Ministers and experts debate better financing for nature at 3rd Global BIOFIN Conference

Bonus Malus

Incentive mechanism that awards biodiversity friendly behavior or decisions a bonus payment and non-friendly a malus payment. Has been applied on private land owners to encourage establishment of spatially adjacent (or for certain species spatially dispersed) protected areas to existing protected areas by awarding the land owner a bonus payment (or to pay a malus) when the conservation is adjacent to existing protected areas. Oregon's Conservation Reserve Enhancement Program (CREP), used malus payments to assist the recovery of salmon and trout species through the creation of riparian buffers along stream habitat.

 

Public/Private
Public

Public

Private

Private

Nudging

To influence individual’s behavior in a biodiversity favorable direction using psychology rather than financial incentives. The most cited example of a nudge is the etching of the image of a housefly in the men’s urinals at Amsterdam Shiphol airport.  Nudging has been applied in natural parks to reduce that incident of visitors bringing home stones by simply changing the text of the signs. In Finland forest owners' landscape management preferences were nudged to improve social efficiency of PES schemes for biodiversity conservation which increased aggregate service provisioning. Can work as a complement to increase the effect of other solutions such as different forms of protected areas and eco- tourism.

Public/Private
Public

Public

Private

Private

Pasture (and grazing) fees

Fees for access to rangelands on public lands including in Protected Areas.  Fees and permits are used to regulate usage and avoid overgrazing and rangeland degradation.

Result

Deliver

Any measure or strategy that can enhance cost-effectiveness/efficiency, synergies and/or favour a more equitable distribution of resources.

Deliver

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Type

Fiscal

Any solution that involves a fiscal reform, i.e. changes in taxation or the modification of a subsidy's regime.

Fiscal

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Public/Private
Public

Public

Private

Private

Sector

Agriculture

Agriculture

Other

Other

Protected Areas

Protected Areas

Project Finance for Permanence

Project Finance for Permanence (PFP) is an innovative approach to permanently and fully funding conservation. The terminology is borrowed from Wall Street, where a single "closing" is negotiated with Government, foundations and private donors to gradually eliminate the gap in protected areas financing. PFPs is a solution for graduating from piecemeal funding initiatives. Successful PFPs were completed in Brazil, Costa Rica and Canada. 

Result

Deliver

Any measure or strategy that can enhance cost-effectiveness/efficiency, synergies and/or favour a more equitable distribution of resources.

Deliver

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Realign

Any measure that can re-orient and realign existing financial flows towards biodiversity conservation. 

Realign

Type

Grant

Any solution that invovles the allocation of a grant. This includes private donations and Official Development Assistance.

Grant

Market

Any solution that involves a market transaction, e.g. ecosystem services and carbon markets.

Market

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Public/Private
Public

Public

Private

Private

Sector

Agriculture

Agriculture

Finance

Finance

Fishing

Fishing

Forests

Forests

Other

Other

Protected Areas

Protected Areas

Tourism

Tourism

Countries:

EIA permitting and review fees

Fees charged to developers for complementing the Environmental (and Social) Impact Assessments (EIA) review process by public authorities.  Fees are often set at cost recovery rates. The resources are used to staff environmental agencies responsible to review EIA. 

Result

Deliver

Any measure or strategy that can enhance cost-effectiveness/efficiency, synergies and/or favour a more equitable distribution of resources.

Deliver

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Type

Fiscal

Any solution that involves a fiscal reform, i.e. changes in taxation or the modification of a subsidy's regime.

Fiscal

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Public/Private
Public

Public

Private

Private

Sector

Agriculture

Agriculture

Energy

Energy

Fishing

Fishing

Forests

Forests

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Mining

Mining

Tourism

Tourism

Water

Water

EIA performance bonds

A performance (or contract bond) is a surety bond issued by an insurance or financial company to guarantee satisfactory completion of a project by a contractor. Performance bonds and other financial guarantees can be linked to EIA provisions. These are provided by the project developer -usually for long term mining projects- to assure stakeholders that financial resources can be deployed even if the developer cannot comply with EIA provisions. It is a promise from a surety that monetary compensation will be provided to the owner if the project developer fails to act. The resources from the surety can be quickly deployed to save or recover critical environmental assets and can be accessed even in case of bankruptcy.

Result

Avoid

Any measure that can prevent or reduce future investment needs by eliminating/amending existing counter-productive policies and expenditures (e.g. taxes on sugar content or tobacco).

Avoid

Deliver

Any measure or strategy that can enhance cost-effectiveness/efficiency, synergies and/or favour a more equitable distribution of resources.

Deliver

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Type

Debt/Equity

Any solution that invovles an obligation or liability to make a payment and/or the acquisition of ownership rights (equity, property or financial asset).

Debt/Equity

Fiscal

Any solution that involves a fiscal reform, i.e. changes in taxation or the modification of a subsidy's regime.

Fiscal

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Risk

Any solution that invovles the transfer of risks between two or more parties, e.g. a guarantee.

Risk

Public/Private
Public

Public

Private

Private

Sector

Energy

Energy

Finance

Finance

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Mining

Mining

Tourism

Tourism

Water

Water

Countries:

Fees, penalties, and management expenditures for Environmental (and Social) Impact Assessments

Environmental (and Social) Impact Assessments (EIA) are conducted to evaluate the environmental and social risks of a development project including mining, hotels, and other large infrastructure projects. A range expenditures and investment to preserve nature are associated with the EIA process including permitting fees, expenditures for the assessment itself, expenditures for implementation of the environmental and social management plans, performance bonds, insurance products, biodiversity offsets etc. Additionnally, penalties may be directly triggered by non-compliance to the EIA and its associated management plans. 

Result

Avoid

Any measure that can prevent or reduce future investment needs by eliminating/amending existing counter-productive policies and expenditures (e.g. taxes on sugar content or tobacco).

Avoid

Deliver

Any measure or strategy that can enhance cost-effectiveness/efficiency, synergies and/or favour a more equitable distribution of resources.

Deliver

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Type

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Public/Private
Public

Public

Private

Private

Sector

Agriculture

Agriculture

Energy

Energy

Finance

Finance

Fishing

Fishing

Forests

Forests

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Mining

Mining

Tourism

Tourism

Transport

Transport

Water

Water

EIA permitting and review fees

Fees charged to developers for complementing the Environmental (and Social) Impact Assessments (EIA) review process by public authorities.  Fees are often set at cost recovery rates. The resources are used to staff environmental agencies responsible to review EIA. 

Result

Deliver

Any measure or strategy that can enhance cost-effectiveness/efficiency, synergies and/or favour a more equitable distribution of resources.

Deliver

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Type

Fiscal

Any solution that involves a fiscal reform, i.e. changes in taxation or the modification of a subsidy's regime.

Fiscal

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Public/Private
Public

Public

Private

Private

Sector

Agriculture

Agriculture

Energy

Energy

Fishing

Fishing

Forests

Forests

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Mining

Mining

Tourism

Tourism

Water

Water

EIA performance bonds

A performance (or contract bond) is a surety bond issued by an insurance or financial company to guarantee satisfactory completion of a project by a contractor. Performance bonds and other financial guarantees can be linked to EIA provisions. These are provided by the project developer -usually for long term mining projects- to assure stakeholders that financial resources can be deployed even if the developer cannot comply with EIA provisions. It is a promise from a surety that monetary compensation will be provided to the owner if the project developer fails to act. The resources from the surety can be quickly deployed to save or recover critical environmental assets and can be accessed even in case of bankruptcy.

Result

Avoid

Any measure that can prevent or reduce future investment needs by eliminating/amending existing counter-productive policies and expenditures (e.g. taxes on sugar content or tobacco).

Avoid

Deliver

Any measure or strategy that can enhance cost-effectiveness/efficiency, synergies and/or favour a more equitable distribution of resources.

Deliver

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Type

Debt/Equity

Any solution that invovles an obligation or liability to make a payment and/or the acquisition of ownership rights (equity, property or financial asset).

Debt/Equity

Fiscal

Any solution that involves a fiscal reform, i.e. changes in taxation or the modification of a subsidy's regime.

Fiscal

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Risk

Any solution that invovles the transfer of risks between two or more parties, e.g. a guarantee.

Risk

Public/Private
Public

Public

Private

Private

Sector

Energy

Energy

Finance

Finance

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Mining

Mining

Tourism

Tourism

Water

Water

Countries:

Water markets

Water markets create the possibility of buying and selling water access and use water resources. Trading of water rights can promote a more efficient allocation of water rights among users and increase water availability in areas of increasing water scarcity and demand For example, water markets have been used to enhance available habitat for endangered salmon species in northwestern North America.

Result

Deliver

Any measure or strategy that can enhance cost-effectiveness/efficiency, synergies and/or favour a more equitable distribution of resources.

Deliver

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Type

Market

Any solution that involves a market transaction, e.g. ecosystem services and carbon markets.

Market

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Public/Private
Public

Public

Private

Private

Sector

Agriculture

Agriculture

Energy

Energy

Forests

Forests

Manufacturing

Manufacturing

Mining

Mining

Protected Areas

Protected Areas

Water

Water

Countries:

Chile

Biodiversity business incubator

Business incubators are institutions that provide technical or financial services to strengthen startups and early stage enterprises. Incubators can support companies with an explicit commitment to biodiversity by hosting them in their premises and facilitating matching capital from angel investors, state governments, economic-development coalitions and other investors.

Result

Deliver

Any measure or strategy that can enhance cost-effectiveness/efficiency, synergies and/or favour a more equitable distribution of resources.

Deliver

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Type

Debt/Equity

Any solution that invovles an obligation or liability to make a payment and/or the acquisition of ownership rights (equity, property or financial asset).

Debt/Equity

Grant

Any solution that invovles the allocation of a grant. This includes private donations and Official Development Assistance.

Grant

Market

Any solution that involves a market transaction, e.g. ecosystem services and carbon markets.

Market

Public/Private
Private

Private

Sector

Agriculture

Agriculture

Energy

Energy

Finance

Finance

Manufacturing

Manufacturing

Trade

Trade

Transport

Transport

Water

Water