Presentation from OECD-UNDP Global Conference on Biodiversity Finance, 15 April 2020

1. THE GLOBAL BIODIVERSITY
FINANCE LANDSCAPE
A SNAPSHOT
Edward Perry
Biodiversity, Land Use and Ecosystems (BLUE) programme
Climate, Biodiversity and Water Division
Environment Directorate, OECD

2. Sources Intermediaries Implementers
Public
• Government budgets
(revenue from taxes, fees and charges)
Private
• Household revenues and savings
• Corporate revenues and savings
Public
• Ministries
• Public agencies and funds
• Development finance institutions
(national, bilateral, multilateral)
• Global Environment Facility (GEF) and
multilateral funds
Private
• Institutional investors
• Asset managers
• Commercial banks
• Philanthropic foundations
Public
• Local and central government
• Protected area agencies
• Public utilities
Private
• Conservation NGOs
• Private companies
• Households and communities
Sources Implementers
Intermediaries
Source: OECD (2020), A Comprehensive Overview of Global Biodiversity Finance
oe.cd/biodiv-fin-report
Finance instruments and mechanisms
• Grants, subsidies and transfers
• Concessional debt
• Commercial debt
• Equity and own funds
• Payments for ecosystem services
• Biodiversity offsets
• Water quality trading and offsets
• Forest and land use carbon offsets

3. OECD estimates biodiversity finance at USD 78-91 bn/yr
PUBLIC DOMESTIC PRIVATEPUBLIC INTERNATIONAL
Source: OECD (2020), A Comprehensive Overview of Global Biodiversity Finance
oe.cd/biodiv-fin-report
67.8
USD bn/yr
3.9-9.3
USD bn/yr
6.6-13.6
USD bn/yr
81 governments
(2015-2017 data)
Source: CBD, BIOFIN, COFOG
and other
Bi/multi-lateral ODA and
non-concessional flows
(2015-2017 data)
Source: OECD CRS
Sustainable commodities,
philanthropy, PES, others
(2015-2017 data)
Source: multiple sources

4. Governments spend much more on harmful activities
78-91
USD billion
~500
USD billion
ANNUAL BIODIVERSITY
FINANCE FROM ALL SOURCES
ANNUAL GOVERNMENT SUPPORT
POTENTIALLY HARMFUL TO BIODIVERSITY
vs
Source: OECD (2020), A Comprehensive Overview of Global Biodiversity Finance oe.cd/biodiv-fin-report
OECD (2019), Biodiversity: Finance and the Economic and Business Case for Action oe.cd/bio-fin-econ-case4action

5. Improve assessment, tracking and reporting of
biodiversity finance flows
Source: OECD (2020), A Comprehensive Overview of Global Biodiversity Finance
oe.cd/biodiversity-finance
• Encourage Parties to report data to CBD financial reporting framework by category (rather than total
domestic finance) and provide information on underlying methodology
• Develop and agree on an internationally harmonised approach for assessing and tracking public
biodiversity finance, building on existing frameworks and classification systems
• Establish a common framework to assess and track private finance for biodiversity, drawing lessons
from OECD’s Research Collaborative on Tracking Finance for Climate Action
• Increase national-level efforts to identify, assess and track harmful public expenditure
• Develop guidance and adopt measures to evaluate the effectiveness of biodiversity finance flows,
and related finance instruments and mechanisms

6. Tracking economic instruments and the finance
they generate (Aichi Target 3)
Source: oe.cd/biodiversity-finance
0
10
20
30
40
50
60
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Numberofcountries
Number of countries with biodiversity-relevant taxes

7. 197
New Finance Solutions identified to
reduce finance needs
Outlines the architecture
of the process - anchored
in strengthened national
partnerships between
Finance and Environment
Ministries
2018 BIOFIN
Workbook30
Inventories of existing financing
mechanisms
30
National measurements of Biodiversity
Expenditures
30 National Financial Needs Assessments
30 Biodiversity Finance Plans
First generation of national Biodiversity Finance
Plans developed

8. The Catalogue of Biodiversity Finance Solutions
1. Biodiversity offsets
2. Bioprospecting
3. Biosafety fee
4. Carbon markets
5. Conservation easement (external-analysis)
6. Conservation or wildlife themed items
7. Corporate and corporate foundations' donations
8. Corporate social responsibility tax
9. Corporate sustainability
10. Crowd funding
11. Debt-for-Nature Swaps
12. Disaster risk insurance
13. Earmarking & retention of biodiversity revenues
14. Ecological fiscal transfers
15. Effective procurement
16. Enterprise challenge and innovation funds
17. Environmental risk insurance
18. Financial and operational mergers
19. Green banks
20. Green bonds
21. Green lending
22. Green procurement
23. Cost effectiveness measures
24. Human resources management
25. Impact investment
26. Enhance public budget execution
27. Incentives for sustainable business
28. Enhanced Land or Marine Stewardship
29. Islamic finance
30. Lobbying for public budget allocations
31. Lotteries
32. Lower cost of capital for conservation
investments
33. Mobile banking
34. Mobilization of private donations
35. Increasing Official Development Assistance (ODA)
36. Promoting Natural capital accounting
37. Outsourcing strategies
38. Payment for Ecosystem Services
39. Compensation for planned environmental damage
40. Penalties and other compensation for unplanned
environmental damage
41. Promotion of sustainable tourism
42. Non-State Protected Areas
43. Financial guarantees
44. Remittances
45. Result based budgeting
46. Social and development impact bonds
47. Sovereign Wealth Funds
48. Change subsidies harmful to biodiversity
49. Sustainability standards and certification
(voluntary)
50. Biodiversity friendly subsidies
51. Earmarking of taxes on financial
transactions
52. Taxes, fees and quotas in the fishery
sector
53. Taxes on natural resources (non-
renewables)
54. Taxes on renewable natural capital
55. Taxes, Fees and Royalties in the
Forestry Sector
56. Tariffs, fees and taxes in the water
sector
57. Taxes on pesticides and fertilizers
58. Taxes and fees in the tourism sector
59. Taxes and fees in the wildlife sector
60. Technology upgrade and maintenance
61. Trade finance
62. Trust funds
63. Venture capital
64. Water markets
65. Fees, penalties, and management
expenditures for Environmental (and Social)
Impact Assessment
66. Finance for Permanence
67. Pasture (and grazing) Fees
www.biodiversityfinance.net/finance-solutions

9. oe.cd/biodiv-fin-report oe.cd/bio-fin-econ-case4actionoe.cd/biodiversity-finance www.biodiversityfinance.net www.biodiversityfinance.net
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