Syllabus: 

GS 3: Conservation, environmental pollution and degradation, environmental impact assessment.

Context: 

A new report, published ahead of Unitec Nations Ocean Conference 3 (UNOC3), reveals that the world needs to invest $15.8 but it is receiving only $1.2 billion.

More on the News:

• These findings are published in the report “The Ocean Protection Gap: Assessing Progress toward the 30x30 Target”.
• This report is prepared by a group of NGOs and funders.
• The report has been released ahead of the United Nations Ocean Conference 3 (UNOC3), which will take place in France from June 9 to 13.
• According to the report, the world needs to invest $15.8 billion annually to achieve the 30x30 target of protecting 30 per cent of the global oceans by 2030.
• This amount is equal to about 0.5% of the world’s yearly defence spending.
• However, the current annual spending on ocean protection is only $1.2 billion, leaving a significant funding gap of $14.6 billion. 
• As of June 2, the World Database on Protected Areas (WDPA) reports that only 8.6% of the ocean is officially protected. 
• However, just 2.7% is effectively protected which means only a small portion of the ocean is actively managed with rules to prevent harmful activities, according to the “Ocean Protection Gap” report.

Financial Needs According to the Report

• To properly manage Marine Protected Areas (MPAs) and Other Effective Area-Based Conservation Measures (OECMs), countries need long-term and reliable funding sources. 
• Setting up MPAs costs relatively little about $0.6 billion per year but most of the funding, around $15.2 billion annually, is required for ongoing management. 
• The report also noted that developing countries need $4.2 billion each year, which is just one-fourth of the total annual funding required.
• Investing $15.8 billion each year to establish MPAs and OECMs could generate up to $85 billion in annual returns by 2050. 
• According to the report, protecting 30% of the oceans can bring in revenue by helping fish populations recover, preserving wetlands and preventing economic losses from carbon emissions by maintaining healthy seagrass ecosystems.
• The 30x30 goal can boost tourism income, create jobs, increase local demand and support related industries.

Current Funding Mechanism

The lion’s share (about 90%) of the funding comes from public sources, with 78% of that spent within the country itself.

The second biggest source of funding is Official Development Assistance (ODA), which provides 12% of the total ocean conservation money. The remaining funds come from philanthropy and private finance; the report highlighted.

• ODA is government aid aimed at supporting the economic development and welfare of developing countries.

The report urged developed countries to offer at least $20 billion annually by 2025 and $30 billion annually by 2030, in international biodiversity funding to support developing nations.

The report also noted that Norway and Sweden have so far contributed their fair share toward this goal, while 23 out of the 28 countries reviewed have paid less than half of what they owe.

The report identified six possible ways to help countries close the funding gap

• cutting harmful fishing subsidies, 
• adding a tax on fossil fuel extraction, 
• introducing tourism taxes, 
• issuing sovereign blue bonds, 
• doing debt-for-nature swaps,
• using adaptation finance as grants or low-interest loans. 

Together, these could generate $6 billion to $18 billion every year.

‘Blue bonds’ are debt instruments issued by governments, development banks or others to raise money from impact investors. 

The funds are used to support marine and ocean projects that bring environmental, economic and climate benefits.

A debt-for-nature swap lets countries restructure their debts by agreeing to use the saved money for conservation efforts instead.

The report said private finance will likely have a small role in closing the funding gap in the near future, but private investors could become more important after 2030.

Mains Practice Question

Discuss the current challenges and potential solutions for financing ocean conservation to achieve the 30x30 target by 2030.