References to Economic Instruments in Selected MEAs Matthew Stilwell Matthew Stilwell

Economic Instruments in Selected MEAs Exploring the role of economic instruments in the context of three biodiversity-related MEAs: –Convention on Biological Diversity –Convention on Trade in Endangered Species of Flora and Fauna (CITES) –Convention on Wetlands (Ramsar Convention) Some considerations for Working Group: –Guidance on areas of overlap and synergy, where economic instruments may have a role –Conventions developed in different eras –Conventions share common objectives –Conventions share common approaches

Convention on Biological Diversity The Convention’s three main goals: –The conservation of biodiversity –Sustainable use of the components of biodiversity –Sharing the benefits arising from the commercial and other utilization of genetic resources in a fair and equitable way According to the Conference of the Parties, incentives: “are essential elements in developing effective approaches to conservation and sustainable use of biological diversity especially at the level of local communities” (Decision V/14)

Main obligations relating to economic instruments in the CBD Conservation and sustainable use of components of biological diversity: “Each Contracting Party shall, as far as possible and as appropriate, adopt economically and socially sound measures that act as incentives for the conservation and sustainable use of components of biological diversity” (Article 11) In situ conservation (Article 8) Sustainable use of the components of biological diversity (Article 10) Other obligations (e.g. access to and transfer of technology (Article 16))

Relevant COP and subsidiary body decisions (CBD) COP6 adopts Decision VI/15 –recognizes that further work has to be undertaken on positive incentives and their performance, as well as on perverse incentives and their removal or mitigation –requests the Executive Secretary, in collaboration with relevant organizations, to elaborate proposals for the application of ways and means to remove or mitigate perverse incentives –encourages Parties and relevant organizations to submit case- studies, lessons learned and other relevant information on incentive measures (especially on positive and perverse incentives) to the Executive Secretary –Proposals for the design and implementation of incentive measures (Annex 1) –Recommendations on further cooperation on incentive measures (Annex 2)

CITES CITES aims to ensure that international trade in specimens of wild animals and plants does not threaten their survival CITES recognizes “that international co-operation is essential for the protection of certain species of wild fauna and flora against over- exploitation through international trade” (preamble) CITES lists species in three appendices: –Appendix I includes species threatened with extinction. Trade in specimens of these species is permitted only in exceptional circumstances. –Appendix II includes species not necessarily threatened with extinction, but in which trade must be controlled in order to avoid utilization incompatible with their survival. –Appendix III contains species that are protected in at least one country, which has asked other CITES Parties for assistance in controlling the trade. No explicit references to incentives in text, but decision taken on economic incentives at recent COP meeting

Relevant COP and subsidiary body decisions (CITES) COP 11 Strategic Plan for the Convention –stresses the importance of the economic dimension of CITES, and recognizes the need for economic incentives to ensure that wildlife trade is carried out in a responsible and sustainable manner COP12 adopts decision on economic instruments –technical workshop on wildlife trade policies and economic incentives applicable to the management of and trade in CITES- listed species –Based on workshop, develop a methodology to review those policies and to make targeted recommendations on the use of those incentives –Includes voluntary review of Parties national policy regarding the use of and trade in CITES-listed species –Compile and synthesize the information provided by the Parties, and produce a report analysing the economic impacts of wildlife trade policies

Ramsar Convention Ramsar Convention promotes: “the conservation and wise use of all wetlands through local, regional and national actions and international cooperation, as a contribution towards achieving sustainable development throughout the world” (preamble) No explicit reference to incentives in text General obligations relevant to use of economic instruments: “The Contracting Parties shall formulate and implement their planning so as to promote the conservation of the wetlands included in the List, and as far as possible the wise use of wetlands in their territory” (Article 3.1) Parties shall “…endeavour to coordinate and support present and future policies and regulations concerning the conservation of wetlands and their flora and fauna” (Article 5)

Relevant COP and subsidiary body decisions (Ramsar) Strategic Plan adopted at COP8 includes: –goal of promoting “incentive measures that encourage the application of the wise use principle, and the removal of perverse incentives” (Operational Objective 8) –Review policy, legal and institutional frameworks to identify and promote those measures which encourage conservation and wise use of wetlands and to identify and remove measures which discourage conservation and wise use, and develop supportive legal and policy frameworks for the design and implementation of incentive measures (Resolution VIII.23) –When reviewing agricultural policies, identifying possible subsidies or incentives that may be having negative impacts on water resources and wetlands and remove or replace them by incentives that would contribute to wetland conservation (Resolution VIII.34) –In collaboration with relevant bodies and experts and the Bureau, investigating linkages between incentives and related topics including financial mechanisms, trade, impact assessment and valuation. (Resolution VIII.23)

Relevant COP and subsidiary body decisions (Ramsar) Also mentions economic incentives in relation to: –integration of wetlands wise use into sustainable development (Operational Objective 3.1) –the restoration and rehabilitation of wetlands (Operational Objective 4) –local communities, indigenous people and cultural values (Operational Objective 6) Other resolutions at COP8 also address economic incentives – awaiting publication

Thematic areas for the use of economic instruments Conservation and sustainable use Economic instruments for in situ conservation Raising financial resources Sustainable trade Payments for environmental services Transferring technology/know-how/ capacity building Addressing perverse subsidies