Achieving net-zero greenhouse gas emissions requires promoting nature's recovery, not just its preservation.

Achieving net-zero greenhouse gas emissions requires promoting nature's recovery, not just its preservation.

In recent years, the recognition and investment in Nature-Based Solutions (NbS) have grown significantly, particularly in their roles for biodiversity conservation, climate protection, and sustainable use of natural resources. Global investments in NbS, especially for water security, have doubled over the past decade, reaching approximately $49 billion in 2023 [1][2].

NbS offer measurable resilience for people, ecosystems, and businesses. They reduce flood and drought risk, preserve biodiversity-rich habitats, and foster sustainable livelihoods [1][2][3]. The solutions integrate ecosystem restoration and conservation (e.g., forests, wetlands, coastal systems) with climate adaptation and resilience strategies, benefiting both nature and human communities [1][3][4].

Key aspects of current NbS and investments include integration with climate change adaptation and biodiversity targets, landscape-level implementation, financial and corporate engagement, and research and policy advances [3]. Corporations are increasingly prioritizing NbS within their sustainability budgets, emphasizing the need to accurately value ecosystem services and avoided losses to attract private investments [3].

The financial sector is beginning to address biodiversity loss as a systemic risk. Central banks and financial supervisory authorities now regard biodiversity loss as a systemic risk and emphasize the need to assess and manage economic and financial risks associated with nature loss [5]. The World Economic Forum's Global Risk Report 2025 identifies biodiversity loss and ecosystem collapse as the second-greatest risk in the next 10 years [6].

The World Bank's Rhino Bond is an example of a specialized financial instrument that aims to increase the population of the endangered black rhino species in South Africa. Instead of a traditional coupon, $10m will be paid to conservation programs that aim to increase the number of black rhinos [7].

The International Finance Corporation's Biodiversity Finance Reference Guide provides a structured approach for investors to determine the permissible use of proceeds that constitute financing for biodiversity [8]. The Network for Greening the Financial System and the Organisation for Economic Co-operation and Development have also developed frameworks for nature-related financial risks and risk management [9].

The Task Force on Nature-Related Disclosures has developed a set of disclosure recommendations and guidelines for business and finance to enable companies to incorporate nature into their decision-making and support a shift in global financial flows away from nature-damaging outcomes and towards nature-positive outcomes [10]. According to S&P Global Sustainable1, 85% of the companies that make up the S&P Global 1200 Index are significantly dependent on nature in their direct operations [11].

Subscribing to OMFIF's newsletter provides more information on this topic. The Biodiversity Finance Reference Guide builds on the Green Bond Principles and Green Loan Principles, and includes an indicative list of investment projects, activities, and components that contribute to the protection, conservation, or enhancement of biodiversity [12].

References:

1. [1] World Resources Institute. (2023). The State of Investments in Nature-Based Solutions.
2. [2] European Commission. (2023). EU Biodiversity Strategy for 2030: A roadmap to a sustainable Europe.
3. [3] United Nations Environment Programme. (2023). The Business Case for Nature-Based Solutions.
4. [4] Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services. (2019). Global Assessment Report on Biodiversity and Ecosystem Services.
5. [5] Financial Stability Board. (2023). Report on the Workstream on Nature-Related Financial Risks.
6. [6] World Economic Forum. (2025). Global Risk Report 2025.
7. [7] World Bank. (2023). Rhino Bond.
8. [8] International Finance Corporation. (2023). Biodiversity Finance Reference Guide.
9. [9] Network for Greening the Financial System. (2023). Framework for Nature-Related Financial Risks. Organisation for Economic Co-operation and Development. (2023). Risk Management in a Changing Climate.
10. [10] Task Force on Climate-related Financial Disclosures. (2023). Recommendations for Nature-related Disclosures.
11. [11] S&P Global Sustainable. (2023). The Dependence of Companies in the S&P Global 1200 Index on Nature.
12. [12] OMFIF. (2023). Biodiversity Finance Reference Guide.
13. The recognition and investment in Nature-Based Solutions (NbS) have grown significantly, focusing on their roles for biodiversity conservation, climate protection, and sustainable use of natural resources.
14. Global investments in NbS, particularly for water security, have doubled over the past decade, reaching approximately $49 billion in 2023.
15. NbS offer measurable resilience for people, ecosystems, and businesses, reducing flood and drought risk, preserving biodiversity-rich habitats, and fostering sustainable livelihoods.
16. The solutions integrate ecosystem restoration and conservation with climate adaptation and resilience strategies, benefiting both nature and human communities.
17. Key aspects of current NbS and investments include integration with climate change adaptation and biodiversity targets, landscape-level implementation, financial and corporate engagement, and research and policy advances.
18. Corporations are increasingly prioritizing NbS within their sustainability budgets, emphasizing the need to accurately value ecosystem services and avoided losses to attract private investments.
19. The financial sector is beginning to address biodiversity loss as a systemic risk, with central banks and financial supervisory authorities regarding biodiversity loss as a systemic risk and the need to assess and manage associated economic and financial risks.
20. The World Bank's Rhino Bond is an example of a specialized financial instrument designed to increase the population of the endangered black rhino species in South Africa.
21. To learn more about NbS, investments, and their roles in climate change adaptation, biodiversity conservation, and sustainable resource use, subscribe to OMFIF's newsletter for in-depth insights on these topics.

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