EU delivers on its global financing commitments to protect nature at COP 16

As the 16^th Conference of Parties on the Convention on Biological Diversity (CBD COP16) is taking place from October 21st to November 1st in Cali, Colombia, the European Union (EU) reaffirms its commitment to halting and reversing biodiversity loss worldwide by 2030 with the announcement of several transformative actions. 

Building on its commitment to double external funding for biodiversity from 2021 to 2027 to €7 billion, the EU has unveiled a package of close to €160 million with new initiatives aimed at supporting partner countries and safeguarding biodiversity globally. 

Commissioner for International Partnerships Jutta Urpilainen said: "Today, the EU reinforces its commitment to safeguarding our planet’s natural heritage as part of the Global Gateway. By focusing on capacity building and supporting local communities, we are empowering people to lead efforts to protect and sustainably manage vital ecosystems. At the same time, we are stepping up the fight against environmental crime, working with international partners to preserve wildlife and address the root causes of biodiversity loss. These actions reflect our broader goal of creating a sustainable future where biodiversity thrives and supports resilient societies around the globe."

Developing capacity building and knowledge 

During COP16, the EU announced of a comprehensive €69 million package of actions aimed at enhancing capacity and increasing knowledge in Africa, Asia, Latin America and the Caribbean. This initiative will provide much-needed support to governments, civil society, Indigenous Peoples and local communities (IPLCs).

It will strengthen partner countries’ abilities to mobilise domestic and international finance for biodiversity through the implementation of Biodiversity Financing Plans. Additionally, renewed support will be provided to two regional observatories for biodiversity in the Pacific and the Caribbean. These observatories, alongside the Global Biodiversity Information Facility (GBIF), with whom a contract will be signed at COP16, will serve to enhance biodiversity knowledge and management skills of policy makers and local stakeholders.

Combating wildlife trafficking

Another significant announcement is the EU’s new €48 million programme on illegal wildlife trafficking. This initiative aims to protect wildlife by fostering transnational collaboration and building the capacity of law enforcement and justice systems in developing countries. It will also aim to reduce demand in key markets for illegal wildlife products.

The programme will establish mechanisms to combat organised criminal networks involved in wildlife trafficking and develop a rapid-response system to address emergencies affecting biodiversity and local populations. 

Addressing biodiversity in the high seas

Through a dedicated €40 million program, partner countries will be supported in their efforts to conserve and sustainably manage biodiversity in the high seas – the 65% of the ocean’s surface that lies beyond national jurisdiction. They will receive on-demand technical assistance at national and regional levels, including support for ratifying and implementing the newly adopted Treaty on Biodiversity Beyond National Jurisdiction. The programme will also facilitate access to and use of marine genetic resources and data and support the development of strong proposals for future marine protected areas in the high seas, which are key to achieving the Global Biodiversity Framework’s target to protect at least 30% of land and ocean by 2030.

Leveraging private capital

Since public funds will not be sufficient to address the biodiversity financing gap, the EU is stepping up efforts to leverage private capital through de-risking instruments such as blending and guarantees from the European Fund for Sustainable Development plus (EFSD+) and as part of the Global Gateway Strategy. It is also offering support the development of interoperable sustainable finance frameworks and taxonomies, and to scale up green bonds worldwide.  

Concrete examples of how this support is delivered were presented at the COP:

• An EU Guarantee cover for €32 million of investments in sustainable land use, rural communities and ecosystem restoration, under the recently signed “DFCD Aya Scalable Climate Solutions” EFSD+ agreement implemented by FMO, the Dutch Entrepreneurial Development Bank 
• The Latin America and the Caribbean Sustainable Finance Taxonomy Common Framework for Biodiversity, a key instrument to direct private capital towards biodiversity-positive investments with UNEP support under the EU-funded EUROCLIMA programme and the EU Sustainable Finance Advisory Hub.
• Support the municipality of Bogota with its first green bond issuance, including pre- and post-issuance support delivered by the Global Green Growth Institute in the context of the Global Green Bond Initiative.
• Support to the post-issuance phases of the world-first biodiversity-related green bond from the finance sector by the bank BBVA Colombia with technical support from the EU LAGREEN programme.
• Attracting private capital and establishing the right market conditions is essential. By incentivizing businesses to invest in sustainable practices, these financial tools help create a more balanced and prosperous relationship between economic growth and environmental protection. 

Towards biodiversity certification and nature credits 

At COP 16, the EU presented its exploratory works on the potential and the challenges of biodiversity certification and nature credits, as part of the innovative finance instruments toolbox for broadening sources of funding to mobilize resources, help companies set nature-positive goals, and reward those who protect and restore nature, including farmers, foresters, fishers, and other sea- and land managers as well as IPLCs. EU exploratory works include two pilot projects, one on wetlands in partnership with France, and one on private forests in partnership with Estonia, as well as a project in the Peruvian Amazon. These projects are conceived to make a positive contribution to nature, and not to offset or compensate for the destruction of biodiversity. The EU's approach to biodiversity certification and nature credits is resolutely collaborative, by engaging with the European Investment Bank and major international partners such as the International Advisory Panel on Biodiversity Credits, the Biodiversity Credits Alliance and the International Union for the Conservation of Nature. 

Background

Over the past two years, the EU and its Member States have made progress in meeting their international commitments to nature and biodiversity. Following up on the ambitious EU Biodiversity Strategy for 2030, the Nature Restoration Regulation enters into force with its binding targets to put in place restoration measures within the EU. 

The EU’s announcements at COP16 come at a pivotal time, as countries around the world work to implement the ambitious Kunming-Montreal Global Biodiversity Framework adopted in December 2022. With a focus on empowering communities, building capacity and on leveraging funds to attract additional financing for biodiversity, the EU is playing a critical role in supporting partners in Africa, Asia and the Pacific, Latin American and the Caribbean. These initiatives are complementing existing national, regional and global support such as the € 1.4 billion NaturAfrica initiative or Amazonia+.

More information 

Council conclusions for CBD COP16 

EU and global biodiversity webpage 

Nature needs you and you need nature too – webpage 

COP16 side-event “EU engagement towards biodiversity certification and nature credits”, 28/10/2024