This strategy is based on ensuring that a range of government revenues - mostly those associated with natural resource use or environmental damages - are set aside or otherwise specifically allocated for nature conservation actions. This can be done through the use of Environmental Funds, retention of revenues at site or agency levels, or through accounting procedures that assign specific budgetary allocations based on revenues. This is especially important for fees and charges but has also been used successfully in the past for gasoline taxes (Costa Rica) and oil and gas funds. One special case worth noting here is the use of earmarked revenues to establish national “payment for environmental services” (PES, also known as payment for ecosystem services) programs. PES programs have been implemented mainly for watershed management objectives and are often associated with water funds – a type of environmental fund generating revenue from water tariffs (see Fees and Charges). In addition to the example from Costa Rica, Mexico has a national PES program for land restoration and management that combines national earmarked funds with local and regional water funds and other forms of public private partnerships.
Earmarking and retention of biodiversity revenues (self or “own” income)
Increasing the amount of taxes, fees, and other financial revenues derived (or not) from biodiversity related resources that are earmarked (ring-fenced), retained or returned for direct use on sustainable biodiversity management. The retention or return of these revenues can align incentives of various actors, increased funding available, and improve service provision. There is a risk that they produce an incentive to overuse resources for an organization's financial gain. This is often more politically feasible when revenue share partially goes to sustainable development. Examples - PA fees in Galapagos - all go to treasury then 50% back to municipalities, address livelihoods of artisanal fisheries to reduce pressure on biodiversity.
Lotteries
Governments and civil society groups using lotteries as a means of raising funds for benevolent purposes such as education, health, historic preservation and nature conservation. The lotteries are a form of gambling that involves the drawing of lots for a prize, and include instant games, lotto, and electronic terminals. In Europe and the USA, some wildlife trusts and conservation organizations receive a large part of their funding from the proceeds of lotteries.
Earmarking of taxes on financial transactions
Tax placed on a specific financial transaction, such as the purchase or sale of equity instruments, options and forward contracts, or foreign currency transactions. The revenues obtained maybe earmarked or guaranteed for biodiversity or related spending. For example, a share of the French financial transaction tax will be allocated to the capitalization of the Green Capital Fund.
Earmarking of taxes on currency transactions
Tax placed on a specific type of currency transaction. The most frequently discussed version is the Tobin tax which is intended to put a penalty on short-term financial speculation in the forex (foreign exchange) market. The revenues obtained may be earmarked or ring-fenced for biodiversity or related spending.
Conservation or wildlife themed items
Special commercial products featuring wildlife are sold at an extra price to costumers and the extra revenues are channeled to environmental causes and projects illustrated by the product/item, mostly related to conservation and the protection of wildlife. Examples include, license plates, special ringtones and screensavers (mobile communication), gifts sold at zoos, etc.
Conservation License Plates
Special license plates featuring wildlife images that are sold at a higher price to car owners. The extra income is channeled to environmental causes and projects illustrated by the plate, mostly related to conservation and protection of wildlife. This practice is used in many states in the USA.
Products sold for conservation or wildlife
A range of products from chocolate, water bottles, toys, cloths, etc. are developed and sold to help generate profit for conservation and endangered species. A significant percentage of profit should go to target NGOs or conservation efforts or the product may be seen as benefitting from marketing nature while not actually contributing (green washing).
Payment for Ecosystem Services – State Intermediation and/or fee
Beneficiaries/users of an ecosystem service make an indirect payment to the provider of that service through an intermediary such as the state where the public authority disburses the compensation to the service provider for conservation for maintenance. To fund the compensations , countries either rely on the general budget or introduce PES-like taxation systems with special-purpose taxes and fees, targeting the tourism, water, electricity, transport and extractives sectors (i.e. the beneficiaries of the ecosystem services). Mexico has a national level scheme that also encourages the establishment of private to private PES systems.
Oil and Gas and Other Natural Resource Revenue Funds
Legal vehicle (trust) that supports environmental priorities by mobilizing, blending, and overseeing the allocation of financial assets for generated from revenues or fees associated with non-renewable and renewable natural resources managed as a trust fund.