Setting the Stage: The Essential Role of Nature
Nature enables our social, economic, and cultural lives. Without nature we cannot obtain food, water or air, we cannot ensure a livable climate, or pursue our livelihoods, health and happiness. Yet, between 1970 and 2020, we lost over 70% of the planet’s wildlife. Reversing the biodiversity crisis will require $700 billion and we must address an annual funding gap of $200 billion.
2024 was rich with global convenings: UNFCCC COP29, CBD COP16 and UNCCD COP16. At CBD COP16, only 44 out of 196 nations submitted biodiversity strategies. The funding mechanisms also underscored the on-going challenges, with only $136 million pledged to the Global Biodiversity Framework Fund (GBFF), far from the $20 billion annual target.
Having said this, the establishment of a permanent body in charge of Indigenous people and local communities was a critical decision and the saving grace of the convention.
1. Corporate Accountability through TNFD and SBTN1
Companies are steppingup, with the Taskforce on Nature-related Financial Disclosures (TNFD) collaborating with over 500 companies, including financial institutions managing $17.7 trillion. Meanwhile, the Science Based Targets Network (SBTN) launched its first pilot to create highly transparent biodiversity reports based on scientific data. These frameworks are increasing the potential for companies to integrate nature and biodiversity into their future decision-making processes.
2. Innovation in Nature-Tech Ventures
Technologies likesatellite-enabled reforestation tracking and AI biodiversity analytics are attracting $2 billion in private investment, showcasing the role of innovation in tackling biodiversity issues.
3. Unlocking Bioengineering Applications with Digital Sequence Information (DSI)
The Cali Fund created at CBD COP16 promises equitable sharing of profits derived from genetic resource applications of animals, plants or microorganisms with indigenous people and local communities. It aims to foster collaboration between sectors while highlighting ethical questions that need more global attention and consensus.
4. Emergence of Biodiversity Credits
Since this mechanismwas re-considered in the Kunming-Montreal Global Biodiversity Framework (GBF) in 2022, over 35 methodologies have been developed. Some estimate biodiversity credits could generate $69 billion annually, creating new revenue streams for conservation projects and offering the private sector viable returns if existing headwinds are fully addressed.
5. Blended Finance as a Catalyst
Creative financial tools,like the $300 million Bahamas Debt Conversion Project, demonstrate how public, philanthropic, and private funds can be combined to support conservation efforts.
6. Financing Guidance: A New Compass
The IFC's Biodiversity Reference Guide and impact reporting metrics provide clear pathways for
investors, harmonizing biodiversity finance with established principles like ICMA's Green Bond Standards and TNFD.
The Challenges: Unfinished Work
Significant barriers remain, such as:
- Harmful Subsidies: Estimated at $2.5 trillion annually, these subsidies undermine conservation efforts.
- Data and Strategic Gaps: Inadequate outcome-based biodiversity data and delayed national strategies hinder the scaling of impactful initiatives.
Beyond Carbon
Let us end with the rallying cry: "Biodiversity is not anadd-on to climate action but its foundation." At J-IIN, we will continue to focus on mainstreaming nature and biodiversity into economic models – a fundamental change we believe must be achieved – and give voice to the private sector so that it may emerge as a pivotal actor in securing a sustainable future for our planet.