys National Marine Sanctuary Protective designation for a specific place 2 2900 nm /10,000 km 2 Surrounds Florida Keys Co-trustee Management with Florida 1600 Keys/1800 miles of shoreline Source: Sean Morton, NOAA.
  4. 4. Recreation related to reef use in the Keys fell by ~20% between 1995 and 2007 Annual # of Days of Activity (000’s) 1995 2007Activity R+V R+V ChangeSnorkeling – all 2449 2212 -237SCUBA Diving – all 704 557 -147Fishing – all 2840 2069 -771All 3 Activities 5993 4838 -1154Visiting museums/historic areas 879 Source: Data from Visitor Study: Selected Comparisons 1995-96 and 2007-08 and Monroe County Resident Recreation: Selected Comparisons 1995-96 and 2008. Vernon R. Leeworthy, Office of National Marine Sanctuaries, National Ocean Service, NOAA.
  5. 5. Stakeholders Every US Citizen (existence & option value) Producers Greater earning profits Florida & from a healthy Florida Keys reef residents FloridaElected Keysofficials businesses Who are the stakeholders? Municipal Touristsgovernments State of Educators Florida and students
  6. 6. Coral Tree Nursery & Site Locations
  7. 7. Marine Conservation Finance Mechanisms FINANCING MECHANISM SOURCE OF REVENUEGovernment Revenue Allocations Government, Donors, NGOs, Tax Payers,(Budgets, Debt Relief, Bonds, Lottery, Stamps) InvestorsGrants and Donations Donors, Corporations, NGOs, multisource(Foundations, NGOs, Trust Funds, Private Sector)Tourism Revenues Visitors, Divers, Boaters, Hotels, Cruise Lines,(Fees, Hotel/Passenger Taxes, Voluntary) Tourism OperatorsReal Estate and Development Rights Property Owners, Develops, Donors,(Purchase/Donations, Easements, Surcharges, Conservation InvestorsConcessions, Tradable Development Rights)Fishing Industry Revenues Commercial and Recreational Fishers,(Licenses, Fines, Quotas, Eco-Labeling) Seafood producers, GovernmentsEnergy and Mining Revenues Energy Companies, Power Producers, Private(Fines, Royalties, Revenue, Voluntary) Companies, DonorsFor-Profit Investments Linked to Marine Private Investors, Pharmaceutical CompaniesConservation “bioprospecting,” Global Partnership for(Private Sector, Biodiversity Prospecting) OceansSource: Spergel, Barry and Melissa Moye. Financing Marine Conservation. 2004. World Wildlife Fund.
  8. 8. Conservation Goal Develop a mechanism that allows activities to become financially self-sustaining to pay people to conserve/ restore nature – Establish economic incentives around social, economic and environmental value of reefs – Return of/on capital invested Free-market environmentalism – Improving environmental quality through property rights (resource tenure) and voluntary markets – Tenure security & exclusive access to secure funding and overcome free rider problems Work with other groups to establish appropriate scientific and performance criteria (% live coral cover)
  9. 9. Challenge with Coral Markets  Environmental goods/services are not like typical market goods  Market goods are: – Excludable: I can keep you from breathing the air in my tank – Rivalrous: And I need to because your consumption precludes mine – Certain: I know when the tank is filled and when I can use it  By contrast, environmental resources are usually: – Non-rivalrous: Consumption by one does not preclude consumption by others – Non-excludable: Cannot keep non-payers out (free rider) – Uncertain: Not sure when and if consumption will occurSource: Reed Watson, PERC
  10. 10. Ocean Law – Coral Commons  Navigable waters in the US are a public good  Private land rights stop at the mean high water mark  US Exclusive Economic Zone (EEZ) extends to 200 nautical miles (NM) from the coast  Contiguous zone of US 12-24 NM – Full private ownership of submerged lands in Florida is illegal, with limited exceptionsSource: Practitioner’s Field Guide for MCAs, Draft V. 2 September 2012.
  11. 11. Developing Revenue Streams Source: Business Model Generation page 44.
  12. 12. Next Steps• Test feasibility in locations where property rights/enabling regulations are already established – Connects buyers and sellers in a self-sustaining market – Ensures long-term protection of reef ecosystem – Promotes economic recovery & development• Host a workshop in April 2013 with coral scientists, marine park managers, coral restoration practitioners, economists, and “buyers” of coral reef restoration to discuss how/where to pilot the concept
  13. 13. Thank you bwhowell1@gmail.comTwitter @BrettWHowell; #GAIcorals