The Global Biodiversity Framework Fund: A Game Changer?

In the face of escalating environmental challenges, nations globally are reassessing their strategies and action plans to protect biodiversity. This editorial analysis sheds light on various aspects of biodiversity conservation. The future prospects for these endeavors are explored, with a specific focus on the goals set by KMGBF and their upcoming evaluation at COP 16.

Global Biodiversity Framework Fund (GBFF) Establishment

The Global Biodiversity Framework Fund (GBFF) was established on August 27, 2023.
This was set up in Vancouver, Canada during the 7th Assembly of the Global Environment Facility.

Purpose Of GBFF

The GBFF aims to solve the long-standing issue of a lack of funding for biodiversity conservation.
It will support countries in achieving the 23 targets of the Kunming-Montreal Global Biodiversity Framework (KMGBF).
The KMGBF was adopted at the 15th Conference of the Parties (COP15) to the UN Convention on Biological Diversity.

Funding Needs

The world needs at least US $200 billion per year until 2030 for biodiversity protection programmes.
This was assessed during COP15.

Funding Sources And Management

The GBFF will be managed by the Global Environment Facility (GEF).
Funding will come from private, philanthropic, and government investments.
This is a new approach compared to GEF, which relied on only 40 donors.
The GBFF will also have access to funds specifically for biodiversity conservation within the GEF.

GBEF Budget

The GBFF has a total budget of $5.25 billion for 2022-26.
36% of this is reserved for biodiversity.
The rest is for projects related to climate change, pollution, land and ocean health.

Financial Gap In Biodiversity Conservation

Predicting if GBFF will make a significant difference is premature.
The financial gap in biodiversity conservation is substantial.
In 2019, the funding for biodiversity conservation ranged from $124 to $143 billion per year.
This falls short against an estimated need of $722 to $967 billion per year.

Consequences Of Inadequate Funding

If GBFF can’t find sufficient funds, nations will need to secure more domestic funds.
This strategy has traditionally been unsuccessful, particularly for developing nations.
Currently, a $4.1-trillion financing gap for biodiversity is projected by 2050, as stated in the “State of Finance for Nature” by the UN Environment Programme in May 2021.

Recognising The Importance Of Domestic Funding

KMGBF’s target 19 underscores the significance of domestic funding.
It suggests various nature-based solutions.
These include payment for ecosystem services, issuance of green bonds, and benefit-sharing mechanisms.

Blended Finance For Biodiversity

Blended finance is a new concept in biodiversity where public resources are used to trigger private investment.
There are doubts about the effectiveness of this method. Evidence shows that results from using blended finance for climate change have been disappointing.
For example, according to a brief by Third World Network, the World Bank only managed to leverage $0.25 of private climate finance for each public dollar used.
The brief also notes that this approach is time-consuming and the seven-year timeframe might be insufficient.

Biodiversity Credits Or Biocredits

One of the innovative funding methods under target 19 of KMGBF is the use of biodiversity credits, also known as biocredits.
These are gaining traction and are less contentious as they are not designed to compensate for negative impacts on biodiversity, unlike carbon credits.
Biocredits could generate the necessary funds to meet KMGBF targets.
The development of biocredits, including regulation, certification schemes, policy and regulatory systems, however, is still in the early stages.
The question of how to link biocredits with other financing instruments and initiatives is yet to be addressed.
The governments of the UK and France are paving the way in developing a roadmap for a robust biodiversity credits market.

Subsidies And Global Deforestation

Farming receives $700 billion in subsidies, contributing to 14% of global deforestation.
KMGBF’s 18th target aims to eliminate, reform, or phase out these harmful incentives.
The goal is to reduce them by at least $500 billion per year by 2030.

The Consequences Of Inadequate Funding For Biodiversity

Insufficient funds for biodiversity could lead to a grim future.
The failure to meet the Aichi Biodiversity targets in 2020 stemmed from this lack of funds.
To prevent a repeat, negotiators at COP15 included finances in the framework’s targets.

The Economic Dependence On Biodiversity

While $200 billion is needed for biodiversity protection, over half of the global GDP, or approximately $44 trillion, depends on nature and its services.
Therefore, investing in biodiversity is crucial for protecting the economy.

The GBFF Council Meeting And Future Projects

The first GBFF council meeting, scheduled for January next year, will approve the work plan for the June 2024 council meeting.
The first projects under the new fund are expected to start before COP16, planned for late 2024.
The fund has now secured the $200 million seed capital needed to become operational.
The current challenge lies in securing funding for conservation efforts.

Revised Budget For Biodiversity Conservation

The 2022-23 revised budget for biodiversity conservation was reduced by 38 percent, dropping to Rs 857.13 crore.
In the 2023-24 fiscal year, schemes received a budgetary allocation of Rs 1,064.3 crore.

Biodiversity Assessments In India

India has conducted three nationwide biodiversity assessments.
These include the “Biodiversity Expenditure Review” (BER) released in October 2018, the “Financial Needs Assessment” (FNA) released in November 2018, and the “Biodiversity Finance Plan” (BFP) launched in May 2019.
According to the BER, the average public finance projected annually from 2017-18 to 2021-22 will be around $10 billion.
The FNA report indicates that around $16.5 billion will be needed in that period.
The BFP, prepared using these assessments, proposed 12 potential solutions to address the financial deficit.
Five of these solutions were quantified: mainstreaming biodiversity in public schemes, corporate social responsibility, augmenting public finance, ecological fiscal transfer, and access and benefit sharing.
The projected annual contribution from these five financial solutions is nearly $2.2 billion.
However, this leaves an annual resource gap of approximately $3.7 billion.

30X30 Target

The 30X30 target forms a part of the KMGBF’s aim. It requires countries to protect at least 30% of their terrestrial and inland water areas, as well as marine and coastal areas by the year 2030.

Previous Efforts And Failures

This new target is an escalation from the previously unsuccessful Aichi Biodiversity target, which aimed to conserve 20% of the earth by 2020.

Changes In The New Target

Despite appearing more ambitious, some experts argue that the KMGBF target is less stringent.
The target now includes biodiversity-rich areas managed by indigenous people and local communities as a part of its 30% calculation.

The Role Of OECMs

The 30X30 target now takes into account “Other Effective Area-Based Conservation Measures” (OECMs).
Defined in 2018, OECMs include regions beyond protected areas that contribute to the in-situ conservation of biodiversity, which may also encompass private lands.

The Challenge Ahead

KMGBF has set multiple targets including target 6 which focuses on invasive alien species.
The aim is to minimize the introduction and establishment of these species by 50% by 2030, as they are a major factor in biodiversity loss.

Climate Change And Biodiversity

One of the challenges is target 8, which involves reducing the impact of climate change and ocean acidification on biodiversity.
The goal is to increase resilience through mitigation, adaptation, and disaster risk reduction actions.

Future Prospects

The effectiveness of KMGBF’s initiatives will be evaluated at COP 16 in October next year.
At this event, members are required to present their revised National Biodiversity Strategies and Action Plans.
Spain and Japan have already unveiled their updated plans, and many other countries have begun the process.
There’s a consensus that seven years is a short timeframe for these ambitious goals.