African Centre for Biodiversity
As governments meet in Cali for COP16,, the challenge of financing biodiversity conservation remains at the forefront of discussions. The Global Biodiversity Framework (GBF), adopted at COP 15, emphasises the need for action on harmful environmental subsidies, especially under Target 18, which calls for eliminating, phasing out, or reforming these subsidies while scaling up positive incentives for the conservation and sustainable use of biodiversity. The goal is to reduce harmful subsidies by USD 500 billion annually by 2030.
Subsidies account for much of the funding that could otherwise be directed toward biodiversity protection. Harmful subsidies amount to over USD 2.6 trillion per year, with 40% going to fossil fuels and 23% to agriculture. These funds dwarf the estimated USD 722 billion to USD 967 billion needed annually for comprehensive biodiversity protection. Alarmingly, actual funding flows for biodiversity range from just USD 124 billion to USD 165 billion a year, leaving a shortfall of more than 83%.
While it seems logical to reorient harmful subsidies to fund environmental protection, the issue is complex. Subsidies vary significantly in their impact, with some benefiting corporate profits while others ensure access to essential goods like energy and food for marginalised groups.
African governments face the dual challenge of addressing environmental harm while managing immense economic pressures. Public spending in Africa often subsidises synthetic fertilisers, pesticides, and hybrid seeds to drive agricultural productivity. These farm input subsidy programmes (FISPs), introduced as part of Africa’s Green Revolution, may boost short-term crop yields but come at a high environmental cost, damaging soil health, biodiversity, and water resources. At the same time, fossil fuel subsidies globally continue to undermine biodiversity goals by encouraging the overuse of natural resources and driving climate change. Reforming these subsidies is essential, but any transition must be fair and equitable, particularly for small-scale farmers and small businesses that rely on these subsidies for survival.
However, Africa’s economic challenges extend beyond subsidies. The continent is caught in a debt trap, with foreign debt repayments draining resources that could
be used for social investment and biodiversity protection. Many African nations are forced into austerity measures as a condition for receiving loans, which further limits their capacity to invest in environmental protection. This debt burden, compounded by the pressure to subsidise corporate extractive activities to generate foreign exchange, reflects deep global inequalities that keep African economies in a subordinate position.
Moreover, illicit financial flows (IFFs), tax evasion, and profit repatriation lead to a significant loss of wealth from Africa, further depleting the continent’s ability to invest in sustainable development. Despite mainstream narratives that Africa is a drain on global resources, the reality is that net wealth extraction from Africa continues year after year. These factors must be addressed to ensure that Africa can fund its own biodiversity and development goals.
To solve these challenges, a holistic approach is needed. First, harmful subsidies to corporate entities must be removed. These funds could be redirected toward environmentally friendly practices, such as agroecology and renewable energy.
Second, consumer subsidies for resource-poor individuals and households must be protected to ensure that marginalised populations retain access to essential goods and services like food and energy. A just transition requires that we prioritise the needs of these groups, ensuring that they are not disproportionately affected by the shift away from harmful practices.
Lastly, addressing Africa’s unjust debt burden is essential for financing biodiversity. Writing off odious debts, restructuring the global financial system, and tackling tax avoidance and IFFs are crucial steps. Reparations for centuries of extraction and exploitation should fund Africa’s sustainable development, not foreign debt repayments.
Ultimately, financing biodiversity requires more than just finding new funding sources—it demands a rethinking of how global economic systems function. By tackling harmful subsidies, restructuring debt, and addressing global inequalities, Africa and the world can take meaningful steps toward a future where biodiversity thrives and economies grow sustainably.
