As the severity of the inter-connected biodiversity and climate change crises becomes ever more alarming, financing for nature-based solutions is increasing rapidly. With global temperatures likely to reach 1.5°C by 2030, the IPCC Sixth Assessment Report1 predicted with high confidence that the warming trend will cause unavoidable increases in multiple climate hazards and present high risks to ecosystems and humans. In 2019 the Intergovernmental Panel on Biodiversity and Ecosystem Service (IPBES)2 reported that nature and its vital contributions to people are deteriorating worldwide.

In response to higher replenishments of proven global funds like the Global Environment Facility (GEF), new funds such as the Global Biodiversity Framework Fund, and increased bilateral and private pledges for reaching ambitious global conservation targets such as protecting 30 percent of the Earth’s terrestrial, inland waters, coastal, and marine areas by 2030 (the “30×30” goal) are at historic levels. Global biodiversity finance flows were estimated to be between $123.6 billion to $142.9 billion in 2019 and growing.3 In the private sector, commitments to net-zero emissions have driven the global demand for voluntary carbon credits, which are expected to increase by a factor of 15 by 2030 and by a factor of 100 by 2050.4 When combined with greater attention to “greening finance” through the reduction of harmful subsidies, improved energy technologies, and effective investments in protected areas, nature-based infrastructure, and more nature-friendly production practices, a major economic transition is underway to restore balance to our planet.