Climate change and biodiversity: the inextricable link

The role of funding to unlock change

Proper funding, both for climate adaptation, loss and damage and for biodiversity conservation is required. At COP16 countries were asked to submit updated their national biodiversity plans (NBSAPs). By the time COP16 started only 44 countries (mostly developed economies) had submitted updated plans, but an additional 119 countries had submitted updated national targets aligned with the Global Biodiversity Framework. This clearly demonstrates willingness to implement the Global Biodiversity Framework, but developing countries will need support to fully produce national biodiversity plans (NBSAPs).

Adequate funding is essential to protect biodiversity help communities adapt, and to fund the losses and damages that people suffer as a result of biodiversity loss and climate change. Yet there’s a staggering funding gap for biodiversity ($700 billion annually), and millions if not trillions of unmet climate needs. COP16 pressed wealthier nations to commit resources, that aimed to mobilise at least $20 billion each year by 2025. As most of the world’s biodiversity lies in developing countries, they require the lion’s share of the support. Yet developed countries’ pledges at COP16 fell far short of what is needed. Importantly this funding is more than a number—it’s a lifeline for frontline communities, especially Indigenous and local groups, giving them the resources they need to protect lands, waters, and ecosystems on their terms. Empowering these communities recognises their critical role in safeguarding biodiversity and strengthens their contributions to a resilient planet.

Adequate funding will also be on the agenda at COP29 in Baku. The New Collective Quantified Goal (NCQG) will be negotiated to set a new target for global climate finance, replacing the previous $100Bn that was agreed in 2009. This new target will need to factor in the scale of the growing challenge, and needs to include funding for mitigation, adaptation, and to address loss and damage.

To unlock funds from the governments, donors, and the private sector we all need to:

• Recognise that this is an emergency and act accordingly. When the Covid pandemic struck the global community mobilised billions in funding we need the similar scale of urgency to tackle the interlinked climate and biodiversity crises.
• Get the money flowing to ensure it gets to where it’s needed, fast. The best way to do this is by providing budget support to countries combined with direct access for communities.
• Facilitate cooperation and make a start. Start by recognising what is urgent and where there is untapped capacity. Funding local community groups and local civil society action can deliver direct impact in a cost-effective way.
• Stop viewing this as charity but instead, seeing it as a shared investment in a better future for people and planet. For every dollar invested, returns will be significant.

Putting people and nature first: Practical Action’s commitment

We must also recognise the crucial role that local communities and Indigenous People play as custodians of their environment and their contribution to safeguarding our planet. We also need to enable them to make choices and give them the proper funding and support to do this. The critical role that Indigenous Peoples and local communities and the part they play in biodiversity protection was recognised at COP16. This resulted in a new work programme being adopted and a permanent body created for Indigenous peoples to consult on United Nations decisions about nature conservation.

Proven solutions, led by Indigenous and local communities worldwide, show us that big change can start small. From pilot projects that have delivered measurable benefits, we know the path forward exists. However, to expand these successes, countries must move beyond promises and ensure that resources reach the local level to fuel implementation at scale.

Our collaborative approach

At Practical Action, we believe in solutions grounded in the wellbeing of both people and the planet. Our work connects healthy ecosystems with resilient communities, addressing the root causes of biodiversity loss while supporting sustainable local livelihoods. Beyond advocacy, we implement practical solutions that reduce poverty and elevate Indigenous and local knowledge, empowering communities to lead efforts to protect and conserve biodiversity and address climate impacts.

Our approach involves bringing all players together—from governments to communities on the frontlines, whose leadership and insights are important ingredients but whose action is essential to achieving meaningful results. Practical Action’s commitment to collaboration and mutual respect creates pathways for shared understanding and real progress.

By connecting key actors—such as Indigenous organisations, smallholder farmers, governments, and the private sector—we promote sustainable and economically viable practices that open pathways that empower communities to build a sustainable future. If it works for them financially and is harmonious with their existing practices informed by culture and beliefs it will lead to the systemic changes necessary for impact at scale.

Learn more about our Biodiversity Landscape Fund Andes Amazon project: BLF – Biodiverse Landscapes Fund Andes Amazon.

The road ahead

The UN global goals aim to provide common shared objectives to secure healthy and vibrant people and planet. The global goals provide the north star to which individual actions can be aligned and be implemented in collaboration with local communities, Indigenous peoples, and other key stakeholders, recognising their governance structures and rights. Conservation and climate adaptation cannot succeed without prioritising the needs and perspectives of Indigenous peoples and local communities, and this must translate into actions that promote their leadership and direct access to funding.

UN CBD COP16 and UNFCCC COP29 are key steps on the road to COP30; the UN climate conference to be held in Belém do Pará, Brazil, next year. This is an opportunity to align commitments into tangible results that bridge the two COPs. This requires strategic alliances to drive global collaboration that enables sustainable practices and increases financing for communities. This will allow them to strengthen their resilience to the challenges of conservation, development, and climate change.

Achieving this will not be easy. Significant challenges such as continued deforestation, expansion of industrial farming, and new investments in fossil fuel exploration are all driven by harmful economic subsidies. Only through strong alliances and informed collective action, can we protect the environment and build a resilient, prosperous future for all—creating a lasting impact for future generations and the planet.