New Zealand will conduct Biodiversity Finance Assessment using BIOFIN methodology

How many of us get to the end of the day feeling tired, and we say to ourselves, ‘I can do that tomorrow’? We’re doing the same thing to global biodiversity – the variety of wildlife on earth. With around 4,000 threatened or endangered species in New Zealand, there is an urgent need for effective investment in biodiversity. Despite the growing need, current biodiversity investment in Aotearoa New Zealand is less than 0.25 percent of national economic activity. To address these issues, Otago University Business School will conduct an independent assessment of the country's biodiversity funding needs using the UNDP's Biodiversity Finance Initiative (BIOFIN) methodology. This non-governmental-led assessment, known as the NZ BIOFIN Assessment, will provide invaluable insight into the efficiency and scale of investment required, and identify potential funding sources and innovative financing solutions. The assessment will contribute to the central and regional government, iwi (Māori tribes), the private sector, and non-government organizations' biodiversity finance knowledge and planning.

Leadership and vision

Led by Ian Herbert, a postgraduate of Otago University Business School, the NZ BIOFIN Assessment will establish working groups and promote collaboration between the government, the private sector, and non-government organizations. His motivation stems from the low portion of biodiversity finance – current investments make less than 0.25% of  national GDP - and the corresponding biodiversity loss in New Zealand. “Future generations will have fewer and fewer options for biodiversity. There is an urgent need to identify, finance, and implement appropriate investments to protect and restore our biodiversity,” says Ian.

BIOFIN methodology

The BIOFIN assessment in New Zealand will use the BIOFIN methodology developed by the United Nations Development Programme (UNDP). BIOFIN aims to break the historical pattern of biodiversity loss by providing innovative financing solutions for biodiversity. This includes analyzing current biodiversity spending, identifying gaps, and recommending strategies to improve funding and spending effectiveness.

The plan for the NZ BIOFIN assessment spans from 2024 to early 2026 and includes the following main phases:

• Institutional Review (2024): Assess current institutions and their role in biodiversity funding.
• Biodiversity Spending Review (2024): Assess current biodiversity spending and its effectiveness.
• Assessment of funding needs (2025): Identify funding needs for effective biodiversity conservation.
• Biodiversity Finance Plan (2025): Formulate a strategic plan to secure and allocate the necessary funding.

The importance of the assessment

The NZ BIOFIN assessment is important for several reasons:

- Addressing biodiversity loss: with around 4,000 species in New Zealand threatened or endangered and a large proportion of native ecosystems at risk, there is an urgent need for effective investment in biodiversity.

^{Kaka at Pukaha National Wildlife Centre, Mt Bruce, New Zealand Photo credit: Amanda Sinclaire}

-  Economic commitment: Current investment in biodiversity in New Zealand is estimated to be less than 0.25% of GDP, while in the medium term around 0.5% of investment is likely to be required to achieve a significant impact. A new biodiversity finance tool called the Biodiversity Investment Contribution (BIC) is being considered as part of the funding mix. Internationally, this new tool could provide up to 50% of the current Global Biodiversity Framework finance gap. It helps fix a glitch that has plagued economists and economic theory:  How can future generations be compensated by us for our overconsumption, or how can future generations incentivize current generations to leave adequate options for biodiversity? The answer is to position future generations as the primary beneficiaries of the new biodiversity finance tool, the BIC. Intergenerational economics is not new, but a way of thinking that we have ignored for far too long.

- Global context: Biodiversity loss is a global crisis. The Living Planet Index shows a 70% decline in global vertebrate populations over the last 50 years. Less than a third of the global funding needed for biodiversity is available, so there is an urgent need for action.

^{Gecko, Pukaha National Wildlife Centre, Mt Bruce, New Zealand. Photo Credit Amanda Sinclaire.}

Community support

The NZ BIOFIN assessment is supported by various community groups, including the Mount Maunganui College Environment Group. In a heartfelt letter, the group emphasized their deep connection to the land, expressed in the proverb "Ko au te whenua ko te whenua ko au" - "I am the land, and the land is me" and the importance of addressing challenges such as deforestation, pollution, overfishing and habitat destruction that threaten the balance of ecosystems and the survival of species. The group emphasized the importance of initiatives such as the NZ BIOFIN Assessment to protect the environment and ensure its long-term sustainability.

Common approach

The NZ BIOFIN Assessment will be an open and collaborative process involving businesses, communities, iwi, landowners, non-government organizations, society and government. The assessment will be guided by the Aotearoa New Zealand Biodiversity Strategy, which sets a strategic direction for biodiversity over the next 30 years. The final NZ BIOFIN Assessment will be publicly available so that organizations and individuals can benefit from the findings.

^{Photo Credit; NZ Sustainable Business Network} 

Conclusion

The New Zealand Biodiversity Finance Assessment is an important step towards halting biodiversity loss and securing a sustainable future for Aotearoa New Zealand. Based on the proven BIOFIN methodology, this assessment will provide an understanding of New Zealand's biodiversity finance landscape and pave the way for more effective investment strategies. The collaborative nature of this initiative emphasizes the shared responsibility of all stakeholders to conserve New Zealand's natural heritage for future generations. If we care about our children’s common future, we care about enduring biodiversity finance.