Financing the Framework – Explaining COP16 and the Global Biodiversity Framework Fund
Posted 22nd October 2024
On 21st of October 2024 the 16th Conference of the Parties (COP16) to the Convention on Biological Diversity (CBD) has commenced, and countries around the world were expected to finalize and submit their National Biodiversity Strategies and Action Plans (NBSAPs). These plans are essential as they outline national-level actions to meet the commitments under the Kunming-Montreal Global Biodiversity Framework (GBF), which was adopted during COP15 in 2022. The framework sets out ambitious goals to halt biodiversity loss, restore ecosystems, and ensure the sustainable use of natural resources by 2030.
One of the most significant developments ahead of COP16 is the establishment of the Global Biodiversity Framework Fund (GBFF), which is expected to play a pivotal role in financing these biodiversity ambitions. As countries prepare for the negotiations in Cali, Columbia, where COP16 will take place, discussions around the GBFF and how it can support countries in implementing their biodiversity targets are gaining momentum.
What is CBD COP16 About?
CBD COP16 will be the first major follow-up conference to COP15 and will focus on the implementation of the Kunming-Montreal Global Biodiversity Framework. While COP15 set the stage with the adoption of ambitious targets, COP16 will focus on mobilizing resources, monitoring progress, and ensuring that countries are on track to meet the 2030 goals.
Among the key agenda items for COP16 will be discussions around financial mechanisms, biodiversity monitoring frameworks, and ways to address challenges faced by developing countries, particularly in financing biodiversity conservation.
COP16 will likely witness intense negotiations around these mechanisms, particularly the GBFF, which is seen as a key vehicle to drive the financial resources needed for implementing the GBF at national and regional levels.
The Global Biodiversity Framework Fund
GBFF was ratified by 186 countries and launched at the Seventh Global Environmental Facility (GEF) Assembly in Vancouver, Canada in August 2023 to provide critical financing for biodiversity conservation, with the goal of supporting countries, especially developing nations, in meeting the ambitious targets set under the Kunming-Montreal GBF. It serves as a dedicated fund designed to address the biodiversity financing gap.
In addition, the GBFF represents a crucial element in the overall success of the Kunming-Montreal GBF because without adequate financing, the ambitious biodiversity targets cannot be met. The fund is specifically designed to enable countries to develop and implement their NBSAPs), restore ecosystems, enhance protected areas, support biodiversity-friendly economic transitions, and foster innovative financial solutions for biodiversity conservation.
Key Features of the Global Biodiversity Framework Fund:
- Targeted financing for developing countries: One of the central objectives of the GBFF is to channel funds to developing countries, where the impacts of biodiversity loss are often the most severe, yet the financial resources to address them are limited. These countries also tend to be home to some of the richest biodiversity hotspots, making it essential that they receive adequate funding to safeguard ecosystems.
- Support for NBSAP implementation: NBSAPs are at the heart of national-level biodiversity action. The GBFF provides financial assistance to countries to help them develop and implement their NBSAPs, ensuring that local actions are aligned with global biodiversity targets. These plans serve as blueprints for how countries will protect and restore biodiversity within their own territories, and access to GBFF funds can significantly strengthen the quality and scope of these strategies.
- Access to innovative financial mechanisms: In addition to direct funding, the GBFF also supports countries in developing innovative financial tools for biodiversity conservation, such as nature-based solutions, biodiversity credits, and sustainable business models. By fostering public-private partnerships and encouraging the engagement of the private sector in conservation, the fund aims to make biodiversity conservation financially viable in the long term.
- Focus on inclusive conservation: The GBFF is designed with inclusivity at its core, with a particular focus on engaging IIndigenous peoples, local communities, and women in biodiversity decision-making and conservation efforts. These groups often hold critical knowledge of ecosystems and have long been stewards of biodiversity in their regions. The fund supports projects that empower these communities to play a central role in conservation efforts.
- Transparency and accountability: A robust monitoring and reporting mechanism is built into the structure of the GBFF. Countries receiving financial support are required to report on the progress of biodiversity actions, the results achieved, and how the funds have been used. This transparency ensures that resources are being used effectively and for the purposes intended, ultimately increasing the overall impact of biodiversity conservation efforts.
How Can Countries Access the Global Biodiversity Framework Fund?
Countries that wish to access the GBFF must meet certain criteria and follow specific steps to receive financial support. The process for obtaining funds from the GBFF includes:
- Submitting National Biodiversity Plans: The first step for countries is to submit their NBSAPs or updated versions to the CBD Secretariat. These plans must outline national biodiversity priorities, the actions being taken to meet global biodiversity targets, and the specific financial needs to implement these actions. The quality of the NBSAP and its alignment with the Kunming-Montreal GBF will be a key determinant in a country’s eligibility for GBFF funding.
- Engaging in Multi-Stakeholder Consultations: Countries are expected to demonstrate that their biodiversity strategies have been developed in consultation with a wide range of stakeholders, including government ministries, civil society organizations, the private sector, Indigenous groups, and local communities. Inclusive processes are critical in ensuring that biodiversity conservation efforts are both effective and equitable.
- Demonstrating financial needs and co-financing: While the GBFF provides financial resources, it also encourages countries to seek co-financing from other sources such as bilateral donors, international organizations, and private sector partners. Countries need to demonstrate how GBFF funds will be used in conjunction with other financial sources to maximize impact.
- Monitoring and reporting on progress: To maintain accountability, countries receiving GBFF funding must regularly report on their progress towards meeting biodiversity targets. These reports include data on how funds have been used and the outcomes achieved in terms of ecosystem restoration, species conservation, and sustainable resource use. This transparent reporting structure allows the GBFF to ensure that its investments are delivering measurable conservation results.
The Role of COP16 in Mobilizing Support for the GBFF
At COP16, the focus on resource mobilization and the GBFF will be central to the discussions. Many developing countries, especially those rich in biodiversity but lacking sufficient financial resources, will be looking to secure funding through the GBFF to implement their NBSAPs.
There will also be discussions on how to enhance contributions to the GBFF from wealthier nations, international organizations, and the private sector. The success of the GBFF depends on the commitment of a broad range of actors to contribute financially and support innovative financing mechanisms for biodiversity conservation.
As the countdown to COP16 continues, the Global Biodiversity Framework Fund emerges as a critical element in the world’s efforts to tackle the biodiversity crisis. The success of the Kunming-Montreal Global Biodiversity Framework depends heavily on whether countries, especially those with limited financial means, can access and utilize the resources provided by the GBFF.
At COP16, the international community will have the opportunity to demonstrate its commitment to biodiversity conservation by ensuring that the GBFF is fully operational and capable of driving the transformative actions needed to protect the planet’s ecosystems. The stakes are high, but with the right financial support in place, the path to achieving the 2030 biodiversity targets becomes clearer.
What it means for the future?
In recent years, there has been an increased focus on business responsibilities in biodiversity conservation. While the Global Biodiversity Framework Fund (GBFF) serves as a critical mechanism to bridge the financial gap, it exists as an additional support system to the broader Kunming-Montreal Global Biodiversity Framework (GBF). A core component of the GBF’s success lies in its whole-of-society approach, which emphasizes the need for businesses and the private sector to not only contribute through external financing but also generate internal resources to support biodiversity initiatives.
However, it’s essential to recognize that funding alone is just one piece of the puzzle. Other key resources, such as human capital, will continue to play a pivotal role in implementing successful biodiversity projects. As the GBFF becomes fully operational, there is likely to be a significant increase in demand for green jobs, particularly roles that support the effective implementation of National Biodiversity Strategies and Action Plans (NBSAPs). This surge won’t be limited to conservationists alone, but will span across various sectors, including finance, policy, law, and business operations. A broad range of stakeholders will need to collaborate, creating opportunities for professionals across industries to contribute toward achieving the GBF targets.