Global | COP16: Funding Challenges Stall Biodiversity Initiatives

Summary

Biodiversity loss is more complex than reducing greenhouse gas emissions regarding definition, measurement, and impact estimation. Thus, reaching agreements on protecting natural capital is even harder than for climate change, as seen at COP16, particularly on funding.

Key points

• Key points:
• The Global Biodiversity Framework (GBF) outlines a structured timeline to reverse biodiversity loss by 2030 and achieve harmony with nature by 2050, with countries aligning national plans by COP16 in 2024, followed by regular assessments through 2030. Progress has been partial.
• Biodiversity policies are slowing, with biodiversity-positive incentives growing more slowly each year, primarily through taxes and fees in 70 countries but yielding limited revenue (1.3% of environmentally-related tax revenue in OECD countries).
• Biodiversity finance goals set at COP15 are falling short, with current commitments at only 41% of the 2025 target. Public financing is growing, but private contributions remain low, while inaction risks economic impacts, given that 55% of global GDP depends on nature.
• To boost biodiversity finance, policies should attract investors through tools like biodiversity offsets, carbon markets, green financial products, and aligned subsidies. Success requires political commitment, integrated policies, strengthened institutions, regulatory frameworks, inclusive engagement, and highlighting biodiversity’s economic value to investors.

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