Biodiversity-friendly business: How does it work?
The business sector is still hardly involved in the development of the new global post-2020 biodiversity framework. Yet, more and more companies are committing to voluntarily consider biodiversity in their supply chains. With the planned EU due diligence directive on human rights and the environment in supply chains and, specifically the planned EU regulation on deforestation-free supply chains new incentives and obligations are emerging for companies.
At the same time, trade in products from wild plants and animals is increasing, for example for the cosmetics and pharmaceutical industries. On the one hand, so-called biotrade - trade in products from wild species - can provide an important backbone for local economies and economic incentives for the conservation of these species. On the other hand, a report by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services IPBES also makes clear that without effective regulation along the supply chain, trade in wild species can also lead to overexploitation and thus to population decline.
This year's in-depth seminar in the series "Nature conservation in development cooperation" therefore focused on economic aspects, incentives and instruments for biodiversity conservation and took a look at private sector perspectives and approaches for biodiversity-friendly supply chains as well as the new regulations.
Using case studies, the participants presented approaches and instruments that can be used to make trade in wild species or their products sustainable and increase local value creation. Here, German development cooperation can contribute to creating the necessary framework conditions. With the Eco.Business-Fund, KfW has presented a financing instrument that helps to promote the establishment of biodiversity-based businesses.
How supply chains of agricultural products can be designed in a biodiversity-friendly way was another focus of the seminar. The current legislative initiatives were presented in the seminar and starting points for German development cooperation along the entire supply chain were discussed. To avoid leakage phenomena, a landscape approach seems both particularly promising and very ambitious. It became clear that all actors at the different levels of a value chain should work together collaboratively to enable a biodiversity-friendly supply chain. Especially small and medium-sized enterprises with direct contact to primary resource suppliers need support and incentives. With special tools, training and advice on establishing multi-stakeholder platforms along supply chains, German development cooperation can help to ensure that the economic use of biodiversity and agricultural products is both conducive to local development and sustainable, and in the best case even provides additional conservation incentives.
The seminar series "Nature Conservation in Development Cooperation" has been offered and conducted annually since 1999 jointly by the International Academy for Nature Conservation Isle of Vilm with GIZ GmbH and KfW Entwicklungsbank. The in-depth seminar offers the opportunity to discuss an emergent topic.