This short note intends to put the financial services sector in context and give new readers a way into the Convention on Biological Diversity.

This issue of the newsletter primarily focuses on the opportunities and challenges of integrating biodiversity into policies and practices in the financial services sector (1). It also touches upon some aspects of conservation finance — a major issue under the Convention (as seen by provisions under articles 20 and 21) (2).

The financial services in COP decisions
The financial services sector has been explicitly mentioned in a number of COP decisions. For instance, in the proposed voluntary guidelines for Parties for review of National Biodiversity Strategies and Action Plans, contained in the Annex to Decision VIII/8 (Implementation of the Convention and its Strategic Plan), Parties “are asked to review whether biodiversity concerns are being effectively integrated into relevant sectors. Integration can be considered in terms of: Other sectors beside the environment, such as (…) finance (…)”. Decision VIII/9 (Implications of the findings of the Millennium Ecosystem Assessment), in its paragraph 15, urges “Parties and other Governments to promote dialogue among different sectors, to mainstream biodiversity, at the regional and national levels including, when appropriate, through the processes of the Convention, to address linkages between the conservation and sustainable use of biodiversity and, amongst others (…) finance (…) in order to contribute to the more effective implementation of the Convention, in particular its Article 6”. Other decisions refer to the financial services sector in the context of Additional financial resources, including Decisions VII/21 and VI/16.

Decision VIII/17, the first decision to focus exclusively on business engagement, in its paragraph 5, also refers explicitly to the financial services sector when it invites “businesses and relevant organizations and partnerships, such as the Finance Initiative of the United Nations Environment Programme, to develop and promote the business case for biodiversity, to develop and promote the wider use of good practice guidelines, benchmarks, certification schemes and reporting guidelines and standards, in particular performance standards in line with the 2010 indicators, to share information on biodiversity status and trends, and to prepare and communicate to the Conference of the Parties any voluntary commitments that will contribute to the 2010 target”.

Activities of the Secretariat
In 2005, the Secretariat organized, with Brazil, the United Kingdom and others, two meetings to explore ideas for engaging business in the implementation of the Convention. A particular focus was given to the financial services sector — the report of the São Paulo meeting contains a summary of discussions and recommendations (3). Further to these meetings and to Decision VIII/17, the Secretariat has been working closely with UNEP FI, and others, in the context of the UNEP FI Biodiversity and Ecosystem Services workstream (see articles contained in this issue) (4).

The Secretariat is interested in hearing from Parties, financial institutions and other organizations with respect to potential activities related to this sector at COP-9. For more information, please contact Nicolas Bertrand, Focal point for business (nicolas.bertrand@cbd.int).

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(1) By COP-9, this newsletter will have covered three economic sectors — tourism, in issue 2(1); the financial services sector, in this issue; and agribusiness, 3(2) — as well as three cross-cutting issues — climate change, 2(2); technology transfer, 2(3); and ABS, 3(1). The Secretariat welcomes contributions on other issues/sectors. Issue 3(3), in particular, will provide an opportunity to examine contributions and suggestions to COP-9 from a range of sectors.
(2) More information on Financial Resources and Mechanism.
(3) Report of the Second Business and the 2010 Biodiversity Challenge Meeting
(4) UNEP FI Biodiversity & Ecosystem Services