National Environmental Funds as a Tool for promoting

National Environmental Funds as a Tool for promoting Conservation Fondo Mexicano para la Conservación de la Naturaleza, AC Latin American and the Caribbean Network of Environmental Funds

Overall Approach to Conservation Finance: National Environmental Funds (NEFs) Are innovative mechanisms for the long-term financing of initiatives such as: – – sustainable use of natural resources direct biodiversity conservation efforts prevention and reduction of pollution and training and strengthening of civil society

National Environmental Funds (NEFs) They can build an endowment from: • governments and/or donor agencies grants • proceeds from debt-for-nature swaps • taxes and designated fees for conservation • grants from private foundations and individuals or operate with sinking funds that can be donorlabeled or NEF discretional (or both)

National Environmental Funds (NEFs) They are one of the best tools for conservation because they: • address long-term issues • manage funds and provide technical support with relative simple private to private schemes

National Environmental Funds (NEFs) • Rely on an organized civil society able to implement activities • Have in most countries an active government support and broad base community participation • Apply rigorous record keeping, transparency and reliable systems of management and auditing

Number of NEF incorporated by year Latin America and the Caribbean

Number of NEFs Operating in the Region 30 28 25 20 15 10 5 0 89 90 91 92 93 94 95 96 97 98 99 2000 2001

Private, Public and Hybrid NEFs in the Region hybrid 20% private 24% public 56%

Capitalization Level of NEFs in the Region > 50 MMUS 8% 20 - 50 MMUS < 1 MMUS 21% 29% 10 -20 MMUS 4% 1 -10 MMUS 38%

Annual Budget & Combined Endowment Level for NEFs in LAC • Total endowment funds of FANs in LAC – US$150 million (in 2000) • Combined annual budget exceeds US$70 million • These figures are insignificant compared to the extent of the challenge. . . • . . . but encouraging based on the organizational increase

LAC NEF’s Scope of Work Combined agenda 66% Protected Areas 19% Green 15%

NEF’s Perspectives and Challenges • Capacity assessment and institutional strengthening at a regional and national (local) level • Research and development model for larger scale private sector and government implementation • Link between private and public interests • Environmental policy and mainstreaming effort

Capacity Assessment and Institutional Strengthening at a Regional and National (local) Level • Red. LAC • Mexican Conservation Learning Network • Program components – Organizational capacity assessment – Training – Information management

Research and Development Model for Larger Scale Government Implementation • Protected areas management schemes • Sustainable use of biodiversity • Fire prevention • Community based eco-tourism

Link between Private and Public Sectors • Fishing industry • Forestry industry • Media and communication efforts • Financial and insurance sector

Environmental Policy and Mainstreaming Effort • Link between applied science and environmental policy • Implementing agent between Multi/Bi donors and local governments • Recipients of user fee pilot projects

Focus of Conservation Finance Program of FMCN: Geographic • México´s biodiversity diagnose (Estudio de País) • National strategy for the conservation of biodiversity. • CONABIO priority sites • Protected areas system • Watersheds

Focus of Conservation Finance Program of FMCN: Thematic • Direct conservation activities • Research for conservation • Sustainable use of natural resources • Capacity building / institutional strengthening • Environmental education and communication

Focus of Conservation Finance Program of FMCN: Funding Sources • Capital campaign phase I (58 mm) • Capital campaign phase II (42 mm) (30 mm already committed) • Direct fund-raising for earmarked funds • Other mechanisms

Current and Planned Portfolio • Conservation program (open call for proposals) • Protected areas program • Fire prevention program • Mexican Learning Conservation Network • FMCN - NWF “Environmental Education Initiative” • FCEA (Environmental Communication and Education Fund) • NV-WRI-FMCN “Investors Forum” • Red. LAC

Delivery Systems: Staffing Personnel Executive Director Executive Secretary Red. LAC Conservation Department Natural Protected Areas Department Mexican Conservation Learning Network Finance and Operations Department Communications Department

Delivery Systems: Expertise General Assembly Board of Directors Committees Evaluation Fire Prevention Natural Protected Areas Personnel Finance International Consultative Committee

Delivery Systems: Tools • Conservation directory • Conservation project database • SIEVI • IMAC

Delivery Systems: Gaps • Communication skills • Marketing skills • Profitable and sustainable community projects

Role in Conservation Finance Alliance: Needs • Donor market surveys • Case studies of environmental services and user fees projects • Reduction of red tape and bureaucratic with bi- and multi-lateral donors

Role in Conservation Finance Alliance: Contributions • GEF large donations experience • Asset management know how • Networking at a national and regional level