As discussions resume at COP16 in Rome, it has become clear that the success of global biodiversity goals hinges on securing sufficient financial resources. The need for robust biodiversity finance is more urgent than ever. Without substantial funding, the pledges made under the Kunming-Montreal Global Biodiversity Framework will remain unfulfilled promises, leaving the natural world increasingly vulnerable.
For decades, the world has turned a blind eye to the rapidly escalating crises of climate change and biodiversity loss, even as the evidence grows starker. Approximately 1 million animal and plant species are currently threatened with extinction, a figure unmatched in human history. Experts warn that by 2100, climate change may lead to the loss of over half of Africa’s bird and mammal species, with severe declines in the productivity of the continent’s lakes and significant losses in plant diversity.
Additionally, 75% of the Earth’s land has been significantly altered, and oceans are facing even greater challenges. Human activities have left the oceans warmer, more acidic, and more polluted than ever before. The oxygen levels in these waters are plummeting as they become increasingly saturated with carbon dioxide.
The stakes are high, and the urgency to protect biodiversity is not just about safeguarding plant and animal species. The well-being of humanity is inextricably linked to the health of our ecosystems. From clean air and water to food resources and carbon sequestration, ecosystems provide essential services that sustain all forms of life. Shockingly, 55% of global GDP depends on the functioning of biodiversity and ecosystem services, with 20% of countries at risk of ecosystem collapse due to biodiversity loss.
The situation is dire. Without swift and decisive action, the planet will soon reach a tipping point, beyond which its natural resources will no longer support life in any meaningful way.
The Financial Gap: How Much Is Needed to Save Biodiversity?
Experts agree that addressing biodiversity loss requires a significant increase in financial investments, estimating that between $500 billion and $900 billion per year is needed for nature protection. According to the latest data from the Organization for Economic Co-operation and Development (OECD), global biodiversity finance currently totals $78-91 billion annually, combining public, private, and international funds. In stark contrast, governments are spending around $500 billion annually on activities that harm biodiversity—five to six times more than the amount allocated to conservation efforts. The overall financial flows that negatively impact biodiversity are likely far greater, underscoring the urgent need for a financial shift toward protecting nature.
In 2022, 196 countries adopted the Kunming-Montreal Global Biodiversity Framework, aiming to halt and reverse biodiversity loss by 2030. This ambitious agreement includes long-term goals for 2050 and 23 action-oriented global targets for immediate action. One of the most significant targets is to protect at least 30% of the Earth’s lands, inland waters, and marine areas by 2030—a commitment commonly referred to as “30 by 30.”
To meet these goals, governments must allocate more resources for biodiversity. The framework stipulates reducing harmful subsidies by $500 billion annually and raising biodiversity financing to $200 billion annually. Additionally, developed nations are expected to contribute at least $20 billion per year to biodiversity finance for developing countries by 2025, increasing to $30 billion annually by 2030.
Despite this bold framework, hopes for real progress were dampened when countries failed to reach a consensus on financing strategies at COP16. With less than two years since the framework’s adoption, resource mobilization remains a contentious issue, with many countries from the Global South calling for urgent action from wealthier nations to meet financial commitments and establish accountability mechanisms.
A Call to Action for Global Governments
As discussions continue this week in Rome, it is critical for governments to reaffirm their commitment to biodiversity. The protection of biodiversity cannot be separated from the commitment to adequately fund it. Without the necessary financial resources, the promises made in the Kunming-Montreal Framework will remain unfulfilled, and the world will continue down a path of irreversible environmental degradation.
We must ask ourselves: are we prepared to face the irreversible destruction of nature and its consequences for humanity? To achieve the ambitious targets of the Global Biodiversity Framework, governments must not only pledge to protect biodiversity but also ensure that financial mechanisms are in place to support conservation efforts.
The post-2020 Global Biodiversity Framework offers a unique opportunity to drive transformative changes in global finance, ensuring that future generations can live in harmony with nature. Now is the time to take decisive action and secure the future of biodiversity for all.
Related Topics:
Sector-Specific Decarbonisation Road Maps Could Drive Private Investment, Says IIGCC
Egypt’s Banking Sector Strengthens Commitment to Sustainable Finance
Financing Europe’s Defense: A Necessary Investment for the Future
