The United Nations Development Programme (UNDP) launched the global initiative “Biodiversity Finance Initiative – BIOFIN” in 2012, with the support of various donors, to address current financial challenges in meeting international commitments under the Convention on Biological Diversity (CBD) and the Aichi Targets, and to propose actions that help channel greater resources toward the conservation and sustainable use of natural capital.
Mexico joined this initiative in 2015, and analyses on regulations and public policy, biodiversity expenditure, and financing needs have since been published. Possible solutions have also been proposed to channel greater public and private resources, integrate sustainability criteria into the productive sectors of the economy, increase awareness of biodiversity’s importance, and highlight the benefits of investing in it.
Financing for biodiversity conservation in Mexico is insufficient and poorly diversified. Historically, conservation resources came mainly from the public sector. BIOFIN Mexico recognizes that the financing gap cannot be closed through the public budget alone. It therefore works to develop innovative financial solutions beyond increasing public expenditure, involving other actors and sectors. The financial and private sectors are increasingly seeking to incorporate and consider biodiversity in their financial portfolios, either as a profitable investment or as an element to be considered in their potential financial and non-financial risks. BIOFIN is taking advantage of the opportunity to engage these sectors and develop financial mechanisms that generate economic benefits as well as social and environmental impacts.
Key results
- Design of the Sustainable Fund, a financial instrument that will channel international, national, public, and private resources at the national level.
- Mobilization of USD 294 from irrigation districts toward Payments for Environmental Services through the matching funds mechanism, conserving 7,300 ha.
- Support for the National Commission of Natural Protected Areas (CONANP) in negotiating with the Ministry of Finance the return of rights-fee revenues, leveraging USD 2 million.
- Creation of the Bioeconomy Acceleration Fund with more than 190 applications, providing financing and technical assistance to 10 projects and ensuring social and biodiversity impacts.
- Development of Financing Solution Plans and implementation of biodiversity financing mechanisms at the subnational level, resulting in strengthened public funds; creation of Green Investment Offices; and promotion of spending efficiency and public policy alignment.
- Recommendations for the financial sector on the most appropriate principles and standards that could be implemented to support regulatory improvements.
- Leveraging additional resources from international cooperation agencies, international financial institutions, civil society organizations, and subnational governments.
TW: @UNDPbiofin
Read more about the project:
2022
- Cafecol
- Financing solutions workshop between BIOFIN and SMAOT of Guanajuato
- Second call of the Bioeconomy Acceleration Fund (FAB)
2021
- Fostering networks between the financial sector and the Convention on Biological Diversity (CBD) in Mexico
- Mexico begins dialogue with the central bank on greening the financial sector.
- Bioeconomy Acceleration Fund (FAB)
2020
2019
- The financial sector as a strategic actor in the bioeconomy strategy
- “Investing in Biodiversity” panel
- Bioeconomy Collective: an opportunity in Mexico to increase private sector participation in nature-based solutions
- “Echoes of the Earth: Economy and Ecosystems” exhibition
2018