Welcome to Stockholm Resilience Centre Research for Governance of Social-Ecological Systems

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1 Welcome to Stockholm Resilience Centre Research for Governance of Social-Ecological Systems Biodiversity in international development finance Maria Schultz The Resilience and Development Programme - SwedBio at Stockholm Resilience Centre

2 Is Innovative Financial Mechanisms, IFM, other financing than ODA? Can ODA provide seed money for IFM? Can IFM provide tools under ODA? Can IFM be a source to meet needs of new and additional? Art 20 of CBD IFM is supplementary to GEF (Decision X/3 of CBD) IFM is one source to meet obligations for increased resources (Target 20 in Strategic Plan, Decision X/2, and para 8 of follow up of Strategy for resource mobilization X/3 of CBD) What international development financing tools are we talking about? Should the international financing for biodiversity under IFM always meet both development and biodiversity goals? Is it public or private sources or market based ones?

3 Recap Decision IX/11B and the Strategy for Resource Mobilization Goal 4: Explore new and innovative financial mechanisms at all levels with a view to increasing funding to support the three objectives of the Convention 4.5. To integrate biological diversity and its associated ecosystem services in the development of new and innovative sources of international development finance, taking into account conservation costs. Goal 3: increase ODA associated with biological diversity, if priority by developing country parties Goal 5: Mainstream biological diversity and ecosystem services in development cooperation, taking into account the Paris Declaration on Aid Effectiveness

4 Workshop on IFM, Bonn now Biodiversity in International Development Finances Development context - biodiversity outcomes and development outcomes Options for financial innovations for biodiversity and ecosystem services within the international flows of funds for development 1. Innovative approaches to the use of funds public good to secure natural capital/ (common good e.g. fish stock)/ private e.g. sectors 2. Innovative approaches to the sources of funds ODA mainstreaming, Public finance e.g. turning perverse subsidies to green development, FDI mainstreaming, remittances co-financing 3. Innovative international finance mechanisms mainstreaming, clearinghouse/brokering, funding e.g. from private sector In addition, the Yasuni-ITT proposal was also suggested.

5 Biodiversity in ODA Monterrey consensus, need for developed countries to live up to the target of allocating 0.7 % of GNI as ODA Measure funding for biodiversity under OECD DAC Rio markers Aid under Paris Declaration on Aid Effectiveness (for country ownership, alignment, harmonization etc) increasingly channeled as sector and/or budget support decreasing funds available as dedicated/earmarked funds. Increased focus on integration of biodiversity and associated ecosystem services concerns in developing country development/planning framework and budgeting, and sector integration Biodiversity and ecosystem services provides local livelihoods and sustainable use of biodiversity in productive landscapes and can contribute to poverty reduction Explore synergies between climate and biodiversity financing

6 Traditional International Financing Bilateral aid Multilateral aid International NGOs Philantropy Innovative international financial mechanisms Levy on insurance premiums Natural Capital Bonds Auctioning of allowances Financial Transaction Tax (Tobin Tax) Aviation Tax or Levy Synergies climate and biodiversity finance International Payments for Ecosystem Services (REDD, Yasuni ITT) In above: Funding of and mainstreaming of biodiversity and ES Fiscal Reforms Removing harmful subsidies funding green development

7 Institutions and Governance Mechanisms for delivery Ex: Clearing house e.g. Life Web, Trust funds Advisable not to fragment Need to learn from ODA e.g. regarding transparency, harmonization, alignment, efficiency, ownership, participatory approaches, rights issues and understanding of tenure and user rights, socio-cultural understanding, importance of gender issues in development and safeguards etc.

8 Safeguards UNFCCC Safeguards under REDD: - Safeguards concerns the issues of participation of Indigenous People and Local Groups, biodiversity conservation, good governance, no conversion of natural forest Lessons learned from ODA safeguards or conditionalities - such as mainstreaming issues as gender, human rights and democracy, environment, conflict etc, through EIA and SIA etc. General suggestions for safeguards could be: - to meet the three objectives of the Convention on Biological Diversity, and to meet the needs and objectives of main human rights and ILCs conventions, and to consider tenure and user rights of local peoples e.g. their access to resources they have traditionally used for their livelihood...[to be develop] Safeguards demanded by Market: Karmali of Bank of America Merrill Lynch - the Cancún Agreement achieved elements needed to ensure private sector involvement, such as inclusion of safeguards Karmali highlighted the urgency of designing and enforcing safeguards

9 Safeguards Compliance Compliance structures - Ombudsman - Inspection Panel, World Bank Compliance challenges Complaints procedure with mandatory outcomes Monitoring, reporting and verification of the adherence to the safeguards The burden of proof Could be dealing with politically and economically marginalized communities with lack of capacity Need for capacity building by developing country local government, ILC, IPOs and NGOs

10 Conclusions? IFM is other financing than ODA, but ODA can provide seed money, and IFM can provide tools under ODA? IFM is one source to meet new and additional Focus on which Innovative international financial mechanisms to explore further IFM should meet both biodiversity and development goals Make distinction between source, could be public or private, and mechanisms for delivery Use of funds should be highlighted, effectiveness etc Safeguards to be developed, including structures and compliance measures.