Our Goal: Lasting human well-being by Conservation International, Ricky Nunez. Presentation for Seminar on Environmental Reporting conducted at Hotel Alejandro, Tacloban City.
3. CI-P’s ES work
• Mapping of Ecosystems Services in KBAs
• TEV of MMPL and Endowment Challenge Fund
Capitalization
• Quirino Forest Carbon Project – completed validation
and verification
• Building Community and Ecosystems Resilience to
Climate Change and Disasters through Green Grey
Infrastructure in Concepcion, Iloilo
• Cost Effectiveness of Coastal Protection Services in
Silonay Mangrove Forest Conservation and
Ecotourism area – An EbA to CC intervention
• National Blue Carbon Technical and Policy Working
Group
7. Non grant financing
Indirect or a direct financial
investment in conservation which is
made to activate cash flows part of
which goes back to the investors.
This is often referred to as Impact
Investing.
Cash flows can be generated from
PES.
Investment is usually in the form of
debt or equity.
Sources of Non-grant financing:
Impact driven organizations
(foundations, for profit impact
investors etc.), international financial
institutions (including through green
bonds), investment funds (eg – Meloy
Fund, Althelia and Ecobusiness Fund)
and traditional commercial investors.
8. Grant financing
• Grants are non-repayable funds or
products disbursed by one party (grant
makers), often a government
department, corporation, foundation or
trust, to a recipient, often (but not
always) a nonprofit entity, educational
institution, business or an individual.
• Sources of Conservation Grants:
Philanthropy (individuals, foundations
etc.), government (including debt
swaps), international financial
institutions and corporations (CSR,
etc).
9. Experience in Grant Financing
CI’s global conservation fund (GCF) has
significant experience in sophisticated grant
financing for long term conservation funds which
are either endowments or sinking funds.
GCF finances the creation, expansion and long-term
management of protected areas in the world’s
biodiversity hotspots, high biodiversity wilderness
areas and important marine regions.
GCF helps finance long-term management of
protected areas by helping to establish and capitalize
endowments.
An Endowment Fund is a trust fund scheme where the
CAPITAL is PRESERVED AS A PERMANENT ASSET and
only the income from INTEREST earned on its capital
is SPENT.
GCF endowments are managed by conservation trust
funds (CTFs).
10. GCF in the Philippines
Presidential Proclamation 1815
23 June 2009
120,457 hectares
2013 Best Protected Area showcasing
Civil Society Partnership
11. History of CI Engagement in MMPL
Planning Phase – 2004 Outputs:
A project entitled “Creating a New Protected Area in
Mantalingahan Mountain Range” was developed.
A rapid biological survey in four sampling sites in the
lowland forests of Mantalingahan range confirmed high
species richness and diversity.
A rapid stakeholder and policy analysis was
undertaken
12. History of CI Engagement in MMPL
Implementation Phase – 2005-2010 and
Desired Outputs:
Presidential Proclamation for Mt.
Mantalingahan 2009
Management plan 2010
Business plan 2010
13. Some of the steps undertaken: Compilation of Maps
and Technical Description
Municipality
# of
Brgys Area (ha)
Rizal 8 59,406.79
Brooke’s Pt. 14 34,412.07
Quezon 5 13,367.52
Bataraza 6 8,159.04
Espanola 3 5,111.58
TOTAL 36 120,457.00
14. Some of the steps undertaken: Resource Profiling
16. MMPL Management
MMPL is managed by a Protected Area Management Board (PAMB)
• composed of 71 members
• affirmed by the DENR Secretary
• guided by an adopted operations manual
17. MMPL Management Programs
(2010-2020)
1. Resource Management and Protection
2. Community Development and Outreach
3. Tourism and Recreation
4. Institutional Development, Administration and Fiscal
Management
19. 1. Direct Uses
Water, Timber
Occupants’ land-based livelihood,
Occupants’ river-based livelihood,
Ecotourism
2. Indirect Uses
Carbon stock, Soil conservation, Soil
fertility maintenance, Watershed and
biodiversity functions
Protection of coastal & marine
ecosystems
Ecosystem services of tropical forests
Recreation
Why is Mantalingahan Important?
20. MMPL Total Economic Value: $5.6B
Estimated reduction in benefits if
mining will be allowed is $1.118
billion, while the cost of rehabilitation
is $105 million for a total of $ 1.223
billion
21. at least US$ 3M
(assuming net 5% per annum interest,
to cover the minimum annual management expenses)
Target Endowment Capital
MMPL is the first protected area in the
country with an endowment fund
23. Launch of Endowment Fund for
Mt. Mantalingahan Protected Landscape (MMPL)
Palawan, Philippines
CI provided a of US$1 Million to PTFCF (endowment manager) as
initial capital for the MMPL Endowment, pursuant to a grant
agreement entered into in January 2016. The endowment fund will
be launched on October 7, 2016 in Manila.
• PA proclaimed in June 2009
• 120,457 hectares
• habitat of more than 1000 species of
flora & fauna
• home to at least 12,000 indigenous
Palawan men & women
• total economic value is US$5.6B of
MMPL
• first Protected Area in the country with
an endowment fund
24. Philippine Tropical Forest Conservation Foundation
(PTFCF)
Trust Fund Manager
Grant agreement between CI (GCF) and PTFCF was signed in January 2016
25. MMPL Endowment Operations Manual adopted by PTFCF
to supplement PTFCF governance and administrative rules
MMPL Endowment Oversight Committee established to
assist PTFCF Board to govern MMPL Endowment
Endowment invested in a diversified investment portfolio
targeting a net USD equivalent 5% annual return
Endowment revenues primarily allocated to costs
prescribed in an acceptable annual work plan and budget
submitted by the MMPL PAMB for the financing of
activities under the MMPL Management Plan
Major Elements of MMPL Endowment
26. Endowment Fund Management Structure
Phil. Tropical Forest
Conservation Foundation
(PTFCF)
(Trust Fund Manager)
Owns Endowment Sub-
Account;
Manages Endowment
Investment, with the
advice of an Investment
Advisor;
Makes grant making
decisions
Administers grant-
making;
Assists with fund raising
Endowment Oversight
Committee
Makes grant making
recommendations to
the Trust Fund
Manager;
Reviews investment
management;
MMPL PAMB
(Implementing
Body)
Submits
workplans and
budgets;
Provides reports
Advises
Periodic transfers of grants
27. Benefits from MMPL Endowment
sustainable financing for adequate and long term protection of the
ecosystem services of MMPL such as promoting sustainable
ecotourism
livelihood diversification for at least 12,000 indigenous Palawan men
and women towards improving their well-being
ensure clean freshwater to all residents of southern Palawan for
domestic and agricultural uses
Ensure management effectiveness of MMPL.
stop deforestation and contribute towards carbon sequestration
(approx 32MtC)
28. PTFCF Board of Trustees to approve MMPL
endowment operations manual; - done October
2016
Disbursement of GCF endowment capital grant
($1M) to PTFCF; - Done October 2016
Finalizing investment management arrangements
for the MMPL Endowment. - Being undertaken
with an investment institution.
Fundraising for MMPL Challenge capital fund
to fill the gap of $2M.
Next Steps