In a recent press conference at the 16th Conference of Parties to the United Nations Convention on Biological Diversity (COP16), leaders highlighted the urgent need for more financial support from wealthy countries to protect global biodiversity.
The focus was on Target 19a of the Kunming-Montreal Global Biodiversity Framework (GBF), which requires developed nations to provide at least $20 billion each year to help developing countries with biodiversity efforts by 2025.
Experts from different environmental groups stressed that securing funds is essential to successfully carry out the GBF, an agreement made during COP15.
They pointed out the challenge of a global biodiversity finance gap, which is estimated to be around $700 billion annually. Target 19a has two main goals: Redirecting $500 billion from harmful subsidies to protect nature and raising an additional $200 billion in new funding.
Recent data revealed that only $15.4 billion was raised in 2022, indicating that progress is falling short with just two months left before the 2025 deadline. Alarmingly, public financing for biodiversity has not significantly increased in 2024, reported Bloomberg, with many European countries cutting their budgets for environmental projects.
Furthermore, the amount of international finance going to projects primarily focused on biodiversity has decreased since 2015. Much of the recent reported increases are from projects that only have limited or tangential benefits for biodiversity, including projects of humanitarian aid or higher education.
Banaedet Fish Lahoepeg from Worldwide Fund for Nature highlighted the importance of public funding, pointing out that it has declined since 2015. The conference noted that 84 per cent of funding for nature comes from public sources, warning against relying too much on private funding that hasn't been effective.
Focusing on these issues, the conference outlined three key actions:
Increase financial support: Governments need to boost their financial contributions, primarily through grants and not loans to prevent worsening the debt issues in many developing nations.
Establish political leadership: A strong strategy for mobilizing resources is crucial, which includes creating a group of ministers to ensure accountability and help deliver the promised $20 billion.
Funding for Indigenous Peoples and Local Communities: It’s urgent to increase financial support aimed at Indigenous Peoples and local communities, with a clear system to track how that money is spent.
Speakers pointed out that the loss of biodiversity represents a significant global risk today. The accelerating decline of species threatens ecological stability and human well-being. Reports from the World Economic Forum also listed biodiversity loss as one of the top global risks.
To close the biodiversity funding gap effectively, an estimated annual flow of about $4.6 billion is needed, requiring commitments of around $300 million each month until the end of 2025.
Countries like Canada, the United Kingdom and Japan were urged to meet their financial commitments. While some countries are contributing up to 99 per cent of what they promised, others are lagging behind, which threatens the overall efforts.
Addressing these disparities is crucial, as meeting the $20 billion target is only the first step in tackling the larger biodiversity crisis.
To improve cooperation and build trust, five key steps were proposed by the groups:
Allocate resources for biodiversity plans: Countries need the necessary resources to create and implement national biodiversity strategies and action plans.
Agree on a resource mobilisation strategy: A detailed plan must be developed to secure resources from 2025 to 2030, including aims to reach the $20 billion target by 2025.
Continued financial support: The Global Environment Facility must continue to provide financial support aligned with GBF goals.
New financial mechanisms: A funding mechanism must be set up to compensate Indigenous Peoples for their contributions to biodiversity.
Clarify CBD funding needs: Clear agreements must specify if additional funds are needed for the Convention on Biological Diversity.
The urgency of these demands was emphasised by a speaker from Greenpeace, who stated that COP16 must create a solid plan for resource mobilisation, ensuring that money is readily available to meet the ambitious commitments made during COP15.
The $20 billion target is just the beginning of a larger effort to effectively address the global biodiversity crisis. Wealthy nations must act quickly to close the funding gap and honor their commitments to support biodiversity initiatives in developing countries.