Conservation Beyond Borders Balancing the Needs of International Development and the Environment Bob Tansey, Ben Roth, Le Zhu Methods Development by Design (DbD) - A set of planning tools to balance development needs with biodiversity conservation. A science-based approach to avoid siting conflicts, maintain biodiversity, and determine suitable mitigation options. Follows the “mitigation hierarchy” of avoid, minimize/restore, and offset to ensure the long-term survival of critical species and habitats. Opportunities The Conservancy will collaborate with Chinese development actors overseas to realize effective conservation outcomes. The application of DbD in the earliest stages of a project’s lifecycle will result in the greatest environmental and economic returns. Key players: In addition to the Local Developer , Chinese Policy Banks and Chinese Contractors play critical roles during the lifespan of an overseas development project. Background China’s ascendant role on the world stage is reshaping global economic and political dynamics. One of the Conservancy’s responses to the globalization of conservation is a new China-based cross-regional initiative, Conservation Beyond Borders. The initiative is focused on four areas we believe will provide the greatest return on investment: 1) Green Development, 2) Project Financing, 3) Responsible Sourcing, and 4) China’s Foreign Aid. © 2011, The Heritage Foundation Biodiversity No net loss for biodiversity Net positive output for biodiversity Anticipated impacts Residual impacts Avoided impacts Minimize/ Restore Avoided impacts Impact offset Avoided impacts Positive contributions to biodiversity Residual impacts From Kiesecker et al. 2009 AVOID MINIMIZE/RESTORE OFFSET Minimize/ Restore TIME “Early warning” & planning: development projects and conservation priorities Selection of offset portfolio & accounting for no net loss 0 Size of offset Goals Green Development – Support Chinese companies in the application of the Development by Design planning framework to avoid and/or mitigate environmental impacts of development through good planning and design of high-value, measurable biodiversity offsets. Project Financing – Improve the environmental sustainability of Chinese projects overseas by incorporating best practices into the application of lending and investment policies of China’s top financing institutions. Responsible Sourcing – Green supply chains through public-private partnerships that strengthen the case for government and businesses to adopt legal and responsible sourcing practices for soy, tropical timber, and palm oil. China’s Foreign Aid– Inform China’s overseas development assistance strategy by demonstrating the value of nature-based aid projects, including through debt-for-nature swaps. Conceptual Project Proposal Mature Project Proposal Project Implementation Concession Loan Pool Trading or Diplomatic Agreement Local Developer Chinese Contractor Chinese Contractor Local Government Chinese Government Chinese Policy BANK Local Developer Opportunities Project(s) Evaluation & Loan Agreement EPC Contract Supervision Supervision Support For Reference Only Approval