2014-2020 Multi-annual Financial Framework and Biodiversity Financing Laure Ledoux, Biodiversity Unit, DG ENV 11th Meeting of the Co-ordination Group for Biodiversity and Nature (CGBN), 15 November, Brussels.

Outline 1. EU Biodiversity Strategy to 2020 and financing needs 2. Biodiversity financing in the MFF June Communication 3. The 2014-2020 MFF and the Common Strategic Framework

1. Financing issues in the EU biodiversity strategy to 2020 Achieving objectives will depend on availability and efficient use of financial resources: Ensure a better uptake and distribution of existing funds for biodiversity Rationalise available resources and maximise co-benefits of various funding sources Diversify and scale up sources of financing (public and private sectors) Role of market-based and innovative financing instruments Payments for ecosystem services (PES): Green Infrastructure, including possibility of Public Private Partnerships (PPP) Future no net loss initiative (possibility of biodiversity offsets, habitats banking) Two funding requirements stand out in particular: Adequate financing for Natura 2000 global biodiversity – discussions under the CBD Substantially increase resources (financial, human and technical) from all sources, including innovative financial mechanisms

1. Financing needs in the Biodiversity Strategy: 6 targets 2050 Vision 2020 headline target 6 Targets: 1 Enhance implementation of nature legislation 2 Restore ecosystems est. Green Infrastructure 3 Sustainable Agriculture & Forestry 4 Sustainable Fisheries 5 Combat Alien Invasive Species 6 Contribute to averting global biodiversity loss ACTIONS

2. Biodiversity financing in ‘A Budget for Europe 2020’ Mainstream biodiversity throughout the EU budget, both within the EU via the main funding instruments (cohesion, agriculture, maritime and fisheries, research and innovation) and through external action funding Maximise synergies with climate finance through funding ecosystem-based adaptation and mitigation projects that also provide wider ecosystem services, both within the EU and externally Natura 2000 financing strategy: strengthened integrated approach using the various EU sectoral funds, ensuring consistency with the priorities of the Natura 2000 action frameworks, and an enhanced LIFE Biodiversity strand. Resource mobilisation for global biodiversity: geographic and regional allocations of the EU's external action programmes, and thematic programme for global public goods. Implemention: clearly established benchmarks, monitoring and reporting rules for all relevant EU policy instruments, with appropriate indicators. tracking procedure for environment-related expenditure similar to that proposed for climate-related expenditure is envisaged (biodiversity: rio markers) Financing the EU Biodiversity Strategy to 2020 requires mainstreaming biodiversity throughout the EU budget, both within the EU via the main funding instruments and through external action funding. To increase the efficiency of EU spending, it is also important to maximise synergies with climate finance through funding ecosystem-based adaptation and mitigation projects that also provide wider ecosystem services, both within the EU and externally. The effective management and restoration of Natura 2000 protected areas is central to the attainment of the Europe 2020 target of halting and reversing the decline of biodiversity in the EU set by the European Council in 2010. At EU level, a strengthened integrated approach using the various EU sectoral funds, ensuring their consistency with the priorities of the Natura 2000 action frameworks, together with an enhanced LIFE Biodiversity strand, will provide a strong basis for the new Natura 2000 financing strategy. Externally, the EU committed itself, along with other participating parties, at the 10th meeting of the Conference of the Parties to the Convention on Biological Diversity (CBD COP10) in October 2010 in Nagoya, to increasing substantially the mobilisation of financial resources for global biodiversity by 2020. Funding from the EU budget will be provided through the geographic and regional allocations of the EU's external action programmes as well as through the thematic programme for global public goods. In addition to mainstreaming biodiversity into the external action budget, the Commission is also proposing the creation of a mechanism/fund outside the budget to pool together contributions from the Member States and the EU budget. Mainstreaming Mainstreaming will be delivered via the structures and instruments described elsewhere in the sectoral policy fiches. In order to ensure the delivery of results, there will be clearly established benchmarks, monitoring and reporting rules for all relevant EU policy instruments, with appropriate indicators. To maximise synergies between different policy objectives, a tracking procedure for environment-related expenditure similar to that proposed for climate-related expenditure is envisaged. As regards biodiversity, the 'Rio markers' established by the OECD and already used by the Commission for external instruments will be integrated in the existing methodology for measuring performance used for EU programmes. They will also help to demonstrate the co-benefits of climate and biodiversity expenditures, and to highlight the biodiversity co-benefits of climate spending on REDD+ (Reducing Emissions from Deforestation and Forest Degradation) actions.

3. The 2014-2020 MFF A common strategic framework for all structural funds (ERDF, ESF, CF, EAFRD, EMFF): Common elements on strategic planning and programming: Joint thematic objectives, incl. environment protection and resource efficiency Partnership contracts with each Member States Conditionalities and performance review Monitoring, reporting and evaluation Other instruments: LIFE+, external instruments Objective: simplification All funds for which management is shared between the Member States and the Commission: the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the future European Maritime and Fisheries Fund. Common elements to maximise effectiveness of all structural instruments in terms of delivering objectives an targets set in programmes and optimise synergies and efficiency of the different instruments. To reinforce the strategic programming process, list of thematic objectives in line with the EU 2020 strategy. Partnership contracts between the Commission and each Member State will set out the commitments of partners at national and regional level. They will be linked to the objectives of EU 2020 Strategy and National Reform Programmes. They will set out an integrated approach for territorial development supported by all the CSF Funds and include objectives based on agreed indicators, strategic investments and a number of conditionalities. They will contain commitments to give yearly progress in the annual reports on cohesion policy, rural development policy and in other public reporting. To reinforce performance, new conditionality provisions will be introduced to ensure that EU funding creates strong incentives for Member States to deliver Europe 2020 objectives and targets. Conditionality will take the form of both ‘ex ante’ conditions that must be in place before funds are disbursed and 'ex post' conditions that will make the release of additional funds contingent on performance. 'Ex post' conditionality will strengthen the focus on performance and the attainment of the Europe 2020 objectives. It will be based on the achievement of milestones related to targets for outputs and results linked to Europe 2020 objectives set for programmes in the partnership contract. 5% of the budget of the relevant funds will be set aside and allocated, during a mid-term performance review, to the Member States whose programmes have met their milestones. The proposal envisages a management and control system which is similar across shared management instruments and is based on common principles. In addition to grant funding, it is proposed that support for enterprises and projects expected to generate substantial financial returns will be delivered primarily through innovative financial instruments. While financial instruments will remain similar to those employed in 2007-2013, several elements of simplification should be emphasized. First, the Commission will offer ready made solutions through access to financial instruments set up at EU level and models for national and regional funds based on standard terms and conditions laid down by the Commission. Second, the proposal represents a clear framework for the implementation of these instruments, and addresses the ambiguities which arose in the context the 2007-2013 legislative framework, increasing legal certainty for all parties. Third, financial instruments can in the future be used for all types of investment and beneficiary representing a significant extension of the possibilities to use these innovative instruments. Common provisions for all CSF funds in the area of monitoring and evaluation include the role and composition of the monitoring committee, annual implementation reports, annual review meetings, progress reports on the implementation of the Partnership Contract, ex ante and ex post evaluations. 6

Thank you for your attention Bise http://biodiversity.europa.eu