Decision COP VII/18

Recognizing the need to remove policies or practices that create perverse incentives that lead to the degradation and loss of biological diversity, or to mitigate these perverse incentives, as a crucial element in national and global strategies to halt the degradation and loss of biodiversity,

Stressing that these incentives and mitigation measures should not adversely affect biodiversity and livelihoods of other communities, and should be applied in a manner consistent with international law,

Noting that the Addis Ababa Principles and Guidelines for the Sustainable Use of Biodiversity also call for the removal or mitigation of policies, laws and regulations that generate perverse incentives,

Underlining the need for further policy guidance on this issue, in particular with regard to the application of ways and means to remove or mitigate perverse incentives,

Recognizing that new policies should also be examined with a view to identifying, and avoiding, potential perverse incentives,

Recalling the programme of work on incentive measures established in decision V/15 of the Conference of the Parties and the recognition by the Conference of the Parties at its sixth meeting that further work needs to be undertaken on the role of positive incentives and their performance as well as on perverse incentives and ways and means for their removal or mitigation, as reflected in decision VI/15,

Recalling further its request to the Executive Secretary, in paragraph 7 of decision VI/15, to elaborate, in collaboration with relevant organizations, proposals for the application of ways and means to remove or mitigate perverse incentives, for consideration by the Subsidiary Body on Scientific, Technical and Technological Advice, at a meeting prior to the seventh meeting of the Conference of the Parties,

Acknowledging that the proposals for the application of ways and means to remove or mitigate perverse incentives as elaborated by the second workshop on incentive measures, held in Montreal from 3 to 5 June 2003, contain valuable and useful elements that provide a general framework to address the removal or mitigation of perverse incentives in different economic sectors and ecosystems, but need further refinement and consideration before adoption by the Conference of the Parties,

Recognizing that the development and application of practical methods of assessing trends in the economic and social value of biodiversity and of demonstrating the economic and ecological consequences of biodiversity loss are essential elements in meeting the 2010 target,

Recognizing the important work undertaken by the Organisation for Economic Cooperation and Development and the Millennium Ecosystem Assessment regarding the economic aspects of biodiversity and the assessment of biodiversity values,