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Advancing More, Better and Faster Financing for Biodiversity and Ecosystem Services

Public sector investment

Basis for action:
"To mobilize public sector investments in biological diversity and its associated ecosystem services"... Strategy for resource mobilization, objective 3.3

Africa
Algeria Revenue Regulation Fund
Angola Fundo Soberano de Angola
Botswana The Pula Fund
Equatorial Guinea Fund for Future Generations
Gabon Sovereign Fund
Ghana Petroleum Fund
Libya Libyan Investment Authority
Mauritania National Fund for Hydrocarbon Reserve
Mauritius Sovereign Wealth Fund
Morocco Caisse de Dépôt et de Gestion (CDG)
Nigeria Sovereign Investment Authority
South Africa 1. Eskom sustainability indices
2. ITQs for fisheries resources
3. Investment and environment, investing in environment- and climate- related infrastructure and services
Uganda incorporated biodiversity in its Sector Wide Investment Plans (SWIPs)
Zimbabwe Public Sector Investment Programme (PSIP) contains provisions to relevant departments and institutions
Regional 1. Banque Ouest Africain de Développement (BOAD)
2. Development Bank of Southern Africa (DBSA)

Americas
Antigua and Barbuda public sector investment programme (PSIP) process offers a focus on achieving predetermined goals including biodiversity targets (where government programs and projects make up over 50% of development)
Brazil 1. Banco Nacional de Desenvolvimento Econômico e Social (BNDES)
2. Petrobras developed a biodiversity management system through its corporate standard for managing potential impacts on biodiversity
3. Sovereign Fund
Canada 1. Alberta Heritage Savings Trust Fund
2. Export credits and guidelines for multinational enterprises
Chile 1. Banco Estado (BE)
2. Fishery ITQs
3. Fiscal Responsibility Funds, Social and Economic Stabilization Fund, Chile Pension Reservation Fund
4. public sector investment and national investment system
Colombia Bancóldex S.A.
Guyana The Upper Essequibo Conservation Concession
Mexico 1. Nacional Financiera (NAFIN): incorporated environmental criteria into investment projects financed by development banks
2. Mexico's stimulus invested in forest fire prevention measures
3. Oil Revenues Stabilization Fund of Mexico
4. Investing in the environment to promote economic growth
Panama Sovereign Wealth Fund
Peru Fiscal Stabilization Fund
St. Lucia Tenure reform: Mankote Mangrove
Trinidad and Tobago The Heritage and Stabilization Fund
Venezuela Macroeconomic Stabilization Fund
United States of America 1. The Civilian Conservation Corps (CCC), a public work relief program that operated from 1933 to 1942 in the United States, provided employment for 2.5 million young men in implementing a general natural resource conservation program in rural lands owned by federal, state and local governments
2. Alabama Trust Fund, Alaska Permanent Fund Corporation, Louisiana Education Quality Trust Fund, New Mexico State Investment Council, North Dakota Legacy Fund, Texas Permanent School Fund, Texas Permanent University Fund, Permanent Wyoming Mineral Trust Fund, CalPERS, CalSTRS
3. Export credits
Regional 1. Central American Bank for Economic Integration (BCIE/CABEI)
2. CAF, development bank of Latin America

Asia
Azerbaijan State Oil Fund of the Republic of Azerbaijan
Bahrain The Future Generations Reserve Fund
Brunei Investment Agency
China 1. China Development Bank (CDB)
2. Introduced environmental criteria including biodiversity in credit policies of its state-owned banks, and the practice may be replicated for all national development banks and agricultural banks
3. China Investment Corporation, China-Africa Development Fund, National Social Security Fund, SAFE Investment Company, Hong Kong Monetary Authority Investment Portfolio
India Small Industries Development Bank of India (SIDBI)
Indonesia Indonesia Exim Bank
Indonesia Government Investment Unit
Iran National Development Fund of Iran
Iraq Development Fund
Israel The Israel Export Insurance Corporation, Ltd
Japan Government Pension Investment Fund
Kazakhstan Samruk-Kazyna JSC, Kazakhstan National Fund, National Investment Corporation of National Bank
Kuwait Kuwait Investment Authority
Malaysia Khazanah Nasional
Mongolia Fiscal Stability Fund
Nepal Hills Leasehold Forest and Forage Development Project
Oman Investment Fund, State General Reserve Fund
Republic of Korea 1. Korea Finance Corporation (KoFC)
2. Korea's stimulus promoted the restoration of its four major rivers to enhance adaptation to climate change.
3. Korea Investment Corporation, National Pension Service
4. Oversees investment
Qatar Qatar Investment Authority
Saudi Arabia Public Investment Fund, SAMA Foreign Holdings
Singapore Government of Singapore Investment Corporation Pte. Ltd., Singapore: Temasek Holdings (Private) Limited
Timor Leste Timor-Leste Petroleum Fund
Turkey Industrial Development Bank of Turkey (TSKB)
Turkmenistan Stabilization Fund
United Arab Emirates Abu Dhabi Investment Authority, Abu Dhabi Investment Council, Emirates Investment Authority, International Petroleum Investment Company, Investment Corporation of Dubai, Mubadala Investment Company, Ras Al Khaimah Investment Authority
Vietnam State Capital Investment Corporation

Europe
Belgium Export credit agencies have begun to consider biodiversity and ecosystem services
(2007) export credits

Croatia (2014) State owned water management company Croatian Waters (Hrvatske vode) prepares Water Management Plan - Annual Programme of Water Maintenance Works for the Protection Against Harmful Effects of Water.
(2013) Croatian Bank for Reconstruction and Development (HBOR )

Czech Republic (2005) foreign direct investment, export credit and the environment

Denmark (2007) environmental assistance, environmental funds, Nordic Environment Finance Corporation (NEFCO)

France 1. Stimulus package financed the priority areas identified within the “Grenelle de l’Environnement” that support ecology, sustainable development and land use management
2. Strategic Investment Fund
(2005) French export credit agency

Germany (2011) Export credits

Greece export credits

Ireland 1. National Pensions Reserve Fund
(2009) Environmental dimensions of national investment plans

Italy Strategic Fund
(2013) Export credits

Luxembourg (2009) Export credits

Netherlands APG
(2003) environmental agreements, Scheme for Free Depreciation on Environmental Investments and the Environmental Investment Allowance

Norway Government Pension Fund

Russian Federation (2013) Vnesheconombank (VEB)
Reserve Fund and the National Wealth Fund of the Russian Federation, Russian Direct Investment Fund, National Welfare Fund, Russia Reserve Fund

Slovak Republic (2011) export credit

Sweden (2004) local investment programmes, Swedish Export Credit Bank

Regional (2013) Black Sea Trade and Development Bank (BSTDB)

Status and trends
National/sub-regional development banks, public or publicly-mandated, can provide the majority of their green finance commitment at concessional terms. A coalition of twenty development banks, with total assets of more than US$ 2.1 trillion, estimated that their total green finance reached US$ 95 billion in 2012.

Sovereign wealth funds have seen their assets grow by 59% between 2008 and 2012 because of rising commodity prices, and over 32 sovereign wealth funds have been created since 2005. Assets under management of SWFs reached at least $6.3 trillion in 2013. Countries with SWFs funded by commodities' exports, primarily oil and gas exports, totalled $3.78 trillion, and non-commodity SWFs totalled $2.5 trillion.

State-owned enterprises: of the 2000 largest companies, 204 have been identified as majority SOEs in 2010 with ownership spread across 37 different countries. The combined sales of the 204 SOEs amount to USD 3.6 trillion, equivalent to almost 6% of world GDP, and their combined market value (USD 4.9 trillion) corresponds to 11% of global market capitalization of all listed companies. They are particularly active in five sectors with the highest shares are: mining support activities; civil engineering; land transport and transport via pipelines; mining of coal and lignite; and the extraction of crude petroleum and gas, which have high impact on biodiversity and ecosystem services.

Accounting
Counting public sector investments into biodiversity and ecosystem services may be built upon existing efforts, such as on climate finance. Among the US$95 billion green finance from some twenty development banks, US$200 million was used for species conservation, US$1.95 billion for mitigation measures in agriculture, forestry and land use, and US$14 billion in agriculture natural resources and ecosystem based adaptation, water preservation, coastal protection and other disaster risk reduction. The latter two items are of direct benefits to biodiversity and ecosystem services. However, information related to biodiversity-related performance of sovereign wealth funds and state-owned enterprises is generally lacking.

Ideas of mobilization
  • National/sub-regional development banks introduce and implement explicit strategies and operational guidelines on financing biodiversity and ecosystem services
  • Global and regional networks of national/sub-regional development banks are established to promote consideration of financing biodiversity and ecosystem services
  • Awareness to the long-term inter-generational returns of investing in biodiversity and ecosystem services is raised among the sovereign wealth funds and other public funds
  • Investment portfolios of biodiversity and ecosystem services are developed, taking into account the specific needs of the sovereign wealth funds and other public funds, including return guarantees
  • State owned enterprises are required to develop and implement policies on biodiversity and ecosystem services and their performance measurement includes impacts on biodiversity and ecosystem services
  • State owned enterprises on biodiversity and ecosystem services are established to transform the management of biodiversity and ecosystem services
  • A global survey of biodiversity-related operations of state-owned enterprises is conducted on a regular basis in order to monitor and inform on their impacts

  • United Nations
  • United Nations Environment Programme