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Innovative development finances

Basis for action: "To integrate biological diversity and its associated ecosystem services in the development of new and innovative sources of international development finance, taking into account conservation costs"... Strategy for resource mobilization, objective 4.5

Indicator:
Number of initiatives, and respective amounts, supplementary to the financial mechanism established under Article 21, that engage Parties and relevant organizations in new and innovative financial mechanisms, which consider intrinsic values and all other values of biodiversity, in accordance with the objectives of the Convention and the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of the Benefits Arising out of Their Utilization

Countries
Belgium Belgian Fund for Food Security

France 1. La taxe française sur les transactions financières (TTF)
2. Airline ticket levy
3. options for an international tax system
4. International Taxation and Global Public Goods, Private Donations to Development, Official Development Assistance (ODA): Key Facts and Figures, Human Development and Global Funds, How Volatile is ODA?, Intergenerational Issues in Official Development Assistance, The Vaccine Fund as an Example of Conditional Funding Mechanism for Human Development, The Double Dividend, The Iopc Fund: an Example of an Existing “International Tax”, International Geostationary Orbital Position Assignment Procedure
5. Towards global taxation in the service of alternative globalization
6. Estimating the Base for a Corporate Income Tax Surcharge on Multinationals, Bank Transparency as a Public Good

Netherlands 1. An International Market-Based Instrument to Finance Biodiversity Conservation: Towards a Green Development Mechanism (2009)
2. Financing Sustainable Forest Management (2008)

Sweden Financing and Providing Global Public Goods: Expectations and Prospects (2001)

United Kingdom 1. Climate Change: Financing Global Forests
2. The International Finance Facility (2005)

USA 1. Watershed-Based Permitting Case Study: Permitting Approach
2. Rahr Malting Company “trading” permit (1997)
3. Conservation Concessions - Concept Description (2002)
4. A derivative approach to endangered species conservation
5. Environmental mortgage

Leading Group

International
IIED 1. Financing for Environment and Development (2004)
2. Scoping paper on Individual Transferable Quotas for Acipenseriformes spp. in the Caspian Sea (2004)

OECD 1. Innovative Approaches to Funding the Millennium Development Goals (2004)
2. Individual Transferable Quotas as an Incentive Measure for the Conservation and the Sustainable Use of Marine Biodiversity
3. Financing Global And Regional Public Goods Through ODA: Analysis and Evidence from the OECD Creditor Reporting System (2004)
4. Foreign Direct Investment and the Environment: Lessons from the Mining Sector (2002)
5. Environmental Benefits of Foreign Direct Investment: a Literature Review

United Nations 1. Report of the Secretary-General's High-level Advisory Group on Climate Change Financing: Carbon market public revenues, International transport, Carbon-related revenues, Development bank instruments, Financial transaction tax, Direct budget contributions, Private finance, Carbon markets
2. Report of the Second Expert Group Meeting on Financial Issues of Agenda 21 (1995)
3. Financial Resources and Mechanisms, Fourth Session of Commission on Sustainable Development (1996)
4. Financial Resources and Mechanisms, Fifth Session of Commission on Sustainable Development (1997)
5. Financial Resources and Mechanisms, Eightth Session of Commission on Sustainable Development (2000)
6. Finance and Trade (2001)
7. Innovative Approaches to Domestic Resource Mobilization in Selected LDCs (2004)
8. Innovative sources of financing for development
9. World Economic and Social Survey 2005: Financing for Development
10. Progress report on innovative sources of development finance

UNEP 1. Investing in ecological infrastructure
2. Developing International Payments for Ecosystem Services: Towards a greener world economy

UNFF 1. Financing for sustainable forest management: current challenges in the changed financial environment (2003)
2. Financing Flows and Needs to Implement the Non-Legally Binding Instrument on All Types of Forests: prepared for the Advisory Group on Finance of the Collaborative Partnership on Forests (2008)

UNU 1. Inter-linkages in Financing Sustainable Development: Synergies and Coordination among Multilateral Environmental Agreements
2. Innovative Sources of Development Finance: Global Cooperation in the Twenty-first Century (2002)
3. Financing the Provision of Global Public Goods (2002)
4. The International Finance Facility: The UK HM Treasury–DFID Proposal to Increase External Finance to Developing Countries (2003)
5. A Global Lottery and a Global Premium Bond (2003)
6. Revenue Potential of the Currency Transaction Tax for Development Finance: A Critical Appraisal
7. Private Donations for International Development
8. The Revenue and Double Dividend Potential of Taxes on International Private Capital Flows and Securities Transactions
9. Environmental Taxation and Revenue for Development (2003)
10. Innovative Sources for Development Finance: Over-Arching Issues
11. Remittances by Emigrants: Issues and Evidence
12. A Development-focused Allocation of the Special Drawing Rights (2004)

World Bank 1. Financing the Development Agenda (2005)
2. Financing Modalities toward the Millennium Development Goals: Progress Note (2004)
3. Moving Forward Financing Modalities toward the MDGs (2005)
4. Global Public Goods: A Framework for the Role of the World Bank (2007)
5. On Financing Global and International Public Goods (2001)

Status and trend
Global Monitoring Report 2012: About twenty countries already set up one or more innovative financings so far, and raised nearly US$6 billion since 2006. Advanced Market Commitments (AMC) leveraged US$1.45 billion to guarantee the price of vaccines once they have been developed. IFFIm (International Finance Facility for Immunization) uses long-term donor pledges from donor governments to issue bonds on financial markets, and levied some US$3.4 billion between 2006 and 2011 for GAVI. Solidarity levy on air ticket generated US$1.22 billion. Belgian Fund for Food Security received 20% of the revenues of the national lottery each year. The Currency Exchange Fund (TCX) has mobilized US$ 50 million in the Netherlands and US$40 million in Germany.
Innovative development financing mechanisms have evolved considerably over the past decade, with growing interests from both developed and developing countries. African Group and Western Europe and Others Group have demonstrated the highest interest in those mechanisms, while the interest from Eastern Europe Group and Asia Group is developing.

  • United Nations
  • United Nations Environment Programme