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THE BLUE TREASURE - FC THE FINANCIAL COOPERATION MAGAZINE - KFW ENTWICKLUNGSBANK
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The Financial Cooperation magazine
                                                       Special issue
                                                      October 2017

                                                      Media partner

The Blue Treasure
International commitment to clean oceans and coasts
THE BLUE TREASURE - FC THE FINANCIAL COOPERATION MAGAZINE - KFW ENTWICKLUNGSBANK
Protecting the world‘s oceans –                                                                                                    “Getting people on board”
with the Blue Action Fund                                                                                                          The oceans are under threat: climate change, solid waste and overfishing are jeopardising
                                                                                                                                   the living conditions of millions of people, particularly in poorer countries. Stephan Opitz,
In coordination with the Federal Ministry for Economic Cooperation and Development                                                 Member of the Management Committee of KfW Development Bank, explains in an interview
(BMZ), KfW Development Bank has founded a trust for international marine protection. It                                            why KfW has become increasingly involved in marine conservation, and which strategies
bears the name “Blue Action Fund” and promotes conservation areas, sustainable fishing                                             promise the greatest success.
and environmentally friendly tourism. The aim is for the Blue Action Fund to become an
important promotional instrument for the world‘s oceans.
                                                                                                                                                                                  included after pressure from small         treasures are under the water: coral

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                                                                                                                                                                                  island countries. Now we have a            reefs, seagrass beds and fish can only
          he oceans are the largest            To counter these trends, KfW             drafted; the actual work will start at                                                    separate objective specifically for this   be seen if you dive down. This makes
          habitat in the world. They        established the Blue Action Fund            the beginning of next year, probably                                                      with SDG 14. And the first global          it more difficult to convey informa-
          cover 70 percent of the           with the BMZ at the end of 2016. It         in the oceans by Mozambique and                                       Stephan Opitz       Ocean Conference took place recently       tion about marine conservation.
          Earth‘s surface, generate 50      supports non-governmental organisa-         Ecuador – both of which are marine                                    Member of the       in New York. These are all indications
percent of our oxygen, store carbon         tions in their coastal and marine           hot spots for biodiversity. “We are                                   Management          that something is changing here.           Nevertheless, something has to
dioxide, regulate the climate and           protection work, and is thus a new          well on the way”, said Opitz. By 2019,                                Committee of                                                   be done urgently.
                                                                                                                                                              KfW Develop-
make an important contribution to           funding instrument in development           more than a dozen projects are to be                                                      Why did it take so long? Overfish-         Yes, that’s the main message that we
                                                                                                                                                              ment Bank
the world‘s food supply. Furthermore,       cooperation because it brings               financed from the Blue Action Fund.                                                       ing is not exactly a new topic...          took from the conference in New
they are home to the greatest variety       governmental and non-governmental           This non-profit trust with a start-up                                                     There are many reasons for this. In        York. The oceans are under severe
of species, they provide raw materials,     players together. Together they can         capital of EUR 24 million originating      The United Nations held its first              contrast to when on land, we do not        threat – overfishing, solid waste,
they are used for trade routes, and         achieve more, and more quickly,             from BMZ funds is to attract new           international conference on the                immediately see what is happening          economic exploitation – and we have
they are a source of inspiration and        inputting their different experiences:      donors in the coming years and             oceans in June. Has the global                 in the oceans. Neither what is lost,       to take urgent action against this.
recreation. Around half of the world‘s      “KfW with its wide-ranging knowl-           thereby gradually extend its reach.        community recognised the need                  nor what is preserved. In conserva-
population live near a coastline, and       edge of nature conservation on land,        Sweden wants to invest roughly             to take action?                                tion areas on land we can look at          Can the whole thing actually still
in many respects are reliant on an          among other things, and the NGOs            EUR 5 million, while other countries       I think so. When the Sustainable               elephants, lions and pandas. We can        be reversed?
intact marine ecosystem: for example,       with their expertise from working           are weighing up their contributions        Development Goals were laid down in            identify with these “key animals”;         This was also asked with regard to
fish play a crucial role in developing      together with local fishermen”, said        too. “Our goal”, said Opitz, “is for the   2015, protecting the oceans was not            this increases the pressure. It’s          nature conservation areas on land.
countries as a source of protein and        Stephan Opitz, Member of the                Blue Action Fund to become a major         even on the agenda, and was only               different with the oceans. Here, the       Like in Amazonia, an area that is
income. Mangrove forests and coral          Management Committee of KfW                 player in international marine                                                                                                       crucial for climate protection. It was
reefs provide protection from storm         Development Bank, explaining one of         conservation”.                                                                                                                       argued back then that the pace of
tides and flooding. In spite of their       the advantages of the new trust. The                                                                                                                                             deforestation could not be stopped,
significance, coasts and oceans are         first project outlines have been            Friederike Bauer                              MARINE CONSERVATION INITIATIVES                                                        and that there would be no more
under more pressure than ever before:                                                                                                                                                                                        forests there within a few decades.
their fish stocks are overused, while       Rare turtles lay their eggs on the coast of Mozambique.                                   Protecting the oceans is a question of survival for humankind. This is why Germany     But it is precisely in the Amazon
pollutants and solid waste often end                                                                                                  is pressing forward: by means of a 10-point action plan entitled “Marine conserva-     rainforest that we see the deforesta-
up untreated in ocean waters. Then                                                                                                    tion and sustainable fishing”, the Federal Ministry for Economic Cooperation and       tion rate has dropped, because here
we have the economic interests,                                                                                                       Development (BMZ) is strengthening its commitment towards the oceans. The BMZ          – also thanks to development
ranging from deep sea mining and oil                                                                                                  has provided roughly EUR 440 million to implement the action plan. Yet having the      cooperation – conservation strategies
extraction to tourism. All these                                                                                                      right partners, good ideas and ambitious objectives are just as important as           were launched in many areas.
factors impact on the seas and                                                                                                        funding. The BMZ is combining all of this into two new marine initiatives: the Blue    Strategies that involved the people,
oceans, jeopardising this unique                                                                                                      Action Fund together with KfW and the initiative to protect mangroves “Save our        offering them economic prospects
ecosystem: roughly one third of all                                                                                                   Mangroves now” with the WWF and the International Union for Conservation of            without destroying the forests. These
fish stocks are now considered                                                                                                        Nature (IUCN). Because “keeping going” is not an option. “The oceans are on the        are successes achieved using ap-
overfished, two thirds of the coral                                                                                                   brink of collapse – and without them, life as we know it is impossible”, explained     proaches that can be transferred
reefs – nurseries for fish – are severely                                                                                             Development Minister Dr Gerd Müller. www.bmz.de/themen/meeresschutz                    in a very similar way to marine
under threat.                                                                                                                                                                                                                conservation.

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THE BLUE TREASURE - FC THE FINANCIAL COOPERATION MAGAZINE - KFW ENTWICKLUNGSBANK
Preserving coral reefs and
                                                                                         controlling the protected zones better
                                                                                         is an important objective I think.

                                                                                         Another problem is the growing
                                                                                         volume of plastic waste in the             mangrove forests
                                                                                         oceans. Some hope that we will
                                                                                         soon be able to remove this from
                                                                                                                                    The Caribbean islands are well known for their diversity of plants, fish and other animals
                                                                                         the water with floating treat-
                                                                                         ment plants or massive suction
                                                                                                                                    – but these natural wonders are under threat. The increase in the oceans’ temperature
                                                                                         tubes. What is your take on such           is damaging coral reefs, the abundance of fish is declining and hotels are sprawling
                                                                                         ideas?                                     out along beaches. To support local marine conservation areas, KfW has financed the
Marine protection is also benefiting traditional fishermen, like this one in Vietnam.    I don’t think these technical solutions    Caribbean Biodiversity Fund since 2010 on behalf of the German Federal Government.
                                                                                         are very promising up to now because

                                                                                                                                    C
How might this actually be                    apply. If these rules are adhered to,      the particles are very small. And the
achieved?                                     the yield from the seas will increase      waste is widely dispersed. We believe               oral reefs with a total size of       Secretariat is based in the Bahamas,   from the Caribbean Biodiversity Fund
Swift results can be achieved in the          again in the medium to long-term.          we have to start before that, and try               two million hectares,                 and one representative each from the   to promote their respective national
oceans as well: where biodiversity is                                                    to stop the waste from getting into                 extensive mangrove forests            non-governmental organisation The      conservation zones, for example to
respected, protected and sustainably          Many fishermen are poor. Do they           the oceans in the first place by means              and more than 1,400 species           Nature Conservancy and from KfW        buy patrol boats, revitalise habitats
managed, the seas recover surpris-            not simply need the income                 of proper waste and recycling              of fish make the Caribbean islands             have been delegated to the supervi-    or extend the zones. The countries
ingly fast. It is not too late yet, but       today, even if this means they             systems.                                   one of the world’s five most impor-            sory board.                            involved are Antigua and Barbuda,
we have to act consistently.                  earn less?                                                                            tant hot spots for biodiversity. The              The Caribbean Biodiversity Fund     the Bahamas, the Dominican Repub-
                                              This can create a conflict of interests.   How significant is KfW’s involve-          Caribbean Sea also offers protection           needs at least USD 40 million to be    lic, Grenada, Haiti, Jamaica, Puerto
What do you think has to happen               But often the fishermen simply no          ment in coastal and marine                 for many migratory animals. For                able to designate new and preserve     Rico, St. Kitts and Nevis, St. Lucia as
first?                                        longer find anything because the fish      protection?                                example, six out of the seven endan-           existing conservation zones. KfW       well as St. Vincent and the Gren-
Firstly, we need to make existing             stocks have been depleted. There is        It makes up roughly ten percent of         gered species of sea turtle live here.         alone provided EUR 20 million on       adines, which joined the Caribbean
marine conservation areas functional.         no short-term benefit for them             our activities in the field of biodiver-   Biologists have counted 300 bird and           behalf of the BMZ, while The Nature    Challenge Initiative in 2008 with the
Some of these protected areas exist in        anymore, and therefore they under-         sity, which we carry out on behalf of      mammal species that are only found             Conservancy and other donors made      purpose of placing 20% of their coast-
theory only; this is why they are             stand very well that protected zones       and with funding from the Federal          here. The Caribbean Biodiversity               further contributions.                 al areas under protection by 2020.
called paper parks. Planning these            offer them an opportunity.                 Ministry for Economic Cooperation          Fund was established to protect this              Eleven countries and territories       KfW will follow the fortunes of the
parks in a way that they have an                                                         and Development (BMZ). But we              biological diversity and the natural           have already set up national conser-   fund during the start-up phase before
effect and that fish stocks start to          You talk about sustainable                 consider it to be an emerging topic.       resources in the Caribbean. Its                vation funds that receive funding      retreating and handing responsibility
recover is crucial. Officially, we            fishing on a small scale in a                                                                                                                                               over to the trust that runs the fund. It
currently have about three percent            sense. But frequently we see               KfW has just set up the “Blue              Tropical fish and coral reefs in the Red Sea                                          is assumed that by then the fund will
under conservation; the international         large trawlers that deploy                 Action Fund” for marine conser-                                                                                                  be generating sufficient returns to
target is ten percent. This means we          unsustainable catching methods             vation. Why?                                                                                                                     cover the needs of the marine
have to activate existing areas and           and empty the seas. What can be            By means of the Fund, we can                                                                                                     conservation areas together with
set up new ones.                              done to counter this?                      implement projects more quickly,                                                                                                 further proceeds from the national
                                              Modern means of communication              purposefully and on a broader scale                                                                                              conservation funds, such as entry fees.
How can we ensure that there is               now offer good opportunities here to       because we are working together                                                                                                     Last but not least, protecting
no fishing in these areas, or only            make checks, using satellite technol-      with large international non-govern-                                                                                             biological diversity benefits the local
as much as is allowed?                        ogy for example. This means the large      mental organisations. At the moment                                                                                              economy too, and therefore people.
We have to get the people on board.           trawlers can be located too, and we        it has trust assets of EUR 24 million                                                                                            Throughout the Caribbean, income
Just like with land-based initiatives.        can determine which ships have             derived from BMZ funds; we are                                                                                                   from fishing and tourism amounts to
We now know that as soon as                   fished illegally.                          targeting an amount of EUR 100                                                                                                   an annual USD 80 billion. Many
“no-take zones” are set up some-                                                         million with the involvement of                                                                                                  people are dependent on these
where, and agreements are reached             But we are still far from having a         further donors. The need is there, and                                                                                           sources of income that are based on
with the local fishermen, everyone            complete international control             we are running out of time.                                                                                                      the natural diversity of the Caribbean
profits in the end. What is important         system for the world’s oceans…                                                                                                                                              islands.
is that the fishermen know this is a          Correct, we don’t have that yet, and it    This interview was conducted
protected area and certain rules              will not be a fast process either. Yet     by Friederike Bauer.                                                                                                             Charlotte Schmitz

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THE BLUE TREASURE - FC THE FINANCIAL COOPERATION MAGAZINE - KFW ENTWICKLUNGSBANK
Anything but waste                                                                                                            to turn the Tunisian waste disposal
                                                                                                                              system into a recycling economy,
                                                                                                                              explained Wolfgang Pfaff-Simoneit,
                                                                                                                                                                       gas emissions can be avoided almost
                                                                                                                                                                       completely. Given the positive
                                                                                                                                                                       results, the Tunisian government
                                                                                                                                                                                                                      Tunisia: it does not make sense in
                                                                                                                                                                                                                      developing countries to collect and
                                                                                                                                                                                                                      separate waste with as few people
                                                                                                                              Technical Expert in the Water and        decided at the end of 2016 to equip            and as many machines as possible.
The rapidly growing megacities and urban conurbations in developing countries and                                             Waste Management Team for MENA           all landfills with mechanical                  Collecting and sorting waste offers
emerging economies in particular have to find solutions for their ever-increasing amounts                                     (Middle East/North Africa) at KfW. A     biological waste treatment facilities,         huge opportunities for permanent
of waste. However, developing sustainable waste management systems is a huge                                                  recycling economy means that the         while new plants will be fitted with           jobs, even for those with low qualifi-
challenge and a laborious process. KfW Development Bank is planning to intensify its                                          raw materials used are returned in       this technology from the outset.               cations. “It generally does not cost
efforts within German development cooperation, which includes working on new concepts                                         their entirety to the production                                                        any more if many people are em-
                                                                                                                              process, and besides the recycling of                                                   ployed”, explained Pfaff-Simoneit,
to mobilise the potential of the sector. One example here is Tunisia.
                                                                                                                              products, emphasis is placed on                                                         because labour is not expensive in

I
                                                                                                                              reusing organic waste, which makes                                                      contrast to the purchase of imported
     f waste is not disposed of, it is                                                                                        up 60% of the volume. The upheaval       “Waste collection                              waste disposal vehicles and other
     not just a nuisance, it entails
     many risks. Landfills spoil the
                                                                                                                              stemming from the Tunisian
                                                                                                                              revolution that began in 2010
                                                                                                                                                                       also provides jobs                             machinery. To be able to recycle
                                                                                                                                                                                                                      waste permanently and efficiently it
     landscape and contaminate
usable space. They become breeding
                                                                                                                              radically changed the general
                                                                                                                              conditions for designing and
                                                                                                                                                                       for people with low                            is very important to sort early, and to
                                                                                                                                                                                                                      record the recyclable parts by type as
grounds for disease carriers and a                                                                                            implementing disposal plants. The        qualifications.”                               precisely as possible. Recycling is
source of food for rats and vermin.                                                                                           population questioned local govern-                                                     mostly carried out by informal waste
The poorer population is particularly                                                                                         ance, and acceptance of disposal         Dr Wolfgang Pfaff-Simoneit                     collectors in Tunisia at the moment.
exposed to these kinds of risks.                                                                                              facilities fell dramatically. ANGed is                                                  Action in the waste sector should
“Uncontrolled” waste dumps                                                                                                    now adapting to the new require-                                                        therefore always be aimed at improv-
contaminate drinking water and                                                                                                ments. It is accountable to the                                                         ing the working and living conditions
threaten water bodies, air, soil, flora                                                                                       general public for its actions and has                                                  of informal workers at the same time.
and fauna. The climate suffers too.                                                                                           to employ democratic forms and             Another important finding on
Ten to 15% of a country’s overall                                                                                             procedures of civil society participa-   waste management was confirmed in              Sabine Balk
greenhouse gas emissions can be                                                                                               tion. KfW is thus supporting ANGed
prevented by good waste manage-                                                                                               and the Tunisian authorities in
ment and recycling.                                                                                                           developing participatory forms of
   The municipalities – generally                                                                                             local governance (“change manage-
responsible for waste disposal – are                                                                                          ment”) and conducting national               DEG COMMITMENT: RECYCLING WASTEWATER
barely up to this complex task.                                                                                               dialogue on waste disposal.
Waste disposal “devours” a large part                                                                                            “Acceptance of disposal facilities        Tourism and farming are key economic sectors for Egypt. Both industries use a
of their frequently scarce funds.                                                                                             improves if the volume of waste is           lot of water, which is a scarce resource in Egypt. Hotels on the Red Sea and on
Municipalities in developing coun-                                                                                            reduced as much as possible,”                the Sinai Peninsula rely on expensively treated water from desalination plants,
tries spend between 20 and 50% of                                                                                             explained Pfaff-Simoneit. Then the           but for farming this is too expensive. TIA, a company from Breitenfelde in
their budgets just on collecting                                                                                              areas needed for disposal facilities         Schleswig-Holstein, and MfT Membran from Cologne, have developed a solution
waste. Nevertheless, many residents                                                                                           can be scaled back and the environ-          for this: a facility that processes wastewater from hotels. The treated water can
do not have access to proper disposal                                                                                         mental risks minimised. In Tunisia,          then be used for irrigation purposes. Last year, a pilot plant was launched in a
services. Some of the waste – mainly                                                                                          the previous concept of regulated            hotel in El Quesir. Training was organised at the same time with the aim of
                                                                                                       For recycling
in the poorer settlements – is not                                                                                            landfills failed on account of the           creating a service and maintenance network with local partners. The Egyptian
                                                                                                       purposes, it is very
taken away at all, and remains in                                                                                             waste properties and the climate             authorities and other hotel operators are also being made aware of the potential
                                                                                                       important to sort
the residential area.                                                                                  waste diligently:      conditions, added the KfW expert.            and the advantages offered by wastewater treatment and reusing treated
   One country that KfW Develop-                                                                       plastic caps in           “Mechanical biological treatment          wastewater. Universities and research institutions are to facilitate knowledge
ment Bank has supported since the                                                                      Tunisia.               of waste is particularly suitable for        transfer. DEG, a subsidiary of the KfW Group, co-financed the pilot plant using
end of the 1990s in setting up a                                                                                              Tunisia”, said Pfaff-Simoneit, as            funds from the develoPPP.de programme of the BMZ. DeveloPPP.de is aimed at
proper waste management system is         lished a basic disposal infrastructure   regulated landfills, and fulfils the       proven by a pilot project in                 companies which are committed to developing countries and emerging econo-
Tunisia. Since 2002 and via its own       that reaches around 85% of the           basic requirements for environmen-         2014/2015. The surface area                  mies on a long-term basis and want to shape their business commitment in a
national executing agency “ANGed”,        population. It mainly consists of        tally friendly waste disposal. In          required for waste disposal can be           sustainable way.
this country has gradually estab-         waste transfer stations and properly     2008, the first concepts were drafted      drastically reduced, and greenhouse

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A life for the wilderness
South African environmentalist and human rights activist Andrew Zaloumis received the
2017 Bernhard Grzimek Award by KfW Stiftung for his services related to the iSimangaliso
Wetland Park. This park, which stretches over 330,000 hectares, also has 220 kilometres of
untouched coastline. In addition to wetlands, its landscape comprises hills and savannahs.
The conservation park is the first UNESCO World Heritage Site in South Africa.

A
           ndrew Zaloumis is an                                                                                           In Frankfurt Zoo,
           enthusiastic supporter of                                                                                      Andrew Zaloumis
           Nelson Mandela, the first                                                                                      learned about the
                                                                                                                          offspring of wild
           president of a free South
                                                                                                                          African animals.
Africa. He paved the way for the
protection of the iSimangaliso
Wetland Park (which means “wonder”
in Zulu). Zaloumis played a leading
role in elaborating the UNESCO
treaties and embedding the area’s
protected status in South African
law.
   Nature has always fascinated him.
Right after he was born in Johannes-           He was involved in cross-border                 spectacular. “The wild dogs are
burg in 1961, his family moved to a            conservation in the region of Lubom-            particularly dear to my heart”, said
remote region of Zambia. “I grew up            bo, before taking over the manage-              Zaloumis. He marvelled at how the
in the wilderness”, explained the              ment of the iSimangaliso Wetland                animals – of which there are now
reserved man. Later on, he studied             Park in 2002. He promptly launched              only 6,000 – travel many kilometres
economics in South Africa, and then            the restoration of plantations and              every day and hunt over massive
decided to study spatial planning to           wetlands, but his work comprises                territories.
avoid compulsory military service.             much more than that: “We always                    Zaloumis lives in the middle of
“The apartheid state is responsible for        focus on three things: environment,             the park with his wife and two
my education”, he said ironically.             supporting the local population and             children. “Our nearest neighbour is
During the first democratic elections          tourism.” Today, the park provides              15 kilometres away.” Zaloumis is
in South Africa in 1994 he organised           jobs for thousands of local people.             satisfied. The wilderness has him
a polling station in a rural region.              The measures that succeeded in               back.
   Thereafter, Andrew Zaloumis                 resettling species such as giraffes,
focused solely on the environment.             lions and the African wild dog were             Charlotte Schmitz

    Imprint Publisher KfW, a public law institution, LGc1, Palmengartenstrasse 5 –9, 60325 Frankfurt am Main
    Editorial team Klaus Gihr, Samiera Toma (both KfW) Authors Sabine Balk, Friederike Bauer, Charlotte Schmitz Contact info@
    kfw-entwicklungsbank.de Layout Nina Hegemann (FAZIT Communication GmbH) Photos Getty Images/Francisco Goncalves, p. 1;
    ShaneMyers-Photo/thinkstock, p. 2; KfW Photo Archive/Gaby Gerster, p. 3; pcruciatti/thinkstock, p. 4; vlad61/thinkstock, p. 5;
    KfW Photo Archive/photothek.net, p. 6; KfW Group/Frank Blümler, p. 8; Printing FAZIT Communication GmbH, Frankfurt am Main
    Editorial deadline 22 September 2017
    This publication was printed on climate-neutral FSC®-certified paper.

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