Negotiations on finance at a key UN summit where governments are expected to ramp up ‘insufficient’ nature conservation policies have reached a stalemate, as countries struggle to agree on where new sources of funding for biodiversity will come from. Ahead of the COP17 nature summit taking place in Yerevan, Armenia, a UN assessment report showed that governments are off track to meet nearly all the 2030 targets in the Global Biodiversity Framework (GBF), often referred to as the ‘Paris Agreement for nature’. In Yerevan, talks on increasing financial resources for biodiversity have remained gridlocked by an EU proposal to expand the list of potential government donors, so that emerging economies like China or Gulf states would also be able to contribute funding and have it counted towards a collective goal. But some developing nations have fiercely opposed proposal. The group of Arab countries said at the summit’s opening plenary that it ‘rejects any attempt’ to expand the list of donors or ‘reclassify’ the development status of countries. 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Countries are meeting in Armenia for the first Global Review of Collective Progress – a similar process to the climate Global Stocktake – under which they are expected to adopt a ‘Yerevan Pathway’ outlining ways to ramp up nature conservation policies and get on course to meet global nature goals. Biodiversity finance falling short The UN report on progress shows developed countries most likely failed to meet an interim target to channel $20 billion for nature protection by 2025, which developing countries say is necessary to implement a global target to protect 30% of the world’s land and ocean by 2030. The group of African countries said in a statement at the COP17 opening plenary that the findings of the global review ‘serve as a serious warning’ and ‘underscore the urgent need to strengthen’ the delivery of public finance. Brian O’Donnell from the non-profit Campaign for Nature told a Climate Home News webinar that public funding is key for developing countries – which are home to most of the world’s biodiversity – so that they can develop tools like spatial planning, incentives for local communities, institutional capacity and even simply signage within a protected area. ‘We’re asking a lot from those countries,’ he added. The GBF target also states that public biodiversity finance should be increased to $30bn by 2030, and that in total countries should mobilise $200bn from all possible sources – which includes the private sector and philanthropic funds – by the same date. In 2025, global biodiversity finance is estimated to have reached between $74.9 and $92.4 billion per year. Opening of the COP17 leaders’ summit in Yerevan, Armenia. (Photo: UN Biodiversity) Speaking at the webinar, Steven Guilbeault, a former minister of environment for Canada and one of the architects of the GBF, said he has been hearing the idea of expanding the base of donors to increase available finance since the biodiversity COP1 in 1995, but added it’s not an ‘easy conversation’ that will be solved in Yerevan. ‘I wouldn’t want the progress that we’re seeing here, the progress that we can still make in the coming days, to be jeopardised by the entrenched position on this issue,’ he said. In a letter issued to governments, the Armenian presidency said it aimed to adopt the Global Review text this Wednesday, with two days of negotiations still to go. Observers told Climate Home News that this would be a way of detaching it from the thorniest negotiations on finance. Reducing harmful subsidies as an alternative Linda Krueger, director of biodiversity and infrastructure policy at The Nature Conservancy (TNC), said it is ‘no surprise’ that the finance decisions will require guidance from ministers, but argued that the ‘heavy lift’ to increase financial commitments will need to come from reforming subsidies. When the GBF was adopted, countries identified a finance gap of $700bn a year by 2030. They agreed to address it by mobilising $200bn from all sources, but the bulk of this is due to come by redirecting $500bn in subsidies for activities that harm nature. This goal – contained in Target 18 of the GBF – is where governments have made the least amount of progress, according to the UN progress report. The UN currently estimates that for every dollar invested in nature conservation and restoration, $30 are currently invested in its destruction. A report by Conservation International puts the cost of harmful subsidies at $11 trillion-$24.7 trillion a year, when also accounting for the nature loss they leave behind. In Yerevan, the COP17 presidency has aimed to raise the profile of the target on subsidies by launching several voluntary initiatives, including the ‘Friends of Target 18’, a new platform led by Colombia and Finland which will help countries identify and find ways to redirect damaging subsidies. Early speakers’ list suggests few powerful leaders will attend COP31 A group of over 130 business and financial institutions – among them French bank BNP Paribas, fashion retailer H&M, food giant Nestle and household products multinational Unilever – also issued an open letter calling on countries to accelerate incentive reform. Speaking to the media on Monday, Kumi Kitamori, environment director at the Organisation for Economic Co-operation and Development (OECD), said much of the discussion focuses on winding down nature-negative incentives, but noted ‘it’s also equally about scaling up incentives that are positive’. In the formal negotiations, countries are talking about whether to include a specific mention of this in the Global Review. The COP17 presidency has proposed to include a line encouraging countries ‘to accelerate the identification, and the elimination, phase out or reform of negative incentives’, as well as scaling up positive ones. Jill Hepp, Conservation International’s managing director of nature policy and incentives, said this sends a ‘powerful signal’ that the presidency is prioritising subsidy and incentive reform. She said the new suggested text ‘well reflects the discussions over the last two weeks and the reality that action towards Target 18 in its entirety must be accelerated to keep 2030 goals within reach’. Delegates at the opening plenary of the COP17 biodiversity summit in Yerevan. (Photo: IISD/ENB – Mike Muzurakis) Private contributions awaiting rules Developed countries have pointed to the need for more private-sector contributions that can offset shrinking government aid budgets. At the COP16 biodiversity summit in Cali, countries created a new fund to channel voluntary private-sector contributions based on their use of genetic material to support biodiversity protection. A large part of the fund’s potential relies on the participation of pharmaceutical companies. According to a report by think-tank Zero Carbon Analytics, the top 15 pharma companies could have paid $756 million into the fund in 2025, when taking into account its guidelines suggesting contributions of 1% of profits or 0.1% of revenue. Yet two years since its creation, the Cali Fund has received little more than $10,000 in corporate contributions. In Yerevan, negotiations have focused on how to operationalise the fund and how to distribute the money among developing countries. Guilbeault argued that once the rules are finalised, it will open the door to further contributions, noting that companies ‘need a little bit more security’ about what they’re investing in. ‘Like we saw on climate, when the rules became clearer, more money started flowing through the type of activities we want,’ he said. On the sidelines of COP17, the EU also launched an initiative for ‘Friends of Credits for Nature and Biodiversity’, which provides a platform to support biodiversity credits. Much like carbon markets, these are credits that companies can buy and sell representing ‘nature-positive’ actions that protect biodiversity, but they are a controversial measure disputed by some Indigenous and environmental groups. Campaign for Nature’s O’Donnell argued that, even if private-sector flows increase, public funds will still be required, given that the ‘business case’ for some nature-conservation or restoration projects could be harder to make than for climate measures like renewable energy. Nonetheless, the TNC’s Krueger noted there is a lot of interest among businesses in investing in nature and said the UN biodiversity talks could help ensure they play their part. ‘A lot of businesses have taken it up voluntarily, which is fantastic to see. And so, I think a process of making that a little bit more mandatory, a little bit more implemented, could go a long way to help business and nature be aligned,’ she said. 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