Home / Policy issues / Financing mechanisms

 

 Policy issues
 

 
 RELATED websites: 
 For more information on the project "Integrating Wetland Values into River Basin Management' please see:
www.waterandnature.org/v1.html

 
 For more information on economic instruments for natural resource management, please see:

 
 Economics and Environment at IUCN
www.iucn.org/themes/economics/intro.html

 
 Conservation Finance Alliance
www.conservationfinance.org

 
  
 
Economic instruments – financing and incentive mechanisms
This facet of the programme aims to support the development of economic instruments for more long-term sustainable management of aquatic resources at the demonstration sites. The focus is two-fold: one is to facilitate creation of economic incentives that reward and reinforce sustainable resource use behavior; the other is to encourage the development of financing mechanisms which can contribute to answering the needs of sustained, long-term funding for wetland management activities.

This component focuses on the demonstration site level, hence the wetland management issues to be addressed are ones identified as locally important. However, economic incentives and financing mechanisms need to be compatible with other local and national level influences in order to be successfully implemented. Hence, it is key to follow an integrated approach that incorporates results from other programme components, such as national level policy reviews and developing local level integrated resource management plans.

At each demonstration site, activities are undertaken for the quantification of the value of wetland goods and services and their distribution, analysis of economic causes of wetland degradation, identification of needs and niches for economic incentives and financing mechanisms.

In consultation with stakeholders, decision-makers, financial and economic strategies will be developed, drawing on valuation, distributional and policy analyses carried out at demonstration sites. These strategies will be proposed for integration into wetland management plans.

Case studies and policy briefs will be developed to report on environmental economic assessments and development of economic instruments for application at the demonstration sites. (This also contributes to on-going work by IUCN on environmental economic valuation and economic mechanisms for resource management. For more information, see http://www.waterandnature.org/value.html )

Initial programme activities have already commenced at the demonstration site in Stung Treng, Cambodia. At this site the focus is to investigate economic instruments to support community fishery management work undertaken by village community fishery committees. This work is co-financed by a wider DfID-funded IUCN project on Integrating Wetland Values into River Basin Management. The central aims of this project are:
i)identify wetland values in local livelihoods and economic causes of wetland loss; and
ii)apply valuation information to developing economic/financial mechanisms for wetland management to support more equitable and sustainable use of wetland resources within local livelihoods and in wider river basin management.