Monarch Fund: saving the Monarch Butterfly
The Monarch Fund (MF) is a conservation strategy based on economic incentives for forest owners in the core area of the Monarch Butterfly Biosphere Reserve (MBBR). It began with payments for the transfer of forest use rights acquired prior to the publication of the Reserve's decree on November 10, 2000. The payments for forest use rights ended in 2008, which allowed the transition to a Payment for Environmental Services (PES) scheme based on the area conserved, increasing the amount with National Forestry Commission (Conafor) contributions.
The MF was created as an endowment fund within the Mexican Fund for the Conservation of Nature (FMCN) with a contribution of US$7.5 million, this endowment generates annual interests that are transferred yearly to a trust. Annually, the Technical Committee of the trust identifies the land that has not been deforested and grants payments to 34 communities.
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Context
Challenges addressed
Scientific studies have shown that half of the best conserved forest cover in the Monarch Butterfly Biosphere Reserve (MBBR) was degraded during the 1971-1999 period, mainly by illegal logging. For this reason, it was suggested to the Mexican government to expand the core zone of the Reserve and to create contiguous protected areas to ensure the protection of the current and potential habitat of the monarch butterfly and other species, and the supply of water to communities.
The decree of the new MBBR in year 2000, meant that the forest harvesting in the core zone of the reserve was terminated and not allowed in the future, so it was necessary to design a permanent financial mechanism, the Monarch Fund, that would adequately cover the economic interests of the owners of the forests located in the core zone, encouraging them to maintain the forests in a good state of conservation and comply with the provisions established in the MBBR Management Program.
Location
Process
Summary of the process
There is a clear institutional framework that facilitates the operation of the Monarch Fund in the field.
FM is part of FMCN´s Fund for Natural Protected Areas (FANP), a public-private initiative between FMCN, the Government of Mexico and the World Bank. The FANP consists of endowment resources, whose interests are channeled to 30 priority natural protected areas in the country.
FANP has a Technical Committee of the FANP (CTFANP) that oversees its operation, including the FM. This Committee is composed of seven members from different sectors, who are appointed by the National Council of Natural Protected Areas and ratified by the FMCN Board of Directors.
Another component of the FM is the Monarch Fund Trust Technical Committee (CTFMM), which approves annual payments to ejidos and communities that have complied with forest cover conservation in core areas. Six representatives of ejidos, indigenous communities and private landowners participate in the CTFMM.
Building Blocks
Clear institutional framework through public-private partnership
Monarch Fund (MF) is part of FMCN´s Fund for Natural Protected Areas (FANP), a public-private initiative between FMCN, the Government of Mexico and the World Bank. The FANP consists of endowment resources, whose interests are channeled to 30 priority natural protected areas in the country.
FANP has a Technical Committee of the FANP (CTFANP) that oversees its operation, including the MF. This Committee is composed of seven members from different sectors, who are appointed by the National Council of Natural Protected Areas and ratified by the FMCN Board of Directors.
Another component of the MF is the Monarch Fund Trust Technical Committee (CTFMM), which approves annual payments to ejidos and communities that have complied with forest cover conservation in core areas. Six representatives of ejidos (agricultural and forestry properties for collective use), indigenous communities and private landowners participate in the CTFMM.
Enabling factors
This achievement has been the result of the coordinated work of the federal environmental authority, the governments of the states of Mexico and Michoacan, FMCN, WWF, the ejidos, indigenous communities and owners of the core zones that supported the establishment of the Monarch Fund and leveraging Concurrent Funds to double the payment per hectare conserved in the core zones of the MBBR.
Lesson learned
The MF sets a precedent in Mexico for being the first endowment fund whose interests directly support the owners of a federal protected natural area in the long term.
Local capacity building on protected area financing
On the other hand, the Monarch Fund (MF) strengthens the local capacities of 33 ejidos and communities to comply with the fiscal and banking conditions related to annual conservation payments under the concurrent funds' modality. In collaboration with Conafor, Conanp, FMCN and forest advisors, the FM supports the development of 29 Best Management Practices for Conservation Programs (BMPCP). The BMPCP is intended to be a document to guide the implementation of activities aimed at the conservation of forest ecosystems, in order to maintain or improve the provision of environmental services within areas under financial incentives. In addition, the BMPCP are intended to enable beneficiaries to obtain resources from other government programs to carry out the activities proposed in them.
Enabling factors
In order to strengthen the MF strategy within the ejidos and communities, the MF Coordinator accompanied the design of dissemination materials with information on the new stage of the MF .
Finally, the FMCN, in coordination with the United States Forest Service and the Monarch Network, supports complementary conservation activities in the core areas in the areas of fire management, water monitoring, fire protection and restoration of degraded areas.
Lesson learned
As proposed in the case study Funding for Forest and Biodiversity Conservation in the Monarch Butterfly Biosphere Reserve: the Monarch Fund, in the future, we must maintain recognition that forests play an essential role in the generation of the environmental services provided by the MBBR, so that the conservation of core areas is a very important component. However, it must be made clear that "the maintenance of ecosystem services also requires ensuring the sustainable use of the territory throughout the protected natural area and its immediate area of influence"
Resources
Impacts
1. The Monarch Fund (MF) sets a precedent in Mexico for being the first endowment fund whose interests directly support land owners of a federally natural protected area in the long term.
2. Long-term institutional arrangements give communities confidence and transparency in the use of resources. These two elements are essential in reducing forest degradation and deforestation. In addition, having an endowment fund has made possible to secure additional resources from Conafor for a period of 18 years (2009 - 2026).
3.With matching funds, forest owners receive 683 Mexican pesos per hectare for 18 years.
4. The impact of illegal logging on hibernating habitat in the Monarch Butterfly Biosphere Reserve (MBBR) has decreased significantly. This achievement is the result of a coordinated effort of the federal environmental authority, the governments of the states of Mexico and Michoacan, FMCN, WWF, ejidos (agricultural and forestry properties for collective use), indigenous communities and private land owners.
5.The analysis of aerial photographs and satellite images show that between 2003 and 2009 there was a recovery of 722 hectares of forest in core area of the MBBR.
6. In 17 years the total investment of the MF has reached about 54.8 million Mexican pesos to ejidos, indigenous communities and private properties.
Beneficiaries
34 ejidos, indigenous communities and private land owners participating in the Monarch Fund.
Sustainable Development Goals
Story
A complex combination of threats has contributed to the deterioration of the Monarch Butterfly migration phenomenon over the years. However, trilateral scientific meetings indicate that the main threats to the Monarch Butterfly in North America are:
- Impact of glyphosate use on the host plant of the monarch butterfly and its effect on the decline of the population of the butterfly.
- Impact of illegal logging on hibernating habitat in the Monarch Butterfly Biosphere Reserve.
- Impact of adverse weather conditions and climate change.
Of the threats identified by experts, the impact of illegal logging on hibernating habitat in the Monarch Butterfly Biosphere Reserve (MBBR) has decreased significantly. This is shown in the results of annual monitoring of coverage change in the core areas of the MBBR under Monarch Fund (MF).
This achievement has been the result of the coordinated work of the federal environmental authority in Mexico, the governments of the states of Mexico and Michoacan, FMCN, WWF and the ejidos (agricultural and forestry properties for collective use), indigenous communities and owners of the core zones that supported the establishment of the Monarch Fund and leveraging Concurrent Funds to double the payment per hectare conserved in the core zones of the MBBR.
Scientific data reveal that the MF has been successful in reducing degradation and deforestation rates in the GMR. Honey-Roses et al (2011) found evidence that the combination of legal protection of the area (natural protected area decree) and financial incentives provided by the MF have supported the conservation of the Monarch Butterfly's wintering forests. These authors estimate that, although 9% of the areas with logging bans have been deforested since 1993 and 15% of dense forests have disappeared, the loss would have reached an additional 3% and 11%, respectively, without the existence of these protection instruments and incentives. The study makes a detailed comparison with the dynamics observed in surrounding areas that do not have these tools.
These results are a strong indication that financial mechanisms in support of conservation, coordinated with the work of many institutions pursuing the same objective, are an essential part of the formula for reducing deforestation.
The FM sets a precedent in Mexico for being the first endowment fund whose interests directly support the owners of a federal protected natural area in the long term.
