Seeking Protected Area Financial Sustainability

Álvaro del Campo
Published: 27 June 2022
Last edited: 27 June 2022
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Summary

Despite their high value, many PA are having trouble making ends meet.  Conservation costs are rising, driven by global challenges such as climate change and growing socio-political pressures.  Government budget allocations are not enough to keep up and in many cases they are shrinking.

 

Therefore, it is necessary to develop financial strategies to support effective PA management and achieving conservations goals. This solution describes a step-by-step process to develop a financial strategy. BB1 reflects on the basic information needed; BB2 guides the development of a business model; and BB3 describes how to turn business models into investment-ready projects.

Classifications

Region
Central America
East and South Africa
South America
West and South Europe
Scale of implementation
Local
Ecosystem
Desert ecosystems
Forest ecosystems
Freshwater ecosystems
Hot desert
Marine and coastal ecosystems
Pool, lake, pond
Rocky reef / Rocky shore
Temperate deciduous forest
Temperate evergreen forest
Tropical deciduous forest
Tropical evergreen forest
Theme
Biodiversity mainstreaming
Legal & policy frameworks
Protected and conserved areas governance
Protected and conserved areas management planning
Sustainable financing
Challenges
Unsustainable harvesting incl. Overfishing
Conflicting uses / cumulative impacts
Pollution (incl. eutrophication and litter)
Ecosystem loss
Invasive species
Inefficient management of financial resources
Sustainable development goals
SDG 6 – Clean water and sanitation
SDG 10 – Reduced inequalities
SDG 14 – Life below water
SDG 15 – Life on land
SDG 16 – Peace, justice and strong institutions
SDG 17 – Partnerships for the goals
Aichi targets
Target 1: Awareness of biodiversity increased
Target 2: Biodiversity values integrated
Target 5: Habitat loss halved or reduced
Target 11: Protected and conserved areas
Target 14: Ecosystem services
Target 19: Sharing information and knowledge
Target 20: Mobilizing resources from all sources

Location

Global | Mexico, Guatemala, Cuba, Peru, Colombia, Brazil, Greece, Namibia

Challenges

* Insufficient public resources to manage protected areas.

* Lack of understanding or knowledge on sustainable finance options and solutions.

* Communication difficulties between conservationists and investors.

* Insufficient accountable park management.

Beneficiaries

Protected Area Managers, Conservation Practitioners, local communities, local NGOs, impact investors, private owners of voluntary conserved areas.

How do the building blocks interact?

The building blocks are all part of a process for developing a PA financial strategy. BB1 describes the actions needed to know a PA financial gaps, needs and the context. BB2 exposes the process of designing a business model including identifying assets, coming up with a revenue-generating idea, conducting a feasibility study and developing a business model. BB3 reflects on the steps needed to transform the business model into a reality, from designing a project to finding the financial resources.

 

Without a clear idea of financial gaps and needs, it is very difficult to develop a business model. Without a business model it is very difficult to attract investments in conservation. Without investments in conservation it is very difficult to effectively manage PAs. Without an effective PA management, it is unlikely that conservation goals will be achieved, such as halting biodiversity loss. Without a healthy planet it is unlikely international commitments as Aichi Targets and Post-2020 Biodiversity Agenda, SDGs and Paris Agreement will be met.

Impacts

Effective PA management can have high conservation impacts, as well as social and economic benefits. This solution supports effective management by seeking financial resources.

 

Without a clear idea of financial gaps and needs, it is very difficult to develop a business model. Without a business model it is very difficult to attract investments in conservation. Without investments in conservation it is very difficult to effectively manage PAs. Without an effective PA management, it is unlikely that conservation goals will be achieved, such as halting biodiversity loss. Without a healthy planet it is unlikely international commitments as Aichi Targets and Post-2020 Biodiversity Agenda, SDGs and Paris Agreement will be met.

Contributed by

Lorena.Martinezh_37869's picture

Lorena Martínez Hernández

Other contributors

Stephanie Arellano
IUCN
Ana Laura Barillas Gómez
Fondo Mexicano para la Conservación de la Naturaleza
Lea Badoz
IUCN
Silvana Bustillo
Independent expert
Dimitrios Dimopoulos
Piraeus Bank
Juan Carlos Gonzalez Aybar
Independent expert
Pia Hernandez
IUCN
Carlos Mauricio Herrera
WWF-Colombia
Lydia Slobodian
IUCN
Charlotte Sluka
Independent expert
James Tolisano
Independent expert
Sandra Valenzuela
WWF-Colombia