Investing in sm es within the natura 2000 network

Investing in SMEs within the Natura 2000

Network

Zenon TederkoThe Polish Society for the Protection of Birds (OTOP)

&Mark Day

Royal Society for the Protection of Birds (RSPB)

Biodiversity Technical Assistance UnitTo create pro - biodiversity business in SME sector

in Poland, Bulgaria, Hungary

Project funded by EC DG Environment (2006 - 2010)

Project implemented by Partners: RSPB, MME, OTOP, BSPB with ECNC

Project Steering Committee: EC, EBRD and EIB

What is the BTAU Project?

What are our project objectives?

1. Support development of SMEs in the EU that contribute to EU sustainable development objectives

2. Contribute to long-term management of the Natura 2000 network by applying a PPP approach to create a new biodiversity investment market

3. To create the two instruments:

– Biodiversity Technical Assistance Units

– Biodiversity Financing Facility

• 23 million enterprises

• 75 million jobs

• 57% GNP

How important are SMEs in the EU?

75%

57%

99.8%

What are the key SME business sectors?

Why is Natura 2000 important?

In EU:• World’s largest network of

protected areas under law• 17% of EU area• 860,000 km2

• Over 25 000 sites• Primarily rural areas

In Poland:• 19 % area of the country• 498 sites

What financial constraints apply to Natura 2000 implementation?

• Unattainable annual management costs: €6 - €10 billion for EU27• Limited funding sources: EU (for projects), to some extent state

budget (e.g. management plans).

• Absence of dedicated preferential funding for rural SMEs in and around Natura 2000 sites, that are often already at an economic disadvantage

What obstacles restrict private sector activities in Natura 2000 sites?

• Inadequate understanding what Natura 2000 means to the private sector creates risk and uncertainty for investors & businesses alike - “ bad for business and bad for development?”

• No mechanism to understand what opportunities exist for business adaptation or development?

What components does the financial instrument require?

• Accessible and attractive preferential loans to SMEs

for development of pro-biodiversity investments

• Incentivised finance and technical support for banks

• Advisory service providing technical assistance that

connects SMEs, site managers and banks

• Natura 2000 management prescriptions from which

investment criteria can be developed

How do preferential loans improve SME environmental performance?

• Improving energy efficiency

• Reducing carbon emissions

• Reducing air and water pollution

• Reducing waste and increasing recycling

• Driving environmental certification schemes

• Creating micro-enterprises

Main project achievements • Methodology and tools developed to identify and assess pro-

biodiversity SMEs and projects

• Demand studies confirmed that numerous potential pro-biodiversity businesses in primary, secondary & tertiary sectors

• A portfolio of pro-biodiversity investment opportunities developed, with business operations compatible with management prescriptions

• Independent Biodiversity Technical Assistance Units established in Bulgaria, Hungary & Poland

• Financial instruments are being designed to capitalise on the latent market for ‘pro-biodiversity businesses’

Conclusions

• SMEs are an essential element of rural economies and are key to long-term management of the Natura 2000 network.

• Pro-biodiversity business activities can help to implement and maintain Natura 2000.

• Preferential SME loan facilities are proven to improve specific environmental performance in businesses.

• EU 2013 – 2020 financial perspective should offer significantly more pro-biodiversity business development opportunities.

Natura 2000 - ‘good for nature & good for business’?