7.2.3 M&E frameworks for individual finance solutions

The application of sound M&E frameworks for each finance solution is imperative to ensure that they achieve their set objectives and measure financial and non-financial performance. Each solution should include an M&E plan, with clear finance targets and milestones.

Despite the great variety among the structure, sources and governance of the different solutions that exist, we recognize several generic M&E principles as vital guidance.

The following questions are generic in nature and can be adapted for a specific finance solution, and complemented by other relevant queries:

  • Are all operational procedures clearly defined and respected?

  • Do the required governing mechanisms operate as planned?

  • Are appropriate communication channels in place to inform stakeholders about the use of the funds?

  • Is there sufficient capacity to implement the finance solution? Is the right profile of team members available?

  • Are any gaps observed in terms of the national legislation, regulations and bylaws, terms of reference or other legal documents that are not included in the finance solution?

  • To what extent are funds or savings really allocated towards biodiversity objectives?

  • Did any barriers emerge in disbursing/collecting the required finance?

  • Are accountability and grievance mechanisms (e.g. auditing, inspections) operational?

Monitoring and evaluation
  • Are effective M&E systems in place?

  • Are proper social and environmental safeguards in place? Are the rights of indigenous groups and other local communities affected?

  • Is the solution informed by gender analysis and are gender-positive outcomes being achieved?

  • Are any other aspects observed that prevent the solution from succeeding? How can they be remediated?

  • Are there mechanisms in place to guarantee long-term sustainability, scaling up or replication?

Box 7.6: Selected Resource Documents on Monitoring and Evaluating Specific Finance Solutions

  1. The UNDP Financial Sustainability Scorecard for Protected Area Systems
  2. The Management Effectiveness Tracking Tool for Individual Protected Areas
  3. The CFA Practice Standards for Conservation Trust Funds
  4. The Biodiversity Offset Implementation Handbook (Chapter 4)
  5. Evaluating Payments for Environmental Services: Methodological Challenges (2016) Gwenolé Le Velly and Céline Dutilly
  6. Developing Monitoring and Evaluation Framework for Budget Work Projects
  7. Evaluating Impact Bonds (2015) Roger Drew and Paul Clist
  8. Monitoring and evaluation of social investment: Practitioner note 2 (2017) IPIECA
  9. The UNDP Capacity Scorecard

Box 7.7: M&E Framework for Finance Solutions: Sample Indicators

Finance mobilized:

  • Increased generated revenues for biodiversity conservation or sustainable use
  • Resources aligned to benefit biodiversity conservation or sustainable use
  • Increased financial delivery of existing funds
  • Avoided expenditures for biodiversity conservation

Estimated future finance flows:

  • Estimated increased generated revenues for biodiversity conservation or sustainable use
  • Estimated resources aligned to benefit biodiversity conservation or sustainable use
  • Estimated increased financial delivery of existing funds
  • Estimated avoided expenditures for biodiversity conservation