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A new lifeline for wildlife conservation finance – GEF
What do capital markets have to do with biodiversity? Until now, very little. This changed this week with the launch of a landmark Wildlife Conservation Bond or “rhino bond” that offers a payout linked to the protection of black rhinos, a critically endangered species whose health is essential to the ecosystems in which they live. The bond will support South Africa’s conservation of black rhinos in two of their strongholds in the country: the Addo Elephant National Park and the Great Fish River Nature Reserve.
Photo credit: nwdph/Shutterstock
The Wildlife Conservation Bond, issued by the World Bank with funding from the Global Environment Facility, is not just another financial product. It is a game-changing innovation that can direct funding to nature reserves and protected areas whose budgets have been stretched by the coronavirus pandemic, a drop in tourism, and recent fiscal strains.
While there is growing awareness about the need to protect wildlife for the health of the planet, most investment in nature today comes from national and sub-national governments and, to a lesser extent, from development banks, international NGOs, private foundations, and international agencies. Private sector actors, financial intermediaries, and institutional investors are absent. Large investors and financial institutions have largely avoided this space to date because of its risk/return profile. The business of protecting nature is long term and involves uncertainties that can be unfamiliar to investment managers. On top of it all, there is a perception that investments in nature may not be profitable.
The five-year rhino bond, which raised $150 million in its March 23, 2022 issuance, has changed this story. It is a combination of existing financial products – a bond with an excellent credit rating (AAA for World Bank issued bonds), paired with a performance-based grant funded by the GEF which results in a new financial structure that can successfully harness investment from capital markets to directly support endangered species conservation.
At the end of the life of the bond, investors will receive back the principal (by the safest type of issuer you can find) along with a variable payout depending on the rate of black rhino population growth in the two target areas in South Africa. That variable payout or success payment is financed by the GEF.
In the worst-case scenario, if the rhino population growth is flat or negative, investors will receive principal repayment at maturity, with no success payment. In the best-case scenario, if the rhino population grows above 4 percent, investors will receive the principal amount back and the success payment funded by the GEF. In intermediary outcomes, with population growth between 0 and 4 percent, the success payment will increase by fixed amounts over the life of the bond in a step-up fashion.
In all cases, the bondholders will be promoting efforts in biodiversity conservation. This is because, in exchange for the potential success payment at maturity, investors agree to forego the coupons a traditional World Bank Group bond would pay. Those foregone coupons are the source of financing for the conservation activities on the ground in the two parks selected for this project. These activities are designed not only to aim for black rhino population growth of at least 4 percent, but also to improve the management of over 150,000 hectares, reduce poaching and provide over 2,300 jobs for local communities in and around both protected areas – a welcome boost in a region severely impacted by COVID-19.
The bond issuance followed earlier work to identify suitable parks, explore the financial features of the bond, and establish the types of conservation activities that should be financed to meet the black rhino population growth goals. This product development phase work under the $4.5 million Rhino Impact Investment Project was funded by the GEF and led by UNDP in partnership with the Royal Foundation, the United Kingdom’s Illegal Wildlife Trade Challenge Fund, and the Zoological Society of London.
It also builds on the GEF’s support for other capital markets transactions, including the first sovereign blue bond issued by the Seychelles Government, issued in 2018 in collaboration with the World Bank to increase investment in marine protected areas and more sustainable fisheries. Another example is a project approved by the GEF Council in December 2021 to provide partial credit guarantees in collaboration with Corporacion Andina de Fomento for the issuance of two green bonds in the capital markets of Peru and Ecuador aimed at sustainable land use and biodiversity conservation in prioritized territories of the dry forests in these two countries.
These are among many efforts by the GEF to harness private sector financing for environmental protection through its Blended Finance initiative, also called the Non-Grant Instrument program, which aims to show how innovative finance can work to combat global environmental degradation.
The rhino bond is an example of how thinking out of the box and collaborating across institutions can result in an attractive investment opportunity that can be scaled for wide benefit. Donors can work jointly with financial institutions, corporates, or other entities with good credit ratings to package products that can achieve the risk/return profile needed for investors. Ultimately, this initiative could be replicated in other parks to protect additional rhino populations as well as other umbrella species whose threatened status is consequential for all of us.
Korup United, the Voluntary Association of ex-personnel of the Korup Project (1998-2003), is organizing a two-day Symposium October 31 - November 01, 2024, on Conservation and Sustainable Development in the Lower Guinea Congolian Forest Ecosystem. This event also commemorates the 38th Anniversary of the creation of the Korup National Park in October 1986 by Presidential Decree as the first rainforest IUCN Category II National Park in Cameroon.
Mrs Salina GRENET-CATALANO was appointed on July 5, 2024, by decrees of the Prime Minister and the Minister in charge of Europe and Foreign Affairs, the Director of Global Affairs of the Ministry of Europe and Foreign Affairs. It is in this light that she takes over Mr Christophe GUILHOU and becomes French’s new Co-facilitator for the Congo Basin Forest Partnership (CBFP).
PANGEA investigates variation between and within Earth’s two largest tropical forests in the Americas and Central Africa while integrating datasets and research from existing and complementary activities across the tropics. PANGEA’s research questions focus on five thematic areas, Biogeochemical Cycles; Biodiversity; Climate Interactions and Feedbacks; Social-Ecological Systems; and Disturbance Dynamics.
The Science Panel for the Congo Basin (SPCB) was launched on 3rd December 2023, at COP28 in Dubai. The SPCB is an independent platform for scientists from the region to synthesize the existing knowledge including Indigenous peoples and autochthonous knowledge, on the functioning of, and threats to, the Congo Basin and its ecosystems.
The DYNAFAC collective was created to develop common skills and technical and scientific complementarities. Its goal: to develop activities that will ultimately improve development plans and ensure better management of production forests in Central Africa.
The Congo Basin Science Initiative (CBSI) is an independent scientist-led platform that promotes long-term investment in science in the Congo Basin with a mission to transform our understanding of the world’s second largest extent of tropical forest, build scientific capacity in the region, and use this knowledge to support sustainable development.
In his book, "How to Avoid a Climate Disaster: The Solutions We Have and the Breakthroughs We Need,” Bill Gates singled out CGIAR centers, which have been at the forefront of supporting the world to feed itself through research including developing improved higher-yielding varieties of important staples such as maize and rice, as doing work that is “indispensable in creating new climate-smart crops and livestock for the world’s poor farmers.”
The PANGEA Scoping Campaign had a strong presence at the 20th Meeting of the Parties of the Congo Basin Forest Partnership from May 31 – June 5, 2024 in Kinshasa, DRC. The conference exchanges between civil servants, scientists, and philanthropic organizations in the Congo Basin provided a special opportunity to address the need for strengthening collaborative partnerships in the region and pan-tropically.
The CBFP and the coordination of the Western Bloc are pleased to invite you to a face-to-face exchange session, to be held on Friday 4 October from 8:00 to 10:00 at the Hôtel de l'Amitié, in N'Djamena, on the occasion of the conference on pastoralism and protected areas. The event will provide an opportunity to reflect on how the CBFP can continue to lead discussions on the most topical issues in the sub-region.
The Conference aims at: Presenting the state of knowledge on the causes and consequences of tensions between agropastoral activities and protected areas within the Sahelian and Sudano-Guinean ecosystems; Reviewing the modes of governance and technical innovations making it possible to better manage the interface zones between agropastoral areas and protected areas, in order to promote the sustainable development of agropastoral territories...
After a series of broken silence procedures in the lead-up to the Summit, the Summit of the Future (SOF) opened under a cloud of uncertainty when the Russian Federation made a last-minute proposal for an amendment to the outcome document. However, following a quick voting round, delegates adopted the Summit’s negotiated outcome, the Pact for the Future, and its two annexes: the Global Digital Compact and the Declaration of Future Generations. The rest of the day then proceeded largely as planned, with general statements by high-level representatives taking place in parallel with two interactive dialogues on the Summit’s themes.
The Summit of the Future opened with some drama when the Russian Federation tabled its objection to several paragraphs in the outcome documents: the Pact for the Future, the Global Digital Compact, and Declaration on Future Generations. In the end, after months of negotiations, the Pact was adopted. UN General Assembly (UNGA) President Philémon Yang thanked the Co-Facilitators for steering a complex negotiating process and described the just-adopted Pact as a reflection of “our pledge” to lay the foundation for a sustainable, inclusive, and peaceful global order.
The Central African Biodiversity Working Group adopts common views for COP-16 at the CBD and related meetings at the end of their 38 meeting held from September 9 to 13, 2024 in Brazzaville. The Central African Biodiversity Working Group held its thirty-eighth meeting (GTBAC-38) from September 9 to 13, 2024 in Brazzaville, the Republic of Congo. These meetings organised by the Executive Secretariat of the Central African Forests Commission (COMIFAC) with technical and financial support from the GIZ Regional Support Project to COMIFAC, brought together members of the GTBAC.
President of the UN General Assembly (UNGA) Philemon Yang has made available an updated programme of the Summit of the Future (SoF), along with a logistics note, an announcement of the co-chairs for the interactive dialogues to take place during the Summit, and lists of speakers for the interactive dialogues. The SoF is taking place in New York, US, from 22-23 September 2024.
New York, 10 September 2024 – Philémon Yang, former Prime Minister of the Republic of Cameroon, took office today as President of the 79th session of the UN General Assembly at a time when the urgent need to strengthen multilateralism respond to new and emerging challenges is increasingly acute. The theme of President Yang’s mandate is “Unity in diversity, for the advancement of peace, sustainable development and human dignity for everyone, everywhere”. His priorities range from boosting gender equality, advancing multilingualism to combatting terrorism. Under his leadership, efforts will focus on fostering more effective collaboration and finding effective solutions to global challenges.
On 10 September 2024, the UN General Assembly (UNGA) closed its 78th session. Addressing the Assembly for the last time as its President, Dennis Francis (Trinidad and Tobago) underscored the important role of the multilateral system in overcoming complex challenges. Philemon Yang (Cameroon), President-elect of the 79th session of the UNGA, subsequently took an oath of office, pledging to perform his duties “in all loyalty, discretion and conscience.” This was followed by the opening of the Assembly’s 79th session.
07 September, Abidjan - African Environment Ministers meeting in Abidjan have called for the establishment of a legally binding protocol on drought management under the UN Convention to Combat Desertification (UNCCD), with a special focus on Africa. The call for action comes amid growing concerns over the detrimental impact of land degradation, drought and desertification on the continent’s socio-economic stability, food security, and environmental sustainability.
A search was carried out using Google Scholar and Scopus (for the period 2000-2023) and official reports (from the inscription of the site until 2024) submitted by countries on the state of conservation of natural UNESCO World Heritage sites in Africa. The scientific literature does not sufficiently address the determinants of armed conflicts affecting African Natural World Heritage sites or the connections between the quality of governance of Protected Areas and the emergence and/ or resolution of armed conflicts. Understanding the origins and foundations of these armed conflicts requires an in-depth analysis of several determinants linked to the existence of these protected areas and an assessment of the effectiveness of the governance systems, which is rarely available.
Abidjan, 3–6 September 2024 : Leveraging financing and partnerships for combating drought, land degradation and desertification in Africa The note available to dowload explores the critical role of financing and partnerships in addressing the interrelated challenges of drought, land degradation, and desertification in Africa.
Bonn / Laramie, 4 September 2024 - Today, a groundbreaking online map was launched showing the migration paths of land animals around the world. An international team of over 80 scientists has collaborated to create the first-ever interactive migration map of hooved mammals such as antelopes, guanacos and zebras, that routinely travel large distances at different times in the year. Such animals are collectively called “ungulates".
The African Forest Forum (AFF) in collaboration with the Food and Agriculture Organization of the United Nations (FAO)’s Regional office for Africa, is organizing a three-week Community of Practice (CoP) on “Climate Change in African Forestry and Wildlife Sectors”. The CoP will be held from9 - 27 September 2024, from 12:00 noon - 3.00 pm Nairobi time/ 9:00 am -12.00 noon GMT., via Howspace – a virtual ‘African Forestry Community’ platform – for knowledge sharing and learning.
To prepare the next post-Malabo plan, the ECCAS Regional Economic Community (REC), in partnership with AU, and the Feed the Future Policy LINK Program organized regional stakeholder consultations for the Central Africa region. The participants at the consultation were: the CAADP focal points and government representatives of different countries, as well as private sector and non-state actor representatives from the seven ECCAS Member States. Please download the report...
The tenth special session of the African Ministerial Conference on the Environment (AMCEN) and the United Nations Convention to Combat Desertification (UNCCD) regional consultations will be held in Abidjan, Côte d'Ivoire, from 30 August to 6 September 2024, under the theme “Raising Africa’s Ambition to Reduce Land Degradation, Desertification, and Drought.” The theme underscores the critical need to address the current state of land degradation in the region and restore this vital resource.
Rome – A new roadmap guiding the work of the Food and Agriculture Organization of the United Nations (FAO) on forests was endorsed on Wednesday by members at the 27th Session of the Committee on Forestry (COFO 27) in Rome. The FAO Forestry Roadmap - From Vision to Action 2024-2031 sets out how FAO will work to enhance the role forests play in meeting forestry-related goals and targets and in addressing global challenges in coming years.
In recent years, the international community and countries in central Africa have developed various initiatives and programmes to halt biodiversity and natural resource degradation, and to address challenges to sustainable development in forest ecosystems.
At the 26th IUFRO World Congress in Stockholm from 23-29 June 2024, the booth hosted by the Scientific and Academic College of the Congo Basin Forest Partnership (CBFP) provided an opportunity for Crispin Ilunga-Mulala Mushagalusa, a PhD student at the University of Liège (Gembloux Agro-Bio Tech), to present his research as part of the UFA - Reforest project (Reforestation in the Forest Management Units of Cameroon).
This study addresses the need to explore the attitude and perception of local residents toward wildlife and conservation. Questionnaires, surveys and field observations were used in data collection. A total of 400 people was conveniently selected in 16 villages from October to December 2015. Data analysis relied mainly on factor analysis and structural equation modelling in SPSS 21 and Smart-PLS software.
The objective of this side event on 4 June 2024 was move away from rapid conflict mitigation and prevention towards to holistic and integrated coexistence programs between human and forest elephants in rainforest of the Congo Basin.
The theme for International Youth Day 2024 (12 August) is “From Clicks to Progress: Youth Digital Pathways for Sustainable Development.” This theme highlights the key connection between digitalization and accelerating the progress of the Sustainable Development Goals (SDGs), emphasizing the crucial contributions of young people in this transformative process.
On 23 December 1994, the United Nations General Assembly decided, in its resolution 49/214, that the International Day of the World’s Indigenous People shall be observed on 9 August every year. The date marks the first meeting, in 1982, of the UN Working Group on Indigenous Populations. The International Day observance will take place online on Friday, 9 August 2024. This year’s theme is: Protecting the rights of Indigenous Peoples in Voluntary Isolation and Initial Contact.
CBFP, which is one of the oldest Type 2 partnerships in the United Nations system, registered in the ECOSOC and UN DESA partnerships, and strengthened in SDG 17, is calling on its partners to make the conclusions of the High-Level Political Forum for Sustainable Development their own... the call is crystallised in advocacy for Strengthen the means of implementation and revitalize the global partnership with diverse stakeholders for sustainable developmen. In Fact, Partnerships are the glue for SDG implementation and is been essential to making the Agenda a reality.
This hybrid event aims to set the stage for the 2025 IYC, which will be officially launched during the ICA Global Cooperative Conference, scheduled for November 25-29, 2024, in New Delhi, India. The New York event will serve as a platform to deepen the theme of IYC2025, unveil the media package, discuss the UN resolutions outlining the modalities for the IYC launch.
Side event organized by the Sustainable Wildlife Management Programme on the 04/06 from 8h30 to 9h30 am. United Nations member states are committed to reducing hunger, improving health, and conserving natural resources through the Sustainable Development Goals. Additionally, the Kunming-Montreal Global Biodiversity Framework aims to conserve 30% of terrestrial and marine areas by 2030, promoting sustainable wildlife management and equitable benefits. However, in Central Africa, the unsustainable wild meat trade threatens food security and biodiversity, making these goals challenging to achieve.
The Sustainable Wildlife Management (SWM) Programme presented its innovative Legal Hub at the recent 20th Meeting of Parties (MoP20) of the Congo Basin Forest Partnership. This event was held in Kinshasa, Democratic Republic of the Congo (DRC), from 3 to 5 June, 2024. A specific side-event titled "A Tool to Connect Different Sources of Law" showcased the Legal Hub’s critical role in enhancing the legal frameworks governing wildlife management across multiple countries, including the sub-region.
In this 20th meeting, the consortium comprising the International Institute of Tropical Agriculture (IITA), RIKOLTO, and the Catholic University of Bukavu (UCB) actively participated in the sessions held from June 3 to 5, 2024, at the Pullman Hotel in Kinshasa. During a panel focused on agroforestry and agribusiness, the consortium presented solutions for sustainable and effective land management around the Itombwe Reserve and the Kahuzi-Biega National Park through two main themes...