Biodiversity, economics, and sustainable development The work under the CBD

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1 Biodiversity, economics, and sustainable development The work under the CBD International workshop on Biodiversity Conservation and Poverty Reduction Taking an Economic Perspective September 2008, Vilm, Germany Dr. Markus Lehmann Secretariat of the Convention on Biological Diversity Montreal, Canada

2 CBD One of the tree «Rio Conventions», signed in 1992 Entered into force 29 December Parties Governing Body: Conference of the Parties Cartagena Protocol on Biosafety entered into force 11 September 2003; 150 Parties

3 Three main objectives Conservation of biological diversity Sustainable use of its components Fair and equitable sharing of benefits arising out of the utilization of genetic resources CBD

4 Preamble: CBD and sustainable development Recognizing that economic and social development and poverty eradication are the first and overriding priorities of developing countries, Aware that conservation and sustainable use of biodiversity is of critical importance for meeting the food, health and other needs of the growing world population,

5 CBD and sustainable development Strategic Plan (Decision VI/26, 2002) : Biodiversity is the living foundation for sustainable development In addition to its intrinsic value, biodiversity provides goods and services that underpin sustainable development in many important ways, thus contributing to poverty alleviation. 1. Supports ecosystem functions (fresh water, soil conservation, climate stability) 2. Provides products (food, medicine, materials for industry) 3. Is at the heart of many cultural values

6 CBD and sustainable development Revision of the Strategic Plan (Decision IX/9, 2008) : recognizing that the revised and updated Strategic Plan should: Highlight the importance of biodiversity for poverty eradication and the achievement of the Millennium Development Goals, taking into account that conservation and sustainable use of biodiversity should contribute to poverty eradication at local level and not harm the livelihoods of the poor (sub-paragraph f)

7 CBD and sustainable development similar references in other guidance documents E.g. Addis Ababa Principles and Guidelines for Sustainable Use (adopted by COP-7, 2004): Sustainable use is a valuable tool to promote conservation of biodiversity since in many circumstances it provides incentives for conservation because of the social, cultural and economic benefits that people derive As recognized by the PloI of the WSSD, sustainable use is an effective tool to combat poverty and, consequently, to achieve sustainable development.

8 CBD and economics Main entry point: Article 11 on incentive measures Parties, as possible and appropriate, to adopt economically and socially sound measures that act as incentives for conservation and sustainable use Role of the economic context recognized early on Principle 4 of the Ecosystem Approach (COP-4, 2000): notes the provision of ecosystem services and their economic value Calls for: reducing market distortions which provide perverse incentives for biodiversity; incentive alignment to promote biodiversity conservation and sustainable use; cost/benefit internalization to the extent feasible.

9 CBD and economics Programme of work on incentive measures (adopted by COP-5) Classification: positive and negative (or dis-) incentives, indirect incentives (market creation), identification/removal or perverse incentives, valuation Global achievements Exchange of information/good practices (database on incentive measures) Development of guidance and technical background material by SBSTTA

10 Guidance material Proposals for the Design and Application of Incentive Measures (endorsed by COP-6, 2002) Options for the Application of Valuation Tools (COP-8, 2006) Technical material on economic values and valuation CBD and economics

11 CBD and economics Incentive measures should be designed and introduced in a way to support poverty alleviation and reduction of disparities between rural and urban communities (Proposals for the Design and Application of Incentive Measures, paragraph 20) Confirmed and reinforced by COP-9 (decision IX/6) More specific guidance for instance in the Framework for a cross-cutting initiative on biodiversity for food and nutrition (adopted by COP-8, decision VIII/23 A)

12 CBD and economics Existing ( ) policy instruments often overlook the importance of biodiversity and associated knowledge in addressing local problems of hunger and malnutrition. ( ) Under prevailing regulatory frameworks, food quality standards that are not adapted to local foods may also inadvertently constrain food producers, limiting their ability to provide an array of species and varieties to markets. Promoting the broader use of biodiversity promises to contribute to improved human health and nutrition, while also providing opportunities for livelihood diversification and income generation. Activities on: underutilized species, including those important in times of crisis; home gardens, agroforestry and other production systems that contribute to in-situ conservation; Protection and promotion of biodiversity friendly markets; production and commercialization of nonconventional biodiversity-based products.

13 CBD and economics National implementation: Reports by Parties on incentive measures Approx. two thirds have at least some programmes in place Positive incentives most frequent (agriculture, forestry) Lack of funds and capacity frequently identified as major constraints, in particular by developing countries Some funding through negative incentives (entry fees; resource use pricing) Less than one quarter use valuation tools Lack of mainstreaming of biodiversity issues another main constraint Limited contributions to MDGs

14 CBD and economics Some ongoing activities Cooperation with UNCTAD Biotrade Initiative Regional and/or national biotrade programmes in Africa, Asia, and Latin America Guidance on ABS developed under the initiative; guidance on indicators (for evaluation) under development IPES project (with UNEP and IUCN) Publication on REDD as a spinoff (Huberman et al.) Positive incentives most frequent (agriculture, forestry) REDD Providing input into processes and discussions of UNFCCC and CPF partners, in particular on biodiversity (co-)benefits Upcoming Expert Group meeting on Biodiversity and Climate change Cooperation with TEEB Welcomed by several COP decisions Contributing to D1 (on NBSAP, perverse incentives removal/reform) and D3 Cooperation on Communications and Outreach Upcoming workshop on perverse and positive incentives Identification of a limited number of good practice cases from different regions Linkages to poverty reduction goals (see above)

15 The early years CBD and business engagement Many references to business: Convention Text Strategic Plan (2002) Decisions Guidance developed under the Convention relevant to business London and Sao Paulo meetings (2005) to develop ideas for engaging business under the Convention

16 Decision VII/17 CBD and business engagement First decision on business engagement Governments engagement with business in the development and implementation of biodiversity strategies and action plans Greater participation of business in CBD meetings The articulation and dissemination of the business case for biodiversity The compilation and development of good biodiversity practice

17 CBD and business engagement The business and biodiversity toolkit Corporate policies Analyzing dependence on ecosystems Industry guidelines Standards, certification schemes Collaborative platforms (with government agencies, NGOs, peers) Biodiversity in sustainability reporting Third party assessments (e.g. benchmarks)

18 CBD and business engagement Decision IX/26 COP-9 adopts framework for priority actions on business and business referred to in many other decisions Strong participation from business First edition of Business and Biodiversity Forum Session on business at Ministerial Segment German Business and Biodiversity Initiative

19 Challenges CBD and business engagement Engaging SMEs juniors, non listed companies Ensuring participation from developing countries Speaking a common language Cooperation of UNCTAD Biotrade Initiative Publication of business newsletter Other outreach activities Publication and dissemination of TEEB results

20 Thank you!