Biodiversity and extreme poverty


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Martha 'Pati' Ruiz Corzo, Federal Director - Sierra Gorda Biosphere Reserve - Mexico

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Biodiversity and extreme poverty

  1. 1. Natural Values and Ecosystem Services in the Fight against Poverty <ul><li>Jalpan de Serra, Querétaro, México September 2007 </li></ul> Biodiversity Conservation in the Sierra Gorda
  2. 2. Sierra Gorda Biosphere Reserve, Querétaro., México
  3. 3. Sierra Gorda Biosphere Reserve
  4. 4. The most ecodiverse biosphere reserve in México. Tropical Forests Oak Forests Coniferous Forests Xerifilous matorral Mesophilus forests Gallery forests
  5. 5. Local, national, and international partners
  6. 6. The Sierra Gorda Consortium
  7. 7. Monitoring of hydrology and soil erosion
  8. 8. Runoff coefficient for an area without vegetation and in a pine forest in Pinal de Amoles, Querétaro Runoff Coefficient is the percentage of rainfall that appears as runoff Without Vegetation Pine forest
  9. 9. Relative amount of soil loss for areas without vegetation compared to pine and oak forests Bars display weight of sediment (kilos) in every 100 m 3 of runoff Without vegetation Without vegetation Sediment Sediment Pine Pine 1 Pine 2
  10. 10. Volume of runoff in different vegetation types in the semi-arid zone of Querétaro (Cadereyta) Without vegetation Volume of Runoff (m 3 )
  11. 11. Carbon sequestration plots & weighing biomass
  12. 12. Results of Carbon Inventory
  13. 13. Total value (US Dollars) of ecosystem services per vegetation type
  14. 14. <ul><li>PriceWaterhouseCoopers </li></ul><ul><li>assisted management of </li></ul><ul><li>Grupo Ecológico Sierra Gorda I.A.P., </li></ul><ul><li>Bosque Sustentable A.C., and </li></ul><ul><li>Productos y Servicios Turísticos Sierra Gorda, S.A. de C.V. </li></ul><ul><li>with the preparation of an </li></ul><ul><li>Integrated Strategic Plan. </li></ul>
  15. 15. Bosque Sustentable as an Aggregator
  16. 16. Environmental Services Products Product Type Geography Potential / Existing Market Financial Objective Status Reforestation Carbon sequestration Sierra Gorda International Cost recovering + some charity Existing product Commercial plantation Carbon sequestration Huasteca potosina International Profit generating Under development Assisted natural generations Carbon sequestration Sierra Gorda International Cost recovering Under development Gourmet product - Integrated ecosystem Biodiversity Sierra Gorda International Cost recovering + Profit generating Under development Avoided Soil Erosion Soil Conservation Sierra Gorda State and Local Generation of local employment Under Implementation
  17. 17. Sources of Competitive Advantage <ul><li>Sustainability </li></ul><ul><li>Long history, tracing back to the grass root efforts of Grupo Ecológico since 1987; </li></ul><ul><li>Coordinated and successful efforts in environmental education, livelihood diversification, restoration, and plant and wildlife conservation programs; </li></ul><ul><li>Well-tested, sustainable, and improving institutional co-management framework - public (Reserve) and private (NGO) partnership. </li></ul>
  18. 18. Sources of Competitive Advantage <ul><li>Social </li></ul><ul><li>As an aggregator, Bosque Sustentable can enable the pooling of micro reforestation projects for the market, which helps to alleviate poverty. </li></ul><ul><li>Compensation to locals for the opportunity costs of forestry conservation; </li></ul><ul><li>Help the poor: the funding will be utilized for payment to land / forestry owners and also for employment for the forestry management program; </li></ul><ul><li>Additional benefits of improved quality of life for communities and residents through participating in the programs. </li></ul>
  19. 19. Pricing Strategy Product Cost Reforestation <ul><li>US$15-18 per ton of CO 2 e; </li></ul><ul><li>35-40 or 60-65 split between Bosque Sustentable and land owners; </li></ul><ul><li>This effectively elevates the price of the product into the higher end of the market. The pricing strategy appears justifiable given the nature of micro products and the differential advantages. </li></ul>Commercial plantation <ul><li>10 to 30 percent discount to reforestation due to (1) the larger size of an individual project (normal is at least 50 ha above); (2) the economic value expected from future wood harvesting; (3) land owners are typically not as poor as those for reforestation projects. </li></ul>Assisted nature regeneration <ul><li>Need further input based on the on-going baseline studies. </li></ul>Individual customers <ul><li>Above US$20 per ton of CO 2 e (World Land Trust at ₤15 per ton of CO 2 e) because of the effort to aggregate customers. </li></ul>
  20. 20. Biodiversity Conservation Gourmet Product Factor Description Flat fee <ul><li>Based on the minimum cost needed for conservation. </li></ul><ul><li>US$200,000 – 400,000 per annum when annual product sales do not exceed a certain amount (such as US$20 – 40 million, meaning one percent of sales, or US$40 – 80 million at 0.5 percent of sales). </li></ul>Progressive contingent fee <ul><li>A percent (0.5 - one percent) of any sales exceeding the amount defined above; the ratio may be reduced progressively as sales increase. </li></ul>Cap or extension <ul><li>Determining a cap of fees at an amount that would be a sufficient payment to land owners and a complete forestry management program. The cap may be based on one of the market approaches (jaguar or carbon sequestration) previously described. </li></ul><ul><li>Alternatively, no cap of fees but instead extend the area of conservation as fees reach a certain amount. (Amount to be determined after a detailed budgeting). </li></ul>Rationale <ul><li>Start with a low entry fee that may entice new customers; </li></ul><ul><li>The contingent fee portion provides additional income as arguably the biodiversity conservation image helps the success of commercial product sales. </li></ul>
  21. 21. Biodiversity Monitoring : Jaguar Range Determination
  22. 22. Sierra Gorda Social Return on Investment Analysis: Change in quality of life since the creation of the reserve
  23. 23. Desire to protect the environment, before and after training
  24. 24. Rates of garbage separation before and after training
  25. 25. Gracias !