Innovative financing and legal mechanisms for reef restoration and emergency response in selected sites of the MAR Region
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1 Innovative financing and legal mechanisms for reef restoration and emergency response in selected sites of the MAR Region Mesoamerican Reef Rescue Initiative Mesoamerican Reef Fund 32nd ICRI General Meeting Nairobi December, 2017
2 The Mesoamerican Reef: A local treasure, a global resource Largest reef in the Atlantic Ocean Over 1000 km of coastline Four countries: Mexico, Belize, Guatemala, Honduras Biologically diverse Economic importance for local communities and development of the four countries
3 MAR Fund, a long-term financial mechanism Designed to raise and distribute funds at a regional scale Complementary funds Additional to national funds Endowment and sinking funds Effective regional funding mechanism Responds to the needs of the region
4 Mesoamerican Reef Rescue Initiative Donor: German Cooperation through KfW (endowment) Grant: 7 million Implementer: Mesoamerican Reef Fund (MAR Fund) and Central American Commission on Environment and Development (CCAD) Technical Committee: México, Belize, Guatemala and Honduras
5 Mesoamerican Reef Rescue Initiative Objective To increase the resilience and ability to recover of the MAR and the environmental and cultural services it provides through capacity building, regulations, economic incentives and financial sustainability required for the effective and timely restoration of the coral reefs.
6 Four key strategies : 1. Ensure sustainable long-term funding for continuous and emergency restoration q Emergency Fund q Insurance mechanism 2. Support and develop reef restoration 3. Develop alternative sources of income 4. Promote commitment of governments towards policies and regulations
7 Project proposal ICRI/UN Environment
8 Primary Objective: Contribute to the conservation of the Mesoamerican Reef by enabling innovative financing and legal mechanisms to restore coral reefs after hurricane damage Specific objectives 1. Design and establish a parametric insurance model to cover the cost of coral reef restoration after damages caused by hurricanes 2. Promote adequate legislation along the four countries 1. Establish emergency response protocols 2. Establish effective reef restoration guidelines.
9 OB1: Design and establish a parametric insurance model to cover the cost of coral reef restoration after damages caused by hurricanes. Designing an insurance for reefs (main steps and key questions) 1. Decision on: compensatory or parametric insurance a. Compensation costs are hard to assess and take time, and are subject to litigation. b. A parametric insurance is a pre-agreed payout based on parameters or triggers c. Insurance to cover the costs of emergency response & restoration actions
10 Outcome: A financing mechanism to improve emergency response actions and restoration of key sites in the MAR Region has been established. Terms of coverage designed Restoration costs and payout estimated Risk assessment and vulnerability analysis for coral reef ecosystems developed Key sites for insurance cover prioritized and characterized
11 Parameters (triggers) and the Box (Catastrophe in the box) The characteristics of a hurricane that relate better with damages caused to the reefs (e.g. surge, wind speed, duration of event, etc.) Define an area(s) within which a hurricane, if it passes thru, would damage the reef of interest. A hurricane with the defined characteristics passing thru the box triggers the insurance.
12 Outcome: Regional and national frameworks to facilitate emergency response and coral reef restoration have been strengthened. Outcome: Participatory sciencebased adaptive rapid response interventions and restoration techniques have been developed Share and discuss results of legal analysis and recommendations (CCAD) Recommendations for building and adopting regional protocols and new financial mechanism Reef restoration guidelines designed Rapid response protocol designed Legal analysis by country in the MAR region completed
13 Strategic Alliances 1. The Nature Conservancy à model Puerto Morelos National Park, Mexico. 2. Central American Commission on Environment and Development CCAD- 3. RRI Technical Committee Mexico, Belize, Guatemala and Honduras, 4. Reef Restoration Network (MAR) Development of baseline: 1. GIS baseline for vulnerable reefs, key site identification. 2. Legal analysis (restoration, permits, rapid response intervention).
14 Impacts 1. Increase information about risks to corals 2. Increase information on insurance for natural assets 3. Preparedness 4. Helps to mitigate risk 5. Immediate funds for rapid response and restoration 6. Leverage funds for conservation 7. Increase coastal resilience
15 Regional opportunities: The Declaration of Tulum creates a logical framework under which the four MAR country governments can work together to take action needed to advance restoration of the Reef.
16 Thank you twitter.com/mar_fund
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