UNCTAD BioTrade Initiative: Implementation Strategy

UNCTAD/DITC/TED/2005/5 ENGLISH ONLY United Nations Conference Trade Development UNCTAD BioTrade Initiative Implementation Strategy Geneva, March 2005 BioTrade Initiative Implementation Strategy Elaborated UNCTAD BioTrade Initiative Geneva, March 2005 biotrade@unctad.org TABLE OF CONTENTS 1. Introduction .................................................................................................................................. 2. Rationale...................................................................................................................................... 3. Mandate......................................................................................................................................ii 4. Intervention strategy ...................................................................................................................ii 5. Funding......................................................................................................................................iv 6. Complementarity interventions ............................................................................................... 7. Definitions, concepts approaches........................................................................................ 8. Lessons learned ........................................................................................................................vi 9. Priorities 2005-2006..................................................................................................................vii BioTrade Initiative Implementation Strategy 1. INTRODUCTION BioTrade Initiative UNCTAD' programme supports sustainable development trade investment biological resources line objectives Convention Biological Diversity1. aims giving concrete expression concept sustainable biodiversity reconciling biodiversity conservation development aspirations local communities biodiversity- rich areas developing countries. BioTrade Initiative UNCTAD' Section Biodiversity Climate Change Trade, Environment Development Branch/Division Trade Goods Services Commodities. creation 1996, Initiative formed partnerships international national organizations establish programmes enhance capability developing countries produce -added biodiversity products services. time, increasing number countries benefited assistance offered Initiative. BioTrade Initiative gained significance launch partnerships support trade biodiversity UNCTAD’ Partners Development Summit (1998, Lyon, France). 1999, UNCTAD started assist Governments number Latin American countries development National BioTrade Programmes. partnerships announced World Summit Sustainable Development (WSSD) Johannesburg (2002) UNCTAD XI ã Paulo (2004). partnerships support biotrade ventures access finance trade promotion, facilitate development Regional BioTrade Programmes. period, UNCTAD managed Initiative coherent evolving beneficiary countries, line national development priorities, experiences gained BioTrade implementation, international trade agendas priorities. document describes current implementation strategy BioTrade Initiative, takes stock programmes supports, lessons learned, outlines priorities period 2005-2006. 2. RATIONALE Biodiversity2 source products services utilised society. Millions rural people depend biodiversity food, medicines, income, ecosystem services cultural spiritual . , biodiversity essential inputs diverse industries agriculture, cosmetics, pharmaceuticals, pulp paper, waste treatment. Biodiversity lost accelerating rates3, caused widespread overexploitation biological resources, introduction alien species transformation habitats. Biodiversity loss destabilizes reduces productivity ecosystems, weakening ability generate products services, capacity deal natural disasters human-caused stress, environmental pollution degradation climate change. sustainable biodiversity fundamental long-term sustainable development. Developing countries, endowed rich biodiversity, face great challenge combining poverty alleviation economic growth sustainable conservation biodiversity. find ways long-term financing biodiversity conservation, financed external funding. Trade products services derived biodiversity partly solution problem. Research4 shows market interest 1 Convention' objectives conservation biological diversity; sustainable components; fair equitable sharing benefits arising utilization genetic resources. 2 Biological diversity, biodiversity, refers variety life Earth, including variety plant animal species, genetic variability species, variety ecosystems. [www.biodiv.org] 3 Based current trends, estimated 34,000 plant 5,200 animal species face extinction. [www.biodiv.org] 4 , medicinal plants, exotic fruits seeds ingredients increasing number consumer goods phyto-pharmaceuticals, cosmetics, dietary products, estimated market $18.5 billion worldwide year 2000. market intermediate products, including essential oils, natural dyes, latex, fibres, resins, gums medicinal plants; amounts $3 billion US imports exports. BioTrade Initiative Implementation Strategy ii demand biodiversity products services growing, giving countries rich biodiversity comparative advantage. , developing countries lack capacity turn competitive advantage, meaning traded volumes sustainably obtained biodiversity goods services remain . importance trade positive incentive measure biodiversity conservation increasingly recognised national international levels efforts underway promote trade takes account ecological social issues5. Efforts , , directed : 1. Creating enabling policy environment national, regional international levels promotes sustainable trade biodiversity products services; 2. Increasing supply capacity developing countries goods services derived biodiversity, requiring: increasing levels productivity, strengthening technical skills, improving technology, augmenting access finance, promoting alliances actors; 3. Improving market access forging market creation biodiversity goods services, including: enhancing understanding markets; facilitating commercial contacts exporters importers; improving market access; raising awareness consumers. 3. MANDATE BioTrade Initiative derives mandate primarily UNCTAD' Plan Action (Bangkok, 2002, Sao Paulo, 2004) trade related aspects CBD, specifically Article 10 "Sustainable components biological diversity" Article 11 "Incentive measures". responds Commission Sustainable Development (CSD), stresses urgent “ provide incentive measures national, regional international levels stimulate conservation sustainable biological diversity improve functioning markets enhancing developing countries' capabilities compete emerging markets biological resources”. United Nations Millennium Development Goals (MDG) World Summit Sustainable Development (WSSD) stress reconcile goals environmental sustainability, including biodiversity loss, developmental necessities millions poor people natural resources. UNCTAD called MEAs, Convention International Trade Endangered Species (CITES) Ramsar Convention Wetlands. 4. INTERVENTION STRATEGY BioTrade Initiative seeks promote trade investment biological resources support sustainable development, line objectives CBD. establishment partnerships national, regional international programmes seeks strengthen capacity developing countries enhance production -added products services derived biodiversity domestic international markets. order turn trade positive incentive measure biodiversity conservation, UNCTAD BioTrade Initiative partners beneficiary countries, addressing policy environment, supply capacity market access intervention strategy targets problems levels intervention. section outlines strategic areas work identified BioTrade Initiative, specific objectives activities. 5 Commission Sustainable Development (CSD), World Summit Sustainable Development (WSSD), Convention Biological Diversity (CBD), Convention International Trade Endangered Species (CITES), Ramsar Convention Wetlands (Ramsar). BioTrade Initiative Implementation Strategy iii Strategic areas work: strategic areas work identified: 1. National BioTrade Programmes national level, UNCTAD assists developing countries development establishment National BioTrade Programmes order strengthen institutional capacity develop policy frameworks support BioTrade provide technical assistance BioTrade initiatives. Programmes formulated Brazil, Costa Rica, Paraguay, Uganda, Venezuela. National programmes executed : Bolivia, Colombia, Ecuador, Peru. 2. Regional BioTrade Programmes Complementary National BioTrade Programmes, UNCTAD assists organisations formulation implementation regional programmes promote biotrade. regional programmes typically develop regional strategies policies favour BioTrade provide concrete support implementation. Programmes developed supported Andean Amazonian regions Latin America Southern Africa. 3. International policy environment UNCTAD inputs international processes policy formulation related trade biodiversity, trade-related sections Multilateral Environmental Agreements (MEAs), order support establishment enabling environment biotrade. 4. Cross-cutting issues UNCTAD assistance specific issues related trade, export, sustainable investment order complement work developed -mentioned strategic areas. issues, include export promotion, match-making importers exporters, improvement market access, trade-related legal issues, addressed cross- cutting manner (.. national, regional international levels). UNCTAD’ efforts depend priorities national regional programmes. Specific objectives: view , specific objectives BioTrade Initiative : 1. assist developing countries formulation implementation National BioTrade Programmes; 2. assist Inter-Governmental Organizations formulation implementation Regional BioTrade Programmes; 3. provide inputs international policy making processes related trade biodiversity; 4. carry technical assistance issues related trade, exports, investment related biotrade. Activities: realise objectives, UNCTAD undertakes activities: Facilitating international discussions decision-making UNCTAD participates relevant intergovernmental processes creates platforms discussion context processes. includes organizing workshops roundtable events. , meetings Conference Parties Multilateral Environmental Agreements (MEAs), UNCTAD parties additional information specific issues related trade biodiversity shares experiences major United Nations international conferences. Research analysis UNCTAD, partners, conducts collects case studies develops tools trade investment products services derived biodiversity. tools designed Governments, private sector, NGOs, academia, local indigenous communities, international organisations. covers, , design methodological proposals, elaboration market studies, gathering existing experiences identification practices. information disseminated Governments civil society technical assistance activities. BioTrade Initiative Implementation Strategy iv Technical assistance Technical assistance cooperation specialised partners, forms, including: provision training workshops, provision technical inputs work partners, financial support partners implement activities apply test methodologies. Technical assistance UNCTAD targeted Governments national service providers (.. institutional strengthening export promotion organisations, focal points BioTrade programmes, private sector associations, NGOs). Initiatives private sector local indigenous communities important indirect beneficiaries UNCTAD, serviced national service providers specialised international agencies ( ITC, CBI SIPPO). INTERVENTION LEVELS UNCTAD ASSISTANCE International policy environment - International policy making processes (.. MEAs, trade policies) - Specific inputs (.. case studies) - Creation platforms discussion (.. side events) Regional BioTrade programmes - Design regional strategies policies - Support implementation strategies - Assistance formulation - Support coordination exchange experiences - Support implementation process National BioTrade programmes - Promote enabling policy environment - Strengthen chains - Provide technical assistance - Disseminate information - Establish networks - Assistance formulation - Facilitate implementation (.. mobilise funding, forge partnerships) ro ss tt su es Trade (export promotion): - Market access market creation - Trade-related legal issues - chain development - - Product development quality improvement Sustainable : - Sustainable practices - Implementation management plans Investment: - Improved access finance - Improved access foreign direct investment 5. FUNDING Resources obtained UNCTAD assistance formulation national regional BioTrade programmes financing assistance cross-cutting issues related trade investment. activities Initiative funded extra-budgetary resources, obtained specific donor-funded projects. approach multilateral/bilateral support adopted decentralise decision-making maintain lean headquarter operations. Funding implementation national regional BioTrade programmes coming contributions national Governments institutions, beneficiaries, bi-lateral multilateral donors. UNCTAD facilitates mobilisation funds national level; leverage significant funding. Governments Netherlands, Norway Switzerland United Nations Foundation (UNF) main donors BioTrade Initiative , including national regional BioTrade Programmes. BioTrade Initiative Implementation Strategy 6. COMPLEMENTARITY OF INTERVENTIONS UNCTAD advocates integrated approach, inducing strategies account wide spectrum issues related trade biodiversity. important assure levels forms intervention UNCTAD BioTrade Initiative complementary efforts duplicated. relevant view advocated partnership approach, assistance cross-cutting issues, search decentralised decision-making, multilateral bilateral funding channels. assure complementarity: 1. attention paid coordination activities. Andean region, regular coordination meetings held main actors. BioTrade Facilitation Programme, Advisory Board composed donors, partners beneficiaries meets year review progress formulate advice. 2. strategy, succinct overview - activities, partners -dated continuously. , partners, donors beneficiaries information develop common understanding BioTrade Initiative. 3. Information BioTrade activities regularly disseminated BioTrade partners news- letters, web-site intergovernmental meetings. 4. Regional BioTrade Programmes formulated close cooperation BioTrade partners. Special attention paid roles responsibilities organisations, complementarity ongoing activities. 5. UNCTAD’ technical assistance cross-cutting issues demand-driven guided agreed goals clear work-plans. 7. DEFINITIONS, CONCEPTS AND APPROACHES order guide interventions, BioTrade Initiative adopted number definitions, concepts approaches. important mentioned hereunder. term BioTrade refers activities collection/production, transformation, commercialization goods services derived native biodiversity (genetic resources, species ecosystems), criteria environmental, social economic sustainability. regard, special emphasis : 1. sustainable native biological resources; 2. promoting productive strategies activities support sustainable conservation areas high biodiversity ; 3. generation equitable sharing economic benefits local indigenous communities. UNCTAD promotes biotrade account actual market demand involving variety partners. chain approach adopted tool forge alliances actors, assure integrated approach raw material supply delivery consumer. UNCTAD partners adopt approaches eco-system approach, adaptive management, sustainable principles. Principles criteria guide implementation national regional BioTrade programmes translate sustainable development goals practical actions. Support BioTrade initiatives comply principles criteria. principles guide BioTrade Initiative: Principle 1: Conservation biodiversity Principle 2: Sustainable biodiversity Principle 3: Equitable sharing benefits derived biodiversity Principle 4: Socio-economic sustainability (management, production markets) Principle 5: Compliance national international legislation agreements Principle 6: Respect rights actors involved BioTrade activities Principle 7: Clarity land tenure, access natural resources knowledge BioTrade Initiative Implementation Strategy vi 8. LESSONS LEARNED lessons learned integrated strategies BioTrade Initiative. include: • Partnerships great multiplier effect, coordination activities time-consuming albeit crucial. Transparency mutual trust essential. Success depends capacity partners respond deliver, defined roles expectations. • -called Biotrade sectors ‘young’ sectors time effort required capture trade investment potentials. respect national programmes: • success sustainability National BioTrade Programmes depends : 1) extent programmes embedded Government strategies; 2) ability show concrete results final beneficiaries (.. private sector local indigenous communities); 3) involvement coordination relevant stakeholders (.. government, academics, NGOs, private sector) formulation implementation programmes. • -chain approach tool support BioTrade sectors, prioritisation activities, identification responsibilities development realistic strategies line market potential funding possibilities. • Intervention strategies designed integrated approach, involving environmental, social economic goals beginning onwards. • Active private sector involvement stages essential, identification environmental social responsibilities formulation strategies related . • Innovative finance mechanisms identified BioTrade initiatives order capture potential business. respect Regional BioTrade programmes: • Regional programmes fully complementary National BioTrade Programmes, essential involve national governments national Biotrade Programmes beginning onwards formulation. • Strategic alliances regional partners highly beneficial parties involved, roles, responsibilities, coordination mechanisms defined outset. • Regional exchange experiences great importance advance implementation National BioTrade Programmes promote regional integration cooperation. International policy environment: • UNCTAD play important role disseminating national regional experiences related BioTrade international discussions. Based UNCTAD experience implementing BioTrade Initiative, helps give concrete expression concept sustainable , , tangible , helps promote mutually supportive development, trade promotion biodiversity policies. • Active participation UNCTAD international discussions member states, respect discussions sustainable , incentive measures, trade endangered species, implementation legal issues entrepreneurial level. Cross cutting issues • Definition concrete 'projects' specific outputs important delivering technical assistance trade investment related issues. helps translate difficult issues concrete actions promotes cooperation partners. • Alliances specialised institutions provision tailor- support. • Strong national programmes support export promotion efforts enterprises technical assistance activities specialised agencies. • BioTrade Initiative aim influencing trade negotiations, experience illustrates -tariff barriers faced sectors. • BioTrade beneficiaries adequately informed relevant WTO negotiations agreements related issues ; Trade Related Intellectual Property Rights (TRIPS), Related Intellectual Property Rights (IPRs), Technical Barriers Trade (TBT), Sanitary Phytosanitary (SPS) agreements, traditional knowledge environmental goods services. BioTrade Initiative Implementation Strategy vii 9. PRIORITIES 2005-2006 years, UNCTAD BioTrade Initiative continue work line specific objectives mentioned section 4 document. 2006, UNCTAD expects increases trade flows biodiversity-based products services, result efforts geared building institutional capacity developing countries, -grading business capacities BioTrade ventures generating enabling policy environments national, regional international levels. period 2005-2006, UNCTAD BioTrade Initiative secured extra-budgetary funding strengthen existing National BioTrade Programmes (Bolivia, Colombia, Ecuador, Peru). ways strengthen cooperation policy focal points technical focal points develop mechanism assure long-term financial sustainability operations. continue provide support trade-related issues, BioTrade Facilitation Programme. period, UNCTAD managed secure funding provide technical assistance process formulation subsequent implementation National BioTrade Programmes Brazil, Costa Rica, Paraguay, Uganda, Venezuela. respect Regional BioTrade programmes, UNCTAD obtained extra-budgetary resources strengthen / develop Andean BioTrade Programme, Amazon BioTrade Programme PhytoTrade Africa Southern Africa. context, UNCTAD assist Secretariat CAN identification strategic areas intervention definition roles responsibilities partners. Amazon Cooperation Treaty Organisation (ACTO), UNCTAD direct efforts formulation Amazon BioTrade Programme. Special attention paid involvement Amazon countries process complementarity coordination ongoing activities national regional levels Andean region. Southern Africa, UNCTAD continue support & activities PhytoTrade Africa promote exchange experiences intervention models Latin America Africa. order contribute enabling international policy environment biotrade programmes business ventures, UNCTAD increase cooperation relevant MEAs period 2005- 2006. secured extra-budgetary resources actively participate forthcoming COPs CBD CITES, conduct case studies, cooperate Secretariats MEAs deliver technical assistance. years, UNCTAD continue address cross-cutting issues trade, investment sustainable BTFP. Special attention paid increasing private sector cooperation issues related market access market creation, match-making exporters importers, market studies, trade-related legal issues relevant biotrade enterprises, development sustainable protocols selected chains. 2005- 2006, BTFP operational target regions BTFP (Africa, Asia, Latin America). respect investment, BioTrade Initiative explore opportunities cooperate UNCTAD' Division Investment, Technology Enterprise promote Foreign Direct Investment biotrade sectors. evaluate possibility repeat investor forum biodiversity enterprises, seek partnerships regional development banks promote special credit lines BioTrade businesses.