05/12/2022 - Over 2011-20, the 29 OECD Development Assistance Committee (DAC) members that are Parties to the UN Convention on Biological Diversity more than doubled their international financial flows to support biodiversity in developing countries, and collectively achieved their commitments on biodiversity-related development finance (Aichi Target 20), according to new OECD analysis.
This holds true for both analytical approaches used; the first covering 100% of flows tagged as principal and significant, and the second covering 100% of principal flows and 40% of significant (which is how most DAC members report to the CBD Secretariat). Under the second approach, biodiversity-related development finance increased from USD 2.46 billion per year over 2006-10 on average to 5.68 billion in 2015. DAC members maintained their funding over 2016-20 at an average USD 4.92 billion per year, i.e. twice the 2006-10 average.
Biodiversity loss ranks among the top perceived threats to humanity and is an urgent development issue. Biodiversity loss and climate change are inextricably linked, with both considered systemic risks and ‘twin crises’. Development finance plays an important role in supporting developing countries’ biodiversity conservation efforts, as well as in promoting the sustainable use of natural resources.
“OECD donors have met their biodiversity-related development finance targets over 2011-20. This is a clear indication of the importance they place on biodiversity – and is an essential component of the efforts to reverse biodiversity loss, which is amplified by climate change,” OECD Deputy Secretary-General Kerri-Ann Jones said.
The analysis also finds that official development finance (ODF) for biodiversity-related objectives, which includes both official development assistance (ODA) and non-concessional flows, increased from all sources by 94% over 2011-20, from USD 5.4 billion in 2011 to USD 10.4 billion in 2020.
‘Developed countries will need to maintain and align their development finance with biodiversity objectives as the post-2020 Global Biodiversity Framework is concluded,’ Ms Jones added. ‘Part of the solution is also to mobilise additional and new resources, leveraging official development finance and exploring new partnerships with private philanthropy or non-DAC donors’.
The increase in biodiversity-related development finance was primarily driven by bilateral DAC donors, who accounted for 77% of total public ODF flows on average during the period. It reflected their efforts to mainstream biodiversity into other activities or seek biodiversity co-benefits. Mainstreaming has in consequence seen a decrease in the share of core biodiversity activities, from 72% to 38% (or from USD 3.1 to 2.4 billion over the period).
Multilateral outflows for biodiversity-related activities tripled over 2011-20, from USD 1 billion to USD 3.1 billion. Multilateral providers represented 23% of total public development finance flows for biodiversity. In turn, non-DAC, South-South and triangular co-operation providers represented 0.2% of total public ODF on average over 2011-20.
In addition, private finance mobilised by public ODF made a relatively small contribution to the total, at USD 165 million in 2020, while biodiversity contributions by private philanthropies grew to USD 686 million in 2020.
Download the Report: Biodiversity and development finance: Main trends, 2011-20
Note to Editors:
Article 20 of the CBD committed, inter alia, developed countries to “provide new and additional financial resources to enable developing country Parties to meet the agreed full incremental costs of implementing measures which fulfil the obligations of this Convention”. This role has been progressively specified: in 2010, Parties to the CBD COP10 in Japan committed to scaling-up their financing to support the Strategic Plan 2011–2020 and its Aichi Biodiversity Targets by 2020. In particular, Aichi Target 20 calls for an increase in development finance resources. In 2012, at COP11 in India, Parties agreed to set a “target on international financial flows” and identified actions to increase mobilisation of financial resources from all sources. The subsequent COP12 in Korea in 2014, building upon Hyderabad target 1.a under COP12 Decision XII/3, adopted a commitment to double total biodiversity-related international financial resource flows by 2015 to developing countries, especially LDCs and SIDS, as well as countries with economies in transition, using average annual biodiversity funding over the years 2006-10 as a baseline, and to at least maintain this level until 2020. This commitment was extended to CBD Parties, other governments and donors in a position to do so with Decision COP XIII/20, at COP13 in Mexico and reiterated at COP14 in Egypt.
The OECD has, since 1998, monitored development finance targeting the objectives of the CBD. The OECD will continue to analyse biodiversity-related development finance over the next years. Biodiversity and development finance: Main trends, 2011-20 provides aggregate-level information of biodiversity-related development finance flows between 2011 and 2020 by members of the OECD Development Assistance Committee (DAC) as well as other providers, including South-South and triangular co-operation (bilateral finance); multilateral institutions; private finance mobilised by public interventions; and private philanthropy. More detailed analysis will be released in Q1 2023.
The analysis holds true under the two methodological approaches commonly used to assess progress against this Target, namely: accounting for the full amounts of biodiversity-related development finance flows, covering 100% of biodiversity flows marked as principal or significant (secondary) objective; and accounting for 100% of biodiversity-related flows tagged as principal and 40% tagged as significant. While the former approach is consistent with the current statistical guidelines to report to the OECD, the latter reflects the way most DAC members report to the CBD Secretariat on their development finance for biodiversity.
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