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Biodiversity, water and natural resource management

Biodiversity finance

 

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Biodiversity finance is critical for delivering the transformative changes needed to halt and reverse the loss of biodiversity and ecosystem services. The OECD’s work examines how to scale up public and private finance for biodiversity, enhance the cost-effectiveness of biodiversity financing and better track biodiversity-relevant financial flows. The OECD also considers how to address the distributional implications of biodiversity policies and finance.

Latest ReleaseS

  • , September 2021

The OECD Environmental Policy Committee, through its unique database of Policy Instruments for the Environment (PINE), collects quantitative and qualitative information on policy instruments from more than 120 countries worldwide. This brochure presents statistics on the biodiversity-relevant economic instruments and the finance they mobilise, based on currently available data in PINE. This 2021 update of the brochure also includes information on payments for ecosystem services (PES) and on biodiversity offsets, two other types of economic instruments that provide incentives for biodiversity conservation and its sustainable use.

The data on PES and on biodiversity offsets were collected via a questionnaire conducted in 2020-21. The data can be used to monitor progress towards proposed Target 18 of the post-2020 Global Biodiversity Framework (on incentives) and Target 19 (on resource mobilisation), and are used to monitor progress towards Sustainable Development Goal (SDG) Target 15.a. on biodiversity finance.

 

 

Nature underpins all economic activities and human well-being. It is the world’s most important asset. Yet humanity is destroying biodiversity at an unprecedented rate, posing significant but often overlooked risks to the economy, the financial sector and the well-being of current and future generations.

This report provides the latest findings and policy guidance for G7 and other countries in four key areas: measuring and mainstreaming biodiversity; aligning budgetary and fiscal policy with biodiversity; embedding biodiversity in the financial sector; and improving biodiversity outcomes linked to international trade. The report shows how Finance, Economic and Environment Ministries can drive the transformative changes required to halt and reverse the loss of biodiversity.

This Policy Paper was prepared as an input document for the United Kingdom Presidency of the G7 in 2021.

 

The OECD provided a preliminary update on global biodiversity finance in the report Biodiversity: Finance and the Economic Business Case for Action, prepared for the G7 Environment Ministers’ meeting in May 2019. As one of three components of follow-up work, the G7 Environment Ministers’ communiqué (paragraph 50) invited the OECD to complete a comprehensive overview of global biodiversity finance.


This follow-up report provides an in-depth analysis of global biodiversity finance flows. It combines and aggregates information across various datasets, covering public, private, domestic and international flows. The report also provides an overview of government support potentially harmful to biodiversity, and offers recommendations for improving the assessment, tracking and reporting of biodiversity finance.


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