This book critically engages with how the conservation of tropical coral reefs is financed. Beginning with the context of tropical coral reef degradation and loss, alongside an overview of tropical ecology, global environmental policy and finance, the book reviews several conservation financing instruments. These include ecotourism, debt-for-nature swaps, impact investments, and government domestic budgetary expenditures.
From the Great Barrier Reef, to the Coral Triangle, to the Mesoamerican Reef, tropical coral reef degradation and loss are serious global environmental issues, contributing to loss revenue and food insecurity for coastal communities, and species extinction. Yet, many leading companies, individuals, and governments are making a positive impact on tropical coral reef conservation through the use of conservation finance.
Conservation of Tropical Coral Reefs, using 30 case studies which span 23 countries and 6 continents, tells the history of international conservation finance and provides a variety of options for individuals, businesses, and governments to support conservation financing projects.
Author(s): Brian Joseph McFarland
Publisher: Palgrave Macmillan
Year: 2021
Language: English
Pages: 728
City: Cham
Foreword
Preface
Acknowledgments
Timeline
Contents
About the Author
Acronyms
List of Figures
List of Tables
1 Executive Summary
2 The Context of Coral Reef Degradation and Loss
Where Are the World’s Coral Reefs?
Where Is Coral Reef Degradation and Loss Occurring Today?
Global Climate Change
Ocean Acidification
Natural Disasters
Pollution Runoff
Plastics
Overfishing
Noise Pollution
Disease
Invasive Species
High-Human Traffic
Why Are Coral Reefs Valuable?
Provisioning Services
Regulating Services
Habitat or Supporting Services
Cultural Services
Other Resources on the Context of Coral Reef Degradation and Loss
Resources on Global Climate Change, Bleaching and Ocean Acidification
Resources on Fishing
Resources on Plastics and Pollution
Resources on Related Topics
3 Coral Reef Ecology
Introduction
Ecosystem Diversity
Species Diversity
Genetic Diversity
Connectivity to Seascapes
Other Resources on Coral Reef Ecology
4 Global Environmental Policy
Introduction
Local Policies
Federal Policies
Bilateral, Multilateral, and Regional Policies
International Policies
Law of the Sea Treaty
Paris Agreement
Convention on Biological Diversity
Ramsar Convention
Sustainable Development Goals
Other International Policies
Company Policies
Dates of Global Environmental Policy
Dates When Government Institutions Were Established
Other Resources on Global Environmental Policy
5 International Finance
Introduction
Capital Markets
Equities and Bonds
Short-Term and Long-Term Debt
Insurance
Conservation Trust Funds
Currencies
Interest Rates
Project Finance
Public Finance
Trade Finance
Financial Intermediaries
Cash Flows
Conservation Finance
Financial Frameworks
Efficient Frontier
Financial Risk Management
Portfolio Management: Risk, Return, Time (Horizon), Tax, Liquidity, Legal and Unique
Other Resources on International Finance
6 The Origins and History of Coral Reef Conservation Finance
Other Resources on the Origins and History of Coral Reef Conservation Finance
7 Government Domestic Budgetary Expenditures
Introduction
Mechanisms of Instrument
Size of Instrument
Introduction to Case Studies
Case Study #1: Australia’s Great Barrier Reef Marine Park
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources on the Great Barrier Reef
Case Study #2: Papahānaumokuākea Marine National Monument
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Case Study #3: The Chagos Archipelago
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources for the Chagos Archipelago
Financial Analysis
Return
Risk
Business Risk
Strategic Risk
Reputation Risk
Liquidity Risk
Operational Risk
Legal and Regulatory Risk
Credit Risk
Market Risk
Risk, Return, Time (Horizon), Taxes, Liquidity, Legal and Unique (RRTTLLU)
Risk and Return
Time Horizon
Taxes
Liquidity
Legal
Unique
Policy Analysis
Defining the Problem
Establishing Goals
Selecting a Policy
Implementing a Policy
Evaluating the Policy
Future Outlook for Instrument
Other Resources on Government Domestic Budgetary Expenditures
8 Conservation Easements
Introduction
Historical Overview
Mechanisms of Instrument
Size of Instrument
Introduction to Case Studies
Case Study #1: The Palmyra Atoll Purchase
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources on the Palmyra Atoll Purchase
Case Study #2: The Phoenix Islands Protected Area Conservation Trust
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources on the Phoenix Islands Protected Area Conservation Trust
Case Study #3: The Pez Maya Land Purchase
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources on Pez Maya Land Purchase
Case Study #4: Chumbe Island Coral Park Ltd.
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources on Chumbe Island Coral Park Ltd.
Financial Analysis
Return
Risk
Business Risk
Strategic Risk
Reputation Risk
Liquidity Risk
Operational Risk
Legal and Regulatory Risk
Credit Risk
Market Risk
Risk, Return, Time (Horizon), Taxes, Liquidity, Legal and Unique (RRTTLLU)
Risk and Return
Time Horizon
Taxes
Liquidity
Legal
Unique
Policy Analysis
Defining the Problem
Establishing Goals
Selecting a Policy
Implementing a Policy
Evaluating the Policy
Future Outlook for Instrument
Other Resources on Conservation Easements
9 Government International Budgetary Allocations
Introduction
Historical Overview
Mechanisms of Instrument
Size of Instrument
Introduction to Case Studies
Case Study #1: The Marine and Coastal Protected Areas Project of Brazil
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources on the Marine and Coastal Protected Areas Project of Brazil
Case Study #2: Binational Red Sea Marine Peace Park Between Jordan and Israel
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources on the Binational Red Sea Marine Peace Park Between Jordan and Israel
Case Study #3: Mesoamerican Reef Fund
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources on Mesoamerican Reef Fund
Financial Analysis
Return
Risk
Business Risk
Strategic Risk
Reputation Risk
Liquidity Risk
Operational Risk
Legal and Regulatory Risk
Credit Risk
Market Risk
Risk, Return, Time (Horizon), Taxes, Liquidity, Legal, and Unique (RRTTLLU)
Risk and Return
Time Horizon
Taxes
Liquidity
Legal
Unique
Policy Analysis
Defining the Problem
Establishing Goals
Selecting a Policy
Implementing a Policy
Evaluating the Policy
Future Outlook for Instrument
Other Resources on Government International Budgetary Allocations
10 Impact Investing
Introduction
Historical Overview
Mechanisms of Instrument
Size of Instrument
Introduction to Case Studies
Case Study #1: Mirova’s Althelia Sustainable Ocean Fund
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources on Althelia Sustainable Ocean Fund
Case Study #2: Parametric Insurance for the Mesoamerican Reef
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources on Parametric Insurance for the Mesoamerican Reef
Case Study #3: Arrecifes Del Sureste Marine Sanctuary of the Dominican Republic
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources on the Arrecifes Del Sureste Marine Sanctuary
Financial Analysis
Return
Risk
Business Risk
Strategic Risk
Reputation Risk
Liquidity Risk
Operational Risk
Legal and Regulatory Risk
Credit Risk
Market Risk
Risk, Return, Time (Horizon), Taxes, Liquidity, Legal, and Unique (RRTTLLU)
Risk and Return
Time Horizon
Taxes
Liquidity
Legal
Unique
Policy Analysis
Defining the Problem
Establishing Goals
Selecting a Policy
Implementing a Policy
Evaluating the Policy
Future Outlook for Instrument
Other Resources on Impact Investing
11 Payments for Ecosystem Services
Introduction
Historical Overview
Mechanisms of Instrument
Biodiversity Offsets
Watershed Payments
The Mechanisms of Developing Forest Carbon Projects
Size of Instrument
Biodiversity Offsets
Watershed Payments
Forest Carbon
Introduction to Case Studies
Case Study #1: Reef Credit Initiative
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources on the Reef Credit Initiative
Financial Analysis
Return
Risk
Business Risk
Strategic Risk
Reputation Risk
Liquidity Risk
Operational Risk
Legal and Regulatory Risk
Credit Risk
Market Risk
Risk, Return, Time (Horizon), Taxes, Liquidity, Legal, and Unique (RRTTLLU)
Risk and Return
Time Horizon
Taxes
Liquidity
Legal
Unique
Policy Analysis
Defining the Problem
Establishing Goals
Selecting a Policy
Implementing a Policy
Evaluating the Policy
Future Outlook for Instrument
Other Resources on Payments for Ecosystem Services
12 Ecotourism
Introduction
Historical Overview
Mechanisms of Instrument
Size of Instrument
Introduction to Case Studies
Case Study #1: The Galápagos Islands
Introduction
Identify Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources on the Galápagos Islands
Case Study #2: Ecotourism in Belize
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources on Ecotourism in Belize
Case Study #3: Bonaire National Marine Park
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources on Bonaire
Case Study #4: Palau National Marine Sanctuary
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources on Palau National Marine Sanctuary
Case Study #5: Lady Elliot Island
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources on Lady Elliot Island
Financial Analysis
Return
Risk
Business Risk
Strategic Risk
Reputation Risk
Liquidity Risk
Operational Risk
Legal and Regulatory Risk
Credit Risk
Market Risk
Risk, Return, Time (Horizon), Taxes, Liquidity, Legal, and Unique (RRTTLLU)
Risk and Return
Time Horizon
Taxes
Liquidity
Legal
Unique
Policy Analysis
Defining the Problem
Establishing Goals
Selecting a Policy
Implementing a Policy
Evaluating the Policy
Future Outlook for Instrument
Other Resources on Ecotourism
13 Debt Conversions
Introduction
Historical Overview
Mechanisms of Instrument
Size of Instrument
Introduction to Case Studies
Case Study #1: Seychelles’ Climate Adaptation and Impact Investment Debt Swap
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources for Seychelles’ Climate Adaptation and Impact Investment Debt Swap
Case Study #2: Debt-for-Nature Swaps in the Philippines
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources for Debt-for-Nature Swaps in the Philippines
Case Study #3: Jamaica Debt-for-Nature Swap and the Environmental Foundation of Jamaica
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources for Jamaica Debt-for-Nature Swap and the Environmental Foundation of Jamaica
Financial Analysis
Return
Risk
Business Risk
Strategic Risk
Reputation Risk
Liquidity Risk
Operational Risk
Legal and Regulatory Risk
Credit Risk
Market Risk
Risk, Return, Time (Horizon), Taxes, Liquidity, Legal, and Unique (RRTTLLU)
Risk and Return
Time Horizon
Taxes
Liquidity
Legal
Unique
Policy Analysis
Defining the Problem
Establishing Goals
Selecting a Policy
Implementing a Policy
Evaluating the Policy
Future Outlook for Instrument
Other Resources on Debt-for-Nature Conversions
14 Blue Procurement Models
Introduction
Historical Overview
Mechanisms of Instrument
Size of Instrument
Aquaculture Stewardship Council (ASC)
Marine Aquarium Trade
Marine Stewardship Council (MSC)
Introduction to Case Studies
Case Study #1: LINI’s Sustainable Ornamental Fish Aquaculture
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources for LINI’s Sustainable Ornamental Fish Aquaculture
Case Study #2: Western Australia’s MSC-Certified Rock Lobster Fishery
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources for Western Australia’s MSC-Certified Rock Lobster Fishery
Case Study #3: Rare’s Fish Forever Work in the Philippines and Indonesia
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources for Rare’s Fish Forever Work in the Philippines and Indonesia
Case Study #4: Blue Ventures’ Work with Locally Managed Marine Areas in Madagascar
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources for Blue Ventures’ Work with Locally Managed Marine Areas in Madagascar
Financial Analysis
Return
Risk
Business Risk
Strategic Risk
Reputation Risk
Liquidity Risk
Operational Risk
Legal and Regulatory Risk
Credit Risk
Market Risk
Risk, Return, Time (Horizon), Taxes, Liquidity, Legal and Unique (RRTTLLU)
Risk and Return
Time Horizon
Taxes
Liquidity
Legal
Unique
Policy Analysis
Defining the Problem
Establishing Goals
Selecting a Policy
Implementing a Policy
Evaluating the Policy
Future Outlook for Instrument
Other Resources on Blue Procurement Models
15 Blue Bonds and Seascape Bonds
Introduction
Historical Overview
Mechanisms of Instrument
Development Impact Bonds (DIBs)
Social Impact Bond (SIBs)
Environmental Impact Bonds (EIBs)
Size of Instrument
Introduction to Case Study
Case Study #1: The Seychelles’ Blue Bond
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources on the Seychelles’ Blue Bond
Financial Analysis
Return
Risk
Business Risk
Strategic Risk
Reputation Risk
Liquidity Risk
Operational Risk
Legal and Regulatory Risk
Credit Risk
Market Risk
Risk, Return, Time (Horizon), Taxes, Liquidity, Legal and Unique (RRTTLLU)
Risk and Return
Time Horizon
Taxes
Liquidity
Legal
Unique
Policy Analysis
Defining the Problem
Establishing Goals
Selecting a Policy
Implementing a Policy
Evaluating the Policy
Future Outlook for Instrument
Other Resources on Blue Bonds and Seascape Bonds
16 Additional Solutions
Introduction
Historical Overview
Mechanisms of Instrument
Introduction to Case Studies
Case Study #1: Bureo’s Reuse of Discarded Fishing Nets
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources on Bureo
Case Study #2: Coral Restoration Foundation™, the World’s Largest Restoration Program
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources on Coral Restoration Foundation™
Case Study #3: Coral Vita, the World’s Largest, Land-Based Coral Restoration Initiative
Introduction
Identify the Problem
Why the Problem Is Important
How Problem Was Identified
Effectiveness of Process for Identifying Problem
Steps Taken to Address the Problem
Results
Challenges and How They Were Met
Beyond Results
Lessons Learned
Other Resources on Coral Vita
Future Outlook for Instrument
Other Resources on Additional Solutions
17 The Future of Coral Reef Conservation Finance
Clean Up Plastic Pollution and Reduce Plastic Usage
Protect Adjacent Land
Restoration of Degraded Areas
Utilize Technology
Mitigation of Global Climate Change
Conservation of Large Seascapes
Investable, Scalable Projects for the Private Sector
Develop New Financing Structures
Public Funds Used to Leverage Private Financing
Education, Reduced Public Apathy, and the Next Generation Inspired
Develop a New Economic System that Values Natural Capital
Environmental Justice
Effective Public Policies
Other Resources
18 Concluding Thoughts About Conservation Finance
Epilogue By Peter Gash
Bibliography
Index
