Better coastal protection thanks to efficient management: first time results-based disbursements for biodiversity protection
Press Release from 2019-09-02 / Group, KfW Development Bank
- EUR 10 million for 17 protected marine areas along Honduran coasts
- Support dependent on achieving targets
- Very important for fish stocks and tourism
On behalf of the German Ministry for Economic Cooperation and Development (BMZ), KfW signed agreements with the Honduran Institute for Protected Areas ICF (Instituto Nacional de Conversación y Desarollo Forestal, Áreas Protegidas y Vida Silvestre) for the nature conservation project Life Web. The project will support the ICF's effectiveness in managing the conservation of coral reefs, lagoon systems, mangrove and rain forests, sandy beaches, seagrass beds and coastal forests in 17 Caribbean protected marine areas with EUR 10 million. These areas are very important economically speaking because they are a habitat for many fish stocks and can also be used for tourism. They also protect the coasts from the energy of tropical storms.
Insufficient human and financial resources often hinder the implementation of nature conservation projects. For the first time, the future disbursements of a Financial Cooperation (FC) project will be linked to results-based payments. In order to obtain additional funding, measurable indicators and targets for the protected areas must be achieved.
"Protecting the last bulwark to preserve the Caribbean ecosystem is of paramount importance. The innovative approach of results-based disbursements for biodiversity conservation introduced for the first time in Financial Cooperation creates incentives for more effective coastal protection," says Dr Joachim Nagel, Member of KfW Group's Executive Board.
The second payment will only be made at the end of 2021 if at least 70% of the targets set during planning have been achieved. The same applies to the third payment at the end of 2022. In addition, the average effectiveness of management also has to increase progressively so that further payments can be made.
In addition to the sustainable management of natural resources, Life Web also ensures that living conditions in rural areas improve and mitigates climate risks. This makes the project particularly relevant for the UN's sustainability development goals of reducing inequality (10), combating climate change (13), conserving the oceans (14) and protecting and sustainably managing terrestrial ecosystems and forests (15).