Financing for Development in Support of Biodiversity and Ecosystem Services

Abstract

This paper considers the key financing challenges and opportunities for realising both biodiversity conservation and sustainable development objectives. It considers the full range of possible sources, from public and private, domestic and international sources, but has a focus on public resources. The first part of this paper examines trends in bilateral commitments of official development assistance (ODA) targeting biodiversity objectives, drawing on OECD development assistance committee (DAC) creditor reporting system (CRS) statistics. The paper also discusses the effectiveness of these finance flows in achieving long-lasting results. The second part of the paper explores how development co-operation can support partner countries to mobilise and access other sources of finance for biodiversity, through mechanisms such as environmental fiscal reform, payments for ecosystem services, market creation mechanisms for green products, and conservation trust funds. Support can target the development of knowledge, technical skills, and strengthen governance and legal institutions. The paper concludes with suggested areas for further research to gain a deeper understanding of biodiversity-related development finance.