The document discusses the Biodiversity Finance Initiative (BIOFIN), which uses a finance approach to mainstream biodiversity. It outlines the BIOFIN methodology, which includes conducting a biodiversity expenditure review, financial needs assessment, and policy review to develop a biodiversity finance plan. The plan identifies optimal finance solutions for the country from public, private, traditional, and innovative sources. Mainstreaming examples and challenges are also briefly discussed.

1. The Biodiversity Finance Initiative – BIOFINThe Biodiversity Finance Initiative
BIOFIN
A finance approach to mainstreaming
SBI 2 (Montreal) - OECD side event - 10 July 2018
Onno van den Heuvel, Global BIOFIN Manager

2. Biodiversity is the total variety of life on Earth = Nature
Why is mainstreaming so important?
Biodiversity is the foundation of ecosystem services to which
human well-being is intimately linked.
And which
intimately links to
the full range of
Life on land and below the
water is biodiversity
Biodiversity contributes
to climate change mitigation
and adaptation, the provision
of clean water
The global struggle
against poverty
and hunger cannot
be won without
biodiversity
The air we breathe,
the water we drink and
the food we eat all rely
on biodiversity
Every sector of the economy is at least
somewhat reliant on biodiversity

3. Biodiversity Expenditure
Review
How much is spent by main
actors? What %
Financial Needs
Assessment
How much is needed to
achieve national targets?
Policy and Institutional
Review
What are drivers, policies,
actors, existing
financing mechanisms
The BIOFIN Methodology
An innovative approach for national finance plans
Biodiversity Finance Plan
Which finance solutions are optimal for the country?
Why should countries adopt them – the business case?
Implementation
Time for finance results!

4. Biodiversity Expenditure Review
Calculate how much major actors are spending on
biodiversity (direct expenditures vs indirect=mainstreaming)
Some figures
• 0.1 to 0.2% of GDP
• 0.2 to 1.8% of National budget
Other areas to examine
• Dependence on ODA (Mongolia almost 50%)
• Tagging climate, other SDGs (Bhutan)
• Recurrent VS investment expenditures
• Budget vs attributions vs expenditures = delivery issues

5. Biodiversity Expenditure Review
Impact
 Broad national discussion on what is a biodiversity
expenditure and what not,
 Expenditures show hard facts of mainstreaming
commitment, not just words in a document
 Awareness of mandates
 Differentiation between natural and human environment
Challenges
- Data availability - Private sector
- Limited understanding of biodiversity
- Biodiversity vs environment - Comparability

6. Biodiversity Finance Plan
Develop the most optimal mix of finance solutions
- Public & Private - Short & Long Term
- Traditional & Innovative - National & International
- Conservation, environment, sectoral mechanisms
• Synthesises learning and recommendations from the
entire process
• Basic screening: 1) Biodiversity 2) Financial impact 3) Soci-
economic criteria 4) Feasibility
• Detailed screening
• Develop business cases and plans for the prioritised
finance solutions (5-15)
• Institutionalise the Finance Plan

7. Mainstreaming examples
• Philippines Malampaya Fund
• Guatemala revenues from sailfish
• Mongolia pasture tax
• Seychelles Biosecurity fee system
• Georgia EIA system
Challenges
- Innovative approach, time
- Build broad capacity, dealing
with many solutions
- Make the case, policy process!