National government planning, budgeting, and disbursement is historically the most important source of finance for nature conservation accounting for at least 60% of conservation expenditures worldwide (Parker et al. 2012). A wide range of actions can improve finance for nature through the public planning and budgeting process as well as through effective disbursement and implementation of annual work plans at public and quasi-public agencies and departments (also see financial efficiency). A useful guide to mainstreaming environment into planning and budgeting has been produced by UNDP-UNEP (2015). The Biodiversity Finance Initiative has identified many opportunities for improving public finance for nature and a useful methodology is provided in the BIOFIN Workbook (UNDP, 2018).
Lobbying for Public Budget Allocations
Lobbying for additional allocations (or retention of current allocations in case of public cuts) towards conservation and biodiversity by line ministries or national, regional and local authorities. This requires a profound understanding of the budgeting process, a strong business case, and awareness raising, advocacy and communication efforts. Lobbying strategies may target both earmarked and non-earmarked resources (e.g. emergency funds, special funds)
Influence the investment budget formulation
Investment projects in biodiversity and green infrastructure can be included in the rolling investment plan of the Government. Inclusion of biodiveristy and sustainable development in medium term or long term strategic plans is essential. Development banks and donors can often increase likelihood of financing by providing targeted co-financing for specific projects.
Enhance Public Budget Execution
Measures promoting quality spending of committed funds and removing related obstacles to effective spending. Effective budget execution (also termed delivery) is a percentage of annual public budget allocations that are actually spent by government agencies and can vary from as low as 40 percent to as high as 90 percent. Related obstacles are often due to delays in financial flows or capacity constraints. Incentives (e.g. staff incentives) and support (i.e. additional capacity) can be provided to increase the delivery. While not specific to biodiversity, these measures can and should be considered by conservation organizations.
Remove barriers for public budget execution-internal
Internal barriers for timely and effective budget execution are often related to financial planning capacity gaps, weak accounting systems, systemic corruption practices, and the absense or poor design or individual performance and incentive systems. These barriers can be addressed through organizational capacity development (people and systems). While not specific to biodiversity, these measures can and should be considered by conservation organizations.
Result based budgeting
Planning and strategic management tool seeking to link budget allocations with anticipated results. The introduction of result based budgeting (RBB) contributes to achieving cost-savings and better defining priorities in the allocation of scarce public or private resources. While considered a best practice world wide, only a few countries fully implement result based budgeting. It can also be referred to as performance based budgeting or outcome-based budgeting. Its introduction in conservation can help to mobilize additional public resources as well as to increase spending effectiveness. Results based budgeting is defined as a budgeting process which revolves around a set of predefined objectives and expected results, which, in turn, justify the resource requirements linked to outputs, and where actual performance is measured using objectively verifiable indicators.
Green procurement
A government, company or other entity establishes and enforces procurement rules that favor or require socially and environmentally responsible products such as efficient lighting, certified paper products, certified palm oil, etc. Large companies and governments can have a significant impact on the market through green procurement.
Enhance local budget execution
Local revenues, budgeting and spending impact biodiversity through managing land use, natural resource exploitation, local protected areas, and financing biodiversity supportive programmes and projects. Guidelines for increasing effectiveness and biodiversity impact of local budgets can enhance impact and direct funds to biodiversity.