In December 2022, 196 parties signed the Kunming-Montreal Global Biodiversity Framework (GBF), committing to halt and reverse biodiversity loss by 2030 and live in harmony with nature by 2050. This commitment underscores the importance of a healthy environment for human well-being and economic prosperity. However, achieving these goals will require a significant shift across the entire economy and society. Despite the increasing recognition of the need for nature-positive interventions, financing towards nature remains insufficient, with a $700 billion annual shortfall.
To address the $700 billion annual nature financing gap, this report provides a comprehensive roadmap for businesses to develop and implement a nature strategy and a nature finance action plan. The roadmap focuses on biodiversity credits but is broadly applicable to other nature financing mechanisms like payments for ecosystem services (PES), green bonds, or nature-linked loans.
The health of the natural world continues to decline. Wildlife populations have decreased by 69% on average over the past 50 years, and the stock of natural capital per person has dropped by 40% from 1992 to 2014. GDP per capita has more than doubled over the same period. Closing the nature financing gap of approximately $700 billion annually is crucial to halt and reverse biodiversity loss.
This section provides an overview of the key components needed for implementing and financing nature-positive actions, specifically a nature strategy and a nature finance action plan.
Developing a nature strategy involves:
The nature finance action plan consists of four steps:
By defining a nature strategy and a corresponding nature finance action plan, businesses can make meaningful progress in advancing their nature-positive agendas and ensure economic prosperity while closing the nature financing gap.
To achieve the goals set by the Kunming-Montreal Global Biodiversity Framework, businesses must address the $700 billion annual financing gap. This involves developing a nature strategy and a nature finance action plan, focusing on biodiversity credits. The roadmap provides a structured approach to align corporate ambitions with environmental goals, ensuring transparency and effective resource allocation.