Recommendations to governments on how to implement Target 18 of the Global Biodiversity Framework
In Target 18 of the Kunming-Montreal Global Biodiversity Framework (GBF), governments committed to reform Environmentally Harmful Subsidies (EHS).
EHS unintentionally encourages unsustainable production, the depletion of natural resources, and the degradation of ecosystems. Leading businesses support effective reform as EHS distorts market prices, resource allocation and investment decisions, contributes to unfair competition, creates reputational risks and ultimately prevent leading companies from meeting their own nature commitments.
Subsidy reform is a complex challenge, but one that presents a wealth of opportunities for governments, businesses and investors and which can lead to resilient economies. It can create a level economic playing field that encourages the rapid transformation of business models.
This report outlines the steps governments should take to reform harmful subsidies:
Conduct a national assessment to identify and assess the types and scale of EHS across all policy areas.
Engage stakeholders and raise awareness of the need for EHS reform.
Co-develop and publish a robust EHS reform roadmap
Reform to ensure a just transition, while retaining or strengthening original social purposes.
Enhance accountability and governance for EHS reform
Enhance international cooperation and trade agreements.
This cannot be achieved by individual stakeholders alone. Leading businesses can support governments and:
Assess the type and amount of EHS they receive in their direct operations and along supply chains and assess how they depend on it.
Disclose the EHS they receive and how these impact or support the company’s performance.
Commit to EHS reform.
Transform practices by championing EHS reform.