B1: Setting a price tag on climate change for the involvement of private sector in Ecosystem-based Adaptation

Traditionally, climate change has been conveyed as an environmental and scientific concept. But since its impact on industries and productive sectors has become more and more apparent, there is an urgent need to better understand the economic dimension of climate change and its financial risk for the decision-making of the private sector.

 

Translating environmental risks into business risks also helps to draw the private sector's attention. Therefore, the project ADAPTUR performed an economic risk assessment in three of its project destinations to calculate the future costs of climate change for the tourism industry. Additionally, a handbook on climate-proof investment was published, which was developed with inputs and participation of the private sector, especially during the design of methodology. One of the conclusions was that adaptation would be a good investment because by making businesses more resilient to climate change, it is possible to reduce their future costs.

  • Translating environmental terms into business language: e.g., vulnerability = business risk; ecosystem = nature capital, etc., helps the private sector to get your message.
  • Link climate change impacts to business risks and opportunities: since companies understand their business best, this should be very participatory.
  • Understand how the private sector works: consider existing business processes as part of your solution.
  • Create trust: involve private sector representatives from the beginning, be transparent in decision-making, and have clear expectations.
  • Understand business concepts (return on investment, business case, economic risk, etc.) and the way of thinking (time is money, resources are limited, etc.) when engaging with the private sector. It helps to include a member with private sector background in your team.
  • Since industries have established business processes, it is essential to develop compatible solutions. In Mexico, new investments in tourism infrastructure follow a strict process. Therefore, ADAPTUR developed improvements easy to integrate into the existing process.
  • The private sector has its own tools and methodologies (scenario modeling, risk assessment, cost analysis, etc.). In many cases it is better to build upon those tools instead of introducing a new methodology unknown to the industry.
  • The private sector may consider specific data or information as sensitive, including financial data and specific project results because they may affect a company's reputation in its market. It is therefore important to have a mutual understanding of the information that is confidential or sensitive. Confidentiality agreements may help to formalize this understanding.
Taking stock of the existing Blue Economy

Before embarking on a journey to build a community based approach to a Blue Economy we felt it was important to first understand where we had come from and where we are now. We examined the historical role of maritime businesses on the NSW South Coast and the existing economic, social and cultural relationships of South Coast communities with the ocean. The result was a Blue Futures ‘Story map’ which details the diverse ways in which businesses, community groups and individuals engage with the ocean in our region.

 

When ‘taking stock’ of a region’s blue economy potential, the story map design ensured that no one social, environmental or economic angle was prioritized over another. Instead, space became the organizing principle, enabling users to scroll around the map to learn about what was important to the blue economy around them. In practice, this meant that employment statistics, historic coastal artworks and ocean governance examples appeared alongside clean ocean tech startups and established marine industries. The map brings these data into conversation with each other in the mind of the viewer, purely by their spatial proximity. This is an important first step in raising the profile of cultural and social data for developing blue economy solutions, which are often overlooked in favour of quantifiable statistics.

This building block was enabled by a multidisciplinary team committed to working across traditional disciplinary silos. Artists worked with geographers, economists and environmental scientists to gather together a breadth of visual and textual materials for inclusion in the story map.

 

We underestimated how long the storymapping process would take. Substantial time was needed to bring together digital resources, rights for image use (both from companies, artists and museums/archives) and for trialing different story map styles to best suit the project scale and range of sources.

 

Collating diverse data sources together in a publically accessible and easy to navigate story map gave this building block a larger audience both locally and globally than a traditional written report or textual media release. The story map educated diverse audiences about the ‘blue economy’ and ‘blue future’ concepts which would be viewed by many as otherwise amorphous or niche ideas, at a distance from their everyday lives.

Hortimare - an essential partner for Kelp Blue.

Hortimare, a Dutch-based company, is one of the few companies in the world specialising in the genetics, breeding and propagating of seaweed. Hortimare works with Kelp Blue to create starting material, increase yield and research on best growing techiniques of the Macrocystis pyrifera specie.

Holtimare has a state-of- the art lab in The Netherlands as well as a highly trained experienced team which specializes in seaweed breeding and propagating. Hortimare is an external technical consultant that is helping Kelp Blue set up and develop a hatchery in Namibia and to train a local workforce to run it. They also work together with Kelp Blue in sourcing, collecting and cultivation methods. They are also co-creating a giant kelp seedbank for future use.

The breeding of kelp seedlings is an essential first step in the cultivation of seaweed. There is no public Macrocystis seed bank so Kelp Blue has had to work with partners around the world to sustainably collect spores from wild kelp beds and transport them back to The Netherlands where Hortimare then optimizes Kelp Blue's hatchery system and seeding technique to get to predictable and consistent yield. They share all the information that is needed to make the farm successful. This as a win-win for both parties. Hortimare gets more and more reliable data and knowledge to be able to develop a certain standard and Kelp Blue can translate their findings to predictability of operation.

Sustainably sourcing material, a breeding programme and a property set up hatchery are the cornerstone of any seweed farmer's project.

Co-operative farming for sustainable livelihood

An institutional support is required for the beneficiaries to promote the products they make through this solution, in local, regional and national markets. Since a single farmer cannot meet the quantity demand of the market and the distributors look for bulk quantity, a functioning co-operative has to be formed at the local level. This cooperation serves the purpose of collecting the products, negotiating the price with the distributor, supervising the manufacturing and distributing the profits. 

There is a high demand for brooms and associated products in the local, national and international market and distributors always buy in bulk. By applying cooperative farming methods, it will be easier for a single farmer to supply their product and get a reasonable rate for it. Instead of approaching single farmers, distributers negotiate prices with the cooperative committee, which also guarantees more stable and profitable prices for their members.

  • The leadership of the cooperative committee should be entrusted to persons in the community who are knowledgeable about the market.
  • The co-operative should be made bipartisan and fair to everyone. 

 

Alliances

Various alliances had to be build to ensure the success of the programme. Collaboration was necessarry between the following stakeholders: 

  • Local and provincial government and administrative authorities
  • Social groups like youth clubs, women groups, agriculture committees
  • Forest and land protection committes 
  • Local, regional and national private sector businesses 
  • Various experts, researchers and scholars in this sector

Since this solution involves multi-level activities from planning, implementation, conservation, monitoring, marketing and promoting, it becomes essential to bring all the stakeholders together and interlink them through common goals and their ascribed responsibilities by the state and the society. 

- Stakeholders don't always have the same interests and goals

- Conflict between the stakeholders in the alliances are common because of their interests 

- The thoroughness of legal aspects while dealing with the local bureaucracy is needed

- The awareness of greater good has to be evoked to all the stake holders, time and again

 

Community participation

The communities living in thes project landscapes are directly involved in all phases of this project: household selection, area(s) selection, plantation and supervision of all activities. The project promotes active participation and involvement in decision-making processes.

  1. Community sensitization, to make them aware of the problem 
  2. Reliability on indigenous knowledge about nature based solutions
  3. Understanding that the project is in the interest of national and global donors, but should ultimately be in-line with the local, regional and national priorities
  4. Trust between the community and the organization had to be developed 

During the inception of this project we relied heavily and in some cases solely on the local's knowlede and age old indegenious craft. But during the process we came to know that some of the componenets were irelevant and had to be balanced with some modern techniques and technologies too.

We also learned that, the interest of the community and the local political will doesnt always match.

Benefits generated to communities and livelihood improved

Community forestry in Nepal has brought a number of benefits including an increase in income. It has helped to fight against illegal logging by putting clear rules in place on timber access and a strong system of forest monitoring. Community livelihoods have also improved with easier access to firewood and fodder and better health care and energy access, for example through money from ecotourism and subsidies for renewable energy.

Community forestry shows traits of political, financial, and ecological sustainability, including emergence of a strong legal and regulatory framework, and robust civil society institutions and networks.

A continuing challenge is to ensure equitable distribution of benefits to women and marginalized groups.  

 

The immediate livelihood benefits derived by rural households bolster strong collective action wherein local communities actively and sustainably manage forest resources. Community forests also became the source of diversified investment capital and raw material for new market-oriented livelihoods. 

 

Communities empowered and trusted

Conservation oriented community forestry is essentially a participatory process that requires strong technical assistance on both policy and implementation. Expanding the property rights of local communities over resources and empowering them with knowledge, information, resources, technologies, and required skills for forest management and institution building are basic building blocks for the community forestry. Gender and equity concerns are addressed from the program design so that the poor, women, and marginalized receive fair benefits from the program.

Legal rights over the resources, institutions, capacity, trust, and leadership,

It evolved from the community level, and is based on traditional uses of the forest by communities. This bottom-up approach is a great strength of the Nepalese model as it gives ownership and leadership to communities to decide both where to create a community forest and how to run it.

Governmental Approval

Some of our programs involve coral transplantation. In Thailand it is illegal to touch or damage coral, so we had to seek approval for some of our programs.

To receive approval from the government involves first submitted a proposal for a coral reef restoration zone. Including with this proposal are the techniques for transplantation, the people involved and their experience and qualifications, and a long term plan for monitoring and maintenance.

The DMCR has fully approved our restoration related activities and we conduct transplant research and provide them with that data.

  • Coral restoration experience
  • Long term plan
  • Proposal to government
  • Assessment and approval

This is a long process to get approved. Being able to show that our programs are successful and being assessed and approved took over 2 years of communication, submissions, and assessments.

To be able to obtain permission requires a group of committed volunteers that have relevant experience and are willing to participate in the program for a long term period of time.

Accreditation process

There is a five-tiered process to becoming a WHS.

1. An initial online application that ensures there are no fundamental prohibitive issues. 

2. A candidacy review of the initial application is carried out by impartial representatives.

3. Technical advice to discuss and advise on areas for improvement and on how to submit an application with the greatest chance of success.

4. Final application including supporting evidence, a justification for the geographical delineation of the site and a detailed explanation of how the site achieves each of the criteria. 

5. If successful, Whale Heritage Site (WHS) designation. It must then prepare and submit annual reports explaining how criteria are met.

 

By going through the accreditation process, The Bluff had to show that they could ensure responsible, sustainable practices and livelihoods would be continually improved thus ensuring the health and welfare of whales, dolphins and porpoises and their ocean habitats. 

They were assessed against conditions including supportive legislation, culture, as well as environmental, social and economic sustainability.

They had to provide supporting evidence including statistics relevant to livelihoods, cultural activities, tourists visiting the area, whale-watch tour operators, protected areas, etc.

The Bluff was also obliged to show that community-based research, education, and awareness activities were being conducted. 

Having a clear goal with a clear path towards it, is essential. For a program such as the Whale Heritage site accreditation, there are high standards that must be achieved but there must be a supportive process to help a community navigate their way through it and ultimately achieve that status.