Mainstreaming Biodiversity for Sustainable Development POLICY HIGHLIGHTS

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1 Mainstreaming Biodiversity for Sustainabe Deveopment POLICY HIGHLIGHTS

2 Mainstreaming Biodiversity for Sustainabe Deveopment Biodiversity underpins a ife and provides vita benefits to our societies and economies. Yet despite this, pressures from and use change, over-expoitation of natura resources, poution and cimate change are contributing to an aarming oss of iving diversity. We have to reverse these trends. Biodiversity and ecosystem services provide invauabe but often invisibe benefits at goba, regiona and oca scaes. These incude services such nutrient cycing, habitat provisioning, poination, erosion contro and cimate reguation. The need to mainstream biodiversity and ecosystem services more effectivey into nationa and sectora poicies has recenty gained renewed impetus on the goba poicy agenda. In ine with the Convention on Bioogica Diversity and the Aichi Biodiversity Targets, the 2030 Agenda for Sustainabe Deveopment paces strong emphasis on biodiversity for achieving these goba goas. The purpose of OECD (2018) Mainstreaming Biodiversity for Sustainabe Deveopment is to highight exampes of good practice, and remaining chaenges, in four key areas. These areas are: mainstreaming biodiversity at the nationa eve; mainstreaming biodiversity in the agricuture, forestry and fisheries sectors; deveopment co-operation and biodiversity mainstreaming; and monitoring and evauating biodiversity mainstreaming. Insights are drawn from 16 predominanty megadiverse countries (or those with biodiversity hotspots) as these countries host some of the richest and often most threatened biodiversity in the word. The countries examined aso span the fu range of income groups, from high-income economies such as Austraia and France to ower-income economies such as Ethiopia and Madagascar. The report is intended for biodiversity poicymakers and practitioners in deveoped and deveoping countries, as we as for deveopment co-operation agencies and other nationa ministries. We hope this study wi be of use as together we strive to deveop better, more mainstreamed, biodiversity poicies for better ives. ANGEL GURRIA, OECD Secretary Genera

3 1Mainstreaming Biodiversity the internationa context POLICY HIGHLIGHTS Achieving sustainabe deveopment for our peope, our panet, our prosperity is one of the top poicy priorities of our time. Mainstreaming biodiversity and the vaue of our natura ecosystems into economic growth and deveopment objectives is a crucia eement of this, as refected by Sustainabe Deveopment Goas (SDGs) 14 and 15 on Life under Water and Life on Land, among others. This has aso ong been recognised under the Convention on Bioogica Diversity (CBD) and the Aichi Biodiversity Targets. Terrestria and marine biodiversity provide a wide range of ecosystem services such as food provisioning, water purification, habitat provisioning, erosion contro, nutrient cycing and cimate reguation, a of which humans depend on to support ife. Despite the fundamenta importance of biodiversity to the economy, society, heath and cutura systems, biodiversity oss continues wordwide as the pursuit of economic growth and deveopment eads to the conversion, and in many cases over-expoitation, of natura resources for inputs to production and consumption. Given the mutipe pressures on biodiversity, there is increasing recognition that greater efforts are needed to refect the inherent and often invisibe vaues of biodiversity and ecosystem services into a aspects of decision making. Biodiversity underpins many of the 17 SDGs, and effective mainstreaming wi be an essentia step for countries deveoped and deveoping aike to deiver on Agenda Achieving this wi require strategic, coherent and we-coordinated poicies and actions. OECD POLICY HIGHLIGHTS Mainstreaming Biodiversity for Sustainabe Deveopment. 1

4 Did you know? Strategic Goa A of the CBD Aichi Biodiversity Targets is Address the underying causes of biodiversity oss by mainstreaming biodiversity across government and society. Under this goa, Target 2 for exampe is: By 2020, at the atest, biodiversity vaues have been integrated into nationa and oca deveopment and poverty reduction strategies and panning processes and are being incorporated into nationa accounting, as appropriate, and reporting systems. For biodiversity mainstreaming to be effective, it shoud occur across a eves of government and incude a reevant stakehoders. Entry points interact and are ocated at different eves of governance (Figure 1). For exampe, incuding attention to biodiversity and ecosystem services within a nationa or sector deveopment pan is a key step in the mainstreaming process but wi not resut in changed outcomes on the ground if there is no budget aocated to impement the pan. Simiary, doing so wi be insufficient if subnationa and sector eve activities are not co-ordinated and aigned with the nationa vision and strategy. Figure 1. Entry points for mainstreaming biodiversity NATIONAL-LEVEL POLICIES AND PLANS Nationa biodiversity strategies and action pans, Nationa deveopment pans; Green Growth Strategies, poverty reduction strategies; nationa budgets; and-use panning; education Propose investment in different sectors SECTORAL LEVEL Sector deveopment pans, strategies and poicies; sector investment programme; private-sector companies; investment agencies. Key sectors: agricuture, forestry, fishing, energy, transportation, mining, waste management, infrastructure, tourism, etc Propose projects that support sectora goas Aocate budget Identify and seect projects Top-down financing and impementation DEVELOPMENT CO-OPERATION PROGRAMMES Regiona and country strategies, country operationa pans, project pans; country missions, NGO partners Buid technica capacity, support sector mainstreaming PROJECT LEVEL Project cyce Enabing conditions, strategic direction Bottom-up project identification, design, impementation, monitoring and evauation LOCAL-LEVEL Loca rura eve/loca urban eve Loca government and community action to manage, conserve and sustainaby use biodiversity and ecosystem services. e.g. district deveopment pans, decentraised sector poicies Buid oca capacity, test / demonstrate oca eve approaches Note: NGO = non-governmenta organisations. Source: Adapted from OECD (2009), Integrating Cimate Change Adaptation into Deveopment Co-operation: Poicy Guidance, 2. OECD POLICY HIGHLIGHTS Mainstreaming Biodiversity for Sustainabe Deveopment

5 2Mainstreaming biodiversity at the nationa eve POLICY HIGHLIGHTS The nationa eve entry point for biodiversity mainstreaming is an important one as it is most often at this eve that ong-term strategies are deveoped, that financing decisions are made, and where opportunities for scaabiity can be harnessed. It is aso at this eve that poitica wi must be captured. Important eements to hep foster mainstreaming and enabe its impementation in practice incude: mainstreaming biodiversity across reevant nationa pans and strategies; ensuring co-ordination and coherence across institutions and ceary defining respective roes and responsibiities; generating the evidence-base needed for informed decision-making (e.g. with respect to egisative and poicy frameworks); and mainstreaming biodiversity in nationa budgets. These issues shoud be considered in the broader context of assessment frameworks for the conservation and sustainabe use of biodiversity, which incude the need for mainstreaming (Figure 2). Reciproca mainstreaming through consistent and aigned objectives across various nationa strategies is a first step towards mainstreaming A review of Nationa Biodiversity Strategies and Action Pans (NBSAPs) of the 16 focus countries 1 suggests that most countries have recognised the need to mainstream biodiversity in their most recent NBSAPs, buiding on the Aichi Targets. A number of NBSAPs aso define specific mainstreaming targets, as we as indicators to monitor progress. For exampe, the vision of South Africa s 1. Austraia, Brazi, China, Coombia, Ethiopia, France, India, Madagascar, Mexico, Myanmar, Nepa, Peru, the Phiippines, South Africa, Uganda and Viet Nam. NBSAP inks biodiversity conservation and sustainabe use to the we-being of peope in South Africa, incudes a specific strategic objective to mainstream biodiversity into poicies across sectors, and eaborates further actions and indicators on mainstreaming. Outcomes of promoting mainstreaming in the NBSAPs are demonstrated, to some extent, through evidence of reciproca mainstreaming, i.e. whereby the importance of biodiversity and/or ecosystems is being recognised in Nationa Deveopment Pans (NDPs). Mainstreaming in other nationa-eve pans and strategies is aso occurring; however, there is arge scope for greater coherence across different nationa poicy areas. For exampe, the importance of biodiversity or ecosystems is recognised in severa of the NDPs reviewed, though in some cases this is restricted to genera strategic directions. A fewer number of NDPs incorporate specific biodiversity- OECD POLICY HIGHLIGHTS Mainstreaming Biodiversity for Sustainabe Deveopment. 3

6 Mainstreaming Biodiversity for Sustainabe Deveopment Figure 2. Assessment framework for biodiversity management and mainstreaming Assess businessas-usua What are the key pressures on biodiversity (recent and projected)? This can be determined with an assessment of business-as-usua projections for biodiversity trends (taking into account popuation and economic growth, demand for agricuture, and other variabes). This woud hep determine the reference point (or baseine) against which future progress can be assessed. Identify market/ poicy faiures Deveop ong-term vision Identify east-cost poicy options Identify safeguards What are the key sources of market and poicy faiure for each of these pressures on biodiversity (e.g. externaities and imperfect information) at the oca, nationa and internationa eves? Deveop a ong-term vision for biodiversity with a joint high-eve task force so as to mainstream biodiversity into other poicy areas and sectors (e.g. agricuture, forestry, fisheries, tourism and finance). This woud aim to ensure a more co-ordinated and coherent response to biodiversity objectives, capturing avaiabe synergies and identifying potentia trade-offs. High-eve poitica commitment is crucia at this stage. What instruments are most ikey to meet the intended goas? Identify east cost poicy options and mechanisms and areas for intervention to determine poicy priorities and sequencing. What are the potentia environmenta trade-offs? Put in pace environmenta safeguards to address these as needed. What are the ikey distributiona impications of the instrument? Consider socia safeguards to address these as needed. Stakehoder engagement Identify capacity needs What are the governance and capacity needs to effectivey impement these instruments? Are the circumstances/conditions needed for these to be effective in pace? Piot projects and country experiences Source: Adapted from OECD (2013), Scaing-up Finance Mechanisms for Biodiversity, reevant targets with associated indicators to monitor progress. Exampes of biodiversity-reevant targets and indicators that are incorporated in NDPs incude rates of deforestation, and use change and degradation (Coombia); increase in forest cover (Nepa, Uganda); species in danger of extinction; and the number and size of protected areas. In addition, the extent to which the importance of biodiversity (and/or ecosystems) is being recognised in other nationa strategies varies, and green growth strategies in particuar tend to pace a stronger emphasis on cimate change issues than on biodiversity. Some positive exampes of nationa strategies that integrate biodiversity aongside other poicy objectives incude the green growth strategy of Indonesia, the poverty reduction strategies of Brazi and Ethiopia, and the cimate change strategies of France and Mexico. Mainstreaming biodiversity in nationa strategies and poicies can be faciitated by the NBSAP preparation process, especiay when underpinned by strong stakehoder engagement. In preparing or updating the NBSAP, governments can faciitate engagement and discussion of the inkages and trade-offs between biodiversity and other nationa priorities (e.g. economic deveopment, poverty reduction, food security, heath), which in turn bosters reciproca mainstreaming. For exampe, Uganda set up a working group on biodiversity for deveopment, weath creation and socio-economic transformation to mainstream deveopment issues in its NBSAP. Once this work was competed, the group s mandate was renewed to ensure that biodiversity was mainstreamed into the NDP. Mainstreaming requires cear institutiona mandates, and strong vertica and horizonta co-ordination mechanisms Ceary identifying the roes and responsibiities of different institutions in the process towards biodiversity mainstreaming is important, as it heps to enhance transparency and accountabiity. A few NBSAPs reviewed, such as those of India and Ethiopia, ceary specify which institutions are invoved for each of the biodiversity targets and actions. In some cases, more comprehensive institutiona change has been undertaken to ensure effective impementation. Bringing together four existing institutions to estabish the French Biodiversity Agency, for exampe, was 4. OECD POLICY HIGHLIGHTS Mainstreaming Biodiversity for Sustainabe Deveopment

7 aimed at rationaising biodiversity governance and creating a one-stop shop for action on biodiversity, which can aso hep promote synergies between action on biodiversity and other environmenta agendas such as cimate change and green growth. Irrespective of whether the governance system in a country is centraised or decentraised, governments shoud aim for strong horizonta and vertica coordination and shoud institute mechanisms to hep ensure poicy coherence. Co-ordination mechanisms, through the estabishment of inter-ministeria committees or working groups for instance, can faciitate a diaogue and working reationships that are necessary to formuate and impement wideranging poicy reforms associated with reciproca mainstreaming of biodiversity and deveopment-reated issues. At east nine of the countries reviewed have some form of biodiversity-reevant inter-ministeria committee aready in pace (incuding China and Nepa). However, chaenges have arisen in many of these; for exampe, the institutions ack the authority or the resources to perform their functions, decisions taken are not binding, or they simpy do not meet as frequenty as they are supposed to. Such institutions wi not be abe to deiver on their intended objectives uness they are empowered to do so. It is perhaps timey for governments to review the existing mandates of such committees and to evauate whether and how they can be improved so as to foster biodiversity mainstreaming. Adequate human resources are needed among different sector ministries to ensure they are abe to prioritise and impement mainstreaming, and governments can buid on capacity aready in pace to tacke other environmenta issues. For exampe, in Ethiopia, environmenta units are embedded within various sector ministries with the intent to mainstream environmenta issues across sectors. Targeted capacity buiding can address gaps and shoud be focused at both nationa and subnationa eves. The Mainstream ing Biodiversity and Deveopment Initiative, for exampe, is a joint effort between the Internationa Institute for Environment and Deveopment (IIED) and the United Nations Environment Programme Word Conservation Monitoring Centre (UNEP-WCMC), funded by governments of the United Kingdom and Germany; it supports technica capacity buiding in eight African countries to promote mainstreaming. This incudes deveoping toos and guidance to support mainstreaming at nationa and subnationa eves, providing technica support to ministries in target countries, and promoting earning among different countries. Mainstreaming Biodiversity for Sustainabe Deveopment Robust, poicy-reevant and readiy avaiabe data and information are a prerequisite for mainstreaming efforts The persistent ack of sufficient and/or pubicy avaiabe data is an ongoing chaenge for mainstreaming efforts. Biodiversity-reated data are often unavaiabe, or are unreiabe and/or of insufficient quaity. Where data are avaiabe, usabiity and accessibiity can be an issue with environment-reated data fragmented across different institutions and not packaged in forms that can be utiised by various stakehoders. Austraia s NBSAP, for exampe, identifies the need to better aign research priorities and improve knowedge exchange among researchers, practitioners and poicy makers so that biodiversity-reated information is usabe beyond the scientific community. Data and information on biodiversity-reated issues are critica for estabishing baseines, quantifying benefits, targeting biodiversity expenditures to where they are most needed, and monitoring and evauating change over time in order to track mainstreaming outcomes as we as impacts. Data are usefu not ony to inform poicy making but can aso be instrumenta for effective impementation, incuding enforcement of aws and reguations. In Brazi, for exampe, a state-of-the-art sateite-based deforestation monitoring system in the Amazon biome, run by the Nationa Institute for Space Research, has enabed the government to monitor and enforce actions against deforestation. In Mexico a nationa automated mapping system was recenty aunched that aows the evauation of nationa subsidies/incentives through spatia anaysis toos. 2 Nationa Ecosystem (or Biodiversity) Assessments can provide the comprehensive information base to faciitate mainstreaming efforts. They are usefu in terms of estabishing baseines and providing a comprehensive overview of the current state of and pressures on biodiversity. A notabe assessment is that of South Africa, which aso provides spatiay expicit data on the basis of which priority areas and corresponding priority actions are identified. This has aso been used to deveop biodiversity sector pans at the oca and district eves, and overa, the quantity and quaity of data avaiabe in South Africa has been instrumenta in mainstreaming biodiversity in a number of sectors incuding mining, water infrastructure and agricuture (Manue et a., 2016) POLICY HIGHLIGHTS OECD POLICY HIGHLIGHTS Mainstreaming Biodiversity for Sustainabe Deveopment. 5

8 Mainstreaming Biodiversity for Sustainabe Deveopment In addition to data systems, assessments that demonstrate the economic contribution of biodiversity to society and the costs of ecosystem oss and degradation in monetary terms can hep make the case for mainstreaming. Such vauation exercises have been undertaken in severa countries, with support from mutiatera internationa initiatives such as The Economics of Ecosystems and Biodiversity (TEEB) and the Word Bank s Weath Accounting and the Vauation of Ecosystems (WAVES). Other types of nationa assessments can aso be instrumenta in informing and prioritising mainstreaming efforts. In France, a nationa study was undertaken to evauate the pubic subsidies that are harmfu to biodiversity (Sainteny et a., 2011). Such a study is unique among the 16 countries reviewed. 3 Given the voume of finance being aocated to potentiay environmentay harmfu activities wordwide (incuding in agricuture, forestry and fisheries), this represents an area for further work. The OECD database on Poicy Instruments for the Environment (PINE) aso provides information on countries with biodiversity-reevant taxes, charges and fees, tradabe permits, and other instruments, a of which are positive incentives for conservation and sustainabe use Simiar efforts are being undertaken in other countries incuding Germany, Itay and the Kyrgyz Repubic. 4. The OECD PINE database incudes information on when the instrument was introduced, what it appies to, the geographica coverage, the environmenta domains it aims to address (e.g. biodiversity, cimate), the industries concerned, revenues, costs or rates, earmarking, and exemptions. Lack of information on biodiversity-reated expenditures is a barrier to mobiising support for biodiversity in nationa budgets Effective mainstreaming cannot reaisticay be achieved without sufficient aocation towards addressing biodiversity in nationa budgets. Assessing the appropriate amount of the nationa budget to be aocated is based on comparing what is required to achieve the objectives specified in the NBSAP and what can reasonaby be mobiised from aternative sources (e.g. from the private sector, officia deveopment assistance). Very few countries have been abe to make such comparisons, however, due to a ack of robust, comprehensive and comparabe time series data on pubic biodiversity expenditure across nationa and subnationa budgets. Of the countries examined, ony a few such as India, Mexico and South Africa have information on pubic biodiversity expenditure. Initiatives such as the United Nations Deveopment Programme s Biodiversity Finance (UNDP BIOFIN) initiative are working with 31 predominanty deveoping countries to coect this information. In the Phiippines, BIOFIN and the Department of Budget and Management are working together to tag biodiversity-reated expenditures. Combined with NBSAP costing, this work has enabed an assessment of the funding gap, which is around 10 biion Phiippine pisos (PHP) a year. The recenty estabished Paris Coaborative on Green Budgeting, convened by the OECD in coab oration with France and Mexico, is a further step in this regard. 6. OECD POLICY HIGHLIGHTS Mainstreaming Biodiversity for Sustainabe Deveopment

9 3Mainstreaming biodiversity in the agricuture, forestry and fisheries sectors POLICY HIGHLIGHTS The agricuture, forestry and fisheries sectors are centra to economic growth and deveopment wordwide, and especiay so in deveoping countries. These sectors suppy essentia commodities such as food, fibre, fue and fodder which constitute basic needs of society as we as inputs for other economic sectors. Whie these sectors depend on heathy ecosystems for their productive capacity, the sectors aso exert significant pressure on biodiversity and are essentia to conservation and sustainabe use efforts. Carifying and tenure and reforming environmentay harmfu subsidies are prerequisites for effective mainstreaming in the agricuture sector Pressures on biodiversity reated to agricuture stem from and-use change, and unsustainabe input use and agricutura practices. The need for sustainabe agricutura to ensure the ong-term provision of ecosystem services that underie production are increasingy being recognised. Agricuture sector strategies, pans and poicies in countries such as Uganda, Ethiopia and India incude consideration of sustainabe use and management of natura resources. Key prerequisites for mainstreaming in the sector incude cear and secure tenure rights to encourage investment in sustainabe agricutura practices and integration of biodiversity criteria in and-use panning. Economic instruments for mainstreaming biodiversity in agricuture are generay underutiised, though mechanisms such as payments for ecosystem services are being increasingy impemented in many countries. Additionay, significanty enhanced efforts to identify and reform environmentay harmfu government support to agricuture woud contribute to mainstreaming efforts. An increasing number of countries are reporting to the OECD Producer Support Estimate database on agricutura support, which is a step in this direction. 5 Large-scae community engagement in natura resource management in the agricutura sector has been undertaken in certain countries such as Ethiopia and Austraia, which contributes to raising awareness and enabes adoption of improved technoogies and practices. In order to better track mainstreaming outcomes, it woud be 5. These incude Austraia, Brazi, China, Coombia, France, Mexico and South Africa. usefu to have agri-environmenta indicators that are common across countries incuding indicators that expicity account for biodiversity. Approaches to mainstream biodiversity in commercia forestry objectives are taking root, but further efforts to improve and-use panning and engage oca communities are needed Whie there is cear recognition of the importance of incusive and sustainabe forest management, in a co-ordinated manner with other economic and socia poicy priorities, as refected in many Nationa Deveopment Pans (NDPs), practica efforts and impementation in this regard vary greaty among countries. For exampe, the percentage of forest area under forest management pans varies consideraby across the countries examined, ranging from about 10% in Brazi, to 40% in France and Peru, to 100% in India and Myanmar (FAO, 2015). Poicy instruments that mainstream and internaise the externa costs of biodiversity oss in forestry, so as to reconcie the objectives of forest biodiversity, and the deveopment of forestry as a commercia productive sector are increasingy being adopted. These incude community-based forestry, payments for ecosystem services and sustainabe timber certification schemes. Avaiabe comparabe data on forest area under sustainabe certification schemes at the nationa eve aso show arge variations across these countries, with most beow 2%. Notabe exceptions are France (47%), South Africa (16%) and Austraia (9%). Common mainstreaming chaenges at the practica impementation eve incude the need for better coordinated and-use panning with a number of sectors incuding agricuture, and stronger engagement with stakehoders, incuding indigenous communities. OECD POLICY HIGHLIGHTS Mainstreaming Biodiversity for Sustainabe Deveopment. 7

10 Efforts to mainstream biodiversity in the fisheries sector need to be strengthened Many chaenges remain in the fisheries sector, as refected by the continuing increasing trends in the overexpoitation of marine fish stocks. The projected rise in aquacuture is aso expected to exert increasing pressure on biodiversity. Evauating compiance with the vountary Food and Agricuture Organization (FAO) Code of Conduct for Responsibe Fisheries is perhaps one of the most comprehensive internationa approaches for assessing progress towards mainstreaming biodiversity in the fisheries sector. A fundamenta prerequisite for effective fisheries management is reiabe comprehensive data on fish stocks, which are acking in many countries. Austraia is a notabe exception, and together with fisheries management pans, has achieved near 100% sustainabe stocks at nationa eve. A number of the countries reviewed are aso currenty reporting to the OECD Fisheries Support Estimate database (e.g. Austraia, Chinese Taipei, Coombia, France and Indonesia), enabing the tracking of government support to this sector over time. Marine spatia pans, which aim to take a systematic and comprehensive approach across sectors in the oceans space, are aso beginning to proiferate and have been impemented in Austraia, China, Coombia and Mexico; are under deveopment in South Africa; and are being discussed in Brazi, Chie, Madagascar, Thaiand and Viet Nam. Tabe 1. Exampes of poicy instruments to mainstream biodiversity in the agricuture, forestry and fisheries sectors Reguatory (command-and-contro) instruments Restrictions or prohibitions on access and/or use Terrestria and marine protected areas Bans on fishing of particuar species (e.g. CITES); Restrictions on gear types (e.g. fish net size, bottom trawing) Tempora restrictions Land-use and marine spatia panning (e.g. ecoogica corridors) Panning toos and requirements e.g. environmenta impact assessments (EIAs) and strategic environmenta assessments (SEAs) Contros and standards e.g., on excessive use of agrochemicas and fertiisers Economic instruments Pricebased instruments Taxes e.g. on groundwater extraction, pesticide and fertiiser use (for agricuture) Charges/fees e.g., entrance fees to nationa parks Subsidies to promote biodiversity e.g., target pubic investments in green technoogy, and subsidies for reforestation Reform of environmentay harmfu subsidies e.g., decoupe farm support from commodity production eves and prices (for agricuture) Payment for ecosystem services Biodiversity offsets/biobanking Information and vountary instruments Ecoabeing and certification e.g. organic agricuture abeing schemes; sustainabe forest/timber certification; sustainabe fisheries certification Green pubic procurement Vountary approaches e.g., negotiated agreements between businesses and government for nature protection or vountary biodiversity offset schemes Permits and quotas e.g., concessions for sustainabe forest management and timber ogging Tradabe permits e.g. water rights, carbon emissions, deveopment rights Forest management pans; fisheries management pans Liabiity instruments Noncompiance fines Source: Adapted from OECD (2013), Scaing Up Finance Mechanisms for Biodiversity and OECD (2011), Food and Agricuture, Green Growth Studies [need ink]. 8. OECD POLICY HIGHLIGHTS Mainstreaming Biodiversity for Sustainabe Deveopment

11 4Deveopment co-operation and biodiversity mainstreaming POLICY HIGHLIGHTS Deveopment partners are an important source of finance and technica capacity in support of biodiversity conservation and sustainabe use in deveoping countries. Many deveoping countries, such as Madagascar and Ethiopia, have identified the avaiabiity of externa funding as an important factor in successfu impementation of their NBSAPs. Concurrenty, a steady increase has been recorded in biatera biodiversity-reated officia deveopment assistance (ODA) from members of the OECD Deveopment Assistance Committee (DAC) over the past decade, reaching USD 7.9 biion per year in Despite this, biodiversity-reated ODA sti makes up ony a sma share of overa portfoios, around 6% in (Figure 3). Besides financing biodiversity efforts, deveopment co-operation supports biodiversity mainstreaming by strengthening frameworks for mainstreaming at the nationa eve as we as directy supporting the mainstreaming of biodiversity into specific sector poicies, pans and projects. Both these incude efforts to a) improve poicies and institutions, b) improve data and information systems, and c) to mobiise financing for biodiversity conservation and sustainabe use. In Peru, deveopment co-operation has been a key partner in creating the Ministry of Environment and deveoping a poicy framework to promote pubic investment in biodiversity. A number of initiatives that have become important enabers of mainstreaming, such as the Word Bank WAVES programme, the UNDP BIOFIN and financing from the Goba Environment Faciity (GEF), have been impemented through continued deveopment co-operation support. At the same time, there is an indication that biodiversity is becoming an increasingy important theme in deveopment co-operation programming, with some deveopment partners, such as Sweden, prioritising biodiversity and ecosystem services within their overa deveopment co-operation strategies. There are aso exampes of rigorous screening systems being impemented to reaise biodiversity co-benefits, or at a minimum to identify and mitigate potentia risks to biodiversity in deveopment projects and programmes. These incude the environmenta safeguards systems of a the major Mutiatera Deveopment Banks, which incude specific biodiversity reated considerations. Despite the progress achieved, considerabe potentia remains for further support to mainstreaming efforts of partner countries, and better biodiversity mainstreaming within deveopment co-operation operations and portfoios. Figure 3. Biatera biodiversity-reated ODA, USD biion 6% 5% 5% 4% 3% Significant Principa Biodiversity-reated ODA as share of overa ODA Note: Authors, based on the data retrieved from OECD DAC Creditor Reporting System, stats.oecd.org (accessed 12 February 2018). Source: The figures in this graph represent commitments. OECD POLICY HIGHLIGHTS Mainstreaming Biodiversity for Sustainabe Deveopment. 9

12 5Monitoring and evauating biodiversity mainstreaming The need to monitor and evauate mainstreaming efforts cannot be underestimated. It is not possibe to identify how to aocate human, financia and technica resources more effectivey, in order to achieve desired objectives, without assessing the impact of interventions over time. The use of indicators is a key component of this. Though indicators are emerging, monitoring and evauation of biodiversity mainstreaming is sti in its infancy. The Aichi Biodiversity Targets and the proposed goba indicators thereunder, as we as the indicator framework under the SDGs, offer a starting point from which further indicators coud be considered. Severa of the Nationa Biodiversity Strategies and Action Pans (NBSAPs) reviewed in OECD (2018) Mainstreaming Biodiversity for Sustainabe Deveopment aso incude indicators that are reevant to mainstreaming initiatives (Box 1), and some have aso been transposed into NDPs (and other nationa strategies). Internationa organisations that serve as patforms to coect comparabe nationa data (e.g. OECD, FAO, Word Bank) aso have an important roe to pay in this context. Buiding on the indicator frameworks of the Aichi Biodiversity Targets, the SDGs and other muti-country data sources, OECD (2018) presents a preiminary set of indicators that coud be considered for further use to hep monitor and evauate biodiversity mainstreaming efforts in a more consistent manner. This covers indicators across the range of poicy response indicators, namey inputs (e.g. finance), processes (e.g. estabishment of inter-ministeria committees), outputs (e.g. nationa assessments and other studies), outcomes (e.g. new or more ambitious poicies) and impacts (changes in the state of biodiversity and ecosystem services) (Tabe 2). 10. OECD POLICY HIGHLIGHTS Mainstreaming Biodiversity for Sustainabe Deveopment

13 POLICY HIGHLIGHTS Box 1. EXAMPLES OF INDICATORS PROPOSED IN NATIONAL BIODIVERSITY STRATEGIES AND ACTION PLANS TO MONITOR BIODIVERSITY MAINSTREAMING ETHIOPIA Strategic Goa A: Address the underying causes of biodiversity oss by mainstreaming biodiversity across government and society. Target 2. By 2020, the existing biodiversity-reated aws, reguations and strategies, incuding those associated with incentives, are reviewed and gaps are addressed. Indicator: Number of identified incentives that reward positive contributions and addressed perverse incentives. Target 3: By 2020, biodiversity vaues and ecosystem services are communicated and integrated into nationa and oca deveopment and poverty reduction strategies and pans. Indicator: Strategies integrating vaues of biodiversity a nd ecosystem services. Target 4: By 2020, habitat conversion due to expansion of agricutura and is haved from the existing rate of about 10% per year. Indicator: Rate of annua conversion of habitats into agricutura and. INDIA Target 2: By 2020, vaues of biodiversity are integrated into nationa and state panning processes, deveopment programmes and poverty aeviation strategies. Indicators: Trends in number of studies on biodiversity-incusive environmenta impact assessments (EIAs), cumuative EIAs and strategic environmenta assessments (to be conducted by the Ministry of Economic Affairs and Panning Commission); and trends in identification, assessment, estabishment and strengthening of incentives that reward positive contribution to biodiversity and ecosystems. MADAGASCAR Strategic Objective 2: In 2025, at the atest, biodiversity vaues, opportunities and benefits of conservation and sustainabe use wi be recognised and integrated into the country s socioeconomic deveopment activities. Action: 2.1. Consider the vaues of biodiversity into sectora strategies and programmes. Indicator: Number of sectora pans and strategies incorporating and impementing the vaues of biodiversity impementation strategies. SOUTH AFRICA Objective 3: Biodiversity considerations are mainstreamed into poicies, strategies and practices of a range of sectors. Target 3.1: Effective science-based biodiversity toos inform panning and decision making. Indicator: Number of toos deveoped to support main streaming of biodiversity assets and ecoogica infrastructure in production sectors and resource management. By 2020, 10 new toos produced and 15 knowedge resources demonstrating the vaue of biodiversity deveoped and disseminated. VIET NAM Strategic Goa 3: Strengthened sustainabe use and equitabe sharing of ecosystems, species and genetic resources. Indicator: Percentage of important degraded ecosystems effectivey recovered. Strategic Goa 4: Reduce direct pressures on biodiversity. Indicator: Rate of oss of natura forests and water surface area due to and-use conversion. OECD POLICY HIGHLIGHTS Mainstreaming Biodiversity for Sustainabe Deveopment. 11

14 Monitoring and evauating biodiversity mainstreaming Tabe 2. Exampes of possibe indicators to monitor progress towards biodiversity mainstreaming POSSIBLE INDICATORS INDICATOR TYPE Input Process Output Outcome Impact DATA SOURCES AND AVAILABILITY Finance mobiised for biodiversity Trends in incorporation of physica measures of stock and fow of natura capita in natura accounting Impementation of natura resource accounts within the SEEA Integration of deveopment into Nationa Biodiversity Strategies and Action Pan (NBSAP) Integration of biodiversity into Nationa Deveopment Pan and other reevant nationa strategies* Nationa ecosystem assessment (or other simiar nationa assessments) NATIONAL Work underway. Biodiversity-reevant environmenta protection expenditures (OECD, European Environment Agency), CBD nationa financia reporting, UNDP Biodiversity Finance (BIOFIN) initiative Word Bank Weath Accounting and Vauation of Ecosystem Services (WAVES) Not systematicay coected. Roe (2010); OECD (2018) Not systematicay coected. Prip (2012); OECD (2018) Not systematicay coected. See Nationa assessment of harmfu subsidies (e.g. in agricuture, fisheries, forests, mining, tourism) Inter-ministeria committee for biodiversity (mainstreaming) SECTORAL Generic / Cross-cutting Not avaiabe Not avaiabe Biodiversity integrated into key sectors poicies and pans (e.g. agricuture, forestry, fisheries, mining, tourism) Trends in incorporation of natura resource, biodiversity and ecosystem service vaues into sectora pans (e.g. agricuture, forestry, fishing, mining, tourism) Number of biodiversity-reevant taxes, charges and fees, tradabe permit schemes Number of other poicy instruments (e.g. PES, biodiversity offsets) Trends in percentage of agricutura support that is potentiay environmentay harmfu, neutra and beneficia Changes in and use and cover Percentage of agricutura area under sustainabe certification Number of pant and anima genetic resources for food and agricuture secured in medium- or ongterm conservation faciities Amount of pesticide use per hectare Agricuture Not systematicay examined OECD Poicy Instruments for the Environment (PINE) database, about 80 countries Not systematicay examined. Ecosystem Marketpace. Work panned for OECD PINE database OECD Producer Support Estimate (PSE) database, about 45 countries OECD Environmenta Statistics; FAO; nationa sources, e.g. CORINE and cover database FAO FAO and OECD Agri-Environment Indicators (AEI) 12. OECD POLICY HIGHLIGHTS Mainstreaming Biodiversity for Sustainabe Deveopment

15 Monitoring and evauating biodiversity mainstreaming INDICATOR TYPE POSSIBLE INDICATORS Input Process Output Outcome Impact DATA SOURCES AND AVAILABILITY Amount of fertiiser use per hectare FAO and OECD AEI POLICY HIGHLIGHTS Agricuture ammonia emissions OECD AEI Agricutura freshwater withdrawa OECD AEI Status of water quaity OECD AEI Nitrogen baance OECD AEI Phosphorous baance OECD AEI Index of farmand birds OECD AEI Land degradation (topsoi oss of agricutura and) FAO GLASOD 1991 about 145 countries Areas/popuation exposed to water scarcity Water resources exposed to harmfu poution eves Word Resources Institute Aquaduct Goba Number of fisheries with management pans Number of fisheries with Tota Aowabe Catch or other quota/icensing Number of countries with Individuay Transferabe Quotas for fisheries Bottom-trawing reguation in environmentay sensitive areas Percentage of fish from sustainabe sources (ecocertification) Percentage of fish species overexpoited or coapsed Changes in and use and cover Land with different forest types and change over time Vaue of forest resource depetion Percentage of forests with sustainabe forest management (SFM) pans Percentage of harvested timber under sustainabe certification Nationa strategy to mainstream biodiversity in deveopment co-operation Percentage of biodiversity-reated biatera ODA in tota ODA Trends in fows and activities marked by deveopment providers as "principa" and "significant" for biodiversity Fisheries Forestry DEVELOPMENT CO-OPERATION Not avaiabe OECD PINE database FAO - Goba (cannot be disaggregated at nationa eve) OECD Environmenta Statistics, FAO, nationa sources e.g. CORINE FAO Forest Resource Assessment (FRA), most countries Word Bank Word Deveopment Indicators (WDI), about 130 countries Not avaiabe OECD Creditor Reporting System (CRS) OECD CRS * Other reevant nationa strategies incude, but are not imited to, nationa sustainabe deveopment strategies, green growth strategies and poverty reduction strategies. Sources: Based on CBD (2015), Goba indicators and sub-goba approaches to monitor progress in the impementation of the Strategic Pan for Biodiversity , OECD (2018), Mainstreaming Biodiversity for Sustainabe Deveopment; OECD (2013), Poicy Instruments to Support Green Growth in Agricuture, Narof, Kozuk and Loyd (2016), Measuring Incusive Green Growth at Country Leve. OECD POLICY HIGHLIGHTS Mainstreaming Biodiversity for Sustainabe Deveopment. 13

16 6The way forward to improve biodiversity mainstreaming At the nationa eve, most Nationa Biodiversity Strategies and Action Pans (NBSAPs) recognise the inkages between biodiversity and deveopment and incude targets for mainstreaming. Simiary, Nationa Deveopment Pans (NDPs), Nationa Sustainabe Deveopment Pans, and green growth strategies of some countries incude consideration for biodiversity, though the extent varies greaty. Continuing chaenges in the design and impementation of biodiversity mainstreaming measures incude effective horizonta and vertica institutiona co-ordination; adequate human resources and capacity, particuary within sector ine ministries; coection and dissemination of poicy-reevant data for mainstreaming; and tracking and mobiising financia resources for biodiversity in the context of nationa budgets and beyond. Looking across the agricuture, forestry and fisheries sectors, there is increasing reaisation of the pressures they exert on biodiversity and the important contributions of ecosystem services in the continued deveopment of these sectors. This is due in part to Nationa Ecosystem Assessments (NEAs) or simiar studies being undertaken in some countries, incuding economic vauation studies. In many countries, however, the fu suite of poicy instruments avaiabe to conserve and sustainaby use biodiversity are not being impemented at the scae that is needed. There is a need, for exampe, for better co-ordinated and enforced instruments for and-use and marine spatia panning; and for further consideration of the use of economic instruments that are aso abe to provide continuous incentives for more sustainabe production and consumption patterns, and to mobiise revenue, so as to enhance mainstreaming outcomes. In severa countries, a high degree of informaity and iega activities in these sectors continues to drive biodiversity oss. Deveopment co-operation, which pays an important roe in supporting biodiversity mainstreaming in partner deveoping countries, acts as a source of finance and technica assistance, and biodiversity is considered among the ongoing priorities in the environmenta programming of deveopment partners. Chaenges that remain incude the need for further and more expicit prioritisation of biodiversity within deveopment finance portfoios and programming, by better capturing the synergies with cimate and other environmenta and deveopment objectives. The persistent imitations in individua expertise, human resources and organisationa capacity and a ack of funding for biodiversity in partner countries aso hinder the continuity of positive change initiated by deveopment co-operation activities beyond project ifetimes. Whie progress towards mainstreaming biodiversity is being made, a formidabe chaenge that remains is to better monitor and evauate the outcomes and impacts of these efforts at the nationa eve. Doing so in a more consistent manner woud aso faciitate comparison of experiences across countries and their effectiveness, and an exchange of essons earned. This chaenge is due in part to the ack of consistent data and indicators to deveop baseines and to monitor and report on progress towards achieving mainstreaming goas and targets. In terms of responses, further consideration on how to monitor and evauate mainstreaming efforts across the fu range of responses, namey inputs, process, outputs, outcomes and impacts, woud be usefu. 14. OECD POLICY HIGHLIGHTS Mainstreaming Biodiversity for Sustainabe Deveopment

17 7Biodiversity mainstreaming a bueprint for action POLICY HIGHLIGHTS Given the breadth of biodiversity mainstreaming, the overarching key messages from OECD (2018) Mainstreaming Biodiversity for Sustainabe Deveopment are the need to: be comprehensive and systematic in assessing mainstreaming needs, prioritise actions and interventions in the face of resource constraints, scae up and make more ambitious the fu suite of biodiversity poicy instruments that are abe to impact on production and consumption patterns, and further deveop and use indicators so as to be abe to monitor and evauate progress towards biodiversity mainstreaming over time. Based on this work, as we as previous OECD efforts to assess mainstreaming in the context of green growth, cimate change and deveopment co-operation, there are five main areas of action needed by poicy makers and decision makers to promote effective mainstreaming of biodiversity and deveopment: ESTABLISH A STRONG SOCIAL AND BUSINESS CASE FOR BIODIVERSITY Given the mutipe drivers of biodiversity oss and degradation, mainstreaming efforts depend on a cear and we-documented understanding of the vaue of biodiversity and ecosystem services for the economy and society at arge, as we as the key pressures, communicated and accepted across sectors and different stakehoder groups. Governments can prioritise the foowing action to support the deveopment of a strong business case for biodiversity: Conduct a nationa assessment of biodiversity and ecosystem services outining the key pressures on biodiversity and incorporating, where possibe, the fu socia benefits that ecosystems and ecosystem services provide, incuding monetary vaues where feasibe. Integrate biodiversity-reated considerations into sector-eve resource assessments e.g. agricuture, forestry, fisheries and identify key pressures in each case. Invest in statistica/data systems to estabish an evidence base on the drivers, pressures and state of biodiversity, incuding in improvements to the quaity of existing data and efforts to enhance consoidation of and access to different data sources, and to enabe evidence-based decision making. Deveop targeted messages to the reevant stakehoders and work together to identify soutions. OECD POLICY HIGHLIGHTS Mainstreaming Biodiversity for Sustainabe Deveopment. 15

18 Mainstreaming Biodiversity a bueprint for action ALIGN POLICIES ON BIODIVERSITY FOR SUSTAINABLE DEVELOPMENT A strong commitment to biodiversity mainstreaming at nationa and sector eves is a prerequisite for successfu mainstreaming. This commitment shoud aso be refected in Nationa Biodiversity Strategies and Action Pans (NBSAPs) and nationa/sector deveopment poicies, supported by poicy coherence across egisative and poicy frameworks. Integrating biodiversity and deveopment poicy and panning requires the foowing priority action: Deveop a cear ong-term vision for biodiversity and deveopment through nationa biodiversity strategies, ensuring engagement of different stakehoders from economic sectors and deveopment panning. Promote strategic eadership for biodiversity within the government, e.g. by embedding responsibiity for mainstreaming under a cross-cutting, high-eve inter-ministeria committee, working group or pane. Activey integrate and embed biodiversity into nationa deveopment panning and poicy making, through overarching entry points for environmenta issues more broady. Review and evauate ega and poicy frameworks to identify chaenges and weaknesses, and strengthen these as appropriate so as to promote poicy coherence between biodiversity and deveopment objectives. Define indicators for environmenta and socioeconomic poicy variabes, estabish baseines, and make the information pubicy avaiabe. Review and evauate existing poicy instruments (incuding positive and harmfu incentives that may be in pace), and identify what adjustments are needed, incuding the need for additiona poicy instruments and those that are abe to generate revenue. DEVELOP MONITORING AND EVALUATION SYSTEMS FOR MAINSTREAMING Buid on reevant indicators under the Aichi Biodiversity Targets and the SDGs, and further examine what other indicators woud be usefu and feasibe to monitor and evauate mainstreaming at the nationa eve and across sectors. Such indicators coud better cover the fu range of responses, incuding inputs (e.g. finance and staff), processes (e.g. existence of inter-ministeria commissions), outputs (e.g. new data and assessments), outcomes (e.g. new poicies such as the introduction of pesticide taxes), and impacts (e.g. improved state of biodiversity). 16. OECD POLICY HIGHLIGHTS Mainstreaming Biodiversity for Sustainabe Deveopment

19 STRENGTHEN INSTITUTIONS AND CAPACITY Adequate institutiona capacity, incuding dedicated human resources at nationa and subnationa eves to impement and monitor mainstreaming action, supports iterative decision-making and interministeria co-ordination mechanisms. Estabish vertica and/or horizonta co-ordination mechanisms. Ceary define mandates, roes and responsibiities of reevant institutions. Provide training, and enhance capacity to ensure impementation. Mainstreaming Biodiversity a bueprint for action approaches) that appy to the private sector, and through civi society via phianthropy for exampe. In deveoping countries, support for mainstreaming from deveopment co-operation can pay an important compementary roe to the government and other stakehoders. It is important to aso note that the biodiversity financing chaenge is not ony about mobiising additiona resources, but aso about a) avoiding future costs; b) spending existing resources more effectivey and efficienty; and c) reaocating existing resources as appropriate. Deveop and embed approaches to track biodiversity-reated expenditure within the government system, and identify resource needs to effectivey impement mainstreaming activities. POLICY HIGHLIGHTS Promote research on biodiversity mainstreaming and research coaborations in deveoped and deveoping countries (incuding South-South coaborations), and provide grants as we as support for mainstreaming environmenta and biodiversity programmes in education at a eves (schoos and at university). MOBILISE ADEQUATE FINANCING FOR BIODIVERSITY Examine the potentia use of economic instruments (such as taxes, charges and fees, and payments for ecosystem services, among others) that are abe to generate revenue, whie aso providing continuous incentives for biodiversity mainstreaming. Promote efforts to further engage the private sector in biodiversity mainstreaming efforts. Identifying biodiversity financing needs to ensure the conservation and sustainabe use at the nationa eve and by sector enabes the poicy actions identified above to be impemented. Finance for biodiversity can be mobiised through government budgets, through economic instruments (and in some cases vountary

20 The need to mainstream biodiversity into economic growth and deveopment is being increasingy recognised and is now aso firmy embedded in the Sustainabe Deveopment Goas. Drawing on experiences and insights from 16 predominanty megadiverse countries, the OECD (2018) pubication Mainstreaming Biodiversity for Sustainabe Deveopment examines how biodiversity is being mainstreamed in four key areas: 1) at the nationa eve, incuding nationa deveopment pans and other strategies, institutiona co-ordination and nationa budgets; 2) the agricuture, forestry and fisheries sectors; 3) in deveopment co-operation; and 4) the monitoring and evauation of biodiversity mainstreaming and how this coud be improved. For further reading on mainstreaming biodiversity, see the foowing report on which this Poicy Highights is based: OECD (2018), Mainstreaming Biodiversity for Sustainabe Deveopment, OECD Pubishing, Paris. Visit our websites en.htm Join the discussion and #MainstreamBiodiversity OECD 2018 OECD Environment and OECD Deveopment Co-operation Directorates, Juy 2018 Brochure design by baseinearts.co.uk