Biodiversity makes our planet vibrant, productive and resilient. It underpins our health, sustains our livelihoods and is integral to our economies. Nature’s diversity on land and below water delivers critical ecosystem services – such as crop pollination, clean water and climate regulation.
But right now, biodiversity is under tremendous pressure. Human activities are driving alarming declines in terrestrial, marine and freshwater species and ecosystems. With only five years remaining to achieve the 2030 mission of the Kunming-Montreal Global Biodiversity Framework – to halt and reverse biodiversity loss – the call to action is urgent.
Realigning economic incentives is central to delivering the transformation we need. As stipulated in Target 18 of the framework, governments must not only reform incentives that harm biodiversity but also scale up those that support it.
Encouragingly, governments are not starting from zero. A wealth of collective experience – including setbacks, but also successes and innovations – offers vital lessons for moving faster and smarter. When ambition is coupled with sound design and strong implementation, biodiversity-positive incentives deliver real impact, from curbing deforestation and restoring wetlands, to helping fish stocks in our ocean recover.
This OECD report synthesises these global lessons. It examines a range of economic incentives for biodiversity – including subsidies, payments for ecosystem services, taxes, fees, tradable permits, biodiversity offsets and emerging biodiversity-credit markets – and highlights the key challenges and opportunities for scaling them up effectively and equitably. The report concludes with ten actionable recommendations to help countries deliver on Target 18 of the Kunming-Montreal Global Biodiversity Framework.
By drawing on global best practices and moving with the urgency that the 2030 mission demands, policy makers can unlock the full potential of incentives to reverse biodiversity loss and secure a thriving future for nature and people.
Jo Tyndall
Director of the Environment Directorate
OECD