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WGRI-5 Recommendations

WGRI 5 Recommendation 5/10

`5/10`Review of implementation of the strategy for resource mobilization

The Ad Hoc Open-ended Working Group on Review of Implementation of the Convention,

Realizing the urgent need for mobilization of resources for implementing the Strategic Plan for Biodiversity 2011-2020 and achieving the Aichi Biodiversity Targets by 2020, as well as the updated national biodiversity strategies and action plans and associated national targets,

Noting that the strategy for resource mobilization in support of the Convention’s three objectives, as adopted by the Conference of the Parties at its ninth meeting, was geared towards implementation during an initial period up to 2015, coinciding with the final review of the achievement of the Millennium Development Goals, and that, in decision IX/11, the Conference of the Parties foresaw a comprehensive review of the strategy for resource mobilization to be undertaken at its twelfth meeting,

Also noting the messages from the High-level Panel and the Second Informal Dialogue Seminar on Scaling Up Finance for Biodiversity that developing and operationalizing cohesive, well-designed institutions, rational policies and effective policy frameworks are a prerequisite for effective and efficient biodiversity financing systems,

Recalling the preliminary targets for resource mobilization adopted by the Conference of the Parties at its eleventh meeting and its decision to review progress towards the achievement of Aichi Biodiversity Target 20 with the aim of adopting a final target for resource mobilization at its twelfth meeting,

Mindful of the need for an effective and practical framework for monitoring and reporting on implementation of the final targets for resource mobilization,

Taking note of the Co-Chair’s Summary of the Second Informal Dialogue Seminar on Scaling up Finance for Biodiversity, held in Quito,

1.Requests the Executive Secretary to develop, for consideration by the Conference of the Parties at its twelfth meeting, proposals for concrete and effective actions for implementing Aichi Biodiversity Target 20, to support the achievement of the Strategic Plan for Biodiversity 2011-2020 and the Aichi Biodiversity Targets by 2020, with a view to preparing a set of practical decisions at the twelfth meeting of the Conference of the Parties, to be held in Pyeongchang, Republic of Korea. The proposals will take into account the existing strategy for resource mobilization, including elements from all eight of its goals, the report of the High-level Panel on the Global Assessment of Resources for Implementing the Strategic Plan for Biodiversity 2011-2020, ³⁵ the Co-Chair’s Summary of the Second Dialogue Seminar on Scaling Up Finance for Biodiversity, and the ongoing initiatives and activities on technical support and capacity-building mentioned in section D below, and include the following:

(a)Possible actions for achieving targets as well as associated indicators, including actions associated with the eight goals of the strategy for resource mobilization and the mainstreaming of biodiversity across government and society (Strategic Goal A of the Strategic Plan for Biodiversity 2011-2020);

(b)Delivery and support mechanisms providing technical support and capacity-building, including on good practices and lessons learned in applying financial tools and instruments and in enhancing their effectiveness, such as those presented during the Quito dialogues;

(c)The cataloguing of the capacity-building and technical support instruments that have been made available to Parties by such organizations as those referred to in paragraphs 16 and 17 below, in order to inform policy development from a toolkit of options that Parties can use to address their resource mobilization needs;

(d)Draft options for voluntary guidelines based on the challenges and possible risks of these mechanisms as identified in the document on possible risks and benefits of country-specific innovative financial mechanisms and safeguards; ³⁶

(e)Activities that encourage and support collective action, including by indigenous and local communities, and non-market-based approaches for mobilizing resources for achieving the objectives of the Convention, including such approaches as community-based natural resource management, shared governance or joint management of protected areas, or through indigenous and community conserved territories and areas;

2.Also requests the Executive Secretary, further to paragraph 2 of decision VIII/14, to revise the preliminary reporting framework with a view to facilitating financial reporting, in consultation with Parties and on the basis of the task list contained in annex II to the present recommendation, in order to bring it into conformity with the targets for resource mobilization, to adapt the required scope and granularity of financial reporting, taking into account data quality and accessibility, the associated prospective cost and practicality of reporting, and other ongoing relevant statistical and environmental accounting processes;

3.Welcomes, in this context, the financial and in-kind contributions of, in particular, the Governments of Brazil, Denmark, Ecuador, Germany, Japan, India, Norway, the Republic of Korea, Sweden, Uganda and the United Kingdom of Great Britain and Northern Ireland as well as the European Commission, to initiatives, including the Quito dialogue seminar and other events, intended to contribute to the preparation of the review of the implementation of the strategy for resource mobilization;

4.Recommends that the Conference of the Parties at its twelfth meeting consider the proposals of the Executive Secretary, developed pursuant to paragraph 1 above, with a view to their adoption, and further recommends that the Conference of the Parties consider including its decision on resource mobilization in a wider package of decisions that could collectively be known as the “Pyeongchang Roadmap for the enhanced implementation of the Strategic Plan for Biodiversity 2011-2020 and the achievement of the Aichi Biodiversity Targets”, in recognition of the host of the twelfth meeting of the Conference of the Parties;

5.Takes note of the summary of the Global Monitoring Report, ³⁷ recalling paragraph 5 of decision X/3 and paragraph 11 of decision XI/4, invites Parties and relevant organizations to submit additional information and/or provide comments on the draft to the Executive Secretary by 15 August 2014, and requests the Executive Secretary to submit the global monitoring report on the implementation of the strategy for resource mobilization, for the consideration of the Conference of the Parties at its twelfth meeting;

6.Recommends that the Conference of the Parties at its twelfth meeting adopt a decision along the following lines:

The Conference of the Parties,

Recalling that Parties agreed to consider all possible sources and means that can help to meet the level of resources needed, in accordance with Article 20 of the Convention and consistent with decisions X/3 and XI/4;

Recalling paragraph 2 of decision X/3 and taking note of the wide variety of ongoing initiatives and activities which support Parties in mainstreaming biodiversity into national planning and developing national resource mobilization strategies,

Having reviewed the progress towards the achievement of Aichi Biodiversity Target 20 with the aim of adopting final targets for resource mobilization, as per paragraph 22 of decision XI/4,

Recalling paragraph 3 (b) of decision X/2, and paragraph 13 of the Strategic Plan for Biodiversity 2011-2020, ³⁸

`A.`[Final] targets for resource mobilization

Option 1 [1.Adopts the final targets for resource mobilization, under Aichi Target 20 of the Strategic Plan for Biodiversity 2011-2020, as follows, using average annual biodiversity funding for the years 2006-2010 as a baseline:

(a)Double total biodiversity-related international financial resource flows to developing countries, in particular least developed countries and small island developing States, as well as countries with economies in transition, by 2015 and at least maintaining this level until 2020, in accordance with Article 20 of the Convention, to contribute to the achievement of the Convention’s three objectives, including through a country-driven prioritization of biodiversity within development plans in recipient countries;

(b)Mobilize domestic financial resources from all sources, including, inter alia, the public sector, the private sector, and, as appropriate, through new and innovative financial mechanisms, to significantly reduce the gap between identified needs and available resources at domestic level, for effectively implementing by 2020 the Strategic Plan for Biodiversity 2011-2020;

(c)The targets contained in paragraph 7 (b) to (d) of decision XI/4;]

Option 2 [1.Adopts the following targets [to significantly reduce the gap between identified needs and available resources,] [to substantially increase from current levels the mobilization of resources] from all sources[, inter alia the public sector, the private sector, and, as appropriate, through new and innovative financial mechanisms,] under Aichi Target 20 in order to effectively implement the Strategic Plan for Biodiversity 2011-2020 [and in accordance with the consolidated and agreed process in the Strategy for Resource Mobilization]:

(a)Double total biodiversity-related international financial resource flows to developing countries, in particular least developed countries and small island developing States, as well as countries with economies in transition, by 2015 and at least maintaining this level until 2020, in accordance with Article 20 of the Convention, [to significantly reduce the gap between identified needs and available resources,] to contribute to the achievement of the Convention’s three objectives, including through a country-driven prioritization of biodiversity within development plans in recipient countries, using average annual biodiversity funding for the years 2006-2010 as a baseline;

(b)Mobilize domestic financial resources [from all sources[, including inter alia the public sector, the private sector, and, as appropriate, through new and innovative financial mechanisms,]] to significantly reduce the gap between identified needs and available resources;

(c)Those contained in paragraph 7 (b) to (d) of decision XI/4;

1(bis).Decides that the targets in subparagraphs (a) to (c) above are to be considered mutually supportive but independent;

1(ter).Further decides to [review], at the thirteenth meeting of the Conference of the Parties, [progress towards the above targets] [and consider the need for changes contingent on resource needs assessments that have been developed and reported by Parties, as foreseen in Aichi Target 20] [consider the need to review the targets above at the thirteenth meeting of the Conference of the Parties].]

2.Urges Parties and other Governments, with the support of relevant international and regional organizations, to develop their national resource mobilization strategies or finance plans consistent with identified needs and priorities, using the [final] targets for resource mobilization above as a flexible framework;

3.Takes note of the voluntary guidelines based on the revised document on possible risks and benefits of country-specific innovative financial mechanisms, and safeguards ³⁹ and invites Parties and business organizations and other stakeholders to consider using it as appropriate, and in accordance with national legislation;

4.Welcomes the second report of the High-level Panel on the Global Assessment of Resources for Implementing the Strategic Plan for Biodiversity 2011-2020, and encourages Parties to consider its findings and implementation of its recommendations;

5.Welcomes the global monitoring report on the implementation of the strategy for resource mobilization;

`B.`Modalities and milestones for Aichi Biodiversity Target 3

6.Welcomes the analysis of the obstacles encountered in implementing options identified for eliminating, phasing out or reforming incentives that are harmful for biodiversity, ⁴⁰

7.Takes note of the modalities described in the note by the Executive Secretary on modalities and milestones for the full operationalization of Aichi Biodiversity Target 3 and obstacles encountered in implementing options identified for eliminating, phasing out or reforming incentives that are harmful for biodiversity ⁴¹ as a flexible framework for the full implementation of Aichi Biodiversity Target 3;

8.Adopts the milestones, as contained in annex I to the present decision, as a flexible framework for the full implementation of Aichi Biodiversity Target 3;

9.Invites Parties to report progress in achieving these milestones, as well as any additional milestones and timelines established at the national level, through their national reports or, as appropriate, through the online reporting framework on implementing the Strategic Plan for Biodiversity 2011-2020 and the Aichi Biodiversity Targets;

`C.`Financial reporting

10.Adopts the revised financial reporting framework; ⁴²

11.Requests the Executive Secretary to make the revised financial reporting framework available to Parties and other Governments no later than 1 June 2015, and invites Parties and other Governments to report thereon, using online reporting systems, where feasible, by 31 December 2015;

12.Also requests the Executive Secretary to integrate the financial reporting framework into the guidelines for the sixth national report, in a manner that maintains consistency between the formats for the fifth and sixth national reports as per paragraph 10 of decision X/10, in order to allow for long-term tracking of progress towards all the Aichi Biodiversity Targets in an integrated and coordinated manner;

13.Urges Parties and other Governments to report on their contribution to the collective efforts to reach the global targets for resource mobilization, against the established baselines, in their sixth national reports as well as subsequent national reports;

14.Recognizes the important role of collective action, including by indigenous and local communities, and non-market-based approaches for mobilizing resources for achieving the objectives of the Convention, including approaches such as community-based natural resource management, shared governance or joint management of protected areas, or through indigenous and community conserved territories and areas, and resolves to include activities that encourage and support such approaches into reporting under the Convention;

`D.`Technical support and capacity-building

15.Recalls paragraph 12 of decision X/3 and, in this context, notes with appreciation the ongoing work of the Development Assistance Committee of the Organisation for Economic Co-operation and Development to improve the Rio marker methodology;

16.Recalls paragraph 2 of decision X/3 and, in this context, notes with appreciation the work of the Biodiversity Finance Initiative of the United Nations Development Programme and other initiatives to support, encourage and facilitate the identification of funding needs, gaps and priorities, the development of national resource mobilization strategies and of financial reporting, by providing technical support and guidance, and capacity-building to Parties, in particular developing country Parties, including small island developing States and countries with economies in transition, and invites the BIOFIN Initiative to continue and further upscale this work;

17.Notes with appreciation the work of relevant international organizations that support the work on resource mobilization and the programme of work on incentive measures, such as the Food and Agriculture Organization of the United Nations, the United Nations Conference on Trade and Development, the United Nations Development Programme, the United Nations Environment Programme and its initiative on the Economics of Ecosystems and Biodiversity, the Organisation for Economic Co-operation and Development, the International Union for Conservation of Nature (IUCN), the World Trade Organization, as well as other international organizations and initiatives, and invites these organizations and initiatives to continue and further upscale this work, and to provide capacity-building and technical support for implementing the modalities and milestones for Aichi Biodiversity Target 3;

18.Invites Parties in a position to do so as well as national, regional and international funding institutions to provide financial support to these and other capacity-building activities, based on needs expressed by Parties;

19.Requests the Executive Secretary:

(a)To continue and further strengthen cooperation with relevant organizations and initiatives, with a view to catalysing and support the provision of technical guidance and capacity-building, on financial reporting, the identification of funding needs, gaps, and priorities, and the development of national resource mobilization strategies, and incentive measures, including, subject to the availability of financial resources, by organizing workshops on these matters;

(b)To initiate technical work, subject to the availability of resources and in close cooperation with Parties as well as relevant international organizations, such as the United Nations Development Programme and the World Bank, by organizing a technical expert workshop on identifying, accessing, compiling and aggregating domestic and international biodiversity-related investments and impacts, with a view to (a) presenting, sharing and reviewing existing national experiences; (b) assessing experiences and methodologies applied in other sectors with a view to identifying opportunities for methodological transfer; and (c) identifying options for convergence towards, and possible elements of, a common methodology;

(c)To make the report of the workshop referred in paragraph 19 (b) above available as an element of guidance for Parties, with a view to facilitating financial reporting on domestic expenditures and the development of national finance plans.

Annex I

MILESTONES FOR THE FULL IMPLEMENTATION OF AICHI BIODIVERSITY TARGET 3

Milestones and associated timelines:

1.By 2015: Development and inclusion of a national target reflecting Aichi Target 3 in revised national biodiversity strategies and the inclusion of pertinent action items in revised national biodiversity action plans. Action items may include:

(a)Undertaking national analytical studies that identify candidates for elimination, phase-out or reform of incentives, including subsidies, harmful for biodiversity, and that identify opportunities to enhance the effectiveness of existing financial instruments for biodiversity and to promote the design and implementation of positive incentive measures;

(b)Based, as appropriate, on the analytical studies above, developing policy plans that (i) identify those harmful incentives that are candidates for removal, phase-out, or reform; (ii) provide for a prioritized list of measures leading to their eventual removal, phase-out, or reform; (iii) provide for a prioritized list of measures leading to the introduction, or strengthening, of positive incentives for the conservation and sustainable use of biodiversity; (iv) provide for associated timelines and milestones for implementation;

(c)In cases where incentives, including subsidies, are already known to have harmful effects and are already identified as candidates for elimination, phase-out or reform, foreseeing immediate policy action in form of their elimination or initiation of their phase-out or their reform;

2.By 2016 (COP 13): In cases where candidates for elimination, phase-out or reform are already known, immediate policy action is taken, in the form of their elimination or initiation of their phase-out or their reform;

3.By 2016 (COP 13): Finalization of national analytical studies that identify candidates for elimination, phase-out or reform of incentives, including subsidies, harmful for biodiversity, and that identify opportunities to promote the design and implementation of positive incentive measures;

4.By 2018 (COP 14): Finalization of policy plans, in line with revised national biodiversity strategy and action plans, that (i) identify those harmful incentives that are candidates for elimination, phase-out, or reform; (ii) provide for a prioritized list of measures leading to their eventual elimination, phase-out, or reform; (iii) provide for a prioritized list of measures leading to the introduction, or strengthening, of positive incentives for the conservation and sustainable use of biodiversity; (iv) provide for associated timelines and milestones;

5.The table below summarizes these milestones and the associated timelines. It reflects the possibility that a country may already know some candidates for immediate policy action (as per 1 (c) above) but may also wish to engage in the preparation of analytical studies (as per para. 1 (a) above) in order to obtain a more comprehensive picture.

Timeline	Milestone
2015	National target reflecting Aichi Biodiversity Target 3 and associated action items included in revised national biodiversity strategy and action plan (NBSAP)
2016	Policy action taken on incentives, including subsidies, already known to have harmful effects and already identified as candidates for elimination, phase-out or reform, in form of their elimination or initiation of their phase-out or their reform
2016	Finalization of national analytical studies that identify candidates for elimination, phase-out or reform of incentives, including subsidies, harmful for biodiversity, and that identify opportunities to promote the design and implementation of positive incentive measures
2018	Finalization of policy plans that (i) identify those harmful incentives that are candidates for elimination, phase-out, or reform; (ii) provide for a prioritized list of measures leading to their eventual elimination, phase-out, or reform; (iii) provide for a prioritized list of measures leading to the introduction, or strengthening, of positive incentives for the conservation and sustainable use of biodiversity; (iv) provide for associated timelines and milestones

Annex II

TASK LIST FOR THE EXECUTIVE SECRETARY TO REVISE THE FINANCIAL REPORTING FRAMEWORK

1.Improve the guidance to the financial reporting framework, in close cooperation with Parties as well as relevant international organizations and initiatives, in order to improve transparency, reliability and consistency of data reported;

2.Simplify reporting on flows from market/private sources and other sources (non-governmental organizations, foundations, academia) by integrating into the reporting framework the monitoring and reporting on measures taken by Parties to encourage these actors to provide support for the implementation of the Strategic Plan for Biodiversity 2011-2020;

3.Cross-reference, in the financial reporting framework, pertinent sections of the guidelines for the fifth national report, with a view to enable Parties to use these reporting avenues, with amendments, as needed, in order to take into account financial considerations.