Creating Tailored Finance Solutions for the Greater Good
India is ranked eighth in the world in terms of species richness and is rated one of 17 mega-diversity countries in the world. Conservation of this rich biodiversity is closely tied to human livelihoods and the social development of millions of people. Global Biodiversity Finance Initiative (BIOFIN) was launched in India in 2015 to enhance resource mobilization of biodiversity conservation and ensure alignment of private and public, domestic and international finance to the National Biodiversity Targets (NBAP) and related targets and commitments.
An initiative of the United Nations Development Fund (UNDP), BIOFIN uses financial mechanisms to help tackle biodiversity conservation. Active in 40 countries, BIOFIN India is led by the Ministry of Environment, Forest and Climate Change and hosted by India’s National Biodiversity Authority. It provides a country-specific methodological framework to assess current expenditures and finance needs for implementing the National Biodiversity Action Plan (NBAP) and also seeks to establish innovative and scalable financial solutions to fill the finance gap for achieving National Biodiversity Targets.
By working with governments, the private sector, and vulnerable communities, BIOFIN has developed 150 finance solutions globally that are helping to create jobs, combat climate change, and protect the environment. Sustainable finance solutions include:
- Subsidies for organic agriculture
- Nutrient trading
- Biobanking (habitat/species)
- Debt-for-nature swaps
- Earmarking and retention of biodiversity revenues (self income)
- Enhanced marine or land stewardship
- Enterprise challenge and innovation funds
- Financial and operational mergers
The key results of solutions and the initiatives include:
- 116 schemes from 24 ministries related to biodiversity have been mapped
- Five proposals for CSR funding were developed, focusing on state biodiversity priorities
- A MoU was signed between UNDP and the International Crops Research Institute for the Semi-Arid Crops (ICRISAT) for knowledge sharing and technical partnership to improve agro-biodiversity, climate-resilient agricultural practices, and land degradation.
- A Voluntary Certification Scheme on Access & Benefit Sharing (VCS-ABS) was introduced to incentivize businesses to comply with ABS legislation, benefiting local communities.
BIOFIN encourages ew ways of thinking and working to enable a transition to a nature-positive economy. It aims to move to a transformed economic system that rewards sustainable, long-term performance that goes beyond only financial returns. By nudging governments towards ambitious policies that reflect this vision of a sustainable economy, a more level playing field is also created for all citizens.
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