contains the provisions on domestic financial support and incentives, international financial support through a financial mechanism and bilateral, regional and other multilateral channels, as well as the relationship between domestic and external efforts, and consideration for specific needs and special conditions.
Article 20 of the Convention provides for architectural design of financial cooperation for biodiversity and ecosystem services. To implement Article 20, the Conference of the Parties adopted a strategy for resource mobilization in support of the achievement of the Convention’s objectives in May 2008. The strategy set in motion the process of developing funding targets, indicators and concrete activities and initiatives, as well as implementation and monitoring arrangements.
As part of its medium-term programme of work, the first meeting of the Conference of the Parties (COP 1) decided to consider the financial mechanism and resources as one of standing items on its agenda (decision I/9
). COP 1 also adopted the policy, strategy, programme priorities and eligibility criteria for access to and utilization of financial resources, and decided that the restructured Global Environment Facility (GEF) shall continue to serve as the institutional structure to operate the financial mechanism under the Convention on an interim basis. The COP decided to consider a memorandum of understanding between the COP and the GEF Council. In addition, the COP requested a study on the availability of financial resources additional to those provided through the GEF and on the ways and means for mobilizing and channeling these resources in support of the objectives of the Convention (decision I/2
In decision II/6
, the COP agreed on several aspects of the relationship between the Convention and the GEF, and decided to undertake the first review of the effectiveness of the financial mechanism at its fourth meeting and a review every three years. COP 2 also decided to continue the work to identify additional financial resources to support the objectives of the Convention, and to study characteristics specific to biodiversity activities in order to develop suggestions to funding institutions on how to make their activities in the area of biodiversity more supportive of the Convention.
COP 3 successfully adopted the guidelines for the review of the effectiveness of the financial mechanism (decision III/7
), memorandum of understanding between the COP and the GEF Council (decision III/8
), as well as a list of additional guidance to the financial mechanism (decision III/5
). The COP recognized that the financial mechanism shall function under the authority and guidance of and be accountable to the Conference of the Parties for the purposes of the Convention and that GEF will operate the financial mechanism of the Convention on an interim basis in accordance with Article 39 of the Convention. The memorandum of understanding covers: guidance from the Conference of the Parties, reporting from the GEF Council, monitoring and evaluation, determination of funding requirements, reciprocal representation and inter-secretariat cooperation, etc..
In decision III/6
, the COP recognized the importance of identifying alternative sources of funding in support of the Convention, and decided to compile information on financial support fort he Convention. The COP also decided to explore ways of collaboration with funding institutions and to explore further possibilities for encouraging the involvement of the private sector in supporting the Convention’s objectives.
At its fourth meeting, the COP conducted the first review of the effectiveness of the financial mechanism, and adopted eleven pieces of action to improve the effectiveness. The COP provided a list of additional guidance to the financial mechanism and further requested advice on matters relating to further guidance to the financial mechanism (decision IV/11
and decision IV/13
). In decision IV/12
, the COP noted concerns over the downward trend of development assistance in the past few years, and also noted the lack of comprehensive information about trends in development assistance with respect to biological diversity. In addition, COP 4 requested proposals to advance the work on financial resources.
COP 5 made progress on several fronts: to promote coordination and collaboration with funding institutions through the development of a funding database and the organization of a workshop on financing for biodiversity; to monitor financial resources; to improve relationship with funding institutions as well as to promote the involvement of the private sector (decision V/11
). It required Parties to establish a process to monitor financial support to biodiversity, and invited funding institutions to develop a reporting relationship with the Convention. It also resolved that the involvement of the private sector shall be included on the agenda of the COP at its regular meetings and be integrated into the sectoral and thematic items under its programme of work. In addition, the COP adopted the terms of reference for the second review of the financial mechanism and a list of further guidance to the financial mechanism (decision V/12
and decision V/13
In decision VI/16
, the COP emphasized the need for a substantial increase of international financial support to the implementation of the Convention and the easier flow of such assistance, and noted the efforts to develop partnership aiming at promoting financial investments in biodiversity and the initiation of the Convention Finance Alliance. It invited further sharing of information and experience and agreed to review national budgets and monetary policies, including the effectiveness of official development assistance allocated to biological diversity, with a view to promoting the conservation and sustainable use of biological diversity. COP 6 also initiated efforts to develop a global initiative on banking, business and biodiversity and to consider the impacts of external debts on the conservation and sustainable use of biodiversity. In decision VI/17
(financial mechanism under the Convention), the COP provided a list of additional guidance to the financial mechanism, and adopted several measures to improve the effectiveness of the financial mechanism.
At its seventh meeting, the COP provided a list of additional guidance to the financial mechanism, and decided that the report from the Global Environment Facility Council should be made available three months prior to an ordinary meeting of the Conference of the Parties as well as with updates as appropriate and in all six United Nations languages (decision VII/21
). It also adopted guidelines for the third review of the effectiveness of the financial mechanism in which an independent evaluator should be commissioned to undertake the study (decision VII/22
contains a comprehensive list of action to be undertaken by Parties and Governments as well as donor-related agencies in the context of the Strategic Plan of the Convention and associated targets. Among others, Parties and Governments were invited to enhance the integration of biological diversity into their sectoral development and assistance programmes, to develop and encourage biodiversity-related partnership arrangements, and further explore opportunities to utilize various initiatives including debt-relief instruments to promote conservation and sustainable use of biodiversity.