Eco-Enterprise Zones: An idea looking for a homeconference.ifas.ufl.edu/aces10/Presentations/Thursday/A/am/Yes/1120 A Todd.pdf“Environmental markets…offer farmers and ranchers

OEMOffice of Environmental Markets

Eco-Enterprise Zones: An idea looking for a home

A Community on Ecosystem Services ConferenceChandler, AZ

Nov 2010

Albert Todd, Chesapeake Bay Team LeaderUSDA Office of Environmental Markets

“We will not be able to sustain our businesses over the long haul because they are based on

assumptions that no longer hold. One was cheap, unlimited supplies of non-renewable

resources would always be available. The other was assuming an unlimited capacity for the

earth's ecosystems to absorb the waste of our production and consumption.

Chad Holliday, CEO, DuPont (2001)


“Environmental markets…offer farmers and ranchers new sources of revenue that also create

public benefits for all Americans, such as clean water, clean air, and wildlife habitat.”

USDA Secretary Tom Vilsack, 2009


"The most urgent priority is to put into practice what we already know, with all the

accompanying warts. We must learn by doing and mistakes will be made, but we

cannot afford to wait for certainty…. because doing better today is more important than

doing the best tomorrow." Craig Cox, SWCS, 2006


History of Enterprise Zones

• 1967 Bill introduced by Sen. Robert Kennedy• 1970’s –first zones established in the UK (Peter Hall)• 1980 Federal regs (HUD); 1981 first State EZs• 1993 Federal tax code revisions stimulated additional

push for use of targeted business incentives in US• Over 450 cities and 26 States have EZ policies


Types of Enterprise Zones• Urban enterprise zones – trigger business investment

in blighted or depressed areas• Manufacturing enterprise zones – to group

businesses and enhance job training• Science and Technology Enterprise Zones – Silicon

Valley and Denver Tech Center• Empowerment Zones and Enterprise Communities –

USDA Rural Development – long-term rural sustainability and diversification


Types of Incentives• Highly diverse and sometimes localized• Tax – waivers, credits (capital gains, investment tax

credit, accelerated depreciation, hiring• Financing – low or no interest loans, endowments• Regulatory – licensing requirements, permit

exemptions, streamlining review, alignment of federal, state, and or local.

• Job training and housing subsidies


Environmental Markets can help …

• Reduce overall costs of restoration• Target and prioritize conservation actions• Facilitate private investment• Create business opportunities • Retain working lands by expanding revenue portfolio• Improve accountability by measuring the products of

conservation and restoration


An Eco-Enterprise Zone is….

a designated geographic area where economic growth and ecological restoration are linked through business, community development and conservation incentives.

Target areas with a growing population need for economic development and job creation critical ecological/environmental restoration needs a supportive regulatory environment


Why Eco-Enterprise Zones?

• Stimulate the development of working models for environmental markets

• Restoration and conservation also require business development

• Like business, restoration investments have risk• There is a need for green job creation


Business Infrastructure for Environmental Markets

BuyersBusiness, sewage plants, cities,

developers, private investors

Landowners (Sellers) Aggregator

VerifierThird party Standards

EntityScientists, NGOs,

& government

Trading Platform

Metrics Credit Registry


Eco EZ Approaches

Tax Incentives

Regulatory Relief

Financing Incentives

Job and practice

Incentives

Environmental Markets


Elements of an Eco-Enterprise program

• Grants to coordinate comprehensive land use and watershed planning with state and federal programs

• Tax credits for business development in Eco-Enterprise Zones• Development of ecosystem services markets providing additional

revenues for local land owners.• Targeted incentives for green job creation and job training• New business tax credits and no interest loans for green

industries that create jobs • Support for community education and sustainability • Support for environmental market design and infrastructure

operation.


Benefits of Eco-Enterprise Zone Concept

• Accelerate testing of environmental market principles• Economic benefits accrue in the same locality as

ecological improvement. • Local businesses pursue triple bottom line• Ecological improvement linked to community well-

being and stability. • Business incentives tied to investments in land

stewardship and ecological health.

Slide 14


Experimental Program: Eco-Enterprise Zones would be selected through a competitive process Criteria for selection could include an ability to:

• use a multi-credit approach to ecosystem services; • deliver strong local alliances with capacity for action; • create new investments in conservation; • engage local regulatory governance; • define operational systems that connect providers and beneficiaries;• deliver revenue directly to private landowners;• have capacity to restore/conserve ecosystems and measure progress.

Implementation would consist of a dedicated 5 year commitment of technical and financial assistance investments, tax incentives, and regulatory relief.


Eco-nomics 101• Jobs from Watershed Restoration

– University of Oregon study (2010) - 16-24 jobs per $M spent ($1 generated $2.40 in local spending)

– Humbolt University, CA study (2010) - 20 jobs per $1 million spent

– University of Massachusetts – ARRA Study –Highest number of jobs created from natural resource conservation and forestry – 2- 40 jobs per $M spent

• Freshwater Trust – restoring 30,000 miles of stream would cost $1.5 billion but create 28,000+ jobs and $3 billion in local spending



Eco-Enterprise Zones: An idea looking for a homeconference.ifas.ufl.edu/aces10/Presentations/Thursday/A/am/Yes/1120 A Todd.pdf“Environmental markets…offer farmers and ranchers

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