Namibia

UNDP BIOFIN Namibia, with support from the Government of Canada, is working with national partners to develop finance solutions that can strengthen long-term and sustainable financing for biodiversity. The Biodiversity Finance Facility is the first priority solution moving forward, while additional opportunities identified through the Policy and Institutional Review are being considered for further assessment.

Biodiversity Finance Facility

The Biodiversity Finance Facility (BFF) is being developed as a sustainable financing mechanism to mobilize resources for the conservation, restoration and sustainable use of Namibia’s biodiversity and natural resources.

Positioned within the existing structure of the Environmental Investment Fund of Namibia, the Facility aims to mobilize and blend public, private and philanthropic finance and provide targeted financial and technical support to nature-positive initiatives. It will support investments that strengthen ecosystem resilience, community livelihoods and nature-based economic opportunities while helping reduce reliance on short-term donor funding.

Stage: Piloting

Potential Finance Solutions under Consideration

The Policy and Institutional Review has also identified additional opportunities that could strengthen Namibia's biodiversity finance landscape. These remain at an early stage and require further assessment and prioritization.

1. Strengthening Environmental Levies and Conservation Revenues

Review environmental fees and levies, including park entrance fees and wildlife-related charges, to better reflect biodiversity values and strengthen revenue generation. Potential measures include improving revenue retention for conservation and introducing digital systems to increase transparency and accountability.

2. Biodiversity Offsets and Environmental Compensation

Explore a national framework for biodiversity offsets and ecological compensation linked to Environmental Impact Assessments. This could include clear standards, a national registry and mechanisms for directing compensation toward existing environmental financing institutions, while ensuring that offsets address residual impacts after avoidance and minimization measures.

3. Strengthening Community-Based Natural Resource Management Finance

Diversify revenue for Community-Based Natural Resource Management through nature-based enterprises, eco-labelling and other sustainable income opportunities. The approach could also strengthen financial management and governance within conservancies and better link financing with measurable biodiversity outcomes.

4. Expanding Biodiversity Finance through the Environmental Investment Fund

Strengthen the role of the Environmental Investment Fund as a national platform for biodiversity finance, including through a dedicated biodiversity financing window and additional capitalization from domestic and international sources. This approach would build on existing institutions rather than creating new standalone funds.

5. Water Tariffs and Catchment Finance

Explore the integration of ecosystem-service values into water tariffs and catchment-based fees, with opportunities to reinvest part of the resulting revenue in watershed restoration, protection and sustainable management.

6. Green Taxes and Environmental Fiscal Reform

Assess opportunities for environmental taxes and biodiversity-related surcharges that could generate additional domestic resources for nature. This could be complemented by targeted fiscal incentives encouraging businesses to invest in biodiversity conservation and restoration.

7. Biodiversity-Positive Agricultural Incentives

Explore reforms to agricultural subsidies and financial products to encourage sustainable and biodiversity-positive farming practices, including the integration of biodiversity criteria into agricultural lending.

8. Tax Incentives for Biodiversity Investment

Assess targeted tax incentives for private investment in conservation, ecosystem restoration and other biodiversity-positive activities, with financing linked where possible to existing national environmental funds and institutions.

These potential solutions were identified through the Policy and Institutional Review and remain at the idea stage. They will require further analysis, consultation and prioritization before implementation.

BIOFIN Namibia has made substantial progress in biodiversity finance by producing critical reports, fostering strong partnerships, and designing innovative financial mechanisms national levels. 

National-Level Achievements 

Namibia’s Biodiversity Finance Initiative (BIOFIN) made substantial progress in 2025 toward achieving a validated Biodiversity Finance Plan (BFP). Key milestones include the completion of the Policy and Institutional Review (PIR), which found that significant funding gaps continue to limit the effectiveness and scale of biodiversity finance in Namibia. Biodiversity funding remains insufficient, fragmented, and heavily dependent on external sources. Domestic public expenditure has experienced periods of decline, and competition with other national priorities constrains the resources available for conservation. Donor funding, while substantial, is typically short-term and dispersed across multiple projects and actors, resulting in duplication and limited long-term sustainability. Additionally, private-sector engagement in biodiversity finance remains modest due to unclear incentives, regulatory gaps, and limited awareness. 

The proposed Biodiversity Financing Facility presents a strategic and sustainable finance solution, uniquely positioned to address Namibia’s long-standing biodiversity finance gap. The Fund is designed to establish a stable, long-term financial mechanism that ensures consistent and predictable resources for biodiversity conservation. By generating income through well-managed investments, the Endowment Fund will reduce reliance on short-term donor cycles and support Namibia’s commitment to biodiversity conservation over the long term. This approach aligns with Namibia’s past successes in conservation finance, where small initial investments were used to build credibility and catalyze further funding, progressively scaling up to achieve sustainability.  

Efforts toward institutionalization are advancing, with a focus on integrating the Endowment Fund mechanism into the national biodiversity finance architecture. This includes the ongoing technical work to define legal and governance structures, ensuring alignment with national policies and frameworks under the oversight of the Environmental Investment Fund and key public institutions. 

BIOFIIN Namibia also completed its study on readiness of institutions for nature related financial disclosures which found that, Namibia has the opportunity to be a leading pioneer in nature-related financial disclosures in southern Africa. While climate risk disclosure regulation is advancing, it generally remains voluntary. Banks and other private sector firms, regulators, and donors should work together to bridge the capacity gaps, shape a national taxonomy, and pilot appropriate tools to lay the groundwork for legally binding natural capital protocols.  

By harmonizing institutional roles, upgrading legal frameworks, establishing new digital infrastructure, and enhancing human capital, Namibia can better manage biodiversity risks and unlock significant green and blue finance flows. Such leadership will not only advance national conservation goals but also enhance financial sector resilience and investor confidence. Continued stakeholder collaboration, securing sustained funding and international partnerships will be essential to realize this vision.