Wildlife Bonds: A New Wave of Conservation Finance

The Global Environment Facility (GEF) is gearing up to introduce a new series of wildlife conservation bonds across Africa to safeguard endangered species and ecosystems. This initiative marks a significant step in innovative conservation financing.

Originally pioneered in 2022 with the World Bank-backed rhino bond, wildlife bonds have since been utilized in efforts such as chimpanzee protection in Rwanda and lemur conservation in Madagascar. Now, GEF is ambitiously aiming to implement one bond for each of Africa's 54 countries. This undertaking would require an initial investment of $150 million from GEF, which is expected to grow to $1.5 billion through additional borrowing.

These wildlife bonds provide essential funding to poorer countries as they do not burden their financial books. The bonds' payouts are contingent upon achieving conservation goals, making them attractive to investors and philanthropists. The expansion of these bonds comes amidst rising concerns over reduced aid and development funding from major economies.

(With inputs from agencies.)