6th ASEAN Heritage Parks Congress21-24 Oct 2019Pakse, Lao PDR

Government initiated mechanisms for financing protected areas

Annabelle Cruz-TrinidadSenior Technical AdvisorBiodiversity Finance Initiative / UNDP

Structure of presentation

• Context for government finance of PAs • BIOFIN Methodology and Finance

solutions framework

• Examples from BIOFIN countries• Recommendations

Parker, C., Cranford, M., Oakes, N., Leggett, M. ed., 2012. The Little Biodiversity Finance Book, Global Canopy Programme; Oxford.

Biodiversity expenditures• 0.2 and 1.8% of their public

budget was related to

biodiversity.

• 0.1 to 0.2% of GDP

Geographic coverage

14

11 Megadiverse

countries

10

12

36 Countries

Policy and Institutional Review

Expenditure Review

Finance needs assessment

Finance plan

BIO

FIN

Fin

ance

Res

ult

s

https://www.biodiversityfinance.net/finance-solutions

https://www.biodiversityfinance.net/finance-solutionshttps://www.biodiversityfinance.net/finance-solutions

• 201 finance solutions across 29 countries

• 25 are directly related to financing Protected Areas

• The rest are mechanisms outside the sector

• Increasing fees, royalties• Budget allocation • Establish a parastatal for the management

of PA fees• Foster conservation agreements between

PA and local authorities• Private investments in protected areas• Incentives• Offsets • Land trust mechanisms

Direct Reference to Protected Area Financing

• Improving capacities for budget formulation• Integrating PAs into national planning context• Securing funds from private sector : CSR,

investments including PPPs• Certification programs for ecotourism • Compensation schemes / Offsets • Implementing EIA and its penalties more

effectively

Indirect Reference to Protected Area Financing

• Greening the finance sector • Carbon tax• Bonds • Trust funds / challenge funds• Venture capital / impact investments• Results based budgeting • Mainstreaming • Bioprospecting• Earmarking• Ecological Fiscal Transfers

Indirect Reference to Protected Area Financing

Philippines

increasing government

budget allocation for

protected areas

“Our job as legislators does not end after we have enacted the law”… Congresswoman Josephine Sato

Indonesia

Green sukuk

INDONESIAN FINANCING GAP ON THE CLIMATE CHANGE AND BIODIVERSITY

The financial gaps between funding needs and currently available financial resources to support GoI commitments in financing climate change and biodiversity activities becomes necessary.

Financial resources allocatedfor both mitigation andadaptation actions 2015 -2019, are $55.1 billionSource: NDC,2017

Total Biodiversity ExpenditureTotal State Expenditure

Biodiversity Expenditure Review (BER)

Finance Needs Assessment (FNA)

ExpenditureGap

6%

94%

Estimated cost of climatechange mitigation andadaptation actions2015-2020 are $81 billionSource: TNC,2017

Current expenditure

Biodiversity needs

Biodiversity gap

USD 0.64 Billion

USD 11.8 Billion

USD 11.2 Billion

Climate Finance Gap

Source : Presentation of Ibu Dwi Irianti Hadiningdyah, Ministry of Finance, Republic of Indonesia, at the 5th BIOFIN Regional Conference, Thailand

PROJECT BASED SUKUK – FOR BIODIVERSITY RELATED PROJECTS National Parks

In 2019, Total of IDR 97.37 billion (USD 6.8 million)

a. Rhino Conservation Center, Ujung Kulon National Parkb. Development of infrastructures and facilities in Halimun

Salak National Parkc. Bull wildlife Park, Alas Purwo National Parkd. Development of Mangrove Park Mantehage Island, Bunakene. Development of Resort Sowa Kwatisore and Whale Shark in

Cendrawasih Bay National Park

Between 2018-2019, infrastructures and facilities have been built

in 8 National Parks with a total amount of

IDR 148.77 billion (USD 10.5 million).

In 2018, Development of infrastructures and facilities in

Baluran, Mount Gede Pangrango, and

Aketajawe National Parks (Total of IDR 51.40

billion or USD 3.6 million)

Baluran National Park, East Java, Indonesia

PROJECT BASED SUKUKTotal Allocation from Government’s Project Based Sukuk has reached USD 4.1 Million (2013-2018)

Development

328 Water Resources Projects

Construction ofRailway Tracks inJava, Sumatera, Sulawesi

Construction of Road and Bridges in 30 Provinces

Construction & Development ofBuildings in 54Universities

Development & RevitalizationHajj House in 24 different

Locations

Construction & Development 32

Islamic Schools Construction & Development of

5 Laboratories

Development of

8 National Parks(Baluran, Gunung Gede Pangrango, Aketajawe-Lolobata/Halmahera)

Construction & Rehabilitation of 701 Religious Affairs Office & Hajj Office

Thank You

www.biodiversityfinance.net