BIOTRADE Initiative of UNCTAD

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1 BIOTRADE Initiative of UNCTAD Current activities and instruments relevant to the sustainable use of biodiversity This report has been written in response to the request of the CBD secretariat to provide information on current activities and instruments relevant to the sustainable use of biological diversity. The UNCTAD BIOTRADE Initiative is an example of activities and instruments that promote trade and investment in biological resources in line with the objectives of the CBD. For this reason, this Initiative will be described following the division suggested in the CBD's letter of 27 June 2001: A. List of relevant projects and methodologies used in UNCTAD BIOTRADE Initiative B. Case studies or examples of best practices for the sustainable use of biodiversity A. LIST OF RELEVANT PROJECTS AND METHODOLOGIES Projects Methodologies BIOTRADE Initiative UNCTAD Objective: Promote trade and investment in biological resources in line with CBD. Establish partnerships with national, regional and international organizations with the aim of setting up programmes that enhance the capacity of developing countries to produce value-added products and services derived from biological resources from areas rich in biodiversity, for both domestic and international markets. Promotion of so-called BIOTRADE country and regional programmes. Policy development and trade facilitation. Internet services at national, regional and international level. UNCTAD ITC: Trade Facilitation Programme for natural products 1 Objective To facilitate trade in biodiversity products and services, through innovative collaborative arrangements that will enhance sustainable bio-resources management, product development, value-added processing and marketing. Phase I: Develop sustainability criteria. Develop a methodological model for product selection and identification. Develop training materials. Develop strategic partnerships with collaborating organizations and identify markets for biotrade products. Develop a communication and exchange information facility. Phase II: Practical trade facilitation (e.g. capacity building, market information, trade promotion strategies, export development programmes, product and quality improvement, trade fair participation and matchmaking). 1

2 BIOTRADE Programmes: Sostenible ) in: Bolivia Colombia Ecuador Peru Venezuela Projects Country (Biocomercio Objective: Enhance the capacity of developing countries to sustainably produce and trade value added products and services derived from biodiversity, in line with the CBD. Regional programmes: Joint CAN-CAF-UNCTAD programme: BIOTRADE Initiative in the Andean countries 2 Methodologies Country pre-assessment study, which identifies the status of trade and investment in biological resources in a country, distinguishing the potential needs, conditions and opportunities of a country. Capacity-building through training and technical assistance to support the development of the BIOTRADE country programmes. Selection of a focal point and creation of a steering committee. Formulation of a draft 3 to 4 yrs. country programme and support the identification of funding sources. Exploratory workshops to discuss and to adopt the country programme with all relevant stakeholders (government, local and indigenous communities, private sector, academia, NGOs and others), thus fostering their involvement and collaboration. Implementation of the country programme based on sustainable use of biological resources in line with priorities of each individual country (programmes include for example: pilot projects, market research and studies, information systems, capacity-building programmes, and policy and bio-business development). Feedback of experiences of the country programme in policies that promote sustainable development (on-going). Regular assessment of effectiveness of the country programme. Continuation, revision or termination of the country programme after 4 years. Support the formulation and the implementation of the regional biodiversity strategy of the Andean region, particularly in the area of sustainable economic use. Support the implementation of BIOTRADE country programmes. Support the exchange of knowledge and experiences through a regional information system. Support productive bankable projects of communities and SMEs. Programme Bolsa Amazonia (Belém, Brazil) Develop close partnerships and joint projects with national and international stakeholders working in sustainable use and management of natural resources, mainly biodiversity, in the Amazonian region. Set-up the programme s marketing information system (SIMBA) and register smallholder producers and buyers of sustainable products. Training, technical consultancies and transfer of technology, with the goal to produce value-added biodiversity products. Marketing, dissemination and business promotion. Creation of a Development Fund to support productive projects. Objective Promote community development and commercial activities in the Amazonian region based on sustainable use of locally available materials and resources. 1 The first stage of this joint project between UNCTAD-BIOTRADE and the International Trade Centre is expected to start in the second semester of This programme is implemented in close collaboration with the von Humboldt Institute, Colombia; the Programme Poverty and Environment in Amazonia (POEMA), Brazil; the Southern Alliance for Indigenous Resources (SAFIRE), Zimbabwe, host of the Southern African Natural Product Trade Association (SANProTA) established by NGOs from Botswana, Namibia, Malawi, Zimbabwe and Zambia. Other partners are expected to include the Centre for the Promotion of Imports from Developing Countries (CBI) from the Netherlands, the Swiss Import Promotion Programme (SIPPO) and the Food and Agriculture Organization (FAO). 2 This is a sub-regional programme that complements the Country Programmes of Bolivia, Colombia, Ecuador, Peru and Venezuela, and fosters the exchange of information and experiences, while contributing for the formulation of the Andean Biodiversity Strategy. More information can be found at Comunidad Andina (CAN): Corporación Andina de Fomento (CAF): and 2

3 Regarding the assessment and monitoring of activities, BIOTRADE country programmes develop and adopt sustainability indicators through national consultations with relevant stakeholders and UNCTAD BIOTRADE. For instance, Programa Biocomercio Sostenible in Colombia had established basic sustainability principles for selecting projects (See Case Study: Biocomercio Sostenible of Colombia). B. CASE STUDIES OR EXAMPLES OF BEST PRACTICES FOR THE SUSTAINABLE USE OF BIODIVERSITY WITHIN THE CONTEXT OF UNCTAD BIOTRADE INITIATIVE Background Case Study: BIOTRADE Country Programme of Colombia (Programa Biocomercio Sostenible de Colombia) BIOTRADE Country Programmes are established with the goal of enhancing the capability of developing countries to produce value added products and services derived from biodiversity for local, national, and international markets. These are autonomous programmes managed by national focal points that join efforts with other local actors to develop policies, strategies and pilot projects in line with the country programme s objectives. This includes, for instance, training and research programmes for the sustainable use of biodiversity resources, market information systems and services related to trade facilitation, business development and technical assistance to decision-making processes and community development. Currently, BIOTRADE programmes are being developed in Bolivia, Colombia, Ecuador, Peru and Venezuela. The country programme in Colombia is the most advanced and will be described in more detail below. Programa Biocomercio Sostenible in Colombia The BIOTRADE programme in Colombia ( Programa Biocomercio Sostenible ), which is coordinated by the Humboldt Institute in Colombia, started after a workshop in March 1999 that brought together national and international experts as well as a wide range of national stakeholders 1. The objective of the programme is to foster the use of biodiversity based products and services in support of the sustainable development in Colombia. Currently, the Programme is reinforcing its national role by establishing 7 regional offices around the country. Programa Biocomercio Sostenible has developed work on policy, legislation and enterprise development, capacity building, sustainability criteria, financial tools, information systems, as well as pilot projects for the development of bio-businesses, all related to biodiversity products and services. Projects that are being supported under this programme are identified and selected on the basis of a set of sustainability criteria that were defined and adopted by the programme after national consultations with relevant stakeholders (see Box 1). For instance, the programme provides business development support, through training on the creation of business plans, on-line market information (niche markets and trends, certification and other sustainability criteria, financial tools available, etc.) and contacts with SMEs regarding potential economic products and services derived from biological resources. Moreover, under the activities of the joint CAN-CAF-UNCTAD programme for the Andean countries, Programa Biocomercio Sostenible launched the First Biocomercio Contest 2. For this activity, the Corporación Andina de Fomento (CAF) and the Alexander von Humboldt Institute are looking for the best community-based, or small to medium scale projects that make sustainable 1 Proceedings of the meeting and other documentation can be found at and 2 For more information on the First Biocomercio Contest please visit Other Andean countries that have express their interest, are considering this contest under their national programmes. 3

4 use of Colombia s biodiversity. To enter this contest, participants need to present a business plan that takes into account Biocomercio Sostenible s sustainability principles. Technical support to develop or adapt the business plan to the requirements of the contest is offered to interested participants. The winners will receive soft credits (75% of the total investment amount as a credit and up to 25% as non-reimbursable technical cooperation). The amount that will be provided ranges from US$ 25,000 to US$ 100,000 for community-based and small scale business projects, and from US$ 100,000 to US$ 300,000 for medium scale business projects. BOX 1: Sustainability Principles, Criteria and Indicators for selecting projects under the Biocomercio Sostenible of Colombia The following principles and criteria guide the selection of projects that Biocomercio Sostenible supports: Principle 1: Fulfillment of relevant national and international legislation and agreements. Projects must fulfill all the national, regional and international laws, treaties and agreements to which the country is a Party. Principle 2: Good use and conservation of biodiversity. Products or services included should foster, through environmental practices, the conservation and the sustainable use of biodiversity through all its production cycle (including the supply of natural raw materials). Principle 3: Environmental responsibility. Products or services should produce minimal environmental impact. Impacts should be identified and adequate prevention, control and mitigation actions formulated. Principle 4: Rights and responsibilities of land and natural resources ownership and use. The long-term ownership and use of land and natural resources should be clearly defined and legally established. Principle 5: Respects for the rights of ethnic groups and traditional local communities. The rights of ethnic groups and traditional local communities should be considered when the projects activities involve land/natural resources owned by them and/or have a cultural, ecological, economic and religious significance. Furthermore, it should recognize, respect and compensate these communities when their traditional knowledge is used. Principle 6: Community responsibilities and workers rights. The projects must have a socially responsible approach, so that it contributes to the country s development; it provides fair treatment, capacity-building and good conditions for workers; and establishes good relationships with its providers. Principle 7: Economic feasibility. The project should be market driven, hence with identified market opportunities and guaranteed medium and long-term profitability. Source: Humboldt Institute of Colombia, Upon request of UNCTAD and the countries involved, the Biocomercio Sostenible programme of Colombia is providing technical assistance to the BIOTRADE programmes in Bolivia, Ecuador, Peru and Venezuela. This South-South cooperation is reinforced by the joint CAN-CAF-UNCTAD programme BIOTRADE Initiative in the Andean countries. For instance, field trips have been conducted by regional experts to provide technical expertise on the sustainable use of concrete biodiversity products such as marketing, distribution and trade of essential oils and medicinal plants, among others. In addition, international experts have also participated in these field trips when the countries require additional support. Programme Biocomercio Sostenible has been financed by national organizations such as the Alexander von Humboldt Institute, the Ministry of Environment, as well as from international sources such as GEF, the Governments of the Netherlands and Spain, and UNCTAD, particularly through a UNF (United Nations Foundation) funded project. 4

5 Case Study: Programme Bolsa Amazonia The official launching of Bolsa Amazonia 3 took place on November It is a joint programme of the Brazilian Programme Poverty and Environment in Amazonia (POEMA) and BIOTRADE/UNCTAD. It promotes the sustainable use of Amazonia s natural resources through training, education, and the establishment of a network of economic relationships between organized smallholders of Amazonia and local, national and international companies. Some of the activities developed under this programme are: the establishment of an information system for Bolsa Amazonia, capacity building projects focusing on the sustainable use of biodiversity and value added in products; marketing and business promotion; and the development of policies and instruments to promote and to support the sustainable use of biodiversity. Within the Brazilian Amazon, the programme has established focal points in collaboration with local organizations in the States of Amapa, Rondonia and Acre. The programme will also be extended to the other Amazon Basin countries. Bolsa Amazonia Ecuador was launched in November 2000 with the NGO Ambiente y Sociedad, and Bolsa Amazonia Colombia with the Programa Biocomercio Sostenible in June Discussions to start Bolsa Amazonia in Bolivia are well advanced and an agreement is expected to be signed in October The program expects to reach similar agreements in Peru and Venezuela over the next months. Bolsa Amazonia has also established close links with communities, private sector and government through commercial partnership that foster community development and ecological conservation in the Amazon Basin. One of its successful experiences is the partnership between POEMA and Daimler Chrysler/Mercedes Benz of Brazil 4 that started in 1994 and uses coconut fiber and latex to manufacture products for the automobile industry, such as seats, cushions, sun visors and headrests, in substitution of synthetic materials. This on-going experiences of POEMA and the Bolsa Amazonia Programme involves over 5,000 families in 57 communities, two of them being indigenous and distributed throughout 14 municipalities, 12 in Pará and 2 in the State of Amapá. The positive results obtained involve: Social Sustainability: Local communities: revaluation of their culture and traditional practices, receive training on management and sustainable trade, and enhancing the organizational level of communities that have adopted a collective form of production. Ecological sustainability: Forests and other ecosystems: avoid their depletion by sustainable management practices and rehabilitation of degraded areas through agroforestry systems and production of organic by-products; reduction of the pressure on natural resources as more permanent systems of cultivation replace subsistence farming and recyclable and biodegradable materials are incorporated into the automobile industry and other markets. Incentives to add value to locally produced latex, resins and other biodiversity products contribute towards the preservation of the different Amazonian ecosystems. Economic sustainability: Local communities: an increase in their family income by adding value to the products. Private sector: improve the quality of the products and the environmental-friendly reputation of the company, while reducing costs. This example is now being replicated on larger scale, including more communities, and using more modern and environmentally friendly large-scale production methods, with an extension of the production range. This project creates a market value for biological resources that need to be sustainable used. 3 More information can be found at 4 Mitschein, T. A. and Miranda, P. S, POEMA: A Proposal for Sustainable Development in Amazonia, in Leihner, D. E. and Mitschein, T. A. (eds), A third millennium for humanity?: the search for paths of sustainable development, PETER LANG GmbH, Germany, 1998, pp

6 Bolsa Amazonia also organized the first three-month specialization course called Sustainable Management of Natural Resources and Commercialization Opportunities for Rural Communities of the Amazonian Region with funding from UNCTAD through the United Nations Foundation (UNF). Participants from various countries of the Amazon Basin completed this course in May The second run of this specialization course will start in September Other activities in 2001 are in the area of business promotion and bio-business development. 6