The Role of the Private Sector on the Implementation of the Convention on Biological Diversity

1TITLE OF THE EVENT

The Role of the Private Sector on the Implementation of the Convention on Biological Diversity

2PLACE AND DATE

SENAI-CIETEP – Centro Integrado dos Empresários e Trabalhadores das Indústrias do Paraná

Av. Comendador Franco, 1341

Jardim Botânico

Curitiba, Paraná

Tel: (41) 32187777

March, 23 th and 24 th 2006

3OBJECTIVE

Demonstrate, through a debate forum, successful experiences from the Private Sector, presenting how their actions where implemented, the path throughout products development and creation of innovative financial mechanisms for conservation and sustainable use of the biodiversity, within the framework of the Biodiversity Treaty. The Eighth Conference of the Parties (COP 8) of this global treaty sounds as the right place for such debate.

4JUSTIFICATION

The Convention on Biological Diversity or Biodiversity Treaty has three pillars: the conservation, the sustainable use and the fair and equal distribution of the benefits, focusing the implementation of the sustainable development. The concept of sustainable use conditions the introduction and the implementation of methodologies and processes for the use of the biological resources, preventing its decline, in the long term, and maintaining its use potential for this and future generations.

The 10th Article of the CBD indicates an agenda for the sustainable use, where, among other items, we have: “encourage the cooperation between the government authorities and the private sector in the development of methodologies for the sustainable use of the biological resources”.

After the “World Summit on Sustainable Development” (Johannesburg, 2002), the commitment with the sustainability got much more evident and the challenge of involving the private sector has shown to be basic for the implementation of the CBD.

Many successful international initiatives of the private sector for the conservation and sustainable use of the BD already implemented, these best practices strengthen the 10th Article and demonstrate the role of the biological resources for the sustainability. The companies may be primordial actors on the implementation of the CBD. The ways that were used, on different successful experiences, are useful to mark out the success of the commitment of the private sector and to demonstrate the difficulties (regulatory, institutional and financial) that exist. These difficulties have to be improved by the official instances that regulate the CBD in their own countries.

Capital is crucial for resource and development as well as to leverage an innovative and expanding sector. Eventhough existing successful initiatives are encouraging, we still need a much more pragmatic debate and interaction among the most important stakeholders: academy, companies, financial institutions and regulators.

4.1what is the meaning of carrying through the 8th confernce of the parties (cop) of the cbd in Brazil?

The Conference of the Parties (COP) is the decision supreme agency within the Convention on Biological Diversity. The COP meetings take place every two years on a caster system among the continents. It will be a great meeting, in which participate: 188 Official Delegations, members of the Convention on Biological Diversity (187 countries and a regional block); observers of non-associated countries; representatives of the most important international organisms (including the UN institutions); academic organizations; non-governmental organizations; enterprise organizations; aboriginal leadership; press and others observers.

Each COP meeting lasts two weeks, with two parallel work sessions. Every day preparatory meetings are carried out with the regional political groups of the UN (Latin America and Caribbean, Africa; Asia and Pacific; East Europe and Middle Asia; and Occidental Europe, Canada, Japan, Australia and New Zealand; as well as the Group of the 77 and China; and the group of the “mega-diverse countries”).

Approximately 100 short parallel events about special subjects and initiatives are carried out during lunch and dinner breaks, which we considered insufficient time for the goal of the seminar. During the second week the Ministerial Segment of the COP, in which more than hundred ministers of the environment of all continents participate on the meetings.

The COP 8 meeting will result in the approval of important decisions of great interest for the country and of great international repercussion. The private sector attraction is one of the main objectives.

4.2 the importance of carrying a Seminar through the 8th conference of the parties (cop) of the cbd in Brazil.

This is the first time Brazil will host an official meeting under the CBD.

The accomplishment of the Conference of the Parties of the CBD (COP 8) meeting, together with the Conference of the Parties of the Cartagena Protocol about Biosafety (MOP 3) meeting, will provide the country an excellent opportunity for:

Improving the envolvement of representatives of different government sectors and of the civil society to participate, to inform themselves and to influence the decision making process about biodiversity in an international level;

promoting a wider international spreading of the brazilian inumerous and successful experiences of biodiversity management, many of them unique in the world;

promoting a wider spreading of the potential of sustainable use of the brazilian biodiversity, including forest resources, fishing resources, genetic resources, ecological tourism, within others;

promoting the establishment of additional international partnerships, benefiting the brazilian biodiversity;

marking the political significance of the biodiversity for the country and for South America, in general; and

improving the significance of the brazilian national interest on the international negotiations on biodiversity.

The COP 8 meeting will result on the approval of important decisions, resultants from intense preparatory processes and from negotiation, including:

negotiation meetings of the Open Workgroup about Benefits Access and Distribution, one in Thailand and another in Spain;

meetings of the Open Workgroup about Traditional Knowledge (Article 8j), in Canada;

meetings of the Subsidiary Agency for Cientific, Technician and Technological Advice (one in Thailand and another in Canada);

meetings of the Open Workgroup about Protected Areas, in Italy and in Canada;

meetings of the Open Workgroup about Implementation of the Convention, in Canada;

different meetings of Specialists Workgroups for different subjects.

5INSTITUTIONAL PARTNERSHIPS

5.1organization and coordination

FundaçãoBrasileirapara o DesenvolvimentoSustentável - FBDS

RuaEngenheiro Álvaro Niemeyer, 76.

São Conrado

22610-180 – Rio de Janeiro - RJ

ConfederaçãoNacional das Indústrias - CNI

SBN Quadra 01 Bl. C. Edifício Roberto Simonsen

70040-903- Brasília - DF

Federação das Industrias do Estado do Paraná - FIEP

Av. Cândido d e Abreu, 200 – 6 andar

80530-902 Curitiba – PR

5.2sponsors

Klabin S.A.

Rua do Rocio 109 - 6º andar

Vila Olímpica

04552-000 São Paulo, SP

Banco Itaú BBA

Financiamento de Projetos

Av. Brigadeiro Faria Lima, 3.400 - 3º andar

Jardim Paulistano

04538132 São Paulo – SP

UNCTAD Biotrade Initiative

Palais des Nations

Genève 10

CH-1211

5.3support

ANBID

Associação Nacional de Bancos de Investimento

Av. Brigadeiro Faria Lima, 2179 – 2º andar

Jardim Paulistano

01451-001 São Paulo - SP

BNDES

Av. República do Chile, 100 – Centro

20031-917 - Rio de Janeiro – RJ

Biodiversity Environmental Finance Group IFC

2121 Pennsylvania Avenue. NW

Washington D.C. 20433

USA

Fundo Brasileiropara a Biodiversidade - FUNBIO

Largo do Ibam, 01/ 6º andar.

Humaitá
22271 070- Rio de Janeiro - RJ

Ministério do Meio Ambiente - MMA

Secretaria de Biodiversidade e Florestas – SBF

Esplanada dos Ministérios

UICN - Union Mondiale pour la Nature

Rue Mauverney 28

CH - 1196 Gland

Suisse

UNEP/FI/LATF

15, Chemin des Anémones

1219 Câtelaine – Genève

Switzerland

World Resources Institute - Market and Sustainable Enterprises

10 G Street, NE, Suite 800

Washington, DC 20002

6Event description

It will be a two days Seminar on March 23th and 24th , divided in two segments:

The Best Practices – Case studies of successfuland innovative business that had conquered an important position on the national and international market, based on sustainable use of the biodiversity. Each case study will discuss how to have significant added value throughout the development of products as well as the constraints, bottlenecks and missing links on production and distribution chains.

The case studies were selected among different Latin America projects. Small and medium size family organizations have reached national and international market, as a clear evidence of the value addition focus on regional biodiversity products and traditional knowledge. These best practices had passed through the scrutiny of important international organizations (Biotrade and New Venture Capital – WRI). The products are certified and made by companies committed to sustainable development.

The seminar will also present successful commercial initiatives in the global biotech market.

Financial Mechanisms – What kind of capital has currently been used for the biodiversity business development? Who are the major players in the financial business regarding biodiversity business? Which side is most predominant for financial analysts – the risk or the opportunity side? Venture capital and ethical funds are still niches for the conscious consumers and investors or are self-promoting pieces? Credit and equity for prestigious pharmaceutical, agribusiness and veterinarian corporations are considered risky investments? Are those investments a sign of a growing market ? What is the actual appetite of the financial sector and investors for biodiversity business – niche and/or mainstream and how to select good opportunities? What is the regulatory framework and how it works – organizer or a time demanding, complex and costly requirement? How to scale up the small businesses?

The presented financial mechanisms are available not only in Brazil and will be divided into grants, concessional credits lines and private equity offered by government, multilateral agencies, foundations and private entities.

There is a consensus that a common language must be developed among the major players of the biodiversity community in order to establish a bridge linking science to business. Nevertheless, there are still a few original and specific market instruments for biodiversity, if we compared to the piles of initiatives in the Climate Change Convention.

It is also recognized by the CDB Secretariat that the lack of appropriate economical and financial mechanisms are a threat for the attendance of the 2010 established targets (“enrollment of the private sector, through sustainable business, as a way to reduce the significant biodiversity loss tax”).

7AGENDA

FIRST DAY MARCH 23TH 2006

9:00 -9:30 / Registration / Seminar Secretariat support
9:30 – 10:00 / Opening Session / Guido Mantega / President
BNDES – National Development and Social and Economic Bank
Rodrigo C. R. Loures / President of the Industry Federation of the State of Paraná
Armando Monteiro Neto / President
National Industry Confederation
Catherine Cassagne / Environmental Finance GroupIFC Project Officer Biodiversity
Israel Klabin / President of FBDS´ Board of Trustees
Luiz Rós / WRI – World Resources Institute
Global Manager for Market and Enterprise
10:00 – 10:30 / Key Notes on Biodiversity and sustainability / Thomas E. Lovejoy
10:30 – 11:00 / COFFEE BREAK
Session 1 BEST PRACTICES. Debate on successful business on the sustainable use of biodiversity. Innovative examples of high added value products with consolidated position in national and international market.
First Roundtable
President: Israel Klabin
11:00 – 11:30 / LINAX – Brasil.
Leader in the substitution of the threatened Amazon boi de rose for perfumery by the linalol from basilicum among other sustainable products. / Nilson B. Maia
11:30 – 12:00 / Agropalma Brasil
First industrial plant of dendê palm oil focusing the substitution of the diesel as fuel. It will start substituting 100% of the internal consumption with this biodiesel. It is the first one to conquered the certification for refining organic oils. / Marcello Brito
12:00 – 12:30 / President´s Comments
12:30 – 14:00 / LUNCH
Second Rountable
President : Lucas Assunção
14:00 – 15:30 / Roundtable on biodiversity and small and medium business. This roundtable discussion on biodiversity and small and medium businesses will focus on the opportunities and the challenges of commercialization of biodiversity goods and services. The roundtable will be introduced and moderated by a journalist.
Some of the guiding questions for the discussion will be:
Biodiversity: why does it matter to small businesses?
- Is there a role for small business in biodiversity conservation and sustainable use? How can they contribute to the CBD objectives
- Using biodiversity for marketing differentiation, do consumers care?
- Sustainable use and profits: myth or reality?
- Sustainable use and quality management; what's the link?
- What are the positive impacts of BioTrade companies and their value chains on biodiversity?
- What incentives would get more companies on board for the cause of biodiversity conservation? / Lucas Assunção
Frank Vorhies
Nicholas Cock Duke
Roberto Culloti
Alfredo Menacho
Susan Bingi
Gus Le Breton
Gustavo Urrea
Third Roundtable
President: Rodrigo C. R. Loures
15:30 – 16:00 / Projeto Monte Alegre - The first FSC certified phytotherapic initiative in the world / Reinoldo Poernbacher
16:00 – 16:30 / Phytomédica Aché- Brazil
Prestigious pharmaceutical company created a new business area called Phytomedica focusing research and development of phytomedicines from vegetable species, with partnerships with national research institutes and universities / Victor Siaulys
16:30 – 17:00 / Centroflora Group –Brazil – South American leader in P&D of essential oils and phyto extracts for pharmaceutical, cosmetical and food industries. The groups main goal is to achieve the sustainability of the whole production chain. / Peter M. Andersen
17:00 – 17:30 / President´s Comments
17:30 / Closing Session

SECOND DAY MARCH 24TH 2006

Schedule / Activity
8:45 – 9:10 / Opening / Israel Klabin / President of FBDS´ Board of Trustees
Maurício Mendonça / Coordenador da Unidade de Competitividade Industrial - CNI
Session 2 – The Convention on Biological Diversity and the Regulatory Issues. This section will present the CBDs principles, targets and instruments, created to acquire the knowledge of the environmental assets of a significant area. Despite of the complexity involved in this knowledge, there are already national and international consecrated methodologies for the evaluation and monitoring, with indices. This section will show, through empiricist examples, the role of the instruments on the attendance of the principles and targets of the CBD.
President : Gonzalo Castro
09:10 – 9:30 / Biodiversity Treaty – Pillars, goals, targets and mechanisms for implementation. Major constraints (scientific, methodologies, metrics) - IUCN / Joshua Bishop
09:30 – 9:50 / Regulatory framework – legal and programatic obstacles – Dannemann Simens Lawyers / Thereza Wolff
09:50 - 10:10 / The new phase of implementation of the BDC in Brazil / Bráulio Dias
10:10 – 10:30 / President´s Comments
10:30 – 10:50 / COFFEE BREAK
Session 3 – Financial Mechanisms. What are the available mechanisms? What are the challenges? Who are the players?
President: Maria Silvia B. Marques
10:50 – 11:10 / UNEP-FI Experience on financing biodiversity initiatives - LATF / Julien Haarman
11:10– 11:30 / Credit and Equity – Role of the development bank and the different mechanisms and programs (green business development, Social Fund, specialized programs - BNDES / Eduardo Bandeira de Mello
11:30 – 11:50 / Policies and Programs: Venture Capital of the Stractus Business Bank and the Brazilian Association of Venture Capital / Álvaro Gonçalves ou
Philippe Lisbona
11:50 -12:10 / President´s comments
12:10 – 13:30 / LUNCH
Session 4 – The Role of the banking sector. Experiences of multiple banks in social and environmental investments
President: Henri Philippe Reichstul
13:30 – 13:50 / Policies and Programs of ITAUBBA / Maria Estela Ferraz de Campos
13:50 – 14:10 / Policies and Programs of HSBC / Yossef José Nasser
14:10 – 14:30 / Policies and Programs of Rabobank / Hessel Abbink Spaink
14:30 – 14:50 / Attracting the private sector – funding in the different phases of a biodiversity business development – IFC / Catherine Cassagne
14:50 - 15:10 / President´s Comments
15:10 – 15:30 / COFFEE BREAK
Session 5 - Improving Scale. Enhancing Business Opportunities on Biodiversity
President: Luiz Maia
15:30 – 15:50 / New Ventures initiatives - WRI / Luiz Rós
15:50– 16:10 / Fundação Biominas – Brasil
Non profit foundation dedicated to help innovative businesses in biotechnology. Three main areas: new business generation, new business development and sector development unit. / Eduardo E. Soares
16:10 – 16:30 / Biotechnology in Brazil – ABRABI – Associação Brasileira das Empresas de Biotecnologia e FIR Capital Partners Ltda. / Guilherme Emrich
16:30 – 16:50 / Biodiversity Mainstream and Private Sector / Pedro Leitão
16:50 – 17:10 / A New Venture Capital Platform for Biodiversity Projects in Brazil / Ralph Wehrle ouPaulo Belloti
17:10 -17:30 / President´s Comments
17:30 -17:50 / Final Key Notes Gustavo Fonseca (CI)

Days 25 and 26 – field trip to Klabin S.A. forest plantation to visit the Monte Alegre Phytotherapic operations, certified by FSC and the first Brazilian biodiversity corridor.Potential participants, please send an e-mail to for reservations.

The Role of the Private Sector on the Implementation of the Convention on Biological Diversity