Biodiversity: Finance and the Economic and Business Case for Action A report prepared by the OECD for the French G7 Presidency and the G7 Environment Ministers’ Meeting, 5-6 May 2019 OECD . C Biodiversity: Finance and the Economic and Business Case for Action Report __________________________ Prepared by the OECD for the French G7 Presidency and the G7 Environment Ministers’ Meeting, 5-6 May 2019 Disclaimers This report is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and the arguments employed herein do not necessarily reflect the official views of OECD member countries. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. For Israel, change is measured between 1997-99 and 2009-11. The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. Please cite this publication as: OECD (2019), Biodiversity: Finance and the Economic and Business Case for Action, report prepared for the G7 Environment Ministers’ Meeting, 5-6 May 2019. Copyright You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to [email protected]. Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at [email protected] or the Centre français d’exploitation du droit de copie (CFC) at [email protected]. Image credits: Christoph Oberschneider/ Shutterstock (cover) © OECD 2019 │4 Table of Contents Abbreviations and Acronyms ............................................................................................................... 7 Executive Summary .............................................................................................................................. 9 1. SYNTHESIS AND KEY MESSAGES ........................................................................................... 11 1.1. Global biodiversity loss and the international context ................................................................ 11 1.2. The socio-economic case for action ............................................................................................ 12 1.3. The business case for action ....................................................................................................... 12 1.4. Opportunities for cost-effective restoration ................................................................................ 14 1.5. Data and indicator gaps on pressures and responses relevant to biodiversity ............................. 14 1.6. Global biodiversity finance: A preliminary update ..................................................................... 15 1.7. Opportunities to scale up action for biodiversity ........................................................................ 16 2. GLOBAL BIODIVERSITY LOSS AND THE INTERNATIONAL CONTEXT ..................... 19 2.1. Biodiversity picture and the international context ...................................................................... 19 2.2. Threats and pressures on biodiversity ......................................................................................... 20 2.3. State of terrestrial, marine and other aquatic biodiversity .......................................................... 22 Trends in species and populations ........................................................................................ 22 Trends in the extent and state of ecosystems........................................................................ 23 3. THE SOCIO-ECONOMIC CASE FOR BIODIVERSITY ACTION ........................................ 26 3.1. Biodiversity and ecosystem services: the foundation of economic development and human well-being .......................................................................................................................................... 26 3.2. The economic values of biodiversity and costs of inaction across multiple policy areas ........... 28 Biodiversity and human health ............................................................................................. 28 Biodiversity and food ........................................................................................................... 29 Biodiversity and water security ............................................................................................ 30 Biodiversity, climate change and disaster risk ..................................................................... 31 3.3. Reflecting the true value of biodiversity in national decision-making ....................................... 33 4. THE BUSINESS CASE FOR BIODIVERSITY ACTION .......................................................... 35 4.1. Business and biodiversity: Dependencies, impacts, costs and risks ........................................... 35 Dependencies, impacts and costs ......................................................................................... 35 Risks ..................................................................................................................................... 37 4.2. Business opportunities for biodiversity and ecosystem services ................................................ 39 4.3. Signs of progress ......................................................................................................................... 40 Increasing awareness from businesses ................................................................................. 40 Emerging business commitments ......................................................................................... 40 Towards a framework for integrating biodiversity in business and investment decision- making ............................................................................................................................................ 41 4.4. The role of policy makers and other stakeholders in addressing barriers to business actions for biodiversity ................................................................................................................................... 45 BIODIVERSITY: FINANCE AND THE ECONOMIC AND BUSINESS CASE FOR ACTION 5 │ Challenges and opportunities for integrating biodiversity in business and investment decisions ......................................................................................................................................... 45 Policy and regulatory tools to integrate biodiversity in business and investment decisions 46 5. OPPORTUNITIES FOR COST-EFFECTIVE RESTORATION .............................................. 48 5.1. The rationale for ecosystem restoration ...................................................................................... 48 5.2. Opportunities for cost-effective restoration ................................................................................ 49 5.3. Putting restoration into practice .................................................................................................. 50 6. DATA AND INDICATOR GAPS ON PRESSURES AND RESPONSES ................................. 55 6.1. The need to improve data and indicators on biodiversity pressures and responses .................... 55 6.2. The current status of data and indicators to monitor pressures and responses ............................ 56 6.3. A proposal for headline indicators in the post-2020 framework................................................. 58 6.4. Data and indicator gaps ............................................................................................................... 59 Pressures ............................................................................................................................... 59 Responses (i.e. actions) ........................................................................................................ 60 6.5. Addressing data and indicator gaps ............................................................................................ 62 7. GLOBAL BIODIVERSITY FINANCE: A PRELIMINARY UPDATE .................................... 64 7.1. A conceptual framework for biodiversity finance flows............................................................. 64 7.2. Finance flows for biodiversity .................................................................................................... 65 Finance flows as reported to the Convention on Biological Diversity Clearing House Mechanism ..................................................................................................................................... 65 Finance flows as reported in other data sets ......................................................................... 66 7.3. Overview of estimated finance flows for biodiversity ................................................................ 71 7.4. Potentially environmental harmful finance flows ......................................................................