Background

The GSI Phase II Project “Ecological and financial sustainable management of the Guiana Shield Eco-region” aims to promote the sustainable development of the Guiana Shield by means of an integrated eco-regional (policy, institutional, financial) management framework, designed to enable the six countries (Brazil, Colombia, French Guiana, Guyana, Suriname, Venezuela) and their local communities to benefit form their natural resources. One key element of the project is to set up and implement field-based pilot projects in order to gain operational experience with financing environmental services and goods, in various cultural and economic contexts. This is to allow for experimentation of various compensation systems and start up several innovative livelihood projects to generate income for those living in or near the project area. Pilot project sites will be selected based on existing experiences during GSI Phase I. One of the key issues/conditions is the identification and selection of the entitled counterpart, a local partner organisation, for each pilot site.

Building the national capacity to coordinate environmental management and the capacity to implement related programmes are key requirements for Guyana to fulfill its obligations under international environmental agreements as well as its own national sustainable development goals.

Project activities in the GSI continue to be implemented through the UNDP Country Offices.

Objectives

The over all objective of the project is to promote the sustainable development of the Guiana Shield by means of an integrated eco-regional (policy, institutional, financial) management framework:

• To enable the six countries and their associated local communities to benefit from their natural resources.
• To preserve ecosystem functions (climate, water, biodiversity)
• To make a significant contribution towards poverty alleviation and resource management by the local inhabitants.

Achievements and expected results

Demonstrating innovative financial mechanism for forest conservation
The GSI Phase II project will establish pilot field-based projects in at least three countries of the Guiana Shield, with the exception of French Guiana, which is ineligible by virtue of it being a department of France. In Guyana, a pilot project will be established at the Iwokrama Field Station, Kurupukari, Region 8 (see below for information on the Iwokrama Programme). The aim of the pilot projects is to set up and implement innovative financial mechanisms for forest conservation and sustainable management. Each pilot project will have an element of sustainable livelihood generation. The elements of the strategy include:

• Development of ecosystem management contracts and benefit sharing mechanisms for implementation of a financial mechanism
• Development and implementation of an ecosystem monitoring system as a verification tool for the financial mechanism
• Study on market mechanisms and payment systems for environmental services

Regional institutional capacity development
In order to ensure lasting conservation and sustainable use of the Guiana Shield Eco-region’s unique natural resources, the institutional and political framework of the GSI will be developed and strengthened. The project will build on previous and ongoing initiatives, including GSI Phase I, the Amazon Cooperation Treaty Organisation and the PPG-7. The aim is to set up lasting arrangements within the context of the Multilateral Environment Agreements and international conventions (e.g. CBD, Kyoto Protocol), and based upon local and national ownership. It is anticipated that the development of a regional institutional framework and the transition of the project to the eco-region will result in the transfer of ownership.

Strategic value of the project
The value of intact tropical forests will be demonstrated in several pilot areas. Direct payments will be made for those ecological goods and services which have an emerging market (carbon sequestration, watershed protection) or do not yet have an obvious market (biodiversity). The decision on whether to focus diversification of national economies in the region towards renewable resources, i.e. environmental goods and services, will benefit from the lessons of the pilot projects. Ultimately, the project will draw regional and global attention to the benefits of maintaining intact ecosystems, and demonstrate that a payment system for ecological services is feasible. The pilot projects should generate international donor money to replicate the compensation schemes.

Last Revised:  February 2008