innovative financing and legal mechanisms for reef ... financing and legal mechanisms for reef...
TRANSCRIPT
Innovative financing and legal mechanisms for reef restoration and emergency response in
selected sites of the MAR Region
Mesoamerican Reef Rescue InitiativeMesoamerican Reef Fund
32nd ICRI General MeetingNairobi
December, 2017
The Mesoamerican Reef: A local treasure, a global resource
• Largest reef in the Atlantic Ocean
• Over 1000 km of coastline
• Four countries: – Mexico, Belize, Guatemala,
Honduras
• Biologically diverse
• Economic importance for local communities and development of the four countries
MAR Fund, a long-term financial mechanism
• Designed to raise and distribute funds at a regional scale
– Complementary funds – Additional to national funds– Endowment and sinking funds
• Effective regional funding mechanism
• Responds to the needs of the region
Mesoamerican Reef RescueInitiative
• Donor: German Cooperation through KfW (endowment)
• Grant: €7 million
• Implementer: Mesoamerican Reef Fund (MAR Fund) and
• Central American Commission on Environment and Development (CCAD)
• Technical Committee: México, Belize, Guatemala and Honduras
Mesoamerican Reef RescueInitiative
Objective
To increase the resilience and ability torecover of the MAR and the environmentaland cultural services it provides throughcapacity building, regulations, economicincentives and financial sustainabilityrequired for the effective and timelyrestoration of the coral reefs.
Four key strategies :
1. Ensure sustainable long-term funding for continuous and emergency restoration
q Emergency Fund q Insurance mechanism
2. Support and develop reef restoration
3. Develop alternative sources of income
4. Promote commitment of governments towards policies and regulations
Project proposal
ICRI/UN Environment
Specific objectives
1. Design and establish a parametric insurance model to cover the cost of coral reef restoration after damages caused by hurricanes
2. Promote adequate legislation along the four countries
1. Establish emergency response protocols
2. Establish effective reef restoration guidelines.
Primary Objective:
Contribute to the conservation of the Mesoamerican Reef by enablinginnovative financing and legal mechanisms to restore coral reefs afterhurricane damage
Designing an insurance for reefs (main steps and key questions)
1. Decision on: compensatory or parametricinsurance
a. Compensation costs are hard to assess and take time, and are subject to litigation.
b. A parametric insurance is a pre-agreed payout based on parameters or “triggers”
c. Insurance to cover the costs of emergency response & restoration actions
OB1: Design and establish a parametric insurance model to cover the cost of coral reef restoration after damages caused by hurricanes.
Outcome: A financing mechanism to improve emergency response actions and restoration of key sites in the MAR Region has been established.
Terms of coverage designed
Risk assessment and vulnerability analysis for coral reef ecosystems developed
Key sites for insurance cover prioritized and characterized
Restoration costs and payout estimated
• The characteristics of a hurricane that relate better with damages caused to the reefs (e.g. surge, wind speed, duration of event, etc.)
• Define an area(s) within which a hurricane, if it passes thru, would damage the reef of interest.
• A hurricane with the defined characteristics passing thru the box triggers the insurance.
Parameters (triggers) and the Box (Catastrophe in the box)
Outcome: Regional and national frameworks to facilitate emergency response and coral reef restoration have been strengthened.
Rapid response protocol designed
Share and discuss results of legal analysis and recommendations
(CCAD)
Legal analysis by country in the MAR region completed
Reef restoration guidelines designed
Outcome: Participatory science-based adaptive rapid response interventions and restoration techniques have been developed
Recommendations for building and adopting regional protocols and
new financial mechanism
Strategic Alliances
1. The Nature Conservancy à model Puerto Morelos National Park, Mexico.
2. Central American Commission on Environment and Development –CCAD-
3. RRI Technical Committee Mexico, Belize, Guatemala and Honduras,
4. Reef Restoration Network (MAR)
Development of baseline:
1. GIS baseline for vulnerable reefs, key site identification.
2. Legal analysis (restoration, permits, rapid response intervention).
Impacts
1. Increase information about risks to corals
2. Increase information on insurance for natural assets
3. Preparedness
4. Helps to mitigate risk
5. Immediate funds for rapid response and restoration
6. Leverage funds for conservation
7. Increase coastal resilience
Regional opportunities:
The Declaration of Tulum creates a logical framework under which the four MAR country governments can work together to take action needed to advance restoration of the Reef.
Thank you
www.marfund.orgwww.facebook.com/MARFund/twitter.com/MAR_Fund