non-paper

June 2020

WWF Proposal
THE RESOURCE MOBILIZATION COMPONENT of the
POST-2020 GLOBAL BIODIVERSITY FRAMEWORK
- Goals, Action Targets and Implementation Support Mechanisms for
resource mobilization and financing -

Context
At COP-15 Parties will adopt the post-2020 global biodiversity framework (GBF) including
various elements related to resource mobilization and financing. The ‘resource mobilization
component’ of the GBF is of utmost relevance and importance for the successful and timely
implementation of the framework. Therefore, COP15 must decide on the ‘resource mobilization
component’, which must be an integral part of the GBF.

The elements of the ‘resource mobilization component’ for the GBF should contain inter alia a
strategic goal, three action targets, and effective implementation support mechanisms. This
paper outlines these main elements and provides a rationale for each.

1. General approach for a comprehensive ‘resource mobilization

component’ of the post-2020 global biodiversity framework
Achieving the goals and targets of a post-2020 global biodiversity framework (GBF) will require
mobilizing ADDITIONAL PUBLIC FUNDING from existing and new sources. Moreover, the
alignment of ALL PUBLIC AND PRIVATE FINANCE FLOWS is needed to make them
consistent with the three objectives of the Convention.

As a result, until 2030, adapting finance policies and regulatory economic and fiscal
frameworks at national, regional and global levels should be an imperative in order to achieve
transformational change towards a sustainable economy, integrating biodiversity in all decision -
making processes at all levels. This will also lead to a better policy coherence.

Therefore, the ‘resource mobilization component’ must address at least the following
three key types of action:

1. Accelerate the transition of the finance sector towards sustainable finance through
regulatory measures and integrating biodiversity into financial decision making.
2. Repurpose biodiversity-harmful incentives through appropriate policy measures to avoid
further damage to biodiversity and ecosystem deterioration.

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 3. Substantially increase domestic and international mobilization of resources as part of
development strategies to deliver implementation of the GBF while enhancing the
efficient use of the resources to foster synergies between biodiversity, climate and
sustainable development by 2030.

This approach is backed by the Summary for Policy Maker of the IPBES Global Assessment
Report, which concludes “…goals for 2030 and beyond may only be achieved through
transformative changes across economic, social, political and technological factors .”
(https://ipbes.net/global-assessment ).

2. Goal on Finance

By 2030, biodiversity financing from all sources for effectively implementing the GBF has
increased substantially from the current levels and public and private financial flows are aligned
with the three objectives of the Convention, incentivized and supported by appropriate
development strategies1, fiscal policies, and the efficient and synergetic utilization of financial
resources.

Rationale: A 2030 goal on finance should be included as a stand-alone topic, addressing

‘finance’ as a key lever for the implementation of the GBF and the transformational change on
the pathway to the 2050 vision. Elements of utmost strategic importance are a short -term
‘substantial resource increase’ AND the ‘alignment of all public and private finance’ with the
goals of the Convention. Relevant support mechanisms should also be mentioned in the goal.

3. 2030 Action Targets

Finance Sector similar (or in addition) to Action-Target 14(bis) in the zero-draft

(WG2020/2/3) and Target 14 in the draft monitoring framework for review

By 2030, develop and implement regulatory measures on national, regional and global level to
align public and private financial flows with the three objectives of the Convention.

Rationale: The financial sector is a key lever to shift resource allocation from unsustainable to
sustainable economic activities, reducing respective harmful effects on biodiversity and instead
advancing positives ones. A dedicated target addressing public and private financial flows is
thus necessary to achieve transformative change. The regulatory measures stated in the target
above are essential to guide financial institutions to integrate biodiversity into their decision-
making.

The Paris Agreement on climate change has acknowledged the critical role of the financial
sector and addresses finance flows in article 2.1.c). This article is the central reference point for

1In line with the Sustainable Development Goals of and the 2030 Agenda for Sustainable Development:
https://sustainabledevelopment.un.org/content/documents/21252030%20Agenda%20for%20Sustainable
%20Development%20web.pdf

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the financial sector related to climate change. The GBF should address financial flows equally
through a dedicated target. Overall, the integration of Environmental, Social and Governance
factors (ESG) in investment strategies and decisions has increased drastically over the last 50
years and so have regulatory requirements, disclosure and multiple labels and standards in the
financial sector. However, so far there is a lack of regulatory measures addressing h ow financial
flows should avoid doing harm to biodiversity and ecosystems and/or how finance flows can
contribute to a biodiversity-positive outcome.

Incentives similar to Action-Target 12 in the zero-draft (WG2020/2/3) and Target 17

in the draf t monitoring framework for review

By 2030, eliminate incentives, including subsidies, harmful to biodiversity or repurpose them to

biodiversity-positive incentives.

Rationale: The substance of this target was already addressed well by Aichi Biodiversity Target
3 (ABT 3). However, although the issue is essential for accelerating transformative change of
the economic system, only very little progress has been made. Therefore, it remains of the
utmost importance to eliminate or repurpose public and private incentives, in cluding subsidies,
that are harmful to biodiversity. Currently, such finance flows exceed the expenditure for
conservation, sustainable use and restoration of biodiversity approximately by a factor of 10 to
12. If harmful incentives are left unchecked, these flows will have detrimental effects for nature
and will jeopardize the GBF and make the implementation of the GBF increasingly expensive.

Resource Mobilization similar to Action-Target 15 in the zero-draft (WG2020/2/3) and Target 18

in the draf t monitoring framework for review

By 2030, resources from all sources have increased substantially and consistently in all Parties,
including an increase of international financial flows towards developing country Parties [by
100%], as well as of capacity building and technical and scientific cooperation.

Rationale: As long as the existing imbalance in biodiversity-relevant finance flows continues,

e.g. the insufficient amount of resources for biodiversity and the continuing effect of biodiversity-
harmful subsidies, a SUBSTANTIAL increase of resources from ALL sources is necessary until
2030. There is an array of approaches, tools and instruments available to mobilize additional
resources from various sources, such as Trust Funds, Payments for Ecosystem Services,
private foundations, project-related funding, replenishment of multilateral instruments - in
particular the GEF - or bilateral ODA-funded initiatives.

Domestic and international financial flows are the most relevant sources in that regard to
accompany the adequate and effective implementation of the ambition level of the GBF.

Additional financial, technical and human resources are needed for capacity building and
technical and scientific cooperation, in particular for developing countries.

2http://www.oecd.org/environment/resources/biodiversity/G7-report-Biodiversity-Finance-and-the-
Economic-and-Business-Case-for-Action.pdf

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Furthermore, resource spending from ALL sources must be CONSISTENT with goals and
targets of all biodiversity-related conventions, the Paris Agreement of the UNFCCC, goals of the
UNCCD, as well as with the Agenda 2030 and the SDGs to achieve the much-needed synergies
and multi-benefits across all global approaches. Effectiveness and efficiency in utilizing the
available funding sources must increase in all countries.

The commitments of developed countries to support developing countries in implementing the

GBF plays a crucial role to ensure the achievement of the global goals and targets of the GBF
(according to Art 20 of the Convention), either through bilateral or multilateral funding channels
such as the GEF as the financial mechanism of the Convention.

4. Implementation support mechanisms similar to section E in the zero-draft

(WG2020/2/3)

Effective implementation of the GBF requires efficient implementation support mechanisms in

this area. The following proposals are essential, but not inclusive:

Biodiversity Finance

i. [In support of implementing the target on the finance sector]

respective regulatory measures and metrics for public and private financial institutions
and businesses are developed by 2025 and implemented by 2030. These include
integrating biodiversity into financial decision-making and strategies; adopting disclosure
requirements on biodiversity risks, impacts and opportunities and developing appropriate
taxonomies.

Rationale: Regulatory measures for public and private financial institutions and
businesses are inevitable if transformative change is to be achieved. While there are
several methodologies to integrate climate into financial decision-making and align
business strategies with the 1.5-degree-goal, metrics and methodologies that apply to
biodiversity do exist, but are not yet widely adopted across businesses and financial
institutions. Disclosure requirements would be a first step for bringing more transparency
on impacts, risks and opportunities that financial institutions or businesses have on
biodiversity and ecosystems. Some jurisdictions have already adopted disclosure
requirements while others are developing taxonomies, including on biodiversity. 3 Yet,
there is still no global goal/target on how biodiversity should be integrated in financial
decisions and strategies. Hence, a dedicated action-target on the financial sector could
give guidance on the regulatory changes countries should implement to appropriately
align financial flows with the objectives of the Convention.

https://www.globalreporting.org/resourcelibrary/Enabling%20Smart%20Policy_The%20role%20of%20GRI
%20Standards_Web.pdf, p.4

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 ii. [in support of implementing the target on incentives]
National action plans are developed and implemented to eliminate or repurpose
incentives, including subsidies, that are harmful to biodiversity to be biodiversity -positive
by [50%] by 2025, and by [100%] by 2030.

Rationale: The lack of progress in this target is a result of various factors, including
vested interests and lack of political will. As phasing out or elimination of harmful
subsidies is politically difficult, repurposing those subsidies to align them with
sustainable practices is a solution that enables transformational change. To achieve this,
national action plans should be developed and implemented accordingly, taking into
account the already agreed guidance decided at COP11 4. Respective action plans
should be a key element of the national finance plans (see iii below). Con crete
milestones are needed to monitor progress on implementation.

iii. [In accordance with the target on resource mobilization: domestic funding]
national finance plans are developed by 2025 and implemented by 2030, to assess
country-specific biodiversity financial expenditure, needs, gaps and solutions

Rationale: In order to guide funding decisions and leverage sufficient domestic funding
for the implementation of updated NBSAPs in each individual national context, all Parties
should develop and implement national finance plans. These are the most effective
mechanisms to assess current expenditure, funding needs according to the NBSAPs
and identify potential funding gaps as well as, accordingly, strategic finance solutions to
address the shortfalls and challenges of biodiversity-related financing. The BIOFIN
methodology has proven to be a highly effective tool and should therefore be applied as
a best practice for this purpose by all Parties. 5 Funding through the GEF should be
provided to GEF-recipient countries.

[In support of implementing the target on resource mobilization: international

funding]
total biodiversity-related international financial resource flows to developing countries
have at least doubled by 2025, and at least maintaining this level until 2030, using the
average annual biodiversity spending of the year 2015 as a baseline. 6

Rationale: As the challenges of implementing an ambitious GBF will increase, Official

Development Aid (ODA) funding will remain a cornerstone of PUBLIC financing over the
next decade.7 In light of Art. 20 of the Convention, donor countries should commit to
enhance their funding engagement and double their commitments once again by 2025
and at least maintain until 2030, using the 2015-level as the baseline. This commitment

4NEP/CBD/COP/DEC/XI/3, Annex, Target 3, https://www.cbd.int/doc/decisions/cop-11/cop-11-

dec-03-en.pdf.
5 UNDP (2018). The BIOFIN Workbook 2018. Finance for Nature. The Biodiversity Finance Initiative.
UNDP: New York; http://biodiversityfinance.net/about-biofin/biofin-approach
6 UNEP/CBD/COP/DEC/XI/4, para. 7. a), https://www.cbd.int/doc/decisions/cop-11/cop-11-dec-04-en.pdf.
7 Data based on WWF analysis, to be published.

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 is most essential as long as the target on eliminating or repurposing biodiversity -harmful
incentives is not fully implemented and the transformation of the finance sector is not yet
achieved.

The ODA flows must be part of development strategies to foster synergies of

biodiversity, climate and development goals while enhancing the effective and efficient
use of the resources.

Capacity Building and technical and scientific cooperation

[In accordance with the target on resource mobilization]

nationally determined and country-driven capacity-building is enhanced based on the
information and recommendations of the study for the preparation of the long -term
strategic framework for capacity-building beyond 2020 (decision 14/24, section A) 8

Technical and scientific cooperation

[in accordance with the target on resource mobilization]

technical and scientific cooperation is expanded and improved based on the steps
agreed in decision 14/24, section B. 9

8 https://www.cbd.int/doc/decisions/cop-14/cop-14-dec-24-en.pdf
9 https://www.cbd.int/doc/decisions/cop-14/cop-14-dec-24-en.pdf