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Speakers at the Finance in Common Summit reference F4B work on development finance
16 November 2020, 00:00:00
At the 2020 Finance in Common Summit last week the Finance for Biodiversity Initiative's work on aligning development finance with biodiversity was highlighted. Carlos Manuel Rodriguez, CEO of the Global Environment Facility, Elizabeth Maruma Mrema, Executive Secretary of the UN Convention on Biodiversity and Jorim Schraven. Director Strategy, FMO Bank all highlighted the importance of development banks stress testing their portfolios for impacts on nature.
At the 2020 Finance in Common Summit last week the Finance for Biodiversity Initaitive's work on aligning development finance with biodiversity was highlighted in the session on building back better with a biodiversity-positive economy. You can watch the video here
Carlos Manuel Rodriguez, CEO of the Global Environment Facility (GEF), and former Energy & environment minister of Costa Rica leading the session said (at 9 minutes) said:
"Yesterday one of the most important reports that I’ve seen this year, which was published by the Finance for Biodiversity initiative, called “Aligning Development Finance with Nature’s Needs: Protecting Nature’s Development Dividend”. It tells us that development finance institutions are endangering nature with an expected value of US$1.1 trillion. This is the first analysis to place a monetary value on a financial institution’s potential harm on nature.”
Elizabeth Maruma Mrema, Executive Secretary of the UN Convention on Biodiversity also mentioned the report and said (at 15 minutes):
“I believe that the financial sector, and in particular the public development banks, have a key role to play in the transformation of economic sectors, by financing biodiversity-positive, friendly economies....
So by managing the risks, dependencies and impacts of their investments on biodiversity, by mobilising funding for the pro-nature economy, by helping public policies to create an enabling environment to attract private funding, by leveraging investments in nature based solutions, you [DFIs] will contribute to boosting economies for people and biodiversity, and a safety net against future systemic risks.
The public development banks’ engagement will facilitate the recovery of natural ecosystems as well as contribute to achieving the Paris Agreement on climate change, as biodiversity loss and climate change are intrinsically interconnected. I am therefore really counting on the public development banks and I hope really to see commitments for biodiversity finance in the coming months.”
Closing the session Carlos Manuel, highlighted F4B's recommendation for development finance insitutions to undertake and publish balance sheet wide stress tests of nature related financial risks and impacts. (at 1 hour)
Jorim Schraven. Director Strategy, FMO Bank responded:
“We are working hard on the stress management of climate risk and i think biodiversity stress management is likely to be next. We also have the EU taxonomy coming on that. It is crucial to understand these risks and if you look at just the dependency on ecosystem services it is very large. We must all start to measure the impact of biodiversity on our own portfolios as well as of our own portfolios and then i think we can move to changing and shifting our value chains to the positive impact space which is absolutely necessary, as well as avoiding some of the highest exposed sectors that we are currently being exposed to by investing in ecosystem services dependent investments. "