The Interface Dialogue Finance & Biodiversity

Unlocking Investment for GBF Target 19C: Blended Finance for Nature with a Landscape Approach

This session consisted with the presentation of a series of tangible, successful case studies showcasing how cooperation between public actors, private finance and local stakeholders can result in financially sustainable, equitable and biodiversity-positive outcomes at a landscape level, building on and contributing to targets 10, 11, 14, 15, 18 and 19 of the Global Biodiversity Framework (GBF). The case studies emphasised how blended finance solutions, when implemented at a landscape scale, can play a pivotal role in building the business case for both private and public finance, contributing to National Biodiversity Plans, climate mitigation and adaptation targets, and a socially just transition.

The case studies were presented by practitioners that have experience working with these projects on the ground, including local stakeholders, government, and private finance representatives. Key success factors and opportunities for upscaling were discussed in an expert panel that concluded with developing recommendations for follow-up action.

Objectives of session:

• To show that mobilising private finance on a landscape level, benefiting both biodiversity and local communities, is feasible and scalable.
• Sharing insights, lessons learned and best practices on blended finance for nature from case studies all over the world which may serve as inspiration to attending organisations and for the development and implementation of NBFPs.
• To provide recommendations for scaling and replicating solutions, highlighting success factors and opportunities for upscaling.

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Changing the Rules of the Game

In light of the adoption of the 2022 Kunming-Montreal Global Biodiversity Framework (GBF), developing an ambitious and effective enabling environment for engaging business on action for nature is an essential component of achieving Nature Positive. The current ‘rules of the game’ must be reformed and transformed to push economic systems towards being in harmony with nature and contributing to halting biodiversity loss.

This session presented the findings of a paper, developed by Nature^Squared and Arcadis as part of the SUSTAIN project, analysing the policy landscape as a whole and across specific (predominantly EU-level) mechanisms to assess whether they will contribute to Nature Positive outcomes. For this assessment, desk research, an analytical framework based on the Nature Positive Principles (referred to as NPP 1 – 10), interviews, and validation workshops with leading experts were conducted. From the 10 NPPs, three key principles that distinguish between Nature Positive and Do No Harm aligned policy instruments were identified:

• Positive Outcomes (across value chains).
• Going Beyond (the mitigation hierarchy).
• Dare to Transform (strategies and systems).

Key findings and recommendations

The key findings and recommendations presented for discussion in this workshop are::

• To achieve Nature Positive, nature harmful policies and incentives need to be eliminated or reformed, and a paradigm shift is needed from Do No Harm to Nature Positive thinking, both in policy ambition and business action.
• The business and financial communities have demonstrated proof of concept for approaches that contribute to shifting towards a Nature Positive future, policymakers must now break the deadlock of the Triangle of Inaction (see Figure 2) to shape this future by changing the rules of the game and mainstreaming Nature Positive across all policy aims.
• The three key Nature Positive principles (Positive Outcomes, Going Beyond, and Dare to Transform) need to be used to evaluate existing policy instruments and should be integrated into future policy development.
• A Nature Positive future can only be achieved using a whole-of-government approach, meaning policies and instruments across all levels and policy areas must be evaluated and reformed.
• Policy instruments should be assessed not only by their features but also by the specific properties thereof (such as enforceability, scope, and rigor), and on how they interact with other policy instruments.
• In addition to government, the financial sector is a key enabler of transformative change. By shifting investments and risk management practices, financial organisations have the power to accelerate Nature Positive outcomes. This can be catalysed by the financial sector itself, but even more so by financial regulators, with the right policy framework in place.
• To deliver on GBF Target 15, current disclosure regulation should be complemented with mandatory requirements to develop, disclose, and implement Nature Positive transition plans.
  
  

Download: Changing the Rules of the Game thought paper

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Practical Approaches to Developing a National Biodiversity Finance Plan (NBFP)

During this third session, we shared insights on the development of National Biodiversity Finance Plans (NBFPs), building on lessons learned from the IDFB community and the BIOFIN approach, which are presented in the IDFB thought paper A Budget for Biodiversity. Jan Willem den Besten from IUCN shared his perspective based on his experience of working with mobilising private finance for nature, and what the on-the-ground needs are for NBFPs to be effective. Finally, Alexander Verkerk from the Government of The Netherlands shared where the Dutch government is in the process of developing an NBFP. After these presentations, the floor was opened for discussion with participants.

Download: A Budget for Biodiversity

Download: Slides of the session