COP17 Adopts Yerevan Pathway to Accelerate Biodiversity Action and Finance Reform

Countries attending the UN Biodiversity Conference (COP17) in Yerevan, Armenia, have adopted the Yerevan Pathway to accelerate implementation of the Kunming-Montreal Global Biodiversity Framework (GBF), following a global review showing that progress remains insufficient to achieve the framework's 2030 targets. Negotiations concluded on 31 October 2026, with countries adopting nearly 50 decisions covering biodiversity protection, financial incentives, national implementation and monitoring.

The Finance for Biodiversity Foundation welcomed the agreement in a statement published on 1 November, highlighting progress on reforming environmentally harmful incentives and incorporating biodiversity into corporate and financial decision-making. However, the organization called for stronger national commitments to redirect financial flows away from activities contributing to nature loss, warning that policy implementation will determine whether the agreement produces measurable results.

 

Yerevan Pathway Responds to Gaps in Global Biodiversity Progress

 

The Yerevan Pathway sets priorities to accelerate implementation of the GBF's 23 targets by 2030. These include reforming harmful subsidies and incentives, aligning government budgets with biodiversity objectives, increasing financial and technical support for developing countries, and strengthening national monitoring and accountability systems. The agreement responds to findings from the first Global Review, which identified substantial gaps between existing national commitments and the action required to halt and reverse biodiversity loss.

Although the negotiations produced broad agreement on accelerating implementation, Parties did not approve stronger language on transforming economic and financial systems. The Finance for Biodiversity Foundation identified this as a significant limitation, arguing that increasing conservation finance alone will not be sufficient unless governments also address economic activities and financial incentives that contribute to biodiversity loss.

 

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Harmful Subsidy Reform Gains Support from Financial Institutions

 

Reforming environmentally harmful incentives emerged as a major priority during COP17, particularly under Target 18 of the Global Biodiversity Framework. The target calls for identifying and reforming subsidies and other incentives that damage biodiversity, including reducing harmful incentives by at least $500 billion annually by 2030. More than 130 businesses and financial institutions signed an open letter calling for accelerated reforms, which was presented to representatives of nine governments during the conference's High-Level Segment.

Anita de Horde, Executive Director of the Finance for Biodiversity Foundation, said, "COP17 has given incentive reform new political momentum." She emphasized the importance of redirecting public expenditure towards nature-positive activities and creating conditions that attract private investment. Jan-Erik Saugestad, Chief Executive Officer of Storebrand Asset Management, also welcomed the outcome, noting that incentive reform could help reduce nature-related financial risks and strengthen investment opportunities linked to ecosystem protection.

 

Biodiversity Transition Planning Enters Financial Policy Discussions

 

Biodiversity mainstreaming discussions at COP17 also advanced proposals to incorporate nature-related considerations into business and financial planning. According to the Finance for Biodiversity Foundation, the relevant decision identifies transition plans for companies and financial institutions, alongside national sectoral alignment plans, as tools for integrating biodiversity objectives into economic activities. It also addresses the potential role of public authorities in incorporating biodiversity into private-sector disclosure frameworks.

These measures could strengthen how financial institutions assess nature-related dependencies, risks and impacts across their portfolios. Biodiversity transition planning may help connect investment decisions with national conservation and restoration objectives, particularly in sectors dependent on land, water and natural resources. However, the proposed approaches do not establish a universal mandatory transition-planning requirement for financial institutions. Their practical significance will depend on subsequent national policies, regulatory measures and implementation guidance.

 

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Global Review Highlights Need to Redirect Financial Flows

 

The Finance for Biodiversity Foundation highlighted the Global Review's emphasis on addressing the underlying economic drivers of biodiversity loss. While the Yerevan Pathway calls for stronger implementation and improved accountability, the Foundation expressed disappointment that governments did not agree on more ambitious commitments to align financial systems with biodiversity objectives.

The Foundation also stressed the importance of scientific data, monitoring and coordination between governments and private-sector stakeholders. Its delegation at COP17 included 40 representatives from 18 financial institutions, who advocated stronger policies supporting nature-positive investment. The group also promoted work on the Tropical Forest Forever Facility and the development of a Finance for Nature Positive Framework, supported through the Global Environment Facility's innovation funding.

 

Cali Fund Decisions Advance Biodiversity Benefit-Sharing Discussions

 

COP17 also addressed the continued operationalization of the Cali Fund, which forms part of the multilateral mechanism for sharing benefits arising from the use of digital sequence information (DSI) on genetic resources. According to the Finance for Biodiversity Foundation, the decision allows further work on fund allocation methodologies, legal certainty around certificates, and a structured implementation approach ahead of COP18. Discussions remain open on how different categories of DSI users should contribute to the mechanism.

The Foundation, which participates as an observer to the Cali Fund Steering Committee, launched investor guidance on digital sequence information during COP17 to help financial institutions understand the mechanism and its implications for companies using genetic resources. With COP18 scheduled for Ecuador in 2028, attention will shift towards translating the Yerevan agreements into national reforms, developing practical financial mechanisms, and demonstrating measurable biodiversity progress before the 2030 deadline.

 

Source: Finance for Biodiversity Foundation