Metadata Factsheet

1. Indicator name

Positive (economic) incentives in place to promote biodiversity conservation and sustainable use

OECD collects national level data on positive incentives for the conservation and sustainable use of biodiversity. These incentives are also referred to as economic instruments or incentive-based instruments. OECD collects the data through the OECD database on Policy Instruments for the Environment (PINE).The data meets the headline indicator criteria (i.e. they can be aggregated up from national level data and can be disaggregated down from totals, as the data is reported in a consistent and comparable way across countries). More than 125 countries are currently contributing to the OECD Policy Instruments for the Environment (PINE) database. Data covered includes:

  • biodiversity-relevant taxes
  • biodiversity-relevant fees and charges
  • biodiversity-relevant tradable permits
  • biodiversity-relevant positive subsidies

We therefore propose this headline indicator name: Positive incentives (by type) in place to promote biodiversity conservation and sustainable use. The subsequent information provided in this factsheet relates to this proposed indicator, unless otherwise specified.

(We will transition to a new data platform in 2023, which will also include data on payments for ecosystem services and on biodiversity offsets).

2. Date of metadata update

2022-02-01 12:00:00 UTC

3. Goals and Targets addressed

3a. Goal

N/A

3b. Target

Target 18 (as it relates to scaling up positive incentives).

4. Rationale

Positive incentives for biodiversity conservation and sustainable use (also referred to as economic instruments or incentive-based mechanisms) are policy instruments that serve to help internalise the negative externalities associated with the use of biodiversity. Examples include taxes on pesticide pollution, fees for hunting and fishing licenses, tradable permits for groundwater extraction, amongst many others. These positive incentives are key to mainstreaming biodiversity across sectors (e.g. agriculture, forestry, fisheries) and to reflect the true value of biodiversity into market (i.e. economic) decision-making. Many of these positive (or economic) incentives are also able to generate revenue (e.g. biodiversity-relevant taxes, fees and charges, and also tradable permits if they are auctioned). They raise the cost of using the natural resource, thereby providing continuous incentives to both consumers and producers to behave in a more environmentally sustainable way.

5. Definitions, concepts and classifications

5a. Definition

Definition of positive incentives for biodiversity conservation and sustainable use: Positive incentives, or incentive-based mechanisms or economic instruments are the set of policy instruments that are based on providing incentives for producers and consumers to behave in a more sustainable way. Economic instruments are fiscal and other economic incentives to incorporate environmental costs (and benefits) into production and consumption. The objective is to encourage environmentally sound and efficient production and consumption through full-cost pricing. In contrast to more traditional command-and-control approaches (e.g. restrictions on access or use, standards, etc), economic instruments can in theory meet a given environmental objective at a lower total economic cost.

Unit of measurement: Number of positive incentives (by type).

5b. Method of computation

On the OECD PINE database on economic instruments (positive incentives): Countries are requested to report on when the policy instrument was introduced, what it applies to, the geographical coverage, the environmental domain, the industries concerned; the revenues, costs or rates; whether the revenue is earmarked; and any exemptions.

Information is available by country at the individual policy instrument level. Data can be aggregated up to the global level.

See OECD (2021), Tracking Economic Instruments and Finance for Biodiversity – 2021.

5c. Data collection method

Data on positive incentives for biodiversity is collected via the OECD database on Policy Instruments for the Environment (PINE). For the OECD PINE database, data is collected via a network of more than 200 country experts, including in government agencies (Ministries of Finance and Environment, statistical institutes) as well as research institutes and international organisations. Data is collected regularly for OECD members, accession countries and OECD key partners. A growing number of non-member countries also provide information. Currently, more than 125 countries are contributing data. Registered experts are asked to update data at least once a year, typically in January or February, through a password-protected interface. The data collection method may result in some reporting bias, as OECD members and active accession countries are likely to report more data on a regular basis, and all figures should be interpreted in this context.

5d. Accessibility of methodology

The PINE data is publicly available on the OECD website. See https://pinedatabase.oecd.org/

The methodology has been approved by OECD delegates .

The PINE data can be accessed:

  • by type of economic instrument (tax, fee/charge, tradable permit, etc.)
  • by country: click on "All information"
  • by industry: click on "ISIC/COICOP Codes"
  • by environmental domain (e.g. biodiversity, climate change, air pollution, etc)
The data for the indicators on biodiversity-relevant positive incentives is undertaken by extracting the relevant information in the PINE database for the biodiversity environmental domain

5e. Data sources

Countries are requested to report on when the policy instrument was introduced, what it applies to, the geographical coverage, the environmental domain, the industries concerned; the revenues, costs or rates; whether the revenue is earmarked; and exemptions.

5f. Availability and release calendar

Available now.

5g. Time series

Data on positive incentives for biodiversity is available from 1980-present. More than 125 countries are contributing to the OECD Policy Instruments for the Environment (PINE) database, from which the data on incentives for biodiversity derives. Latest update on biodiversity is available here: OECD (2021), Tracking Economic Instruments and Finance for Biodiversity – 2021. The next version of this will be updated in 2023.

5h. Data providers

Data on positive incentives for biodiversity is collected via the OECD database on Policy Instruments for the Environment (PINE). For the OECD PINE database, data is collected via a network of 200 country experts, including in government agencies (Ministries of Finance and Environment, statistical institutes) as well as research institutes and international organisations. Data is collected systematically for OECD members as well as the active accession countries. A growing number of non-member countries also provide information. Currently, more than 125 countries are contributing data. Registered experts are asked to update data at least once a year, typically in January or February, through a password-protected interface.

5i. Data compilers

The OECD is responsible for collecting and compiling the data.

5j. Gaps in data coverage

More than 125 countries worldwide are contributing data to the OECD PINE database. All countries are welcome to contribute data.

5k. Treatment of missing values

6. Scale

6a. Scale of use

Scale of application: National

Scale of data disaggregation/aggregation:

Global/ regional scale indicator can be disaggregated to national level:

National data is collated to form global indicator: Yes

Additional information: Data on positive incentives is collected at national level. Countries can specify whether the policy instrument is applied nationally or sub-nationally. National data can therefore be collated to provide global indicators (e.g. total number of countries with biodiversity-relevant taxes [over time]; total number of biodiversity-relevant taxes [over time], etc).

6b. National/regional indicator production

All the PINE data is available online on the OECD website. The data covers different environmental domains (e.g. biodiversity, climate change, air pollution, etc). The OECD Secretariat regularly updates the analysis on Tracking Economic Instruments and Finance for Biodiversity which provides an overview of the biodiversity-relevant data, given its relevance to the CBD and so as to enhance user-friendliness.

6c. Sources of differences between global and national figures

6d. Regional and global estimates & data collection for global monitoring

6d.1 Description of the methodology

N/A

6d.2 Additional methodological details

6d.3 Description of the mechanism for collecting data from countries

7. Other MEAs, processes and organisations

7a. Other MEA and processes

The indicator is already in use for SDG 15.a.1 on biodiversity finance.

This is because the data collected also includes information on the revenue generated or finance mobilised by these biodiversity positive economic incentives.

7b. Biodiversity Indicator Partnership

Yes

8. Disaggregation

9. Related goals, targets and indicators

Target 14: Fully integrate biodiversity values into policies, regulations…

Goal D: The gap between available financial and other means of implementation, and those necessary to achieve the 2050 Vision, is closed

10. Data reporter

10a. Organisation

Organisation for Economic Co-operation and Development

10b. Contact person(s)

PINEdatabase@oecd.org

Katia Karousakis katia.karousakis@oecd.org and Miguel Cardenas Rodriguez Miguel.CARDENASRODRIGUEZ@oecd.org

11. References

On positive incentives (economic instruments) for biodiversity conservation and sustainable use: OECD 2021, Tracking Economic Instruments and Finance for Biodiversity – 2021.

12. Graphs and diagrams

Source: OECD Policy Instruments for the Environment (PINE) database.

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