Conservation faces serious financial challenges. The long-term nature of conservation requires a focus on building reliable and long-term sources of funding. Reliance only on traditional donor funding is risky and can lead to funding gaps. Creating dynamic and nontraditional financing mechanisms linked to markets can contribute to a diversified funding base and play a complementary financing role for conservation activities.
The Innovative Finance Mechanisms Working Group is focused on the development – research and application – of diversified funding models to meet conservation objectives. This WG will review new approaches that seek to value ecosystem services and address sustainable development through community and private sector partnerships. Thus, it will explore pilot opportunities such as mortgage-backed securities, derivatives and effluent credit trading, and wildlife friendly commodity markets to protect threatened landscapes and species, demonstrating how new ideas can contribute to conservation.
The objective of Innovative Finance Mechanisms Working Group is to identify, research, field-test and disseminate information about a range of financing mechanisms which can be applied to achieve conservation outcomes.
Specifically, the activities of the group include: