The United Nations Development Programme (UNDP) has called on countries to identify and phase out subsidies harmful to biodiversity, in a new report aimed at boosting environmental protection and reshaping public expenditure towards sustainable practices.
The report, titled the BIOFIN Workbook 2024, was launched on the sidelines of the ongoing 16th Conference of the Parties to the Convention on Biological Diversity (CBD COP16) in Colombia.
It offers a practical roadmap for countries to secure the additional financing required for protecting biodiversity.
The guidance is expected to benefit over 130 countries, where UNDP is currently supporting governments in developing biodiversity finance plans.
According to the UNDP, the world is facing an annual financing gap of $700 billion to adequately protect biodiversity, a situation that poses a threat to climate stability, food security, and overall societal well-being.
To address this shortfall, countries must re-examine public subsidies that are damaging to nature.
Data cited in UNDP’s The Nature of Subsidies report reveals that global subsidies harmful to biodiversity exceed $1 trillion annually.
The new UNDP methodology emphasizes identifying such harmful subsidies, redesigning them to reduce their environmental impact, and creating National Action Plans that ensure public spending promotes biodiversity and aligns with the Sustainable Development Goals (SDGs).
This process could lead to significant fiscal savings for countries, helping to offset the costs of biodiversity protection measures.
According to Marcos Neto, Assistant Secretary-General and Director of the Bureau for Policy and Programme Support at UNDP, biodiversity loss, climate instability, and land degradation are interconnected crises.
“Solutions require redirecting financial flows both public and private away from activities that harm nature and toward economic policies that are beneficial for the environment,” he said
Neto further noted that transitioning to a nature-positive economy is crucial for securing a sustainable future where economic growth and environmental conservation can coexist.
“By investing in nature and transforming our economic systems, we can create jobs, enhance livelihoods, and build resilience while safeguarding the biodiversity that supports all life,” he added.
A key aspect of the updated BIOFIN Workbook is the expanded role it envisions for the private sector.
Businesses are encouraged to disclose their environmental impacts and dependencies and to support investments that benefit nature.
This shift is expected to unlock new funding sources for biodiversity and create economic opportunities for companies that prioritize sustainable investments.
Since its inception, UNDP’s Biodiversity Finance Initiative (BIOFIN) has helped mobilize over $1 billion for nature across 41 countries, with ongoing efforts in 23 nations to review and reform harmful subsidies.
Colombia, Thailand, and the Philippines are noted as leading examples of countries making significant strides in greening their fiscal policies.
The release of these guidelines comes at a critical time, as new data from the World Wildlife Fund (WWF) and the Zoological Society of London highlights alarming declines in global wildlife populations.
The Living Planet Index shows that wildlife populations have dropped by an average of 73% over the past 50 years.
Freshwater species have suffered the most, with populations decreasing by 85% between 1970 and 2020, while terrestrial and marine populations have fallen by 69% and 56%, respectively.
With the launch of the BIOFIN Workbook 2024, UNDP aims to guide nations in reversing these troubling trends by redirecting financial flows toward nature-positive policies and investments.
By Dare Akogun
