Mobilizing Private Finance for Nature
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 in order to protect nature while fostering sustainab...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/en/791251625066253367/Mobilizing-Private-Finance-for-Nature http://hdl.handle.net/10986/35984 |
| Summary: | 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 in order 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. |
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