Specialist Skills: Niche Tax Expertise

The nature of this Project sought to create a biodiversity finance solution for South Africa's protected areas that was built on tax law. In order to succeed in this venture, it was central to have a tax specialist undertake the Project. Previous attempts to introduce biodiversity tax incentives in South Africa had failed due to incorrect tax structuring and lack of practical tax testing. In both the amendment of national tax legislation, as well as the actual appropriation of the tax incentives on behalf of landowners, a skilled tax practitioner, who understood both detailed tax law as well as the environmental policy and legislation that the tax incentives linked to, was required. The very unique nature of this work required a niche skill set to ensure its effective and efficient implementation. This biodiversity finance solution could not have been introduced without a tax specialist. 

The use of niche tax skills was enabled through catalytic funding secured to employ such skills to undertake this Project.

Key lessons learned from the niche skill set building block include:

  • Cross-sector bridges: attracting different skill sets into the mainstream conservation sector was a catalytic step in being able to introduce this innovative solution for biodiversity conservation.
  • Thinking outside of the box: the utilisation of a skill set uncommon in conservation, created an out-of-the-box solution;
  • Niche expertise are vital to achieve specific and intricate deliverables: the use of a very specific skills set and expertise regarding tax law was vital to achieving this innovation. The idea was insufficient and key skills were required for successful implementation.
Community of Practice

Introducing South Africa’s first biodiversity tax incentive required the support and assistance of a very effective and cohesive community of practice within South Africa’s national biodiversity stewardship initiative. The tax incentives relate directly to South Africa's protected areas declared on private or communally owned land. This context required the support of the implementers of these types of protected area declarations to facilitate this unique biodiversity finance solution. The implementers of biodiversity stewardship in South Africa range from representatives of national and provincial government, NGOs, and various experts and specialists. They work together in a collaborative community of practice which provided its full support to the tax incentive work. The novelty of the tax work, as well as the numerous components of the Project that required simultaneous success, required the direct support, advice and assistance of the community of practice. This support facilitated Building Blocks 1 and 2 and ensured that the Project deliverables could be achieved in the most conducive environment possible.

  1. The nature of South Africa’s biodiversity stewardship community of practice was the enabling factor of this building block. The community of practice, into which the work on biodiversity tax incentives was placed, is by nature collaborative, communicative, and cohesive. This allowed for the tax work, despite its uniqueness and complexity, to be supported and assisted by key members of the community of practice. The community of practice is constituted in this way due to the individual experts who work within this field.

Key lessons learned in utilising the community of practice building block:

  • Team work: attempting to introduce South Africa’s first biodiversity tax incentive in isolation would have been an error. The tax incentives had to be introduced into the context of biodiversity stewardship in South Africa. The Project was integrated into this community of practice during its scoping phase and throughout its implementation.
  • Partnerships: From the inception of the Project, key partnerships were sought. These partnerships, their support, skills, advice, and varied expertise, were vital to the successful implementation of this complex undertaking.
  • Regular feedback: the Project provided regular feedback to the community of practice, key partnerships, and stakeholders throughout its duration. This regular feedback allowed for the dissemination of information. Additionally, it allowed for collaborators to remain invested in the Project’s success and ensured continued support.
Grassroots Project Engagement

The Project launched a number of pilot sites across the country to test the use and applicability of biodiversity tax incentives in different contexts. The pilot sites enabled the Project to engage with the people directly impacted by the tax benefits. The pilot sites covered parastatals, international companies, communities, and individual farmers undertaking different commercial activities. The sites also covered different biomes and biodiversity priority areas. This grassroots engagement was a crucial building block as it took the policy engagement of the Project, as well as the achievement of amending national legislation, and practically tested its impact on the ground. To determine what impact the tax incentives would have on landowners declaring protected areas, landowners themselves needed to be engaged deliberately. This grassroots engagement effectively illustrated the financial and tangible benefits of the incentive. These pilot sites also showed that the new biodiversity tax incentive was applicable to all types of legal entities in South Africa and could be applied to a varied array of commercial and private enterprises and activities.  It effectively applied the tax impact to landowners and showed that it was successful and replicable.

  1. The primary enabling factor was willing landowners and communities. Without their voluntary engagement, the practical application of the biodiversity tax incentives would not have been possible.
  2. The community of practice assisted in facilitating introductions to landowners and communities and allowed relationships to be built on existing engagements.
  3. A further factor was clear communication about the tax incentives and the fact that they were being tested; expectations were mitigated and the challenges were outlined from the onset.

Key lessons learned in implementing the Grassroots Project Engagement:

  • Working with an existing community of practice: voluntary participation was needed for this Project. Working within an existing community of practice allowed for relationships to be forged, and more deliberate engagement to be undertaken based on relationships that were already established. Having to start this process from scratch takes time, and in this case, the Project was under timeline and policy pressures.
  • Clear and honest communication: again, voluntary participation from grassroots stakeholders was required to determine the Project aims. Clear and honest communication was delivered from the onset of the Project with the aim of mitigating expectations and not making false promises. The challenges and nature of the pilot sites was outlined from the very first engagement and this proved successful throughout the pilot phase of the Project.
National Policy Engagement

The success of introducing South Africa's first biodiversity tax incentive into the protected areas network began with the amendment of South Africa's Income Tax Act. Without the tax incentive being lodged into national fiscal legislation, the solution would never have been possible. This first successful step required the building block of: National Policy Engagement. Amending the Income Tax Act required deliberate engagement with key national ministries and departments, primarily: the Department of Environmental Affairs and the Ministry of Finance. Institutional support was provided by the Department of Environmental Affairs and the department endorsed the tax work at a national level. This allowed for direct engagement with key environmental fiscal policy makers within South Africa's National Treasury. This engagement was direct, open, collaborative and positive, and allowed for the formulation of South Africa's first tax deduction aimed at supporting and benefitting taxpayers formally protecting South Africa's natural heritage in the public interest. 

  1. The success of this building block was due in part to the historically positive relationships between national ministries and conservationists, which the Project was able to leverage.
  2. Additionally, the project manager is a tax specialist; without these niche tax skills the national policy engagement would not have been as successful.
  3. Policy makers also understood two key points: the country’s environmental need and the use of protected areas, and the need to fiscally reward land stewards for their public benefit investment.

Key lessons learned in successfully engaging with national policy makers: 

  • The use of niche skill sets: when aiming to introduce specific tax incentives, a tax specialist was required to effectively discuss this with national tax policy makers.
  • Deliberate and direct communication: regular, professional, and accurate information and Project updates ensured that communication enhanced the policy engagement and expectations were met.
  • Networking and relationship building: ensuring project implementers knew, and were known, by policy makers allowed for the Project’s goals to not be forgotten and allowed for personal communication and messaging.
  • Institutional support: having institutional support from key government departments was crucial to securing the support from other government departments and policy makers.
  • Historical relationships: understanding the history behind previous engagements, positive and negative, was vital in determining how the policy engagement proceeded.
Diversity

Ecologically, diversity allows for a balanced ecosystem where different species help to accelerate or inhibit the growth of one another. Socially, diversity allows for integrative consideration and equal participation in a public food forest. In either setting, diversity creates conflicts and a dynamic equilibrium to make sure that no species or a specific group of people occupy all the benefits by excluding the others.


Diversity may be in terms of sex, age, race, occupation, financial status and many more. As the Beacon Food Forest is located on a public land in Seattle, one of the most culturally diverse cities in the United States, we are advised by the City government at the initial stage of the project to showcase our design map of the Beacon Food Forest in communities of different cultures. It was a necessary step to gain diverse support and proof that this project is not only in the interest of one group but many different groups of people. By valuing these diverse cultures, we ended up getting vast emails of interest and even seeds and plants that are unique to these people’s homeland (foreign but not invasive), and of course the City government’s approval to proceed the project.

1. The awareness of being inclusive and respectful to diversity.

2. Different sectors (e.g. Seattle City government) that can provide insights that would not otherwise be thought of by just the community.

3. A universal value or interest that is shared by more than just one group of people. In our case, the Beacon Food Forest offers healthy and affordable food that is of common interest to people regardless of sex, age, culture, and financial status.

Going into communities with different cultural backgrounds was faced with two major challenges:

  1. Not everyone in the community understands English, especially the elderly, and so having an interpreter understands the project would help in the communication process.

  2. Cultural clash is something that is inevitable but can be seen as a positive process towards getting used to each other. We believe the way to accelerate the process is to just keep listening with respect. From our experience, the best way to minimize conflict during the communication is to stay inclusive and rational, and to remind ourselves with the ultimate goal and baseline principles of the project.

Diversity in sectors also means more resources. We are very lucky to have the City government as the third party and a legitimate voice in times when necessary. The University of Washington granted us a beautiful gathering patio as a result of the students’ project and we wouldn’t have educated hundreds of students each year if it weren’t for the support from local schools. Value diversity.

Community empowerment

A successful solution requires a strong community where all are given enough knowledge (aka. power) and trust to fully engage themselves. Beacon Food Forest is co-founded by two local residents but the active engagement from the wider community is the true reason why it is still growing and prospering after 6 years. Hence, building a strong community that is empowered with knowledge, skills, and trust is the key for the Beacon Food Forest to sustain.

 

Community empowerment allows each individual in the community to acquire knowledge and skills needed to participate in the decision-making process of Beacon Food Forest. By providing educational opportunities and by offering leadership opportunities whenever possible (e.g. during workshops, work parties, maintenance events, discussions, and meetings), we allow participants to gain confidence and trust, and then develop a passion and a sense of responsibility towards the land and people which Beacon Food Forest stewards. It is so essential that we do this because for any solution to be carried on, the solution has to be something in which everyone can and is willing to engage themselves in.

  1. Frequent events or interactions within the community that create opportunities for education, leadership and decision-making.

  2. Strong leaders to facilitate events/discussions with equity.

  3. Existing leaders’ willingness to detach from the leadership position.

 

  1. The food forest is a multi-disciplined and continuous learning process and so it is unlikely that anyone - even a skillful leader - is absolutely correct. Hence, it would be appropriate to always listen for different opinions from the community to promote empowerment.

  2. Trust is the key to successful empowerment. Do make sure that new leaders are given full support from existing leaders as well as other community members. For existing leaders, letting go of control is always difficult but is crucial for successful empowerment.

  3. In our effort to empower the community, we noticed that our leaders are mostly white people. Although we have tried hard to be inclusive to different ethnicities by holding events in other communities, planting cultural-specific species, having our bulletin board translated into more than 5 languages, it is obvious that exclusion still occurred. It would be important to gain more than a couple of leaders of different ethnicities so that the Beacon Food Forest may care for people from different backgrounds.

Habitat mapping layer

The current habitat mapping layer is a source of information regarding the up-to-date distribution and quality of habitats all over the Czech Republic. 

More information is available in the English summary of the publication at the following link: https://www.researchgate.net/publication/47048702_Mapovani_biotopu_v_Ceske_republice_vychodiska_vysledky_perspektivy

  • Continuous financial support of the Ministry of the Environment of the Czech Republic.
  • Strong technical and well-managed capacity of the Czech Nature Conservation Agency at the country level. 

Once you have finalized such a habitat data layer and make it publicly available, you should set the new and review quality standards to keep the information regularly updated (ideally before it is released).

Standardized country methodology for regular habitat mapping

Czechia has developed tailor-made methodology on habitat mapping that is carried out as a field inventory in the whole country. Only trained experts are involved in the process, and all results are verified. 

The result is a country-wide habitat layer giving fine information about each natural and seminatural habitat occuring in the country. That is now one of the most important datasets on which the national nature conservation builds its strategy and plans measures both inside and outside of protected areas.

The whole approach was developed as a part of the EU accession process. Therefore, the whole task was supported only from the national budget which allowed successful implementation. Such a large task would have not been possible to manage with a project restricted budget. 

When the process started, one of the challenges was to change the mindset of national experts and agree on an innovative approach that was significantly different from the traditional one (unsystematic field research activities). In that case, a legal obligation to establish Natura 2000 following a text of the EU Nature Directives helped. Experts understood the Directives and proactively took advantage of this process (not to perceive it as a burden only).

Mainstreaming integrative forest management

For the successful application of the approach, sustainable and integrative forest management needs not only to be piloted and practiced on the ground but also integrated into national strategies, development plans, and long-term forest management planning and monitoring. Consequently, it is equally important to work with forest tenants on the local level as to mainstream the approach on the national level.

The Join Forest Management approach has been anchored in the Forest Code of Tajikistan in 2011. This builds the legal basis of the implementation and accelerates the further dissemination to other parts of the country. Since 2016, a more integrative forest management is practiced for which an inter-sectoral dialogue has been established. This inter-sectoral dialogue facilitates to address environmental, economic and social challenges beyond the mandate of the forest agency. Forest monitoring and management planning are being strengthened through support to the forest inspection unit. Only if a forest management planning system and a forest monitoring structure are in place, an approach such as the integrative forest approach can be out scaled throughout the country and mismanagement, corruption, and wide-scale violations of regulations (e.g. grazing on forest plots) prevented. 

The JFM approach follows a multilevel approach, targeting national, regional and local level which has proven to be necessary and consequently successful.

A theoretically sound solution can only be as good in practice as its underlying management planning and monitoring system as well as its political support.

Awareness raising and information for local and foreign visitors

The project’s communication strategy was aimed at the local population through press and social media. It was important to produce press releases and invite journalists to report on the project, as was communication through the internet and social media.

A regular programme of activities aimed at the general public, including volunteering activities, was developed. These activities allowed locals (and sometimes visitors) to participate in and learn about conservation activities taking place in the protected area, as well as learning about Azorean biodiversity.

In the end of 2007 the Priolo's Interpretation Centre was opened. Its mission is to raise awareness for the “Priolo” and its habitat, the Laurel Forest. It contains an exhibition that tells the story of Azores bullfinch, explains the conservation actions developed on the ground and talks about the biodiversity of the protected area and of the Azores archipelago. The Priolo’s Interpretation Centre increased the communication capability of the project. This centre provides information for visitors to the protected area and promotes educational activities for schools and the local population. This centre also has a small souvenir shop and donation box, gathering some funding for the implementation of the project.

  • Available funding through European Union Rural Development Funds (LEADER);
  • European Commission funding through LIFE Programme;
  • Partnership between regional government and an NGO in order to build the centre.

 

  • Creation of promotion materials and awareness campaigns are of great significance for the dissemination of the project and to increase the knowledge of the general population about biodiversity and its main threats, allowing the continued involvement of the population, which is crucial to ensure the preservation of natural resources in the long term;
  • Improving public opinion about the project has also proved useful in gathering volunteers and donations that are of great help to the project;
  • No matter how good media communication is, the best awareness raising and communication strategy is engaging the local population and word of mouth. The visitors' centre is of great help to achieve this engagement;
  • We don´t charge entry fees, but ask for donations from our visitors, this promotes the entry of local population that sometimes repeat visits, and we still get some funding from foreign visitors. However, economic sustainability of the visitors’ centre is still a matter we are struggling with.