The Interface Dialogue Finance & Biodiversity

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 of biodiversity loss.

This session presents a paper developed by Nature^Squared and Arcadis as part of the SUSTAIN project, that analyses the policy landscape as a whole and 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 have been held. From the 10 NPPs, three key principles that distinguish between Nature Positive and Do No Harm aligned policy instruments have been 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 of this study can be summarized as follows:

• 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, 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 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 organizations 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

Download: sheets of this session

During this session, we shared insights on the development of a National Biodiversity Finance Plan, building on lessons learnt 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 mobilizing private finance for nature, and what the on-the-ground reality means for NBFPs to be effective. Finally, Alexander Verkerk from the Government of The Netherlands shared where they are in their process of NBFP development. After these introductions, we opened the floor for discussions.

Download: A Budget for Biodiversity

Dowload: slides of the session