the fourth ggkp annual conference...silvia rojas fernández national forestry financing fund...
TRANSCRIPT
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Costa Rica’s Experience with Payment for Ecosystem Services (PES) and the
Way Forward
MBA. Silvia Rojas Fernández
National Forestry Financing Fund
Environmental Bank Foundation
The Fourth GGKP Annual Conference6-7 September 2016Jeju Island, Republic of Korea
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51,100 km2
Costa Rica
4.872 M
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Costa Rica
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Ministry of Environment MINAE
SINAC
PES
Biodiversity C-Neutral
Oceans
International Agreements & Conventions
National Development Plan 2015-
2018
National Forestry
Development Plan
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1950-1960
Land tenure
Agriculture Expansion
Accelerated Deforestation
1960-1970
Protected Area
1st Forestry Law
Increasing Deforestation
Social benefits rural areas
1970-1980
Financial Incentives
Tax Deduction
Primary forest to
deforestation
ACTIONS
IMPACT
The Evolution of Forest Cover
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The Evolution of Forest Cover
1980-1990
2nd Forestry Law
CAF, CAFA, CAFMA,
Decrease Deforestation
Rate
1990-2000
3rd & 4th
Forestry Law
CCB & PES
Decrease Deforestation
Increase Forest Cover
2000-2010
PES
Water Tax
CCUs & C-Neutral
Increase Forest Cover
ACTIONS
IMPACT
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The Evolution of ForestCover
1987ForestCover 21%
2005ForestCover 51%
2013Forest Cover52.4%
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Prohibited since 1996 by Forestry Law 7575
Changes in Land Use
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• Financial contribution for private landowners
• Recuperation and conservation of forest cover
What is PES?
Legal Framework
Government Financing Monitoring
PILARS
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National Forestry FinancingFund
Forestry Law No. 7575
Ministry of Environment
Climate Change
Mitigation
Water Resource
Scenic Beauty Biodiversity
PES
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Framework
FONAFIFO
PES
MINAE
Financial Institutions
Forestry NGOs
Beneficiaries
Regulatory Institutions
AcademyRECOPE
IRS
OTHER
World Bank
KfW
GEF
SINAC
NFO
BFAE
CCSS
Property
Registration
Cadastre
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Variety of PES
Reforestation
Reforestation Fast-Medium
Growing Species
Native Species
Reforestation
Agroforestry Systems
Agroforestry with Native
Species
Agroforestry
Forest Protection
Water Resource
Conservation Gaps
Protection Other
Natural Regeneration
Forest Management
15 years
300 ha max
5 years
350-5000 trees
5 years
2 – 300 ha max
5 years
2 – 300 ha max
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PES Financing
PES
Fuel Tax
NationalNGOs
WaterTax
World Bank
KfW
NGOs
3,5%
25%
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Operational Path
Financing
Mechanisms
Resources
Annual
Payments
Apply
S & M Forestry
Producers
NGOsSINACBureau
FONAFIFO
Field
Supervision
IRSMINAEDonors
Operational
Supervision
Transparent
Financially Secure
Monitored
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SUPPLY < DEMAND
But, there´s one situation…
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PES Financing
PES
Fuel Tax
NationalNGOs
WaterTax
World Bank
KfW
NGOs
Additional
Financing
Mechanisms
3,5%
25%
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Carbon Credits (CCUs)
Specific Projects-Private Sector
Living Forest Project
REDD +
Additional Financing Mechanisms
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• Trust fund
• Invested in financial markets
• Uses revenues to finance a nation wide program
(BCP)
• Focused on 4 main regions
• Ecosystem approach
• Areas with no PES
Sustainable Biodiversity Fund - FBS
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Financial Actors Involved
KfWGEF – World
BankConservation International
Conservation Osa
Costa Rica´s National
Bank (BNCR)
FONAFIFO´s Employee
Association
International
National
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Products
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• 20 + years
• Transparent, secure and monitored
• Efficient against illegal logging and land use
changes
• Fosters private-public alliances
• Lessons learned have helped many countries
throughout the world
Accomplishments
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Accomplishments
Has1.100.000
15.000
Families
6,5M
Trees
HasIndigenous Territories
123.000
52.4%Forest Cover
1997-2015
$420 MInvested
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The Challenge
Conservation
Forest
Management
Restoration
ReforestationAgriculture
Sustainable
Development
Source: Gyde Lund 1999
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• Small but conscious country
• National framework: legal, government, monitoring and financially secured
• There will always be a need for additional financing mechanisms
• Public – Private Partnerships
• Transparent and monitored
• Innovation is the key
Conclusion
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Conclusion
• This slide closes the presentation with key points
• Points should be bulleted
• List key summary points only
• Make sure to highlight policy implications
and/or contributions of the work in addressing
key 'green' and 'inclusive' green growth challenges
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Thank You
MBA. Silvia Rojas Fernández
National Forestry Financing Fund - FONAFIFO
Environmental Bank Foundation - FUNBAM
T: +506 2545-3503