Experiences with the Private Sector in Biodiversity

Conservation and Sustainable Use

FUNBIO

Brazilian Biodiversity Fund

May 10, 2007

Matching Funds for Projects of Common Interest.

• Ratio: 1:1 or 1:1.5• Proposals Negotiated: 70• Proposals Contracted: 10• Total Value Contracted as Donations: US$ 6.3 million• Average Project Value: US$ 630 thousand• Status: All operations are executed and finished.• Observations: • i. There were no projects without previously defined objectives and

conditions. • ii. Donations were not tax deductible.• iii. All operations were volunteer and unattached to fiscal or legal obligations

Contributions to Amazon Region Protected Areas Program (ARPA)

• Two volunteer donations of US$ 1 million each to ARPA’s endowment fund (FAP), from two well known Brazilian cosmetic industries.

New Corporate Social and Environmental Responsibility

Objective: Solutions, ideas, instruments for guaranteeing long term financial sustainability to:

• i. Volunteer social and environmental initiatives.• ii. Mitigation and/or compensation of social and

environmental impacts generated by productive and commercial initiatives.

Companies and Status: • AES, initial phase of negotiation for design of a new

fund; • AIG, initial phase of negotiation for carbon offsetting

mechanism;• Alcoa, design and operation of a fund;• Camargo Correia, first contact made.

Public Institution’s Interest in the Private Sector.

Objective: Solutions, ideas, instruments, institutional reforms for facilitating and attracting investment/leveraging/matching with the private sector:

Public Environmental Funds: • FECAM, State of Rio de Janeiro, Secretariat of

Environment, reform of existing fund, and design of two new funds;

• Fauna Fund/Sea Fund, Public Attorney & IBAMA, design and operation of a fund.

Co-management of National Forest• Flona Irati, Public Attorney and IBAMA, design and

operation of a fund.