National | PANORAMA

Identifying mechanisms for long-term financing of protected areas and coral reef conservation

The Gulf and Caribbean Fisheries Institute (GCFI) supported technical assistance for stakeholder meetings to discuss sustainable finance strategies for marine protected areas in TCI in 2015.

Possible strategies were formulated in consultation with stakeholders by using the Wolfs Company's Eco2Fin framework, an approach to assess current and potential financing streams based on context-specific conditions. This assessment revealed the diversity of fees and taxes charged to tourists, as well as the lack of earmarked government revenue for protected area management. It also concluded that tourism-related revenue offered untapped opportunities to finance marine protected areas, given that these contain key tourism assets such as coral reefs.

A subsequent analysis of TCI's legal framework provided recommendations on feasible mechanisms to increase budgetary allocations and earmark conservation funds for marine protected areas managers such as DECR. Strategic steps formulated to achieve the succesful implementation of these mechanisms included the development of a business case for increased funding of protected areas and key ecosystems such as coral reefs.

The willingness of stakeholders from different sectors to collaborate and participate in meetings was essential to produce results that could be subsequently adopted.
A supportive tourism sector was also a key enabling aspect.
Legal expertise was necessary to identify feasible mechanisms within the existing legal framework.
External funding and in-kind support for follow-up actions were key to support the implementation of recommendations.

The use of simple and structured approaches, as well as external facilitation, allowed a fluid communication among stakeholders. The underlying analysis of the governance and socioeconomic context helped identify options that could leverage stakeholder support since the inception.

Planning phase

Inception phase

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Wolfs Company's Eco2Fin framework, a stepwise approach to assess current and potential financing mechanisms for protected areas

Building the case for increased funding for protected area and coral reef management

Infographic comparing the operating budget of DECR for protected area management and the value generated through the tourism economy of TCI

Wolfs Company (2016)

Presentation of the case for increased funding for protected areas to the Minister of Tourism, Environment, Heritage, Culture and Gaming of the TCI Government (Left to right: Hon. R. L. Higgs, Wolfs Company consultants)

Eric Salamanca

DECR is one of the main protected area managers in TCI. As a government department, DECR depends on funding allocated through a regular budget cycle. Although the government collects a number of fees and taxes that are linked to nature-dependent sectors such as tourism, none of these payments is earmarked to protected area management. Instead, these funds flow to the consolidated fund, from which they are redistributed across public entities.

Building a strong case for protected area management was fundamental for DECR to promote: 1. increasing funding through the regular budget cycle, and 2. earmarking of a portion of nature-related revenues.

To support DECR in this task, GCFI funded technical assistance for the estimation of budget needs and gaps for basic and optimal protected area management. In addition, an assessment of the tourism value of nature was conducted based on existing studies. By comparing these figures, DECR could show authorities that increasing funding was financially reasonable, given that its operating budget in the year under analysis (2015/2016) was 25 times smaller than the added value of nature for tourism and 30 times smaller than the nature-related tourism revenue for the government.

Active participation of DECR staff in different functional areas to help establish specific budget needs.
Availability of 'willingness to pay' studies in neighbouring countries and territories with similar visitor profiles.
Availability of information from tourist exit survey.

Active involvement of various DECR representatives in the preparation of the business case was fundamental due to the following reasons:

Key staff should have a good understanding of the information presented in the business case and the methods used, so that this can be used and updated in the future.
Key staff should also be able to effectively communicate the business case to stakeholders.
If any staff members leaves the institution, then other members involved in the process should be able to transfer the information internally.

Caribbean

Stimulating sustainable financing for long-term coral reef conservation in the Turks and Caicos Islands

Amílcar

Guzmán Valladares

Identifying mechanisms for long-term financing of protected areas and coral reef conservation

Building the case for increased funding for protected area and coral reef management

Building capacity to monitor and report impacts of coral reef conservation

Caribbean

Stimulating sustainable financing for long-term coral reef conservation in the Turks and Caicos Islands

Amílcar

Guzmán Valladares

Identifying mechanisms for long-term financing of protected areas and coral reef conservation

Building the case for increased funding for protected area and coral reef management

Building capacity to monitor and report impacts of coral reef conservation

Advocacy for development

Implementation of advocacy among various stakeholders was very vital in the creation of awareness on sustainable plastic management. As part of the project, there was a communication awareness campaign as well as nine open-air events to encourage the reduction or better management of plastic waste at source.

Knowledge transfer workshops were held every quarter to update various stakeholders on the extent of the implementation of the waste management strategies, including sharing targets.
Capacity building workshops were critical to access information as well as to agree on targets, which harnessed accountability for their achievement.
Campaigns were very critical in enhancing awareness of waste segregation at source, including rally community groups to be change agents.

Develop networks and sustain them through constant communication and updates as well as incentives for impetus.
Enhance local capacities to make actors of change and own the project by outlining its benefits.
Support partners to be agents and allies of sustainable waste management, including the development of implementation plans together.

Entirety

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Partnerships

Partnerships have been very key in getting stakeholder buy-in as well as ownership on the project. The proposition in the partnerships aimed to decentralize the ownership of the eco-points, spur collections rates and develop a seamless sustainable plastic waste value chain.

During the last 12 months, 3R established various partnerships with different stakeholders. One of the partnerships was with an NGO, ParCo, whereby they established two eco-points, to receive and buy plastic waste from the local community waste pickers.

Continuous stakeholder engagement was cited as an important platform in ironing out issues among partners involved in the implementation of the project

Planning collaboratively is imperative in harnessing synergies as well as allocating responsibility going forward.
Co-creation exercises informed the gaps and opportunities to strengthen aspects of the waste value chain as well as providing the assistance that each stakeholder needed.
A partnership is only but a means. Continuous communication is vital to keep partnerships strong and robust to deliver their objectives.

Planning phase

Inception phase

Implementation

Documentation and dissemination of results

Review phase

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Capacity building to access the funding opportunities

Information session with Praslin's inhabitants.

SeyCCAT

Capacity-building provided to community members to enable them to access the financing opportunities offered by SeyCCAT is essential. This includes sessions on how to write a project proposal, developing a budget, and reporting amongst many other project management skills.

There are different capacity building models. With youth, we get youth experts to teach other young people, on the peer-to-peer principle. We have also a dedicated coaching team, who supports the whole project application cycle. We also partner with existing organisations who have expertise in project management training.

We build capacities for short-term SeyCCAT applications, but it participates in life-time capacity building for the people to apply and manage other projects beyond SeyCCAT.

So far, SeyCCAT has build capacities of about 200 people.

Funding allocated to enable the capacity-building be delivered;
Partnerships with expert organisations in capacity-building and project management skills

This is a long-term investment and because it usually starts immediately, it means during the early days there will be limits to the absorption of funds.

Implementation

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Representativeness of the board

The SeyCCAT Board has members from public and private sectors and civil society, with a majority from the private sector and civil society. It brings all stakeholders' views to the table, so that we get guidance from private sector as well as the NGOs. It is a tri-partite decision-making process, that brings strong consensus, which in turn enhances buy-in from all stakeholders and generates better results.

Willingness for all actors to be involved in the guidance of SeyCCAT's work
Taking decision as a whole with the agreement of everyone.

Representation increases legitimacy and allows for all voices to be represented but efforts must be made not to topple the balance by ensuring that the position of Chair and treasurer are not allocated to those from one sector.

Implementation

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Autonomy and independence of the trust

SeyCCAT must be established as non-governmental in nature, with its autonomy and independence to effectively manage the funds. It participates in increasing the investor confidence.

We should not be seen as another arm of the government, but have a financial and decision-making autonomy, while considering government as a key partner. One of the reasons is that donors have certain internal policies, preventing them to fund government directly.

We are transparency in law, which foster good governance and transparent decision-making processes with all stakeholders and partners involved.

Board with good representativity
Capacity building for eligible projects applicants to access the funds

The ability to work without interference from either government or private donors, other than what was agreed at inception, provides the organisation the independence and autonomy to act in the best interest of the marine environment.

Implementation

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Public - private partnership (PPP)

A Public-Private Partnership (PPP) is critical to the success of blended finance mechanisms such as the debt-swap and the sovereign blue bond. The SeyCCAT Board includes representatives from government, private sector and civil society.

Private engagement in such a partnership is mandatory for attracting private capital investors, who will not be able to fund solely public institutions, due to internal donor policies.

The private sector provides the capital
Risk reduction mechanism through partial guarantees.
Public debt can be leveraged.

It requires the understanding of the factors that are important to all parties, to ensure that the agreement that is reached, satisfies all parties' concerns.

Implementation

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