The Aichi biodiversity target 3 called the countries to eliminate, phase out or reform the subsidies harmful to biodiversity and introduce biodiversity-positive incentives. It is also supposed that the Post-2020 Global Biodiversity Framework to be adopted at COP15 will also include the target on harmful subsidies. The Resource Mobilization Strategy and the Long-term Strategic Approach to Mainstreaming will also cover the issues related to harmful subsidies.

The first step toward transforming harmful subsidies into biodiversity-positive investments is the identification of such negative investments. There are cases of reforming harmful subsidies. However, so far there is no accepted methodology for distinguishing harmful subsidies. Therefore, it is a challenge for the countries to achieve this target, avoid future negative impacts on biodiversity and at the same time mobilize additional funding for the implementation of biodiversity-related activities.

The side event will showcase the process carried out in Georgia aiming at assessing agricultural subsidies harmful to biodiversity and developing new biodiversity-positive agricultural programmes. The process was initiated by the Ministry of Environmental Protection and Agriculture of Georgia (MEPA) and implemented by the Biodiversity Finance Initiative (BIOFIN) in 2021-2022. The project „Measuring and addressing potential adverse impacts on biodiversity from agricultural subsidies“ has explored the agricultural subsidies provided by the MEPA, and identified the types and scale of negative impact on biodiversity. The project has also developed recommendations for the development of the new biodiversity-positive subsidies, as well as activities to be implemented at the agricultural policy level.