Publication:
Mobilizing Private Finance for Nature: A World Bank Group Paper on Private Finance for Biodiversity and Ecosystem Services

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dc.contributor.authorWorld Bank Group
dc.date.accessioned2023-09-25T21:33:27Z
dc.date.available2023-09-25T21:33:27Z
dc.date.issued2023-09-25
dc.description.abstractBiodiversity and ecosystem services, or nature for short, underpin many aspects of economic activity and are deteriorating at an unprecedented level, with potentially far-reaching implications for economies worldwide. Sustained ecosystem damage can trigger regime shifts and generate systemic impacts on human well-being and economies. For example, the degradation of natural ecosystems has been associated with an increase in the probability of emerging infectious diseases. The COVID-19 pandemic is likely an example of how the disturbance of ecosystems can have systemic consequences. As biodiversity is often seen as a public and therefore open access good, its conservation, restoration, and sustainable use rely heavily on scarce public sector finance. Simultaneously, governments are spending vast amounts to promote economic activities that are potentially harmful to biodiversity. This paper argues that governments and regulators, supported by financial institutions and multilateral development banks (MDBs), hold the key to mobilizing private finance at the scale needed to transform the way we build, produce, and consume to protect nature while fostering sustainable poverty reduction. The analysis looks at two key approaches to mobilizing private finance for biodiversity. First, it assesses opportunities for financing green, that is, the financing of projects that contribute, or intend to contribute, to the conservation, restoration, and sustainable use of biodiversity and its services to people. Second, it looks at greening finance, that is, directing financial flows away from projects with negative impact on biodiversity and ecosystems to projects that mitigate negative impact, or pursue positive environmental impact as a co-benefit. Despite growing innovation in both categories, significant challenges to scaling up private finance remain. These include policies that exacerbate the underpricing of biodiversity; lack of data, measurement, and reporting standards; and issues with biodiversity investment opportunities, which tend to be small scale and noncommercial, making private sector financing a challenge. The paper provides a set of recommendations for governments, regulators, companies, financial institutions, and MDBs. These are synthesized into a set of big five approaches to mobilize private finance for biodiversity: environmental fiscal reforms to realign incentives with sustainable practices; national biodiversity data provision and planning; the establishment of a Taskforce on Nature-related Financial Disclosures (TNFD) to support biodiversity reporting; the establishment of a Nature Action 100 to drive change in the companies whose activities most threaten biodiversity; and the provision of catalytic, concessional capital for biodiversity funds and projects.en
dc.identifierhttp://documents.worldbank.org/curated/en/099090423115515036/P170336065889807e0bf0405101cb127610
dc.identifier.doi10.1596/40393
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/40393
dc.languageEnglish
dc.language.isoen
dc.publisherWorld Bank, Washington, DC
dc.rightsCC BY-NC 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by-nc/3.0/igo
dc.subjectBIODIVERSITY FINANCE
dc.subjectBIODIVERSITY AND ECOSYSTEM SERVICES
dc.subjectFINANCIAL REGULATON
dc.subjectPRIVATE FINANCE FOR BIODIVERSITY
dc.subjectECOSYSTEM FINANCE
dc.titleMobilizing Private Finance for Natureen
dc.title.subtitleA World Bank Group Paper on Private Finance for Biodiversity and Ecosystem Servicesen
dc.typeReport
dspace.entity.typePublication
okr.crossref.titleMobilizing Private Finance for Nature: A World Bank Group Paper on Private Finance for Biodiversity and Ecosystem Services
okr.date.disclosure2023-09-05
okr.date.lastmodified2023-09-04T00:00:00Zen
okr.doctypeReport
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099090423115515036/P170336065889807e0bf0405101cb127610
okr.guid099090423115515036
okr.identifier.docmidP170336-658898b8-ae07-4b7e-bf04-5101cb127610
okr.identifier.doihttp://dx.doi.org/10.1596/40393
okr.identifier.externaldocumentum34155945
okr.identifier.internaldocumentum34155945
okr.identifier.report184766
okr.import.id1849
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099090423115515036/pdf/P170336065889807e0bf0405101cb127610.pdfen
okr.sectorCapital Markets,Insurance and Pension
okr.themeFinancial Sector oversight and policy/banking regulation & restructuring,Financial Stability,Economic Policy,Green Growth,Economic Growth and Planning,Finance
okr.topicEnvironment::Biodiversity
okr.topicEnvironment::Ecosystems and Natural Habitats
okr.topicEnvironment::Environmental Strategy
okr.topicInfrastructure Economics and Finance::Private Participation in Infrastructure
okr.unitEFI-FCI-Long-Term Finance (EFNLT)
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