This policy report examines the notion of safeguards in biodiversity financing mechanisms (BFMs) under the Con- vention on Biological Diversity, in order to inform discus- sions in CBD-COP12. It explores key elements in the process of scaling-up biodiversity financing for achieving the CBD objectives. It is a result of a lengthy and collaborative process which has benefited from inputs and comments from Parties and other relevant stakeholders and builds on lessons learned from existing legal and policy processes under various inter- national and national frameworks.

The development of BFMs is seen as a key element contribut- ing to the achievement of the three goals of the Convention on Biological Diversity. However, concerns exist over po- tential social and environmental problems. To address these concerns, various stakeholders have stressed the importance of safeguards as prerequisites for reaching the CBD objectives. “Safeguards in BFMs” refer to measures for maximising the protection of biodiversity and people’s livelihoods while mini- mising negative impacts.

This policy report shows that safeguards in the environmental arena have evolved from an original defensive nature, aimed at ensuring smooth top-down implementation of a program or policy, to a relatively more comprehensive one that aims

to support equitable biodiversity and ecosystem governance including the participation and rights’ recognition of local right-holders. It suggests that a rights/duties based approach to safeguards in BFMs that goes beyond a defensive approach can serve in constructively finding consensus for equitably recognising and guaranteeing biocultural rights and duties among the parties involved. While distinguishing procedural safeguards from substantive safeguards, the paper highlights that both are needed. This more holistic approach to safe- guards views their operationalization as a dynamic process grounded in particular local level realities and linked to national and international processes.