One takeaway from the development of climate finance is that multiple initiatives can become a resource drain on financial institutions and can have the counter-effect of slowing progress by promoting divergent messages. In the case of biodiversity there are several well-established initiatives already underway that institutions can join. In addition to practical frameworks and partnerships mentioned in Recommendation 1, there is the chance for shared learning within the Natural Capital Investment Alliance, and shared public commitment with the Finance for Biodiversity Pledge.
Greater collaboration between all biodiversity finance initiatives is welcomed, particularly in the lead up to both COP15 and COP26.
Given the local nature of biodiversity-related issues and their solutions, it is vital that global financial institutions also collaborate with local banks. Local banks play an instrumental role in supporting sustainable supply chains and providing loans to nature-dependent businesses. Their needs must be considered lest large banks curb nature-negative lending only for smaller banks to seize an opportunity to step in to fill the gap.
Moving beyond collaboration between global and local financial institutions, there is also a much-needed role at country level for networks for shared learning and best practices, particularly in countries where domestic environmental regulation is weak or risk of biodiversity loss severe. For example, domestic NbS networking and knowledge hubs that connect businesses, project developers, advisors, and policymakers with the finance sector.
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