Preliminary top-down estimates of the global financial gap for biodiversity range from US$ 100 to US$400 billion annually and detailed bottom-up assessments in participating BIOFIN countries validate this significant financial need and have helped identify finance solutions required to achieve the Aichi Targets and biodiversity related SDGs. In recent decades, biodiversity finance tools and solutions have demonstrated their importance for achieving biodiversity and sustainable development goals. But since countries have not approached the issue of biodiversity finance in a comprehensive manner, the choice and adoption of finance solutions has remained experimental and opportunistic. Improved choice, design and implementation of effective well-tailored finance solutions will strengthen a countries’ chances of achieving national and global biodiversity targets.

The Biodiversity Finance Initiative – BIOFIN – is a global programme that developed, piloted, and is continuously improving a methodology to measure existing biodiversity expenditure levels, assess future financial needs, and design comprehensive plans to use finance tools and solutions that increase financing, effectiveness and efficiency of biodiversity management in 30 countries. BIOFIN’s first phase (2012-2018) enabled full assessments and initial implementation of finance plan elements in target countries. Significant enhancement and scaling up of finance solutions is required in all countries to address the biodiversity finance challenge. BIOFIN’s second phase enables the 30 countries to complete the design and implementation of priority finance solutions and will allow a further 15 countries to undertake the assessments as well as create and implement their biodiversity finance plan. At the central level, knowledge management platforms will be expanded, and additional guidance produced for most valuable finance solutions.

Malawi is participating in the BIOFIN process for the first time.  As a starting point it is important to conduct a  policy and institutional review (PIR) of the biodiversity sector. 

The PIR enables participating countries to analyse current policies, institutions and existing finance mechanisms and tools associated with biodiversity and ecosystem services in order to evaluate their impact and effectiveness and to understand key entry points and opportunities for effecting change.  The first step includes identifying the existing national vision and key trends for biodiversity and sustainable development financing and mapping sectoral interactions with biodiversity and ecosystem services. The PIR includes an inventory of existing financing mechanisms used for biodiversity, key subsidies that affect biodiversity, biodiversity related revenues and all associated laws and regulations. It explores how finance and economics can be used to address the main drivers of biodiversity loss.  The PIR process is used to further clarify relevant stakeholders and their specific mandates, institutional arrangements and capacity related to the National Biodiveristy Strategy and Action Plan (NBSAP) and biodiversity finance. Existing economic valuation studies are reviewed and integrated into the analysis.  Policy recommendations, including possible reforms of harmful subsidies and other incentives that contribute to continued biodiversity loss, can be incorporated in PIR and national planning strategies. Stakeholder engagement is ensured through a consultation workshop in the early stages and a validation workshop at the end to discuss the complete findings and recommendations.