Innovative financing mechanisms for biodiversity in small island states

Abstract

Biodiversity provides a large number of goods and services, which are essential pillars supporting human existence, as well as economic growth. The increased and indiscriminate use of biodiversity is one of the main drivers of biodiversity loss and of the negative impacts on ecosystem services, whilst having a knock-on effect on the economies relying on these services. Consequently, conservation measures and actions are implemented to ensure the overall conservation of biodiversity and the maintenance of ecosystem services. It is also a recognised fact that small island States are regarded as repositories for high species richness and endemism, fundamental for the survival and livelihood of indigenous communities inhabiting them. The contribution of islands to the world's biological heritage is far greater than their land mass or population size. Therefore, it is of unequivocal importance to ensure that the right conservation regimes are spearheaded in order to sustain the provision of these goods and services, through the effective implementation of environmental policy. It is also proven that conservation measures need to secure adequate funding in order for them to be successful. In this regard, it is noted that the amount of funds allocated for this cause does not complement the actual costs of conservation, mainly due to national political and economic scenarios and the limitations in knowledge on biodiversity. Recent economic conditions have led to significant effects on the budgets of numerous countries worldwide, leading to further limitation of funds available for conservation of biodiversity. Consequently, innovative financial mechanisms (IFMs) have been considered as an adequate measure to improve the financial capacity of conservation through the generation of supplementary funding and thus bridging the financial gap present between the costs of conservation and the actual funding being dedicated to attain the conservation goals. This study seeks to assess how IFMs have been implemented in different countries, taking note of the context and the preconditions needed for the correct applicability and successful implementation of such IFMs in small island States. This was carried out by means of a questionnaire and supported through a review of the literature on the topic. It was concluded that the inadequate allocation of funding resources is a major global challenge when considering efforts towards the conservation of biodiversity. Moreover, through this analysis it was concluded that small island States have fostered the concept of IFMs and are successfully implementing various categories of such mechanisms, and this according to their requisites, taking into consideration their national characteristics, while exploiting their capabilities to sustain conservation efforts.