CALI, COLOMBIA, OCTOBER 23, 2024- Within the framework of the 2024 United Nations Conference on Biodiversity (COP16), the Global Green Growth Institute (GGGI) organized the high-level forum “Biofinances: Financial Solutions for Nature Conservation” to highlight the need to expand financial mechanisms and tools in the Latin America and Caribbean (LAC) region to conserve its valuable biodiversity. This event brought together ministers, investors, and experts in biodiversity, sustainability, and nature-based solutions from Colombia, the Dominican Republic, Peru, Ecuador, Paraguay, and Mexico, as well as representatives of international cooperation from the United States, the United Kingdom, and Switzerland.

Latin America and the Caribbean is home to 40% of the planet’s biodiversity (CAF, 2018), making the region a key pillar for the conservation of life on Earth. However, it faces an alarming crisis: the accelerated loss of species driven by deforestation, the unsustainable exploitation of resources, and climate change. In this context, COP16 presents a crucial opportunity to address this challenge, as biodiversity conservation in the region has become a matter of utmost urgency.

The message is clear: solutions cannot wait, and biofinances play a central role in shaping a sustainable future for Latin America and the Caribbean.

“The planet is facing unprecedented environmental challenges. That is why biodiversity conservation has become a global priority. It affects populations, communities, and cultures, and its continued degradation threatens our common future,” emphasized the Chair of the Council of GGGI and 8th Secretary-General of the United Nations, Ban Ki-moon, during the opening speech of the event. He highlighted, “We need more efforts for conservation. While public funding is very useful, it is clearly not enough. We must access private resources to sustain biodiversity.”

Experiences in Biofinancing in the Region

Biofinances are playing a transformative role in the fight against climate change. This innovative financial approach channels investments into projects that protect and restore nature, incorporating the value of ecosystems into the global economy. From the preservation of tropical forests to the restoration of wetlands, biofinances offer a sustainable alternative to curb the deterioration of natural capital and promote economic development that respects the environment.

During the forum, key topics were addressed, such as the distribution of benefits from REDD+ mechanisms, the role of the financial sector in biodiversity conservation, and the use of financing tools like green bonds and loans. Additionally, experiences related to bioeconomy, national adaptation plans, and agrobiodiversity were shared, functioning as parallel actions to protect biological diversity.

Furthermore, the importance of inclusivity in financial solutions for conservation was emphasized. In this regard, Tatiana Escovar, GGGI representative for the Andean region, highlighted: “These efforts demonstrate that it is not just about mobilizing resources but doing so inclusively and fairly. Funds must reach the territories and local communities, especially farmers, indigenous peoples, and rural women. Integrating gender approaches and participatory governance is key to ensuring the long-term sustainability of solutions.”

The event saw the participation of nearly a thousand attendees, both in person and virtually, who witnessed experiences and proposals related to mobilizing financial resources for biodiversity conservation.

Green Growth Ambassadors

At the end of the event, the second edition of the “Green Growth Ambassadors 2024” awards was presented. This award seeks to highlight the commitment and leadership of governments that promote green growth at the national and regional levels, particularly recognizing Lilian Portillo, Director of Strategic Planning at MADES in Paraguay, and Fernando López Molina, Chairman of the Board of CONAFIPS in Ecuador. Also recognized were Mario Alejandro Valencia, Deputy Director General of National Prospective and Development at DNP in Colombia; Carolina Jaramillo, Regional Director of Climate Projects in LATAM at South Pole in Colombia; José Yunis, General Coordinator of Vision Amazonía; and Mabel Paola González Pacheco, from UNEP FI in Switzerland. These awards were crafted by Colombian artisan masters using traditional techniques from the Nariño region, featuring figurines symbolizing Colombian biodiversity.

The high-level forum “Biofinances: Financial Solutions for Nature Conservation” took place at the Intercontinental Hotel in Cali, Colombia, as part of the Global Green Growth Week 2024, which is held annually at GGGI’s headquarters in Seoul, South Korea, and also within the framework of COP16.

Note to the Editor

“Biofinances: Financial Solutions for Nature Conservation” featured the participation of over twenty speakers, including high-level government representatives, investors, and experts from six Latin American countries. During the event, they not only shared their experiences regarding conservation but also proposed innovative ideas to facilitate the mobilization of funding directed toward biodiversity protection. Below, we share some of the most notable quotes from the speakers:

“The new government program includes the strategy called -Plan for Economic Development Compatible with Climate Change- which recognizes the need to limit the damage from greenhouse gases. It is important to remember that the Dominican Republic is an island nation and is prone to the effects of climate change. Therefore, the government, aware of this need, has created a comprehensive mechanism to adapt to and mitigate these issues… adapting to what is coming is important.”

Ana Pimentel, Deputy Minister of Climate Change and Sustainability, Ministry of Environment and Natural Resources, Dominican Republic.

“It is necessary to strengthen the coordination of the actors involved in the biodiversity credit process. It is not just about drafting a regulation and approving it. It involves activating participation mechanisms. It is not only a matter for the Ministry of Environment; it involves other ministries, local governments, and primarily the populations. We must learn from the lessons of carbon markets. We have made progress with voluntary carbon mechanisms, and now we need to advance with the mandatory system mechanism. The establishment of clear rules is important. The regulation must be consistent and appropriate to the reality of each of our countries; it should encourage investments but also safeguard the conservation of biodiversity, which is the goal of many of these financial mechanisms.”

Raquel Soto Torres, Deputy Minister of Strategic Development of Natural Resources, Ministry of Environment, Peru.

“There are many enabling mechanisms in Colombian legislation at both the micro and macro levels. We have issued four green bonds to date. There are fiscal mechanisms that allow companies to allocate green investments without affecting their cash flow. We have the carbon market and emissions trading, as well as the collection of the carbon tax created in 2016, which aims to combat climate change. On the micro level, there is the institutional offer of loans to micro, small, and medium-sized enterprises that allocate financing to bioeconomy and circular economy initiatives.”

Lorenzo Castillo Barvo, Deputy Minister of Business Development, Ministry of Knowledge, Innovation, and Productivity, Colombia.

“It is particularly important to promote bioeconomy alongside knowledge and innovation. With the Colombia Viva program, we identify the strengths in the territory that have both scientific knowledge and ancestral wisdom components. Through this, we identify bioproducts that can potentially constitute a source of integral development for communities. One of our pillars is the democratization of knowledge, through which we seek to approach the territories not as a laboratory, but as a key piece in the country’s transformation process.”

Ana Lucía Caicedo, Deputy Minister of Knowledge, Innovation, and Productivity, Ministry of Commerce, Industry, and Tourism, Colombia.

You can access the full event at this link.