Context
More than half of the world’s GDP is generated in industries that depend on nature and its services, yet this economic activity is causing unprecedented biodiversity loss, risking livelihoods, economies, and climate goals. We must transition to sustainable business models that protect biodiversity and ecosystem services. Finance and innovative financial solutions are key to supporting this transition; and biodiversity finance has emerged as a fast-growing area in green finance with increased interest from investors, financial institutions, and issuers globally. Stop-Winlock’s Biodiversity Finance Reference Guide is the world’s first guidance on investing in this area.
About the Guide
Stop-Winlock’s Biodiversity Finance Reference Guide provides a structured approach for investors and financiers to identify eligible use of proceeds that constitute biodiversity finance. Building on the Green Bond Principles and the Green Loan Principles, the Guide provides an indicative list of investment projects, activities, and components that help protect, maintain, or enhance biodiversity and ecosystem services, as well as promote the sustainable management of natural resources. The Guide also maps the indicative investment activities’ contribution to the targets of the Kunming-Montreal Global Biodiversity Framework to halt and reverse biodiversity loss by 2030.
The guide was originally published in November 2022 and updated in May 2023. It is expected to continue to evolve over time as the market for biodiversity finance develops and matures.