Over half the world’s GDP – $44 trillion – is moderately or highly dependent on nature and its services. Without rapid and substantial shifts in capital flows, the loss of ecosystem services and biodiversity will be irreversible, potentially resulting in a destabilization of the financial system and devastating impacts on the global economy and on humanity. To accelerate this shift, a conducive framework is needed.
This report argues that creating a “common language” for nature-related criteria, based on common design features and robust scenarios, can provide a unique opportunity to align private and public financial flows with biodiversity objectives.
It focuses on two major building blocks of the G20 sustainable finance agenda, namely taxonomy-based investment frameworks and scenario analysis for forward-looking financial risk management frameworks.