BIODIVERSITY FINANCE

TAG: GS 3: ECOLOGY AND ENVIRONMENT

THE CONTEXT: A recent report commissioned by the Campaign for Nature underscores the critical need for developed countries to fulfill their commitment to provide $20 billion annually in biodiversity finance to developing countries by 2025.

EXPLANATION:

• This target, established as part of the Kunming-Montreal Global Biodiversity Framework adopted at COP16, aims to halt and reverse global biodiversity loss.

Highlights of the report:

• The report reveals a concerning shortfall in contributions from developed countries.
• Of the 28 countries assessed, only Norway and Sweden are exceeding their fair share of contributions.
• The analysis, which considers historical impact on biodiversity, ability to pay, and population size, indicates that most countries need to at least double their current funding levels to meet the $20 billion target.
• Contributions by Country
  • Norway and Sweden: Exceeding their fair share.
  • Germany: Contributing 99% of its fair share.
  • France: Contributing 92% of its fair share.
  • Australia: Contributing 74% of its fair share.
  • Japan, United Kingdom, Italy, Canada, Korea, and Spain:
• These countries represent the largest dollar gaps, collectively accounting for 71% of the total shortfall.

Recommendations for Closing the Funding Gap

• To address this funding deficit, the Campaign for Nature outlines several key recommendations:
  • Increase Public Funding: Developed countries must significantly boost their financial contributions.
  • Ministerial Level Initiative: Establish a high-level initiative to coordinate the delivery of the $20 billion target.
  • Mobilize Private Resources: Encourage private sector investment through regulations and incentives, complementing public and philanthropic funding.

Role of the United States

• The report emphasizes the critical role of the United States, which, despite not being a party to the UN Convention on Biological Diversity, has the world’s largest economy and historical biodiversity footprint.
• The US is urged to substantially increase its international nature finance to support global biodiversity efforts.

Importance of Meeting the $20 Billion Target

• Achieving this financial commitment is essential for several reasons:
  • Trust Building:
    • Meeting the target is crucial for fostering trust between the Global North and Global South, particularly ahead of COP16 in Colombia.
    • Developing countries, which harbor much of the world’s biodiversity, disproportionately bear the responsibility and costs of conservation.
  • Economic Returns:
    • Protecting biodiversity can yield significant economic benefits. According to the World Economic Forum, half of global GDP ($44 trillion annually) depends on nature.
    • The $20 billion investment is a modest contribution relative to the economic benefits provided by biodiversity.
  • Global Stability:
    • Continued ecological loss threatens food and water supplies, climate stability, public health, and global security.
    • The Organisation for Economic Co-operation and Development (OECD) estimates annual losses of $4-20 trillion from 1997 to 2011 due to biodiversity decline.

Consequences of Failing to Meet the Target

• Failure to meet the $20 billion target would undermine the UN Convention on Biological Diversity and damage global trust.
• More importantly, it poses a serious threat to shared prosperity, livelihoods, economies, and health.
• Increased contributions from high-income countries are critically important and must be realized to prevent these negative outcomes.

Kunming-Montreal Global Biodiversity Framework

• The Kunming-Montreal Global Biodiversity Framework (GBF) is a global agreement between countries to protect biodiversity and ensure its sustainable use.
• The GBF is currently under negotiation, with the aim of finalizing the agreement at the 15th meeting of the Conference of the Parties to the Convention on Biological Diversity (CBD) in Kunming, China, in 2022.
• The GBF builds on the Strategic Plan for Biodiversity 2011-2020, which was adopted by the CBD in 2010, and aims to set out a new, ambitious framework for biodiversity protection and restoration beyond 2020.
• The GBF is expected to be structured around a set of targets and indicators, which will help to track progress and hold countries accountable for their commitments.
• The GBF is viewed as a critical tool for achieving the United Nations Sustainable Development Goals, particularly Goal 14 (Life Below Water) and Goal 15 (Life on Land).
• The agreement is also seen as essential for ensuring the long-term viability of ecosystems and the many services they provide to human societies, such as food, water, and clean air.

SOURCE: https://www.downtoearth.org.in/news/wildlife-biodiversity/biodiversity-finance-report-highlights-need-to-meet-target-of-providing-20-billion-a-year-to-developing-countries-from-2025-96796