The Biodiversity Finance Initiative (BIOFIN) was launched by the United Nations Development Program (UNDP)in 2012 as a new global partnership to address the challenge of financing biodiversity in a comprehensive way, under the premise that investment in biodiversity is investment in sustainable development. Facing the quadruple humanity crisis (health, economic, biodiversity loss and climate), BIOFIN offers solutions and concrete financial mechanisms towards a greener, more inclusive and resilient economic recovery.
BIOFIN is developed in 40 countries around the world, including Costa Rica, which has been a pioneer and promoter of the initiative since 2012 and is in its second phase of implementation since mid-2018.
BIOFIN process in Costa Rica
How does it work?
BIOFIN offers 6 concrete and innovative Financial Solutions (SF) and a transversal component of Gender Equality Integration , to mobilize resources so that Costa Rica can increase and make more effective and efficient investment in conservation, sustainable use and equitable distribution of the benefits of ecosystems and biodiversity.
Each financial solution is developed under the framework of a Steering Committee led by the Ministry of Finance, the Ministry of Environment and Energy (MINAE), and the Ministry of National Planning and Economic Policy (MIDEPLAN),with technical support from UNDP. From this high-level body, the respective financial solutions are developed with each counterpart, among which the MINAE, SINAC, FONAFIFO, CONAGEBIO, FUNBAM, ICT, MEIC, MAG and MICITT stand out, thus enhancing the institutionalization of these efforts.
Likewise, BIOFIN develops analyzes that allow a better understanding of the challenges and opportunities facing the financing of biodiversity , from the hand of relevant entities in this matter such as the National Council of Environmental Accounts and its secretariat, directed by the Central Bank of Costa Rica, developing tools that make it possible to make visible the importance of natural capital in Costa Rica , public spending linked to biodiversity , the financing gap for biodiversity and concrete examples of how to reduce it based on:
- The generation of new sources of income,
- Improve the effectiveness and efficiencyof existing ones,
- Avoid future costs, and
- Diversify sources of financing
The foregoing by promoting the generation of alliances with the financial sector, the participation of the private sector and the integration of groups of women and indigenous peoples as co-creators of these solutions.
The vision of the second extension of BIOFIN Costa Rica is to promote and deliver financial mechanisms to reduce and contain a growing gap for the financing of biodiversity with at least USD 100 million of resources mobilized / catalyzed. This financial goal is equivalent to a 5-year financial gap estimated at USD 20 million per year. The main diversification of financing sources will include mechanisms that improve the participation of the private / financial sector.
The main objectives and strategic results of this vision are structured as follows: