5 Things You Need to Know about COP15
What is COP15?
Also known as the United Nations Biodiversity Conference, COP15 is the fifteenth meeting of Parties to the Convention on Biological Diversity (CBD). In simple terms COP15 is very similar to COP27, with a focus on the preservation of nature and biodiversity rather than the climate crisis. Unlike the climate COPs, biodiversity COPs are held only once every two years, not annually.
Uniquely, COP15 is being held in two parts. The first part took place virtually in Kunming, China in October 2021, with part two having to be rescheduled several times. Part two was eventually rescheduled to take place in Montreal, Canada from 5 to 17 December 2022, with China maintaining the COP presidency.
The conference takes place over two weeks, and includes a green zone, where the public and businesses are encouraged to attend, and the blue zone which is reserved for the national negotiation teams and official observers. There are also several business specific events and side events taking place during the conference, with the Business and Biodiversity forum taking place on the 12th and 13th December and the Finance and Biodiversity Day on 14th December.
How are nature and biodiversity defined?
Nature is defined by the Taskforce on Nature-related Financial Disclosure (TNFD) as ‘the natural world, with an emphasis on the diversity of living organisms (including people) and their interactions among themselves and with their environment.’ Biodiversity itself is more concerned with the biological diversity of living organisms and species within nature.
Often biodiversity and nature are talked about interchangeably and ultimately action to protect and restore nature should fundamentally enhance biodiversity.
An important term to be familiar with is ‘Ecosystem Services’. These services are fundamental the regulation of the environment and concern the benefits that are provided to people by wildlife or ecosystems. Ecosystem services include the provision of food, flood mitigation and pollination.
Why is a COP for biodiversity needed?
WWF and the Zoological Society of London’s Living Planet Report recently revealed that earth’s wildlife populations have plunged by an average of 69% in just under 50 years. Human activity is the primary driver of this loss of nature. The economic impacts of nature loss are stark with the World Bank estimating that as much as $2.7 trillion in global GDP could be lost per year by 2030 due to the collapse of ecosystem services – the services provided by nature that make life possible. To protect and restore nature, a global agreement is needed to support work towards a shared goal.
The climate crisis is also inextricably linked to the biodiversity crisis. With temperatures on the rise, changing rainfall patterns, extreme weather events and ocean acidification create incredibly challenging conditions for biodiversity to survive. In turn, the destruction of natural habitats undermines nature’s ability to regulate temperatures and protect against extreme weather. The link between climate and biodiversity means that inaction on one topic undermines achievements on the other.
As the link between the climate crisis and biodiversity loss becomes clearer, there is an increasing expectation for companies to act on biodiversity and set ambitious goals. This includes looking beyond Net Zero and setting targets to be nature positive.
What is expected from COP15?
There are high hopes for COP15. As the biodiversity and climate crises have worsened, and the links between the two have become clearer, the need to set global goals around biodiversity has become more urgent. Many negotiators and NGOs are hoping that this COP will lead to a Paris-style agreement for nature. This agreement is called the Post-2020 Global Biodiversity Framework, and as is clear from the title, an agreement has so far been delayed.
From the negotiations preceding COP15, it is hoped that the Post-2020 Framework will include some stretching headline goals, including:
- Protection at least 30% of land and oceans by 2030
- Halting biodiversity loss by 2030
- Restoring nature by 2050
A few points of contention remain before these ambitious goals can be agreed. Not least, the important question of how the framework will be implemented once its adopted, including how resources and finance will be mobilised to enable implementation, monitoring, and accountability. Finance – and where it ultimately comes from – will likely be a key sticking point, as it was during COP27.
If these ambitious goals are agreed and backed by governments globally, much like 2°C and 1.5°C scenarios and science-based targets, there will be expectations for companies to set targets to align with this framework, such as goals to be nature positive by 2030.
Why does nature and biodiversity matter to businesses and to investors?
With more than half of the world’s economic output dependent on nature, biodiversity fuels the global economy. Since the global economy relies so heavily on nature to provide the ecosystem services that enable prosperity, businesses have a vested interest in helping nature thrive to ensure long-term prosperity. Businesses should keep abreast of updates at COP15 and evaluate how best to align with any global goal if it is agreed.
It is important that businesses understand their interactions with, and reliance on, nature. Impacts can be sector and geography specific, as biodiversity issues vary across the world, and some sectors have a vast impact and reliance on nature, while others are far less impactful. Strategically, businesses should begin by minimising negative impacts and moving towards actions that contribute to nature restoration. A key facet of a successful biodiversity strategy is recognising the links between biodiversity and climate and assessing the viability of nature-based solutions in climate change mitigation efforts. The biodiversity space is developing rapidly, with the TNFD framework and a Science-Based Target for Nature under development. These developments means that the methodology for data, reporting, governance and targets is likely to be similar to those used for TCFD and the Science-Based Targets initiative.
If a global goal is achieved at COP15 it is likely that governments and investors will increase their focus on biodiversity. Businesses should be prepared to create an impactful biodiversity strategy that aligns to emerging frameworks and global goals.
FTI Consulting will be represented on the ground at COP15. Our colleagues are available to meet any attending organisations or to share insights to those who are not in attendance.
Read our recent thought leadership on Biodiversity: ESG’s new frontier for more details on how a company can set an impactful biodiversity strategy and the tools that are available to support effective implementation.
The views expressed in this article are those of the author(s) and not necessarily the views of FTI Consulting, its management, its subsidiaries, its affiliates, or its other professionals.
©2022 FTI Consulting, Inc. All rights reserved. www.fticonsulting.com
References:
WWF living planet report – https://livingplanet.panda.org/en-GB/
World Bank report on The Economic Case for Nature – https://www.worldbank.org/en/news/press-release/2021/07/01/protecting-nature-could-avert-global-economic-losses-of-usd2-7-trillion-per-year#:~:text=WASHINGTON%2C%20July%201%20%E2%80%93%20A%20new,%242.7%20trillion%20annually%20by%202030.
TNFD framework – https://tnfd.global/
SBTN framework – https://sciencebasedtargets.org/about-us/sbtn
