Understanding Biodiversity Finance Governance
Addressing the complexities of biodiversity finance governance involves understanding the interplay between financial instruments and governance structures and recognizing the political and ethical dimensions. By doing so, financial resources can be used more effectively and equitably to support biodiversity conservation.
In the recent research paper “What do we (not) know about biodiversity finance governance?” Jesper Svensson, Julia Qian Mao, and Nils Droste reviews the current state of knowledge in this field, focusing on three main areas: financial mechanisms, governance structures, and critical perspectives.
Financial Mechanisms
Biodiversity finance involves generating funds and allocating them efficiently. Despite increased investments, there remains a significant funding gap, estimated at around $700 billion annually. Innovative financial instruments, such as biodiversity impact funds and payments for ecosystem services, are being explored to address this gap. However, their effectiveness varies, and further research is needed to identify the best combinations.
Governance Structures
Governance in biodiversity finance includes formal and informal rules, diverse actors, and complex processes. Polycentric governance, which involves multiple centers of decision-making, is essential. Successful examples include sustainable-use protected areas and collaborative management partnerships, which not only conserve biodiversity but also improve local well-being.
Critical Perspectives
Jesper Svensson, Postdoc, Mistra BIOPATH
Biodiversity finance is influenced by political and economic factors. Power dynamics and property rights play a central role in determining who controls and benefits from biodiversity finance. Market-based mechanisms can favour large-scale landholders and exacerbate inequalities. A more inclusive approach that integrates Indigenous knowledge and non-market values is necessary.
"As we argue in the review, biodiversity finance doesn’t operate in a vacuum—it’s embedded in property rights regimes that shape who controls land, who benefits, and whose knowledge counts. If we overlook that, we risk reinforcing the very inequalities conservation aims to address."
“What do we (not) know about biodiversity finance governance?”