Ancient Climate Fund Launches Innovative Wildlife Bonds to Protect Africa’s Endangered Species

The Global Environment Facility (GEF), the oldest multilateral climate fund, is gearing up for new wildlife conservation bonds aimed at helping African nations protect endangered species and their habitats. This innovative funding approach offers low-cost resources in exchange for measurable actions, such as reducing poaching.

Wildlife bonds made their debut in 2022 with a World Bank-supported rhino bond and have gained traction since. Last year, a bond focused on protecting chimpanzees in Rwanda was launched, and just last month, the GEF approved a similar initiative for lemurs in Madagascar.

Fred Boltz, GEF’s head of programming, shared insights with Reuters during a gathering of African environment ministers. He mentioned that the GEF aims to create a bond for every African nation, which would require a $150 million investment. This initial funding could unlock up to $1.5 billion for conservation efforts through further borrowing.

One significant advantage of these wildlife bonds is that the funds do not typically burden the financial records of the countries that benefit. This feature is crucial for poorer nations, allowing them to secure necessary financing without incurring unmanageable debt. The bonds often focus on iconic species to attract investment from wealthy donors and specialist investors; their success hinges on tangible conservation results.

Boltz also noted that GEF aims to broaden the scope of these bonds to include entire ecosystems, like wetlands. This ambition comes at a critical time as cuts in aid and development funding from major economies, including the United States, place some conservation projects in jeopardy.

“Many countries are expressing concern about maintaining species levels in this challenging funding climate,” Boltz explained. “We might need to innovate and do more with less.”

Since its inception after the 1992 Rio Earth Summit, the GEF has invested $7.7 billion in various projects across Africa. For instance, it has allocated $85 million to combat desertification in the Sahel region. Currently, the fund is urging donors to replenish its resources for the upcoming four-year cycle of programs, set to begin next year. In the last fundraising round, it amassed $5.3 billion—over 30% more than the previous period, highlighting increased support for global nature and climate initiatives. This effort drew contributions from 29 countries, with the U.S. being a significant donor at $700 million.

As the need for conservation funding grows, innovative solutions like wildlife bonds may play a pivotal role in protecting some of the planet’s most vulnerable species. These efforts emphasize the importance of global collaboration in addressing pressing environmental challenges. You can learn more about the Global Environment Facility and its initiatives here.

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