Açaí, chestnuts, cocoa, pirarucu, rubber... there are so many products we consume that come from forests and some of them are only found there. These products are important not only for our consumption, but they also support indigenous peoples and local communities, whose livelihoods depend mainly on extractivism and sustainable management. These are the products of Amazonian socio-biodiversity.
What is sociobiodiversity?
Sociobiodiversity can be defined as the interconnection between biological diversity (biodiversity) and the diversity of sociocultural systems, based on the knowledge of indigenous peoples, local communities and family farmers and the appreciation of ecological processes.
Sociobiodiversity products are fundamental to conservation and restoration strategies for ecosystems and biodiversity, in line with income generation and food security of people at local and regional level.
Despite this, these products often do not receive due recognition for its relevant economic, social and environmental contributions. Its true value is often belittled or neglected, reflected in commercial and political practices that do not match its real importance.
Valuing the standing forest
Currently, the pricing of socio-biodiversity production chains is based on traditional economic indicators and metrics, such as prices, costs and profits, which provides a limited view of the value and costs of these sectors. This is because they fail to adequately cover positive environmental, social and health impacts.
However, considering that socio-biodiversity products are based on standing forests and that they play a crucial role in mitigating and adapting to climate change, in addition to other ecosystem services, the value of this chain should be considered even greater.
The management of socio-biodiversity products develops from strong cultural ties and customs, and integrates a deep system of knowledge passed on from generation to generation by indigenous peoples and local communities. Recognizing, valuing and incorporating this dimension is fundamental to unlocking new financial resources for the Amazon, which can be directed towards significant social improvements, including access to health, education, basic sanitation, electricity, internet and other essential resources.
To achieve a fair price For these products, it is essential that the market pays values that reflect their economic, social and environmental contributions. This can be achieved through regulations, economic incentives and financial instruments that promote adequate remuneration, encouraging the adoption of fairer and more sustainable policies and actions.
Union of efforts in favor of socio-biodiversity
It is considered that, in 2019, spending on biodiversity conservation was between US$ 124 and US$ 143 billion. However, to reverse biodiversity decline by 2030, we need to spend between US$722 and US$967 billion per year. This means that the difference in financing needed to protect biodiversity is between US$ 598 and US$ 824 billion per year.
To cover this gap, it is necessary not only to increase the volume of financial resources for nature, but also to unlock and diversify other capital flows for biodiversity.
See examples:
- Associated public policies: Several public policies can be implemented to stimulate socio-biodiversity production chains and promote environmental conservation. National governments, through their budget allocations, represent the largest stable source of financing for nature. Therefore, it is crucial to direct financing, whether directly or indirectly, from national public budgets, through fiscal or regulatory instruments. Some examples of these policies are the Minimum Price Guarantee Policy for socio-biodiversity products (PGPMBio), the Amazon Fund and the Climate Fund.
- Private Features: While governments already play and must maintain a leadership role, alone they will not be able to provide the financing needed to protect global biodiversity. Likewise, philanthropic resources will not be sufficient for this purpose. Therefore, the private sector and markets are often presented as an opportunity and hope for nature conservation, as, in many cases, their financial resources far exceed those of governments and philanthropy. O Blended Finance could be an alternative in this sense. Learn more about this mechanism.
- Philanthropy: This can be an effective strategy to increase financial resources for the Amazon bioeconomy. Philanthropic capital can be used to act as seed venture capital or as a catalyst to attract private investment. Promoting socio-biodiversity chains can make them more structured and competitive, in addition to making new financing models for the region prosper.
Towards fair valuation
Associations, cooperatives and local organizations in the Amazon are mainly responsible for leading the discussion on the importance of valuing socio-biodiversity production chains, as well as being those that can guarantee a better distribution of resources and fairer remuneration for people.
To contribute to this transformation and achieve effective financing for biodiversity, it is necessary not only to increase the volume of financial resources for nature, but also to unlock and diversify other capital flows. Therefore, the public, private and philanthropic sectors must co-build shared solutions from the perspective of closing the current funding gap for biodiversity.
Do you want to understand how socio-biodiversity products should be valued? Download now our free study on the valuation of the sustainable management chain of arapaima in the Amazon and discover how we can promote a fair and sustainable valuation of people and nature.
