All stakeholders in financial and capital markets are reckoning with the challenge of Biodiversity Finance – from central banks and supervisors, institutional investors, stock exchanges and bond markets, to standard setters, ratings agencies and data providers.
The link between climate and biodiversity action is becoming clearer . Climate change is one of the primary drivers of the natural world’s decline but mitigation and adaptation efforts are made considerably more challenging by the continued plundering of natural resources, which in turn causes further destruction of the natural world and exacerbates the climate emergency.
Increasingly, governments and communities are seeking actions that address both challenges together. Among these includes increased attention and recourse to Nature-based Solutions . At the FC4S 2020 Annual General Meeting, the secretariat proposed exploring the emerging topic of Biodiversity Finance with a view of adding it to the FC4S work programme.
A Working Group was established and, in collaboration with technical experts, identified key facets of the issue through a mapping exercise. The group then helped to draw up a Biodiversity Finance Action Plan that addresses the needs of financial centres. The Working Group addressed five facets of Biodiversity Finance:
1. Transparency and disclosure
4. Promoting a “Nature Positive” norm
5. New financial instruments