Removing perverse subsidies affecting biodiversity

Description

Identify and wherever possible remove incentives that encourage the loss of biodiversity and the unsustainable, inefficient, and inequitable use of biological resources, taking into consideration social, economic and environmental costs and benefits.

Context

The agricultural sectors are heavily influenced by varying degrees of government intervention, employing measures that have often led to levels of commodity production and the adoption of farming practices that have not been conducive to sustainability, or have discouraged more sustainable practices. The increase in productivity is being achieved in many cases at the cost of degrading natural capital (fertile soil, clean water, natural and semi-natural ecosystems). In addition, the factors behind the decline of biodiversity can be understood by considering the incentives and disincentives facing a country or an individual farmer with regard to sustainable use of genetic resources.

Claim

1. Often those who benefit from conservation do not pay the costs associated with conservation and, similarly, those who generate environmental costs (e.g. pollution) escape responsibility. Alignment of incentives allows those who control the resource to benefit and ensures that those who generate environmental costs will pay.