Economics, Trade and Incentive Measures

Biodiversity generates and helps to maintain the supply of many ecosystem services that are essential for human well-being and economic development. Numerous studies have underscored the considerable economic value of these goods and services. For instance, global benefits from coral reefs including tourism, fisheries and coastal protection are estimated at some US$30 billion per year; insect pollination of over 40 commercial crops in the United States alone at US$30 billion per year. The market for herbal drugs amounted to US$47 billion in 2000.

Many biodiversity-based ecosystem services are not traded on markets, and their value is not properly reflected in market prices. The economic work under the Convention seeks to promote the valuation of these services, and to introduce measures that correct the incentives of individuals, governments and companies towards more effective conservation and sustainable use of biodiversity, such as promoting the trade of biodiversity-based goods that are produced in a sustainable manner. It also seeks to ensure the mutual supportiveness of international trade rules and the objectives of the Convention.