1. Financial Reporting to the Convention on Biological Diversity GEF Expanded Constituency Workshop Minsk, Belarus, 22-24 September 2015 Secretariat of the Convention on Biological Diversity

2. Outline Why financial reporting? Mandate Financial reporting framework Ongoing support

3. Why Financial Reporting? Key input for biodiversity planning Means to assess progress towards national targets that contribute to global targets Enables global community to fine-tune further action regarding financing for biodiversity (COP XIII)

4. Mandate for Financial Reporting Decision XII/3 – Resource Mobilization Adoption of revised Financial Reporting Framework On-line under https://chm.cbd.int/submit/resourceMobilisation https://chm.cbd.int/submit/resourceMobilisation Access modalities under https://www.cbd.int/doc/notifications/2015/ntf-2015- 067-resourcemobilization-en.pdf https://www.cbd.int/doc/notifications/2015/ntf-2015- 067-resourcemobilization-en.pdf Two ‘rounds’ of reporting – Parties and other Governments to report on baseline and progress until 2015, by 31 December 2015… – …and to report further progress in conjunction with sixth national reports

5. Targets for resource mobilization Decision XII/3 (resource mobilization): adoption of financial targets, under Aichi Target 20 (paragraph 1): Doubling international biodiversity-related funding flows to developing countries and countries with economies in transition by 2015… Inclusion of biodiversity in national priorities or development plans by 2015… Reporting domestic biodiversity expenditures, as well as funding needs, gaps and priorities, by 2015 Preparation of national financial plans for biodiversity by 2015 and assessment and/or evaluation of the values of biodiversity Mobilize domestic financial resources from all sources to reduce the gap between identified needs and available resources at domestic level 11/15/20155

6. 1. International Financial Resource Flows Resources for biodiversityprovided by the reporting country to developing countries and countries with economies in transition ODA – official development assistance (bi/multi-lateral) OOF – other official flows (incl south-south coop.) Other - Private sector, NGOs, foundations, academia, etc.

7. 1. International Financial Resource Flows in the online FRF 11/15/20157

8. International Financial Resource Flows Relevance for the sub-region

9. International Financial Resource Flows Relevance for the sub-region

10. International Financial Resource Flows Relevance for the sub-region OECD Creditor Reporting System and Rio Markers as a source of data and information for: -Reporting domestic biodiversity expenditures (4.2 extra-budgetary) -Identifying donors -Discovering international finance going to sectors related to biodiversity – indicating potential opportunities for mainstreaming

11. Rio Markers: Biodiversity-related aid Source: OECD

12. Rio Markers: Biodiversity-related aid Typical sectoral activities: Water and sanitation Agriculture Forestry Fishing Tourism Typical non-sector specific activities: Environmental policy and administrative management Biosphere and bio-diversity protection Environmental education/ training Environmental research

13. How to access data http://stats.oecd.org/

14. How to access data http://stats.oecd.org/

15. How to access data http://stats.oecd.org/

16. How to access data http://stats.oecd.org/

17. How to access data http://stats.oecd.org/

18. How to access data http://stats.oecd.org/

19. To get more specific information

20. How to access data http://stats.oecd.org/

21. Multilateral assistance: Main sources of national co-finance: – Ministry of finance – Ministry of Foreign affairs and/or – International cooperation bureau Multilateral technical cooperation Multilateral financial institutions Other multilateral institutions

22. United Nations agency, fund or commission (UN) Among 58 entities: United Nations Development Programme United Nations Environment Programme UNESCAP, ECE Food and Agricultural Organisation International Fund for Agricultural Development International Maritime Organization - Technical Co- operation Fund

23. Multilateral financial institutions International Monetary Fund World Bank Group Regional Development Banks

24. Other multilateral institutions Among 83 entities: Global Environment Facility Trust Fund Adaptation Fund CGIAR Fund Commonwealth Foundation

25. Access to data: GEF http://www.thegef.org/gef/gef_projects_funding

26. 1.3 Private sector (International) Focus on multilateral corporations Source of information: – National yellow pages – Chamber of commerce – Ministry of commerce/investment Data collection: – Survey and media scan/monitoring

27. 1.4 Non-governmental organizations (International) Three categories: – International NGO – Developed country-based NGO – Developing country-based NGO Source of information: – Ministry of foreign affairs etc. Data collection: – Survey

28. 1.4 Foundations (International)

30. 1.4 Academia (International) University, college or other teaching institution, research institute or think ‑ tank; e.g.: -International Institute for Environment and Development -International Institute for Sustainable Development -World AgroForestry Centre -WorldFish Centre Data collection: -Survey

31. 2. Inclusion of biodiversity in priorities or plans - Cross-sectoral and sectoral plans - Definition of “inclusion” - Question 8 of 5th National Report guidelines 11/15/201531

32. 3. Assessment and/or evaluation of values in online FRF 11/15/201532  “comprehensive:” project level vs national ecosystem assessments or TEEB studies  Question 8, or Aichi Target 2 under question 10 of 5th National Report guidelines  Plans to conduct valuation studies

33. 4. Domestic Biodiversity Expenditures Annual expenditures on domestic activities (2006-onwards) - Does not include funds sent to other countries - Does include expenditures financed by international sources (OECD CRS database – could be helpful) - Does include funds spent on direct (minimally) and indirect (if possible) biodiversity action - Includes all sources but minimally central government - Does include contribution of collective action of indigenous and local communities if measured and expressed in monetary terms

34. 4. Domestic Biodiversity Expenditures in online FRF 11/15/201534

35. 4.2 Domestic biodiversity expenditures: Sources and categories of flows Recipients of biodiversity related aid, USD million, constant 2011 prices, Source: OECD and UNEP-WCMC $ from international flows- ODA, OOF, other 11/15/201535 Minimum

36. Identifying and assessing biodiversity- related activities Methodological issues Using statistical frameworks and related data collection – Classification of Environmental Protection Activities (CEPA) includes line on biodiversity; used under: United Nations System of Environmental and Economic Accounting (UNSEEA; international statistical standard); Classification of Functions of Government (COFOG); used for global Government Finance Statistics 11/15/201536

37. 4.1 Government budgets

38. 4.1 Government budgets (COFOG)

39. Identifying and assessing biodiversity- related activities Methodological issues (cont.) Identifying ‘indirect’ biodiversity-related activities: biodiversity concepts Quantifying ‘indirect’ biodiversity-related activities: assigning coefficients 11/15/201539

40. Government budgets – state/provincial; local/municipal Unitary versus federal fiscal system Intergovernmental fiscal transfer Data collection: – Intergovernmental reporting – Analysis of sub-national budgetary documents – Survey Extrapolation method that allows country-wide estimations of expenses (Japan): – biodiversity conservation / total of several prefectural governments * total sub-national government budgets 11/15/201540

41. Identifying biodiversity activities Is it being covered by NBSAP?; Is it being undertaken by a known biodiversity institution? Is the primary purpose to sustain and enhance biodiversity objectives? Does it contribute to any one of the objectives of the Convention, or to the Aichi Biodiversity Targets? If uncertain, use professional judgment

42. 4.4 Private/market Government-owned public corporations Public-private partnerships Private businesses in key sectors ‘Market-based’ instruments: – Payment for ecosystem services – Biodiversity offsets – Green markets Data collection: Survey

43. 4.5 NGO, foundations, academia Data collection: – Focus on NBSAP institutions – National survey on additional institutions Sources of data: – National register of NGOs foundations, and academia – National tax register for foundations

44. 4.6 Collective action of indigenous and local communities - Potentially significant domestic contribution - Methodologies still being developed - Draft methodology presented at COP XII - Dialogue workshop Guatemala

45. 5. Funding needs, gaps and priorities Funding needs vs available resources Identified and reported periodically at the national level; Often part of NBSAP process, but may also be undertaken separately Synergize with GEF-7 needs assessment https://www.cbd.int/doc/notifications/2015/ntf-2015-094-gef- fund-en.pdf Not only technical assessments, but also based on stakeholder consensus

46. 5. Funding needs, gaps and priorities GEF-7 needs assessment (as per decision XII/30)

47. Funding needs, gaps and priorities Costing of NBSAP Priority actions from NBSAP Can use numbers in 4.1 to extrapolate 1 minus 2 11/15/201547

48. 6. National financial plans Normally part of NBSAP Actions to implement national resource mobilization strategy; Should coincide with national budgetary cycles and take into account the replenishment cycle of the Global Environment Facility Trust Fund; Must be monitored continuously at the national level. Planned resource availability

49. National financial plans From 3 rd Column question 5 Specify the actual sources 11/15/201549 1 – (2+3)

50. Organization of Financial Reporting National Focal Points: CBD or resource mobilization (may delegate; see guidance at https://www.cbd.int/doc/notifications/2015/ntf-2015-067- resourcemobilization-en.pdf https://www.cbd.int/doc/notifications/2015/ntf-2015-067- resourcemobilization-en.pdf Global: CBD Secretariat

51. Ongoing support Technical expert workshop on identifying, accessing, compiling and aggregating domestic and international biodiversity-related investments and impacts: 5-7 May 2015 – Mexico City, Mexico Objective: to develop voluntary guidance for Parties, with a view to facilitating financial reporting on domestic expenditures and the development of national finance plans Report under https://www.cbd.int/doc/?meeting=RMEM-2015-01 https://www.cbd.int/doc/?meeting=RMEM-2015-01

52. Ongoing Support Dialogue Workshop on Assessment of Collective Action of Indigenous Peoples and Local Communities in Biodiversity Conservation and Resource Mobilization; 11- 13 June 2015 – Panajachel, Guatemala Objective: to further develop methodologies for the assessment of the contribution of indigenous peoples and local communities to biodiversity conservation and sustainable use

53. Ongoing Support Sub- regional workshops on CBD Implementation, Financial Reporting, and Resource Mobilization (with GEF ECWs or stand alone) Webinars on financial reporting

54. Ongoing Work SCBD will use discussions/material from these workshops and other processes to develop options for strengthening systems of information on biodiversity-related international financial resource flows to developing countries, as well as on domestic resource flows, with a view to further increasing transparency and accessibility of information – as requested in COP decision

55. Thank you! National Financial Reports are due before end of 2015 For questions: financialreporting@cbd.int