Investing in nature is critical for climate stability, safeguarding economic development, say experts in Latin America and the Caribbean

Puerto Iguazú, Argentina - 22 August 2024

Experts from across Latin America and the Caribbean have called for decisive action in protecting the region’s biodiversity from the twin global threats of climate change and habitat destruction, which they see as interconnected crises, highlighting how investments in conservation can generate positive economic returns and ensure climate stability.

The urgent call to action came at the close of a Latin America and Caribbean Countries biodiversity finance dialogue organized by United Nations Development Programme's Biodiversity Finance Initiative (UNDP-BIOFIN) in Argentina this week, with government officials and biodiversity finance experts from 15 countries in the region in attendance.

The planetary crises – climate change and biodiversity loss - are the gravest threats to sustainable development and global stability, experts said.

Although half of global GDP—the most commonly accepted measure of economic activity—is dependent on nature, balance sheets and national economic planning rarely account for nature as an asset to be protected to safeguard economic gains and social stability.  

The opening session featured a moving appeal by Delfin Benitez, a community leader of the indigenous Guaraní people of South America, who described the role nature plays in the Guaraní creation story, and in their social traditions.  

Photo: Camila Lannini, UNDP Argentina

Globally, over US$820 billion is needed every year to restore and protect ecosystems at a scale that can avert a planetary crisis that scientists are describing as the 6th Mass Extinction—with over a million plants and species facing extinction because of the impacts of human activity.

This urgent call to action comes ahead of three major United Nations conferences on biodiversity, desertification and climate coming up later this year. The COP16 on biodiversity will be held in Cali, Colombia in October this year.

“UNDP’s Biodiversity Finance Initiative is working with governments and the private sector to demonstrate how a global shift in finance and economics can not only protect nature but also create jobs and combat climate change,” said Onno van den Heuvel, Head of the Biodiversity Finance Portfolio at UNDP.

“We are supporting 132 countries to shore up their biodiversity protection through sustainable biodiversity finance plans that can drive a global shift in public and private financing for nature,” said van den Heuvel.

Onno van den Heuvel, Head of the Biodiversity Finance Portfolio at UNDP , Photo: Camila Lannini, UNDP Argentina

“Argentina’s participation in this BIOFIN event is crucial, particularly as we look ahead to the upcoming COP16 in Colombia, where Latin America's rich biodiversity will play a significant role,” said Juan Rodrigo Walsh, External Financing Coordinator from the Undersecretariat of Environment at the opening of the event. 

Juan Rodrigo Walsh, External Financing Coordinator from the Undersecretariat of Environment, Photo: Camila Lannini, UNDP Argentina

“Financing for conservation has gained importance since the adoption of the Kunming-Montreal roadmap, highlighting the gap between conservation goals and available funding, a challenge shared across other global agendas” he said.

The Global Biodiversity Framework (GBF) also known as the Kunming-Montreal Framework is a comprehensive international plan designed to guide global efforts to protect and restore biodiversity over the next decade.

The event in Argentina focused on how to support countries accelerate the implementation of the Global Biodiversity Framework.

“Argentina is a country with diverse ecoregions, and through BIOFIN, UNDP is contributing to the search for opportunities for financing biodiversity in the country, and to promote transformations in the behavior of people and institutions,” said UNDP Resident Representative in the Country, Claudio Tomasi.

UNDP Resident Representative in Argentina, Claudio Tomasi. Camila Lannini, UNDP Argentina

Argentina is currently developing a biodiversity finance Plan for Misiones – home to one of the significant remaining tracts of the Atlantic Forest Complex and plans to mobilize up to US$400 million over the next 10 years. This ambitious plan aims to help the province achieve its biodiversity goals and ensure long-term sustainable development. 

BIOFIN has helped governments catalyze US$ 600 million and unlock over US$ 1 billion in funding for biodiversity protection. This year, 91 more countries will develop biodiversity finance plans with support from UNDP through BIOFIN and funded by Global Environment Facility.

Mariana Bellot, BIOFIN Regional Technical Advisor for Latin America and Argentina, Photo credit:  Camila Lannini, UNDP Argentina

Some of the overarching themes discussed during the three-day event included the role of the finance sector in achieving the global framework’s targets, enhancing private finance mobilization for bioeconomy including blended finance schemes, biodiversity credits, insurance mechanisms and emphasizing on how to best enhance nature and climate finance.

In 2024, UNDP launched a programme to support 91 countries draw up Biodiversity Finance Plans in line with the commitments to the Global Biodiversity Framework. The LAC dialogue has been an important step for countries in Latin America and the Caribbean in receiving the support they need to work on their plans, ahead of the COP16 on biodiversity to be held in Colombia in October this year.

Success stories in finance for biodiversity in Latin America and the Caribbean over the past few years include: 

CUBA

Cuba's recent policy change allows landowners to claim payments for the carbon emissions offset by forests on their land and was achieved with BIOFIN support. This initiative contributes to the protection of Cuba's biodiversity and plays a crucial role in reducing pollution and mitigating climate change.

ECUADOR

With our support, small entrepreneurs in Ecuador have access to ‘green loans’ for businesses that benefit nature, and the banking authorities of Ecuador have used the software developed to assess businesses for their ‘green credentials’ to disburse over US$800 million in loans in the country, all of it to small and medium enterprises.     

COSTA RICA

In Costa Rica, the RAICES Indigenous Tourism Incubator has, to date, mobilized and catalyzed more than US$1.5 million with BIOFIN support, benefiting over 2000 indigenous people who have participated in training activities or received funding. The incubator has helped start 28 indigenous tourism projects which are helping to sustainably manage 1,891 hectares of forest.

COLOMBIA

In Colombia, one of the first countries to analyze the impact of incentives from the agricultural sector on biodiversity, the assessment was completed, and a series of recommendations were made to repurpose harmful subsidies. Based on this work, FINAGRO, Colombia's largest development bank for financing the agricultural sector, will now introduce a biodiversity protection system for all its financial instruments. BIOFIN will continue to support FINAGRO in the design, integration and implementation of environmental guarantees for sustainable agricultural loans. This work is an important step towards achieving GBF Goal 18 in Colombia.

For media inquiries, please contact:

Vanessa Hidalgo, Regional Communications Specialist for Latin America and Carribean, United Nations Development Programme, email: vanessa.hidalgo@undp.org,

Mahtab Haider, Communications Specialist, United Nations Development Programme’s Biodiversity Finance Initiative (BIOFIN), email: mahtab.haider@undp.org, 

Julian Dieguez, Communications Analyst, United Nations Development Programme’s Biodiversity Finance Initiative (BIOFIN) in Argentina, email: julian.dieguez@undp.org