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AT USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY THE BUSINESS OF BIOTRADE: DU NN AAT NT CC NE TT ER AA DN DD TE USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY THE BUSINESS OF BIOTRADE: York Geneva, 201 Note material contained publication freely quoted reprinted, acknowledgement requested, reference document number. copy publication quotation reprint UNCTAD Secretariat, : Palais des Nations, 1211 Geneva 10, Switzerland. designations employed presentation material imply expression position whatsoever part United Nations Secretariat legal status country, territory, city area, authorities, delimitation frontiers boundaries, economic system degree development. views expressed publication authors necessarily reflect views United Nations Secretariat. information UNCTAD’ BioTrade Initiative consult website: http://unctad.org/ biotrade, contact: biotrade@unctad.org. UNCTAD/DITC/BCC/2009/4 UNITED NATIONS PUBLICATION Copyright © United Nations, 2014 rights reserved Acknowledgements publication prepared Marion Klein,1 Lorena Jaramillo Castro2 Francis Vorhies.3 document developed support Swiss Federal Office Environment (FOEN). document developed project funded Swiss Federal Office Environment (FOEN). United Nations Conference Trade Development (UNCTAD) acknowledges contributions received BioTrade national programmes Plurinational State Bolivia Ecuador - metic Valley, Fondo Biocomercio Colombia, Funbio, Nativa Colombia, Jambi Kiwa Union Ethical BioTrade (UEBT). , publication benefited inputs support Jean-Luc Ansel, Lucas Assunçã, John Bejarano, Maria Helena Cendales, Yves Darricau, Jose André íaz, Eduardo Escobedo, Caroline Feltesse, Henry Kisu, Rik Kutsch Lojenga, ábio Leite, Lalen Lleander, Alfonso Llobet Querejazu, Cyril Lombard, James Muhumuza, Nontokozo Nemarundwe, Luz Helena Nuñez Ruiz, Maria Julia Oliva, Nancy ánchez, Gustavo Urrea Richard Vaca. publication edited Vivien Stone support Yvonne Paredes Maria Durleva UNCTAD secretariat. iii Contents Note .................................................................................................................................................... ii Acknowledgements .............................................................................................................................. ii Acronyms ............................................................................................................................................. Executive summary ................................................................................................................................ vii 1. INTRODUCTION TO BIOTRADE ............................................................................... 1 1.1 BioTrade Principles ..................................................................................................................................... 1 1.2 BioTrade Initiative ................................................................................................................................. 1 1.3 mandate BioTrade .......................................................................................................................... 1 2. ENGAGING BUSINESS IN CONSERVING BIODIVERSITY ............................................. 3 2.1 Underlying biodiversity loss ......................................................................................................... 3 2.2 case promoting engagement -public actors .......................................................................... 4 3. INCENTIVE MEASURES FOR BIODIVERSITY ............................................................. 5 3.1 Incentives biodiversity-related conventions ..................................................................................... 5 3.1.1 CBD incentive measures ........................................................................................................... 5 3.1.2 CITES incentives -detrimental trade ................................................................................ 5 3.1.3 Ramsar incentive measures ....................................................................................................... 5 3.1.4 UNCCD incentive measures ...................................................................................................... 6 3.2 Types incentive measures BioTrade .................................................................................................. 6 3.2.1 chain approach ....................................................................................................................... 6 3.2.2 Sustainable livelihoods approach ..................................................................................................... 6 3.2.3 incentive measure framework BioTrade.................................................................................. 6 4. BIOTRADE CASE STUDIES ..................................................................................... 9 4.1 Nativa Cosmetic Valley ......................................................................................................................... 9 4.1.1 Nativa – BioTrade sector association ............................................................................................. 9 4.1.2 Cosmetic Valley – BioTrade chain partner ............................................................................. 9 4.1.3 Nativa Cosmetic Valley – BioTrade partnership ..................................................................... 10 4.1.4 Incentive measures generated partnership .................................................................. 11 4.1.5 Lessons learned partnership ............................................................................................ 11 4.2 PhytoTrade Africa ..................................................................................................................................... 11 4.2.1 Development incentive measures ............................................................................................... 11 4.2.2 Approach market social incentives ...................................................................................... 12 4.2.3 Market incentives support market development ............................................................. 12 4.2.4 Social incentives supply chain development ...................................................................... 13 4.3 TreeCrops PhytoTrade Africa .............................................................................................................. 14 4.3.1 Overview ........................................................................................................................................ 14 4.3.2 Expansion formal employment sustainable baobab trade ....................................................... 14 4.3.3 Incentive measures sustainable .......................................................................................... 15 4.3.4 Lessons learned ............................................................................................................................. 16 4.4 Fondo Biocomercio .................................................................................................................................. 17 4.4.1 Overview ........................................................................................................................................ 17 4.4.2 Applying Fund ...................................................................................................................... 17 4.4.3 Generating financial incentives ....................................................................................................... 18 4.4.4 Lessons learned ............................................................................................................................. 19 Contents iv THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY 4.5 Bolivian BioTrade Caiman yacare ....................................................................................................... 20 4.5.1 CITES-listed Caiman yacare Plurinational State Bolivia ............................................... 20 4.5.2 Bolivian BioTrade Caiman yacare chain .................................................................... 20 4.5.3 Incentive measures ........................................................................................................................ 21 4.5.4 Lessons learned key drivers .................................................................................................... 22 4.5.5 BioTrade sustainable measure CITES species ............................................................. 22 4.6 Jambi Kiwa ............................................................................................................................................... 23 4.6.1 medicinal plants producers association Ecuador ..................................................................... 23 4.6.2 Incentive measures ........................................................................................................................ 23 4.6.3 Lessons learned ............................................................................................................................. 25 4.7 Union Ethical BioTrade ................................................................................................................. 26 4.7.1 Differentiating ethical sourcing biodiversity ............................................................................ 26 4.7.2 private sector association Ethical BioTrade ..................................................................... 27 4.7.3 Ethical BioTrade verification system................................................................................................ 27 4.7.4 UEBT incentive measure – private sector views .................................................................... 29 4.7.5 Conclusion ..................................................................................................................................... 30 4.8 Funbio ..................................................................................................................................................... 30 4.8.1 Overview ........................................................................................................................................ 30 4.8.2 Funbio’ learning process ............................................................................................................... 30 4.8.3 Scaling ...................................................................................................................................... 31 4.8.4 Organizing small-scale business ..................................................................................................... 33 4.8.5 Incentive measures ........................................................................................................................ 33 4.8.6 Lessons learned ............................................................................................................................. 34 5. BIOTRADE INCENTIVE MEASURES ....................................................................... 35 5.1 Market incentives ...................................................................................................................................... 35 5.1.1 Market access support .................................................................................................................. 35 5.1.2 Market differentiation ...................................................................................................................... 37 5.2 Social incentives ....................................................................................................................................... 37 5.2.1 Strengthen skills, knowledge abilities....................................................................................... 38 5.2.2 Strengthening social capital ............................................................................................................ 38 5.3 Financial incentives ................................................................................................................................... 40 5.4 Physical incentives .................................................................................................................................... 40 6. CONCLUDING REMARKS .................................................................................... 41 6.1 BioTrade incentive measures framework .................................................................................. 41 6.1.1 Innovative partnerships – Nativa Cosmetic Valley..................................................................... 41 6.1.2 Ensuring sustainable supply – PhytoTrade Africa ............................................................................ 41 6.1.3 Integrated marketing strategies – TreeCrops .................................................................................. 41 6.1.4 Direct financial support – Fondo Biocomercio................................................................................. 42 6.1.5 Trading CITES-listed species – Bolivian BioTrade ........................................................................... 42 6.1.6 Community-based BioTrade – Jambi Kiwa ..................................................................................... 42 6.1.7 Verifying promoting BioTrade – UEBT ...................................................................................... 42 6.1.8 Innovative financial support – Funbio.............................................................................................. 42 6.2 steps .................................................................................................................................. 43 References ................................................................................................................................................ 45 Notes ........................................................................................................................................................ 48 Acronyms ABC Associació Boliviana de Conservació (Bolivian Conservation Association) ARPA Amazon Region Protected Area BACP Biodiversity Agriculture Commodities Programme B2B business--business CBD Convention Biological Diversity CBI Centre Promotion Imports developing countries CITES Convention International Trade Endangered Species Wild Fauna Flora Conference Parties CPIB Central de Pueblos Indígenas del Beni (Representative Organization Indigenous Peoples Beni) CSD Commission Sustainable Development DFID Department International Development (United Kingdom Great Britain Northern Ireland) FTD fixed-term deposit EU European Union FLO Fairtrade Labelling Organization International FOEN Swiss Federal Office Environment FSC Forest Stewardship Council GACP good agriculture collection practices GEF Global Environmental Facility GMP good manufacturing practices GMO genetically modified organism GRAS Generally Recognized Safe (United States Food Drug Administration) ICS internal control system IFC International Finance Corporation IFOAM International Federation Organic Agricultural Movements IPBES Intergovernmental Platform Biodiversity Ecosystems ISEAL International Social Environmental Accreditation Labelling Alliance IUCN International Union Conservation Nature MDG Millennium Development Goal MEA multilateral environmental agreement MNC multinational corporation MMA Brazilian Environmental Ministry NGO -governmental organization NP natural product NTB -tariff barrier NTFP -timber forest product OBIO National BioTrade Observatory (Colombia) PNBSE Sustainable BioTrade Programme Ecuador PAPS Sustainable Production Support Program PPP public private partnerships PQS pre-qualified supplier REDD Reducing Emissions Deforestation Forest Degradation RedLAC Latin American Caribbean Network Environmental Funds SAN Sustainable Agriculture Network SMEs small medium-sized enterprise UEBT Union Ethical BioTrade TCO Tierras Comunitarias de Origen (Original Community Lands) Acronyms vi THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY UNCCD United Nations Convention Combat Desertification UNCTAD United Nations Conference Trade Development UNEP United Nations Environment Programme UNIDO United Nations Industrial Development Organization WSSD World Summit Sustainable Development WTO World Trade Organization vii Executive summary BioTrade refers collection, production, transfor- mation commercialization goods services derived native biodiversity (species ecosys- tems) criteria environmental, social economic sustainability. give complete meaning concept, United Nations Confer- ence Trade Development (UNCTAD) – international partners practitioners country level – defined BioTrade Principles. - gether, principles provide integrated frame- work addressing objectives CBD (Convention Biological Diversity), biodiversity-related multilateral environmental agree- ments (MEAs) broader context sustainable development responsible business. BioTrade Initiative derives mandate primarily UNCTAD’ Programmes/Substantive Agenda,4 trade-related aspects CBD, specifically Article 10 ( sustainable components bio- diversity) Article 11 (social economic incen- tive measures conserving biodiversity), biodiversity-related MEAs. Specifically, respect CBD, decisions CoP9 (ninth session Conference Parties CBD) – Decision IX/6 incentive measures Decision IX/26 promoting business engagement – provide direct mandate work UNCTAD Bio- Trade Initiative including informational paper. reinforces decisions VIII/26 incentive mea- sures VIII/17 private sector engagement. Decision IX/6 incentive measures, : “Invites BioTrade Initiative … continue work trade promotion biodiversity-based products produced sustainable manner compatible objectives - vention… capacity-building, enhancing market access, promoting enabling environments engaging relevant public private actors.” Decision IX/26 promoting business en- gagement, CoP9 concluded “priority area” “build promote business case bio- diversity.” includes request biodiversity community : “Continue compilation dissemination information business case biodiversity, including experiences generated framework UNCTAD BioTrade Initiative, clearing-house mechanism, CBD newsletter business, mainstream business forums.” background UNCTAD drafted informational paper, formed basis international workshop BioTrade incentives mea- sures United Nations Office Geneva, Switzer- land 24 November 2009. informational paper explores efforts BioTrade Initiative provide incentives busi- ness conserve biodiversity biologi- cal resources sustainably responsibly. review assessment distinct case studies, identifies actual, practical, bottom- incentives generated BioTrade partners practitioners. turn, workshop reviewed framework paper assessments case studies. proposed recommendations steps support implementation CBD. BioTrade incentives framework BioTrade Initiative focuses positive incentive measures – direct indirect – relevant pri- vate actors. BioTrade perspective, approach incentive measures inter-related ways: putting people chain actors centre, approaches provide strategic framework classifying incentives engage pri- vate actors conservation sustainable biodiversity. context, BioTrade incentive mea- sures classified : Market incentives: access markets differ- entiation products markets. Social incentives: enhancement human capi- tal (.. skills, knowledge abilities) social capital (.. supportive cohesive environment fosters adoption sustainable practices chain). Financial incentives: facilitation access fi- nance financial compensation sustainable practices. Physical incentives: enhancement production facilities, access equipment transport. Property rights: access rights , manage biodiversity resources defined public measures. Fiscal incentives: budgetary measures taxes subsidies ( addressed Executive summary viii THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY paper governmental mea- sures). BioTrade case studies case studies presented differ greatly, demonstrates BioTrade activities generating variety practical, focused incentives encourage conservation biodiversity sus- tainable biological resources. cases : Caiman yacare (Plurinational State (Brazil). case studies validate UNCTAD Bio- Trade Initiative partners – supporting trade positive incentive measure biodiversity - servation – addressing policy environment, supply capacity market access issues interven- tion strategy targets variety problems dif- ferent levels. 11. Introduction BioTrade 1. INTRODUCTION TO BIOTRADE BioTrade refers collection, production, transfor- mation, commercialization goods services derived native biodiversity (species ecosys- tems) criteria environmental, social economic sustainability. 1.1 BioTrade Principles give fuller meaning concept, UNCTAD, - gether international partners practitioners country level, defined BioTrade principles. principles provide integrated framework addressing objectives CBD broader context sustainable development - sponsible business. BioTrade principles : Principle 1 Conservation biodiversity Principle 2 Sustainable biodiversity Principle 3 Fair equitable sharing benefits derived biodiversity Principle 4 Socio-economic sustainability (productive, financial market management) Principle 5 Compliance national international regulations Principle 6 Respect rights actors involved BioTrade activities Principle 7 Clarity land tenure, access natural resources knowledge principles elaborated set BioTrade criteria5 developed facilitate private sector engagement BioTrade. 1.2 BioTrade Initiative BioTrade Initiative launched UNCTAD 1996 support implementation CBD promotion sustainable responsible trade biological resources. , UNCTAD BioTrade Initiative established partnerships number national regional organizations de- velop BioTrade programmes Africa, Asia Latin America.6 worked Europe facilitate import BioTrade products developing coun- . BioTrade Initiative partners focused efforts trade specific biodiversity-based goods services, including: Arapaima gigas - essential oils, natural dyes, soaps, creams skin cereal, grains, tubers, nuts, cocoa, fish products, jams, sweets snacks, jellies, pulps juices, spices sauces, teas infusions, food - - cals – extracts infusions medicinal plants, - toise, . 1.3 mandate BioTrade BioTrade Initiative derives mandate primarily UNCTAD’ Programmes/Substantive Agenda7 trade-related aspects CBD, spe- cifically Article 10 sustainable - ponents biodiversity Article 11 social economic incentive measures conserve biodiversity. initiative responds call UN - mission Sustainable Development (CSD) creation “incentive measures national, regional international levels stimulate conservation sustainable biological diversity improve functioning markets enhancing devel- oping countries’ capabilities compete emerging markets biological resources.” , initiative addresses stressed UN’ Millennium Development Goals (MDGs) plan action 2002 World Summit Sus- tainable Development (WSSD). include reconcile goals environmental sustainability, including biodiversity loss, developmental dependency millions poor bio- logical resources. BioTrade Initiative works objectives biodiversity-related conventions Convention International Trade Endangered Species Wild Fauna Flora (CITES), Ramsar Convention Wetlands 2 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY UN Convention Combat Desertification (UNCCD). inclusion Reducing Emissions De- forestation Forest Degradation (REDD) Bali Road Map (2007) climate negotiations, support REDD programmes developing countries, ways relate BioTrade activities climate- friendly policies, , strengthening local economic activities forest buffer zones, explored. conventions provide multilateral framework developing promoting BioTrade. CBD Decisions IX/15 IX/26 ( incentive measures promoting business engage- ment ), BioTrade Initiative including informational paper gains direct mandate work. mandate fortifies Decisions VIII/26 incentive measures VIII/17 private sector engagement. Decision IX/6 incentive measures, : “Invites BioTrade Initiative… continue work trade promotion biodiversity-based products produced sustainable manner compatible objectives - vention… capacity-building, enhancing market access, promoting enabling environments engaging relevant public private actors.” reference Decision IX/26 promoting busi- ness engagement, CoP9 concluded “prior- ity area” “build promote business case biodiversity.” includes request biodiversity community : “Continue compilation dissemination information business case biodiversity, including experiences generated framework UNCTAD BioTrade Initiative, clearing-house mechanism, CBD newsletter business, mainstream business forums.” informational paper contribution de- cisions. reports efforts initiative partners work issues related incentive measures business engagement. , 2006 table organized representatives private companies devel- oping developed countries interested bringing products market social environmental responsibility.8 November 2009, table organized participants private sector, including BioTrade private actors, CBD focal points, CBD secretariat, represen- tatives biodiversity-related MEAs. workshop created platform share experiences, challenges opportunities engagement private sector conservation sustainable bio- diversity. paper explores efforts BioTrade Initiative provide incentives business - serve biodiversity biological resources sustainably responsibly. review - sessment case studies, paper identifies ac- tual practical, bottom- incentives generated BioTrade partners practitioners. 32. Engaging business conserving biodiversity 2. ENGAGING BUSINESS IN CONSERVING BIODIVERSITY 2.1 Underlying biodiversity loss Biodiversity loss continues today efforts policy makers, conservation -governmental orga- nizations (NGOs) responsible businesses safeguard biodiversity. main continued lack information knowledge economic biodiversity divergence private social interests. Benefits ac- tivities destroy biodiversity short term, direct easily captured individuals. hand, benefits activities conserve biodiversity long term, indirect spread . drivers destroy biodiversity overpower drivers conserve . fact magnified lack reliable straightforward indicators estimate gains biodiversity conservation sustainable . factors “failures” explain divergence short-term private gain long-term social gain. motivate businesses engage biodiversity conservation practices, failures addressed: Market failure: wide range failures lack markets imperfections structures processes surrounding markets, distortions inefficiencies.9 Information failure: decision makers “insufficient facts, tools, arguments support” sound decisions avoid biodiversity loss.10 Policy failure ( intervention failure): linked concept perverse incentives encourage biodiversity harming practices, insuf- ficient rewards adoption sustainable prac- tices. Lack secured property rights: individu- als legal rights lands live work, sufficient incentives manage resources sustainable man- ner. Awareness failure: observed physical condition biodiversity deterioration present, impacts acknowl- edged .11 Social behavioural factors: lack political economic power stakeholders small-scale producers, women indigenous people, dependent biodi- versity services affected biodiversity degrada- tion.12 Population growth: additional stresses eco- systems species caused rapid population growth, migration increased urbanization. failures underlying biodiversity loss, range policy responses, relevance Bio- Trade approach. policy responses13 include : market failures: address externalities remove market barriers biodiversity products. information failures: invest generation bio-physical, economic social information - gage inform stakeholders involved indirectly conservation sustainable biodiversity. awareness failures: invest dissemina- tion information impacts biodiversity depletion. policy failures: remove reform adverse subsidies, including -cost pricing resource concessions free infrastructure provision. lack secured property rights: estab- lish define property land rights, stable incomes long-term planning. lack political economic pow- er stakeholders: empower build capacities groups dependent biodiversity goods ecosystem services. population growth: strengthen human capital reduce migration creation eco- nomic opportunities ecological-economic zon- ing, . array policy responses, clear opportunities engaging business activi- ties conserve biodiversity. challenge de- sign mix policy responses engage encourage private actors, including suppliers, produc- ers, traders consumers. discussed - formational paper, BioTrade Initiative focuses subset responses practical, direct bottom- incentives conserve biodiver- sity. 4 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY 2.2 case promoting engagement -public actors purpose paper, -public actors defined part economy, run essen- tially profit supporting actors . include companies, business sector associations, private funds, private foundations, community-based organizations, indigenous people’ organizations, NGOs (.. BioTrade.) array - ganizations referred -public actors. Importantly, underlying biodi- versity loss linked indirectly lack effective engagement -public actors. noted , pay actors engage sustainable practices market, policy institutional failures. respect, businesses suffer missing markets lack adequate reward efforts adopt sustainable practices. Biodiversity loss direct impact business- es closely connected dependent sustainable supply biological resources. Fur- thermore, great number -public actors affected biodiversity loss – .. poor people, women indigenous communities – lack political economic power contribute bio- diversity conservation decision-making. International national biodiversity decision-mak- ers aware challenges faced -public actors. , incentives sus- tainable biodiversity address , challenges motivations actors chain promote engagement.14 Bio- Trade Initiative engages -public actors, business sector , develop promote set practical incentive measures encourage businesses conserve bio- diversity. 53. Incentive measures biodiversity 3. INCENTIVE MEASURES FOR BIODIVERSITY CBD’ Proposals Design Implementa- tion Incentive Measures15 states incentive measure “change institutional individual behaviour order achieve part … objectives Convention…” , incentives address underlying biodiversity degra- dation loss, motivate stakeholders engage responsible sustainable practices. 3.1 Incentives biodiversity- related conventions biodiversity-related conventions – indirectly – recognize important role incen- tives meeting objectives. -section summarizes incentives work key biodiver- sity-related conventions, mentions crosscut- ting work BioTrade providing incentives private sector engagement biodiversity conservation. 3.1.1 CBD incentive measures Article 11 CBD stresses important party “adopt economically socially sound measures act incentives conservation sustainable components biological di- versity.” respect, CBD COP policy guidance - ternational programme work developed support implementation Article 11. cur- rent work incentive measures focuses dis- semination practices, highlighted Decision IX/6. decision states enhance “sharing () information good practic- es, lessons learned, difficulties encountered practical experience (CBD’) implementation, assessments, studies, analyses capacity building.” UNCTAD BioTrade Initiative recognized partner implementation CBD COP decisions incentive measures (Decisions VIII/26 IX/6). time, BioTrade contribut- ed related work implemented biodiversity- related conventions. 3.1.2 CITES incentives -detrimental trade relation / CITES Convention eco- nomic incentives, technical workshop held December 2003 led adoption Decisions 13.76 13.77 2004. CoP14, impor- tance work incentive measures reaf- firmed measures regular discussion topic CITES CoPs.16 Decisions 14.42 14.47 provide framework work incentives implementation convention: Decision 14.42: “Parties develop incentive measures effective implementation Convention encouraged include relevant de- tails biennial reports.” Decision 14.43: “Parties encouraged - sider adoption standard operating proce- dures complete formalities required trade CITES-listed species efficient manner. Man- agement Authorities encouraged liaise national ministries agencies responsible regulation promotion exports imports countries benefit expertise support offer area.” Decision 14.44: “ Parties prac- tical ways enhance stakeholder engagement implementation Convention (.. pro- moting good practices codes conduct facilitate work CITES authorities, - duce time-frames completion CITES pro- cedures enhance role private sector intelligence gathering identify prosecute illegal traders).” context, UNCTAD BioTrade Initiative recognized partner “ ensure conserva- tion wild species subject international trade promote private sector compliance CITES - quirements national legislation” (Decision 14.46). 3.1.3 Ramsar incentive measures Ramsar Convention Wetlands, fol- lowing resolutions strategic plans address incen- tives: Resolution VIII.23 (2002) incentive mea- sures tools achieving wise wetlands: urges parties develop supportive le- gal policy frameworks design implementation incentive measures, tool achieve conservation wise wetlands.17 Strategy 1.11 Ramsar’ Strategic Plan 2009–2015: “incentive measures encourage application wise provisions Convention” promoted. 2015, - centive measures designed 6 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY implemented parties positive perverse incentives affecting wetlands monitored assessed.18 3.1.4 UNCCD incentive measures explicit mention incentive measures text UNCCD limited work date. instance, CoP8 Decision VIII/1 2007 “invites developing countries develop en- abling environment sustainable land management integrated water management, includes economic measures, accordance international law, coordination sectoral policies, consistent national policies.” , concept “sustainable land man- agement” central work programme UNCCD closely aligned “ecosystem approach” CBD. regard, incentive mea- sures important role play UNCCD CBD. BioTrade incentive measures, , address private sector en- gagement manage ecosystems landscapes sus- tainably, including, , sustainable wild harvesting medicinal aromatic dryland plants. 3.2 Types incentive measures BioTrade Incentive measures classified number ways. CBD classified basic categories:19 Direct positive incentive measures “eco- nomic, legal institutional measures designed encourage beneficial activities” conservation sustainable biodiversity. Indirect positive incentive measures “change relative costs benefits specific activities indirect . Trading mechanisms insti- tutional arrangements create improve markets biological resources, encouraging conser- vation sustainable biological diversity.” Negative incentive measures disincentives “designed discourage activities harmful biodiversity” pollution taxes, logging penalties trade ban schemes. BioTrade Initiative focuses positive incentive measures – direct indirect – relevant private ac- tors. measures linked government - tive green taxes positive allocation public funds defined pro- perty rights. , BioTrade perspective, approach incentive measures inter-related ways: 3.2.1 chain approach term “ chain” refers coordinated relation- ships actors involved - productive activity aim product service supply source customer. involves alliances pro- ducers, processors, distributors, traders, regulators support institutions based market demand products services. Actors chain work jointly achievement goals sharing benefits risks, - vesting time, energy resources realizing goals.20 3.2.2 Sustainable livelihoods approach “ livelihood comprises capabilities, assets (stores, resources, claims access) activities required cope recover stress shocks, maintain enhance capabilities assets, provide sustainable livelihood opportunities livelihoods local global levels short long-term.”21 , “sustainable livelihoods approach” puts people communities centre focuses enhancing: 22 Human capital: individual skills, knowledge, ability labour good health. Social capital: “social resources peo- ple draw pursuit livelihood objectives”, including “networks” “relationships trust, reciprocity exchanges”. Financial capital: “financial resources people achieve livelihoods” savings credit access. Physical capital: “basic infrastructure pro- ducer goods needed support livelihoods”. Natural capital: access natural resources (.. biodiversity, lands, fresh water, clean air). 3.2.3 incentive measure framework Bio- Trade putting people chain actors centre, approaches provide strategic 73. Incentive measures biodiversity framework classifying incentives engage pri- vate actors conservation sustainable biodiversity. context, incentive measures BioTrade perspective classified “( pro- posed framework discussed interna- tional workshop 24 November 2009 . definition incentive remarks workshop.)” Market incentives: access markets differ- entiation products markets. incentives linked social capital business partnerships improve ac- cess markets. Biodiversity branding schemes recognized interesting marketing tool differentiate envi- ronmental social sustainable biodiversity-based products markets. , branding schemes numerous lead confusion consumers. Education consumers compa- nies organic products fairtrade (FLO – Fairtrade Labelling Organizations International) instance, part solution overcome confu- sion. Social incentives: enhancement human (.. skills, knowledge abilities) social (.. supportive cohesive environment fosters adoption sustainable practices chain) capital. link social human capital - clear analysis. order design sound social incentive measures, social chal- lenge success, human nature notion equity account. - , behaviour driven recognition social measures address ways pro- vide recognition. Finally, enhancement social capital focus increasing interaction - tween chain actors, , including interaction academic researchers private companies local authorities. - ordination local level enhanced order avoid duplication. Financial incentives: facilitation access fi- nance financial compensation sustainable practices, instance cash rewards compensation conservation activities, grants microcredit private entities adopting sus- tainable conservation practices. credit lines tailored BioTrade, account type size companies markets. , banks’ interest biodi- versity CBD enhanced. Fund- ing & addressed. challenge observed difficulty measuring economic biodiversity. impacts banks BioTrade businesses. - difficulties measuring economic biodiversity, hard BioTrade companies prove economic potential activities provide guarantees demanded traditional banks . BioTrade princi- ples articulated manner showcase good practices good -public actors businesses illustrate good investments. combination private public funds, public private partnerships (PPPs), assist biodiversity investment. Physical incentives: enhancement production facilities, access equipment transport. Physical capital extended “-capital”. Physical incentives include en- hancement internet-based information systems , instance, generate information mar- kets species. , physical incentives address ways local adding. -public actors planning competitiveness enhanced strengthening physical capital. Property rights: access rights , manage biodiversity resources defined public measures. study address prop- erty rights indirectly importance guaranteeing private sector practices medium long term. protection enforcement intellectual prop- erty rights innovation technical transfer. , lack clarity transparen- cy land ownership removal communities. rights communities access natural resources recognized. case study, specificities underlying property rights BioTrade projects developed. Benefit drives sustainable conservation biodiversity ownership natu- ral capital access benefits. , access natural capital mo- tivate actors adopt sustainable practices. Fiscal incentives: budgetary measures taxes subsidies addressed paper, governmental measures. Natural resources marginally profitable 8 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY taxes high. order ensure engagement private actors sustainable prac- tices, optimal profitability defined. Fiscal incentives include “green economy” mea- sures tax breaks imported equipment training, preferential tariff schemes sustain- products special tax regulations - munity-based initiatives. framework classify specific tools developed BioTrade Initiative part- ners, private actors , generate incentives biodiversity conservation sustainable . primary categories incentives23 summarized Table 1. section paper reviews series BioTrade case studies line incentive mea- sures classification mentioned : market, social, financial physical. review overview incentive measures generated UNCTAD BioTrade Initiative partners. Table 1. BioTrade incentives Incentive types BioTrade tools Incentive targets Market incentives clusters specific biodiversity products activities Facilitate access products markets Differentiate products market resulting premium price Social incentives sized enterprises (SMEs) Enhance human social capital, special focus enhancement skills, knowledge abilities organizational strengthening networking Financial incentives Facilitate access finance Physical incentives facilities Enhance production capacities, facilitation access equipment transport 94. BioTrade case studies 4. BIOTRADE CASE STUDIES section includes selection BioTrade case studies : - case studies presented differ greatly, illustrate BioTrade activities gen- erating variety practical, focused incentives encourage conservation biodiversity sustainable biological resources. 4.1 Nativa Cosmetic Valley24 case study focuses unique innovative partnership developing country BioTrade association developed country trade associa- tion. 4.1.1 Nativa – BioTrade sector association Nativa created 2006 Colombia - port UNCTAD BioTrade Initiative partners, Centre Promotion Imports devel- oping countries (CBI) Colombian BioTrade National Programme/Humboldt Institute. Nativa sector association Colombia BioTrade compa- nies involved native natural ingredients. Nativa recognizes important role private sector play implementation CBD MDGs. fulfil role, enterprises acknowledged importance working , national level creation Nativa - gional level creation BioNativa – - dean Amazon association BioTrade natural ingredients products.25 Nativa focuses sustainable native plants promotes development trade prod- ucts added . carried framework chain approach imple- mentation BioTrade principles criteria. Nativa developed supportive environment net- work companies working natural ingredients sectors respect BioTrade principles criteria. strengthening social capital, Na- tiva aims create social market incentives engagement private actors conservation sustainable biodiversity. instance, sector association aims harmonize relations - tween members, strengthen chains, promote knowledge sharing, develop studies recommen- dations problems faced members, facilitate participation trade fairs participate policy processes affecting members. addition, facilita- tion access finance members research projects important objective Nativa. Nativa includes: companies, university, public research laboratory hun- dred products fifty active ingredients native species, including vegetal extracts, essential oils, nat- ural dyes, resins sweeteners.26, 27 4.1.2 Cosmetic Valley – BioTrade chain partner French association, Cosmetic Valley, world’ leading resource centre perfumes cosmetics.28 created 1995 hailed French Inter-ministerial Committee Regional Development Competitiveness “competitiveness cluster”.29 development cluster creates supportive cohesive structure cosmetic sector approach promotes innovation expansion inter- national markets. Cosmetic Valley coordinates net- work 470 enterprises, large perfume cosmetic companies SMEs, research labo- ratories, training institutes universities. covers French departments regions: Centre (Eure--Loir, Indre--Loire, Loiret, Loir--Cher), Ile- de-France (Yvelines, Val ’Oise) Haute-Norman- die (Eure). Cosmetic Valley adopt practices respecting biodiversity conservation. , main challenges cluster include conserva- tion sustainable practices business activities, convert source innovation. Cosmetic Valley act sus- tainable manner, based : - panies’ operations: employees, clients, suppliers, ”. 10 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY , Cosmetic Valley disseminates prac- tices sustainable development objective bringing member companies virtuous circle, adoption manufacturing practices (BMPs), responsible production - sumption modes clean modes transport. cluster integrates sustainable development fac- tors development products stimulate innovation. initiated development eco-responsibility charter based defined commitments resources preservation, fair relations southern countries, carbon wells scientific cooperation programmes.30 Finally, clus- ter create sustainable partnership biodiversity-rich countries. Highlights Cosmetic Valley’ profile include: cosmetics companies – .. Guerlain Dior (LVMH), Shiseido, Hermè, Nina Ricci Paco Ra- banne, Lolita Lempicka, Gemey-Maybelline Yves Saint Laurent Beauté (’éal), Clarins, Caudalie 4.1.3 Nativa Cosmetic Valley – BioTrade partnership Chamber Commerce Bogotá, promotion Colombian products exchange technology - Colombia Europe, approached United Nations Industrial Development Organization Service France (UNI- DO, France). activities, organized French-Colombian exchange experiences - petitiveness clusters, Cosmetic Valley Nativa Colombia participated June 2007. result exchange, Cosmetic Valley Na- tiva started discussions strengthen collaboration due shared commitment sustainable biodiversity export-readiness Nativa interesting innovative products. Subsequently, February 2008, memorandum understanding signed organiza- tions. national actors contributed achieving partnership Colombian National BioTrade Programme/Alexander von Humboldt Insti- tute Fondo Biocomercio. partnership Nativa Cosmetic Valley business alliance promotion native - Table 2. benefits business alliance – Cosmetic Valley Nativa Cosmetic Valley derived native biodiversity Valley cluster research organizations Nativa experts (market access, product quality, sustainable supply chains, .) cosmetics sector Cosmetic Valley members Common activities special focus resource management technology transfer members clusters establishing potential commercial agreements companies’ members Nativa Cosmetic Valley financial support Cosmetic Valley Colombian Administrative Department Science, Technology Innovation (Colciencias) 114. BioTrade case studies lombian products. resulted ben- efits/activities associations shown Table 2. 4.1.4 Incentive measures generated partnership partnership develops supportive cohesive social environment actors pursuing goals, , commercialization natural - metic products. partnership, market, fi- nancial social incentives created Cosmetic Valley Nativa engage sustainable practices. Market incentives partnership generates market incentives Na- tiva enhances market access products. Cosmetic Valley, hand, generates market incentives partnership enhance- ment supply native Colombian products cluster diversifying product offer. , Nativa’ regard BioTrade Principles products distinctive markets. Nativa’ presence Cosmetic Valley stands fairs Beauty key marketing Nativa’ products creation links Nativa Cosmetic Valley companies. Social incentives partnership generates social incentives increases skills, knowledge ability Na- tiva Cosmetic Valley members. Nativa’ members learn experience Cosmetic Valley, started small cluster strong world- wide competitiveness cluster cosmetic sector. partnership, members Cosmetic Valley enhanced knowledge specific Colombian plants widened possibilities &, .. creating colourings bio-pesticides. partnership creates opportu- nities technological transfer enhances Nativa members’ local capacities. Financial incentives access finance facilitated competitive- ness clusters enhanced partner- ship. , partnership facilitated access funds & projects brought funds cluster . Cosmetic Valley funds mutual & projects. 4.1.5 Lessons learned partnership existence market environmentally socially responsible biodiversity-based products, es- pecially developed countries, key driver adoption practices respecting conservation sustainable biodiversity. prerequisite success partnership Nativa Cosmetic Valley. concrete benefits obtained partnership Nativa Cosmetic Valley: - es expansion markets ( Nativa) prod- native natural products national international generation joint & projects. 4.2 PhytoTrade Africa31, 32 case study reviews approach Southern Africa Natural Products Trade Association – trading PhytoTrade Africa – establishing facilitating commercial trade plant-derived natural products (NPs). shows approach encouraged development incentive measures contrib- ute sustainable conservation forest resources local communities. supported baobab harvesting trade Malawi TreeCrops (Pvt) , business member PhytoTrade. detailed section explores support PhytoTrade TreeCrops (Pvt) gener- ated incentives communities harvest baobab products sustainable . 4.2.1 Development incentive measures PhytoTrade’ goal support commercialization NPs development supply chain global markets NPs. , aim enhance economic growth poor rural communities sustainable harvesting ethical trade range native plant species. PhytoTrade estab- lished 2001 writing membership 50 organizations work approxi- mately 20,000 harvesters. Approximately 85 cent harvesters women. PhytoTrade deals botanical extracts oils focal species including: 12 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY Adansonia digitata); Citrullus lanatus Schinziophyton rautanenii Sclerocarya birrea Ximenia sp. Trichilia emetica (Kigelia africana). PhytoTrade Africa works diverse products. diversification products reduce risks, transaction costs externalities. PhytoTrade facilitated development supply chain identified global markets NPs southern Africa, including baobab Malawi. illustrated case study, support pro- vided PhytoTrade developed incentive mea- sures members engage practices respect- ing biodiversity conservation sustainable . 4.2.2 Approach market social incentives PhytoTrade’ objective generate supplementary incomes rural communities southern Africa’ marginal areas sustainable exploitation wild-harvested natural products – primarily plant species – creation global markets products. Primary producers faced constraints accessing export markets, niche high level markets. Factors social insecurity, lack education busi- ness experience, limited space market, lack capital reduce ability primary producers access global markets. PhytoTrade seeks achieve broad devel- opment objective pursuing largely commercial approach chain developed primary producers’ level global markets. achieve goal, PhytoTrade, members, focus main areas: relevance working paper focal areas: development supply chain market development create incentives sustainable NPs. section describes intervention undertaken PhytoTrade enhance trade NPs southern Africa development supply chain identification market opportunities. 4.2.3 Market incentives support mar- ket development order successful, business strategies account market demand commercial- ized products. case PhytoTrade Africa, fail- ures observed successful initiatives replicated account existence limited market demand. market potential observed, product requires marketing, product based en- tirely ingredient unknown market.33 raise awareness consumers recognized, process expensive companies afford cost. contribute development reliable market NPs, PhytoTrade developed initiatives include support certification stan- dards, development commercial partnerships companies Europe South Africa, - tendance international trade shows raise - sumer awareness natural products. addition, brochures, articles regular newsletters published part market development strategies. Efforts adhere existing regula- tory frameworks govern trade natural products markets / geographical regions. support PhytoTrade enhances market access generates incentive measures PhytoTrade members adopt sustainable practices. Certification standards compliance development NP markets progressed, increasingly apparent certification represents key opportunity primary producers. Certification increase benefit flows small- scale producers provide market incentives producers invest sustainable harvesting practices. Consumers increasingly aware social environmental impacts consumption patterns eager tangible evi- dence negative impacts reduced.34 , small-scale producers -timber - est products (NTFPs) feed market drawn complex, shifting expensive certification scenarios form barrier trade. gap industry’ cer- tification expectations small-scale producer’ certification capacity wide, small producers excluded. 134. BioTrade case studies PhytoTrade narrow gap practical ways facilitate entry small-scale NTFP producers global natural products market, providing certification grants members. Certifi- cation Ecocert-Afrisco. Efforts develop harmonized global standard Union Ethical BioTrade (UEBT) NTFPs certification. Initial analyses suggest organic certification positive outcomes . Producers earned 50 cent kilogram material result premium paid organically certified products, producers ben- efited improved prices dividends. price paid individual harvesters increased primary producers work mem- bers PhytoTrade TreeCrops. Addressing regulatory requirements review PhytoTrade prior efforts develop NPs industry southern Africa revealed adequate attention regulatory issues needed paid.35 PhytoTrade adopted strategy generates information regulatory requirements product market. Regulations de- termine accessibility external markets vary country country. instance, European Union (EU) – biggest market NPs PhytoTrade members – application foods approval prior launch product EU markets. application process - months expensive. , PhytoTrade applied EU foods approval baobab pulp food ingredient EU August 2006. Ap- proval granted July 2008. long-term sustainability, apply approval regulations product pulled shelf launched market. generation information regulatory requirements support applications enter markets, PhytoTrade facilitate access markets members. , PhytoTrade generates market incentives members adopt practices adhere - servation sustainable biodiversity. Commercial partnerships PhytoTrade established, recognized realize sustainability, adopt strategy ensure existence reli- market natural products. , commer- cial partnership approach adopted. approach, commercial partners interests natural products approached collaborative work trade association. parties agree- , memorandum understanding partnership drawn signed parties. 2008, PhytoTrade main commer- cial partners – Aldivia based France Afriplex based South Africa. Aldivia purchases bulk oils focal species cosmetics, Afri- plex concentrates flavour extracts fruit pulps food beverage industry. commercial partnerships mechanism developing joint marketing efforts natural products. instance, 2008, Aldivia cumulatively developed database 370 customers African oils identified 2,300 prospective clients. 4.2.4 Social incentives supply chain de- velopment important element identified PhytoTrade start programme ensure existence adequate supply base meet de- mand product launched market.36 ensure consistent supply, mechanisms put place. include providing rel- evant technical support business development advisory services members, coordinating pro- duction meet bulk volume requirements market, assisting members attain required quality standards export. services enhance social human capital members - sequently act social incentives adoption sustainable practices. Technical support production PhytoTrade committed providing capacity-build- ing technical support members order enhance skills, abilities knowledge enable reliable NP suppliers. 2006, response specific requests, PhytoTrade im- plemented training capacity-building approach focuses small, targeted -groups membership. Training generic static changed time meet changing members. Initial emphasis sourcing NPs level supply chain bet- 14 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY ter managed efficient, emphasis shifted packaging, quality control, export documentation. technical support equips primary produc- ers meet quality standards tool enable overcome stringent quality requirements global markets. Pre-qualified supplier system contribute accomplishing commercial link- ages producers, processors traders market chain, PhytoTrade works closely competent -capitalized members pre-qualified supplier (PQS) system. PQS system priority commercial orders mem- bers demonstrable capacity produce, process export natural products reliably agreed quality pricing specifications. PQS system intro- duced 2007 streamline export process. 2008, fifty- PhytoTrade members, PQS members member countries. TreeCrops PQS, focus baobab pulp supplies. PQS system contributed improv- ing supplies bulk oils fruit pulp meet quality standards European market. Relevant training workshops facilitated PhytoTrade PQS members regular basis. instance, September 2008, held quality management systems. feasible, training workshops held members’ premises enhance learning sharing experiences. PQS members meet quarterly basis dis- cuss progress production related market issues. PhytoTrade Africa build capacities local level connect chain actors. , support focused building profitable chains. approaches, number PhytoTrade Af- rica members economically sustainable longer rely trade associa- tion. case study focuses Phyto- Trade’ member companies. 4.3 TreeCrops PhytoTrade Africa37 4.3.1 Overview TreeCrops private company based Lilongwe, Malawi, specializing commercialization natu- ral products. company promotes sustainable wild harvesting baobab fruit seed area arid southern region Lake Malawi. company processes baobab pulp - sumable products sold local (national) markets exported regional interna- tional markets. baobab pulp, whitish, powder rich vitamin , traded European mar- kets food ingredient. Baobab seeds pressed produce high oil sold - ternational market, cosmetics sector. company forms bridge suppliers baobab products sales markets finished products sold highly specialized players food cosmetics sectors. current production level baobab pulp average 600 kilogram day. factory capacity produce 300 kilograms oil month present, - hour shift. company emloys peple stationed factory work fields. TreeCrops (Pvt) works female male harvest- ers processors baobab seed pulp. Rural primary processors involved baobab trade TreeCrops (Pvt) 2008 consisted 122 women 264 men Dedza District south- ern shores Lake Malawi. Preliminary processing pulp village level central collection depots seed pulp separated local primary producers employed company. processing pulp grading, grinding packaging main factory TreeCrops Lilongwe. pulp sold local international markets - gredient food industries. Examples products including pulp fruit smoothies fruit juices. developing markets. suppliers abide set standards update knowledge mar- ket products involved trading relations TreeCrops. Packaging factory bao- bab pulp finished products sold regional market commercial partnership arrange- ment PhytoTrade. 4.3.2 Expansion formal employment sus- tainable baobab trade inception formal trade baobab products TreeCrops, local livelihood options skewed crops livestock. average incomes baobab trade modest, proving consistent source income 154. BioTrade case studies crops livestock. adaptation baobab species harsh, arid environment. TreeCrops growing, primary producers formal employment, helps enhance role, - fidence capacity sustainably harvest - source train fellow primary producers. Local primary producers employed receivers baobab raw material storage facility source districts. trained receivers responsi- ble ensuring compliance sustainable harvest- ing, quality hygiene standards met sourcing, processing storage local stage baobab supply chain. manda- tory collectors deliver central point ensure control storage processing condi- tions. Storage conditions difficult monitor product stored individual households. Trade baobab TreeCrops reduced sales middlemen “vendors” undercut prices. increase formal employment baobab pri- mary producers reduction sales middle- men, linked creation TreeCrops, key drivers engagement primary producers sustainable baobab. , PhytoTrade TreeCrops provide assistance facilitate access markets strengthen human - cial capital primary producers. 4.3.3 Incentive measures sustainable Incentive measures generated PhytoTrade TreeCrops contributed sustain- conservation biodiversity include - cial incentives (enhancement skills, knowledge abilities) market incentives. Property rights political incentives ( defined property rights existence institutions monitor NPs) considered. incentive mea- sures analysed annual impact monitor- ing Dedza Ntcheu districts PhytoTrade TreeCrops annually 2005 2008 discussed . Market incentive – creating market opportunities create market opportunities trade associa- tion members, PhytoTrade handles regulatory require- ments global markets. , PhytoTrade process applying EU foods approval baobab pulp approved food ingredient EU markets. process years (including years application process approval finally received July 2008. Ap- plication United States Food Drug Administration Generally Recognized Safe (GRAS) notice baobab food ingredient United States America. Approval GRAS notice received July 2009. meet regulatory requirements cre- ated market opportunities trade association, TreeCrops members involved baobab production. products baobab ingredient launched United Kingdom markets. include baobab jam drinks baobab. long term, increase named baobab products EU markets create increased demand baobab pulp increase purchases primary producers. Markets developed prod- ucts unknown global markets. Market identification creation PhytoTrade’ marketing offices London South Africa. marketing team attends relevant trade shows Europe – advertising natural products southern Africa. Trade association members op- portunity attend trade fairs showcase products. instance, TreeCrops participated Biofach (Europe) natural organic trade fairs South Africa. created market aware- ness products. Baobab pulp oil sold regional market commercial partnership arrangement PhytoTrade. addition, TreeCrops produces finished products national market Malawi. baobab traditionally consumed Malawi, supplying baobab products shops prod- ucts accessible urban dwellers ordi- narily easy access baobab. local market finished products contributes increased purchases baobab pulp primary produc- ers. Marketing committees formed bao- bab producing communities contribute man- agement resources NPs production pro- cesses. marketing committees work closely TreeCrops supply baobab raw material system involves primary producers decision-making processes NP local level. Primary producers space negoti- ate pricing TreeCrops, created mutual trust harvesters company. 16 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY Social incentive – enhancement skills, abilities knowledge TreeCrops primary producers training assessment order develop skills sustainable production, harvesting compliance quality standards. training covers, sustain- harvesting techniques, hygiene quality man- agement ensure high quality baobab seed pulp produced. training, primary producers ( harvesters) certificates show delivering product de- pots. TreeCrops give trainees guidelines harvest- ing include child labour pre- vention gender-related exploitation. guidelines include harvesting techniques environmental conservation, pulp extraction, packaging, storage transportation. Harvesters paid products delivery depot, incentive continue trading TreeCrops. addition training, TreeCrops set internal control system (ICS) ensure quality man- agement production process. committee formed enforce ICS. ICS committee comprised people company representatives suppliers groups. Lo- cal marketing committees formed baobab producing communities monitor harvesting prac- tices ensure sustainable management baobab products. marketing committees include representatives supplier groups functions include negotiating prices qual- ity assurance. committees work closely TreeCrops supply baobab raw materials (pulp, seed fruit pod fibre). system involves primary producers decision-making pro- cesses harvesting baobab area facilitated local coordinators employed company. empowerment primary produc- ers incentives engage sus- tainable biodiversity. fact, involvement producers decision-making process generates awareness sense responsibility positive impacts baobab. Social incentive – strengthening social capital Engagement trade important providing opportunity participants build social capital extended social networks, - yond family neighbourhood bonds households rely. primary producers trained TreeCrops engaged groups related conservation natural resources oth- er development initiatives. compares mere 12 cent obtained random sample selected community primary producers supply informal markets. observed focus group discussions trained affiliated pri- mary producers, groups important building -esteem promoting income generating initiatives gardening sewing, women producers. Property rights institutions Government Malawi devolved proprietorship communal forests woodlands local communi- ties, enabling access resources traditional leadership mechanisms. woodlands registered government individual plots. emerging baobab organic sources, primary producers encouraged traditional access rights/permits granted local traditional leadership baobab trees communal resource remains entire commu- nity permit holders confirmed collect, considered registered collectors TreeCrops. line access rights established organic regulations evidence required show collectors collect. communities realize permits collect baobab wood- lands, increases confidence - tribute biodiversity conservation. organic inspection September 2008, villagers Store village noted TreeCrops’ field - spector establishment mapping wood- lands villages improved ownership rights. vil- lagers stated , boundary woodland , collectors - munities excluded collection fruit woodland. case - lection areas woodland mapping registration efforts working improved owner- ship rights registered communities. hoped sense ownership transform conservation woodlands reg- istered community primary producers residing . 4.3.4 Lessons learned case highlighted incentive mea- 174. BioTrade case studies sures PhytoTrade TreeCrops en- gage baobab trade Malawi fosters sustain- conservation biodiversity traders. creation TreeCrops expanded formal jobs incomes generated baobab trade. Fur- thermore, technical assistance Phyto- Trade TreeCrops enhanced skills, abili- ties knowledge social capital chain actors. incomes obtained baobab production activities, primary producers empowered: invest returns income-gener- ating activities easier engaging sus- tainable baobab trade. intergenerational poverty reduction. generating activities sewing, contributions livelihood diversification risk reduction . significant possession live- stock primary producers engaged formal baobab trade comparison ordinary primary producers helping TreeCrop’ primary suppliers spread investments contributing traditional livelihood options. important context declining transfers rich poor, poor suffering worsening pov- erty situation. access benefit sharing mechanism established TreeCrops social ser- vices fixing boreholes benefit community baobab traders. important aspect illustrated TreeCrops case study correlate incentive measures en- hanced private actors public incentive mea- sures property rights. Assured access natural products mapping registration resources areas, account property rights resource access issues role tra- ditional institutions incentives en- couraging traders resources sustain- . , market incentives arise servic- es PhytoTrade (.. supply chain develop- ment, including certification market development addressing regulatory requirements commercial partnerships). fact, existence reliable markets natural products developed trade association creating opportunities baobab product sales harvesters, incentive biodiversity conservation local level. 4.4 Fondo Biocomercio38 4.4.1 Overview Fondo Biocomercio Colombia (BioTrade Colombia Fund) addresses critical BioTrade compa- nies: access finance. challenge Bio- Trade initiatives overcome. , traditional financial entities rarely differentiate conventional biodiversity-friendly companies, familiar biodiversity-based sectors promoted BioTrade. general, BioTrade companies characterized : - manage credits. characteristics normal young sectors, BioTrade companies unknown traditional banking system qualifies high financial risk companies. Fondo Biocomer- cio established believing sustainable biodiversity achieved trade companies pursuing idea encouraged. created Instituto Alexander von Hum- boldt December 2005 financial support Global Environmental Facility (GEF). operations started October 2006 2007, resources Royal Nether- lands Embassy. Fondo Biocomercio -profit organization aims support access finance companies fulfilling BioTrade principles crite- ria. Fund’ impact biodiversity conservation indirect generation financial incentives adoption sustainable practices client companies. Table 3 page 18 overview Fondo Biocomercio’ operations. 4.4.2 Applying Fund requirements company requesting financial support Fondo Biocomercio : 18 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY - Companies demonstrate business plans activities recognize conservation sustainable biodiversity. loan allocation, adherence criteria assessed progress reports field visits. Monitoring evaluation activities note progress realized aspects improved. providing finance company, Fondo Biocomercio pays special attention verify company: consent ethnic minority communities farm- - Finally, Fondo Biocomercio priority communi- tarian enterprises, SMEs, associations coopera- tives. 4.4.3 Generating financial incentives services clients, Fondo Biocomercio facilitates access finance generates financial incentives enterprises - serving native biodiversity sustainable manner. Services Fondo Biocomercio attractive flexible account risks biodiversity-based products services. Fondo Biocomercio types financial services: Loans Fund proposes kinds loans clients: Basic loans working capital ( reimburse debts), cover adminis- trative costs buy lands. Basic loans start minimum US$ 1,400 (3 million Colombian pe- sos), interest rate 8 cent indexed DTF interest rate.39 Loans payable fixed monthly payments, Colombian pesos 24-month term. “Expolínea” loans facilitate participation enterprises fairs commer- cial events. size loan US$ 1,400 US$2,900 interest rate 12–14 cent indexed DTF rate. term loan 3 6 months, reimbursable maximum fixed Table 3. Fondo Biocomercio’ profile (2009) Number companies benefiting Fondo Biocomercio 59 Total turnover beneficiaries (2008, United States dollars) $ 58,000 Hectares BioTrade practices 19 Number species BioTrade practices 300 Employment generated local communities minorities 700 Number beneficiary families 3,200 Number companies add biodiversity-based products services 55 cent Commitment fulfil BioTrade principles criteria beneficiary companies: 1. Conservation biodiversity 2. Sustainable biodiversity 3. Fair equitable sharing benefits derived biodiversity 4. Socio-economic sustainability (productive, financial market management) 5. Compliance national international regulations 6. Respect actors involved BioTrade activities 7. Clarity land tenure, access natural resources knowledge 57 cent 60 cent 70 cent 87 cent 94 cent 56 cent 81 cent 194. BioTrade case studies monthly payments Colombian pesos. “Ecoturismo” loans eco- tourism. loan offers interesting service reimbursement fixed monthly basis defined seasons planned visits. mitigates risks insta- bility tourism motivate - panies engage ecotourism. special system recognizes contracts travel agencies promoters guarantees ( create potential income) adds flexible nature loan. Exportur ecotourism company benefited Fondo Biocomercio loan. Based Santa Marta, Colombia, company brings tourists Tayrona National Park pro- tected area indigenous reserve. , region marked insecurity drug cultivation. current improvement situation pro- cess involve communities alternative businesses ( ecotourism) difficult. , loan Fondo Biocomercio, training organized community. Women empowered received assistance create association providing food lodging services. loan pur- chase car transport tourists. Factoring Fondo Biocomercio offers “factoring” service. service facilitates cash flow releasing cash invoices issued, al- lowing companies money . term Fund’ payment invoices maximum 180 days applies amounts greater 1 million Colombian pesos (approximately US$ 500). money distributed number invoices. companies pay commission 12 cent indexed DTF rate. Capital Fund invest company 49 cent equity. 4.4.4 Lessons learned Access financial resources working capital requirements difficult SMEs commu- nitarian initiatives, sectors BioTrade. sense, financial services offered Fondo Biocomercio support companies engaged implementing conservation sustainable practices chains. creation fund dedicated biodiversity sector awareness issues faced BioTrade companies provision services adapted companies. , reimbursement ecotourismo loan defined ac- cording seasons planned visits ac- count risks instability eco- tourism. Essentially, guarantee required Fund – .. robust business plan initial guarantee companies – key driver attracting private actors sustainable practices. Fondo Biocomercio, , faces challenges - cluding : generation real, precise compara- ble monitoring information companies. years Fund train companies measure, count register areas, spe- cies, actions investments, part Fund limited resources pur- pose. types data, , needed monitor conservation sustainable aspects. Today, information companies quantitatively qualitatively poor Fund developing tools aimed improving quality information. Access commercial funds. date, Fondo Biocomercio worked public money. challenge access commer- cial funds. Continued active involvement conservation sustainable economic reces- sions. context companies expand- ing, competing demanding markets affected consequences economic - cession, risk BioTrade companies sacrifice engagement biodiversity conserva- tion expand production, reduce costs generate additional incomes. Limited knowledge recognition - sumers native species efforts required companies implement conser- vation sustainable practices. limited knowledge, demand incentives en- hance consumption native species na- tional level, main target companies supported Fondo Biocomercio. Compa- nies combined product range - clude naturalized species established mar- ket, fulfil BioTrade practices. 20 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY Recognition BioTrade gov- ernment support organizations. term “BioTrade” cliché rhetoric public private ac- tors incorrectly synonym green agriculture. , environmental sector unstable. , Fondo Bioco- mercio provide leadership guidance BioTrade concepts. great challenge Fondo Biocomercio financial NGO. , important Fondo Biocomercio work collaboratively BioTrade actors country region. 4.5 Bolivian BioTrade Caiman yacare40 4.5.1 CITES-listed Caiman yacare Plurinational State Bolivia Caiman yacare southern Brazil, Pluri- national State Bolivia, Paraguay northern Ar- gentina.41 early 1990s, populations species considered depleted countries, principal widespread illegal hunting 1970s 1980s. , due ability adapt great variety habi- tats, learned wariness small size ma- turity, Caiman yacare resilient hunt- ing pressures. species included Appendix II CITES Convention 1975 trade allowed carried sustainable issuance export permits exporting country’ CITES authority. Products commercialized species leather skins , , meat. commercial Caiman yacare Pluri- national State Bolivia started 1950s continued 1990 limited control. ban42 instituted 1990 support CITES Secretariat. 1995, pilot programme sus- tainable caiman developed, creating basis Programa Nacional de Conservació Aprovechamiento Sostenible de Lagarto (National Programme Conservation Sustainable Caiman) started 1997. based - periences countries Bolivarian Republic Venezuela. 2009, Plurinational State Bolivia defined quota 50,000 annum export Caiman yacare. years, 30,000 (1999) 59,000 (2003) individuals harvested management model based eco-regional popu- lation sizes. years implementation National Caiman Programme, problems encountered, related quota allo- cation, entry people programme, leather prices tanneries’ dissatisfaction leather quality. 4.5.2 Bolivian BioTrade Caiman yacare chain Beginning 2004, broad group institutions specialists participated -design Boliv- ian caiman programme adapt national real- ity, strengthen regulatory administrative framework means monitoring plan. addi- tion, standardized sampling protocols designed, monitoring harvests commenced, classi- fication water bodies . Additionally, system technical data (counts, harvests, habitats) administrative data (users, farms, quotas history, contraventions) developed, assessed geographically GIS. database - tinuously updated. Parallel activity, management plans sug- gested development Tierras Comunitarias de Origen (TCO – Original Community Lands43) pro- tected areas increase local communities’ par- ticipation Caiman yacare , carrying number activities directed strengthening local communal structures. 2005, Bolivian BioTrade National Programme prioritized work support chains implementing BioTrade principles criteria chain CITES-listed species Caiman ya- care included. sector assessment strategic sector plan caiman chain (Plan Estratégico Sectorial de la Cadena de Valor del Lagarto) developed Bolivian BioTrade Programme, workshops chain actors field visits. strategic sector plan developed Guidelines Methodology Support Chains BioTrade Products.44 Challenges identified process summarized : Conflicts chain actors regard- ing Caiman yacare. Conflicts princi- pally arose inappropriate quota distribution satisfy actors’ requirements, 214. BioTrade case studies actions undertaken middlemen prices paid primary chain actors (.. indigenous hunters) crude leather. Limited measures ensure sustainable har- vests, consideration size, harvest season location observed. Limited control mechanisms. Limitation legal framework adequate- ly promote sustainable Caiman ya- care. Initially, National BioTrade Programme consulted Central de Pueblos Indígenas del Beni (CPIB) (Representative Organization Indigenous Peo- ples Beni)45 possibility supporting chain Caiman yacare. Focus technical assistance ensure sustainable species elaboration management plans. result consultations, Bolivian BioTrade Programme worked ten Original Community Lands Department Beni, northeastern depart- ment Plurinational State Bolivia located lowland region country. Ten management plans prepared selected TCOs 106 communities approximately 13,700 inhabitants. Development management plans participatory manner gather disseminate information, strengthen local capacities promote dialogue chain actors. total, 158 workshops organized communities – 23 regional level department level. actors leading process : CPIB: coordinating activities ensuring tradi- tional knowledge indigenous peoples - Associació Boliviana de Conservació (Bolivian Conservation Association – ABC): NGO provid- ing technical advice environmental issues Bolivian National BioTrade Programme: acting facilitator strengthen chain pro- vide specific technical support related BioTrade. Indigenous people main actors implementing management plans, respon- sible harvesting legal obligation ( Bolivian State) assure sustainable natural resources territories. - , process, chain actors involved, government entities, tanneries, middlemen, NGOs researchers, . 4.5.3 Incentive measures result analysis, management plans considered main tool generating incentives sustainable Caiman yacare. Market incentives – generating higher returns management plans generated market incentives helped hunters sell harvested skins higher prices. years Programa Nacional de Conservació Aprovechamiento Sos- tenible de Lagarto indigenous people hunt- ers received approximately US$ 5 skin. 2002 2007, price increased US$ 10 skin. development management plan, 2008 negotiation capacity - digenous people enhanced appropria- tion benefits derived caiman increased. , Caiman yacare valourized - source indigenous territories. result, price skin paid increased approximately US$ 20 ( range US$ 14–28 depending size quality cut). introduction management plans, quotas vary year , creating uncer- tainty producers buyers. tanneries benefit implementation management plans, plan production based annual quantities establish quality stan- dards raw material. stabi- lize supplies result, acquire greater negotiation power foreign clients. - crease skin quality, tanneries obtain prices international market. , data prove . Fur- thermore, prices international markets Caiman yacare skins depend factors price classic skins (.. crocodile skins), availability, demand, fashion tendencies competition - tween producers similar skins. Social incentives – engaging local population management plans developed implemented generate social incentives enhance skills, abilities knowledge chain actors. Firstly, bottom- process voice local people enhances participation design harvesting programme. , management plans guide community members implement man- 22 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY agement practices enhance skills. Relationships chain actors strengthened organization common activities, workshops process sur- rounding development management plans. participative character process allowed development cohesive supportive en- vironment sustainable Caiman yacare strengthening social capital process. Property rights – valuation local lands management plans increase local lands. Caiman generally recognized - migratory species managed effectively recognition ownership lands caiman. management plans expand benefits local stakeholders sustain- ably Caiman yacare, lands aquatic ecosystems local stakeholders - creases. Management plans increased local - trol. , community members prevented external hunters accessing territories. 4.5.4 Lessons learned key drivers risks working CITES- listed species. trade species ille- gal, businesses closed . kind trade hard predict. , case Cai- man yacare, connection caiman trade illegal trade . public views species endangered man- aged sustainably. facts science support businesses exploiting resource, hard hit markets successfully public perception trade negative. , heavy competition similar fake products. time, opportunities arise work- ing CITES species: trading species, ac- cess multilateral support enhanced. elements key drivers suc- cess process surrounding development implementation management plans. Generation confidence relationships - tween chain actors. Facilitators process act independent im- partial order gain confidence chain actors. Facilitators respectfully organizational struc- tures, social usages traditional knowledge communities. , relationships chain actors strengthened shared activities (.. workshops). Development consultative process chain actors. local stakeholders involved decision-making pro- cesses benefiting economically harvesting, motivated protect manage resources effective . , involvement empowerment natural resource management generates aware- ness sense responsibility positive im- pacts natural resource . Transparency, par- ticipation, inclusion ownership key factors effective community empowerment.46 Implementation method coherent local realities. order facilitate transfer knowledge information beneficiaries, method developed combined local, traditional technical knowledge. Simultaneous development man- agement plans. cost-benefit relation development implementation management plans positive, plans established time. fact, ten plans developed simultaneously , large territory covered costs optimized. Findings case study Caiman yacare transferable. instance, importance chain actors trust applicable case studies. terms lessons learned, wide results limited crocodiles ap- plicable broad range BioTrade activities. conclusion, challenges specific circum- stances case study results general. 4.5.5 BioTrade sustainable measure CITES species BioTrade implemented strategy ensure sustainable CITES species included Appen- dices II III. BioTrade chain adaptive management approaches interesting establishment sustainable practices CITES- listed species. choosing chains support, BioTrade Initiative identifies species CITES-listed . support species included Appen- dices II III. BioTrade principles criteria promoted ensure species sustainable manner. National BioTrade programmes 234. BioTrade case studies key actors support effective imple- mentation CITES Convention. , BioTrade interesting tools approaches trace products chain, collection information requested CITES. important main- tain close relations UNCTAD BioTrade CITES Secretariat CITES national authorities. 4.6 Jambi Kiwa47 4.6.1 medicinal plant’ producers association Ecuador Ecuadorian province Chimborazo, poorest country, pilot project twenty women started 1998 aim improving quality life fostering gender equality, guaran- teeing sustainable surrounding natural resources capturing market potential - dicinal plants. achieved trans- formation commercialization medicinal aromatic plants sold local national market. producers involved associa- tion welfare “clientelist” system receiving goods service offered public private asso- ciation charitable gift. , challenge change habits. women developing Jambi Kiwa introduced concepts related - management, fight poverty, farmers’ organiza- tion autonomy institutions, necessity individual contributions develop association create vision future. 2001, project named Jambi Kiwa evolved communitarian SME business includes families. 80 cent women, high levels illiteracy, 75 cent indigenous Puruhá community. Jambi Kiwa involved BioTrade - cept 2003. support Sustainable BioTrade Programme Ecuador, PNBSE (Ministry Environment/CORPEI48/Ecociencia) – year project (2004–2008) – implemented support Organization American States (OAS). aimed promote economic development mi- nority groups strengthening institutional, busi- ness productive capacities Jambi Kiwa consolidating participation national interna- tional markets. , community-based initiative transforms sixty- plants order obtain ingredi- ents (dried, cut powder) national agro-- dustries finished products. include formu- las (infusions) personal care products (shampoo, essential oils, creams, ). Jambi Kiwa selling products national international markets (Latin North America, Europe). business case Jambi Kiwa inter- esting study private sector experiences, initiated implemented minority group engaged implementing BioTrade concepts, ap- proaches principles. 4.6.2 Incentive measures BioTrade concepts approaches incentive Jambi Kiwa systematically implement sustainable practices line objectives CBD. , institutional strengthening development capacities local level, BioTrade contributed providing SME planning structural support competitive promoting sustainable na- tive species. Incentive measures market differentiation, social financial measures generated BioTrade key engagement Jambi Table 4. Profile Jambi Kiwa 49 Created 1998 Members 632 (480 active), 80 cent women, 75 cent indigenous Puruhá Products Ingredients food industries personal care products Markets sold biggest national supermarket chains Additional information Property Institute (Ecuador) 24 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY Kiwa members conservation sustainable medicinal plants success initiative. Market incentives BioTrade, market incentive measure case study, relates fact implementa- tion chain approach includes environ- mental practices, supply capacity Jambi Kiwa enhanced. important high quality raw material obtained production -added final products. instance, organically certified medicinal herb “tea bags” sold - stead loose dried herbs. bring increase price producers Jambi Kiwa. SME register trademark Jambi Kiwa Ecuadorian Institute Intellectual Property. trademark differentiation Jambi Kiwa’ products enhances competi- tiveness market. Finally, access markets sustainably produced medicinal aromatic herbs motivation Jambi Kiwa engaged BioTrade. summary activities contributed market differentiation Jambi Kiwa products: -added products compete national international markets. increasing product range offer Jambi Kiwa. - egy empowered Jambi Kiwa members. established strategic alliance major Ec- uadorian tea/infusions company. Social incentive measures Jambi Kiwa small faced challenges relating strengthen structure – produc- ers’ association company. needed improve production process, develop quality -added products, gain access markets order competitive local na- tional markets. sense, BioTrade’ involvement Jambi Kiwa considered social measure im- proved capacity Jambi Kiwa members man- age SME negotiate potential buy- ers, locally internationally. work carried PNBSE improved organizational management (business production/processing) skills Jambi Kiwa’ leaders members , result, guaranteed establishment environ- mental, social economically feasible initiative managed indigenous communities. , strengthening human social capital achieved implemented ca- pacity building activities: members. addition, internship programme estab- lished BioTrade concept implemented Jambi Kiwa transferred community- based projects Ecuador. relevant CBD objectives, Jambi Kiwa capacity develop, implement monitor management plans selected wild - lected species. include identifying sustainable harvest rates adequate species, putting practice good collection agricultural practices, executing successful documentation moni- toring systems. importance usefulness management plans Jambi Kiwa plan activities guarantee sustainable resources, real incentive engaged BioTrade. summary results contributed hu- man social capital enhancement Jambi Kiwa capacity-building : organizational strengthening association, sus- tainable management medicinal plants, good collection, agricultural manufacturing practices, . good agricultural practices management plans wild collected species 1,000 producers. assistance supported development Jambi Kiwa’ internal control system line ISO/TEC 17025. administration agronomist harvesting practices. Ecuadorian projects located Sierra (moun- tainous), Costa (coastal) Amazon regions. 254. BioTrade case studies Financial incentives BioTrade considered financial - centive adherence generates access financial resources needed develop sustainable businesses. case study, Jambi Kiwa’ micro- credit fund incentive producers involved BioTrade practices. small producers access funds order improve yields, har- vesting post-harvesting practices addressed establishment microcredit fund. supports Jambi Kiwa enhance members’ production quality raw materials. structure operation fund unique Jambi Kiwa, members ( committees) de- cide operation granting microcredits guarantees. Jambi Kiwa manages fund, training members staff manage successfully. microcredit fund structured revolving fund.50 Members apply credit -kind (seeds, plants, equipment) enhance yields, pay order enable community members access . Administrative costs expen- ditures related operation fund - ered increase interest rate additional fee. Credit allocated analysis required project proposal accompany application showing technical, economic financial viability project. , 56 cent resources fund , 38 cent recovered. microcredit fund, members moti- vated adopt sustainable practices – required Jambi Kiwa clients – organic certifi- cation constitutes financial incentive measure. Physical incentives BioTrade project developed Jambi Kiwa important focus strengthening physical capital SME. Jambi Kiwa received equip- ment allowed increase productivity reduce costs. instance, received tea-bagging machine members package tea reduce production costs. qual- ity products increased es- tablishment quality control laboratory ventilators control airflow. availabil- ity equipment, Jambi Kiwa products’ competi- tiveness enhanced. 4.6.3 Lessons learned aspects played key role success Jambi Kiwa’ engagement sustainable prac- tices: Agreement clear objective. Definition clear collective objective strong personal communitarian engagement. Identification traditional knowledge. Tradi- tional knowledge recovered reinforce Jambi Kiwa’ collective identity. Mobilization capital. seeking external sources capital, SME mobilize important amount cash -kind resources originating community organization . capital involvement local actors key development strengthening SME. Microcredit fund. Facilitation access finance creation revolving microcredit fund. Organizational consolidation SME. Evo- lution traditional organization modern SME oriented market demands, training, shared responsibility consensus. Development planning monitoring tools. 2004, tools developed support PNBSE allowed Jambi Kiwa obtain good agriculture collec- tion practices (GACP), good manufacturing prac- tices (GMP) organic certification implement sustainable management plans species. Commercialization higher quality products. Owing increase quality organic certi- fication, products compete interna- tional fairs obtain sanitary permits required Ecuadorian legislation. Gradual expansion markets. Demand local level observed initially - ternational level. Jambi Kiwa reaching maturity SME attainment organic cer- tification products, greater negotiation power compete international markets, exporting medicinal plants. Women’ empowerment. Women received technical training allowed develop leadership skills agricultur- al knowledge enabling care plants. , participation - 26 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY munity led women fighting poverty exclusion. conclusion, “ significant social impact experience achievement economic development model indigenous farm- ers’ communities compete inter- national markets strengthening local culture consolidating production methods sustainably biodiversity ecosystems region”.51 4.7 Union Ethical BioTrade52, 53 Growing consumer awareness importance biodiversity strong motivation private sector engage ethical sourcing natural - gredients. rising demand biodiversity-friendly products generates opportunities companies - mitted ethical principles, challenge gaining recognition efforts distinguishing market. Union Ethical BioTrade (UEBT) pioneering model companies chance demon- strate ethical responsible sourcing native bio- logical resources. Membership UEBT represents companies differentiate market, lead meeting demand ethical products tangible business benefits time. UEBT support ser- vices promote facilitate private sector’ contribution biodiversity conservation. 4.7.1 Differentiating ethical sourcing bio- diversity Increasingly advertising today refers environ- ment “greening ” products. Nature widely highlighted consumer product brands – food cosmetics exception. context prod- ucts nature, trend sus- tainability social responsibility means growing interest source natural ingredients , preservation related species eco- systems. words, growing consumer interest biodiversity. , consumers developing understanding biodiversity, increasingly - panies adopt biodiversity-friendly practices. Ac- cording 2009 Ethical BioTrade Barometer54 – survey carried UEBT – 50 cent consumers heard biodiversity familiar issues linked biodiver- sity loss, deforestation species’ decline. Expectations “biodiversity” common household term 2015. Mere claims companies biodiversity- friendly practices, , sufficient companies tap growing consumer de- mand biodiversity-friendly products. public trust unsubstantiated social en- vironmental assertions private businesses. , companies increasingly required ad- standards verified independently developed participatory processes. fact, independent certification schemes, notably promoted voluntarily civil society, encoun- tered favour consumers indirect incentives bringing price premium, important conditions ac- cess markets. cosmetics personal care sector, - stance, Ethical BioTrade Barometer 85 cent consumers favour pur- chase products company takes action protect biodiversity. large majority consumers fact stop buying products companies materially committed ethi- cal sourcing biodiversity. companies’ claims regard evidently insufficient. 40 cent consumers trust companies - metic personal care sector, 30 cent companies pay atten- tion ethical sourcing biodiversity. Independent verification critical – 80 cent consumers surveyed - fidence company biodiversity practices verified independently. UEBT’ research,55 , existing standards certification schemes fully ad- dresses objectives CBD. , figure certification schemes address objectives: Movements (IFOAM). Issues maintaining genetic variety spe- cies, recognizing traditional knowledge imple- menting benefit sharing adequately covered. Ethical BioTrade Verification Framework 274. BioTrade case studies created fill gap, helping companies ad- Ethical BioTrade principles criteria56, , previously , reflect goals CBD. engaging Ethical BioTrade, companies contribute conservation sustain- biodiversity. fostering long-term rela- tionships source countries, create em- ployment, contribute local development preserve local ecologies. 4.7.2 private sector association Ethical BioTrade UEBT -profit association promotes “sourcing respect” ingredients native biodiversity. Members commit gradually en- suring sourcing practices promote - servation biodiversity, respect traditional knowledge assure equitable sharing benefits supply chain. UEBT born expressed compa- nies – SMEs – differentiate Ethical BioTrade prod- ucts market. evident business tables held UNCTAD BioTrade Initiative highlighted importance recognizing efforts ethical sourcing biodiversity. 2006, context UNCTAD BioTrade table discussion organized Geneva, idea form organization provide guidance sustainable biological diversity market recognition Ethical BioTrade products born. year , small diverse group organi- zations, actors private sector lead, created UEBT. , members businesses person- al care cosmetics industry. active natural pharmaceutical food sectors . sectors incorporated time. UEBT members Plurinational State Bolivia, Brazil, - lombia, Ecuador, France, Peru, South Africa, Switzer- land, Uganda, United Kingdom Great Britain Northern Ireland United States America. types membership: trading mem- bers, affiliate members individual members. trading affiliate members elect board direc- tors union approve management organization. Trading members part - ply chain. Affiliate members include organizations individuals supportive principles Ethi- cal BioTrade involved trading. Individual members journalists, ac- ademics individuals working Bio- Trade-related fields impacting public opinion. UEBT helps member companies adhere principles criteria Ethical BioTrade based BioTrade principles criteria previ- ously . verification framework natu- ral ingredients establishes basis identify gaps, develop work plans support company claims ethical sourcing biodiversity. UEBT supports companies sharing knowledge - pertise creating links organizations similar goals. promoting business linkages - tween members, UEBT increase awareness industry enlarge market ethically sourced products. , helps encourage ethical sourcing practices worldwide levels supply chain. 4.7.3 Ethical BioTrade verification system UEBT members committed adopting Ethical BioTrade practices biodiversity-related Figure 1. Certification schemes objectives Convention Biological Diversity SA SA FS FS FLFL IF IF -- -- -- -- -- —— -- -- -- -- -- ov ov er ag ra Conservation SA SA FS FS FLFL IF IF Sustainable SA SA FS FS FLFL IF IF Equitable benefit sharing 28 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY products. establish company-wide management systems gradually implement Ethical BioTrade principles criteria products native species, levels supply chain. members foster long-term relationships source countries, contribute local development, en- benefits reach involved preserve local ecosystems. Company commitment backed -party verification system assesses companies’ man- agement systems supply chain practices source. UEBT acknowledges incremental progress strict compliance, companies gain recognition efforts compliance Ethical BioTrade principles criteria early . verification framework tool analyse conduct UEBT member. Members’ activities evaluated comparison principles criteria Ethical BioTrade, order determine parts member’ operation addressed. , main tool develop individual work plans guide members compliance principles criteria. UEBT’ verification framework stems principles criteria developed UNCTAD Bio- Trade. framework international standard designed accordance requirements de- veloping standards stipulated World Trade Organization (WTO) International Social Environmental Accreditation Labelling Alliance (ISEAL). requirements include carry consultations open stakeholders decision-making mechanisms bal- ance interest groups. Part requirements periodically review standards. Ethical BioTrade Verification Framework specifically developed advance objectives CBD, incorporates pillars conservation biodiversity, sustainable , equitable sharing benefits derived genetic resources. Ethical BioTrade Verification Framework built international environmental sustainable development objectives, elaborating indi- cators defined easy appraise, remain reliable measures criteria. , Ethical BioTrade Verification Frame- work applicable company wishes : - ual compliance Ethical BioTrade principles - - Trade principles criteria. verification system work applying join UEBT, prospective member commits putting Ethical BioTrade commitments practice. approved membership commit- tee, applicant undergo independent - party audit UEBT-approved organization months. audit check mini- mum requirements met, gaps exist current practices Ethical BioTrade principles criteria. , minimum requirements include destroying natural habitats, conducting ethical business relations, econom- ic sustainability ensuring respect human rights. audit passed, applicant submits UEBT work plan outlines intended steps - wards compliance verification framework. granted membership status audit report work plan approved. Members strong commitment achieving compliance verification framework years. Ethical BioTrade verification system business-- business market differentiation tool, promoting shared responsibility companies supply chain. certification system -product label allowed. certification system, FSC, control sustainable management practices producer level, chain custody certification assures certified input – case FSC, tim- ber – moves stage supply chain mixed -certified inputs. final product, manufactured cer- tified input, carry -product declaration compliance – .. FSC label. UEBT verification system, member - panies subject verification. required time, native biodi- versity species comply verification 294. BioTrade case studies framework. means company’ practices line verification framework, native ingredients sourced compliance Ethical BioTrade Verification Framework stages supply chain producers. - panies (.. members) products claim adherence Ethical BioTrade principles. system speaks companies, products. membership logo corporate communications, , companies gain acknowledgement efforts compliance ethical sourcing practices. Reducing costs external verification order reduce costs -party verifica- tion system entails, UEBT seeks reduce burden external verification ways. verification system relies combination -assessments -party audits, making system costly traditional labelling system. , member companies years reach compliance Ethical BioTrade Verification Framework, fit Ethical BioTrade goals busi- ness priorities investment cycles. impor- tant note supply chain audited, sample suffice management system effectively translates Ethical BioTrade principles criteria field. UEBT -product claims compli- ance. , member companies feel consumers require labels products, UEBT’ - operation arrangements labelling schemes ensure cost-effectively. , UEBT permits auditors recognized verification systems, FSC Rainforest Alliance, multiple verifications single au- dit. Finally, support smaller players supply chain encourage members pursue initial commitment, UEBT launched Ethical BioTrade Community Grant Programme 2009. community grants cover costs related design full implementation Ethical BioTrade practices, supporting deeper engagement companies local indigenous communities ethical sourcing biodiversity. 4.7.4 UEBT incentive measure – private sector views Applications membership highlight Ethi- cal BioTrade Verification Framework acknowl- edgement distinction ethical sourcing practices key driver engagement UEBT. applicant noted: “ Union Ethical BioTrade highlights prac- tices implementing line CBD. motivation joining organization based fact work ethical sourcing natural ingredients captured cer- tification mechanisms… addition, clients stronger assurances ef- forts. plethora existing approaches, Union Ethical BioTrade responds … brings credibility efforts solid basis continu- ous improvement.” aspects market differentiation UEBT emphasized appli- cants include: - - - Figure 2. Logos Union Ethical BioTrade 30 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY - ternational rules. importance market recognition ethical sourc- ing biodiversity clear rising UEBT membership signature members’ corpo- rate communications. Members encouraged membership logo communication materials : websites, annual reports, stationery, product inserts advertising. membership logo shows companies actively working bring prac- tices line Ethical BioTrade principles cri- teria important tool market differentiation. 4.7.5 Conclusion Growing consumer awareness biodiversity means increasing expectations companies working natural ingredients. UEBT constitutes pioneer- ing approach market differentiation - centive ethical sourcing practices. UEBT members obtain acknowledgement efforts Ethi- cal BioTrade, part network offers guidance promotion relation efforts. attested experiences UEBT mem- bers, market differentiation proves strong incentive engagement private sector conservation biodiversity. 4.8 Funbio57, 58 4.8.1 Overview Funbio ( Brazilian Biodiversity Fund) -- profit, -governmental organization created 1996. functions innovative funding mechanism provide resources conserving biodiversity develop strategies facilitate implementation CBD Brazil. Funbio receives funds variety sources, including initial US$ 20 million grant GEF, Funbio’ early goals forge partnerships private sector means promoting sustainable biodiversity. GEF grant conditional establishment efficient transparent promotion mechanism capable attract- ing private sector partner Fund’ objec- tives. order ensure long-term activities, grant complemented fundraising. , Fun- bio receive donations companies institutions interested associating activities give regard conservation sus- tainable Brazilian biodiversity. Funbio established means support conservation sustainable biodiversity projects. skilled managing financial assets creation support funding pro- grammes. Fund oversees - sistance projects private sector generates financial incentives engagement private sector activities respecting conserva- tion sustainable biodiversity. instance 2004, Funbio started involved supporting implementation BioTrade activities Brazil, par- ticularly natural ingredients chain. - , promoted engagement Brazilian private companies BioTrade principles criteria. Jointly UNCTAD, Andean BioTrade partners organizations, organized workshop ses- sion “Verifying Biodiversity Trade” CBD - 8/37th Global Biodiversity Forum 2006. focussing private sector initially, Funbio’ functions evolved platform private public actors. addition, Fund asked international donors provide logistical, financial management support largest ambitious programme protection tropical forests world, Amazon Region Protected Areas (ARPA) programme (ARPA). ARPA return offered Funbio huge opportunity learn skills improve internal management. decade’ experience, Funbio decided redi- rect broaden focus regional scale aim coordinating environmental partners prior- ity landscapes biodiversity conservation working closely private sector. 2009, strat- egy started generating positive results clear path strengthening work private sector. report discuss Funbio’ learning pro- cesses analyse services Funbio generate financial incentives social incentives, capacity building strengthening networks. 4.8.2 Funbio’ learning process major task Funbio creation fundraising US$ 5 million Brazil- ian private sector. point, clear idea level demand, , private sector environmental projects Brazil, men- tion Brazilian legislation lacks kind fiscal incentive private sector engage environ- 314. BioTrade case studies mental activities, creates difficul- ties engagement. outset, Funbio call proposals finance projects sectors: 1996, Funbio received 1,083 propos- als, expected. careful consideration, Funbio chose ten proposals fund, - ing financial resources allocated call. Important lessons learned call included: call proposals 1998, Funbio dif- ferent approach. lessons learned pre- vious experience, Funbio narrowed criteria. spe- cific innovation inserted biodiversity finance Brazil mandatory match funds – words, Fun- bio finance 50 cent proj- ect. strategy adopted raise Funbio’ US$ 5 million goal. response greater antici- pated, resulting raising US$ 6.5 million. main objective Partnership Funds Pro- gram raise funds finance projects - mon interest areas: Partnership Funds Program attracted NGOs funding sources. Funbio, scaled projects levels. addition, call proposals attracted compa- nies Brazil : management scheme fisheries reproduce upstream trapped - duction phytotherapics plantations. Funbio’ call proposals 2000 – Sustain- Production Support Program (PAPS) – themes, focused small-scale producers. idea wider impact lever- aging financial resources, support -profit projects , years , pay received. resources -invest similar projects creating revolving fund widening impact sustainable production. time, clear projects clear plan achieve financial sustainability tendency perish financial support ceased. true projects implemented grassroots NGOs. , order lasting projects lasting results biodiversity, financial sustainabil- ity key factor PAPS address. increase chances successful, PAPS improved selection process dividing steps. step standard project selec- tion based biodiversity impacts projects achieve. Projects selected stage eligible receive small grant develop busi- ness plan sustainable production business. selection step choose selected , feasible business plans/proj- ects finance – .. pay resources invested functioning. business plans focusing environmental - sues Brazil, real breakthrough. Today, idea kind instrument working biodiversity conservation established. PAPS scheme partially successful - investment paid . projects succeeded fully implementing business plan. cases, business plans detailed left important - pects business goals. , PAPS proj- ects proved resilient economic stresses percentage projects functioning Funbio’ initial support greater calls proposals. 4.8.3 Scaling financing projects country, Funbio realized small-scale sustain- projects tended fail long term. reasons unclear, mac- roeconomic disturbances, lack managerial skills, intricate bureaucracy/legislation high taxes key elements impacting businesses Bra- 32 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY zil. meant Funbio’ impact biodiversity ephemeral restricted scale, al- cases, institutional strengthening improved sustainability observed. Funbio wanted important impact biodiversity find ways implement projects. remedy challenge scaling size complexity projects Integrated Conserva- tion Sustainable Projects (PICUS). projects restricted impacts, Funbio started work larger areas territories sustain- ability goal isolated project portfolio projects, - terrelated agendas – climate change, fauna conser- vation, sustainable , forestry, protected areas, . idea agendas integrated geographical space create virtu- ous cycle sustainability maintenance environmental services maintained long run. project support vice versa. 2004, Funbio call proposals PICUS model. selected proposals de- tailed -step selection process order receive grants. , step selection, clear finan- cial sustainability projects guaranteed. Proponents give assurance raise sufficient resources match Fun- bio’ contribution. result, Funbio dif- ficult decision cancel call proposals, realizing projects implemented achieve sustainability long run. decision hard greatly criticized project proponents. addressing questions raised - cellation PICUS, Funbio important - assessments: () scaling projects difficult initially envisioned (ii) financial sus- tainability feasible NGO multilateral agencies. 2006–2007, Funbio formulated comprehensive strategic plan decided pursu- ing scaling projects -orient private sector. Funbio’ ap- proach anchored fact private sec- tor include environment biodiversity projects indicators businesses, due increasing pressure public opinion. 2009, Funbio engaged experiences: Sustainable Juruti Fund. Alcoa’ mining plant Amazon region, Funbio designed pri- vate fund. fund financed Alcoa independent governance based local stakehold- ers decided resources . fund intended mitigate social envi- ronmental impacts externalities create region. Mphanda Knwa, Mozambique. inaugurated Funbio’ “-shore” operation. territory approach stakeholder identification Mozam- bique, Brazilian company building hydroelectric dam called Mphanda Knwa. interest similar Alcoa’ case – mitigate impacts working closely local stake- holders. Environmental compensation. Thirdly, Fun- bio developed model implement- ing resources environmental compensation, Brazilian legal mechanism designed mitigate impacts private sector investing - port protected areas. mechanism received proposal US$ 33 million large ener- gy generation project Amazon. potential impressive private sector eager mechanism. voluntary, private sector part conservation process “tax payer”. lessons learned PICUS mind, Fun- bio Brazilian Environmental Ministry (MMA) negotiated GEF project called Probio II 2006 2007, objective main- stream biodiversity productive landscapes. Funbio’ role engage private sector, working closely public sector, keeping mind im- portant lessons learned ARPA ( involves government agencies). Probio II logic PICUS – .. large- scale projects focused multiple environmental agendas territory aiming long-term sustainable impact. difference PICUS Probio II clear focus private sector lever- age ( ratio 3:1) Funbio’ resources cre- ated “opportunity fund” finance projects territory. answer lack assurance Funbio observed PICUS - garding financial resources. Probio II started 2007 Funbio 334. BioTrade case studies time negotiating companies showing great interest kind approach. proceeding years approach Funbio’ focus addressing private sector. , Funbio negotiated possibility strengthening work Juruti Alcoa, incorporating lake management forestry. Funbio worked International Finance Corporation’ (IFC) Biodiversity Agriculture Commodi- ties Programme (BACP). focus biodiversity mainstreaming commodities , Brazilian case, soya sugar cane. Funbio participated selecting projects implement soya crops. sectors large impact territory biodiversity, important projects ad- dressing issues show path devel- opment – sustainable interesting private sector engage . 4.8.4 Organizing small-scale business , working big companies practical large-scale projects place, small-scale sustainable production important providing differ- ent options people living economic stress close important biodiversity areas, put pressure natural resources ( subsistence illegal activities logging). Funbio learned ARPA experience places small municipalities Ama- zon region, project expenses close pro- tected areas create set service providers start protected areas revenue source. , put pressure natu- ral resources engage illegal activities. , Funbio studying link- age start line work prepare small businesses municipalities provide services projects financed Funbio. idea project revenues locally create positive externality local economy grow benefit biodiversity conserva- tion projects. problem local economies consist informal businesses, lack effective busi- ness management. , approach work business formalization manage- ment strengthening. works, create “green-driven economy” services sustainability . long run, objective change local economy sees environmental projects develop- ment obstacles development opportunities. 4.8.5 Incentive measures aim Funbio provide innovative financial mechanisms biodiversity conservation, generate incentives engagement pri- vate sector activities conservation sustainable biodiversity. , fulfil mission, Funbio integrates tasks aimed creating innovative solutions strengthen- ing networks: , Funbio generates financial incentives social incentives . Social incentives Services Funbio limited financial support, aims enhance human social capital clients, local ca- pacity building networking. instance, Probio II encourages companies adopt principles prac- tices comply sustainable biodiver- sity. project, Funbio supports adoption management practices models aims reducing environmental impact produc- tive chain. Owing support, skills, knowledge abilities private actors sustainable practices enhanced. , Funbio acting liaison private public sector created supportive cohesive environment actors adopt sustainable practices. 2006, Funbio launched “Sustainable Dialogue” initiative sponsored Alcoa, aimed discussing topics related en- gagement private actors sustainable development biodiversity conservation. initiative created platform actors – government, civil society academia – participate exchange experiences opinions. Sustainable Dialogue held June 2007 focused biodiversity stakeholder en- gagement. looked issues “ search sustainability contribute stakeholder relationships companies’ governance brand- 34 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY ing processes.” event focused “global warming biodiversity”. topics defined event, issues international sustain- ability standards, corporate image economic consequences adopting sustainable practices addressed.59 Funbio considers coordination institutions working natural resources conservation funda- mental. Fund increased networking efforts 2007 order participate discussions innovating financial mechanisms biodiversity conservation sharing experiences lessons learned. , Funbio leadership Latin American Caribbean Network En- vironmental Funds (RedLAC).60 Funbio hosts networks: Brazilian Environmental Funds Network Conservation Finance Alliance. Financial incentives operation, Funbio financial - port sixty projects Brazil. total, close US$ 110 million invested conservation projects:61 based associations, universities, companies NGOs, developed biodiversity - servation projects including enhancing production facilities, access markets, aggregation product differentiation, business plans , supported public project ARPA. Funbio identifies opportunities - servation investment, creates mechanisms supply financial resources meet - servation investment priorities directs funds strengthen conservation programmes. acts “financial middle agent, transforming investments strategic capital directed conservation.”62 4.8.6 Lessons learned learning process, Funbio observed challenges faced private actors developed financially viable approach allocation loans – approach aimed generating greatest impact terms scope length biodiversity conservation. Small-scale projects face continuing chal- lenges Funbio observed tended fail long run. challenges include macroeco- nomic disturbances, lack effective management systems, intricate bureaucracy/legislation high taxes. appeared projects lacking clear plan achieve financial sustainability ten- dency perish financial support Funbio ceased. helping projects, Funbio’ impact biodiversity ephem- eral restricted small scale, Funbio de- cided focus larger projects. , Funbio’ approach evolving time, cre- ating opportunities small businesses. Funbio considers small-scale sustainable production important provide options people living economic stress close important biodiversity areas, put pressure natural resources. Fund analysing opportunities create small businesses. Funbio’ experience private sector began years , importance environmental issues sector changed larger companies. Working private sector today involves aspects – developing ways compliance additional voluntary biodiversity offsetting. creation, Funbio innovative approaches including resource leveraging, business planning, , building knowledge experience, changing support complex projects impact larger areas. , strategy effective approach- es pipeline include encouraging association local economies development paths sustainable services products, promoting services products needed -site proj- ect implementation. approaches link big businesses small-scale local economies working create conditions implementation multiple environmental agendas territories. Funbio believes achieve bigger sustainable biodiversity impacts. Funbio believes collaboration actors essential optimize impacts bio- diversity. Funbio developed ini- tiatives Sustainable Dialogue programme holds presidency RedLAC. strengthening social capital, Funbio generates social incentives engagement private actors activities give high regard conservation sustainable biodiversity. 355. BioTrade incentive measures 5. BIOTRADE INCENTIVE MEASURES illustrated case studies informational paper support trade positive incentive mea- biodiversity conservation, UNCTAD Bio- Trade Initiative partners addressing policy environment, supply capacity market access intervention strategy targets problems levels.63 step process ensure prospective BioTrade businesses vi- . respect, analyze market potential BioTrade products services. defined BioTrade Criterion 4.1, Bio- Trade focuses products “potential mar- kets exist”. today’ markets, increasing demand natural sustainable foods medicinal cosmetic products, derived environmentally responsible socially conscious practices. market strong developed countries, Germany Netherlands actu- ally growing decade. EU, , CBI (Centre Promotion Imports developing countries) reports annual growth approximately 20 cent natural cosmetics markets years. 2008, expected exceeded 64 clear market poten- tial BioTrade good service, BioTrade Initiative partners engage variety approaches promote sustainable responsible trade biological resources , strength- en capacities conserve biodiversity. , approaches considered “tool kit” Bio- Trade incentive measures. 5.1 Market incentives strong market demand organic products widely . organic foods, consumers interested health aspects, ethics, ecological - tegrity, food safety quality (.. taste). - , buying organic sustainable products evokes feeling good.65 study Swiss market, , reveals environmen- tal awareness animal welfare reasons buying sustainable products.66 consumers increasing demand natural, healthy, “green” socially responsible products, opportunities emerging companies fulfil BioTrade principles criteria.67 short, consumer demand today tangible market incentive BioTrade. , increasing market po- tential BioTrade products services, - main challenges private actors face order capture potential. , market information, strategic partnerships, market access strategies tools developed order support private actors accessing niche BioTrade markets sustainable practices. practi- cal, --ground market incentives promoted BioTrade network highlighted case studies PhytoTrade Africa, Union Ethical BioTrade partnership - tween Nativa Cosmetic Valley. 5.1.1 Market access support UNCTAD BioTrade Initiative partners, knowledge niche markets selected BioTrade chains, provide guidance, information, contacts services companies wanting gain access, maintain expand mar- ket share local, regional international markets. , Nativa developed information- based partnership Cosmetic Valley enhancing access BioTrade products South America Europe. Enabling policy environment BioTrade busi- nesses Companies working BioTrade face challenges NTBs (-tariff barriers) hinder access mar- kets. respect, BioTrade Initiative platform private public actors local, national international levels liaise address NTB challenges. platform, challenges accessing markets brought attention policy makers discussions undertaken - port formulation policies enabling sustain- trade BioTrade products services. , work carried contrib- uting fairer treatment traditional/BioTrade foods EU Foods Regulation (EC . 258/97). work brought , gov- ernments, universities, specialized consulting firms, SMEs, MNCs (multinational corporations), scientific communities, multilateral organizations, regional - ganizations, finance institutions, donor agencies, civil 36 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY society organizations, law firms business asso- ciations. undertaken research agenda helped guide policy-related discussions. time – bilateral discussions regional multilateral forums – BioTrade Initiative engaged government representatives negotiators consultative processes. work Phyto- Trade Africa baobab note- worthy respect. , BioTrade policy platform generates mar- ket incentives addressing challenges policy-making access markets. , generates social incentive creating networks chains BioTrade stakeholders. reliable market information lack access reliable informa- tion timely manner major constraint business -public actors general. Efforts BioTrade partners compiling analysing informa- tion selected markets support businesses decision-making processes. information tool BioTrade companies establish objectives, strategies plans, identify key partners potential buyers prioritize products higher market potential. information generated BioTrade networks includes: General market surveys. surveys pro- vide general market trends information relevant BioTrade, including information production, demand, imports, exports, prices opportuni- ties exporters developing countries.68 information exporters understand characteristics niche markets country region. Market briefs. provide concise overview market specific products. information market developments trade sta- tistics. Newsletters, concepts experts special- ized publications. informal documents distributed BioTrade partners providing market trends discussing issues affecting BioTrade selected chains. Specific trade information platforms. Elec- tronic platforms selected sectors BioTrade companies established “-stop shopping” centre members access market information, technical specifications oth- er types information support businesses accessing markets expanding current . instance, Colombian National BioTrade Pro- gramme created OBIO ( National BioTrade Ob- servatory)69 publishes analytical information promising markets, BioTrade companies products Colombia’ biodiversity. Contacts niche markets SMEs general difficulties learning contacting potential buyers countries regions. situation worse BioTrade SMEs attempting connect foreign niche markets interested environmentally friendly socially - sponsible practices. support BioTrade – trade fair participation, organization buyer- seller missions B2B programmes – major tool companies overcome barrier establish contacts potential buyers interested BioTrade products. participation trade fairs, BioTrade - panies exposed markets function requirements, current competition market trends, product innovation technology. Examples benefits trade fair par- ticipation include development packag- ing, certifications organic fairtrade, quality improvements acquisition adaptation equipment, . , relationships potential buy- ers sellers reinforced , business partnerships, trade fair participation generates social incentives. highlighted case studies, BioTrade business partnership established Colombian associa- tion Nativa French association Cosmetic Val- ley. partnership expanded access markets BioTrade products Nativa complementary product offer Cosmetic Val- ley, developing capacity members joint research development projects. facilitation access niche markets Bio- Trade products services, enhancing dia- logue stakeholders issues NTBs, market information, participation trade fairs B2B partnerships, generates practical mar- ket incentives biodiversity conservation sus- tainable biological resources. 375. BioTrade incentive measures 5.1.2 Market differentiation Differentiating BioTrade products services market critical adequately positioning products opportunities sustainable develop- ment incentives conservation. Companies aim recognized market efforts adopting sustainable practices, UNC- TAD partners considered concrete ways differentiate BioTrade products services. organized workshops, creating dialogue platform stakeholders including busi- nesses public actors specialized intellectual property rights. possibilities - sidered. hand, verification framework BioTrade products developed potential bridges explored existing certification schemes. hand, distinctive signs, “Appellation Origin” collec- tive trademarks assessed. Verification certification differentiate products services markets, Ethical BioTrade Verification Framework tool companies develop work plans vali- date progress compliance BioTrade principles criteria. framework enhances market recognition ethical, environmental quality standards BioTrade products services. verification framework B2B relations, labelling scheme product claims compliance. BioTrade experience supporting - ply chain natural ingredients, sector se- lected priorities development verification framework derived BioTrade principles criteria. Ethical BioTrade Verifica- tion Framework native natural ingredients developed 2007. discussed case studies, implemented UEBT B2B level, BioTrade country pro- grammes develop implement activities. , UEBT suc- ceeded bringing private sector companies chain seeking ways verify commitment sustainable responsible Bio- Trade. , pioneering work UEBT demonstrating multilateral initiative support multilateral environmental agreement main- streamed private sector good sense business biodiversity. Distinctive signs Distinctive signs, geographical indications, potential tools differentiate BioTrade products markets.70 UNCTAD partners support- ed development studies identify unique characteristics BioTrade products relation geographical origin, production processes qualities reputation attributed essentially provenance. Geographical indica- tions referred “Appellation Origin”. Collective trademarks considered im- portant marketing tools producers BioTrade companies. generate - solidate niche markets, premium price. Geographical indications protect identity qual- ity standards BioTrade products preserv- ing enhancing reputation market share, maximizing economic incentives BioTrade activities. recognition physical environmental factors traditional practic- es linked product, geographical indications potential promote sustainable relevant components biodiversity protect structures knowledge maintained . , geographical indications costs limitations considered order determine application relation BioTrade products. respect, feasibility stud- ies developed support UNCTAD national BioTrade programmes Colombia, Peru Ecuador species borojó (Alibertia patinoi), maca (Lepidium peruvianum Chacon) cocoa Ar- riba flavour (Theobroma cacao .), . collective trademarks - plored. strategy collective trademarks develop common concept image identifying SMEs products . include quality standards implemented - der mark. Companies logo. trademark property - sons applied property state, case “Appellation Origin”. highlighted case studies, trademarks play critical role small, rural BioTrade associations Jambi Kiwa Ecuador. 5.2 Social incentives discussed, social incentives focus 38 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY enhancement skills, knowledge abilities improved access training technolo- gies, development supportive cohesive environment actors pursuing shared goals adopting sustainable practices. addition market incentives, BioTrade array social incentives. 5.2.1 Strengthen skills, knowledge abilities BioTrade Initiative partners provide guid- ance technical assistance enhance local ca- pacities developing sustainable practices. designed commercial chain approach, ecosystem adaptive management approach explained : ecosystem approach based holistic vision integrating ecological social issues, interactions processes - volved productive system. practice, plan- ning productive processes related BioTrade initiatives undertaken ecosys- tem approach. guarantees initiatives environmentally socially responsible regard impact species, habitats lo- cal communities.71 Adaptive management implemen- tation corrective measures systems - basis, based process continued mon- itoring. case management biological resources, adaptive management monitoring impacts (environmental, social economic) ecosystems populations resulting biological resources.72 context BioTrade, adaptive management contributes implementation sustainable prac- tices, identification impacts species eco- systems continual improvement BioTrade initiatives.73 order guide BioTrade actors sus- tainable species’ management, 2009, UNCTAD BioTrade Initiative published Guidelines De- velopment Implementation Management Plans Wild-collected Plant Species Organizations Working Natural Ingredients. guidelines based experiences Plurinational State Bo- livia, Brazil, Colombia, Ecuador, Peru, Uganda Viet Nam. countries participatory approach facilitates exchange information - lectors, intermediaries companies.74 guidelines benefit BioTrade actors pro- vide cost effective methodologies compliance BioTrade principles criteria, implementation good agricultural practices defined WHO (World Health Organization) improvement quality standards required supply chain. National programmes provide technical assistance - ganizations development management plans specific species. , training organized enhance individual skills abilities – .. human capital – adoption sustainable practices. -public actors, companies , BioTrade business tool enhance internal control systems guaranteeing sus- tainable species harvested collected improving documentation traceability needed accessing international markets. technical assistance, BioTrade organiza- tions improve sustainable practices quality products provide - added products. enhances negotiating power BioTrade organizations local, national international markets. , improvement hu- man capital act social incentive increased access international markets BioTrade products. case studies highlight critical importance strengthening skills knowledge. , case TreeCrops programme Malawi striking covers range skills knowledge needed -- ground management biodiversity resource opening important international markets. Bio- Trade approach leads development skills knowledge levels order access mar- kets, increase values ensure sustainability. 5.2.2 Strengthening social capital BioTrade Initiative partners provide support strengthen “social capital” - stood social structure enabling people coor- dinate action order achieve desired goals ( sustainable trade biodiversity products ser- vices). Social capital enhanced creation BioTrade networks, strengthening BioTrade chains creation sector associations. Creation BioTrade networks creation BioTrade networks link national, regional international organizations chains, BioTrade commerce implemented integrated manner. 395. BioTrade incentive measures private sector actors interact regularly, instance workshops meetings. structure strengthens social capital BioTrade actors facilitating sharing experiences achieve- ment common objectives promotion enabling environment BioTrade products. discussed earlier platform creat- ed order support adoption development friendly regulation foods. Regional workshops organized Latin America Africa brought stakeholders involved BioTrade. workshops formulated recommenda- tions policy makers contribute fairer treatment traditional foods, based experiences. cases development BioTrade networks include unique partnership Nativa - metic Valley – essentially partnership net- works. , UEBT providing insights de- velopment international networks chains. Strengthening BioTrade chains order provide assistance creation - hesive social structure selected BioTrade products, BioTrade Initiative adopted chain approach. UNCTAD BioTrade Initiative sees strengthening chains critical element facilitating implementation good practices - lated sustainable conservation biodi- versity promoting equitable sharing envi- ronmental, social economic benefits chain actors.75 strengthening chains helps facilitate coordination actors increase competitiveness sector. , BioTrade Criterion 3.1 emphasizes importance interaction chain actors en- gagement . actors assess contribution creation pro- vides solid footing negotiating ad- equate price equitable sharing mon- etary -monetary benefits. BioTrade partners provide technical assistance strengthen chain BioTrade products. instance, UNCTAD BioTrade Initiative set methodology based experiences BioTrade national programmes operating Plurinational State Bolivia, Colombia, Costa Rica, Ecuador, Peru Uganda, aimed supporting chains BioTrade products – Guidelines Methodology Support Chains BioTrade Products (2009). methodology includes mapping chain actors. actors chain char- acterized, problems accessing current potential markets identified solutions problems sought. Focused strengthening relationships actors chain BioTrade products, chain approach enhances social capital BioTrade private actors. steps chain methodology consists activities lead achievement tangible results. reflected Figure 376 showing support processes BioTrade chains. case studies, strengthening chains evident case study Phy- toTrade Africa succeeded linking remote BioTrade suppliers developed markets Europe North America. required strategic ap- proach identifying BioTrade products de- velop markets addressing array challenges opportunities chain. case study Caiman yacare Plurinational State Bolivia highlights implementation chain approach allowed genera- tion confidence relationships chain actors design management plans - herent local realities. result, cohesive supportive environment sustainable trade Cai- man yacare developed. Sector associations interesting approach strengthening “- cial capital” creation sector associations. BioTrade Initiative partners supported development / strengthening sector asso- ciations PhytoTrade Africa Nativa. UNCTAD BioTrade Initiative partners - ported PhytoTrade Africa strengthening viable enduring natural products industry southern Africa based natural resources accessible poor rural pro- ducers. existence PhytoTrade Africa permits development supportive cohesive structure natural product industry southern Africa. Owing strengthening network chain actors services members, PhytoTrade Africa acts incentive measure engagement southern African -public actors (busi- nesses, NGOs) sustainable activities. information PhytoTrade Africa case study . 40 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY UNCTAD BioTrade Initiative partners support Nativa, BioTrade products ingredients Andean-Amazonian trade association. creation Nativa aims develop cohesive sector natural - gredients cosmetics, pharmaceutics food industries, based native products Andean Amazon region comply BioTrade prin- ciples criteria. fair equitable sharing benefits respect indigenous - munities rights essential organization chains. network created Nativa services, sector association acts incentive measure engage -public actors conserva- tion sustainable biodiversity. , working , businesses gain greater ca- pacity facilitate access products inter- national markets. , creation trade association acts market incentive en- gagement private actors sustainable practices. 5.3 Financial incentives BioTrade Initiative, adherence BioTrade principles, considered “financial incentive” generate access financial - sources needed develop sustainable businesses. , initiative facilitates mobi- lization funds national level date managed leverage significant funds.77 funding implementation national regional Bio- Trade programmes obtained pub- lic actors. addition, highlighted case studies, private Bio- Trade funds created facilitate access fi- nance -public actors engaged conservation sustainable biodiversity. includes po- tential foreign direct investment BioTrade enterprises. focused financing BioTrade companies, Fondo Biocomercio funds en- businesses develop products access markets. strictly adhering BioTrade principles, noted case study, Fund finance powerful driver develop Bio- Trade sector Colombia. larger scale, Funbio developed innovative financial packages support develop- ment biodiversity-based businesses. , funding programmes highlighted opportunities challenges scaling funding type businesses. 5.4 Physical incentives BioTrade projects, physical equipment pro- vided reduce environmental impact compa- nies’ production modes. Owing strengthening physical capital, productivity companies quality products improved , Bio- Trade companies sell products bet- ter prices. strengthening physical capital increases, productivity companies increases, costs produc- tion reduced higher benefit ob- tained. national BioTrade programmes facilitated provision equipment compa- nies. , Jambi Kiwa Ecuador received tea-bagging machine quality control laboratory BioTrade support. Figure 3. support process BioTrade chains Identification sectors potential Selection chains Participatory assessment chain Formulation sector strategy Implementation Participation chain actors List products services Product groups Selection matrixes Strategic analysis Gathering information Mapping GAP analysis Strategic lines work Formulating work plan activities Validation strategy Implementation strategy Analysis problems solutions Prioritizing solutions Prioritizing 416. Concluding remarks 6. CONCLUDING REMARKS 6.1 BioTrade incentive measures framework , case studies presented information paper provide start platform develop BioTrade - centive measures framework identifies key chal- lenges drivers. section illustrates framework time summarizes key insights coming case studies. section, development framework presented recom- mendations steps programme work BioTrade incentive measures. preliminary framework section - cludes : 6.1.1 Innovative partnerships – Nativa - metic Valley - Partnership BioTrade association competitiveness cluster - Converting sustainable biological - sources source technical market innovation - Accessing global markets - nership) - Market incentives – access niche markets interested sustainable responsible prac- tices, broader competitive product range - Social incentives – experience knowledge sharing enhanced, development joint & projects - Financial incentives – shared funding - search development market promo- tion access - Market demand natural sustainably produced cosmetic products - Creation business partnership - creases competitiveness members enables knowledge-sharing 6.1.2 Ensuring sustainable supply – PhytoTrade Africa - Trade association natural products sec- tor - Ensure existence adequate - ply base meet demand products launched market - Access global markets NPs - Develop implement strategic marketing strategies, product based ingredients marketplace - Market incentives – support obtain product certification, access markets fulfil regu- latory requirements develop commercial partnerships - Social incentives – develop skills sustain- production, harvesting compliance quality standards broaden social net- work - Ensure reliable supply chain, strengthen - cial capital support generation reli- markets BioTrade products 6.1.3 Integrated marketing strategies – TreeCrops - Sustainable formal trade baobab - Develop implement strategic marketing action plans, product based ingredients marketplace - Market incentives – EU market entry TreeCrops’ baobab, approval PhytoTrade Africa’ application EU United States America, approval PhytoTrade Africa’ application markets, instance partici- pation trade fairs - Social incentives – enhance skills, abilities social networks - Market access European Union 42 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY - Expansion formal employment owing creation TreeCrops 6.1.4 Direct financial support – Fondo Biocom- ercio - Private fund BioTrade businesses - Facilitate access finance broaden knowledge financial institutions risks opportunities BioTrade businesses Incentive measures - Financial incentives – tailored funding mecha- nisms meet capacities Bio- Trade business grow access markets - Access funding BioTrade companies adapted business practices - Strong knowledge BioTrade-related sectors financial institution 6.1.5 Trading CITES-listed species – Bolivian Bio- Trade - Sustainable CITES-listed species - Lack cooperation chain actors - Policy constraints measures limited sustainable harvest biodiversity, consid- ering biological characteristics - Market incentives – stable supplies skins meat access prices - Social incentives – enhance skills, abilities knowledge producers sustainable prac- chain actors - Participative chain approach joint elaboration management plans valuing local knowledge practices 6.1.6 Community-based BioTrade – Jambi Kiwa - Community-based SME dedicated sustain- production processing - introduce concepts -man- agement institutional strengthening, mar- ket access quality differentiated products - Market incentives – product differentiation certification inclusion BioTrade practices, access environmentally - cially responsible markets business part- nerships - Social incentives – enhance skills, abilities knowledge members, organizational strengthening enhanced networks - Financial incentives – operational micro- credit facility Jambi Kiwa members - Physical incentives – improvement facilities equipment (,. tea-bagging machine, ventilators quality control laboratory) - Product differentiation based sustainable practices local culture - Organizational strengthening - international standards 6.1.7 Verifying promoting BioTrade – UEBT - Market differentiation BioTrade products companies - Develop market-based recognition commit- ments BioTrade principles supply Bio- Trade goods services - Market incentives – differentiation scheme member companies - Social incentives – international networking BioTrade businesses - Financial incentives – facilitation access funding - Market recognition UEBT key driver communicating objectives promoting mission 6.1.8 Innovative financial support – Funbio - Private finance biodiversity-based business- es - Financial sustainability beneficiary compa- nies - Social incentives – sustainability dialogues exchange practices lessons learned - Financial incentives – innovative funding mech- anisms meet capacities 436. Concluding remarks BioTrade business grow access mar- kets - Develop invest regional portfolio linked sustainability projects international workshop, case studies reviewed details. process resulted number general observations. - er prerequisite success BioTrade - periences. instance, case PhytoTrade Africa, failures observed successful ini- tiatives replicated account existence limited market demand. fauna negative public perceptions fauna-based products distinguish species product (.. shampoo crocodile skin products). defined. interesting classi- fy incentives chain iden- tify chain actors targeted order impact entire chain positively. activities related conservation sustain- biodiversity, risks associ- ated type activity. concept “ac- cess benefit sharing” exists, interesting introduce concept “access risk sharing”. diminishing risks seasonality factors. support build capacities local level connect chain actors sector. important prerequisite sustainability initiatives. - tance specific created niche intermediaries. Fondo Biocomercio - cial services, offer technical assistance beneficiaries. adapted type size companies. - stance, case cocoa Ecuador, easy funds traditional bank (.. Dutch bank Rabobank). , case small SMEs Jambi Kiwa, kind loan difficult obtain creation microcredit revolving fund suitable. 6.2 steps information paper clear, work UNCTAD BioTrade Initiative generated set - centive measures sustainable responsible biological resources. part, voluntary, market-based measures engage private sector activities supporting conservation biodiversity. experience date solid basis strategically develop programme work BioTrade - port implementation CBD MEAs CITES. steps include : Development BioTrade incentive mea- sures framework Building cases paper prelimi- nary framework presented , rigorous structured framework BioTrade incen- tive measures drafted. COPs CBD spaces discuss incentives sustainable biodiversity. Development BioTrade handbook highlighted cases, - siderable amount guidance materials BioTrade principles criteria, UEBT standards guidelines information notes. compiled BioTrade handbook serve key reference document BioTrade businesses supporters. Report biodiversity “capital” BioTrade impacts biodiversity conservation regard, report focus - crete biodiversity indicators. Expanding BioTrade’ regional national programmes , BioTrade’ experience South America southern Africa. BioTrade pro- grammes developed Southeast Asia (Viet Nam Indonesia) efforts - tinue strengthening expanding activities Asia Middle East. ad- dress opportunities challenges BioTrade regions. Developing BioTrade approach marine ecosystems , BioTrade’ experience terrestrial ecosystems. , 44 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY significant benefits applying BioTrade ap- proach marine ecosystems. Establishing BioTrade programme work CBD UNCTAD BioTrade Initiative consis- tently recognized parties CBD significant contribution implementation CBD. upcoming strategic review CBD’ programme work, oppor- tunity include BioTrade formal component programme. Developing BioTrade programmes biodiver- sity-related conventions case study Plurinational State Bolivia demonstrated, BioTrade pro- vide significant contribution CITES. play significant role addressing role sustainable responsible biological - sources conventions, notably Ramsar UNCCD. instance, BioTrade represent opportunity REDD. provide frame- work facilitate sustainable forests. Plurinational State Bolivia, instance, ways linking BioTrade REDD - plored. Connections BioTrade - tergovernmental Platform Biodiversity Eco- system (IPBES) developed . BioTrade scale (.. big businesses) BioTrade applied scales interesting explore biodiversity approaches act scales. instance, enhancing sustainable biodiversity big businesses encouraging creation devel- opment biodiversity businesses consid- ered. Recognition BioTrade potential “Trade people” focus amounts trad- ed potential trade. Bio- Trade Impact Assessment System overcome challenge. Essentially, BioTrade incentive measures making important contribution conservation biodi- versity. work UNCTAD BioTrade Initia- tive partners broadened enable countries ecosystems benefit BioTrade approach sustainable respon- sible biological resources. 45 References Belz (2001). Integratives Ökomarketing Erfolgreiche Vermarktung ökologischer Produkte und Leistungen. Wi-Wi- esbaden. Bond (2001). CAMPFIRE incentives institutional change. : Hulme , Murphree MW,eds. African Wildlife Livelihoods. Promise Performance Community Conservation. James Currey Publish- ers: 227-243. Suffolk. 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United Kingdom. 47 -line information, publications documents: BioTrade Initiative, www.biotrade.org. CBD, www.cbd.int. Cosmetic Valley, www.cosmetic-valley.. Fondo Biocomercio Colombia, www.fondobiocomercio.. Funbio (2008), 2007 Annual report, www.funbio.org.br/publique/web/media/rel2007.pdf. UEBT, www.ethicalbiotrade.org. Personal communications : Ansel , Cosmetic Valley. Bejarano , Fondo Biocomercio Colombia. Cendales , Fondo Biocomercio Colombia. Darricau , UNIDO service France. Feltesse , UNIDO service France. Llobet , Fundació Amigos de la Naturaleza (FAN). Urrea , Labfarve BioNativa. References 48 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY Notes 1 Marion Klein worked consultant BioTrade Initiative UNCTAD 2009. 2 Lorena Jaramillo Castro Economic Affairs Officer BioTrade Initiative UNCTAD. 3 Francis Vorhies Director Earthmind, --profit sustainability network. working consultant UNCTAD BioTrade. 5 UNCTAD (2007a). 6 BioTrade beneficiary countries Plurinational State Bolivia, Brazil, Colombia, Ecuador, Peru Uganda. , works southern Africa PhytoTrade Africa (Botswana, Malawi, Namibia, Mozambique, South Africa, Swaziland, Zambia Zimbabwe). National programmes develop- ment Viet Nam Indonesia. 8 UNCTAD (2006a). 9 Pearce, . Moran, . (1994). 10 European Communities (2008), 27. 11 OECD (1999). 12 CBD (2007). 13 OECD (1999) CBD (2007), 3. 14 , side event organized CITES Standing Committee meeting July 2009 aimed “making private sector full partner CITES implementation”. Private actors expressed concerns, related complexity length CITES procedures. , private sector favour creation “informal network” business CITES Secretariat. 15 CBD Secretariat (2004a). 16 CITES (2007). 17 Ramsar (2002). 18 Ramsar (2008). 19 information incentive measures, : www.cbd.int/incentives/positive.shtml. 20 UNCTAD (2009b). information, UNCTAD publication UNCTAD/DITC/BCC/2008/1. 21 Chambers, . Conway, . (1992). 22 DFID (1999). 23 Note Table 1 excludes categories property rights fiscal incentives direct responsibility governments key features BioTrade Initiative. 24 Cosmetic Valley: www.cosmetic-valley. - farve BioNativa, . Darricau Caroline Feltesse, UNIDO service France. 25 association BioNativa created 2006 brings actors natural ingredients sec- association BioNativa created 2006 brings actors natural ingredients sec- tor Bolivia, Colombia, Ecuador Peru. Nativa member BioNativa. 26 Yves Darricau, Deputy Head UNIDO, France. 27 Brochure Colombia – Native Biodiversity World Beauty, Bogotá Cundinamarca Region. 28 www.cosmetic-valley.. - nies, research centres educational institutions, working partnership ( common develop- ment strategy) generate synergies execution innovative projects interest markets”. information, visit website: www.competitivite.gouv.fr/spip. phprubrique39&lang=en. 30 www.cosmetic-valley./en/developpement1.php. 31 case study prepared Itai Chibaya Nontokozo Nemarundwe PhytoTrade Africa. 32 Gelb, . (2003)- ; Murombedzi, 33 Le Breton, . (2009). 49 34 Welford, . Le Breton, . (2008). 35 Le Breton, op. cit. 36 Le Breton, . (2008). 37 case study prepared Itai Chibaya Nontokozo Nemarundwe PhytoTrade Africa. 38 References case study include: interviews John Bejarano (Executive Director) Marí Helena Cendales (Evaluation Monitoring Senior Executive), Fondo Biocomercio Colombia Fondo Biocomercio Colombia : www.fondobiocomercio.. 39 DTF (fixed-term deposit) rate main benchmark short-term interest rate Colombia. calculated published weekly Colombian Central Bank. indexing services behaviour DTF variable interest rate, fund propose costs linked Colombian market situ- ation. 40 PNBS - FAN - CAF (2009). 41 information http://iucncsg.org/ph1/modules/Publications/action_plan1998/cyaca.htm. 43 Original Community Lands indigenous peoples defined Law . 1715 National Service Agrarian Reform. title indigenous original peoples possibility owning collective property recognizes exploit sustainable manner renewable resources lands. -renewable natural resources regulated National Political Constitution special laws approved issue. Land resources , trans- ferred, taxed, seized, reverted prescribed. Community rules regulate distribution redistribution individual access natural resource. Source: http://web.worldbank.org/WBSITE/ EXTERNAL/COUNTRIES/LACEXT/BOLIVIAEXTN/0,,contentMDK:21310704~pagePK:1497618~piP :217854~theSitePK:322279,00.html. 44 UNCTAD (2009b). 45 CPIB represents important group TCOs Beni Department, northeast region Pluri- national State Bolivia. 46 CBD (2005), . 15. 48 CORPEI Exports Investment Promotion Corporation Ecuador. 49 CORPEI op. cit. OAS op.cit. 50 revolving fund account repeatedly expended, replenished expended . Loan principal repayments interest revenues subsequently loans (US EPA, 2000). 51 translated Spanish English. OAS (2008). 52 case study prepared Maria Julia Oliva, Senior Adviser Access Benefit Sharing UEBT. 53 - History Union Ethical BioTrade United Nations Ethical BioTrade. 54 UEBT (2009a). 55 UEBT (2009d). 56 Similar UNCTAD BioTrade principles criteria. 57 case study prepared ábio Leite Funbio. 58 References case study include: Funbio (2008). 59 Funbio (2008), .40. 60 Ibid., .41. 61 Ibid., .10. 62 Ibid., .14. 63 UNCTAD (2005), . 5. 64 ProFound (2009). 66 Kilcher al. (SIPPO/FiBL) (2004), .13. 67 -section based master’ thesis research Maria Klewer undertaken collaboration UNCTAD-BioTrade Initiative. Notes 50 THE BUSINESS OF BIOTRADE: USING BIOLOGICAL RESOURCES SUSTAINABLY AND RESPONSIBLY 68 UNCTAD (2006c), . 24. 69 information, : www.fondobiocomercio.. 70 UNCTAD (2007b). 71 UNCTAD (2007a), .2. 72 CBD (2004b). 73 UNCTAD (2007a), .2. 74 UNCTAD (2009a). 75 UNCTAD (2007a), . 2. 76 UNCTAD (2009b). 77 UNCTAD (2005), .7. Ph ot cr ed : © hy Tr ad Af ric , en Ja ra ill , pe , Fo lia Printed United Nations, Geneva – GE.13-51757 – February 2014 – 498 – UNCTAD/DITC/BCC/2009/4
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