Ecosystem Restoration Partnerships Involving business and investors. Willem Ferwerda UNFF 9 April 2013 Executive Fellow Business & Ecosystems

Transcription

1 Ecosystem Restoration Partnerships Involving business and investors Willem Ferwerda UNFF 9 April 2013 Executive Fellow Business & Ecosystems

2 How to motivate the Private Sector - What are the obstacles? - What are the Conditions to create a Restoration Business The Ecosystem Return model - How does it work? - Next steps 1

3 Restoration is seldom driven by Business (Bonn Challenge is 7.5 % of total degraded land) Degraded Deforested Fraction of the potential 100% = 2 billion ha 1 Projects scheduled until 2020 will address 150 mln ha billion ha will continue to be degraded 1.85 Economic value of degraded ecosystems is USD trillion 1 SOURCE: World Resources Institute, Global Partnership on Forest and Landscape Restoration, Bonn Challenge 2

4 Motivation of the Private Sector 1 Companies use and impact ecosystems Source of raw materials and food Source of energy Source of water Mining Agriculture Energy 2 Companies are an essential and valued part of the societal stakeholders and are, therefore, essential to create longterm commitment and trust Companies Society Government 3 Companies have capabilities that other stakeholders do not have The ability to steer efficient and balanced decision making Funds to invest R&D capabilities to develop innovative product lines Funds Research Decision making SOURCE: UNCCD Zero Net Land Degradation; Nature Resilience; team analysis McKinsey, GPFLR, Bonn Challenge 3

5 Obstacles that need to be addressed The Economic value of Ecosystems is poorly understood and externalities not accounted for Lack of long term thinking; time frame needs to expand from 2-3 years to 20+ years Silo thinking; many stakeholders working in isolation; well intentioned but not additive Many communities continue pattern of behaviors which are no longer sustainable for the land Solution often presented overly complex while simple proven tools and techniques exist 4

6 Rethinking Corporate Sustainability, as Triple P does not work SOURCE: IUCN CEM, RSM: Nature Resilience 5

7 Conditions to create a Restoration Business 1 The lack of knowledge, fear of implications or lack of capabilities withhold companies to do something about it 2 3 A lack of real, long-term trust between the relevant stakeholders, to safeguard company investments A lack of proper tools and skills to value, implement, monitor, build upon, and take maximal benefit of ecosystem restoration 4 Scale Scale A lack of scale in projects, resulting in companies not reaching the desired material impact levels 5 A lack of proper networks, that connect all relevant stakeholders and gives credibility SOURCE: Nature Resilience; team analysis 6

8 1. A language that business understand Archetypes Tapping resources Rationale Give access to local resources and networks in return for restoration Examples US Catskill mountains forest and wetland conservation, water city of New York Restoring and making profit with tea plantations (Sri Lanka Dilmah tea) Obligation to act Restoration out of moral or legal necessity Superfund clean-up Cape Cod Restoration of Mining sites (RWE: lignite; Holcim; Rio Tinto) Testing new technologies Use restoration to test new technologies and partnership models to reduce learning curves. Waterboxx, New planting technologies, Ecuador, Dubai New energy technologies (fencing, solar) Future potentials Restore and develop sustainable future resources Growing second generation biofuels Sustainable agricultural products (cotton) 7

9 2. Show that the Tools which allow restoration to be replicated, exists Examples of tools Description Impact Waterboxx A low-tech solution that stores water in a protected surrounding. Pen root growth of tree. Allows trees and vegetables to grow in degraded dry areas without irrigation Permaculture Bringing organic material back into the ecosystem cycle Nutrient enrichment of the soil; dramatically improving land yield Microbiome species Pseudotsuga The introduction of certain types of mycorrhizae or fungi in the environment Enables plants to grow faster and land to be more productive Melanogaster ambiguus Control Among many other tools SOURCE: Groasis.com, permaculture.org, biomygreen 8

10 3. The Importance of Story Telling Loess Plateau Watershed Rehabilitation, China: Filmmaker John D. Liu SOURCE: World Bank, EEMP, IUCN 9

11 The Ecosystem Return model 1. Partnership: in six steps 2. Landscape: 4 Guidelines, 3 Zones 3. Transformations 4. Four Returns Credibility and Simplicity 10

12 A Restoration Partnership in Six Steps 1 2 Identify the location, investors and stakeholders Make the business investment based on ecology, agriculture and others 6 Act as independent coach to monitor progress and give guidance to assure longterm commitment of all stakeholders 5 Learning and research partnership with a business school Match maker 3 Support vision and strategy with regards to management of restoration 4 Give guidance and access to data of best-practice examples, tools and analyses Transformation of Degraded Landscapes Transformation of Business, Investors Transformation of new Business leaders SOURCE: Nature Resilience: ecological restoration by partners business for next generations. RSM, IUCN CEM,

13 Guidelines Ecology 4 Guidelines and 4 Returns guidelines powered by specialists, approach is systemic - Ecosystem approach & soil assessment - Restoration assessment: % natural zoning; % mixed natural and users zone (agroforestry); % agricultural land - Species in three zones (native and non invasive) - Mapping area Returns Natural capital Stakeholder - Land use assessment - Land tenure assessment - Community approach - Local return first - Employment Social capital ROI Partnership - Return on Investment 5, 10, 15 and 20 year - Using right tools & technology Financial - ROI from new agriculture development, carbon, water, hunting, capital leisure, lower costs, risks because of ecological foundation - PR and marketing, CSR - Identification partners (investors, communities, NGOs, government) - Benefit/Cost ratio per partner - Partnership agreement Engagement & Innovation capital SOURCE: Nature Resilience: ecological restoration by partners business for next generations. RSM, IUCN CEM,

14 Adding Value: Business model is based on Three Landscape Zones Ecological Zone Mixed Zone: ecosystem services agro forestry Economic Zone: agro+land+ job, infra Restored woods for leisure, hunting, ecosystem services Investments Planting trees Natural restoration Extensive maintenance Revenue CO2 capture Water Harvesting, leisure Restored woods for leisure, agroforestry, agriculture Investments Planting usable trees, vege. Extensive maintenance Revenue CO2 capture + Water Agro forestry Harvesting, leisure Dedicated zones for housing Investments Planting trees Crops Extensive maintenance Revenue CO2 capture, water Crops, forestry, leisure Sell land for houses SOURCE: Nature Resilience Team Analysis 13

15 Business model: the longer it lasts, the more return it gives Investment cost After 20y eco-system is are shared by restored, with clear Returns will be partners with protected ecological zones, generated 20y commitment from economic Investment zones while restoring ecological zones to sustain the ecosystem Return Years In first years majority of Economic zone generates complementary return return goes to local for multiple business, e.g., sustainable sourcing stakeholders (cotton, biofuel), economic activities (eco- tourism) new technology testing (new ways of planting) SOURCE: Nature Resilience Team Analysis, McKinsey, RSM, IUCN CEM, 14

16 Spain: the bad bank SAREB needs to restructure bad investments including many hectares of degraded lands More than 10 million ha (17% of land area) is severely degraded in Spain. Reasons: bad water management, agriculture, deforestation, overgrazing, burning. Neglected topic in society. Economic crisis seeks for new answers on high youth unemployment, reputation banks, authorities, civil unrest and many bad lands. Need for positive, inspirational actions and new partnerships. In Spain we need a national showcase to show concrete cases of re greening. Showing the four returns: ROI, ecology, jobs and inspiration= Value added Waterboxx + Local Stakeholders (IUCN Spain) SOURCE: UNCCD, Medio Ambiente Espana, Eurostat, Groasis, IUCN ES 15

17 Goal: Support the Bonn Challenge by creating Restoration Partnerships with Business and Business schools Our partners IUCN CEM UNCCD UNEP HIVOS Wetlands International Wageningen University University Utrecht Charles Darwin Foundation Free University Amsterdam EEMP (China) GPFLR McKinsey & Company Baker & McKenzie Egon Zehnder Deltares FMO Groasis-Green Technology Nyenrode Business University Rotterdam School of Management Leaders for Nature World Land Trust (UK)