BioTrade Potential for Growth and Sustainability

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1 BioTrade Potential for Growth and Sustainability Biodiversity and Ecosystems: Why these are Important for Sustained Growth and Equity in Latin America and the Caribbean UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT 7 April 2010

2 Overview The BioTrade Initiative Illustrative cases Challenges & opportunities Policy recommendations Q & A

3 Opportunity for sustainable practices Consumers preference for products: natural, healthy, fair and environmentally friendly 2009 Eurobarometer survey - environmental impact of a product is a key purchasing decision for 83% of the surveyed participants USA: 2009 Cone Consumer Environmental Survey - 34% of consumers are more likely to buy environmentally responsible products 2008 sales organic products: US$24.6 billons; food niche grew by 15.8% (vs. 4,9% conventional sector) Potential for LAC countries that are rich in BD & there is a tradition use of those resources

4 What is BioTrade? BioTrade refers to those activities of collection, production, transformation, and commercialization of goods and services derived from native biodiversity under the criteria of environmental, social and economic sustainability. Principles 1. Conservation of biodiversity 2. Sustainable use of biodiversity 3. Fair and equitable sharing of benefits derived from the use of biodiversity 4. Socio-economic sustainability 5. Compliance with national and international regulations 6. Respect for the rights of actors involved in BioTrade activities Value Chain Approach Adaptive Management Approach Ecosystem Approach 7. Clarity about land tenure, use and access to natural resources and knowledge

5 BioTrade network Activities are implemented by national, regional and international partners that foster BioTrade, its Principles and Criteria Established a platform of national, regional and international public and private organizations working for the conservation & sustainable use of biodiversity, and a fair and equitable distribution of benefits Under development: Costa Rica, Indonesia, Paraguay, Vietnam

6 Sales turnover for LA 2007: US$322 mio 2008: US$374 mio + US$ 2 Bn from UEBT members (2008)

7 Jambi Kiwa Community-based SME Women led initiative involving over 600 families Medicinal and aromatic plants Activities supported included: Organizational strengthening & managerial skills Quality and differentiated VA products in niche markets Establishment of a Micro-credit Pictures: Jambi Kiwa and CORPEI

8 Fondo Biocomercio Colombia Specialized fund for BioTrade companies Three services: Credit loans Venture capital investment Factoring Number of beneficiary companies (2007-9) Total turnover of beneficiaries (2009) Hectares under BioTrade practices Number of species under BioTrade practices Employment generated for local communities and minorities Number of beneficiary families 59 US$ ,206 Pictures: Fondo Biocomercio and UNCTAD

9 Nativa Colombia & Cosmetic Valley Nativa Colombia food, cosmetic and pharmaceut. Partnership Cosmetic Valley world leader association for perfumes & cosmetics Broader offer of biodiversity products and ingredients Access to buyer-seller companies & research organizations Exchange of experiences and knowledge Mutual promotion of associations and their members R&D programmes Pictures: Cosmetic Valley and Nativa Colombia

10 Natura Ekos Line Equitable sharing of benefits: 19 natural supply asset agreements (9% total payments made) Iratapuru case Brazilian nut Income from purchasing of oil and % Natura s product sales Enhanced technology facilities FSC certification Sustainable development fund Pictures: Natura

11 Opportunities & challenges Developing & strengthening value chains Market access Policy frameworks Data & measuring the impact of BioTrade

12 Policy recommendations (1) Enabling policy environment Regulatory frameworks & incentives Inclusion of native species in national strategies Strengthen capacities and awareness of government officials Public investment in infrastructure and adequate basic services Facilitate access to markets Awareness raising campaigns and promotion of BT products Public procurement programmes Removal/mitigation of market barriers Access to market information and contacts

13 Policy recommendations (2) Strengthen skills & knowledge Public-Private Partnerships & platforms Business support services and training programmes Facilitate access to finance Capacity building and awareness raising campaigns for financial institutions Green funds or credit lines Enhance production facilities & equipment Facilitate development of technology and research in native species & in value added products

14 Thank you for your attention Pictures: courtesy of BioTrade partners and programmes, and UNCTAD