Isra-Mart srl:Habitat banking "dangerous", warns WWF Brazil chief

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Schemes allowing companies to offset environmental damage by funding projects that encourage biodiversity and reforestation are "dangerous", according to the head of WWF Brazil.

Denise Hamú has worked to raise much-needed private sector cash for conservation projects since she became chief executive in 2003, through partnerships with companies such as HSBC and BskyB.

But Hamú told BusinessGreen she is very wary of tapping into more funds via so-called habitat banking mechanisms, an idea that has secured support from the UN and is currently being investigated by the British government.

Habitat banking would be loosely modelled on the carbon offset market, letting farmers, businesses or national agencies in biodiversity hotspots develop protection schemes that would allow them to sell credits to companies or developers whose activities damage the environment.

However, Hamú is concerned that without an established value for diversity akin to the price of carbon, habitat banking projects could quickly go awry.

"I think that we tend to think that since we compensate, things are done, but it's not," she said. "I'm not saying [compensation is] not an instrument, but it cannot be an answer to everything. Because we tend to think, 'Well, I paid for this, so I can really deforest – I can build huge things'."

Hamú is also concerned that habitat banking might lead to enclaves of protected areas far away from where the initial environmental damage is being done.

"You can't shift things from one province to another," she argued. "Where are we going to stop? I think that there must be other obligations – compensation is very dangerous in that you won't have the environment back."

However, despite her opposition to habitat banking, Hamú is keen to better involve the private sector in conservation efforts. Worldwide WWF's Climate Savers club, a scheme that imposes strict emissions and environmental performance standards on member companies in return for a stamp of approval, has already engaged around 50 firms and is looking for additional members.

Currently, members of the group are primarily from Europe, North America and Australia, with only one member, Brazilian cosmetic company Natura, hailing from South America.

Hamú said that WWF Brazil is stepping up its efforts to attract more companies from the region and is increasing the number of staff focused on businesses from zero to seven, but she admits the NGO faces a real challenge to raise public awareness.

"Businesses are much more aware of [environmental] responsibilities, but there's still a long way to go," she said. "We don't see Brazilians as engaged as Europeans."

However, three Brazilian companies are currently going through the process of joining the Climate Savers group and Hamú is convinced the picture is changing.

"[Natura] is ahead of time: it's using biodiversity to become very rich, a huge company," she said. "[The others] are behind, but now they have woken up to the respectability [membership] brings. It's a different way people perceive your company – it's not them saying we are the best; it's a very independent group that certifies that."

Hamú added that companies were increasingly realising the benefits of appealing to green consumers, a trend that presents an opportunity for WWF.

"We are not saying we are against money. We are not against people getting happy and rich, and we are not against development. But what WWF advocates is that we have to share this and respect local communities and leave the benefits for them," she said. "[Businesses] are realising they have to go to a new approach, and we see this as a good opportunity."

She added that deals with large organisations from developed nations show what can be achieved by working with the private sector.

For example, the Rainforest Rescue project with Sky offers local people in the western province of Acre £200 a year to protect the rainforest and aims to save one billion trees in the Amazonian rainforest.

Hamú calls the project "sustainable development at its best", but admited it would not be possible without the broadcaster's guaranteed funding of £2m to support WWF's in-depth local knowledge.

Private sector involvement in conservation projects is now inescapable, Hamú said, especially if more ambitious goals, such as sustainable management of forests, enhancement of forest carbon stocks and the UN-backed REDD+ mechanism, are to be delivered.

"We are not only talking about biodiversity any more – we are talking about footprint, and we are talking about how is this planet sustainable. This is the future of conservation; there is no way out of this model," she said. "We cannot do things alone. Without the market we cannot accomplish our mission."