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Incentives and Subsidies

Aichi Biodiversity Target Three - Incentives and Subsidies – focuses on the need to change the incentives and subsidies that are harmful to biodiversity. It states: By 2020, at the latest, incentives, including subsidies, harmful to biodiversity are eliminated, phased out or reformed in order to minimize or avoid negative impacts, and positive incentives for the conservation and sustainable use of biodiversity are developed and applied, consistent and in harmony with the Convention and other relevant international obligations, taking into account national socio-economic conditions. 

Biodiversity and ecosystems maintain the flow of ecosystem services that are essential for human wellbeing, including economic development. Yet incentives and subsidies often encourage individual and organizational behavior that either fosters biodiversity loss and degradation (often as an unintended consequence of the subsidy), or that promotes the conservation and sustainable use of biodiversity. To achieve Aichi Biodiversity Target Three, countries need to assess the current status of incentives and subsidies; understand the unintended consequences of these to biodiversity; eliminate, phase out or reform incentives and subsidies that are harmful for biodiversity; and, develop and apply incentives and subsidies that safeguard biodiversity. 

Target 3 indicators may include status and trends in: 

  • The number and value of environmentally harmful incentives
  • The number and value of environmentally positive incentive

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