Presentation from OECD-UNDP Global Conference on Biodiversity Finance, 29 April 2020

1. Session 5
Engaging with the private and
finance sector
Recent trends and developments

2. Session 5
Speakers
Moderator
Wednesday April 29th 2020
Onno van den Heuvel
Global Manager, UNDP BIOFIN
Anil Perera
Additional Director-Domestic Operations, Central Bank of Sri Lanka, and Secretary
to the Steering Committee on Sustainable Finance
Philippe Zaouati
Chief Executive Officer, Mirova
Gilles Kleitz
Director for Natural Resources, Agriculture, Water, Forests and Oceans at the
Agence Française de Développement
The Private and
Finance Sector as
Biodiversity Leaders
Ms. Mabel M. Niala,
Public Relations and Communications Strategy Corporate Affairs –
CEO Office, GCash, the Philippines
Alice Durand-Reville
Corporate Public Affairs Director, Danone
Bård Vegar Solhjell
Director General, Norad

3. Global estimate
private expenditures on biodiversity
PUBLIC DOMESTIC PRIVATEPUBLIC INTERNATIONAL
67.8
USD bn/yr
3.9-9.3
USD bn/yr
6.6-13.6
USD bn/yr
81 governments
(2015-2017 data)
Source: CBD, BIOFIN, COFOG
and other
Bi/multi-lateral ODA and
non-concessional flows
(2015-2017 data)
Source: OECD CRS
Sustainable commodities,
philanthropy, PES, others
(2015-2017 data)
Source: multiple sources
Source: OECD (2020), A Comprehensive Overview of Global Biodiversity Finance
oe.cd/biodiv-fin-report

4. The business case for biodiversity action (1)
Dependencies
• Market value of animal pollinated crops is USD 235-577
billion/year
• Coral reefs generate USD 36 billion/year for tourism
industry
Impacts
• 33% of global fish stocks are unsustainably fished
• Fashion industry responsible for 20% of global waste water
Source: OECD (2019) Biodiversity: Finance and the Economics and Business Case for Action

5. Risks Opportunities
Ecological
Reputational
Financial
Regulatory
Liability
Market
Cost savings
Resilience
New business models
Increased market share
Better relationships
Operational
Improved reputation
media coverage
The business case for biodiversity action (2)

6. Financing Nature: Two sides of the coin
1. Negative screening
2. Best-in-class (or positive)
screening
3. Norms-based screening,
4. Sustainability themed investing
5. ESG Frameworks, certification,
green principles
For-profit investments
articulating biodiversity
positive goals
1. Impact investment
2. Green bonds
Investment in
Biodiversity & Ecosystems
Articulating impacts on nature
into sectoral investment
frameworks

7. RevenueStreams Source of Revenue Market potential Conservation
Impact
Sustainable agriculture, forestry and fishery
products
US$418 billion Low to high
Ecotourism US$100 billion High
Green infrastructure n.a. High
Credits from carbon, biodiversity, water and
other offset markets
US$9 billion High
Compensation schemes for conservation
activities
US$36-42 billion High
Subsidies, including incentives and tax
exceptions
US$8 billion Low to high
Research, technology and other services, incl.
bioprospecting
n.a. Low to high
Operational cost-saving and resilience bonds n.a. Low to high

8. • Chile: green production private-public
partnerships
• Costa Rica: concessions for protected
areas
• Guatemala: sustainable tourism and
sport fishing mechanism
• Indonesia: green and blue sukuk
• Mexico: regenerative inv. consortium
• Philippines: G-cash Forest app
• Zambia: framework for green bonds
• South Africa: stewardships programmes
• Sri Lanka: green standards and
sustainable finance strategy
A multidimensional
approach

9. The Universe of Actors Private
Enterprises
Finance
Ministries
Asset
Managers
Payment
Platforms
Commercial
Banks
Central Banks
Development
Banks Pension funds
Insurers

10. 29 April 2020, Wednesday
15.00 – 16.30
CET Paris Time
FORTHCOMING
Session 6
New Biodiversity Finance Agenda for 2021-30
Global Conference on Biodiversity Finance - Virtual Series April 2020
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