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Nature
Biodiversity finance
Moving from agreement to action by closing the global biodiversity financing gap
Business as usual is no longer an option
The time to unlock financing for biodiversity protection is now.
We know that this decade will be critical for action on nature, to turn the tide on biodiversity loss.
Engaging the private sector is a key element of the global green transition. Better information to incorporate nature-related risks and opportunities into private sector strategic planning, risk management, and asset allocation decisions will support this shift, convincing businesses to opt for nature-based solutions rather than overexploitation and environmental destruction.
A new nature-positive economy could generate up to $10.1 trillion in annual business value and create 395 million jobs by 2030. This $10 trillion of business opportunities could be unlocked by transforming the economic systems that are responsible for almost 80% of nature loss: food, infrastructure, energy and extractives.
Transformational change
UNDP is supporting ambition on biodiversity finance by fostering three systemic changes:
Transform finance, by redirecting and realigning public and private finance flows from nature- and climate-harmful to nature-positive expenditures and subsidies;
Transform global production and consumption by achieving bold shifts in planning and practices of agriculture, fisheries, extractives, apparel and infrastructure sectors;
Catalyze behavioural change and convene new dialogues with diverse stakeholders.
Three ambitious UNDP-supported finance initiatives
The Biodiversity Finance Initiative (BIOFIN) is one such tool that was developed by UNDP in 2012 and adopted in 123 countries globally as of 2023. The tool supports countries to develop and implement ‘Biodiversity Finance Plans’, select from among 150+ finance solutions, and implement the most effective solutions. BIOFIN is working with governments and the private sector to demonstrate how tailored investments not only protect nature, but also create jobs, reduce the impact of pandemics, and combat climate change.
UNDP is a co-founder of the Global Fund for Coral Reefs (GFCR), administered by the UN Multi-Partner Trust Fund office.
UNDP is also the co-founder of the Taskforce on Nature-related Financial Disclosures (TNFD), comprising 33 financial and corporate institutions, launched in June 2021. The Taskforce aims to establish a reporting framework for financial institutional risk, dependencies and impacts on nature, to redirect financing from nature-destructive investment to nature-nurturing and regenerative investments.
UNDP Nature Pledge Transformational Systems Shift Approach
Through our Nature Pledge, three interconnected shifts will be advanced, which are needed for countries to transform the global economic, financial, social and political systems that are perpetuating unsustainable consumption of our natural resources in ways that threaten lives and livelihoods.
One of the three main shifts is an Economic and Finance shift that supports a transition from a nature-negative to nature-positive economy.
The Global Biodiversity Framework's financial targets
Target 19: The goal is to substantially and progressively increase the level of financial resources from all sources, in an effective, timely and easily accessible manner, including domestic, international, public and private resources, in accordance with Article 20 of the Convention, to implement national biodiversity strategies and action plans, mobilizing at least $200 billion per year by 2030, including by:
- Increasing total biodiversity-related international financial resources from developed countries, including official development assistance, and from countries that voluntarily assume obligations of developed country Parties, to developing countries, in particular the least developed countries and small island developing States, as well as countries with economies in transition, to at least $20 billion per year by 2025, and to at least $30 billion per year by 2030;
- Significantly increasing domestic resource mobilization, facilitated by the preparation and implementation of national biodiversity finance plans or similar instruments according to national needs, priorities and circumstances;
- Leveraging private finance, promoting blended finance, implementing strategies for raising new and additional resources, and encouraging the private sector to invest in biodiversity, including through impact funds and other instruments;
- Stimulating innovative schemes such as payment for ecosystem services, green bonds, biodiversity offsets and credits, and benefit-sharing mechanisms, with environmental and social safeguards;
- Optimizing co-benefits and synergies of finance targeting the biodiversity and climate crises;
- Enhancing the role of collective actions, including by indigenous peoples and local communities, Mother Earth Centric Actions and non-market-based approaches, including community- based natural resource management and civil society cooperation and solidarity aimed at the conservation of biodiversity;
- Enhancing the effectiveness, efficiency and transparency of resource provision and use.
