1. FINANCING NATURA 2000 Agenda item 2.1 CGBN Co-ordination Group
for Biodiversity and Nature
9th meeting - 18/11/10
Agenda item 2.1
FINANCING NATURA 2000

2. Context Next period critical to make Natura 2000 fully operational
Main responsibility for financing lies with the Member States but Article 8 explicitly links delivery to EU co-financing
Council request to assess whether the “integrated approach” for the financing NATURA 2000 is adequate
CBD COP10 also agreed on important new targets for resource mobilisation and for protected areas relevant to Natura 2000.
New Communication aimed at identifying ways of enhancing the success of financing Natura 2000 under the next financial perspective
Current difficult situation - must take into account basic principles of Communication on the EU Budget Review (COM(2010) 700 final) - solid justification on how financing Natura 2000 will contribute to smart, sustainable and inclusive growth, as well as for the EU added value
The Commission is working towards a new Communication on Financing Natura 2000, foreseen for the first half of This will update the estimated costs and benefits of Natura 2000 and evaluate the effectiveness of the current 'integration approach' set out in the earlier 2004 Communication on this subject.
It may also be useful to recall that The six year deadline for SAC designation has already expired for some SCIs and will become increasingly relevant over the next few years. The six year deadline will have expired for 7477 SCIs by the end of 2010 and for SCIs by the end of 2012

3. Issues raised at July stakeholder Conference
Problems of administrative capacity, competition for funds, national co-financing & financing Natura 2000 less attractive in e.g. socio-economic (cohesion policy) or agricultural terms.
advantages of integration approach recognised as well as the potential for its further improvement
A number of issues for future financing considered
Earmarking of funds for Natura 2000 in the key sectoral instruments to ensure prioritised delivery
The importance of management planning & strategic potential of developing Natura 2000 operational programmes/plans
enlarging and adapting the LIFE+ Nature instrument to serve as a catalyst to effectively support integration
promoting the use of innovative approaches and market based instruments including private funding
It is suggested that the conference will examine the following key issues:
Natura 2000 costs – identification of and understanding the needs – presenting the detailed results of the cost survey.
Natura 2000 benefits – presentation of progress on identifying, evaluating, aggregating and demonstrating Natura 2000 benefits. Exchanging experiences with different methodologies.
Current Financing of Natura 2000 – exchange of experience on current approaches in different Member States (presenting examples of good innovative approaches in using different EU financing instruments, failures in securing the funds)
Current Co-financing of Natura 2000 from EU financing instruments – addressing the accessibility, sufficiency, effectiveness of the current situation. Considering the needs and specific chances provided by different funds. Presenting successes and failures.
Possible options for Natura 2000 financing after 2013 – presenting options of possible arrangements of future Natura 2000 financing provisions, considering alternative solutions of Natura 2000 financing.

4. A PRIORITISED ACTION FRAMEWORK (PAF)
Article 8 of the Habitats Directive already foresees the need to develop "a prioritized action framework (PAF)“
only realistically possible on the basis of MS National or regional Natura 2000 prioritised action frameworks
a clearer framework to
set out objectives and priorities,
describe the Natura 2000 measures to be financed,
identify the potential contribution of each EU fund to the national Natura 2000 network for the next Financial Perspective as well as the contribution of Member State funding
set out the prioritised actions to be taken, as well as monitoring and evaluation measures
PAFs would need to be established before the end of 2012
Financial support to support this already possible under LIFE

5. POSSIBLE ELEMENTS FOR PAF
A general description of the nature conservation values of the territory
specific legal, administrative & other provisions for conservation
A list of Natura 2000 sites and an assessment of their contribution to FCS
Information on the results of the Article 17 status assessment
Information on the main risks and threats to habitats and species
Information on relevant governmental and NGO plans and other arrangements for conservation and recovery of species and habitats
strategic conservation objectives and priorities for the period
Sufficient detailed information on measures to achieve objectives/ priorities
procedural provisions and co-operation between public authorities + with private bodies, technical and scientific institutions etc.
An outlook for financing beyond this period

6. THE POTENTIAL OF MARKET BASED INSTRUMENTS
possibility to engage the private sector needs to be fully considered
Member States may introduce fiscal instruments including provision of credits, capital funds, special green funds or trust funds
'habitat banking' also needs to be considered in the wider context
‘payments for Ecosystem Services (PES)’ can provide income which can be used for the management of protected areas
necessary to test, develop and promote new and innovative private funding mechanisms for Natura 2000 with specific sectors over the next financial period (e.g. using LIFE?)

7. ISSUES FOR WHICH VIEWS OF CGBN ARE SOUGHT
The proposal to develop Natura 2000 national/regional financing prioritised action frameworks and how best to achieve this
The potential of market based instruments and innovative approaches, including from private funds, for Natura 2000 financing
Nature Directors and the other participants are invited to share their experience with the current integration approach and if it meets the provisions of Art 8 of the Habitats Directive, including on setting priorities for future financing
Other issuepoints that could be made are:
Increased investment in Natura 2000 which is clearly a public good of fundamental EU-wide importance, during the post 2013 period corresponds to the general principles underpinning the EU's budgetary spending, including:
As recognised under the Habitats Directive the policy cannot be achieved by the Member States alone
Funding is the most appropriate policy instrument to achieve the goal
The requested amount and form of EU funding is proportionate to the efforts needed to achieve this EU biodiversity goal
Financing Natura 2000 will not only come from public funding. Payments for Ecosystem Services (PES) provide in some cases income which can be used for the management of protected areas. However, in the EU, such schemes are far from sufficiently developed to ensure adequate financing for the management of Natura 2000 sites.