How can economic incentives motivate companies to help protect and enhance biodiversity? Working together with the Institute for Ecological Economy Research (IÖW), we are exploring this question in a research project commissioned by the German Federal Agency for Nature Conservation (BfN).The focus is on small and medium-sized enterprises and their options for taking voluntary action that goes beyond legal requirements. Economic incentive instruments influence business decisions through costs and benefits: grants and other positive incentives reward nature-friendly practices, while levies and other negative incentives make harmful ones more expensive.
In the project, we identify and classify existing economic instruments and examine how they are applied in national and international contexts. Three selected instruments are assessed in depth – including their effectiveness, their efficiency and their applicability in different business contexts. Complementary case studies provide insights into practical implementation and help identify success factors, barriers and preconditions for additional contributions to biodiversity conservation. On this basis, we develop practical recommendations for policymakers and public administrations to support the selection, design and further development of suitable incentivising instruments. The project thus contributes to the implementation of Germany‘s National Biodiversity Strategy 2030.
