The Yerevan initiative brings governments, international organisations and businesses together to advance biodiversity-friendly spending, with success hinging on fair reforms and measurable changes in national budgets.

Yerevan Call seeks to turn the global pledge to reduce harmful incentives by at least $500 billion annually by 2030 into national action.

Armenia’s COP17 presidency on Monday launched a voluntary initiative to reform subsidies that damage biodiversity and expand incentives for conservation, aiming to translate a global commitment adopted in 2022 into changes in national budgets.

The initiative seeks to advance Target 18 of the Kunming-Montreal Global Biodiversity Framework, which calls for reducing harmful incentives, including subsidies, by at least $500 billion annually by 2030.

The figure represents an existing reform commitment rather than new funding announced in Yerevan. The target calls for fair and equitable action, beginning with the most damaging incentives, alongside greater support for conservation and the sustainable use of biodiversity.

The launch is a presidency-led initiative rather than a negotiated agreement adopted by all COP17 parties.

The initiative’s impact will depend on whether countries convert political support into changes in national budgets and incentive programmes, delivering measurable gains for biodiversity while protecting the livelihoods of producers and communities affected by reform.

From global pledge to national budgets

The package has three connected components. The Yerevan Call sets out the political ambition, while Friends of Target 18 provides a voluntary platform for countries to exchange experience and sustain cooperation beyond the conference.

The third component, the Yerevan Biodiversity Finance Challenge, will help governments design incentives that benefit nature, strengthen biodiversity finance planning and integrate biodiversity into public budgets.

Partners include the International Institute for Sustainable Development (IISD), the UN Development Programme and its Biodiversity Finance Initiative, the OECD and the Convention on Biological Diversity (CBD) Secretariat.

COP17 President and Armenian Environment Minister Hambardzum Matevosyan said governments must turn international commitments into practical action. He acknowledged that subsidy reform was complex because public support is closely tied to economic and social priorities and can affect sectors and communities differently.

“I’ve already stated that biodiversity issues should extend beyond the purview of environment ministries,” he said.

“This initiative is designed to ensure cooperation between the ministries of finance, agriculture, economy and development.”

Matevosyan invited countries to support the Yerevan Call and consider joining Friends of Target 18.

Making public support work for nature

CBD Executive Secretary Astrid Schomaker said some subsidies undermined the natural resources on which the sectors receiving support depended.

“Governments, of course, want to support economic sectors. They often have to support these sectors because people’s well-being depends on them. The debate isn’t about whether subsidies are necessary, but about what results they produce,” she said.

Schomaker stressed that environment ministries could not deliver the changes alone. Many relevant decisions rested with finance, economy, agriculture and energy ministries, while financial institutions also needed to participate.

Diego Mesa Puyo, chief executive officer and chairperson of the Global Environment Facility, described reform as an opportunity to protect nature while easing pressure on government finances.

“Changing subsidies or disincentives is a way to promote environmental protection while simultaneously expanding fiscal space,” he said.

“All governments around the world must achieve more with less.”

Reform of harmful incentives remains among the least advanced targets in the global biodiversity framework, according to IISD.

IISD President and Chief Executive Patricia Fuller said countries needed sustained assistance to turn commitments into results.

“Target 18 provides a unique opportunity to ensure public resources support rather than undermine our environmental commitments. But success requires political leadership, sustained international collaboration and practical support for countries to deliver change,” she said.

Businesses link reform to resilient supply chains

In reactions welcoming the initiative, business, finance and conservation leaders linked reform to the resilience of farms, supply chains and investment. They also emphasised the importance of supporting producers through the transition.

Christopher Adamo, Danone’s head of global sustainability impact and B Corp, highlighted the pressures facing farmers.

“Farmers are our key stewards of soil and water; yet they face growing economic and environmental pressures,” he said.

“No company can drive this transition alone. The right incentives and policies can accelerate the transition while strengthening the competitiveness, resilience and long-term viability of agricultural systems.”

Raphaëlle Archambeaud-Sicot, chief sustainability officer at L’Occitane en Provence, said business resilience depended on healthy ecosystems.

“When nature is degraded, our supply chains are degraded too. Yet public money still too often rewards harmful practices rather than incentivizing sustainable ones,” she said.

Jacco Minnaar, chief commercial officer and a board member of Triodos Bank, called for public policy and financial institutions to work together to change investment patterns.

“Too much capital still flows towards activities that drive nature loss, while too little supports nature,” he said.

“Financial institutions have a responsibility to redirect capital, but governments also have a crucial role in changing the incentives that shape where capital flows.”

Anita de Horde, executive director of the Finance for Biodiversity Foundation, warned that contradictory public incentives could undermine efforts to mobilise private investment.

“We cannot ask financial institutions to align their activities and investments with nature while public incentives continue to pull capital in the opposite direction,” she said.

Arup’s global nature leader, Tom Butterworth, said investment decisions would have consequences lasting well beyond the conference.

“The decisions we make about places and infrastructure today will shape communities, economies and ecosystems for decades to come,” he said.

“Investment needs to restore nature, deliver local benefits and build resilience to a changing climate. Achieving that requires fiscal and financial incentives that make nature-positive outcomes the most attractive and competitive choice.”

Fair reforms and measurable results

Business for Nature chief executive Eva Zabey said more than 130 businesses and financial institutions had signalled support for the agenda.

“The focus now should be on fair, phased reforms that work for producers and help make sustainable production the competitive choice,” she said.

FAIRR Initiative Executive Director Abigail Herron urged governments to redirect agricultural support towards sustainable practices.

“Public money should work for nature, not against it,” she said.

“By accelerating subsidy repurposing, governments can redirect harmful support towards incentives that reward sustainable agriculture, while unlocking progress across the wider Global Biodiversity Framework.”

Conservation International Executive Director Patricia Zurita called for redesigning public support to reward sustainable practices.

“Reform means redesigning how that support is delivered: keep the goal, change the incentive,” she said.

“The message is simple: governments can and should spend better, not more.”