Innovative mechanisms for financing biodiversity conservation: experiences from Europe
While threats to biodiversity conservation are increasing due to climate change and the exploitation of land
and natural resources, traditional sources for financing biodiversity protection – largely supported by public
spending and private donations – are becoming increasingly inadequate. In the EU, increased pressures on
public budgets due to spending cuts, slow recovery of the economy and calls to improve the efficiency of
public spending have highlighted the need to mainstream more innovative approaches and mechanisms for
financing biodiversity conservation. In particular, there is a need to leverage further funding from the
different sectors that drive biodiversity loss.
Innovative financing mechanisms, such as payments for ecosystem/environmental services (PES),
mechanisms for biodiversity offsetting (e.g. habitat banking), integration of biodiversity into existing fiscal
instruments and different mechanisms for leveraging private funding, provide an opportunity to help to
bridge the widening gap between financing needs and capacities to address these needs.
This report presents a review of the state-of-play of innovative financing instruments for biodiversity
conservation in the EU,