New attempt made by countries to reach $200 billion nature finance agreement

This week, countries will gather in Rome to try again to figure out how to raise $200 billion per year to preserve biodiversity around the world. It's a chance to give global cooperation a boost as the United States pulls back.

Donald Trump's moves to cut development funding since his January inauguration have cast a cloud over discussions and put pressure on participants, despite the fact that the world's largest economy wasn’t a signatory of the efforts.

Last October, after striking a landmark agreement in 2022 - the Kunming Montreal Global Biodiversity Framework to stop nature losses by 2030 – countries met in Cali, Colombia to discuss how to pay for the deal.

Negotiators were unable to reach an agreement on the other parties who should pay, or how the funds should be managed.

WWF, a non-profit organization, has stated that the need for action is urgent, as vertebrate wildlife population has decreased 73% since 1970.

How to make richer countries pay to help their less wealthy peers is a difficult question to answer, especially when the willingness to offer grants or low interest loans has declined amid a cost of living crisis.

Cali's gavel was dropped with only $163 million pledged. This is a far cry away from the $30 billion per year that had been hoped for by the end the decade. Rome is not likely to see major public finance pledges, but observers are looking for more transparency on who pays what and how much.

It is possible that the talks in Rome on February 25-27 could collapse. This would hinder Brazil's efforts to integrate nature in efforts to combat climate change, when the country hosts the next round in the Brazilian city Belem.

The United States may not be a signatory to the U.N. Convention on Biological Diversity but the recent changes in policy could reduce the willingness of other countries to support policies that promote nature.

Oscar Soria is the co-CEO and founder of The Common Initiative a think tank that focuses on global economic policy and environmental issues. He said that countries must rise above political tensions, and that funding for biodiversity has been neglected too long.

He said: "This could be an historic moment if they choose to aim high." "The question is if they will fight like gladiators for the future or let this chance slip away."

NEW SOURCES OF FUNDING

Rich countries, including those in Europe, want middle-income nations such as the Gulf States to pay more.

Due to the unwillingness to provide money in the form grants, there is increasing pressure to find other funding sources, such as through the lending of development banks, domestic resources, and the private sector.

In parallel, the countries will discuss how they can divert $500 billion per year, which is estimated to be spent on subsidies, and other incentives, that are used to fund projects that harm the environment, into activities that promote nature.

The nations must decide how to house any funds raised. A new fund could be created, or countries can use an existing one, like the Global Biodiversity Framework Fund run by the Global Environment Facility.

While Europe is content to let the GEF manage any money, other countries such as the Democratic Republic of Congo and Brazil have called for a new system where they would have more control.

There are less likely to be businesses at the conference this week, as there will be no side events. Cali Fund is expected to officially launch, although it's unclear whether the first financial commitments are announced. (Editing by Simon Jessop & Susan Fenton).

(source: Reuters)