Finance for Biodiversity (F4B) warmly welcomes the Dasgupta Review on the Economics of
Biodiversity for having set out the arguments for action on biodiversity and highlighting the role of finance:
"[there is] a need to identify and reduce financial flows that directly harm and deplete natural assets"
The Dasgupta Review places public finance at the heart of its recommendations, in particular removal of subsidies which cause material harm to biodiversity and nature.
Professor Dasgupta points out, that governments should rebalance their public asset portfolios to a Nature Positive Transition.
He makes clear the need for transparency, achieved through financial disclosure, and highlights the role of supervisors in requiring financial institutions to disclose material risks.
The Dasgupta Review has identified many of the elements which the Finance for Biodiversity Initiative has set out as necessary in our Framework for reform of the financial system.
In our note we outline in more detail how these can be put into practice and call for an ambitious and joined up approach by the Bank of England:
Given the Marshall Plan scale of Professor Dasgupta’s ambition, the UK Treasury should now convene the Bank of England and the supervisory authorities as part of a new Treasury Biodiversity Working Group. This should join up all relevant policy work within government and within financial supervision, while allowing the supervisors to continue their role at arm’s length.
We also highlight two missing ingredients : the role of citizens and their choices in directing finance, and the extension of liability for nature damage to financiers.