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Scaling-up Finance Mechanisms for Biodiversity

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This report examines six mechanisms that can be used to scale-up financing for biodiversity conservation and sustainable use and to help meet the 2011-20 Aichi Biodiversity Targets. The mechanisms are environmental fiscal reform, payments for ecosystem services, biodiversity offsets, green markets, biodiversity in climate change funding, and biodiversity in international development finance. Drawing on literature and more than 40 case studies worldwide, this book addresses the following questions: What are these mechanisms and how do they work? How much finance have they mobilised and what potential is there to scale this up? And what are the key design and implementation issues that need to be addressed so that governments can ensure these mechanisms are environmentally effective, economically efficient and distributionally equitable?

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Foreword

Biodiversity loss is a major environmental challenge facing humankind. Biodiversity provides critical life-support functions and services to society, including food, clean water, genetic resources, flood protection, nutrient cycling and climate regulation. These services in turn are essential to human health, security, well-being and economic growth. However, these benefits are not fully reflected in market prices and are therefore undervalued and underprovided. Private decision makers do not always consider the social costs and benefits of natural resources and ecosystem conservation and sustainable use, but rather generally focus only their own private costs and benefits. As a result, biodiversity continues to be under-valued and lost.

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