Core Insights - The report titled "Natural and Biodiversity Finance: Theory and Practice" was released at the 2025 Bund Annual Conference, outlining China's achievements in financial support for biodiversity, establishing a multi-dimensional support system for global biodiversity governance [1] Group 1: Standard System Improvement - Biodiversity finance has been integrated into the sustainable finance framework, with the 2025 revised "Green Finance Support Project Directory" establishing a separate category for "Ecological Protection, Restoration, and Utilization," which supports activities related to nature and biodiversity [2] - Approximately 20% to 30% of green finance business is directed towards biodiversity-related activities, with the scale continuing to expand [2] - The People's Bank of China is developing specific biodiversity finance standards, resulting in a draft "Biodiversity Finance Directory" that includes 87 items across four categories, adding 24 new items compared to the previous directory [2] Group 2: Financial Product Innovation - Financial institutions in China are launching diverse products to attract social capital for biodiversity protection, integrating biodiversity into the green finance policy framework [3] - Innovative financial products include GEP pledge loans, wetland carbon credit loans, and biodiversity performance-linked loans, with breakthroughs in bond issuance for biodiversity-themed green bonds [3] - The ecological compensation mechanism is being advanced, with projects like the Yuanbao Maple project in Guizhou generating over 2000 yuan per mu in annual income, providing a replicable model for ecological project profitability [3] Group 3: Information Disclosure and Risk Assessment - Financial institutions and local governments are exploring assessment methods for nature-related financial risks, embedding biodiversity sensitivity into the entire credit process [4] - The 2025 "Sustainable Development Report Preparation Guidelines" released by the Shanghai and Shenzhen stock exchanges reference the international TNFD framework, laying the groundwork for nature-related information disclosure [4] - 33 companies, including Mengniu and CATL, have joined the TNFD pilot, gradually aligning with international standards [4] Group 4: International Cooperation - China's role in global biodiversity finance governance is evolving from a "participant" to a "co-builder," having chaired the COP15 and facilitated the "Kunming-Montreal Global Biodiversity Framework" [5] - The establishment of the Kunming Biodiversity Fund has projects covering 15 developing countries across six continents [5] - The People's Bank of China is promoting the inclusion of natural and biodiversity issues in G20 sustainable finance discussions, with bilateral cooperation deepening with countries like the UK, EU, and Singapore [6]

Core Viewpoint - The urgent need for a comprehensive global action to elevate biodiversity protection to the same strategic significance as decarbonization efforts is emphasized, as biodiversity loss is now a core challenge affecting both the environment and economic development [1][2]. Urgency of Biodiversity - The decline in pollinator populations threatens global food production, with approximately 75% of crops relying on pollination [2]. - Biodiversity loss disrupts soil health, degrades water quality, and leads to local climate instability, which are essential for human development and economic resilience [2]. - Increased interference with natural ecosystems raises the risk of zoonotic disease transmission, linked to environmental degradation and illegal wildlife trade [2]. - The expansion of renewable energy infrastructure, if not managed carefully, may inadvertently harm biodiversity, highlighting the need for coordinated climate and biodiversity goals [2]. Global Recognition and Policy Progress - Biodiversity's role in global stability is gaining political recognition, with initiatives like the TNFD providing frameworks for businesses to assess and disclose nature-related risks [3]. - Despite evolving policies, execution remains slow and lacks systematic funding, necessitating alignment between political will and actionable funding mobilization [3]. Innovative Financial Tools - Innovative financial instruments, such as the "Rhino Bond" by the World Bank, link investment returns to measurable conservation outcomes, showcasing the potential for performance-based ecological financing [4]. - Brazil's initiative to establish the "Tropical Forest Forever Fund" aims to raise $125 billion to incentivize low deforestation rates in rainforest countries, potentially transforming tropical forest conservation financing [4]. Middle East Biodiversity Initiatives - The Middle East is emerging as a region of interest for biodiversity, with Saudi Arabia undertaking desert ecosystem restoration and reintroducing over 7,000 animals [5]. - The UAE is actively protecting key mangrove and marine ecosystems, integrating biodiversity into its broader clean energy and sustainable development agenda [5]. China's Leadership in Biodiversity Financing - China is demonstrating a strong commitment to biodiversity, having issued the world's first biodiversity-themed green bond in 2022, raising 1.8 billion RMB for nature-friendly infrastructure and ecological restoration projects [6]. - The "30×30" target aims for 30% of land and water areas to be protected by 2030, supported by large-scale ecosystem protection initiatives [7]. Filling the Biodiversity Financing Gap - There is an estimated annual financing gap of $700 billion for biodiversity protection, which, while significant, is less than global annual spending on carbonated beverages [8]. - Suggested actions to bridge this gap include reforming harmful subsidies, expanding public and private investment, developing market mechanisms, enhancing regulatory frameworks, and promoting global cooperation [9]. Conclusion - Biodiversity loss is evolving into a severe crisis that transcends national boundaries and poses threats to economic and healthcare systems, as well as ecological resilience [10]. - Nature financing can bridge economic development and environmental protection, fostering a new era where biodiversity conservation drives prosperity [10].