This document discusses removing perverse economic incentives that contribute to biodiversity loss. It defines a perverse incentive as a policy or practice that encourages environmentally harmful resource use. Some examples of perverse incentives are environmentally harmful subsidies and laws that allow externalities. The document recommends identifying perverse incentives through strategic environmental assessments, designing reforms like removing or replacing incentives, and enforcing reforms through regulation while compensating those affected. Monitoring and evaluation of reforms is also key. The overall goal is to reform policies and practices that provide unintended incentives for biodiversity degradation.