On October 27, 2024, the side event titled Target 18: Creating the Right Incentives for a Nature-Positive Future took place during the 16th Conference of the Parties to the Convention on Biological Diversity in Cali, Colombia.
Organized by the Global Environment Facility Secretariat (GEF) and co-hosted by the Government of Colombia, the Convention on Biological Diversity, Conservation International, the Gordon and Betty Moore Foundation, the International Conservation Caucus Foundation, The Nature Conservancy, the World Bank, and the World Economic Forum, the event brought together policymakers, stakeholders, and experts to exchange information and provide recommendations on aligning policies to achieve Target 18 of the Kunming-Montreal Global Biodiversity Framework.
Harmful incentives and subsidies exemplify the lack of coherence between sectoral policies and the environmental sector. Figures from 2019 indicate that global annual government expenditures on activities harmful to biodiversity-such as agricultural, forestry, and fisheries subsidies-ranged between US$274 billion and US$542 billion per year, which is two to four times higher than annual capital flows toward biodiversity conservation.
Mr. Barry Gardiner, Member of Parliament for the UK and member of the Parliamentary Conservation Caucus, delivered the keynote address. He highlighted the role of policy incoherence in perpetuating harmful subsidies, stating, “We use nature because it is valuable,” and “We abuse nature because it is free.” He emphasized that policy misalignment results in harmful incentives and criticized GDP as a measure of economic activity rather than human and economic well-being. Noting that governments spend more on harming nature than protecting it, he advocated for investment in inclusive wealth, including infrastructure, human and natural capital, education, and judicial systems. Citing COP 16’s theme, “Peace with Nature,” he concluded, “If you want peace, create justice. If you want justice, live sustainably.”
The event featured a high-level panel with representatives from the IMF, Business for Nature, Conservation International, the World Bank, and Colombia’s former Ministry of Finance, Mr. Carlos Correa. They discussed the role of public financing and policy reforms in transforming the incentive landscape at national and international levels and the need to advance toward transformational change.
Participants engaged in three parallel breakout sessions-two focusing on agriculture and one on fisheries-to explore the reform of environmentally harmful subsidies in diverse countries and contexts. They concluded that trade-offs are the greatest challenge in improving policy coherence, particularly in balancing the social benefits of subsidies with environmental outcomes. They also emphasized the necessity of a whole-of-society approach, involving trust-based coalitions, effective communication platforms, and technical partners.
Additionally, breakout sessions on financing the transition to nature-positive investments were held. One session addressed sources of transition finance, highlighting the importance of understanding and sizing risks, mobilizing incentives, and addressing data gaps, especially for financial institutions. The other session focused on private sector leadership, stressing the alignment of National Biodiversity Strategies and Action Plans with business and subsidy reforms. Participants called for collaboration between farmers and businesses to repurpose subsidies, clarify their impacts on value chains, and support a shift toward a biobased, renewable economy. The overall message encouraged bold thinking, seizing political opportunities, and pragmatic action despite incomplete information.
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