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To drive greater investment into nature-based solutions, Triodos Bank has released a new whitepaper titled “Financing the Nature-Based Solutions Sector.” The document aims to guide other financial institutions in developing strategies to fund projects that conserve, restore, and sustainably manage ecosystems while creating new habitats in urban and agricultural areas.
Nature-based solutions tackle pressing environmental challenges such as biodiversity loss, climate change, and ecosystem degradation. These efforts include restoring natural habitats, sustainably managing ecosystems, and creating biodiversity hotspots, all while delivering critical services like carbon sequestration, water purification, and soil enrichment.
The whitepaper highlights biodiversity's indispensable role in economic stability, pointing out that over half of global GDP depends on ecosystem services. However, WWF’s Living Planet Report reveals a staggering 73% decline in vertebrate wildlife populations over the past 50 years, underscoring the urgent need for large-scale restoration initiatives.
Triodos Bank has already committed substantial funding to pioneering nature-based projects. Recent examples include:
- Scotland: A £20.55 million loan to Oxygen Conservation to restore 23,000 acres of degraded land.
- South West England: A £3.85 million loan to Avon Needs Trees for the creation of a significant new woodland.
Triodos Bank’s chief commercial officer Jacco Minnaar said: “Investing in nature-based solutions is crucial for restoring our natural environment and mitigating the effects of the climate crisis.
“Our dedication is evident in our emphasis on five interconnected transition themes: energy, food, resources, societal, and wellbeing.
“By focusing on these themes, we strive to develop a comprehensive approach to sustainability that benefits the environment while also improving the quality of life for communities around the globe.”
The bank has set a 2026 target to report on the measurable impacts of its funded projects and is actively working with companies in its portfolio to minimize negative ecological impacts.
Triodos Bank’s initiatives align with international biodiversity commitments such as the **Kunming-Montreal Global Biodiversity Framework (GBF)**, a landmark agreement signed by over 120 nations. The GBF’s headline goal is to halt nature’s destruction by 2030 and accelerate regeneration efforts on an unprecedented scale.
Negotiated during the COVID-19 pandemic, the Kunming-Montreal Declaration represents a global consensus to protect ecosystems and safeguard biodiversity. It sets a roadmap for governments, businesses, and financial institutions to drive meaningful action.
Achieving the GBF goals requires a substantial financial commitment. According to the OECD’s latest biodiversity finance report, international nature finance needs to reach $20 billion annually between 2025 and 2030—an increase of $5 billion within just 15 months.
Funding priorities must span conservation, restoration, and new habitat creation across diverse ecosystems. Historically underfunded areas, such as coastal and marine environments, will demand urgent attention.
The report emphasizes the critical role of wealthy nations in closing this funding gap. Wealthier economies must support regions in the global south, where natural risks such as extreme weather, urbanization, and manufacturing pressures disproportionately threaten ecosystems.
Triodos Bank’s whitepaper serves as a timely reminder of the interconnectedness between biodiversity, economic resilience, and global environmental goals. By combining strategic investment with international collaboration, financial institutions can play a pivotal role in closing the nature finance gap and accelerating the transition to a sustainable future.
As the world faces mounting ecological challenges, initiatives like this highlight the transformative potential of nature-based solutions to restore biodiversity and secure long-term economic stability.
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