The Conference of the Parties
Underlining the special importance of designing and implementing incentive measures in reaching the objectives of the Convention, especially in regard to the sustainable use of biological diversity, as well as in removing negative impacts on biodiversity,
Recognizing the importance of incentive measures for other cross-cutting issues, such as access to genetic resources and the fair and equitable sharing of benefits arising from their utilization,
Underlining the need for cooperation and collaboration of international organizations in efforts to assist Governments in designing and implementing incentive measures,
PROPOSALS FOR THE DESIGN AND IMPLEMENTATION OF INCENTIVE MEASURES
A. Identification of the problem: purpose and issue identification
C. Provision of capacity and building of support: facilitating implementation
D. Management, monitoring and enforcement
E. Guidelines for selecting appropriate and complementary measures
Maximize economic efficiency.
Rely on measurability of single components and on agreement about external cost values.
Can require extensive monitoring.
Applicable in situations where impacts are easily measurable (e.g., hunting) and sources of impacts can be easily monitored.
Results in the most efficient allocation of resources between competing users, and generates appropriate prices for them.
Low monitoring requirements
May be imperfect where there are (large) external effects and/or monopolies.
Applicable where clearly defined property rights can be established and upheld for easily identifiable goods and services, and transaction costs are low enough.
Reforming or removing these incentives can lead to an easing of pressures on the environment, improved economic efficiency and reduced fiscal expenditures.
Perverse incentives can often be difficult to identify (lack of transparency).
They may be politically difficult to reform because of the strong opposition from recipients.
Applicable where clear benefits in terms of budgetary, economic efficiency and/or environmental goals can be identified and potential compensatory measures exist to facilitate the support removal process.
Can target directly particular activities or processes.
Can be economically inefficient or costly method of achieving environmental goals, especially if proscribing certain technologies.
Strict enforcement is necessary.
May be complex and detailed.
Most applicable where there is a limited range of easily identifiable environmental impacts that need circumscription and/or where the number of actors is limited.
Transparent and high visibility.
Positive public relations.
May not maximize economic efficiency.
May be inflexible because funds are earmarked to some extent.
Applicable where Governments have difficulties raising general funds, where fiscal infrastructure is weak and where clearly identifiable and highly popular causes exist.
Popular with recipients.
Promotes desirable activities rather than prohibiting undesirable ones.
May lead to economic inefficiencies.
May encourage rent-seeking behaviour.
Applicable in situations where desirable activities would not be undertaken without support or to create a differential in favour of such activities where it is not feasible to discourage the undesirable alternatives.
RECOMMENDATIONS FOR FURTHER COOPERATION ON INCENTIVE MEASURES
The involvement of stakeholders including indigenous and local communities
Interlinkages between multilateral environmental agreements (MEAs)
Linking biodiversity to macro-economic policies
Role of international organizations