Investing in nature as infrastructure the opportunity

The dual crises of climate change and biodiversity loss continue to be in the spotlight. Increasingly, it is accepted that the crises are inextricably linked, and that to solve either crisis effectively, both must be addressed together. The Kunming-Montreal Global Biodiversity Framework (GBF) sets the stage for a decade of action on nature and biodiversity, with clear goals and targets including for financing nature and addressing the USD700 billion gap in annual biodiversity funding between now and 2030. While there are still many challenges to overcome regarding financing nature and biodiversity, the GBF gives a clear framework to align to. Integrating biodiversity into infrastructure project level decision making can help governments achieve Global Biodiversity Framework Targets including protecting 30% of land and seas by 2030. There is a fast-developing market for financing nature with expectations for this to grow significantly over the coming decade as governments respond to the GBF through their National Biodiversity Strategy and Action Plans (NBSAPs). The innovative public and private financing tools that are being used to finance NBSAPs and more broadly, natural ecosystems and the biodiversity therein, are explored in this report. The Asian Infrastructure Investment Bank (AIIB) has made progress on its journey to explore Nature as Infrastructure (NAI), a concept formulated in its Asian Infrastructure Finance 2023 report Nature as Infrastructure. Having started the journey by incorporating nature-based solutions (NBS) into its infrastructure projects, the next step is to incubate standalone NAI investment opportunities. This report presents high level opportunities for investing in nature as infrastructure by using innovative financing instruments. It is intended as a high-level guide to set the direction and build momentum—particularly among multilateral development banks (MDBs)—of investments in NAI. It is not intended to provide in depth guidance on implementing such investments. Rather, it shows that by demonstrating the financial feasibility, impact and scalability of investing in NAI through proof-of-concept projects, MDBs, including AIIB, can work to mobilize private capital towards green infrastructure with climate change and biodiversity co-benefits, and to play a role in promoting greater regional and global attention and action for nature.

source :

https://www.aiib.org/en/news-events/media-center/blog/2024/pdf/Investing-in-Nature-as-Infrastructure-The-Opportunity_web-file_18OCT.pdf