Rapid Review of Conservation Trust Funds

IUCN World Conservation CongressBarcelona, October 7, 2008

Melissa Moye Director, Conservation Finance, WWFmelissa.moye@wwfus.org

Conservation Trust Fund (CTF) Anchor to a sustainable financing strategy

• Long-term financing (at least 10 to 15 years) for biodiversity conservation and related purposes

• Legally independent, and governed by a board of directors that includes members from civil society

• Not a silver bullet for covering all recurrent operating costs: one financing source among others

Conservation Trust Funds in the World

Capital Raised An estimated $810 million

Worldwide (74% in LAC, 10% in Asia, 9%in Africa, and 7% in Europe).

Number of CTFs ~ 55

CTFs Serve as “Umbrella Funds”

Manage separate fund accounts

for different purposes

CTFs Have Diversified Sources of Funding

• The total amount contributed by donors to CTFs probably exceeds $1.2 billion

• CTFs can serve as an effective means for mobilizing large amounts of additional funding for biodiversity conservation from international donors, national governments and the private sector

• Almost all CTF Boards have a non-government majority

• Boards with a non-government majority are usually more transparent, participatory and efficient

CTFs Act as Public Private Partnerships

Not Enough CTFs are Addressing Impacts on Biodiversity

• Most CTFs are good at monitoring and evaluating project completion indicators, but not equally good at monitoring the biodiversity impacts of their grants

• Learning from experience needs to be more systematic and RedLAC is facilitating such learning

Financial Management

• Rate of return on investments of CTFs similar to US university endowments: average of 10%/year from 2002-2006 (Conservation Trust Investment Survey)

• Administrative costs range from 5% to 65%, but 15% is average, and is often the limit set by donors

Why should we invest in CTFs?

• Support national PA systems• Strengthen the capacity of national government

PA agencies and local conservation NGOs• Enhance donor coordination • Introducing higher standards and accountability• More predictable & multi-year commitments• Delegation of authority for performance meeting

targets and standards • Increase transparency

CTFs support the Paris Declaration on Aid Effectiveness

CTFs Have Potential New Roles

• Act as a financial intermediary between buyers and sellers of ecosystem services (PES)

• Provide small grants management services

• Manage biodiversity offset funding

For more copies, send an email to: conservationfinance@wwfus.org

Download at: www.redlac.org