1. Caribbean Biodiversity Fund: Sustainable financing for PA systems Robert Weary Sr. Conservation Finance & Policy Advisor Caribbean, The Nature Conservancy Dr. Spencer Thomas Ambassador, Special Envoy for MEAs Grenada

2. Caribbean Challenge Formally launched in Bonn, Germany, May 2008, at CBD COP9, by the Bahamas, Dominican Republic, Jamaica, Grenada, and St. Vincent and the Grenadines

3. Caribbean Challenge Objectives To effectively conserve and manage at least 20% (8.2 million Has) of the Caribbean’s marine habitat by 2020; Creation of sustainable finance mechanisms to support national systems of protected areas Development & implementation of ecosystem based adaptation to climate change projects

5. Caribbean Challenge Timeline 2004 -188 countries commit to a Program of Work on PAs (COP 7) 2005 -TNC signs 6 NISP Agreements w/ Caribbean govts & OECS -Development of Master Plans for National System of Protected Areas 2006 -Micronesia Challenge launched, -Grenada makes 2020 declaration 2008 -Caribbean Challenge launched, 5 countries endorse at COP 9 -TNC pledges $20M in support -KfW pledges €10 M -Bahamas, DR, Jamaica GEF PIFs approved 200420052006200720082009 -CARICOM endorses Caribbean Challenge -E. Carib GEF PIF approved -Bahamas, DR, and Jamaica GEF PPGs completed 2010-11 -Design of Caribbean Biodiversity Fund & national level PA Trusts -E. Caribbean GEF PPG completed -Bahamas, DR, & Jamaica GEF projects underway 2010

6. Public/Private Funding Endowments Work on the GroundTotal GEF$9 M$11 M$20 M Germany (KfW)$12.1 M- USAID-$11 M Italy-$1 M Gov't of Bahamas$2 M- TNC$8 M$12 M$20 M TBD$8.9 M - Total$40 M$35 M$75 M

7. Why this project?

8. Purpose Caribbean Biodiversity Fund Caribbean Biodiversity Fund (the “CBF”) –International donors including GEF, KfW and TNC (the “Initial Donors”) propose to contribute US$40 million to a new endowment fund –To provide additional new funding to help pay for the long-term costs of managing protected areas in 8 Caribbean countries Caribbean Biodiversity Fund (Proportioned to each Trust by Initial Donors) KfW GEF Initial Donors Endowment Funds TNC Investment Manager Board of Trustees

9. Structure Caribbean Biodiversity Fund (Proportioned to each Trust By Initial Donors) Bahamas Trust* Jamaica Trust* SVG Trust* Grenada Trust* St. Kitts & Nevis Trust* KfW GEF Initial Donors Endowment Funds Revolving Funds* TNC Revolving Funds* Revolving Funds* Revolving Funds* Revolving Funds* Investment Manager Revolving Funds* 5% annual max payout Board of Trustees* Local Level Projects * Majority non-government boards. DR Trust* Revolving Funds* St.Lucia Trust* Antigua & Barbuda Trust* Revolving Funds*

10. Donor Contributions (US$) Protected Area TrustKfWTNCGEFGov'tTBDTotal Antigua & Barbuda 900,000 600,000 1,500,000 3,000,000 Bahamas 3,000,000 2,000,000 500,000 2,000,000 2,500,000 10,000,000 Dominican Republic 3,000,000 2,000,000 250,000 4,750,000 10,000,000 Grenada 900,000 600,000 1,500,000 3,000,000 Jamaica 1,600,000 1,000,000 750,000 1,650,000 5,000,000 St. Kitts & Nevis 900,000 600,000 1,500,000 3,000,000 St. Lucia 900,000 600,000 1,500,000 3,000,000 St. Vincent & the Grenadines 900,000 600,000 1,500,000 3,000,000 Total 12,100,000 8,000,000 9,000,000 2,000,000 8,900,000 40,000,000

11. Basic Principles: Additionality Additional Funds: –The CBF would supplement, not replace, current government funding for protected areas Matching Funds: –Within 2 years, each country will create new conservation finance mechanisms such as tourism fees, environmental fees, and/or PES (TBD by the country) that generate at least a 1:1 match to its endowment proceeds Of note, matching requirement could be waived for up to 2 years in the case of events out of its control (natural disasters, global financial crisis, etc)

12. Legal Documents Created NPATF legislation & bylaws CBF Establishment Document CBF Investment Strategy Vertical Agreement (links CBF to NPATFs) CBF Operating Manual

14. Next Steps Review of CBF Establishment Agreement (early 2011) Donor approvals (late 2010/early 2011) Formal creation of CBF (early 2011) Donors transfer funds to CBF (mid 2011) Creation of NPATFs (ideally, during 2011) First payout from CBF to NPATFs (mid 2012) Matching conservation finance mechanisms instituted (by 2014 CBF payment to NPATFs)

15. Conclusions Donor coordination important Country buy-in necessary Time consuming process Demanding & costly legal needs