strategy
Investing in environmental conservation
Synonyms:
Investing in natural capitalMaking biodiversity investments
Context:
Article 11 of the [Convention for Biological Diversity] entitled "Incentive Measures" states: Each Contracting Party shall, as far as possible and as appropriate, adopt economically and socially sound measures that act as incentives for the conservation and sustainable use of components of biological diversity. Implementation:
A scheme in the Netherlands allows Dutch citizens to put their savings or investments into green funds run by commercial banks. The interest on loans from these funds are exempt from tax as long as the money is invested in green projects. Starting in 1998, the funds will be able to invest in a selection of countries outside of The Netherlands. This is because the funds have attracted far more capital than can be invested in green projects within the country. This approach shows how a well-targeted 2% tax subsidy can generate billions of dollars of private finance for biodiversity. Claim:
1. Economic incentives can enable governments and the private sector to support national conservation objectives more efficiently than traditional regulatory approaches.2. The elements now exist that will reverse the trend toward the biotic impoverishment of the world. Novel approaches, new financial mechanisms, and new policies need to be applied at the appropriate level of responsibility to translate the new approaches into a reality of improved human well-being and secure biotic heritage. New partners in conservation need to be found, involving all ministries, departments and private institutions that are directly dependent on biological resources. National parks departments, for example should be joined in habitat management by a wide range of other institutions to represent all interests. Furthermore, other line agencies need to develop the capacity to manage biodiversity of particular relevance to their respective missions.
Broader:
InvestingInvesting ethicallyReinvesting in sustainabilityBalancing resource use and conservationEstablishing environmental investment funds Narrower:
Choosing natural fibresCreating wildlife corridorsUsing debt-for-nature swapsResourcing biodiversity conservationPreempting abusive use of non-renewable resourcesDeveloping criteria and indicators for biodiversity investmentIdentifying constraints on private sector investment in biodiversity conservationIdentifying opportunities for private sector investment in biodiversity conservation Facilitates:
Conserving natural heritageProtecting global environmentCapturing environmental valueConserving global biodiversityInvesting in heritage conservation Facilitated by:
Researching economics of conservationCommitting businesses to sustainabilityPromoting environmental shareholder activismProviding incentives for financial investmentIncreasing primary environmental care by farmersUsing market forces to improve global environmentSwitching from price support to conservation supportIdentifying economic benefits of biological diversityIntegrating environmental considerations into lendingAssessing impacts of trade policy on biodiversity conservationUsing economic incentives to increase environmental performance standards References:
Jansson, AnnMarie, et al: Investing in Natural Capital: the ecological economics approach to sustainabilityPearce, David and Moran, Dominic: The Economic Value of BiodiversityMcNeely Jeffrey A, et al: Economics and Biological Diversity: developing and using economic incentives to conserve biological resourcesAbramovitz, Janet N: Trends in Biodiversity Investments Subjects:
Geography → NatureCommerce → Finance
Commerce → Investment
Environment → Environment
Conservation → Conservation
Type Classification:
D: Detailed strategies Related UN Sustainable Development Goals:
