Department for Environment, Food, and Rural Affairs

The programme will support low and lower-middle income countries to grow their economies in ways that help to protect and restore their natural capital and so drive sustainable economic development. It is designed to provide practical support to governments, businesses, and financial institutions to integrate nature into their economic and financial decision-making, understand and manage nature-related risks, and capitalise on growing opportunities to invest in their natural assets. As such, it will support low and lower-middle income countries to transition to nature positive, net zero economies and so protect the poorest communities. Through an integrated set of activities, the programme will deliver the following outcomes: • Private Sector Disclosure Readiness: private sector actors in low and lower-middle income countries – including financial institutions, businesses, and policy-makers - will have the tools they need to understand and manage nature-related financial risk. In particular, the programme will ensure that key institutions have the tools and capacity to respond to growing demand to disclose nature-related financial risk. • Integrating nature at country level: governmental and regulatory decision-makers in low and lower-middle income countries will have the knowledge, skills and data to design and implement policies and programmes that will help to manage nature-related risks, unlock new nature markets, and rebuild natural capital. • Action Plans for Nature: partner governments will develop clear and comprehensive plans to finance the protection and restoration of nature. These plans will act as platforms to mobilise and guide both public and private financial flows. • Evidence Sharing Mechanisms on Nature: better evidence will be available to, and used by, decision makers in low and lower middle-income countries to guide their work. The programme will help to build the evidence about how to best integrate consideration of the natural environment into economic and financial decision making. It will also help decision-makers in governments and the private sector to access and use that evidence easily by building communities of practice and robust approaches to sharing knowledge and information. The outcomes will support the implementation of the Kunming-Montreal Global Biodiversity Framework (KMGBF), agreed at the Convention on Biological Diversity (CBD) meeting COP15. As protection and restoration of critical ecosystems is also critical to tackling climate change, it will also support the UK goal to keep global temperature rises within 1.5c degrees.

Illegal wildlife trade (IWT) is a widespread and lucrative criminal activity causing major global environmental and social harm. The IWT has been estimated to be worth up to £17 billion a year. Nearly 6,000 different species of fauna and flora are impacted, with almost every country in the world playing a role in the illicit trade. The UK government is committed to tackling illegal trade of wildlife products and is a long-standing leader in efforts to eradicate the IWT. Defra manages the Illegal Wildlife Trade Challenge Fund, which is a competitive grants scheme with the objective of tackling IWT and, in doing so, contributing to sustainable development in developing countries. Projects funded under the Illegal Wildlife Trade Challenge Fund address one, or more, of the following themes: • Developing sustainable livelihoods to benefit people directly affected by IWT, • Strengthening law enforcement, • Ensuring effective legal frameworks, • Reducing demand for IWT products. By 2023 over £51 million has been committed to 157 projects since the Illegal Wildlife Trade Challenge Fund was established in 2013. This page contains information about Rounds 7 onwards. For information about Rounds 1 to 6, please see the IWTCF website -https://iwt.challengefund.org.uk/

The programme supports sustainable economic growth that is both long-lasting and resilient to climate-related stressors. It does this through the integration of natural capital into decision making by governments, the private sector and financial institutions. The inability to value natural capital can undermine long-term growth and critically, the livelihoods of the poorest people dependent on ecosystems for their livelihoods. This programme directly addresses this challenge by (i) investing in data and research on natural capital; (ii) assisting countries to integrate this analysis into government policy making; and (iii) integrating this data and analysis into financial sector decision making.

The Darwin Initiative is the UK’s flagship international challenge fund for biodiversity conversation and poverty reduction, established at the Rio Earth Summit in 1992. The Darwin Initiative is a grant scheme working on projects that aim to slow, halt, or reverse the rates of biodiversity loss and degradation, with associated reductions in multidimensional poverty. To date, the Darwin Initiative has awarded more than £195m to over 1,280 projects in 159 countries to enhance the capability and capacity of national and local stakeholders to deliver biodiversity conservation and multidimensional poverty reduction outcomes in low and middle-income countries. More information at https://www.gov.uk/government/groups/the-darwin-initiative. This page contains information about Rounds 27 onwards. For information about Rounds 1 to 26, please see the Darwin Initiative website -https://www.darwininitiative.org.uk/

Biofin Phase II acts as a global knowledge network and supports lower- and upper- middle income countries to implement Biodiversity Finance Plans and finance solutions to achieve tangible finance results - actions that (1) help reduce or redirect resources causing harm to biodiversity, (2) generate additional resources or (3) enhance the effectiveness of resource use. Defra’s intervention in Biofin Phase II will support ODA eligible countries to accelerate the implementation of the emerging CBD (Convention on Biological Diversity) Framework, and support a green and fair recovery from the Covid-19 pandemic by: 1. Sharing knowledge for biodiversity finance planning via a regional learning/knowledge platform; 2. Global support to repurpose harmful subsidies; 3. The development of a biodiversity expenditure taxonomy to support biodiversity finance planning; 4. Accelerate national implementation via grants for financial innovation and biodiversity plan implementation; and, 5. Financial sector innovation feasibility studies. Biofin's methodology and materials support work at a global and national level to contribute to the achievement of UN’s Sustainable Development Goals (SDGs) focussing on poverty reduction, climate change and gender equality. Through implementing biodiversity finance solutions, money will be able to continue to flow towards biodiversity in future.