Palau Protected Areas Network (PAN): a Leading Example in Sustainably Financing Conservation Efforts!

In 2003, Palau established a Protected Areas Network (PAN) and Green Fee, a successful approach to integrating conservation efforts with sustainable financing.

The Palau PAN model demonstrates a highly coordinated and multilevel collaboration that enables local communities to manage their protected areas sustainably while also benefitting from national goals and initiatives.

The Green Fee is an environmental departure fee paid by every visitor departing from the Republic. 100% of the money generated from collection of the Green Fee goes into Palau Protected Area Network (Palau PAN) efforts. Palau has experienced great success in financing its PAN through Green Fees and they are currently the only member of the MC jurisdictions to be supporting its PAN through a sustainable financing source.

The Palau PAN was established before the Micronesia Challenge commitment and has since then contributed to achieve the goals “to effectively conserve at least 30% of the near-shore marine resources and 20% of the terrestrial resources across Micronesia by 2020.”

Palau Map of Protected Areas Network (red polygons demarcate MPAs and TCAs) (Credit: Palau PAN Fund)

Since its establishment in 2003, Palau’s 16 states have now joined the Protected Areas Network. In total there are 39 protected areas sites, of which 29 are marine protected areas (MPAs) and 10 are terrestrial conservation areas (TCAs). In addition to these near-shore marine protected areas and terrestrial conservation areas, in 2015, the Palau National Marine Sanctuary Act was put into place, establishing 80% of Palau’s Exclusive Economic Zone (EEZ) as a no-take reserve, banning all extractive activities by January 2020. The remaining 20% of Palau’s EEZ was declared a domestic fishing zone (DFZ) where only licensed fishing vessels were allowed to operate.

PNMS Boundary Map (Credit: PICRC and COS, “Palau’s National Marine Sanctuary: Managing Ocean Change and Supporting Food Security,” PICRC, December 2019.)

Furthermore, in order to finance the PNMS, the Palau National Government further implemented the Pristine Paradise Environmental Fee (PPEF). The PPEF, an update on the Green Fee financing scheme, is a tax added to all incoming flight tickets into Palau. This $100 PPEF tax is used to finance the efforts of both the Palau PAN and the PNMS.

The PNMS is an immense endeavor undertaken by a small island country and is a shining example of the bold moves that must be undertaken in order to make positive impacts in our community, our island, and in our region.