Investing in the wealth of nature through biodiversity and ecosystem service finance solutions

The last fifteen years have been transformative in the field of biodiversity and ecosystem services finance. The Kunming-Montreal Global Biodiversity Framework (GBF) articulated a pathway to achieve the global vision of “living in harmony with nature†by 2050, with four goals and 23 targets to be met by 2030. Published reports indicate biodiversity finance needs are on the order of seven times current investments. This paper reviews recent public and private sector efforts to address this biodiversity finance gap and suggests priorities to increase progress toward its closure. In this review of biodiversity finance, we first provide a brief historical overview of the biodiversity finance gap, next describe current methodologies designed to identify, quantify, and bridge the gap in the public and private sectors, two sections reviewing current public and private sector efforts to close the gap follow, and a discussion of future directions and trends concludes. From asset management to biodiversity credits to crowdfunding, and from debt for nature swaps to environmental fiscal transfer and green bonds, we highlight efforts in the global south to address their biodiversity finance needs and meet their commitments to the Convention on Biological Diversity. Research on subsidies harmful to nature, more effectively connecting biodiversity outcomes to financial investments, identifying finance mechanisms that generate climate and biodiversity co-benefits, and further innovation in private sector solutions like biodiversity credits and offsets are future priorities and perhaps a research agenda in this sphere. We hope this review generates discussion and a research agenda within the biodiversity finance community to help us fulfil the ambitious goals of the GBF by 2030.