Strengthening Empowerment

10. Financing Coastal Conservation
Identifying sustainable financing mechanisms for coastal ecosystem conservation

Coastal management activities are mainly funded by national government budgets and donor programmes or development assistance which often have limitations in both their magnitude and scope. Public sector budgets are often inadequate and donor-funded projects and programmes are usually short-term and tied to particular government or donor priorities. However, it is still key to maintain these financial flows but to tackle some of the overriding obstacles to effective coastal management we need to find mechanisms to supplement these conventional funding sources. We also need to identify more sustainable and flexible sources of funding which can be used to maintain coastal management activities once they have been initiated. Funding at the local community and site level to promote investment in coastal ecosystems and sustainable livelihoods should be a priority. Funds for coastal management interventions are available from many sources, including charitable or philanthropic contributions, partnerships with the private sector, fiscal instruments (including taxes and subsidies), market-based mechanisms (such as payment for environmental services and user charges), and through funds raised locally. MFF seeks to find innovative and sustainable funding mechanisms, especially through local level interventions.

This programme of work carries out actions to generate the following outputs:

10.1 Review of innovative andsustainable funding mechanisms which have applicability to coastal areas and coastal management actions.

10.2 Development of materials on the economic return to investing in coastal ecosystems as infrastructure, and associated awareness campaign for decision-makers who determine and allocate government budget allocations and overseas development assistance.

10.3 Piloting of payment for ecosystem services schemes for selected coastal ecosystems and management programmes, based on private-public-community partnerships.

10.4 Review of the needs and opportunities for a regional trust fund for coastal ecosystem management, leading to recommendations for development if appropriate.10.5 Development and implementation of long-term sustainable financing strategies for key MFF actions, paying particular attention to actions aimed at protected area management, coastal ecosystem rehabilitation, and community sustainable livelihood activities.