NCC Environmental Services REAL GROWTH FOR PEOPLE, PLANET AND BUSINESS
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1 NCC Environmental Services REAL GROWTH FOR PEOPLE, PLANET AND BUSINESS Copyright 2014 NCC Environmental Services and CapeNature Any other use or distribution of this presentation, whether in whole or in part, is subject to written approval by both NCC Environmental Services and CapeNature.
2 Project Introduction An Investment Business Case of the income generation potential of protected areas in the Western Cape
3 Why is this important? CapeNature knows that there is an ongoing net loss of biodiversity increasing threats to ecosystems clear targets for biodiversity and PA s increasing PA management costs and. Government budgets for PA expansion and management are decreasing.
4 Why is this important? For PA managers this results in
5 Why is this important? CapeNature has a defined pot of funding.
6 Why is this important? Unfortunately this pot is ALMOST EMPTY :o(
7 Why is this important? and we would like it to be NICE AND FULL :o)
8 Why is this important? Currently CapeNature only has a few income streams a decreasing treasury budget tourism revenue project funding for specific activities
9 We therefore need to Fill the pot through new income streams that build on international success stories look at new and innovative opportunities leverage the unique values of our resources achieve broader socio-economic gains don t compromise biodiversity or ecosystem functioning and align with our organisational values.
10 Hence this project to Develop an Investment Business Case of the income generation potential of protected areas in the Western Cape
11 Chain of funding Western Cape Government The Green Economy Initiative Environment Affairs and Development Planning Provincial Green Economy Project CapeNature Investment Business Case of the income generation potential of protected areas in the Western Cape
12 Provincial Context Western Cape Government and DEA-DP DEA-DP and the Western Cape government as a whole, including Treasury, is supportive of the drive to identify and initiate income generating opportunities to cover budgetary shortfalls for the management of protected areas. The mandate for this project flows from the WC Green Economy Initiaitve.
13 Project Organisation Where does the project fit inside CapeNature Marketing and Eco-Tourism Public Private Partnerships, Green Economy & Income Generation CapeNature: Green Economy Project Team Mahbobah Jacobs Lee-Xavier Schoonraad PROJECT STEERING COMMITTEE External Advisory Committee Marlene Laros (DEADP) Albert Ackhurst (DEADP) Helen Davies (CoCT) Julia Wood (CoCT) Lauren Hermanus (DEADP) Lebeequa Schuurman (DEDAT) Karen Shippy (DEADP) Kobi Brand (DEADP) Janine Daries (DEDAT) Charlene Mouton (DEDAT) Cabral Wicht (DoTP Goodwill Dingaan (DEDAT) Internal Advisory Committee Dr Razeena Omar Sandy Floris Wilfred Williams Morne Magerman Pierre De Villiers Meral Hey Melikhaya Pantsi Marietjie Engelbrecht Ben van Staden Gail Cleaver Jennifer Gouza (TBR)
14 Project Aims Overarching project objectives Determine the scope and level of income generation potential through data collection. Focus on private sector investment and employment creation. Use the project outcomes as the basis for sound strategic decisions and policy development to facilitate sustainable income generation in and around PA s in the WC.
15 Project Aims Overarching project objectives To conduct detailed business planning for a limited number of viable high ROI initiatives. To unlock investment for initiatives chosen for implementation. To support the initial implementation of a significant new income stream
16 Three Phased Project Phase One Awareness, Engagement, Matrix, TOR s Phase Two Develop and apply evaluation criteria Engage experts on the top % of opportunities Select 2/3 opp. for full business planning Include an investment strategy Phase Three Provide start-up support to CN for 1 or 2 of the big income generation opportunities
17 Phase Activity Detail Phase 1 To raise awareness in CN about sustainable financing of PA s and to have thoroughly engaged with key internal and external stakeholders in order to populate a matrix with data on all relevant potential income streams so as to be able to eliminate non-viable opportunities and draft terms of reference for the appointment of consultants to conduct further detailed viability studies and business planning in phase two.
18 Project Aims Phase 2(a) To engage further with experts in requisite fields to gather more detailed data for capture in the income generation matrix in order to apply the selected evaluation criteria to identify the top 10% of income generating opportunities for which a further in-depth study of the financial viability will be conducted in order to select 2/3 of the most viable income generation initiatives for which a full business plan will be compiled in phase 2(b)
19 Project Aims Phase 2(b) To produce full business plans for the top 2/3 income generating initiatives that identify the infrastructure, capacity and operational requirements of the income generation initiative and further identify the criteria and opportunities for investment that will support the selfsustainable operation of the income generating initiatives. To select which income generation initiative/s will be launched in phase three.
20 Project Aims Phase 3 To provide support to CapeNature through the start-up phase of the income generation business/es selected for launch in the form of: - Organisational change management; - Monitoring personnel performance and identifying capacity gaps and recommending capacity building interventions; - Monitoring adherence to the business plan; - Supporting investor relationships; - Facilitating further engagement with external specialists.
21 A definition Sustainable financing for Protected Areas is the capacity to secure diverse, stable and long-term financial resources, and to allocate them in a timely manner and in an appropriate form, to cover the full costs (both direct and indirect) of PAs and to ensure that PAs are managed effectively and efficiently with respect to biodiversity conservation and other objectives. (not in the scope of this project)
22 Project Activities Phase 1 To raise awareness amongst CN staff about the sustainable finance of PA s through presentations and the facilitation of discussions at CN meetings. To review relevant documentation about sustainable PA financing and translate the insights gained into the design of an income generation matrix To engage with key internal and external knowledge holders for the purpose of gathering data for the income generation matrix.
23 Project activities Phase 1 (cont.) To engage the PSC through update s and report back meetings in order to keep the PSC informed of project progress and to collectively agree on solutions for any challenges that may arise. Draft the Phase II ToR s. Produce a Phase One closure report that provides details of: - activities and outcomes; - explanations for matrix design referencing stakeholder input and/or research; - explanations for Phase II ToR s.
24 Activity Plan & Timeline OCT NOV DEC JAN FEB Project Inception Round 1 CN Staff Engagement Internal & External Interviews Themed Workshops Mid Dec Draft Matrix produced Mid Jan Mid Feb: 2 nd round CN Staff Engagement Mid+ Jan Final Matrix Mid+ Feb Final TOR s Final Report Submitted
25 Getting back to that pot and how CapeNature is going to fill it.
26 from different funding sources. through various income streams the pot needs to be filled
27 Understanding funding sources (in conservation speak ) their income stream is Slow and steady Annual treasury budget Capitalised trust funds Sustainable harvesting Leasing high sites Etc
28 Understanding funding sources their income stream is All or nothing Donor Project Funding Funding from Gov. Programmes Etc. (flash floods can have negative consequences)
29 Understanding funding sources their income stream is Fluctuating yet significant & sustained Tourism Payment for Ecosystem Goods and Services Renewable Energy Etc
30 We need diverse income streams
31 to keep our pot full.
32 There are other ways to look at income streams
33 IUCN Categories Funding Securing and administering external donor and government funding Unlocking investment Developing income generating financial instruments User pays Charging market-based fees for Protected Area Goods and Services
34 IUCN PA Financing Funding Securing and administering external donor and Government funding Government budgets Domestic government funding Fundraising and sponsorships Project funding
35 IUCN PA Financing Unlocking investment Developing income generating financial instruments Aggregated offsets Renewable Energy Private sector investment Value added services
36 IUCN PA Financing User pays Charging market-based fees for Protected Area Goods and Services Tourism Natural resource utilization Payment for Ecosystem Goods and Services Leveraging property ownership
37 Tool for capturing insights The Income Generation Matrix A spreadsheet to capture insights from interviews and research To logically collate insights to aid decision making Weighted averages for evaluation criteria to identify priority opportunities. To support awareness raising and engagement
38 Tool for capturing insights
39 A shared responsibility To unlock funding, investment and income generation opportunities, CapeNature staff need to increase awareness and understanding of the value of Ecosystem Goods and Services across all sectors.
40 A shared responsibility To unlock funding, investment and income generation opportunities, CapeNature staff need to learn think like an entrepreneur and be open to new ways of looking at their organisation to see commercial opportunities.
41 A shared responsibility To unlock funding, investment and income generation opportunities, CapeNature staff need to not outsource key functions in a value chain to commercial partners who then take the lions share of income.
42 Thanks Questions and Comments Enquiries: Andrew Purnell - andrewp@ncc-group.co.za Farha Domingo - farhad@ncc-group.co.za Send your input to: capenature@ncc-group.co.za
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