rethink sustainability
COP15: A once-in-a-decade opportunity to protect our vital biodiversity
As the United Nations Framework Convention on Climate Change (UNFCCC) turns 30 this year, so too does its less well-known sibling, the Convention on Biological Diversity (CBD).
Over the years, the UNFCCC has taken the limelight with headline-grabbing conferences that have acted as a magnet for world leaders and celebrities and led to robust regulatory change. Meanwhile, the CBD has gone about its business more quietly and, arguably, less successfully. In 2010, the tenth Conference of the Parties to the CBD (COP10), held in Nagoya, Japan, agreed to halt the destruction of ecosystems and loss of species by setting a series of targets. All have been missed.
This December, the fifteenth Conference of the Parties to the CBD (COP15) will be held in Montréal, Canada. With delegates set to agree a first ever Global Biodiversity Framework – which will supersede the 2010 targets – it is hoped that COP15 will breathe new life into global efforts to protect the world’s vital biodiversity.
Separated at birth: why it matters
It is estimated that more than half of global GDP, or up to USD 44 trillion, depends on nature. As such, the growing threat to our biodiversity– a landmark report found that around 1 million plant and animal species are at risk of extinction – extends to our economy.
Climate and biodiversity can’t easily be separated. Just as climate change can drive biodiversity loss, biodiversity loss can drive climate change. As species dwindle, the delicate balance of ecosystems can be upset and entire landscapes can become degraded, hampering the role healthy trees and vegetation play in moderating rainfall and diminishing their ability to absorb and store carbon.
Read also: Trigger warning: five ways to buy time for net zero and prepare for net negative
Take, for instance, Yellowstone National Park in the USA, where, by the end of the 1920s, wolves had been hunted to extinction. No longer threatened by wolves, the elk population grew rapidly over the decades that followed. As they grazed on vegetation and saplings, the landscape became degraded, plants and trees died off, and soil began to erode. But in 1995, wolves were reintroduced to Yellowstone, leading to the recovery of willow, aspen, and cottonwood tree coverage across nearly 9,000 km² of the park along with a cascade of second-order effects, including the widespread return of beavers.
At around the same time, 1992’s landmark Earth Summit in Rio de Janeiro led to the international conventions on climate change and biological diversity. However some experts now believe that separating these twin challenges into separate conventions was an error. A recent report by fifty of the world’s leading climate and biodiversity scientists argues that climate change and biodiversity are so intertwined that they should be treated as a joint problem, with contributors to the report warning against taking actions on climate change – such as non-native monoculture tree planting – that could upset the ecological balance and put biodiversity at even greater risk.
Building towards nature’s ‘Paris moment’
While they remain separate, – at least for now – international attention is increasingly focussing on the grave danger posed by biodiversity loss. In late 2020, Lombard Odier launched its Natural Capital Strategy, and in the two years since – despite the upheavals caused by Covid-19, geopolitical shocks, and rising inflation – governments and trading blocs have embraced the natural capital theme.
In February 2022, the Biodiversity Beyond National Jurisdictions Treaty was launched, with 50 nations agreeing to work towards a so-called Treaty of the High Seas with the aim of protecting the 95% of oceans that fall outside of national jurisdictions. Just a few days later, the landmark UN Environment Agency Plastics Accord was struck, the first ever global agreement to create a future free of plastic waste.
These and many other policy advances are providing strong tailwinds for companies aligned with the rise of recycling; the use of alternative bio-materials; and the growth of share, reuse, and repair models. At the same time, investors are gaining exposure to unprecedented opportunities to realise returns while contributing to the rise of a new economy: one that works with nature, rather than against it.
In 2015, the Paris Agreement became the cornerstone of international efforts to combat climate change. Against a backdrop of growing international commitment to biodiversity protection, COP15 now looks set to give nature its own ‘Paris moment’.
Read also: Two challenges, many solutions for investors: where biodiversity protection meets decarbonisation
The Global Biodiversity Framework
The most eye-catching of the Global Biodiversity Framework’s draft proposals is “30x30”, a commitment to protect at least 30% of all land and ocean areas by 2030. More than 50 countries have already made the pledge, as part of a collective formed to spur international ambition ahead of COP15.
The 30x30 target is also the most controversial proposal. Indigenous rights campaign groups The Rainforest Foundation UK has joined Survival International and Minority Rights in opposing the plan, which they say amounts to a land grab that will deprive indigenous groups of rights to land they have occupied for generations.
Less controversially, the framework draws an explicit link between biodiversity and climate change, with a proposal to use ecosystem-based climate change mitigation to absorb at least 10 billion tonnes of CO2 equivalent each year. Other ambitious measures include eliminating plastic pollution, cutting pesticide pollution by at least two thirds, and ending billions of pounds of government subsidies that are actively harming the environment.
Across 21 measurable targets, the framework aims to build a society that will live in “harmony with nature” by 2050.
Read also: Saving nature – why 2022 is key for biodiversity
Politics in the way – but hopes still high
COP15 had originally been slated to be held in Kunming, China, in 2020. After several Covid-related delays, the first part of the process – part one of the conference – was held both online and in person in Kunming in October 2021. After Covid-19 caused further delays, and with China continuing to enforce strong Covid-19 entry and travel restrictions, part two of the conference was moved to Montréal.
Despite the venue switch, China still holds the COP15 presidency. This leaves the CCP responsible for invitations and, with China’s President Xi not planning to attend the conference, no invitations have yet been sent to world leaders.
Environmental group Campaign for Nature has urged prime ministers and presidents to attend regardless, fearing that officials will be unable to find common ground “without a clear indication from the highest levels that it is a priority.” However, at a recent press briefing, Elizabeth Maruma Mrema, Executive Secretary of the Convention on Biological Diversity, acknowledged that the conference is expected to be held without world leaders present.
Despite this political roadblock and the controversy surrounding the 30x30 target, hopes remain high that the biggest biodiversity conference in a decade will deliver meaningful change.
“COP15 is the pivotal moment when the global community must credibly commit to reversing biodiversity loss.,” says Michael Urban, Chief Sustainability Strategist, Lombard Odier. “To be credible, it is crucial that this commitment is backed up by a strong implementation mechanism, incentives for developing countries to prioritise protecting nature, and innovative financing mechanisms – including nature-based solutions, – that can channel funds to high-value conservation projects.”
Important information
This document is issued by Bank Lombard Odier & Co Ltd or an entity of the Group (hereinafter “Lombard Odier”). It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a document. This document was not prepared by the Financial Research Department of Lombard Odier.
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