Protected and conserved area finance solution Factsheets

From “Practice guidance for protected and conserved area finance,” this is a series of Factsheets on a range of finance mechanisms pertinent to PCA finance.

 
 

Moremi Game Reserve, Botswana. © Hugo Van Zyl

 

Entrance fees

SUSTAINABLE FINANCE FACTSHEET #1

Charges levied for access to protected and conserved areas (PCAs); one of the most widely implemented site-based revenue strategies.

Hugo Van Zyl

 

© David Meyers

 

Tourism concessions

SUSTAINABLE FINANCE FACTSHEET #2

The right to use land or other property for a specified purpose, granted by a government, company, or other controlling body.

Dr Sue Snyman

 

© David Meyers

Debt conversion

SUSTAINABLE FINANCE FACTSHEET #3

Conversion of sovereign debt that simultaneously reduces a country’s debt burden or interest rate and allocates finance for conservation.

Camila Monteiro, Andreas Hansen, Ximena Ecvar-Fadul, Slav Gatchev

© David Meyers

Collaborative management partnerships

SUSTAINABLE FINANCE FACTSHEET #4

A PCA authority enters a contract with a partner (private or NGO) and devolves certain PCA management responsibilities to the partner.

Kathleen H. Fitzgerald

 

© David Meyers

Conservation trust funds (CTF)

SUSTAINABLE FINANCE FACTSHEET #5

Private, legally independent institutions that provide sustainable financing for biodiversity conservation.

Camila Monteiro

Tree frog, Costa Rica. © David Meyers

Payment for ecosystem services (PES)

SUSTAINABLE FINANCE FACTSHEET #6

Creation of a market-based approach where users pay providers for ecosystem services benefits received.

Mitali Sharma

 

Rock Creek Park, District of Columbia, USA. © David Meyers

Project finance for permanence

SUSTAINABLE FINANCE FACTSHEET #7

A financial model that brings together governments, Indigenous peoples and local communities, funders and other partners to secure longterm conservation.

Kathleen H. Fitzgerald

Constance Lemuria, Seychelles. © David Meyers

Biodiversity offsets

SUSTAINABLE FINANCE FACTSHEET #8

Compensation for significant adverse biodiversity impacts; offsets are designed to achieve measurable conservation outcomes.

John J. Bohorquez

 

Treetop Walk, Nature Park Schwarzwald Mitte/Nord, Germany. © David Meyers

Biodiversity credits

SUSTAINABLE FINANCE FACTSHEET #9

Conservation actions with measurable positive biodiversity impacts are verified and ‘credited’ such that credits can be sold, and the buyer can claim positive impacts.

Mitali Sharma and David Meyers

Coral reef, Verde Island, Philippines. © David Meyers

Impact investing

SUSTAINABLE FINANCE FACTSHEET #10

Investments that generate social and environmental impact alongside financial returns, often through blended finance.

Mitali Sharma

 

Clown fish, Bali, Indonesia. © David Meyers

Sustainability certification

SUSTAINABLE FINANCE FACTSHEET #11

The use of standards for production or trade, along with monitoring and labelling processes, to recognise and incentivise products that meet specific environmental and social criteria.

Mitali Sharma

Pilanesberg National Park, South Africa © David Meyers

Human–wildlife conflict insurance

SUSTAINABLE FINANCE FACTSHEET #12

The use of insurance products and innovative finance to address human-wildlife conflict impacts.

Karla Martinez Toral, Jessica Smith, Olivia Wilson-Holt and Paul Steele

 

Parametric insurance

SUSTAINABLE FINANCE FACTSHEET #13

Parametric insurance pays out according to predefined parameters and does not require an estimate of the actual losses, enabling rapid recovery of damaged ecosystems.

Jessica Smith, Karla Martinez Toral and Rhea Kochar

Flooded forest, Rio Negro, Amazonas, Brazil. © David Meyers

Climate finance for nature

SUSTAINABLE FINANCE FACTSHEET #14

Finance mechanisms designed for climate mitigation and adaptation that can be used for nature finance.

Mitali Sharma

 

Katydid, Rio Napo, Ecuador. © David Meyers

Loans and other traditional debt

SUSTAINABLE FINANCE FACTSHEET #15

Return-based finance mechanisms useful to finance investments in government, civil society, and business in support of PCAs.

Mitali Sharma

Non-fungible tokens (NFTs) and the Metaverse

SUSTAINABLE FINANCE FACTSHEET #16

Innovative use of Web3 to enhance finance for nature. Cases: National Parks NFTs, and 300 Gorillas NFT.

Marianne Haahr