2. Energy, Travel and TourismSession MS. RILI DJOHANI Session Moderator

3. For the benefit of the group, Ms. Djohani presented the goals of the RPOA on MPAs Why give focus to MPAs? Biophysical results known and provide incentives for EBM/ICM – more fish in MPAs; presented success stories in Romodo Natiaonal Park in Indonesia, in Gilutungan, Cebu Main strategies to effectively manage MPAs: surveillance, constituency building, alternative livelihoods, monitoring and research, ecotourism MPAs cannot succeed as islands SUMMARY

4. SUMMARY • Mr. Benjamin Kahn of APEX Environmental discussed the global boom of oil and gas worldwide and that the industry is basically share-price driven. • Emphasized that planning and discussions on initiatives should be discussed at least 1 to 2 years in advance – oil and gas programs undergo specific phases which include: exploration, construction, actual extraction and decommission. • Very important for the oil and gas industry to engage in coastal management – once development is started there is no “turning back” on its impacts on the environment. • Mentioned that APEX works with the IMO in regard to regulations on shipping • Oil and Gas projects within the CT: in PNG, Java, Kalimantan, Sabah.

5. SUMMARY • Ms. Patricia Gallardo gave a background of Shangri-La hotels worldwide. Lot of greening is on the hardware and going back to basic resource management. • Opening hotels means displacing biodiversity. Cant stop development because there is market to serve, so need to curtail negative impacts. • Emphasized that in every crisis there is an opportunity to do something better. • Active in KK, worked closely with people, restore dignity to the people, • Shangri La recognized that they cannot do coral gardening by themselves, hence, utilized communities – partner with them. Started in Fiji and replicated in Maldives, Muskat and other areas; source hotel materials locally; encouraged the use of biodegradable materials; have architecture of hotels certified • CSR structure considers stakeholder relations, environment, supply chain, health and safety, and employees. • Shangri-La’s CSR was from the realization that ____

6. Statement of Commitment

7. Statement of Commitment

8. Key Challenges Shangri La Cost of Luxury vs Cost of Going Green Staff & Guests Mindsets (Expectation) vs. Brand Promise and Value Older properties & retrofitting “Black” Supply Chain Overall Resource Management: Lack of infrastructure Political Will/ Industry Incentives Apex Shipping: Industry should consider and come up with a Spill-Risk and Spill Management Plan – oil spill is very difficult to contain

9. Current Developments/Initiatives Shangri-La Green Design Standards for future projects – limit energy use; CO emissions; water use; and, solid waste Room and Food and Beverage Amenities – eco-friendly options Greener supply chain as differentiator Food waste redux Promotion of eco- products Support of sanctuaries e.g. Gilutungan in Cebu Conservation projects with local communities Green meeting packages APEX On Introduced Species: Shipping industry deals with the issue by doing regular flushing of ballast water every 48 hours On Coastal mining: submarine tailing disposal are deposited into the ocean floor, up to 60 tons per day over a period of 24 hours are deposited

10. Issues Shangri-La: Biodiversity as a finite business Greenwashing vs Greenhushing (Hotels have to consider profits, conservation and the locals at the same time consider ecotourism) Apex: Shipping – increase in traffic within the CT thereby increasing the risk of oil spills. (e.g. in Australia there is currently a US$43B oil and gas investment) Introduced species: export of invasive species to other parts of the world Coastal mining: submarine tailing disposal

11. Opportunities

12. Question and Answer QUESTION: (Mr. Fahrier, WWF representative) How will the additional measures required still allow for profitable margins? As cost will increase, what is your view on incentives for developers? Recommended that on financing opportunities, there is tremendous source of financing opportunities at the local government levels as well as access to multi-lateral banks. Answer: Some sealanes overlap with migratory routes of whales and dolphins, APEX resolves the issue by engaging with the IMO – which deals with shipping regulations and provides the industry with a framework for coastal management. Local ferries posed a problem as some do not adhere to international traffic regulations On buffering costs – there is green banking system that offsets efforts for the environment; Costs are already included in every program; there are best practices that can be introduced to the CT region

13. Question and Answer • QUESTION: (Ms. ___from Indonesia) Question on alternative energy program; issues on waste in some islands and how to reduce and maintain the disposal of the waste • Answer: It is site-specific and project-specific; it is basically the operators’ decision • QUESTION: (Mr. Ecko from Indonesia): Question on competition of area between industry and the small-scale fisherman. • Answer: early engagement is critical; compensation for the fisherman should be considered and part of the discussions during the early engagement; APEX have sophisticated technology but it is a room for government to introduce regulations. • QUESTION: (Dir. Mundita Lim of the Phils) On environmental services – additional investment for the environment. How receptive is the industry in case government will ? • Answer: Governments need to answer where the fees will go; what are the incentives for the private sector; the value of the industry’s reputation is highly considered that they will buy-in to the government policy.

14. State of Affairs • Tremendous growth & progress posing crisis but also OPPORTUNITIES • Some success pilots for MPAs /CSR exist • Government lacks programs and incentives for the private sector • Basic information on the CTI (baseline) unavailable • All efforts are ad hoc, need for common system

15. Challenges • Local Government systems not supported sustainably (eg Solomon Is.); needing successful model to follow • No Government incentives for eco-tourism/construction • Lack of Education of broad stakeholder base; lack of education re CTI especially for private sector • Archipelagic nature of CTI a deterrent for working together • Infrastructure • Local Transport & Fishing Fleets uncoordinated with international standards

16. Opportunities for PPP • Cookie-cutter good practices, models (how to get local government funding, how to do alternative livelihoods for fishermen, Train the Trainers program) • More Dialogue between government and the private sector • Liaising with existing regional cooperation initiatives eg BMPEAGA on tourism and eco-tourism

17. Sector Communique • Create investments across 6 countries for sustainable development • Incentives to be promoted and uniformly implemented across the CT countries (tax levies, subsidies, eco investments) • Guidelines for PPP Framework e.g. regional MPA fund • Benchmarks/Measures of success for business as well as markets/tourists or the greater public (‘learning destinations’) • Engage IMO in systemizing structures • Early engagement of oil & gas industries • Info/ Training/ Mgt Skills transfer to local partners/ communities • Urge organizations involve in offshore oil, gas and countries where they operated to adopt international best practice to minimize impacts on marine ecosystems • Encourage all CTI states to strengthen national legislation and compliance and where necessary enact new laws to sustainably manage marine habitats within their EEz