Financial Reporting to the Convention on Biological Diversity

1. Financial Reporting to the Convention on Biological Diversity GEF Expanded Constituency Workshop Minsk, Belarus, 22-24 September 2015 Secretariat of the Convention on Biological Diversity

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

3. 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)

4. Mandate for Financial Reporting Decision 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 December2015… • …and to reportfurtherprogress in conjunctionwithsixthnationalreports

5. Targets for resource mobilization Decision 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

6. 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.

7. 1. International Financial Resource Flows in the online FRF 2006-2010 baseline Private sector, NGO, Academia, Foundation Including South-south Cooperation

8. International Financial Resource Flows Relevance for the sub-region

9. International Financial Resource Flows Relevance for the sub-region

10. International Financial Resource Flows Relevance 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

11. Rio Markers: Biodiversity-related aid Source: OECD

12. How to access data http://stats.oecd.org/

13. How to access data http://stats.oecd.org/

14. How to access data http://stats.oecd.org/

15. How to access data http://stats.oecd.org/

16. To get more specific information

17. How to access data http://stats.oecd.org/

18. Access to data: GEF http://www.thegef.org/gef/gef_projects_funding

19. 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

20. 4. Domestic Biodiversity Expenditures in online FRF

21. 4.2 Domestic biodiversity expenditures: Sources and categories of flows Minimum $ from international flows- ODA, OOF, other Recipients of biodiversity related aid, USD million, constant 2011 prices, Source: OECD and UNEP-WCMC

22. 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

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

24. 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

25. 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

26. 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

27. 5. Funding needs, gaps and priorities GEF-7 needs assessment (as per decision XII/30)

28. Funding needs, gaps and priorities Can use numbers in 4.1 to extrapolate Costing of NBSAP Priority actions from NBSAP 1 minus 2

29. 6. National financial plans Planned resource availability • 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.

30. National financial plans From 3rd Column question 5 Specify the actual sources 1 – (2+3)

31. Organization of Financial Reporting • National Focal Points: CBD or resource mobilization (may delegate; see guidance athttps://www.cbd.int/doc/notifications/2015/ntf-2015-067-resourcemobilization-en.pdf • Global: CBD Secretariat

32. 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

33. Ongoing Support • Sub- regional workshops on CBD Implementation, Financial Reporting, and Resource Mobilization (with GEF ECWs or stand alone) • Webinars on financial reporting

34. Thank you! National Financial Reports are due before end of 2015 For questions: financialreporting@cbd.int