Home Environment More Biodiversity for Your Buck: How Economic Instruments Can Aid in Environmental Protection

More Biodiversity for Your Buck: How Economic Instruments Can Aid in Environmental Protection

by Prittle Prattle Team
More Biodiversity for Your Buck: How Economic Instruments Can Aid in Environmental Protection

Biodiversity guides various animals, plants, fungi, and even microbes such as bacteria that make up our natural world. These species and organisms function together in ecosystems to preserve harmony and support life, essentially like an intricate web. It supplies everything we ought to live in nature, including food, clean water, medicine, and shelter.

Every year, ten million hectares of forest are destroyed. Since 1990, live coral has fallen at a rate of around 4% per decade. One million plant and animal species, or one-quarter of all species, are today endangered. The 2011-2020 Strategic Plan for Biodiversity, adopted under the auspices of the Convention on Biological Diversity, has not produced the biodiversity outcomes that many hoped for (CBD). As a result, its loss continues to accelerate, posing severe threats to our economy and future generations’ well-being.

The Convention on Biological Diversity’s 15th Conference of the Parties (Convention on Biological Diversity COP15), where a post-2020 International. Its Framework is anticipated to be agreed upon, is crucial. It’s our chance to reflect on what we’ve learned so far and create a more robust, more successful framework for the coming decade. A framework incorporates concrete activities that governments can take to address biodiversity pressures, such as land and sea-use change, over-exploitation, pollution, climate change, and invasive alien species.

In the post-2020 Global Biodiversity Framework, what role do economic instruments play?

Many issues are being debated and negotiated in the run-up to Convention on Biological Diversity COP15. The importance of economic instruments—or positive incentives—in driving the changes required to prevent and reverse biodiversity loss is one subject that does not receive the attention it deserves. What exactly are these financial instruments? Taxes, fees, and charges related to biodiversity, tradable permits, ecologically motivated subsidies, payments for ecosystem services, and it offsets are among them. These are preferred by environmental economists over more classic command-and-control instruments because they can, in theory, achieve a given environmental goal at a lower total economic cost. They are, in other words, more cost-effective. You’re getting more bang for your cash.

Economic tools raise the cost of activities that harm biodiversity and lower the cost of activities that benefit biodiversity. These tools can be used in almost any industry to combat the primary stresses causing biodiversity and ecosystem service loss. Pesticide taxes in agriculture, fishing and hunting license fees, tradable permits to control groundwater extraction, payments for blue carbon in the ocean, and it offsets are examples of ways to mitigate the adverse effects of development. Financial instruments are essential for mainstreaming it across sectors because they help reflect the genuine value of nature in economic operations.
Are governments addressing the biodiversity crisis with economic instruments?
Yes, yet there is much room to expand their use and ambition. Since roughly 2010: Organisation for Economic Co-operation and Development data on these instruments, more than 120 countries currently contribute, show stagnation in their acceptance (Figure 1). Despite the CBD’s 2011-2020 Aichi Target 3 on positive incentives, which called for their implementation but was not completely implemented, as the Global Biodiversity Outlook 5 highlighted.
According to the data, the ambition of the existing tools has not increased over time. The money collected from biodiversity-related taxes in Organisation for Economic Co-operation and Development countries, for example, is USD 7.7 billion per year and has been consistent for several years. While this is not a small sum, it represents less than 1% of the revenue earned by other environmentally-related taxes. Environmentally related taxes account for only 5% of total tax receipts.
We need to improve economic tools for biodiversity and increase their ambition. This is a necessary component of the post-2020 Global Biodiversity Framework and if we are to bend the biodiversity curve and set our economies on a more sustainable, nature-positive path.

This release is articulated by Prittle Prattle News in the form of an authored article.

Video Courtesy: UVED

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