Delivering Sustainable Solutions : engaging with Governments and Aid Agencies. WWF annual conference 2004 NGO and Donor

1. Delivering Sustainable Solutions : engaging with Governments and Aid Agencies.WWF annual conference 2004NGO and DonorsA key partnership for sustainable development Pierre Jacquet Executive Director for Strategy & Chief Economist French Development Agency (AFD)

2. Outline Why are we here : Who are we ? The French main operator of ODA Development aid and Sustainable Development MDG : a missed opportunity for SD ? Is NRM pro-poor? NGO and donors : unlikely but critical relationship Why should NGOs be concerned with economic development ? a balanced partnership between NGOs and donors Challenges ahead

3. Who are we ? (1/3) AFD Key operator of French ODA within the French ODA system Active in 60 countries (Africa, Asia, French overseas territories) with a network of 45 ��agencies��. 6 ��new�� countries opened in 2003 to our operations (Egypt, Jordan, Syria, Turkey, Thailand and China) TOTAL OPERATIONS (2002) : � 1.6 billion (incl. 0.5 in French overseas territories) 1.200 employees AFD also manages the French GEF (FFEM)

4. TOTAL INVESTMENT 1652 M EUROS * 599 IN FRENCH OVERSEAS TERRITORIES * 1053 IN FOREIGN COUNTRIES: - 777 PROJECT FINANCING - 194 STRUCTURAL ADJUSTMENT - 82 EN GARANTIES ET PARTICIPATIONS ANNUAL INVESTMENT IN ENVIRONMENT IS 44 M EUROS IN BIODIV, CLIMATE CHANGE, FORESTS, MARINE, DESERTIFICATION, WATER RESOURCESTOTAL INVESTMENT 1652 M EUROS * 599 IN FRENCH OVERSEAS TERRITORIES * 1053 IN FOREIGN COUNTRIES: - 777 PROJECT FINANCING - 194 STRUCTURAL ADJUSTMENT - 82 EN GARANTIES ET PARTICIPATIONS ANNUAL INVESTMENT IN ENVIRONMENT IS 44 M EUROS IN BIODIV, CLIMATE CHANGE, FORESTS, MARINE, DESERTIFICATION, WATER RESOURCES

5. Who are we (3/3) A major reform of AFD undertaken in 2002 A small, bilateral institution --> strategic focus, search for impacts Key objectives : Global public goods, poverty reduction, sustainable development. View of ODA as a major public policy for globalization, at the juncture of the interests of the North and of the South Key commitments : quality, effectiveness Measuring impacts, accounting for the use of public resources Managing for results Strategic thinking

6. Outline Why are we here : Who are we ? The French main operator of ODA Development aid and Sustainable Development MDG : a missed opportunity for SD ? Is NRM pro-poor? NGO and donors : unlikely but critical relationship Why should NGOs be concerned with economic development ? a balanced partnership between NGOs and donors Challenges ahead

7. ODA and Environment Three reasons why environment is at the heart of effective ODA Fragile natural resources are often the only assets of the poors : conservation is crucial for development. SD as a social process and a negotiation rather than a result Environment is key to several Global public goods Evolution of donors�� perspectives : NRM is a central ingredient for quality and accountability

8. ODA and NRM (2): What role for MDGs? MDG is a powerful rallying message for donors It is now universally used to measure impacts and communicate on results SD should lead to increased focus on environment. But environment has only a backseat (MDG 7 : environment with water, sanitation and slums). We should see MDGs as a scorecard, not as exclusive focus or principles for action Our objectives are wider Results matter; long term, perennial results imply a focus on development and growth processes. Here is the link with SD

9. Is NRM pro-poor? Like growth, NRM is an essential part of any sustainable pro-poor policy But NRM is not necessarily framed as a pro-poor policy, nor is it necessarily contributing to poverty reduction. Donors currently think of operationalizing pro-poor growth strategies. Similarly, there is a need to operationalize pro-poor NRM strategies

10. Outline Why are we here : Who are we ? The French main operator of ODA Development aid and Sustainable Development MDG : a missed opportunity for SD ? Is NRM pro-poor? NGO and donors : unlikely but critical relationship Why should NGOs promote economic development ? a balanced partnership between NGOs and donors Challenges ahead

11. Why should environmental NGOs promote economic development? Poverty traps : activities mining environment (soil, water resources, forests, biodiversity) SD implies the ability to think ahead, which depends on the standard of living. The poor have very short term horizons. SD implies growth and poverty reduction : the environment concern alone is not sustainable. How do your programmes meet the test ?

12. Outline Why are we here : Who are we ? The French main operator of ODA Development aid and Sustainable Development MDG : a missed opportunity for SD ? Is NRM pro-poor? NGO and donors : unlikely but critical relationship Why should NGOs be concerned with economic development ? A balanced partnership between NGOs and donors Challenges ahead

13. Environment for development Influence all stakeholders in development South and North : governments (including Ministries of finance), businesses, donors, local populations Mainstream environment in national strategies (PRSPs) and in national sector policies (infrastructure, energy, agriculture, urban planning, etc) Build local capacities : NGOs close to populations Build local capacities to negotiate and operate sustainable development Provide scientific inputs to make the case for SD (ecoregion, hotspots ...)

14. Balanced partnership Building on specific & complementary expertise Exchanging field experiences & methodologies Independent monitoring of our results A professional Alliance The political implications of our partnership : needs for consistency & responsibility Trust and long-term relationship : on the field in the countries but also between WWF-AFD headquarters

15. The role of economics Valuing the contribution of environmental approaches to convince all stakeholders Three examples to highlight the importance a common understanding, vision and objective of NGOs, Populations, Government and Donors : Protected areas in Madagascar Costs of environmental degradation Sustainable management of central Africa forests

16. The cost-benefits analysis of protected areas of Madagascar presented by WB and AFD at the congress of Durban stressed two main conclusions : - the main beneficiaries are the 250.000 rice farmer downstream = the malagasy government decided to increase the PA superficy by 3 - the great challenge for sustainability of the Pas network is to be met with alternatives to slash and burn : ODA is requested for conservation agriculture and land tenure managementThe cost-benefits analysis of protected areas of Madagascar presented by WB and AFD at the congress of Durban stressed two main conclusions : - the main beneficiaries are the 250.000 rice farmer downstream = the malagasy government decided to increase the PA superficy by 3 - the great challenge for sustainability of the Pas network is to be met with alternatives to slash and burn : ODA is requested for conservation agriculture and land tenure management

17. A study conducted by WB in MENA region presents the importance of the environmental damage costs for water, coastal areas, air pollution and soils ==> results is having real influnence on the government planification process in Tunisia.A study conducted by WB in MENA region presents the importance of the environmental damage costs for water, coastal areas, air pollution and soils ==> results is having real influnence on the government planification process in Tunisia.

18. Congo basin forest management A strong scientific justification : second world forest basin with high megabiodiversity in rather good condition Conflictual approaches : conservation, fiscal and tax incomes, transparency, legislation, sustainable management of forest concessions, illegal logging, bushmeat� Result : Confusion, none of these approaches is sustainable by itself. PROPOSAL : a joint promotion of the sustainable management of 100% of this natural resource asset : 10% in Protected areas (PAs) 90 % in sustainable forest concessions (big, medium and villages) in a sectorial policy framework including World Bank The paradox : WWF is collaborating with AFD on that concern while others are fighting against

19. Outline Why are we here : Who are we ? The French main operator of ODA Development aid and Sustainable Development MDG : a missed opportunity for SD ? Is NRM pro-poor? NGO and donors : unlikely but critical relationship Why should NGOs be concerned with economic development ? a balanced partnership between NGOs and donors Challenges ahead

20. Four challenges ahead 1. High priority : develop our common actions on the field = Quirimbas, tropical forest, PAs of Madagascar, marine environment ... 2. Invest more in institutions for NRM : At the national level : sector approach (ex: malagasian fisheries), national development policies or PRSP At the global level : the environment pillar of global governance is yet to create 3. ODA is set to increase over the coming years : how shall we together push environment ahead to the front seat? SUR QUIRIMBAS : WWF IS THE PROMOTOR, COFINANCING WITH AFD-FFEM AND OPERATING OUR FUNDS : AFD 3,5 M EUROS FFEM 0,7 M EUROS WWF 1 M EUROS OTHER COFINANCING : MADAGASCAR : TRUST FUND FOR PROTECTED AREAS : AFD+ FFEM WITH WWF-CI-KFW CORAL INITIATIVE WITH WWF, CI, AND OTHERS CONGO BASIN FORESTS : A SPECIAL MOU FOR MONITORING, IMPROVING AFD STRATEGIES, IMPROVE OUR COMMON IFLUENCE KENYA : AFD WANTS TO WORK WITH WWFSUR QUIRIMBAS : WWF IS THE PROMOTOR, COFINANCING WITH AFD-FFEM AND OPERATING OUR FUNDS : AFD 3,5 M EUROS FFEM 0,7 M EUROS WWF 1 M EUROS OTHER COFINANCING : MADAGASCAR : TRUST FUND FOR PROTECTED AREAS : AFD+ FFEM WITH WWF-CI-KFW CORAL INITIATIVE WITH WWF, CI, AND OTHERS CONGO BASIN FORESTS : A SPECIAL MOU FOR MONITORING, IMPROVING AFD STRATEGIES, IMPROVE OUR COMMON IFLUENCE KENYA : AFD WANTS TO WORK WITH WWF

21. Even more challenging ! 4. Consensus building through a sound economic analysis of the environment-development nexus : on climate : consensus on the causes and explanations; no consensus on impacts. on biodiversity : promising examples of work at the global level (ecoregions, hotspots, red list �) but no consensus on causes and impacts

22. Thank you

23. The French Global Environment Fund (FFEM) 106 projects, total amount of � 116 M � 17 M annual investment