“Record Funding of $15.4 Billion for Nature Conservation in 2022: A Closer Look at the Rise of Concessional Loans”
Funding for efforts to protect and restore nature increased to $15.4 billion in 2022, with the majority of the funds coming in the form of concessional loans from multilateral banks, according to a new report from the Organisation for Economic Cooperation and Development (OECD).
The report, which analyzed data from 2015 to 2022, revealed a significant growth in funding for biodiversity protection, rising from $11.1 billion in 2021 to $15.4 billion in 2022. This increase was primarily driven by multilateral institutions, particularly development banks, which increased their funding from $2.7 billion in 2021 to $5.7 billion in 2022, mostly through concessional loans.
However, the reliance on loans rather than grants has sparked debate, with concerns raised by poorer countries and climate justice activists who advocate for more grant-based funding to support climate and nature action.
The issue of biodiversity protection will be a key focus at the upcoming COP16 UN conference in Colombia, as countries strive to mobilize $20 billion by 2025, a target set at COP15 in Montreal two years ago. This funding will play a crucial role in shaping new national biodiversity plans and potentially reducing carbon emissions.
To facilitate the flow of funds, a new international biodiversity fund was established under the Global Environmental Facility (GEF) at COP15. However, the fund has struggled to gain traction, receiving only $200 million to date.
While the increase in biodiversity funding is a positive development, concerns have been raised about the disparity between funding for projects specifically targeting biodiversity loss and those with indirect benefits for biodiversity. The report showed a decrease in funding dedicated to tackling biodiversity loss, highlighting the need for a more focused approach to safeguarding nature.
The prevalence of loans over grants also poses challenges for developing countries, as shrinking development budgets in donor countries could impact real biodiversity protection efforts. The slow growth of grant-based financing further underscores the need for increased support for biodiversity conservation.
Looking ahead, experts believe that the $20 billion goal for international public finance by 2025 is achievable, but additional financing will be needed to implement the Global Biodiversity Framework and meet targets to protect 30% of the planet’s land and sea by 2030. Closing the gap on the longer-term finance goal of $200 billion by 2030 will require significant efforts from donor countries and multilateral institutions.
Overall, the report highlights the importance of moving beyond accounting exercises to focus on tangible impacts in halting and reversing biodiversity loss. As countries prepare for COP16, substantial new funding announcements will be crucial to support developing countries in their conservation efforts.
(Reporting by Sebastián Rodriguez; editing by Megan Rowling)