Financing Nature: closing the biodiversity financing gap


Financing Nature, A new report by our partners The Paulson Institute and The Nature Conservancy (both participants in the debt for nature working group) highlights a $700 billion annual funding gap for biodiversity, as well as the $500 billion per year spent by governments in economic support that is harmful to biodiversity.


The report highlights opportunities for ‘financing green'; mobilizing private finance for projects that contribute to the conservation, restoration, and sustainable use of biodiversity and ecosystem services and ‘greening finance’ directing broader financial flows away from projects with a negative impact on biodiversity and ecosystems.


The global bond markets increased from US$ 87 trillion in 2008 to more than US$255 trillion in 2019, driven by the growth of bond issuance in the public and private sectors, primarily in emerging markets. Of this, green debt represents a small (<0.5%) but growing segment of the bond markets.


The report references F4B's work on sovereign debt.


The debt crisis derived from the COVID-19 pandemic and linked economic downturn demands a critical global economic response, but it also represents an opportunity to support the issuance of biodiversity-related green debt products by developing countries, with the integration of biodiversity targets into new debt agreements, reducing the cost of capital and ensuring the protection of natural assets.

FINANCE FOR BIODIVERSITY Initiative

contact@f4b-initiative.net

+44 (0) 844 8000 254

© 2020 FINANCE FOR BIODIVERSITY Initiative

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