The Kunming-Montreal Global Biodiversity Framework: funding for biodiversity at COP16

In 2022, the 15th Conference of the Parties to the UN Convention on Biological Diversity (CBD COP15) agreed on the Kunming-Montreal Global Biodiversity Framework to halt global biodiversity loss. Two years later, from October the 21st to November the 1st, COP16 will take place. This COP in Cali, Colombia is an important opportunity to assess where we stand in implementing our biodiversity targets. Financing biodiversity is also high on the agenda: how do we ensure that there are sufficient resources to meet the biodiversity targets? And what role can the Netherlands play in this? You can read it in this blog.

Header photo: Group of night monkeys in tree, El Silencio Biodiversa Colombia © Photo Santiago Rosado – FBC

Globally, biodiversity is declining at a rapid rate^[1]IPBES (2019): Global assessment report on biodiversity and ecosystem services of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services. E. S. Brondizio, J. Settele, S. … Continue reading. To turn the tide, initiatives to protect nature need to be scaled up. For this purpose, the Kunming-Montreal Global Biodiversity Framework (KM-GBF) was agreed two years ago. To achieve the targets set out in this agreement, an increase in investments in nature protection by governments and the private sector is necessary. The global funding gap for biodiversity is estimated to be over $700 billion. However, this amount is an underestimate and is, moreover, outdated.

What was agreed in the Kunming-Montreal Global Biodiversity Framework?

Sufficient financial resources must be made available to implement the KM-GBF action targets for 2030. The target (action target 19) in the KM-GBF states that by 2030, all countries jointly mobilise at least $200 billion annually for biodiversity restoration and protection. This can come from both domestic and international, public, philanthropic and private resources.

Steps to meet this target include increasing international financial support from high-income countries to low- and middle-income countries to $30 billion a year by 2030, boosting domestic funding for biodiversity through national plans, and attracting private investment through public impact funds. It is important that projects around conservation and restoration of biodiversity become appealing to financial institutions and business. By making these projects profitable, they can be scaled up and make a greater contribution to biodiversity.

Innovative financing methods such as green bonds, blended finance and payments for ecosystem services should be encouraged, while biodiversity and climate financing should be fully integrated. In addition, the contribution of indigenous people and local communities to biodiversity will be strengthened, for example by encouraging community-based nature management.

What is on the agenda at COP16 on financing for biodiversity?

At COP16, financing for biodiversity is high on the agenda. Although the target for funding for biodiversity in the KM-GBF was already set in 2022, little progress has been made since then to mobilise sufficient funding for biodiversity.

Nonetheless, one fund was established in 2023 to support the implementation of the KM-GBF. This is the Global Biodiversity Framework Fund of the Global Environment Facility (GEF). A key discussion point is whether this fund should remain under the GEF or whether a separate fund should be established. The latter is a demand of many low- and middle-income countries as they often struggle to access the money available for biodiversity through the GEF. However, setting up such a fund would take a lot of time and would not automatically mean that more money would become available.

In fact, there is still insufficient funding for all biodiversity targets combined. Therefore, COP16 will also discuss how to mobilise additional resources from domestic sources at all levels of government, the private sector and through innovative financial arrangements. Besides that, it’s still under discussion whether climate finance with positive impact for nature can be counted as biodiversity finance.

‘Plans for national biodiversity financing should ensure that there is or will be sufficient funding for nature protection and restoration. This should be designed and deployed together with local organisations, local governments and indigenous peoples and local communities. In addition, harmful private funding and detrimental government subsidies should be phased out or greened.’

_{Jan Willem den Besten – Senior Expert Conservation Finance, IUCN NL}

How can the Netherlands contribute to this target?

Every Party to the Biodiversity Convention, including the Netherlands, must develop a national strategy and action plan to indicate how they will contribute to achieving the goals of the KM-GBF. To meet and finance the goals in the national action plan, the Netherlands must also develop a financial plan – the so-called National Biodiversity Finance Plan (NBFP). This plan describes how the Netherlands will ensure that more funding is mobilised for biodiversity. Countries can develop their NBFP according to their own needs, priorities and conditions.

The Netherlands can mobilise more funding for nature and biodiversity by cleverly combining government funds, philanthropic funding and private funding so that public funding can be scaled up. For example, this can be done by covering insurmountable financial risks of companies if that’s what’s holding them back from investing in nature.

Dutch foundations and private impact funds play an important role in reducing risks in private investments in biodiversity, as well as investing in incentives such as stronger rule of law in fragile states. In addition, there is a lot of nature that does not yet have a business case and can be financed in the start-up phase with public or philanthropic money, or a combination of these, both in the Netherlands and internationally.

Moreover, there are many opportunities for investments in nature conservation in the Caribbean part of the Netherlands, where nature is very rich, but also highly threatened.

• Follow the Netherlands’ progress on biodiversity financing on the National Biodiversity Dashboard

How does IUCN NL ensure more funding for biodiversity?

IUCN NL works with partner organisations in several countries to design projects that raise private funding in nature and climate using public funds. For example, the Mobilising More for Climate programme works with local communities, often women’s cooperatives, to grow organic products that contribute to forest restoration. Together with buying companies and financiers, they build on-farm models that are appealing to green investors.

This joint effort leads to meaningful investments in conservation and nature restoration, building bridges between local wildlife organisations, government organisations and investors to eventually scale up the most impactful biodiversity projects.