Only 2.43% of Global Biodiversity Aid Reaches Indigenous and Local Communities: UNDP SGP Report

A recent study reveals that just 2.43% of global biodiversity-related development aid directly reaches Indigenous Peoples and Local Communities (IPLCs), despite their central role in conserving the planet’s biodiversity. The report, published by the United Nations Development Programme’s Small Grants Programme (UNDP SGP), underlines a significant financing gap in international conservation funding. It highlights how direct investment in local communities yields more effective and sustainable environmental outcomes.

Between 2011 and 2020, IPLCs received only a fraction of the $20 billion in global biodiversity aid, as per the OECD statistics reviewed by the SGP. The report evaluates 1,400 projects across 136 countries and concludes that community-based financing mechanisms like the SGP model are more efficient in addressing biodiversity loss. The findings point to structural inefficiencies in current funding systems that often route aid through larger NGOs, governmental bodies, or international agencies, delaying or reducing the impact on the ground.

The UNDP SGP model offers an alternative, with over 30 years of experience directly supporting community-led projects. Operating across more than 100 countries, the SGP has funded over 27,000 initiatives with a cumulative investment exceeding $720 million. These projects involve local communities in biodiversity conservation, climate change mitigation, land degradation prevention, and protection of international waters.

One of the main challenges in biodiversity funding is that most international donors prefer to allocate aid through formal channels that may not have local-level access or understanding. The SGP model bypasses these barriers by enabling small grants, usually up to $50,000, to reach grassroots organizations without the heavy administrative burdens associated with larger development funding mechanisms. This flexibility has allowed local communities to implement effective, scalable, and context-specific solutions to protect ecosystems.

In Africa, Latin America, Asia, and the Pacific, SGP projects have contributed significantly to the protection of critical habitats and the sustainable management of natural resources. Examples include agroforestry systems in Kenya, community-based marine protected areas in the Philippines, and sustainable tourism initiatives in the Amazon. These locally driven models not only help conserve biodiversity but also support livelihoods, gender equality, and indigenous knowledge systems.

The report stresses that scaling up funding directly to IPLCs is essential to meeting the goals of the Kunming-Montreal Global Biodiversity Framework (GBF), which aims to halt and reverse biodiversity loss by 2030. The UNDP SGP findings align with Target 22 of the GBF, which calls for inclusive and equitable participation of IPLCs in decision-making and resource allocation for biodiversity protection.

The SGP model is now being presented as a best practice example for other global initiatives. It promotes decentralization, community ownership, and transparency in biodiversity financing. The report calls on international donors, multilateral agencies, and national governments to adopt similar funding frameworks that prioritize IPLCs.

Additionally, the research highlights the need for reform in tracking financial flows to IPLCs. Current systems lack standardized methodologies for identifying direct community beneficiaries, which makes it difficult to evaluate aid impact and ensure accountability. The report recommends establishing clearer guidelines and reporting mechanisms to improve transparency and channel funds more effectively to the grassroots level.

The findings come at a critical time when biodiversity is declining globally due to habitat loss, climate change, and overexploitation of natural resources. Indigenous and local communities manage nearly 40% of protected or ecologically intact land on Earth. Empowering them with direct financial support is seen as a strategic move to safeguard global biodiversity targets.

As nations work to meet their GBF commitments, there is growing recognition of the importance of IPLCs in environmental governance. The report by UNDP SGP reinforces the urgency of shifting funding paradigms and delivering climate and biodiversity finance where it has the most tangible impact—on the ground with those who live closest to nature.

Source:

Outlook Business.