The section on economic instruments includes provisions on incentives, market-based mechanisms, valuation, financial strategies for protected areas (PAs), and the distribution of benefits from PAs, including compensation to local communities. It essentially deals with economic strategies and methods for achieving biodiversity conservation and sustainable use in PAs.
The section on economic instruments is closely linked to that on the provision of resources, which deals with providing help in terms of funding and capacity. Obligations and commitments in the resources section, however, request Parties to fund specific projects, whereas those in the economic instruments section request Parties to adopt strategies or plans for funding. The economic instruments section is also linked to the section on legislative measures and national policy, as the adoption of economic strategies may explicitly refer to the development of policies or legislation to allow this.
There are relatively few obligations and commitments in the economic instruments section in comparison to other sections, and these are mostly taken from CBD. All the other conventions, nevertheless, are represented, except for CMS and UNFCCC.
The activities deal with three main areas: incentive mechanisms, financial strategies and the distribution of economic benefits from PAs. The activity on develop financial strategies is closely linked to the activity provide funding of the section on the provision of resources. Activities included in this section on economic instruments are:
- Support positive incentives for PAs: remove perverse incentives, develop positive incentives and remove deterrents.
- Develop financial strategies for PAs: develop sustainable financing and fund-raising strategies and plans, including involvement of the private sector.
- Distribute resources from PAs: market and distribute benefits from PAs.