Yerevan, Armenia – As Armenia prepares to host the COP17 this October, the country is taking important steps to ensure that protecting nature is supported not only by ambitious policies, but also by the financial systems needed to turn those ambitions into lasting action.

Biodiversity is often associated with expanding protected areas, restoring ecosystems or conserving endangered species. Yet behind these efforts lies another essential question: how can nature be financed in a way that is sustainable, effective and capable of delivering long-term impact?

This question was at the center of a national validation workshop organized by the United Nations Development Programme (UNDP) under the Biodiversity Finance Initiative (BIOFIN). Bringing together representatives from government institutions, academia, civil society and the private sector, the workshop reviewed the findings of Armenia's first comprehensive assessments of biodiversity finance and marked an important milestone towards developing the country's first Biodiversity Finance Plan.

Financing Nature for the Future

Biodiversity underpins healthy ecosystems, food production, clean water, climate resilience and countless economic activities that support people's livelihoods. Yet around the world, biodiversity continues to decline, highlighting that stronger environmental commitments alone are not enough.

Ensuring that nature continues to provide these vital benefits requires smarter investment, more effective public spending, stronger institutions and greater engagement from both the public and private sectors.

This is precisely the purpose of the BIOFIN initiative. Rather than looking only at how much additional funding is needed, BIOFIN helps countries understand how existing financial resources are being used, where efficiencies can be improved, how financial incentives can better support biodiversity, and how new sources of investment can be mobilized.

For Armenia, this means embedding biodiversity considerations more systematically into economic planning, budgeting and investment decisions, ensuring that nature becomes an integral part of sustainable development rather than a standalone environmental concern.

Building Evidence for Better Decisions

The workshop presented the findings of two key national assessments—the Policy and Institutional Review (PIR) and the Biodiversity Expenditure Review (BER)—which together provide the most comprehensive picture to date of how biodiversity is financed in Armenia.

The analyses show that Armenia has established an important legal and institutional framework for biodiversity conservation. At the same time, they identify opportunities to strengthen financial planning, improve policy implementation, modernize financing mechanisms and attract greater investment into biodiversity conservation and the sustainable use of natural resources.

The assessments also demonstrate that Armenia's rich natural capital is not only an environmental asset, but also an important contributor to economic development and human well-being. Recognizing this value more systematically in public planning, budgeting, environmental assessments and investment decisions will help ensure that economic growth and nature conservation reinforce one another.

Investing Smarter, Not Simply Spending More

One of the strongest messages emerging from the workshop was that biodiversity finance is not simply about increasing budgets. Participants emphasized the importance of making biodiversity-related expenditure more visible, better targeted and more closely linked to measurable biodiversity outcomes. While public investment in biodiversity has grown in recent years, ensuring that these resources are strategically prioritized and effectively managed will be equally important for achieving long-term results.

The discussions also highlighted opportunities to strengthen biodiversity-positive incentives, review subsidy mechanisms, attract greater private sector engagement and better align international support with national priorities. Together, these measures can help create a financing system that rewards sustainable practices while supporting economic development and community well-being.

Laying the Foundation for Armenia's Biodiversity Finance Plan

The workshop also marked an important validation milestone in Armenia's BIOFIN process.

The findings of the Policy and Institutional Review (PIR), the Biodiversity Expenditure Review (BER) and the ongoing Financial Needs Assessment (FNA) will together provide the evidence base for the development of Armenia's Biodiversity Finance Plan (BFP)—the flagship product of the BIOFIN initiative.

Closely aligned with Armenia's National Biodiversity Strategy and Action Plan (NBSAP), the Biodiversity Finance Plan will help translate national biodiversity priorities into practical, financeable actions. It will identify and prioritize a portfolio of realistic financial solutions capable of mobilizing new investment, improving the effectiveness of existing expenditure and strengthening biodiversity governance across sectors.

Importantly, the BER also lays the groundwork for a future biodiversity budget tagging system, helping make biodiversity-related expenditure more visible, systematically classified and more clearly linked to national priorities and global biodiversity targets.

From National Action to Global Leadership

The timing of this work is particularly significant. As Armenia prepares to welcome the international community for CBD COP17, the country has a unique opportunity not only to host global discussions on biodiversity, but also to demonstrate how international commitments can be translated into practical national action. The BFP represents one of the country's important steps in that direction. By strengthening the way biodiversity is financed, improving the effectiveness of public investment and creating conditions for broader engagement across society, Armenia is laying the financial foundation for healthier ecosystems, more resilient communities and sustainable economic growth.

Through BIOFIN, UNDP continues to support the Government of Armenia in turning evidence into action—helping ensure that biodiversity is recognized not only as one of the country's greatest natural treasures, but also as a strategic investment in Armenia's future.