Financial Reporting to the

Convention on Biological Diversity

GEF Expanded Constituency WorkshopMinsk, Belarus, 22-24 September 2015

Secretariat of the Convention on Biological Diversity

Outline• Why financial reporting?• Mandate• Financial reporting framework• Ongoing support

Why Financial Reporting?

• Key input for biodiversity planning

• Means to assess progress towards national targets that contribute to global targets

• Enables global community to fine-tune further action regarding financing for biodiversity (COP XIII)

Mandate for Financial ReportingDecision XII/3 – Resource Mobilization

•Adoption of revised Financial Reporting Framework•On-line under https://chm.cbd.int/submit/resourceMobilisation•Access modalities under https://www.cbd.int/doc/notifications/2015/ntf-2015-067-resourcemobilization-en.pdf •Two ‘rounds’ of reporting

– Parties and other Governments to report on baseline and progress until 2015, by 31 December 2015…

– …and to report further progress in conjunction with sixth national reports

Targets for resource mobilizationDecision XII/3 (resource mobilization): adoption of financial targets, under Aichi Target 20 (paragraph 1):• Doubling international biodiversity-related funding flows to developing

countries and countries with economies in transition by 2015…

• Inclusion of biodiversity in national priorities or development plans by 2015…

• Reporting domestic biodiversity expenditures, as well as funding needs, gaps and priorities, by 2015

• Preparation of national financial plans for biodiversity by 2015 and assessment and/or evaluation of the values of biodiversity

• Mobilize domestic financial resources from all sources to reduce the gap between identified needs and available resources at domestic level

04/21/23 5

1. International Financial Resource Flows

Resources for biodiversityprovided by the reporting country to developing countries and countries with economies in transition

ODA – official development assistance (bi/multi-lateral)OOF – other official flows (incl south-south coop.)Other - Private sector,

NGOs, foundations, academia, etc.

1. International Financial Resource Flows in the online FRF

04/21/23 7

International Financial Resource FlowsRelevance for the sub-region

International Financial Resource FlowsRelevance for the sub-region

International Financial Resource FlowsRelevance for the sub-region

OECD Creditor Reporting System and Rio Markers as a source of data and information for:

- Reporting domestic biodiversity expenditures (4.2 extra-budgetary)

- Identifying donors- Discovering international finance going to sectors

related to biodiversity – indicating potential opportunities for mainstreaming

Rio Markers: Biodiversity-related aid

Source: OECD

How to access datahttp://stats.oecd.org/

How to access datahttp://stats.oecd.org/

How to access datahttp://stats.oecd.org/

How to access datahttp://stats.oecd.org/

To get more specific information

How to access datahttp://stats.oecd.org/

Access to data: GEF

http://www.thegef.org/gef/gef_projects_funding

4. Domestic Biodiversity Expenditures

Annual expenditures on domestic activities(2006-onwards)

- Does not include funds sent to other countries- Does include expenditures financed by international sources (OECD CRS database – could be helpful)- Does include funds spent on direct (minimally) and indirect (if possible) biodiversity action- Includes all sources but minimally central government- Does include contribution of collective action of indigenous and local communities if measured and expressed in monetary terms

4. Domestic Biodiversity Expenditures in online FRF

04/21/23 34

4.2 Domestic biodiversity expenditures: Sources and categories of flows

Recipients of biodiversity related aid, USD million, constant 2011 prices, Source: OECD and UNEP-WCMC

$ from international flows- ODA, OOF, other

04/21/23 35

Minimum

Identifying and assessing biodiversity-related activities

Methodological issues•Using statistical frameworks and related data collection– Classification of Environmental Protection Activities

(CEPA) includes line on biodiversity; used under:• United Nations System of Environmental and Economic

Accounting (UNSEEA; international statistical standard);• Classification of Functions of Government (COFOG); used for

global Government Finance Statistics

04/21/23 36

Identifying and assessing biodiversity-related activities

Methodological issues (cont.)•Identifying ‘indirect’ biodiversity-related activities: biodiversity concepts•Quantifying ‘indirect’ biodiversity-related activities: assigning coefficients

04/21/23 39

Government budgets – state/provincial; local/municipal

• Unitary versus federal fiscal system• Intergovernmental fiscal transfer• Data collection:– Intergovernmental reporting– Analysis of sub-national budgetary documents– Survey

• Extrapolation method that allows country-wide estimations of expenses (Japan):– biodiversity conservation / total of several prefectural

governments * total sub-national government budgets

04/21/23 40

Identifying biodiversity activities• Is it being covered by NBSAP?;• Is it being undertaken by a known biodiversity

institution?• Is the primary purpose to sustain and enhance

biodiversity objectives?• Does it contribute to any one of the objectives of

the Convention, or to the Aichi Biodiversity Targets?

• If uncertain, use professional judgment

5. Funding needs, gaps and priorities

Funding needs vs available resources• Identified and reported periodically at the national level;• Often part of NBSAP process, but may also be undertaken

separately• Synergize with GEF-7 needs assessment

https://www.cbd.int/doc/notifications/2015/ntf-2015-094-gef-fund-en.pdf

• Not only technical assessments, but also based on stakeholder consensus

5. Funding needs, gaps and priorities

GEF-7 needs assessment (as per decision XII/30)

Funding needs, gaps and priorities

Costing of NBSAP

Priority actions from NBSAP

Can use numbers in 4.1 to extrapolate

1 minus 2

04/21/23 47

6. National financial plans

• Normally part of NBSAP • Actions to implement national resource

mobilization strategy; • Should coincide with national budgetary cycles

and take into account the replenishment cycle of the Global Environment Facility Trust Fund;

• Must be monitored continuously at the national level.

Planned resource availability

National financial plansFrom 3rd Column question 5 Specify the actual sources

04/21/23 491 – (2+3)

Organization of Financial Reporting

• National Focal Points: CBD or resource mobilization (may delegate; see guidance at https://www.cbd.int/doc/notifications/2015/ntf-2015-067-resourcemobilization-en.pdf

• Global: CBD Secretariat

Ongoing support

• Technical expert workshop on identifying, accessing, compiling and aggregating domestic and international biodiversity-related investments and impacts: 5-7 May 2015 – Mexico City, Mexico

• Objective: to develop voluntary guidance for Parties, with a view to facilitating financial reporting on domestic expenditures and the development of national finance plans

• Report under https://www.cbd.int/doc/?meeting=RMEM-2015-01

Ongoing Support

• Sub- regional workshops on CBD Implementation, Financial Reporting, and Resource Mobilization (with GEF ECWs or stand alone)

• Webinars on financial reporting

Thank you!National Financial Reports are due

before end of 2015

For questions:financialreporting@cbd.int