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Published in Autumn 2002
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Program notes
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News and Updates from CEC
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Environment, Economy and Trade
For those who see shade coffee as a way to help preserve Mexico's biodiversity, it has been a frustrating catch-22: growers can't get access to credit without sales commitments, but they can't get signed contracts without the cash to sustain production until harvest time. The CEC is hoping to end that standoff with a new financial entity, the North American Sustainable Agriculture Debt Facility, which will put investors and other capital sources in North America together with Mexican coffee growers.
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Courtesy of Elan Organic Coffees |
Unlike mass-produced coffee from Brazil and Colombia, grown on treeless plantations in bright sunshine, 90 percent of Mexican coffee is cultivated on small family plots under a forest canopy, without pesticides, and without disturbing the abundant wildlife in one of the world's most biodiverse regions. But these small growers are finding it increasingly hard to eke out a profit, especially when they are paying usurious interest rates of up to 250 percent for capital--or in many cases, doing without the necessary operating funds. More and more of them are being forced to abandon coffee, stripping their land to make way for other crops.
The premise behind the debt facility is that sustainable agriculture can be a win-win investment for lender and farmer. Consumer interest in shade coffee--and their willingness to pay a premium for it--suggests anticipated returns to investors of 5-8 percent per year, on loans of 10-12 percent for farmers. "It's an ideal marriage," says Chantal Line Carpentier, acting head of the CEC's Environment, Economy, and Trade program. "Growers gain access to reasonably-priced credit, while investors have a vehicle to do well by doing good. The public relations bonus of helping to save the Mexican rainforest is icing on the cake."
Shade coffee is only the first of many potential products. The CEC envisions a wide range of funding sources, from private investors to government agencies to charitable foundations. To manage the facility, rather than create a new entity, project members are approaching several organizations--possibly including the International Finance Corporation, the Inter-American Development Bank, Banamex Foundation, and the World Bank. As for the actual lending operation, the debt facility will enlist institutional intermediaries to evaluate and extend credit.
Initial capitalization is expected to be US$5-10 million, eventually rising to $50-60 million. Considering that the demand for coffee-related credit in Mexico was as high as US$450 million last year, and that only 15 percent was met through legitimate lenders, targets may not be hard to meet. Says Carpentier, "There is a lot of excitement about our project right now."
Conservation of Biodiversity
While the three NAFTA partners share the same land mass and many obvious areas of concern, they surprisingly have just one ecosystem in common: the central grasslands, one of the most threatened environments in North America. This month, the CEC co-hosted a trilateral symposium, where more than 1,500 participants shared thoughts on the state of their country's grasslands species, habitats, and the ecosystem as a whole.
The symposium was just the latest installment in an ongoing CEC grasslands initiative, meant to raise awareness of the species at risk and to facilitate cooperation among the three countries. It is an initiative that grew out of a wider effort, begun in 2000, to protect endangered wildlife in North America. Recognizing that most animals and birds on the list were native to the grasslands, the CEC decided to help bring the three countries together to work on their specific, yet interrelated, problems.
Take, for example, the burrowing owl, a species that is rapidly disappearing from the continent for mysterious reasons (see owl story in this issue). Although biologists in Canada had been actively searching for an answer, it wasn't until Mexican scientists signed on, with information about the owls' winter habitats, that they had access to key pieces of the puzzle. "This is where the three countries can come together very well, because they may have information on different aspects of the problem," says Jürgen Hoth, program manager
of the CEC's Conservation of Biodiversity program. "One party cannot accomplish this on its own."
Worldwide, grasslands have been areas of constant flux, and consequently, of constant peril. Because they represent some of the most fertile and hospitable land on earth, they have been more tampered with and transformed--into communities, farms, ranches--than any other ecosystem on earth. With every piece of development, natural habitats have been destroyed, leaving the area's wildlife at risk. The goal of the CEC's project is to help the countries work together to reverse that process.
Three preliminary steps are nearing completion. First, a grasslands assessment report from Mexico, where the ecosystem accounts for 10 percent of the surface land. Second, a detailed, interactive new map of the North American grasslands. And third, a draft framework to pave the way for cooperation. Building on that foundation, the team is then planning three new steps: to bring the key players together to identify interests and plot a course of action; to choose one or two species, such as the black-tailed prairie dog, as a sub-project; and to create a central directory of ongoing conservation efforts, so all parties can stay connected.
"The alternative was to directly support work on species," says Hoth, "but without defining the broader context first, our effectiveness would have been
very limited."
Pollutants and Health
On the heels of successfully eliminating DDT from North America, the CEC's Sound Management of Chemicals initiative (SMOC) has turned its focus to mercury, with three active projects.
Mercury is a naturally occurring metallic element that is also a dangerous byproduct of coal-fired energy plants and municipal and medical incinerators. At high levels in its pure form, it can destroy the brain and kidneys. But it is even more lethal in organic compounds like methyl mercury, which form when airborne particles of the element hit water or land and are transformed by bacteria. The slightest exposure to methyl mercury--typically through fish, or animals that eat fish--is capable of inflicting grave neurological damage. For children, the consequences are still worse, and the precipitating doses smaller.
SMOC has designated mercury a top priority because of this high toxicity, and because, like DDT, it persists in the environment and accumulates in the human body. One goal of the mercury task force, which is made up of representatives from the CEC, Mexico's Instituto Nacional de Ecología, Environment Canada, and the US Environmental Protection Agency has been to define the scope of the problem. That task is being addressed with the three initiatives, each measuring the degree of mercury pollution in specific areas of Mexico.
The first assesses land contamination in the Zacatecas region, about six hours north of Mexico City. Consultants have taken samples of soil, corn, and beans from fields that once were used as dumps for mine tailings, and analyzed them for mercury and other compounds. At press time, results were expected to be released in a final report at the mercury task force meeting and separate public workshop in Zacatecas in September.
The second involves measuring mercury in rain in Puerto Angel, on the Oaxacan coast, and Huejutla, in the state of Hidalgo. Environment Canada has loaned the project two wet-deposition monitors, which collect precipitation to gauge mercury levels, and which will be installed this fall with technical help from the EPA. A Seattle company, Frontier Geosciences, has donated its expertise in analyzing the samples.
Lastly, the task force will examine ambient air levels of mercury in the Zacatecas region, Puerto Angel, and Huejutla. Again, Environment Canada is loaning the equipment--this time, two specialized monitors from Tekran Inc. of Toronto--as well as technical assistance. The Canadians will instruct scientists from the University of Zacatecas and from the Centro Nacional de Investigación y Capacitación Ambiental (Cenica) in using the monitor and in interpreting the data. Once the project is finished, the monitors will travel to Mexico City for three weeks, so Cenica scientists can measure ambient air mercury there.
"These three projects will greatly enhance our understanding of mercury pollution in Mexico and will help us prioritize our options for managing it," says Joanne O'Reilly, an in-house consultant to SMOC.
North American Fund for Environmental Cooperation
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Warren Gretz, US Department of Energy-NREL
Renewables and energy conservation are the focus of this year's grants. |
Since 1996, the CEC has offered NAFEC funding for environmental projects in Canada, Mexico, and the United States that complement the CEC's work. The theme this year is energy: all of the following 2002 recipients are projects focusing on renewables, conservation, or efficiency.
In coming issues of Trio, we will examine several projects in depth. The first profile--of work on tradable renewable energy certificates at the Center for Resource Solutions--appears in this issue.
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A Business and Charity Collaboration on Energy Conservation--Canada, US$25,000.
Western Valley Development Authority, Cornwallis Park, Nova Scotia.
http://www.wvda.com
- Binational Initiative for Installing New Sustainable Thermoelectric Plants in the US/Mexico Border Region--United States, Mexico, US$25,000.
Proyecto Fronterizo de Educacion Ambiental, A.C., Tijuana, Baja California.
Contact: Laura Durazo, laurie@proyectofronterizo.org.mx
- Building an Integrated North American Market
for Tradable Renewable Energy Certificates--United States, Mexico, US$25,000.
Center for Resource Solutions, San Francisco, California.
http://www.resource-solutions.org
- Building Capacities-Communities at Risk: Empowering Families to Decrease Costs through Improved Home Energy Efficiency--Canada, US$25,000.
Conservation Corps Newfoundland and Labrador,
St. John's, Newfoundland.
http://www.conservationcorps.nf.ca/ecoteams
- Building Capacity in Mexico to Assess Renewable Energy Policy Options through Multi-Stakeholder Dialogue--Mexico, US$25,000.
Center for Clean Air Policy, Washington, D.C.
http://www.ccap.org
- Energy for the Future in Mexican Rural Zones: Production of Wood-saving Stoves--Mexico, US$25,000.
Servicios Ambientales de Oaxaca,
A.C., Oaxaca, Oaxaca.
Contact: Carlos Marcelo Perez, sao@mesoamerica.org.mx
- Firewood Management and Conservation, an Alternative for Energy Savings in Two Microregions in the Sierra Tarahumara--Mexico, US$25,000.
Consultoría Técnica Comunitaria A.C., Chihuahua, Chihuahua.
Contact: Maria Teresa Guerrero Olivares, kwira@infosel.net.mx
- LakeWind Community Wind Power Consortium--Canada, US$25,000.
Toronto Renewable Energy
Co-operative, Toronto, Ontario.
Contact: Deborah Doncaster, ddoncaster@trec.on.ca
- Promoting Sustainable Energy Development
in the Texas/Mexico Border Region--United States,
US$25,000.
Texas Center for Policy Studies,
Austin, Texas.
http://www.texascenter.org
- Renewable Energy & Energy Efficiency Program--United States, US$25,000.
FrontRange Earth Force, Denver, Colorado.
http://www.earthforce.org
- Seeding Green Power: Community Pilot Project to Develop an International Green Standard for Small-Scale Hydropower--Canada, United States, US$25,000.
Low Impact Hydropower Institute, Portland, Oregon.
http://www.lowimpacthydro.org
- Smart Bylaws: How To Green Your Bylaws So They Protect Your Environment and Save Money--Canada, US$25,000.
West Coast Environmental Law Research Foundation, Vancouver, British Columbia.
http://www.wcel.org
- Solar Coffee Dryers--Mexico, US$25,000.
Unión de Comunidades Indígenas de la Región del Istmo, Ixtepec, Oaxaca.
Contact: Jesus Antonio Ramirez Guerrero, uciri@prodigy.net.com
- Sustainable Energy for Teocelo, Veracruz--Mexico, US$25,000.
Centro de Derecho Ambientale Integración Económica del Sur A.C., Xalapa, Veracruz.
Contact: Claudio Alatorre Frenk, dassurct@prodigy.net.mx
- Technological Development, Implementation and Promotion of Solar Coffee Dryers in Peasant Communities in Chiapas, Mexico--Mexico, US$21,000.
FORO para el Desarrollo Sustentable, A.C., San Cristóbal de Las Casas, Chiapas.
Contact: Victor Manuel Berrueta Soriano, vicmab@yahoo.com
- The Cool Shops Program--Canada, US$25,000.
Greenest City Environmental Organization, Toronto, Ontario.
http://www.greenestcity.org
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Abstracts - North American Grasslands: Building a Trinational Conservation Strategy Symposium