Mobilizing finance for biodiversity
Mobilizing financial resources for biodiversity from all sources is critical for achieving the objectives of the Convention.
Numerous examples exist of action to achieve the resource mobilization targets adopted under Aichi Biodiversity Target 20. Please refer to a selection from both developed and developing countries which have either been cited in responses to the call for evidence/questionnaire or have been identified by the expert panel from other sources, notably the work of BIOFIN in developing countries. This is just a small sample to illustrate the range of activities underway directly or indirectly linked to Aichi Target 20, the resource mobilization targets, and resource mobilization more broadly:
- The Government of Costa Rica worked with BIOFIN to find solutions to the challenge of better managing liabilities acquired due to land acquisition programmes for protected areas. After detailed financial analysis and high-level consultations, and backed by a securitization agreement over tourism fees collected by the Costa Rica park system, a green bond will be issued to refund the land acquisition programme. Income-generating assets of the securitization will be sources by an enhanced protected area fee system.
- Finland: A 2019 Government decision to invest substantially in halting domestic biodiversity loss will see public funding for nature conservation increased by 100m EUR annually.
- France: In the area of Financial Market Regulation/Disclosure, a 2015 law on the Energy Transition for Green Growth requires institutional investors to disclose information related to ESG and financial risks, which was a precursor to the international level Task-force on Climate-related Financial Disclosures (TCFD). Further, in November 2019, France adopted a new regulation that will require financial market participants to disclose how they take into consideration biodiversity-related risks in their sustainability/ESG assessments. Work is also ongoing to assess the impact of the private sector on biodiversity. As an illustration, CDC Biodiversité developed the Global Biodiversity Score (GBS). This corporate biodiversity footprint assessment tool focuses on the biodiversity impacts of economic activities across their value chain, in a robust and synthetic way.
- Germany has provided more than 500m EUR per year for conservation of forests and other ecosystems worldwide: this has more than quadrupled since 2007. There has been a focus on development of sustainable finance mechanisms for PAs, such as low-interest loans and the opening up of new funding sources from the private sector. Effort has also been devoted to mainstreaming of biodiversity into agriculture, water and sustainable economic development projects and programmes.
- Japan introduced its made Development Cooperation Charter in November 2015, and biodiversity conservation and others are written in “Building a sustainable and resilient international community through efforts to address global challenges”, which is one of priority issues. Based on this charter, Japan has been supporting conservation projects of biodiversity and ecosystems in various locations in the world.
- In Mexico, SVX Mexico, an impact investment advisory firm, together with BIOFIN and the Mexican Fund for the Conservation of Nature, established the Regenerative Investment Consortium to facilitate investment flows and build capacity in conservation organizations and investees. The investment portfolio will feature companies operating sustainably in the fisheries, agriculture, forestry, tourism, water, ranching, landscape management and green infrastructure sectors.
- In the Seychelles, there is a strong business case for tourism operators to invest in conservation given their dependency on the preservation of pristine environments for attracting tourists. Work is ongoing, supported by UNDP BIOFIN, to create an enabling fiscal framework for the private sector to invest more and better in biodiversity, including through the introduction of tax deductions for expenditures incurred to obtain certifications, wages of biodiversity employees and other expenditure related to biodiversity conservation. A Debt-for-Nature Swap has been brokered by The Nature Conservancy, whereby through the of acquisition of $20M of sovereign debt, $5m of philanthropic funding is able to generate $432K per year for marine conservation and funding of an endowment.
- In Sri Lanka, within the mandate of the Central Bank Road Map, BIOFIN is working with partners to design a business case for green financing products. This work is expected to produce an increase in the size and number of business loans connected to the sustainable use of biodiversity and natural resources to Small and Medium Enterprises (SMEs). Initial steps will involve increasing awareness of biodiversity conservation and sustainable use in the financial and production sectors.
- South Africa’s stewardship programmes are contributing significantly to national conservation targets. Biodiversity stewardship is an approach to securing land in biodiversity priority areas. Agreements are entered into between conservation authorities and private and communal landowners, often with the support of conservation NGOs. Landowners maintain ownership of their land, receive guidance and management assistance, and are supported to diversify their income with compatible sustainable livelihoods, all the while protecting biodiversity. This creates substantial cost-savings for the South Africa government as it seeks to reach protected area targets. Tax benefits have been developed to support landowners, acknowledging that the long-term commitment of land to protected area status and helping to offset the costs of managing the land.
- United Kingdom funding for international biodiversity conservation increased from a baseline of £77.4m per annum between 2006 and 2010 to over £180m in 2015. The United Kingdom is investing £5.8bn to support International Climate Finance between 2016 and 2021, which is helping to halt deforestation and help communities to protect and restore forests. The United Kingdom has also announced a range of new funds for international biodiversity, notably a £220 million International Biodiversity Fund which includes £100 million for a new Biodiversity Landscapes Fund targeted on global biodiversity hotspots. In spring 2019 the United Kingdom Treasury commissioned an independent review into the economics of biodiversity, to be led by Professor Sir Partha Dasgupta, Emeritus Professor of Economics at the University of Cambridge. The Review is global in scope and aims to assess the economic value of biodiversity; to assess the economic costs and risks of biodiversity loss; and to identify actions that will simultaneously enhance biodiversity and deliver economic prosperity.
Resource Mobilization component of the post-2020 Global Biodiversity Framework