Despite growing recognition of the need to address climate change, the urgency around biodiversity loss still lags behind. Yet the two challenges are inextricably linked. Triodos and Fondaction firmly believe that preserving, conserving and restoring biodiversity is essential for accelerating climate action. The time to act and mobilise capital is now.
Here are our main observations:
1. ‘Small is beautiful, but not always
Most funds for biodiversity are relatively small, creating two main issues: they can’t attract large institutional investors, and the small scale of biodiversity projects makes large-scale financing difficult. We need financial structures that can draw in big investors who believe biodiversity is key to combating climate change. Without scaling up these projects and funds, we risk missing a significant opportunity in this fight. It’s crucial to direct capital to impactful projects and avoid ‘greenwasting’ - investing in projects that claim to be sustainable but fail to deliver. This can undermine the credibility of sustainable investments and erode investor confidence by diverting funds from genuinely beneficial initiatives.
2. Emerging versus developed markets
Funds for natural capital and biodiversity often target developing countries due to their rich and fragile ecosystems. However, developed markets also need attention for biodiversity conservation and ecosystem restoration. We must find ways to value, develop, and finance these projects in developed regions. Despite regional differences, there are opportunities for sustainable ecological and economic benefits. The challenge is to structure these projects while considering local specificities.
3. Collaboration: the key to success
Collaboration is key to accelerating progress on these critical issues. That’s why Triodos and Fondaction have teamed up. Our combined expertise allows us to think differently and advance more quickly.
By partnering with industry leaders, we can innovate, share best practices and create synergies. The global impact finance community has significant power to support climate and biodiversity. Strengthening partnerships and increasing collaborations will help us achieve large-scale, tangible results.
Taking action
To effectively protect biodiversity and the climate, we need innovative financial solutions that attract major investors and direct capital to high-impact projects.
Biodiversity is a global issue with specific needs in both developed and emerging markets. Collaboration is key to accelerating progress. By working together, we increase our chances of success and speed up the essential changes our planet needs.
