FfB: Aligning financial flows with the GBF

23 april 2024

The Finance for Biodiversity (FfB) Foundation proudly announces the publication of the paper 'Aligning Financial Flows with the Global Biodiversity Framework: Translating Ambition into Implementation'.

Crafted in collaboration with leading financial institutions, this document outlines key actions governments can take to align financial flows with the Kunming-Montreal Global Biodiversity Framework (GBF). The role of the private sector in addressing biodiversity loss should be clearly articulated in National Biodiversity Strategies and Action Plans (NBSAPs), which countries must submit ahead of COP16, and National Biodiversity Finance Plans (NBFPs).

Developed by the Public Policy Advocacy working group of the FfB Foundation, the paper offers four recommendations, thirteen actions and concrete global examples of successful implementation, with a focus of Targets 14, 15, 18 and 19 of the GBF. The goal is to empower governments and policymakers to enact meaningful change and create an enabling environment for financial institutions, in line with the mission of halting and reversing biodiversity loss by 2030.

'This is a powerful call from investors for governments to strengthen, broaden and accelerate their national biodiversity policies and strategies. To protect both biodiversity and the economy, governments must enact policies to support investor action. Never has the need for a bold, effective, and coordinated response on nature been more pressing, and we urge governments to heed these calls and take action ahead of COP16', says Emine Isciel (Storebrand AM), co-chair of the Public Policy Advocacy working group.

The paper advocates for a comprehensive 'whole-of-government' strategy, urging governmental bodies, regulators, central banks, and financial supervisors to mobilise voluntary action and commitments from the private sector. By fostering innovation, aligning incentives, and setting clear boundaries, governments can steer sectoral pathways towards reducing negative impacts, increasing positive impacts, and catalysing private finance at scale to bridge the current biodiversity finance gap.

'The agreement reached at COP15 in Montreal sent a strong signal about the importance and urgency of tackling biodiversity loss alongside climate change. Transformation across a range of economic sectors will be required to ensure resilient economies, alongside human and planetary health. Governments should take steps to create an enabling environment for investors to effectively manage their nature-related risks and opportunities. We hope these recommendations will support the much-needed shift from ambition to implementation, and look forward to continuing the dialogue with key stakeholders in the run up to COP16', says Sonya Likhtman (Federated Hermes Limited) co-chair of the Public Policy Advocacy working group.

Key Recommendations

The four key recommendation that are addressed in the paper are:

1. Require companies and financial institutions to assess, monitor, and disclose their nature-related risks, impacts, dependencies, and opportunities
2. Mandate Nature Transition Plans, based on sectoral transformation pathways, and foster collaborative commitments
3. Actions from central banks and supervisors
4. Create economic incentives for businesses and financial institutions to maximise the mobilisation of private finance.

The FfB Foundation recognises that countries may be at different stages of development and that there is a no-one-size-fits-all approach, so how the measures are implemented will vary according to national circumstances.

COP16 and NBSAPs

Following the landmark agreement of the GBF at COP15 in Montréal, COP16 is scheduled for October-November of this year. Before the conference, countries must submit NBSAPs that outline their approach to implementing the goals and targets of the GBF, including aligning financial flows and stimulating transformative action from the private sector.

The FfB Foundation is an observer to the Convention of Biological Diversity and part of the Resource Mobilisation Advisory Committee. The FfB Foundation, established in March 2021, is a non-profit organisation dedicated to fostering a call to action among financial institutions worldwide. With nearly 80 active members across 26 countries, the Foundation facilitates knowledge sharing and collaboration on biodiversity actions through its working groups.