Innovative Mechanisms for Financing Biodiversity Conservation

The ongoing depletion of biodiversity is destabilising the functioning of ecosystems, which puts at risk the many related benefits, from provisioning of food and clean water to mitigation of natural disasters and contribution to mental and spiritual wellbeing. This in turns affects the long-term viability of socio-economic activities and human wellbeing.

The traditional publically funded sources for conserving biodiversity are not sufficient and the contribution of the private sector can play an important role to complement them. However, while pioneering examples of successful business investments on biodiversity exist, comprehensive strategies are yet to emerge to allow upscaling of financial investment in biodiversity.

This policy brief contributes to the debate by sharing information on successful examples of private investment in biodiversity conservation in the EU and Mexico, their strategies and their outcomes, both in financial and conservation terms. The examples reviewed include payments for ecosystem services, biodiversity offsetting, and green markets and impact investment.

The brief  also discusses the potential for environmental fiscal reforms, including environmental taxes, environmental fees and charges, environmental tax incentives and ecological fiscal transfers, and it gives some examples across the EU and in Mexico.

Finally, the brief also provides recommendations on opportunities for bilateral partnership between the EU and Mexico.

The policy brief is based on an EU Partnership Instrument-funded project by IEEP and partners from CIRAD Agricultural Research for Development and Ibero-American University.

For more information, please contact Marianne Kettunen or Daniela Russi.

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