Metadata Factsheet

3. Goals and Targets addressed

3a. Goal

N/A

3b. Target

Headline indicator for Target 18: Identify by 2025, and eliminate, phase out or reform incentives, including subsidies, harmful for biodiversity, in a proportionate, just, fair, effective and equitable way, while substantially and progressively reducing them by at least $500 billion per year by 2030, starting with the most harmful incentives, and scale up positive incentives for the conservation and sustainable use of biodiversity.

5. Definitions, concepts and classifications

5a. Definition

Positive incentives (also referred to as incentive-based or economic instruments) are the set of fiscal and other economic incentives to incorporate biodiversity-related costs and benefits into production and consumption. They are the policy instruments that use price signals to discourage activities harmful to biodiversity (e.g., a tax on pollution) or encourage activities that benefit biodiversity (e.g., payments for ecosystem services). 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.

1. Biodiversity-relevant taxes, fees and charges: payment to the government levied on tax bases with a proven, specific negative impact on the biodiversity. They include taxes on pollution and natural resource/land use. Non-exhaustive list of examples: • Fertilisers and pesticides taxes • Water pollution taxes and water abstraction charges • Fishing and hunting licence fees • Protected area entrance fees • Taxes and fees/charges for timber harvest.
2. Biodiversity-positive subsidies: a subsidy that reduces directly or indirectly the use of something that has a proven, specific negative impact on biodiversity. Subsidies include direct payments from government and preferential tax treatments (e.g. VAT exemptions). Non-exhaustive list of examples: • Payments from government to private land-users/owners to restore land • Preferential land tax for forests under protection or restoration • Agri-environmental payments promoting habitat protection and restoration.
3. Biodiversity-relevant tradable permit schemes: market-based instruments that provide allowance or permission to engage in an activity under an aggregate cap. These permits can be traded. Non-exhaustive list of examples: • Individual transferable quotas (ITQs) for fisheries • Tradable water rights • Salinity trading schemes • Tradable development rights.
4. Biodiversity offsets: Biodiversity offsets are “measurable conservation outcomes resulting from actions designed to compensate for significant residual adverse biodiversity impacts arising from project development after appropriate prevention and mitigation measures have been taken.” (BBOP 2018). They are usually established with an overall objective of a No Net Loss (NNL) or Net Gain (NG). Biodiversity offsets can be classified into three main types: 1. One-off biodiversity offsets; 2. Payments in-lieu; and 3. Biobanking schemes.
5. Payments for ecosystem services: A payment for ecosystem services (PES) is a voluntary transaction between ecosystem service users and service providers that are conditional on agreed rules of natural resource management for generating offsite services (Wunder, 2015). Ecosystem service providers and users may be individuals, companies or aggregations of actors. In some cases, a government may act on behalf of users.
6. Unit of measurement: Number of positive incentives (by type).

5b. Method of computation

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. The data are collected through the OECD database on Policy Instruments for the Environment (PINE). The data meet the headline indicator criteria (i.e., they can be aggregated globally from national level data and can be disaggregated down from totals, as the data are reported in a consistent and comparable way across countries). The positive incentives covered are:

• biodiversity-relevant taxes, fees and charges
• biodiversity-relevant positive subsidies
• biodiversity-relevant tradable permits
• payments for ecosystem services
• biodiversity offsets

The data on positive incentives collected via the OECD PINE database covers:

• when the policy instrument was introduced;
• what it applies to;

• the geographical coverage (e.g. national, local);
• the environmental domain (e.g. biodiversity, climate change, air pollution);
• the industries concerned;
• the revenues, costs or rates;
• whether the revenue is earmarked; and
• any exemptions.

The OECD Secretariat manages the database and ensures consistency in the way data are classified (incl. compliance with definitions and internationally agreed classifications) and undertakes quality checks.

The questionnaire, data structure, and typology and definitions of instruments can be found on the ‘About’ section of the PINE database website available at: http://oe.cd/pinedatabase

The data on monetary value of positive incentives (revenues or payments) is reported in millions of local currency per year in current prices. For biodiversity offsets this could include private transactions for example when purchasing offsets through biobanking, payments for one-off offsets and payments to government if payment in lieu scheme.

Information is available by country at the individual policy instrument level. Dashboards aggregated up to the global level are also presented in the data dissemination portal. Data on biodiversity-related economic instruments (positive incentives) are presented and analysed in OECD reports on “Tracking Economic Instruments and Finance for Biodiversity” which is updated on a regular basis. The latest release was in 2021, with the next update to take place in 2024.

All countries are welcome to contribute to the OECD PINE database. Currently more than 130 countries have contributed. can provide information to PINE. Countries may either use the data in PINE to report to the CBD or provide data directly to the CBD from their national reporting systems. Countries are encouraged to establish national systems for collecting data on positive incentives for biodiversity.

5c. Data collection method

Data on positive incentives for biodiversity, reported via the OECD PINE database are collected via a network of 450+ registered country experts from government agencies (Ministries of Finance and Environment, statistical institutes) as well as research institutes and international organisations. Data are collected regularly for OECD members, accession countries and OECD key partners. A growing number of non-member countries also contribute data to PINE. The OECD also conducts targeted data collection initiatives to expand the coverage of countries and update the information. Currently the PINE database includes information from 134 countries (~70% of Parties to the CBD).

Registered experts are asked to update data at least once a year, typically in January or February, through an online password-protected interface. Country experts register to access the database.

5d. Accessibility of methodology

The PINE data are publicly available on the OECD website. See http://oe.cd/pinedatabase

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 analysis for the indicators on biodiversity-relevant positive incentives is undertaken by extracting the relevant information in the PINE database for the biodiversity environmental domain.

The methodology has been approved by OECD delegates.

5e. Data sources

Data come mainly from government agencies (e.g. Ministries of Finance and Environment; statistical institutes) as well as research institutes and international organisations. See section 5c for further detail.

5f. Availability and release calendar

Data is available from 1980-present. Updated annually.

5g. Time series

Data on positive incentives for biodiversity are available from 1980-present for 134 countries and are updated annually. OECD’s Tracking Economic Instruments and Finance reports (updated regularly, for example in 2019, 2020 and 2021) summarises and analyses the biodiversity-related instruments in the PINE database (next update forthcoming 2024). The annually updated data is publicly accessible on the OECD PINE website.

5h. Data providers

Data providers are a network of 450+ registered country experts from government agencies (Ministries of Finance and Environment, statistical institutes) as well as research institutes and international organisations. Data are collected systematically for OECD members as well as the active OECD accession countries. A growing number of non-member countries also provide information. Registered experts are asked to update data at least once a year, typically in January or February, through a password-protected interface. All countries are welcome to contribute data to the OECD PINE database.

Countries can also provide data directly to CBD.

5i. Data compilers

The OECD Secretariat is responsible for collecting and harmonising the data. Data validation is undertaken by the OECD Secretariat in collaboration with the reporting countries.

5j. Gaps in data coverage

The OECD PINE database includes data from 134 countries (and is expanding over time). The data collection method may result in some reporting bias, as OECD members and active accession countries are likely to report data more regularly. All figures should be interpreted in this context. Data updates for countries may be delayed due to staff changes in the national teams providing the information. As the instrument categories on ‘payments for ecosystem services’ and on ‘biodiversity offsets’ were introduced into the PINE database in 2023, the data for these two types of positive incentives is likely to be less comprehensive than for the other types of positive incentives. It is expected that reporting on these two new instruments will improve over time. All countries are welcome to contribute to the PINE database.

5k. Treatment of missing values

If data on positive incentives are missing, they may be imputed from other international data platforms where appropriate (e.g., EUROSTATOECD Revenue Statistics).

6. Scale

6a. Scale of use

Scale of application: Global, Regional, National

Scale of data disaggregation/aggregation:

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

National data is collated to form global indicator: Yes

Additional information: Data on positive incentives are 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 data are publicly available online on the OECD PINE website. The database is overseen by the OECD Working Party on Environmental Information (WPEI) under the OECD Environmental Policy Committee, and the Joint Meeting of Tax and Environment Experts (JMTEE). The biodiversity-relevant data can be viewed by searching for environmental domain: “biodiversity”. The OECD Secretariat also regularly updates the analysis on “Tracking Economic Instruments and Finance for Biodiversity” to facilitate user-friendliness and to highlight policy-relevant messages.

6c. Sources of differences between global and national figures

All data in PINE are provided by governments and academics (if the latter then data is validated by national governments before it is placed on the publicly available OECD PINE website). Divergence between nationally produced data and international data may occur if there are discrepancies in the way instruments are categorised in national data sets and in PINE. Some countries provide more comprehensive information than others.

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

6d.1 Description of the methodology

Data is reported at country level

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 data is used as an indicator for Sustainable Development Goal (SDG) 15.a.1 on biodiversity finance.

7b. Biodiversity Indicator Partnership

Yes

10. Data reporter

10a. Organisation

Organisation for Economic Co-operation and Development (Environment Directorate)

10b. Contact person(s)

PINEdatabase@oecd.org

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