Policymakers now recognize that nature loss, which includes the degradation of natural systems, poses serious risks to human well-being and social and economic development. From rising food insecurity to disrupted water cycles and worsened climate change impacts, widespread environmental degradation is already impacting lives and livelihoods across the planet.

For Ministries of Finance, nature loss presents both risks and opportunities. As they manage national economies, they must assess and mitigate the threats posed by environmental degradation. However, these risks are often large-scale and complex, making effective responses challenging. Furthermore, the financial tools to enact positive environmental changes, such as biodiversity credits, bonds, or debt-for-nature swaps, have proven insufficient, underutilized, or poorly understood.

Organizations like C3A are stepping in to bridge the gap between science, policy, and finance, helping institutions navigate the risks tied to nature loss.
One of the key objectives of COP16, alongside the Global Biodiversity Framework (GBF), is to address the financial gaps in nature conservation. The GBF estimates that halting and reversing biodiversity loss will require $700 billion annually until 2030. Meanwhile, current biodiversity financing hovers at just around $100 billion.

To bridge this financial gap, a comprehensive strategy is needed. This involves collaboration between governments, Multilateral Development Banks (MDBs), and international organizations to mobilize resources. Policymakers must ensure financial flows target regions most in need and explore innovative financial instruments, such as sustainability-linked bonds, blended finance, payment for ecosystem services, and biodiversity credits. Debt-for-nature swaps, for example, could allow countries to reduce their debt in exchange for investing in nature conservation, while biodiversity credits help private companies offset their environmental impact. 

While promising, these tools come with challenges. Policymakers must evaluate their environmental and macro-financial implications and develop regulatory frameworks to ensure their effectiveness. Without appropriate measures, these tools could fall short of expectations or even exacerbate inequalities.

In addition to new financial instruments, there are increasing calls to reform the global financial system itself. Proposals include expanding the IMF’s Special Drawing Rights (SDRs) to support climate-vulnerable countries and introducing debt suspension clauses for nations affected by natural disasters. Such reforms could unlock much-needed financial resources, especially for regions most impacted by environmental degradation.

First pre-COP event in Bogota

On September 20th, C3A had the privilege of participating in a first pre-COP16 event in Bogotá. This important event, hosted by the Ministry of Environment and Sustainable Development of Colombia, the Euroclima Program, and co-organized by the GIZ and Expertise France, focused on mobilizing biodiversity finance for Latin America and the Caribbean. To introduce this conference,  C3A presented an overview of the global context of biodiversity financing needs and resource mobilization.

>> WATCH THE REPLAY

>> Read the key highlights of this major event

To meet these challenges, and as part of COP16, C3A is hosting a side event on October 28 titled “Mobilizing and Reforming the Financial System to Achieve the GBF Targets.” This event will convene experts, policymakers, and finance officials to discuss the opportunities and challenges in biodiversity finance.
The discussions at COP16 will be pivotal in shaping the global response to the biodiversity crisis. Through collaboration, innovative finance, and bold reforms, we can ensure a future where both nature and society thrive. See below the agenda.