United Nations Environment Programme Finance Initiative reviews COP17 push for private finance amid biodiversity funding gaps

The United Nations Environment Programme Finance Initiative (UNEP FI) reviewed the outcomes of the Convention on Biological Diversity’s COP17, highlighting greater reliance on private finance while implementation remains short of the 2030 biodiversity targets. The agreed Yerevan Pathway prioritizes tackling subsidies that harm nature and aligning national budgets with the Kunming-Montreal Global Biodiversity Framework. UNEP FI’s report card, released before the conference, found that financing for activities harmful to nature was roughly 30 times investment in nature-based solutions in 2023. Private finance accounted for only about a tenth of that investment. The convention’s secretariat reported nearly USD 2 billion in new pledges during the conference. Mobilizing private capital requires investment structures that support national biodiversity priorities while supplementing, rather than replacing, public funding obligations. Two reports launched at COP17 address institutional investors’ requirements for compensatory conservation schemes and the structuring of nature bonds issued by national and subnational governments. More than 70 organizations signed a call to action on integrity in nature markets, with Indigenous Peoples identified as partners in market integrity. Separately, the Cali Fund decision allocates half its resources to the self-identified needs of Indigenous Peoples and local communities, but pledges totaled only USD 10,565 at the conference’s close. Key fund rules were deferred to COP18 in 2028. Disclosure and insurance discussions focused on how ecosystem damage translates into financial risk. The International Sustainability Standards Board opened a consultation on a proposed practice statement for nature disclosures drawing on the Taskforce on Nature-related Financial Disclosures recommendations. Fifteen financial institutions favor a standalone nature standard, while others support integration within IFRS S1. An insurance briefing from UNEP FI and the United Nations Development Programme links ecosystem health to insured losses and identifies risk advice, underwriting, risk transfer and investment as tools for implementation. On subsidies, the final conference text only encourages countries to accelerate action according to national circumstances. UNEP FI plans to deepen its work on transition finance and sector pathways from 2027.