Bilateral and Multilateral ODA is described as “resource flows to countries and territories on the DAC List of ODA Recipients (developing countries) and to multilateral agencies which are: (a) undertaken by the official sector; (b) with promotion of economic development and welfare as the main objective; (c) at concessional financial terms. In addition to financial flows, technical co-operation is included in aid. Grants, loans and credits for military purposes and transactions that have primarily commercial objectives are excluded. Transfer payments to private individuals (e.g. pensions, reparations or insurance payouts) are in general not counted.” (OECD, accessed November 21th, 2019). In effect, ODA is a means by which countries can support economic development in other countries through financial or technical transfers. Historically ODA has accounted for about 12% of global conservation financial flows (Parker et al. 2012).
Specific global and national data and information on bi-lateral aid for biodiversity can be found on OECD’s page for External Development Finance Statistics. Germany, through its development bank, KfW, is one of the greatest individual contributors of ODA specifically for conservation and have reviewed their investments in biodiversity. Multilateral development banks such as the World Bank and multilateral funds such as the Global Environment Facility (GEF) provide grants and grant like concessionary financing for a wide range of environmental initiatives including conservation.
Increasing Official Development Assistance (ODA)
Increasing ODA flows through better programming and delivery, training on grant preparations or other targeted efforts. Official agencies, including state and local governments, or their executive agencies channel aid to recipient countries with the objective to address environmental challenges. The donor(s) transfers financial resources to awarded programmes and projects directly or indirectly through accredited agencies, private companies, and civil society organizations (NGOs). Although the most common disbursement is grant financing, funding may come in a variety of forms, including concessional loans, guarantees and equity. For the latter modalities in particular, OECD guidelines can be applied to define the type of aid provided.
Aid Coordination Strategies
Aid coordination strategies (and/or institutions) can help to improve and guide strategic proposals as well as deliver resources in a more effective manner. Aid coordination strategies are usually established at national and sector levels (e.g. environment)
Increase in biodiversity related bilateral ODA
ODA may be provided bilaterally, from donor to recipient. Biodiversity may be featured in bilateral donor strategies (e.g. Germany or Norway) but priorities vary greatly and change frequently among donors. Additional allocation usually requires the provision of evidence for results and political lobbying. Priorities can be negotiated both nationally and internationally.
Increase biodiversity component of Climate Aid - Detailed guide entry
Biodiversity related financing within official public assistance provided for climate change mitigation and adaptation. Public climate finance is counted separately from general ODA due to the promise of additionality made by developed countries in climate agreements. Biodiversity may be featured in climate donor strategies more prominently (e.g. Germany or Norway) as clear co-benefits exist with climate adaptation and in many cases with mitigation measures as well. Additional allocations to biodiversity require evidence for climate results out of biodiversity focused interventions (e.g. ecosystem based adaptation) and political lobbying. Climate finance is delivered bilaterally (e.g. German International Climate Initiative-IKI) and multilaterally (e.g. the Green Climate Fund).
Multilateral ODA
Biodiversity related financing in ODA channelled through a multilateral development agency such as the United Nations or the World Bank. Biodiversity may be featured in multilateral donor strategies. Additional allocation requires the provision of evidence for clear results and political lobbying. Priorities are negotiated both nationally and internationally. The Global Environment Facility and the Green Climate Fund are among the largest multilateral providers.
Other Official Flows
Biodiversity related financing from Other Official Flows (OOF) i.e. official sector transactions that do not respect OECD classification criteria as ODA. They can include, for example, loans with a grant element of less than 25 percent. While not specific to biodiversity, OOF financing can be also considered for certain conservation organizations.
Debt-for-Nature Swaps
Through debt restructuring agreements, governments are able to write off a proportion of their foreign held debt. The savings accrued will be channeled into domestic conservation initiatives and climate adaptation programmes. This often entails the establishment of a Conservation Trust Fund to channel the funds. Debt-for-nature swaps can target both official and commercial lending, with the former being the most common scheme.