The BioTrade Initiative: sustainable trade of

biodiversity products & services

Lorena Jaramillo – lorena.jaramillo@unctad.org

Economic Affairs Officer

EIB’s Biodiversity and Ecosystem Services

Overview

1. Importance of BD and

opportunities for sustainably

produced p/s

2. The BioTrade Initiative

3. Lessons learned

I. Importance of BD and opportunities for sustainably

produced products and services

Human wellbeing: food, shelter, medicines, productive soil, clean air, recreation…

Used by different users in different sectors – ingredients and products

Global trends for personal care

• Consumption of cosmetic and toiletries is not restricted to women, but also man.

• Global demand of natural and organic cosmetic and personal care products is significantly growing, particularly for sustainably sourced natural ingredients.

Europe: market grew by 11.7% (2009 to 2010), expected to reach €6 bn by 2015.

Asia expected sales growth of $16.2 billion by 2015 (14% growth rate since 2005).

USA market grew by 11.9% (2010), expected

to reach $6.7 billion in 2015.

Brazil: fastest-growing market with total sales of R$7.5

billion (2010), expected to surpass R$13 billion in 2015.

Source: N Barwa, Indonesia cosmetic association, April 2012

Biodiversity, business and market opportunities

By 2050 (in 2008 prices), sustainability-related global business opportunities in natural resources (energy, forestry, food and agriculture, water and metals) - US$ 2-6 trillion

Source: TEEB – The Economics of Ecosystems and Biodiversity. Report for Business - Executive Summary 2010

Sustainability is extremely or very important for

• Biodiversity is seen as an opportunity (59% of executives)

• may allow their businesses to grow – new products / markets,

• obtain cost savings

• building an environmentally responsible reputation

• comply with regulations

Source: McKinsey Global Survey, March 2010

• 70 % of the world's poor live in rural areas & directly depend on those resources to cover 90% of their needs in terms of food, fuel, medicine, shelter and transportation

• Some 1.6 bn people depend on forest and NTFP for their livelihoods and over 3 bn depend on marine and coastal resources

Opportunity for sustainable practices

Developing countries are rich in BD which is traditionally used, but is being threatened

Need for sustainable pro-poor/feasible economic activities

Initiative that links the conservation, sustainable use and trade of

biodiversity (BioTrade)

In addition to the consumer trends

II. The BioTrade Initiative of UNCTAD

What is BioTrade?BioTrade refers to those activities of collection, production,

transformation, and commercialization of goods and services derived from native biodiversity (species &ecosystems) under the

criteria of environmental, social and economic sustainability.

1. Conservation of biodiversity

2. Sustainable use of biodiversity

3. Fair and equitable sharing of benefits derived from the use of biodiversity

4. Socio-economic sustainability

5. Compliance with national and international regulations

6. Respect for the rights of actors involved in BioTrade activities

7. Clarity about land tenure, use and access to natural resources and knowledge

Principles

Under development: Costa Rica, Indonesia (national). - UEBT: Tanzania, Ghana

Activities are implemented by national, regional and international partners that foster BioTrade, its Principles and Criteria

BioTrade network

Natural ingredients and products for

cosmetics, food and pharmaceuticals

industries

Wild life trade for pets

Flowers and foliage

Crocodile products

Fish products

Handicrafts

Sustainable tourism

Sectors supported

Impact 2011

•Employment 30,000+ individuals @ first stage of the value chain (suppliers)

•Sales US$4.1 billion (€3.1 billion), (growth 17% for 2010 and 76% for 2011)

•Area of influence: 19,3+ million ha

Post-harvesting ProcessingConsumptionCommercial

Production

• Trade fairs, B2B programmes, information • Overcome market barriers: Novel Foods Regulation of the EU• Consumer’s awareness and market differentiation• Funding: credits, factoring

Market access

ProcessingCommercial.Post-harvesting ConsumptionProduction

Fulfilling market requirements:

Enhance facilities of companies, training on GMP, develop VA and high quality products

Processing & quality improvement

Support in implementing GAP

Post-harvesting

Processing ConsumptionCommercialProduction

TA & training for cultivated spps.

Development of management plans

1. Identification of collection areas and collectors

2. Assessment of managed resources

3. Definition of good practices to be implemented

4. Definition of follow-up and monitoring systems

5. Implementing documentation systems

Methodology available at ww.biotrade.org

Post-harvesting Processing ConsumptionCommercialWild collection

TA for wild collected spps.

III. Opportunities & challenges

FinancingFinancing

Common goal with fair distribution of benefitsCommon goal with fair distribution of benefits

Market driven Market driven

Service providers structureService providers structure

Enabling policy environmentEnabling policy environment

Engagement of actors – private & publicEngagement of actors – private & public

Questions and answers

BioTrade is supported by the Swiss State Secretariat of Economic Affairs (SECO), Government of Norway, Spain, The Netherlands, as well as the UN Foundation

For further information: www.biotrade.org

Thank you

BioTrade video: Practical experiences: the food &

fashion sectors

Prepared with the support of the UN TV, the Swiss Secretariat fore Economic Affairs (SECO) and UNCTAD