The Biodiversity Finance Initiative (BIOFIN) makes use of three detailed country-level assessments to develop a biodiversity finance plan, drawing on qualitative and quantitative data, innovative methodologies, and global and national expert input. It aims to develop a methodology for quantifying the biodiversity finance gap at the national level, for improving cost-effectiveness through mainstreaming of biodiversity into national development and sectoral planning, and for developing comprehensive national finance plans. BIOFIN will thus provide a framework for undertaking “bottom-up” analyses and resource mobilization strategies, embedded in a transformative process led by national stakeholders, aimed at allowing countries to implement their National Biodiversity Strategy and Action Plans (NBSAPs) and achieve national biodiversity targets. BIOFIN will feed into the development of NBSAPs, while the NBSAP projects in turn will provide a platform for integration into decision-making processes.

The BIOFIN methodology includes the following five technical steps:

The Biodiversity Finance Policy and Institutional Review (PIR) – Analyses the policy and institutional context for biodiversity finance in the country, to establish the baseline for the BIOFIN Process. This analysis examines the relationship between the state of nature and a country’s fiscal, economic, legal, policy, and institutional framework.

The Biodiversity Expenditure Review (BER) – Uses detailed data on public, private, and civil society budgets, allocations and expenditures to inform and promote improved biodiversity policies, financing, and outcomes.

The Financial Needs Assessment (FNA) – Makes a comprehensive estimate of the financial resources needed to achieve the national and subnational biodiversity targets articulated in national biodiversity plans and other key national planning instruments. The assessment clarifies the “costable actions” in these instruments and links them to biodiversity results; generates budgetary data that can be used to advocate for biodiversity investments; helps prioritize biodiversity strategies and actions based on biodiversity and cost criteria; and estimates unmet biodiversity financing needs.

The Biodiversity Finance Plan (BFP) – Is the guiding document for implementing the most optimal finance solutions to reach national biodiversity targets. It uses the evidence gathered throughout the entire BIOFIN Process to prioritize the most feasible and impactful finance solutions. The plan is a national document engaging the public sector, private sector, and civil society.

Implementing Finance Solutions – Guides countries on how to continue the BIOFIN Process once the Finance Plan concludes.  

During the BIOFIN phases I and II, five priority finance solutions have been piloted:

1. Improving state budget justification capacity at the Ministry of Environmental Protection and Agriculture (MEPA).
2. Improving Environmental Impact Assessment (EIA) quality, expertise and effectiveness.
3. Improving ecotourism offerings in state forest areas.
4. Building country capacity for fundraising for priority nature conservation and management objectives.
5. Reviewing and updating existing fees and quota systems for the use of natural resources.

During extended BIOFIN phase II, the following priority finance solutions will be piloted:

• Measuring and addressing potential adverse impacts on biodiversity from agricultural subsidies
• Develop cost-effective and sustainable timber management to increase the National Forest Agency resources and finance forest conservation.
• Support post-COVID financial recovery in rural areas of Georgia through sustainable use of Non-Timber Forest Products (NTFPs).
• Support the new post-2020 National Biodiversity Strategy and Action Plan (NBSAP) through updating the Finance Needs Assessment and Biodiversity Finance Plan.