Biodiversity finance

International Affairs

Volumn 76, Issue 2, 2000, Pages 223-240

  Rubino, Michael C ^a  

^a Palmetto Aquaculture Company   (Finland)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0040778702     PISSN: 00205850     EISSN: None     Source Type: Journal    
DOI: 10.1111/1468-2346.00131     Document Type: Review

References (36)

1. T. Brewer and K. Jun, 'The role of foreign private capital flows in sustainable development', in Finance for sustainable development: the road ahead (New York: United Nations, 1997).
2. See United Nations Environment Programme, The biodiversity agenda: decisions from the Third Meeting of the Conference of the Parties to the Convention on Biological Diversity, Buenos Aires, Argentina, November 1996 (New York and Geneva: United Nations, 1997); L. Glowka et al., A guide to the Convention on Biological Diversity (Gland, Switzerland, and Cambridge: IUCN/The World Conservation Union, 1996).
3. See United Nations Environment Programme, The biodiversity agenda: decisions from the Third Meeting of the Conference of the Parties to the Convention on Biological Diversity, Buenos Aires, Argentina, November 1996 (New York and Geneva: United Nations, 1997); L. Glowka et al., A guide to the Convention on Biological Diversity (Gland, Switzerland, and Cambridge: IUCN/The World Conservation Union, 1996).
4. D. H. Janzen, 'Commercialization of biodiversity: Costa Rica's Guanacaste Conservation Area as a base for development', paper presented at conference on 'Commercial Issues of Biodiversity', sponsored by Scientific American, San Jose, Costa Rica, 7-10 April 1997.
5. See P. Hazel and E. Lutz, 'Integrating environmental and sustainability concerns into rural development policies', in E. Lutz, ed., Agriculture and the environment: perspectives on sustainable rural development (Washington DC: World Bank, 1998). Hazel and Lutz distinguish 'weak', 'strong' and 'sensible' sustainability, depending on whether the definition allows substitution between types of capital assets. 'Sensible' sustainability allows for transformations of natural into human or man-made capital, but also recognizes that critical levels of each type of capital may exist beyond which concerns about sustainability can arise. As the critical limits for each type of capital are not always known, 'it behoves the sensible person to err on the side of caution in depleting resources (especially natural capital).' 'Weak' and 'sensible' definitions of sustainability have the advantage that they do not suggest freezing or preserving all natural resources at existing levels.
6. For example, forestry experts point to the example of an operation which mines one high-value tree species (which may not be sustainable in the sense that the particular species is difficult to replace because of regeneration characteristics or economic factors) but leaves the rest of the forest and its biodiversity values relatively intact. Should this be termed 'sustainable' or 'low-impact' or 'wise-use' or 'biodiversity-friendly' forestry? See R. E. Rice, R. E. Gullison and J. W. Reid, 'Can sustainable management save tropical forests?', Scientific American 276: 4, April 1997, pp. 44-51. Similarly, an ecotourism venture certified as following best practice may bring tourists to previously little-visited areas, causing potential impacts on natural habitat and native peoples.
7. See Greenpeace International, Buying destruction (Amsterdam: Greenpeace, 1999).
8. The John D. and Catherine T. MacArthur Foundation funded a series of studies and case-studies on sustainable forestry practices. See Best and Jenkins, Capital markets and sustainable forestry; J. Polak et al., Sustaining profits and forestry: the business of sustainable forestry (Chicago: John D. and Catherine T. MacArthur Foundation, 1997); M. B. Jenkins and E. T. Smith, The business of sustainable forestry (Washington DC: Island Press, 1999).
9. The John D. and Catherine T. MacArthur Foundation funded a series of studies and case-studies on sustainable forestry practices. See Best and Jenkins, Capital markets and sustainable forestry; J. Polak et al., Sustaining profits and forestry: the business of sustainable forestry (Chicago: John D. and Catherine T. MacArthur Foundation, 1997); M. B. Jenkins and E. T. Smith, The business of sustainable forestry (Washington DC: Island Press, 1999).
10. L.W. Carter, Investment funds in emerging markets (Washington DC: International Finance Corporation, 1996).
11. K. Murphy, 'There's big green in organic food', Business Week, 6 October 1997, p. 170.
12. T. van Bellegem, 'Green investment funds in The Netherlands', paper presented at the Tenth Session of the Global Biodiversity Forum, Bratislava, Slovakia, 1-3 May 1998; Triodos Annual Report 1998.
13. See Promoting entrepreneurship through equity financing, brochure published by the Multilateral Investment Fund of the Inter-American Development Bank (undated).
14. International Finance Corporation, Technical and Environment Department, GEF project document: Latin America Terra Capital Fund (Washington DC: IFC, January 1997); IFC Technical and Environment Department, GEF project document: small and medium scale enterprise program replenishment (Washington DC: IFC, January 1997).
15. International Finance Corporation, Technical and Environment Department, GEF project document: Latin America Terra Capital Fund (Washington DC: IFC, January 1997); IFC Technical and Environment Department, GEF project document: small and medium scale enterprise program replenishment (Washington DC: IFC, January 1997).
16. A Swiss company, Precious Woods, raised an estimated US$40 million in the mid-1990s, largely from Swiss institutional investors, for forestry operations in Costa Rica and Brazil. A US company, Sustainable Forest Systems, raised about US$12 million from institutional investors in the United States over about 1995-8 for certified forestry operations in Paraguay. Another US consortium, Savia (also called Trillium), raised US$100 million in 1997-8 for a planned sustainable forestry operation in Chile and Argentina that subsequently did not proceed. Information based on personal communications with principals of the companies.
17. D. Starkman, 'Hancock Timber tries to solve its knotty problems', Wall Street Journal, 11 Feb 2000, p. B4.
18. J. M. Forgach, Vice-President of Banco Axial, personal communication, 24 January 2000.
19. J. P. Levaux, 'Café politique: growing organic coffee market makes for controversial brew', Investor's Business Daily, 22 November 1999; R. A. Rice and J. R. Ward, Coffee, conservation, and commerce in the western hemisphere (Washington DC: Smithsonian Migratory Bird Center and Natural Resources Defense Council, June 1996).
20. J. P. Levaux, 'Café politique: growing organic coffee market makes for controversial brew', Investor's Business Daily, 22 November 1999; R. A. Rice and J. R. Ward, Coffee, conservation, and commerce in the western hemisphere (Washington DC: Smithsonian Migratory Bird Center and Natural Resources Defense Council, June 1996).
21. See R. Crossley, 'A review of global forest management certification initiatives: political and institutional aspects', paper presented to the conference on 'Economic, social and political issues in certification of forest management', Malaysia, 12-16 May 1996, at www.forestry.ubc.ca/concert/crossley.html. 'Light at the end of the forest: the forestry industry's bumpy road to greenery', Tomorrow: Global Environmental Business 5: 2, special issue devoted to sustainable forestry, April-June 1995.
22. See R. Crossley, 'A review of global forest management certification initiatives: political and institutional aspects', paper presented to the conference on 'Economic, social and political issues in certification of forest management', Malaysia, 12-16 May 1996, at www.forestry.ubc.ca/concert/crossley.html. 'Light at the end of the forest: the forestry industry's bumpy road to greenery', Tomorrow: Global Environmental Business 5: 2, special issue devoted to sustainable forestry, April-June 1995.
23. Ecotourism businesses actively contribute to conservation rather than just seeking to minimize environmental impacts. Ecotourism ventures are expected to contribute financially to preserving the land resource upon which the business is based (neighbouring forest or coral reef), support educational and research programmes, follow ecologically sensitive architectural and land use designs, help sustain the well-being of local people and keep negative impacts to a minimum. Following all these guidelines is a tall order. Regardless of definition, ecotourism can change the biological and human environment if too many tourists go to previously little-visited areas.
24. H. Ceballos-Lascurain, Tourism, ecotourism and protected areas (Gland, Switzerland: IUCN, 1996); S. Blangy and M. E. Wood, 'Developing and implementing ecotourism guidelines for wildlands and neighboring communities', in K. Lindberg and D. E. Hawkins, eds, Ecotourism: a guide for planners and managers (North Bennington, VT: Ecotourism Society, 1993); M. Wells, 'Economic perspectives on nature tourism, conservation and development', World Bank Environmental Economics Series paper, draft, August 1997; G. Wall, 'Is ecotourism sustainable?', Environmental Management 21: 4, 1997, pp. 483-91.
25. H. Ceballos-Lascurain, Tourism, ecotourism and protected areas (Gland, Switzerland: IUCN, 1996); S. Blangy and M. E. Wood, 'Developing and implementing ecotourism guidelines for wildlands and neighboring communities', in K. Lindberg and D. E. Hawkins, eds, Ecotourism: a guide for planners and managers (North Bennington, VT: Ecotourism Society, 1993); M. Wells, 'Economic perspectives on nature tourism, conservation and development', World Bank Environmental Economics Series paper, draft, August 1997; G. Wall, 'Is ecotourism sustainable?', Environmental Management 21: 4, 1997, pp. 483-91.
26. H. Ceballos-Lascurain, Tourism, ecotourism and protected areas (Gland, Switzerland: IUCN, 1996); S. Blangy and M. E. Wood, 'Developing and implementing ecotourism guidelines for wildlands and neighboring communities', in K. Lindberg and D. E. Hawkins, eds, Ecotourism: a guide for planners and managers (North Bennington, VT: Ecotourism Society, 1993); M. Wells, 'Economic perspectives on nature tourism, conservation and development', World Bank Environmental Economics Series paper, draft, August 1997; G. Wall, 'Is ecotourism sustainable?', Environmental Management 21: 4, 1997, pp. 483-91.
27. H. Ceballos-Lascurain, Tourism, ecotourism and protected areas (Gland, Switzerland: IUCN, 1996); S. Blangy and M. E. Wood, 'Developing and implementing ecotourism guidelines for wildlands and neighboring communities', in K. Lindberg and D. E. Hawkins, eds, Ecotourism: a guide for planners and managers (North Bennington, VT: Ecotourism Society, 1993); M. Wells, 'Economic perspectives on nature tourism, conservation and development', World Bank Environmental Economics Series paper, draft, August 1997; G. Wall, 'Is ecotourism sustainable?', Environmental Management 21: 4, 1997, pp. 483-91.
28. In particular, the Ecotourism Society, the World Travel and Tourism Council, the World Tourism Organization and the IUCN have published best practices and industry guidelines.
29. The Brazilian/French NGO Pro-Natura International designed and brokered the agreements in Gabon. See V. Tardieu, 'Le radeau des cimes révèle les trésors cachés de la forêt guyanaise', Le Monde, 11 April 1998, p. 18. Pro-Natura International Newsletter, Spring 1998.
30. See A. Maitland, 'Unilever in fight to save global fisheries', Financial Times, 22 February 1996; Global Aquaculture Alliance brochure, August 1997, available from the National Fisheries Institute at office@NFI.org; C. V. Barber and V. R. Pratt, Sullied seas: strategies for combating cyanide fishing in Southeast Asia and beyond (Washington DC: World Resources Institute, 1997).
31. See A. Maitland, 'Unilever in fight to save global fisheries', Financial Times, 22 February 1996; Global Aquaculture Alliance brochure, August 1997, available from the National Fisheries Institute at office@NFI.org; C. V. Barber and V. R. Pratt, Sullied seas: strategies for combating cyanide fishing in Southeast Asia and beyond (Washington DC: World Resources Institute, 1997).
32. This was the conclusion of the feasibility study in Latin America for Terra Capital Fund. See International Finance Corporation, Technical and Environment Department, GEF project document: Latin America Terra Capital Fund.
33. See M. Totten, Getting it right: emerging markets for storing carbon in forests (Washington DC: Forest Trends and World Resources Institute, 1999). Forest Trends is a non-profit international forestry organization created in 1998 with initial funding from the MacArthur Foundation, the World Bank and the World Wildlife Fund, US.
34. 'Costa Rica: your pollution, our forests', The Economist, 27 June 1998, p. 36; 'Double the park, cut the carbon', Nature Conservancy, March/April 1997, p. 30; G. Reinaud, President, Pro-Natura International, personal communication, 12 Feb. 2000.
35. 'Costa Rica: your pollution, our forests', The Economist, 27 June 1998, p. 36; 'Double the park, cut the carbon', Nature Conservancy, March/April 1997, p. 30; G. Reinaud, President, Pro-Natura International, personal communication, 12 Feb. 2000.
36. F. Tattenbach, FUNDECOR, personal communication, 2 June 1999.