Strength in unity: financing biodiversity conservation as a joint task

Governments play a leading role in funding biodiversity, but alone they are not enough. For that, we need everyone. Not just a redirection of existing resources or a single sector, but combined strategies and additional resources.  

And the private sector? Philanthropic capital? Both are still not enough to supply this financing alone, but they can be used in combined strategies. In order to fund the conservation of biodiversity in a broad and diverse way, it is necessary to create different mechanisms, mixing resources from different sources. 

Blended finance as a conservation solution 

Once the combination of resources is more effective, blended finance comes into play. In this strategy, resources from different sources can be combined to benefit a cause. In the case of biodiversity conservation, it is extremely positive and considered fundamental in the design of financial solutions. 

These resources can arise in the sectors of governmental origin, of private sector and gives philanthropy. Check below how each one participates in financing biodiversity: 

  • governments: Funding from government sources can also be divided into national and international. It is done through agencies or public financial institutions to support the pursuit of biodiversity conservation objectives. While the national government directly or indirectly allocates funding from national public budgets, the international government provides grants or funding by providing concessional rates or interest terms.

    In Brazil, the Ministry of Environment and Climate Change (MMA) It is the part of the Federal Government that operates in the environmental area. Among the actions carried out by the MMA are the reduction of waste in nature and the emission of gases into the atmosphere, as well as the promotion of ecological tourism.

    Among the initiatives is the Parque+ Program, which increases the practice of ecotourism in Nature Conservation Units and their surroundings and strengthens the Conservation Units as spaces for leisure and socioeconomic development on a sustainable basis. But can governments still act? and should? be even more comprehensive to benefit conservation.

  • Private sector: In this sector, voluntary investment mechanisms are used, such as green bonds or environmental impact bonds, for example. They can also be driven by national or international policy regulations, such as biodiversity offsets and regulated carbon markets, among others.

    In Brazil, by 2021, the private sector has already contributed to the protection of 22.6 million hectares through the 20×20 initiative, a partnership between Latin American countries with the aim of conserving and restoring nature. The initiative's areas of action include avoided deforestation, sustainable agriculture, restoration, reforestation and forestry with native species.

    These data show how important the participation of the private sector is in combating climate change and reducing the global loss of biodiversity. 

  • Philanthropy: Philanthropic capital can fund biodiversity conservation through contributions from private foundations, corporate foundations or institutes, and NGOs. In this sector, seed capital and resource acceleration are strengths.

    In 2020, according to the British newspaper The Guardian, environmental conservation received a record number of donations. Nine organizations came together to support the creation, expansion, management and monitoring of areas of protected and conserved land, inland waters (completely enclosed seas, lakes and rivers, and waters within the baseline territorial sea) and sea. This was the largest private funding commitment ever made to biodiversity conservation. It is expected that these efforts will be replicated in other parts of the world, for the sake of conservation and a more sustainable future.

Each source of funds presents qualities and challenges, but the combination of these sources is capable of generating healthier financial solutions.

Interested and want to know more about these combinations? Download our mapping ?Financial solutions for conservation nature?.


Related publications

Did you like our content?

Assine nossa newsletter e receba mais novidades sobre a Economia de Impacto.

Skip to content