Zenon Tederko Polish Society for the Protection of Birds & Pro-Biodiversity Service

1. Investing in biodiversity and maximising the benefits of the green economy Opportunities, constraints and requirements in development of pro-biodiversity business programme as contributing to a green economyGabala, 5-6 July 2010 Zenon Tederko Polish Society for the Protection of Birds & Pro-Biodiversity Service

2. Presentation outline • Introduction and reaching common language • Opportunities for pro-biodiversity business development • Constraints and barriers • Recommendations and conclusions

3. Introduction and reaching common language (1) Major Questions • Where is the biodiversity? • What biodiversity we are concerned with? • How we want to protect it?.. • How and where sustainable development takes place?

4. Introduction and reaching common language (2) Protected areas in Poland

5. Introduction and reaching common language (3) Majority of biodiversity is the subject to economic use !!! Where then sustainable development comes true? • Is Sustainable Development an abstract category ???? • If „development”, then it means economic processes !!! • SD takes place at lowest level – at farm, enterprise, household, individuals level!!!! • Sustainability level of development results from myriad of individual decisions !!! • If so, what are the key tools & instrument to influence such numerous decisions?

6. Introduction and reaching common language (4) CONVENTIONAL BUSINESS PRO-BIODIVERSITYBUSINESS RELEASE OF POLUTIONS SERVICES & BENEFITS FOR NATURE USE OF RESOURCES AND SERVICES SUSTAIN- ABLE USE OF RESOURCES AND SERVICES NATURAL ENVIRONMENT NATURAL ENVIRONMENT Relation between economy & nature

7. Introduction and reaching common language (5) ECONOMIC ACTIVITIES NON-COMMERCIAL COMMERCIAL FINANCING PUBLIC COMMERCIAL EU NATIONAL BUDGET LOCAL BUDGETS ENTERPR. IN KIND ENTERPR. IN CASH COMMER. N & I FI Commerciality of goods services flows

8. Definition of pro-biodiversity enterprise A pro-biodiversity enterprise is dependent on biodiversity for its core business and contributes to biodiversity conservation through that core business • Development strategy based on long term dependence on biodiversity and hence its protection • Dedicated to achieving both economic and biodiversity benefits • Primary, secondary and tertiary level of activities • Chain of custody • First of all – business, enterprise achieving income and realizing profit • Second – biodiversity opportunities and constraints = environmentally conditional -& has to deliver biodiversity benefits • Third – it s based on biodiversity and biodiversity is its indispensable component of a development strategy

9. Status and Opportunities (1) • Number and surface of high nature value areas, biodiversity status and richness, ecosystem services • Status of “pro-biodiversity sector” and objectives addressed to (what is now and what we want to achieve within the time deadline and budgets available) • Types and number of enterprises biodiversity/natural resources dependent • Existing and future pro-biodiversity businesses, intensified creation of new demanded businesses • Policy framework (EU policies and communications, SDS, Lisbon and Europe 2020 Strategies) • International commitments – Millennium Goals, Earth Summit Johannesburg, CBD Decisions • Enterprises tend to differentiate themselves upon environment and biodiversity concerns • People tend to value nature as determining quality of life and are more ready to pay for. • Promotion of “green business” and development of new jobs in rural areas. • High nature value areas management costs are reduced by growth of suitable SME business operations.

10. Status and Opportunities (2) As pro-biodiversity business is biodiversity based the major opportunity is the biodiversity itselfThe more biodiversity the more opportunity ! • Up to 25% of EU • 1 000 000 km2 • Over 25,000 sites • Unattainable annual management costs: €6 - €10 billion for EU27

11. Status and Opportunities (3) • A series of business sectors have been identified that use biodiversity as a resource • SMEs are active in all key ecosystems • Many SMEs use biodiversity as their primary resource • Many SMEs operate within Natura 2000 sites and protected areas

12. Status and Opportunities (4)

13. Status and Opportunities (5)

14. Size structure of potential PBBs in Poland Status and Opportunities (6)

15. Constraints and Barriers (1) • Pro-biodiversity business - is it a matter of choice or public strategy to effectively support/add the nature conservation sector? • Weak and ineffective enabling framework • Approach and behavior towards business, language and knowledge format • Lack of transparent set up – protection and management plans, lack of “business opportunity” plans, regional strategies, spatial development • Investment risk and uncertainty, unpredictable changes in policies, regulations and administrative/fiscal practices • Number and size of enterprises, scattered and remote distribution • Miscommunication of Natura 2000 - is often seen as being „bad for business and bad for development”.

16. Constraints and Barriers (2) • The lack of practical know-how within both the SMEs and the financial institution sector with regard to the potential of enterprise development in N2000 sites and the natural conditions affecting investment projects • The banking sector’s disregard of the market niches of SMEs that depend on natural resources and are located in high natural value areas • The high risk to investments caused by a lack of management plans for N2000 sites and a lack of protection plans for other areas • A lack of professional advisory services or tools for the identification and assessment of commercial investment projects in N2000 sites, which could ensure positive economic as well as nature outcomes • A lack of access to funding sources and suitable financial instruments as well as a lack of procedures that are friendly to SMEs

17. Preconditions and Requirements (1) • Supportive enabling framework and incentives • National/regional/local governments and self-governments have to want to develop green economy • Integration of sectoral policies and strategies on all levels • Integration of instruments and available resources within rural development policies/strategies • Time and costs effective EIA framework and procedures • Providing financial incentives for enterprises and farmers – grants, preferential loans/credits, micro-credits, loan insurance/guarantee schemes, green taxes, • Local governments/self-governments welcoming green investments by creating special pro-biodiversity economy zones, tax vacation zones, providing required information, feasibility studies, demand studies, laying infrastructure

18. Preconditions and Requirements (2) • Building on local/regional natural and cultural heritage • Using legal and certification framework of local/regional products • Developing local/regional business strategies and providing complete offer – goods and services • Purposeful efforts to creation or expansion of pro-biodiversity investments market niche • Specificity of pro-biodiversity entrepreneurship and building pro-biodiversity entrepreneurs • Knowledge transfer and technical assistance

19. Preconditions and Requirements (3) • Development framework - knowing where one can do what • Ecological network framework – ECONET, PEEN, Natura 2000 • Protection/management plans • Spatial development plans • Rural development plans • Ecosystem based approach, business opportunity plans followed by incentives system

20. Preconditions and Requirements (4) • Merging biodiversity and financial expertise • Using pool of existing information & knowledge • Providing biodiversity expertise in a format accessible for business • Using a bespoke methodology for identifying and prioritizing potential pro-biodiversity businesses • Innovative and visionary approach approach, financial mechanisms, creating clusters • Creating new type of innovative and knowledge based entrepreneur

21. Preconditions and Requirements (5) • Accessible and attractive preferential loans to SMEs for development of pro-biodiversity investments • Incentivised finance and technical support for banks • Advisory service providing technical assistance that connects SMEs, site managers and banks • Natura 2000 + PA management prescriptions from which investment criteria can be developed

22. Conclusions (1) • Innovative thinking much desired !!! • Variety of business opportunities and sustainable use options available • Need for involvement of pro-biodiversity small and medium enterprises (SMEs) • Meeting decisions and resolution on private business involvement into biodiversity protection

23. Conclusions (2) • SMEs are an essential element of rural economies and are key to long-term Natura 2000 & PA management. • Pro-biodiversity business activities help to implement and maintain Natura 2000 & PA. • Preferential SME loan facilities are proven to encourage specific desired business development. • Financial crisis is an opportunity to develop a highly transferable and innovative “green business stimulus” • EU 2013 – 2020 financial perspective should offer significantly more pro-biodiversity business development opportunities..

24. Conclusions (3) • Pro-biodiversity business is not a step back but challenge of the immediate future • It is innovative and knowledge based approach, hence well suiting objective of Europe 2020 strategy • It requires approach in terms and scale of rural development and consequently integrating policies and instruments of various sectors and policies • PBBs are not a domain of nature conservation only and reflect process if integrating biodiversity concerns into daily practices on enterprise and farm level

25. Conclusions (4) • Integration of biodiversity into sectoral policies and practices remains still much valid ……….but • Educating, motivating and empowering local decision makers and environment users at lowest level is equally important • In steadily deepening European democracy community based management is more important than ever before • Public-private partnership is a key word for „beyond 2010” • Supporting development of pro-biodiversity business is the tool to protect biodiversity beyond Protected Areas

26. What are the key SME business sectors?

29. Thank for your attention !!!