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SUSTAINABLE FINANCE
FOR MARINE
PROTECTED AREAS
Katia Karousakis
Biodiversity Team Leader
OECD Environment Directorate
IDDRI GIZ, IUCN-France side-event on Innovative financial mechanisms
for biodiversity
Wednesday 14 December 2016
CBD COP13
Overview
• Current and projected pressures on
marine ecosystems
• The role of Marine Protected Areas
• Sustainable financing of MPAs
Pressures on marine ecosystem
services and biodiversity
• Over-fishing
• Pollution
• Habitat degradation
• Climate change
• Invasive alien species
The future of the Ocean Economy…
Total ocean industry value-added expected to double by 2030
0
100
200
300
400
500
600
700
800
900
USD billion
Overview of industry-specific value-added in 2010 and 2030
2010
2030
Source: OECD (2016) The Ocean Economy to 2030
Policy instruments for marine biodiversity
conservation and sustainable use
Regulatory (command-and-
control) instruments
Economic instruments
Information and
voluntary approaches
Marine protected areas
Taxes, charges, user fees (e.g.
entrance fees to marine parks)
Certification, eco-labelling
(e.g. MSC)
Marine spatial planning
Individually Transferable Quotas for
fishing
Negotiated voluntary
agreements, such as
public-private
partnerships
Spatial and temporal fishing
closures; limits on number and
size of vessels (input controls);
other restrictions or
prohibitions on use (e.g. CITES)
Reform of harmful subsidies - and
use of subsidies to promote marine
conservation and sustainable use
Catch limits or quotas (output
controls)
Payments for Ecosystem Services
Standards (e.g. MARPOL for
ships); bans (e.g. dynamite
fishing)
Marine biodiversity offsets
Licenses e.g. aquaculture and
offshore windfarms
Non-compliance penalties
Planning requirements
e.g. EIA and SEA
Fines on damages
Financing of marine protected areas
Financing
Domestic govt
budget
Often the main source of finance in many developed countries
External devt
finance
Often a substantial source of finance in many developing countries
Trust funds Several trust funds have been established e.g., Belize, Mexico and
Mauritania
User fees (e.g.,
entrance fees)
Often a substantial source of MPA finance in a number of MPAs.
Entrance fees used in Australia, Mexico, Belize, Thailand and the
Galapagos Islands in Ecuador
Taxes and fines France (1995 Barnier Act). Tax on maritime passenger ships
protected areas – with earmarked revenue
Subsidies MPAs can enhance fisheries by protecting nursing grounds
PES A few examples in marine context – e.g., sea turtles in Tanzania, grey
whale habitat protection Mexico
Source: OECD (2017) Marine Protected Areas: Economics, Management and Effective Policy Mixes.
EU payments to Mauritania and Guinea Bissau for
MPAs under the Fisheries Partnership Agreement
• In Mauritania and Guinea Bissau, conservation trust funds (CTFs) created to
provide sustainable financing to MPAs, including from the EU through
Fisheries Partnership Agreements
• Lobbying efforts by environmental NGOs to link the economic benefits to
fisheries of well-functioning ecosystem services helped mobilise finance for
conservation trust funds for MPAs
Source: OECD (forthcoming 2017), Overcoming Barriers to Effective
Biodiversity Policy Reform. OECD Publishing, Paris.
[Policy Highlights available]
• Challenge: In the case of Mauritania, wavering political
support threatens long-term stability of the CTF. Early
momentum to establish financing arrangements has
dissipated due to competition for scarce financial
resources and shifting government priorities
Key messages for more effective MPAs
(with focus on finance elements)
• Need to scale up finance but also need to make
existing finance more cost-effective
 Better understanding of costs and benefits
 Effective siting of MPAs to address pressures
MPA management plans to include MPA financing
strategy
 More robust monitoring and reporting (including on
finance)
 Enhanced compliance and enforcement
Source: OECD (forthcoming, 2017) Marine Protected Areas: Economics,
Management and Effective Policy Mixes.
Thank you!
OECD work on biodiversity and ecosystems:
Biodiversity Indicators, Valuation and Assessment
Economic Instruments, Incentives and Policies for Biodiversity
Biodiversity Finance, Development and Distributional Issues
Other relevant OECD reports:
• Marine Protected Areas: Economics, Management and
Effective Policy Mixes (OECD, forthcoming 2017) [Policy
Highlights available]
• Overcoming Barriers to Effective Biodiversity Policy Reform
(OECD, forthcoming 2017)
• The Ocean Economy in 2030 (OECD, 2016)
• Green Growth in Fisheries and Aquaculture (OECD, 2015)
• Biodiversity Policy Response Indicators (OECD ENV WP No.
90, 2015)
• Scaling Up Finance Mechanisms for Biodiversity (OECD, 2013)
Visit: www.oecd.org/env/biodiversity
http://www.oecd.org/environment/resources/mainstream-biodiversity/

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OECD presentation - Katia Karousakis - Sustainable finance of marine protected areas

  • 1. SUSTAINABLE FINANCE FOR MARINE PROTECTED AREAS Katia Karousakis Biodiversity Team Leader OECD Environment Directorate IDDRI GIZ, IUCN-France side-event on Innovative financial mechanisms for biodiversity Wednesday 14 December 2016 CBD COP13
  • 2. Overview • Current and projected pressures on marine ecosystems • The role of Marine Protected Areas • Sustainable financing of MPAs
  • 3. Pressures on marine ecosystem services and biodiversity • Over-fishing • Pollution • Habitat degradation • Climate change • Invasive alien species
  • 4. The future of the Ocean Economy… Total ocean industry value-added expected to double by 2030 0 100 200 300 400 500 600 700 800 900 USD billion Overview of industry-specific value-added in 2010 and 2030 2010 2030 Source: OECD (2016) The Ocean Economy to 2030
  • 5. Policy instruments for marine biodiversity conservation and sustainable use Regulatory (command-and- control) instruments Economic instruments Information and voluntary approaches Marine protected areas Taxes, charges, user fees (e.g. entrance fees to marine parks) Certification, eco-labelling (e.g. MSC) Marine spatial planning Individually Transferable Quotas for fishing Negotiated voluntary agreements, such as public-private partnerships Spatial and temporal fishing closures; limits on number and size of vessels (input controls); other restrictions or prohibitions on use (e.g. CITES) Reform of harmful subsidies - and use of subsidies to promote marine conservation and sustainable use Catch limits or quotas (output controls) Payments for Ecosystem Services Standards (e.g. MARPOL for ships); bans (e.g. dynamite fishing) Marine biodiversity offsets Licenses e.g. aquaculture and offshore windfarms Non-compliance penalties Planning requirements e.g. EIA and SEA Fines on damages
  • 6. Financing of marine protected areas Financing Domestic govt budget Often the main source of finance in many developed countries External devt finance Often a substantial source of finance in many developing countries Trust funds Several trust funds have been established e.g., Belize, Mexico and Mauritania User fees (e.g., entrance fees) Often a substantial source of MPA finance in a number of MPAs. Entrance fees used in Australia, Mexico, Belize, Thailand and the Galapagos Islands in Ecuador Taxes and fines France (1995 Barnier Act). Tax on maritime passenger ships protected areas – with earmarked revenue Subsidies MPAs can enhance fisheries by protecting nursing grounds PES A few examples in marine context – e.g., sea turtles in Tanzania, grey whale habitat protection Mexico Source: OECD (2017) Marine Protected Areas: Economics, Management and Effective Policy Mixes.
  • 7. EU payments to Mauritania and Guinea Bissau for MPAs under the Fisheries Partnership Agreement • In Mauritania and Guinea Bissau, conservation trust funds (CTFs) created to provide sustainable financing to MPAs, including from the EU through Fisheries Partnership Agreements • Lobbying efforts by environmental NGOs to link the economic benefits to fisheries of well-functioning ecosystem services helped mobilise finance for conservation trust funds for MPAs Source: OECD (forthcoming 2017), Overcoming Barriers to Effective Biodiversity Policy Reform. OECD Publishing, Paris. [Policy Highlights available] • Challenge: In the case of Mauritania, wavering political support threatens long-term stability of the CTF. Early momentum to establish financing arrangements has dissipated due to competition for scarce financial resources and shifting government priorities
  • 8. Key messages for more effective MPAs (with focus on finance elements) • Need to scale up finance but also need to make existing finance more cost-effective  Better understanding of costs and benefits  Effective siting of MPAs to address pressures MPA management plans to include MPA financing strategy  More robust monitoring and reporting (including on finance)  Enhanced compliance and enforcement Source: OECD (forthcoming, 2017) Marine Protected Areas: Economics, Management and Effective Policy Mixes.
  • 9. Thank you! OECD work on biodiversity and ecosystems: Biodiversity Indicators, Valuation and Assessment Economic Instruments, Incentives and Policies for Biodiversity Biodiversity Finance, Development and Distributional Issues Other relevant OECD reports: • Marine Protected Areas: Economics, Management and Effective Policy Mixes (OECD, forthcoming 2017) [Policy Highlights available] • Overcoming Barriers to Effective Biodiversity Policy Reform (OECD, forthcoming 2017) • The Ocean Economy in 2030 (OECD, 2016) • Green Growth in Fisheries and Aquaculture (OECD, 2015) • Biodiversity Policy Response Indicators (OECD ENV WP No. 90, 2015) • Scaling Up Finance Mechanisms for Biodiversity (OECD, 2013) Visit: www.oecd.org/env/biodiversity http://www.oecd.org/environment/resources/mainstream-biodiversity/

Editor's Notes

  1. FAO (2016): 31% percent of fish stocks over-exploited; 58% fully-fished Pollution: Most sources of marine pollution (80%) are land based. Habitat degradation - 60% of the world’s major marine ecosystems degraded or used unsustainably (UNEP, 2011). An estimated 20% of global mangroves have been lost and 19% of coral reefs have disappeared since 1980s (UNDP, 2012).
  2. Pressures on marine ecosystems therefore also likely to rise.
  3. Overview of policy instruments. Many of the economic instruments are also able to generate revenue.
  4. Although not comprehensive, available information suggests that the main source of MPA financing in developed countries is government budget, whereas in developing countries, international donors as well as user fees can constitute an important source of MPA finance (Table 3). Overall, more comprehensive and diverse MPA financing portfolios are needed, via the introduction of instruments such as taxes, fines and other revenue-generating mechanisms, which are also in line with the polluter pays principle. Such instruments can therefore provide incentives to mitigate other pressures on marine biodiversity such as pollution or can serve as deterrents to non-compliance. MPA financing strategies, which include identifying the financing needs, and the possible instruments through which additional finance can be mobilised, should form an integral component of a MPA management plan.