Marketbased Conservation

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Market-based Conservation
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What is Market-based Conservation?

• Market-based conservation is an innovative way
  to stretch resources, to take conservation beyond
  the boundaries of the farm, ranch and forest,
  while preserving productivity, maintaining and
  enhancing landowner livelihoods and producing
  environmental benefits.
• Market-based solutions generally provide
  flexibility to undertake actions that have the
  lowest cost and result in more cost-effective
  achievement of natural resource conservation and
  environmental goals compared to traditional
  command and control approaches.

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Market-based Conservation

• Principal approaches for applying markets to
  conservation efforts and environmental
  protection
• Green Payments - Modification and Expansion of
  Federal Programs
• Green Labeling - The creation and marketing of
  conservation-friendly labels for producers
• Environmental Credit Trading - a system where
  unregulated pollution sources are allowed to sell
  emissions reductions to regulated sources through
  private markets

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Market-based Conservation
Currently, a number of barriers limit the
emergence of robust conservation markets
including limited demand, high start-up costs and
long-term risks, and a lack of information.Exper
ience from other markets shows a solid
institutional framework currently missing in
the marketplace benefits all market
participants.
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• Improve landowner initiated conservation on their
  lands through a variety of federally and
  privately funded ecosystem services
• Modification and expansion of existing federal
  programs to leverage limited funds and complement
  a private market.
• Create of a federal framework to establish
  private markets.

Facilitate effective operation of market-based
approaches for enhanced environmental benefits
Modification and Expansion of Federal
Programs Establishing Private Markets
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Emerging private markets suggest conservation
programs may become more efficient by
incorporating activities that use or facilitate
market-mechanisms. Implementing
conservation-based performance goals could
increase program effectiveness. New markets
could complement or in some cases replace
federally supported conservation efforts.
Modification and Expansion of Federal Programs

• Market-based competitive rates
• Linking buyers and sellers
• Green labeling

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A performance-based approach to conservation
could provide incentives for undertaking greater
conservation efforts and a means to measure
progress. Environmental markets could complement
and in some cases replace existing
programs. Environmental markets offer an
alternative way to achieve the goals of
traditional environmental regulations. Cost of
providing environmental services in agriculture
is often lower than in other sectors.
Establishing Private Markets

• Develop uniform standards
• Foster market confidence and validity
• Provide market oversight
• Strengthen and promote investments in markets

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Environmental Credit Trading Scenario
Market Drivers Laws, Regulations or policies
that set limits on emissions or environmental
damage
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• End