The United Nations Environment Programme said on Monday that governments have adopted the first global strategy to finance biodiversity, aiming to close the $700 billion annual funding gap and mobilize resources for conservation.

The agreement, reached at the resumed COP16 negotiations under the Convention on Biological Diversity, establishes a framework for funding the Kunming-Montreal Global Biodiversity Framework. It calls for scaling up investments, reforming harmful subsidies, and enhancing financial mechanisms.

“This meeting demonstrates that multilateralism works and is the vehicle to build partnerships needed to protect biodiversity,” said Astrid Schomaker, executive secretary of the CBD.

The strategy sets financial targets, including increasing international biodiversity-related flows to developing countries to at least $20 billion annually by 2025 and $30 billion by 2030.

It also seeks to mobilize $200 billion annually from public and private sources and phase out $500 billion in subsidies deemed harmful to biodiversity.

The move precedes other key environmental negotiations this year, including the 2025 United Nations climate change conference in Brazil and discussions on a global treaty to combat plastic pollution.

It also carries significant implications for financial institutions, reinforcing the need to align investments with biodiversity objectives.

Private Sector Engagement

The agreement identifies the role of private finance in bridging the biodiversity funding gap, with financial institutions expected to scale up nature-positive investments, integrate biodiversity risks into decision-making and improve transparency.

Camille Maclet, head of Natural Capital and Biodiversity at BNP Paribas Group, welcomed the initiative: “We recognize the need to support resource mobilization for nature conservation and sustainable use.”

Thomas Viegas, nature strategy Lead at insurer Aviva, said the agreement provided clarity for financial institutions to integrate biodiversity considerations into business strategies.

The strategy also outlines three key actions for financial institutions: strengthening environmental and social safeguards, expanding biodiversity investments and enhancing disclosure of risks and dependencies related to biodiversity.

The United Nations Environment Programme Finance Initiative is expected to play a key role in implementing the strategy by assisting financial institutions with guidance, reporting standards, and impact investment frameworks.

The agreement follows the launch of the Cali Fund for Fair and Equitable Sharing of Benefits from Digital Sequence Information, which will require private companies using genetic data to contribute a share of their revenue to conservation efforts.

Also Read:

Climate Finance Gap Grows as Global Cities Call for $86B in Funding: Report