National Environmental National Environmental Funds as a Tool for Funds as a Tool for

promoting Conservation promoting Conservation

Fondo Mexicano para la Conservación de la

Naturaleza, AC

Latin American and the Caribbean Network of Environmental Funds

Latin American and the Caribbean Network of Environmental Funds

Overall Approach to Conservation Finance:Overall Approach to Conservation Finance:National Environmental Funds (NEFs)National Environmental Funds (NEFs)

Are innovative mechanisms for the long-term financing of initiatives such as:

– sustainable use of natural resources– direct biodiversity conservation

efforts– prevention and reduction of pollution– and training and strengthening of

civil society

They can build an endowment from:

•governments and/or donor agencies grants

•proceeds from debt-for-nature swaps•taxes and designated fees for

conservation•grants from private foundations and

individuals

National Environmental Funds (NEFs)National Environmental Funds (NEFs)

or operate with sinking funds that can be donor-labeled or NEF discretional (or both)

They are one of the best tools for conservation because they:

• address long-term issues

• manage funds and provide technical support

with relative simple private to private schemes

National Environmental Funds (NEFs)National Environmental Funds (NEFs)

• Rely on an organized civil society able to

implement activities

• Have in most countries an active government

support and broad base community participation

• Apply rigorous record keeping, transparency and

reliable systems of management and auditing

National Environmental Funds (NEFs)National Environmental Funds (NEFs)

Number of NEF incorporated by yearNumber of NEF incorporated by yearLatin America and the CaribbeanLatin America and the Caribbean

0

1

2

3

4

5

6

No.

of

NE

Fs

89 90 91 92 93 94 95 96 97 98 99 2000 2001

activity start up year

Number of NEFs Operating in the Number of NEFs Operating in the RegionRegion

28

0

5

10

15

20

25

30

89 90 91 92 93 94 95 96 97 98 99 2000 2001

Private, Public and Hybrid NEFs in the Private, Public and Hybrid NEFs in the RegionRegion

private24%

hybrid20%

public56%

Capitalization Level of NEFs in the Capitalization Level of NEFs in the RegionRegion

< 1 MMUS

21%

1-10 MMUS

38%10-20 MMUS

4%

> 50 MMUS

8%

20 - 50 MMUS

29%

Annual Budget & Combined Endowment Annual Budget & Combined Endowment

Level for NEFs in LACLevel for NEFs in LAC

• Total endowment funds of FANs in LAC

– US$150 million (in 2000)

• Combined annual budget exceeds US$70 million

• These figures are insignificant compared to the

extent of the challenge...

• ... but encouraging based on the organizational

increase

LAC NEF’s Scope of WorkLAC NEF’s Scope of Work

Protected Areas19%

Combined agenda

66%

Green15%

NEF’s Perspectives and NEF’s Perspectives and ChallengesChallenges

• Capacity assessment and institutional strengthening at a regional and national (local) level

• Research and development model for larger scale private sector and government implementation

• Link between private and public interests

• Environmental policy and mainstreaming effort

Capacity Assessment and Institutional Capacity Assessment and Institutional Strengthening at a Regional Strengthening at a Regional

and National (local) Leveland National (local) Level

• RedLAC

• Mexican Conservation Learning Network

• Program components

– Organizational capacity assessment

– Training

– Information management

Research and Development Model for Larger Research and Development Model for Larger Scale Government ImplementationScale Government Implementation

• Protected areas management schemes

• Sustainable use of biodiversity

• Fire prevention

• Community based eco-tourism

Link between Private and Public Link between Private and Public SectorsSectors

• Fishing industry

• Forestry industry

• Media and communication efforts

• Financial and insurance sector

Environmental Policy and Mainstreaming Environmental Policy and Mainstreaming EffortEffort

• Link between applied science and

environmental policy

• Implementing agent between Multi/Bi donors

and local governments

• Recipients of user fee pilot projects

• México´s biodiversity diagnose (Estudio

de País)

• National strategy for the conservation of

biodiversity.

• CONABIO priority sites

• Protected areas system

• Watersheds

Focus of Conservation Finance Program of FMCN: Focus of Conservation Finance Program of FMCN: GeographicGeographic

• Direct conservation activities

• Research for conservation

• Sustainable use of natural resources

• Capacity building / institutional strengthening

• Environmental education and communication

Focus of Conservation Finance Program of FMCN: Focus of Conservation Finance Program of FMCN: ThematicThematic

• Capital campaign phase I (58 mm)

• Capital campaign phase II (42 mm)

(30 mm already committed)

• Direct fund-raising for earmarked

funds

• Other mechanisms

Focus of Conservation Finance Program of FMCN: Focus of Conservation Finance Program of FMCN: Funding SourcesFunding Sources

• Conservation program (open call for proposals)

• Protected areas program

• Fire prevention program

• Mexican Learning Conservation Network

• FMCN - NWF “Environmental Education Initiative”

• FCEA (Environmental Communication and Education Fund)

• NV-WRI-FMCN “Investors Forum”

• RedLAC

Current and Planned PortfolioCurrent and Planned Portfolio

Personnel

Finance and Operations Department

Finance and Operations Department

Executive DirectorExecutive Director

Conservation

Department

Conservation

Department

Natural Protected

Areas Department

Natural Protected

Areas Department

Communications

Department

Communications

Department

Executive SecretaryRedLAC

Executive SecretaryRedLAC

Mexican Conservation

Learning Network

Mexican Conservation

Learning Network

Delivery Systems: StaffingDelivery Systems: Staffing

Committees

General Assembly General Assembly

Board of DirectorsBoard of Directors

EvaluationEvaluationInternationalConsultative Committee

InternationalConsultative Committee

Fire Prevention

Fire Prevention

Natural Protected

Areas

Natural Protected

Areas

Personnel

FinanceFinance

Delivery Systems: ExpertiseDelivery Systems: Expertise

• Conservation directory

• Conservation project database

• SIEVI

• IMAC

Delivery Systems: ToolsDelivery Systems: Tools

• Communication skills

• Marketing skills

• Profitable and sustainable

community projects

Delivery Systems: GapsDelivery Systems: Gaps

• Donor market surveys

• Case studies of environmental

services and user fees projects

• Reduction of red tape and

bureaucratic with bi- and multi-

lateral donors

Role in Conservation Finance Alliance: NeedsRole in Conservation Finance Alliance: Needs

• GEF large donations experience

• Asset management know how

• Networking at a national and

regional level

Role in Conservation Finance Alliance: Role in Conservation Finance Alliance: ContributionsContributions