CHM - ORTA substantial amount of capital and operational expenditure is required to implement and sustain conservation activities, projects, and programmes effectively, including those related to the implementation of this policy. Conventionally, the bulk of these funds are derived from government budget allocations, supported by multilateral technical assistance and grants from private foundations. While there is justification to increase the government budget allocation, the scope for expansion is severely limited as many other sectors also require a greater allocation, especially in the post-COVID-19 economic recovery scenario. Outside of the conventional sources of funding, performance-based green financing mechanisms are yet to be fully explored and developed. Such mechanisms could provide the impetus for greater private-sector participation, and the impetus for area-based conservation, ecosystem restoration and many other activities. State governments play a key role in biodiversity conservation, since all matters pertaining to land and forest, (with the exception of the Federal Territories of Kuala Lumpur, Putrajaya and Labuan) lie within their legislative purview, as per the Ninth Schedule of the Federal Constitution. As such, State governments must be provided with sufficient financial incentives, including to offset the opportunity costs associated with setting aside land for conservation.
Apart from increasing government budget allocations and conventional sources of funding, we need to develop green financing mechanisms and facilitate greater private sector participation, in order to reduce the present shortfalls in conservation financing. In addition, greater incentives and compensation mechanisms need to be developed, to enable State governments to decouple their economies from activities related to the exploitation of natural resources, and offset the opportunity costs associated with area-based conservation.
| Global Targets | Degree of Alignment |
GBF-T19. Financial resources increased to $200 billion per year, including $ 30 billion through international finance GBF-T19. Financial resources increased to $200 billion per year, including $ 30 billion through international financeSubstantially and progressively increase the level of financial resources from all sources, in an effective, timely and easily accessible manner, including domestic, international, public and private resources, in accordance with Article 20 of the Convention, to implement national biodiversity strategies and action plans, by 2030 mobilizing at least 200 billion United States dollars per year, including by:
(a) Increasing total biodiversity related international financial resources from developed countries, including official development assistance, and from countries that voluntarily assume obligations of developed country Parties, to developing countries, in particular the least developed countries and small island developing States, as well as countries with economies in transition, to at least US$ 20 billion per year by 2025, and to at least US$ 30 billion per year by 2030;
(b) Significantly increasing domestic resource mobilization, facilitated by the preparation and implementation of national biodiversity finance plans or similar instruments according to national needs, priorities and circumstances;
(c) Leveraging private finance, promoting blended finance, implementing strategies for raising new and additional resources, and encouraging the private sector to invest in biodiversity, including through impact funds and other instruments;
(d) Stimulating innovative schemes such as payment for ecosystem services, green bonds, biodiversity offsets and credits, benefit-sharing mechanisms, with environmental and social safeguards;
(e) Optimizing co-benefits and synergies of finance targeting the biodiversity and climate crises;
(f) Enhancing the role of collective actions, including by indigenous peoples and local communities, Mother Earth centric actions[1] and non-market-based approaches including community based natural resource management and civil society cooperation and solidarity aimed at the conservation of biodiversity;
(g) Enhancing the effectiveness, efficiency and transparency of resource provision and use.
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[1] Mother Earth-centric actions: Ecocentric and rights-based approach enabling the implementation of actions towards harmonic and complementary relationships between peoples and nature, promoting the continuity of all living beings and their communities and ensuring the non-commodification of environmental functions of Mother Earth. | Low |
By implementing the following:
1) Increase public funds available for biodiversity conservation
2) Mobilise green conservation financing from the private sector
3) Diversify the revenue streams of state governments for biodiversity conservation
The actions in the NBSAP are mapped to align with the global targets.
The non-state commitments are detailed in the implementing agencies in Malaysia's NBSAP.