Environmental Funds  |   African Environmental Funds Committee
Protected Areas Financing
Innovative Finance Mechanisms

Innovative Finance Mechanisms Working Group

Conservation faces serious financial challenges. The long-term nature of conservation requires a focus on building reliable and long-term sources of funding. Reliance only on traditional donor funding is risky and can lead to funding gaps. Creating dynamic and nontraditional financing mechanisms linked to markets can contribute to a diversified funding base and play a complementary financing role for conservation activities.

The Innovative Finance Mechanisms Working Group is focused on the development – research and application – of diversified funding models to meet conservation objectives. This WG will review new approaches that seek to value ecosystem services and address sustainable development through community and private sector partnerships. Thus, it will explore pilot opportunities such as mortgage-backed securities, derivatives and effluent credit trading, and wildlife friendly commodity markets to protect threatened landscapes and species, demonstrating how new ideas can contribute to conservation.

The objective of Innovative Finance Mechanisms Working Group is to identify, research, field-test and disseminate information about a range of financing mechanisms which can be applied to achieve conservation outcomes.

Specifically, the activities of the group include:

  • identify new or emerging financing mechanisms with the potential to contribute to long-term conservation financing
  • where practical, support field-application of these mechanisms on a pilot basis, raising funding as needed or working with organizations/groups who already have funding
  • compile lessons learned and case studies from nontraditional pilot activities and develop effective information dissemination approaches
  • coordinate and collaborate with existing initiatives focused on dynamic financing and seek to complement on-going efforts undertaken under the auspices of other organizations
  • organize at least one annual symposium on sustainable financing mechanisms at special policy events and/or conferences to advance adoption of new approaches to support financial sustainability for conservation

In 2012, the IFM WG counts on the leadership of the chairs Ray Victurine, Conservation Finance Director at WCS, and Josh Donlan, Director of Advanced Conservation Strategies.


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