Financing the Biodiversity Protection
- Mobilisation of private and public finance for Payments for Ecosystem Services lacks lustre.
Incentives for biodiversity protection
- This includes biodiversity-relevant taxes, fees, levies, tradable permits, and Payments for Ecosystem Services (PES).
- Through these economic instruments, governments can affect both public and private financing flows for biodiversity.
- Mobilisation of biodiversity finance through pesticide levies, admission fees to natural parks, hunting and fishing permit fees, etc. has gained governmental support.
- Lack of academic research, governmental support, and political will have vexed PES.
Increasing ecosystem services
- PES: works through performance contracts.
- People who can provide desired ecosystem service are rewarded based on their actions, or quantity and quality of the services themselves.
- It has potential to achieve dual goals of conservation and poverty alleviation towards achievement of SDGs.
- It is an important economic instrument for conservation.
- PES is successfully implemented in Latin American and African countries.
- South Africa: CapeNature Stewardship Programme protects biodiversity on private lands.
- Kitengela: Kenya’s Wildlife Conservation Lease Programme, maintains open areas for wildlife and grazing on personal grounds.
- Costa Rica’s Pago Por Servicios and Ecuador’s Socio Bosque worked for raising money.
Why PES not received academic, research, and policy prioritisation in India?
- A successful PES programme should overcome the impediments to implementation.
- Solid institutional mechanism capable of simultaneous transfer of funds from buyers to suppliers
- Monitoring through investment in local capacity building
- Cost efficiency
- Scope for development benefits, and
- Maintaining the sustainability of funds.
- Local monitoring mechanism is key to successfully implementing a PES programme.
- Eg: A study (Sardana 2019) conducted in Karnataka(Kodagu) to restore native trees shows successfully designed local institutional mechanism for PES implementation.
- Results of such studies offer support for potential research funding in restoration financing.
- The OECD (2019) Biodiversity: Finance and the Economic and Business Case for Action highlighted importance of evaluating financial instruments’ performance in attaining biodiversity goals.
- Strong policy such as TEEB India Initiative highlighting economic consequences of bioldiversity loss, would help prioritise ecosystem restoration financing through direct approach.
- Global initiative:
- UNEP Finance Initiative to mobilise private sector finance to benefit people and environment would help maintain the funds.
- PES would allow country to fulfill its commitments to achieving the 2030 agenda for sustainable development and Paris Agreement on climate change.
Prelims take away
- Payments for Ecosystem Services (PES)
- TEEB initiative
- UNEP Finance Initiative