Core Viewpoint - The development of biodiversity finance in China is currently limited in scale and product variety, despite existing supportive policies and standards. The article emphasizes the need for innovative financial products to transition from initial offerings to scalable solutions, particularly through the case study of Quzhou City in Zhejiang Province, which is a pilot area for green finance reform [1][2]. Group 1: Current State of Biodiversity Finance - Biodiversity is recognized as the natural material basis for sustainable human production and living. The Chinese government has initiated strategic plans for biodiversity protection, including the "China Biodiversity Protection Strategy and Action Plan (2023-2030)" [2]. - The current market for biodiversity-related financial products, including credit, insurance, and bonds, is still in the exploratory phase and faces challenges in scaling up from initial innovations [4]. Group 2: Innovations in Biodiversity Credit - Biodiversity credit is essentially a subset of green credit, aimed at supporting projects or enterprises related to biodiversity [5]. - Notable international innovations include the first credit product incorporating natural capital impact assessments by Sumitomo Mitsui Trust Bank in Japan, and the "Planet Impact Loan" by Rabobank and FrieslandCampina in the Netherlands, which rewards farmers for biodiversity contributions [7]. - In China, banks like the Industrial and Commercial Bank of China and Postal Savings Bank have initiated biodiversity-related loans, with examples including a loan of 189 million yuan for the maintenance of a scenic area and various biodiversity-themed loan products launched by local banks [8]. Group 3: Innovations in Biodiversity Bonds - The global market for biodiversity bonds is projected to reach nearly $300 billion by the end of 2024. Innovations in this area focus on repayment and interest structures [9]. - The International Finance Corporation issued the world's first forest green bond in 2016, which has seen significant growth in scale and flexibility in repayment options [9]. - Chinese financial institutions have also begun to explore biodiversity-themed green bonds, with notable issuances from Bank of China and Agricultural Development Bank of China [10]. Group 4: Innovations in Biodiversity Insurance - Biodiversity insurance products include traditional green insurance, catastrophe insurance, and wildlife liability insurance. Developed countries have established mature environmental liability insurance systems to support biodiversity protection [11]. - Recent innovations include the establishment of a coastal management trust fund in Mexico, which purchases insurance for coral reefs to fund restoration efforts after disasters [11].