When Nature Meets Finance: A New Chapter for Biodiversity in North Macedonia

President John F. Kennedy’s words remind us that despite our differences, we are united by the planet we share, a truth that resonates strongly in a small but biodiverse country like North Macedonia, where our mountains, forests, lakes, and national parks form the living fabric of our shared home. 

Authors: 
Igor Izotov, Project Manager at UNDP North Macedonia
Darko Crvenkovski, Programme Associate at UNDP North Macedonia
Vlatko Trpeski, M.Sc, Head of Department for Nature at the Ministry of Environment and Physical Planning

Scientists like Carl Sagan later echoed this interconnectedness by calling Earth our fragile “pale blue dot,” and today, concepts like Kate Raworth’s Doughnut Economics reinforce the urgency of respecting the ecological boundaries that keep our societies safe. From the ancient forests of Mavrovo to the high‑mountain grasslands of Galichica and the pristine lakes of Pelister, our national parks safeguard ecosystems that sustain life, protect rare species, and secure a healthier future for generations to come. Just as we all breathe the same air, the rich biodiversity of North Macedonia is a common heritage and responsibility, calling on all of us to protect it with care, commitment, and unity.

Building on the success of the EU‑funded and UNDP‑implemented project “Improving the Management of Protected Areas” in 2019, North Macedonia has shown how long‑term, consistent care for nature delivers remarkable results. The establishment of the deer reproduction center in National Park Galichica, which started with just 30 introduced deer, now proudly counts more than 200 individuals thanks to the dedicated work of park management and rangers. As the country has now begun implementing the BIOFIN (Global Biodiversity Finance Initiative ) project, this experience highlights an important reality: financing biodiversity is not optional; it is essential for the survival of the natural systems that sustain us. In a small and biodiverse country like ours, nature protection is not only an environmental action but an investment in resilience, local development, and national identity.

Current state of biodiversity 

North Macedonia is a European biodiversity hotspot, hosting over 16,000 wild species, including more than 800 endemic species. Its rich biodiversity is linked to diverse ecosystems such as forests, mountains, rivers, wetlands, and ancient lakes. Protected areas provide a strong foundation for biodiversity conservation, but further expansion and sustainable financing are needed to meet EU and global targets and ensure long-term protection of natural values. This rich biodiversity represents both a challenge and a responsibility to ensure its effective management.  Biodiversity financing in North Macedonia is fragmented, donor-driven, and still insufficient. Recent steps, especially those related to BIOFIN, offer a pathway toward more strategic, sustainable, and diversified financing, combining public budgets, EU funds, private sector engagement, and innovative mechanisms.

On 15 December 2025, policymakers, financial institutions, civil society, academia, and development partners gathered in Skopje to mark an important step in aligning nature and finance: the national inception workshop of the Biodiversity Finance Initiative (BIOFIN) in North Macedonia. The workshop signaled the start of a multi-year process aimed at transforming how biodiversity is financed, valued, and embedded in national decision-making.

“Within the framework of BIOFIN, we will have the opportunity to place nature as a central value in policymaking, budgeting, and development. BIOFIN requires the involvement of everyone – ministries, municipalities, public enterprises, the private sector, and civil society organizations. Only in this way will we create a system that is efficient, transparent, and long-term.” Stated Igor Nikovski, the Director of the Management Authority, Ministry of Environment and Spatial Planning of North Macedonia

Why Biodiversity Finance, and Why Now?

North Macedonia is home to remarkable biodiversity from mountain ecosystems, forests, protected areas and national parks to globally significant water systems such as Lakes Ohrid and Prespa. These ecosystems provide essential services: water, climate resilience, food security, and livelihoods. Yet they are under growing pressure from land-use change, pollution, climate impacts, and fragmented financing approaches.

Globally, the biodiversity finance gap is estimated at hundreds of billions of dollars annually, and financing biodiversity in North Macedonia echoes this Closing this financial gap is not only an environmental imperative it is an economic and development necessity. 

BIOFIN responds to this challenge by helping countries move from ad-hoc, project-based funding toward systemic, long-term finance solutions for nature.

"Around the world, countries are recognizing that biodiversity loss is not just an environmental issue it is a development, economic, and societal challenge. As we are joining 133 countries around the world which have already started BIOFIN project implementation, we are aiming to can create a robust, inclusive, and actionable Biodiversity Finance Plan that supports North Macedonia’s long-term prosperity and ecological resilience. Let us draw inspiration from countries that have successfully implemented BIOFIN solutions. Let us seize this opportunity to build a future where nature and people thrive together." Anna Chernyshova Deputy Resident Representative 

From Diagnosis to Action

During the workshop, participants were introduced to the BIOFIN methodology, which combines rigorous analysis with practical policy design. Over the course of the project running until September 2027, supported by line ministries, CSOs and private sector, North Macedonia will undertake a Biodiversity Policy and Institutional Review, a Biodiversity Expenditure Review, and a Financial Needs Assessment. These analyses will form the foundation for a National Biodiversity Finance Plan: a concrete, actionable roadmap outlining priority measures, at least 5 innovative financing instruments, and institutional responsibilities, as well as piloting at least one of those financial instruments. 

Importantly, the discussions emphasized that biodiversity finance is not the responsibility of environmental institutions alone. Ministry of finance, another important stakeholder in the process together with, sectoral agencies, municipalities, the private sector, and financial institutions will all play a role in redirecting financial flows from nature-negative to nature-positive outcomes.

Insights from the Room

The workshop’s group discussions surfaced both challenges and opportunities. Participants highlighted the absence of a centralized system for tracking biodiversity finance, limited resources for protected areas, and weak incentives for private-sector engagement. At the same time, strong potential was identified in areas such as green investments, ecosystem service payments, EU funding instruments, and innovative fiscal and market-based solutions.

Above all, there was consensus on one point: investing in biodiversity is not a cost, it is a high-return investment in resilience, stability, and future prosperity.

The launch of BIOFIN in North Macedonia is not merely the start of a technical process; it is a collective commitment to place nature at the heart of economic planning and development choices.

The journey ahead will require collaboration, evidence, and courage. But it begins with a simple recognition: our most basic common link is that we all inhabit this small planet and the responsibility to protect it belongs to us all.