Trinidad and Tobago, April 2012

1. Financing Mechanisms for Sustainable Land Management and Combat Desertification Trinidad and Tobago, April 2012

2. Forests and forestry in Small Island Developing States • As a group, SIDS possess extensive forests. However, due to a considerable variation in land area, population density and climatic, geological and topographical conditions, the extent of forest cover differs greatly among the island states.  • According to FAO, forest cover ranges from 76 to 96% of the total land area in some SIDS to under 10% in many of the smaller island states and zero percent in Bahrain and Malta.  • Among the island states with a land area of less than 50,000 km2, the combined forest cover was estimated at 38.4% of the total land area in 2000, whereas the world average was 29.6%.

3. Forests and forestry in Small Island Developing States • The annual rates of deforestation from 1990 to 2000, ranging from 2.1 to 5.7% The main causes of deforestation include conversion of forests into agricultural land and infrastructure development. • But in other SIDS the rates of forest degradation are due to heavy exploitation of timber resources. Forest degradation due to natural causes (e.g. cyclones and forest fires) • Some SIDS registered a positive change in forest cover from 1990 to 2000, mainly as a result of afforestation efforts.  • Forests and trees in Small Island Developing States contribute directly and indirectly to food security by providing forest products.

4. Forests and forestry in Small Island Developing States • Income and employment provided by forestry and forest-related activities give people in rural communities the opportunity to purchase food and other basic necessities. • Forested watersheds provide soil and water conservation, benefiting downstream agricultural areas. Windbreaks and shelterbelts provide shade and shelter for agricultural crops and animals and reduce soil erosion. • Mangroves and other coastal forests protect coastal areas against the effects of strong winds, storm surges and salt spray, and provide nutrients for the marine food web. • Forests also act as reservoirs of biological diversity; many of the foods consumed today originated as wild crops in forests and genetic improvement of agricultural crops has much to gain from existing wild species.

5. The twin challenge of SFM and SLM • Land degradation, which includes both desertification and deforestation, is a worldwide phenomenon that severely affects the poorest rural communities. • Sustainable Land Management (SLM) aims to reduce and reverse land degradation. It means managing land without damaging ecological processes or reducing biological diversity. • Sustainable Forest Management (SFM) aims to use of forests and forest land in a way that keep the balance between society's increasing demands for forest products and benefits, and the preservation of forest health and diversity.

6. The twin challenge of SFM and SLM • Similar answers to combat deforestation, degradation of natural resources desertification are found: • Sustainable Forest Management (SFM) • Sustainable Land Management (SLM) • But also the same challenges • Integration in the National Development Programmes and Strategies, • Mobilization of funding at all levels of intervention (local, national, sub-regional, regional and global)

7. Global processes related to SFM & SLM UNCCD • International Convention • 10 year Strategy • Subregional Action Programmes • National Action Programmes UNFF • Non-Legally Binding Instrument on All Types of Forests • Multi Year Program of Work • National Forest Programmes Financing Mechanisms • Lack of funding (UNFF 8 – UNCCD COP 10) • Weak implementation of the SRAP, NAP, MYPOW, etc.

8. The changing face of international development • Global consensus and changing resource allocation modalities for development and poverty reduction, demand new approaches and strategies to support affected country Parties’ resource mobilization efforts. • Donors have developed new policies and instruments for allocating resources to promote the national development priorities defined in country development frameworks. • Financial instruments involved (direct budget support, co-financing arrangements and sector-wide approaches); • Country leadership and country-driven identification of development priorities; and • Harmonization of aid and alignment of donors’ and international finance institutions’ priorities with those of recipient countries.

9. The Global Mechanism of the UNCCD • WHAT?? Mandate: Increase the effectiveness and efficiency of existing financial mechanisms [and] to promote actions leading to the mobilization and channelling of substantial financial resources [for activities pursuant to relevant provisions of the UNCCD] (article 21 of the UNCCD). • WHERE?? Level of implementation: Global, Subregional and National. • HOW?? Integrated Financial Strategies and Integrated Financial Frameworks • TO WHO?? National Focal Point Authorities and related SLM CCD Stakeholders.

10. Integrated Financing Strategy IFS • The IFS seeks to use existing sources and instruments more efficiently and to mobilize new and additional resources, through the creation of an enabling environment. • The driving factors for IFS development include: • cross-sectoral nature of SLM, including forest-related issues • fact that land degradation requires longer term engagement rather than individual short term projects • institutional framework; • need for harmonized and streamlined approach for SLM financing; • emerging aid modalities, in particular budget support and programme based approaches; and • need to upscale resource mobilization for SLM.

11. Developing and implementing an IFS Developing and implementing the IFS is a long-term process, the IFS process flow usually consists of the following: • Preparatory phase • Mobilize stakeholders • Strengthen coordination / consultation • Define a common vision SLM • Analytical phase • Context of financing for SLM (political and institutional framework) • Sources, mechanisms and funding instruments • Enabling measures for resource mobilization • Phase of implementation • Elaboration and implementation of an action plan • Establishment of an integrated investment framework

12. Opportunities and Constraints in mobilizing resources for SLM Opportunities • Framework strategic/policy in place (international, regional, sub-regional, national) • Multitude of sources, traditional instruments and mechanisms (national and international levels) • Innovative financing mechanisms (climate change, trade/private sector, microfinance) Constraints • Not taking into account the SLM as a national priority • Low consultation and coordination framework • Non suitable Legal/institutional framework • Low knowledge of existing funding sources, instruments and mechanisms

13. Sources, Instruments and Financing Mechanisms Internal • National budget • National special funds • Private sector investments • Local budgets External • Bilateral cooperation • Multilateral cooperation • Other external sources (ODA, South-South, Foundations, NGO’s) Innovative • Market-based Instruments • Taxes • Funds related to the Climate Change, REDD+ • Microfinance

14. Entry points to mobilize resources for SLM Constraints • Not taking into account the SLM as a national priority • Low consultation and coordination framework • Non suitable Legal/institutional framework • Low knowledge of existing funding sources, instruments and mechanisms Action points • Integrate SLM among the national priorities • Identify sources and funding mechanisms (national and international) • Identify and analyze innovative funding mechanisms • Strengthen consultation and coordination at all levels • Strengthen the legal and institutional framework • Participate in political debates to raise additional funding

15. Lessons learned • The real challenge is the integration of SLM in the national/political processes • The financial context is as important as the financial resources (coordination – conciliation) • IFS development/ implementation a long process • Lack of financing not always the issue: enabling environment key for resource mobilisation • Challenge to develop projects and programmes that cuts across sectors • One source of funding may not be enough, sometimes more than one source is the solution • ‘First door’ of finance: domestic budgets and national investments

16. Thank you! The Global Mechanism Alejandro Jacques a.jacques@global-mechanism.org UNCCD Secretariat Heitor Matallo hmatallo@unccd.int