The two interconnected watersheds and ancient lakes of Lake Baikal and Lake Hövsgöl represent over 20 ecosystem types and thousands of terrestrial and marine species, many of which are classified as endangered. The Baikal basin ecosystem remains under threat from increased levels of persistent toxic substances (PTS), including POPs, heavy metals and suspended solids, as well as nutrients (nitrogen and phosphorus) and pathogens (E.coli). Most of these contaminants and toxic substances are caused by the pollution from the mining industry, the backbone for the region’s economic growth as well as livestock runoff and related waste-water facilities, and finally, the industrial effluents of both steel and paper mills. Significant portions of the region’s wildlife are near extinction due to contamination or destruction of habitat through previously mentioned pollutants, unsustainable logging, and poaching.

The GEF funded at $20 million Biodiversity Conservation project in Russia in 1996 which helped to create a Lake Baikal Conservation Strategy. Some policy coordination to protect the region has taken place, but not nearly enough to ensure effective resource management and to prevent biodiversity degradation. Three main obstacles the dual-lake region currently faces are a) outstanding policy and regulatory gaps, b) institutional weaknesses at both the bilateral and national level, and c) lack of consistent technology implementation. To overcome these barriers, this project proposes an approach with three components: a) trans-boundary ecosystem analysis and planning, b) institutional strengthening, and c) mainstreaming ecosystem services which will provide local residents with pilot projects demonstrating sustainable resource management and economic development in a wide variety of sectors, including projects working with local miners, ecotourism opportunities, and even local environmental inspectors.