IDFC participation to COP1530 November 2022
Last month, following our Annual Meeting on COP27IDFC Pavilion, we announced our accreditation as an observer member to COP15, our position paper on biodiversity to support the post-2020 Global Biodiversity Framework with the potential to mobilize US$ 100 billion by 2027, a toolbox on integrating biodiversity into strategies and operations of PDBs.
On this occasion the Club is announcing its participation to the official Side-Event: Alignment of financial flows: channeling public and private investment towards nature coorganized with the Finance for Biodiversity Foundation (FfB foundation)
Biodiversity loss and climate change represent significant risks to corporate and financial stability. Tackling biodiversity loss by aligning financial flows with global biodiversity targets will be an important part of the solution in terms of climate change, poverty reduction and equitable development, particularly in developing countries. By integrating nature-related financial risks, impacts and dependencies into investment decisions, by scaling up nature positive investments such as nature-based solutions, restoration of degraded ecosystems, sustainable agriculture, fisheries and infrastructure, and finally by disclosing nature-related financial risks and opportunities, the financial sector will make the difference.
The objectives are to:
- Raise attention of CBD delegates and stakeholders on the absolute necessity to align public and private financial flows to achieve the 2050 vision of living in harmony with nature,
- Discuss the role of public development banks and of private financial institutions in greening finance and financing green separately and together.
On this occasion, the Club is recalling its common commitments, first achievements and operational deliverables for biodiversity.
Update of IDFC Position Paper on Biodiversity
To support the ambition of the post-2020 Global Biodiversity Framework. In this regard, IDFC acknowledged its potential to mobilize more than $100 billion of biodiversity finance by 2027. This position is the first of its kind in the financial community in terms of setting a financial goal within a specific timeline.
IDFC Green Finance Mapping for the second year integrating biodiversity in its tracking
Since 2011, the International Development Finance Club (IDFC) has conducted a periodic mapping of member institutions’ green finance contributions. Since 2019, the Club is reporting on its biodiversity finance contributions.
In 2021, IDFC members reported a record high of USD$ 224 Billion a 21% increase from 2020 and $18 billion of investments in biodiversity, 31% higher than in 2020.
Toolbox on Biodiversity
The International Development Finance Club (IDFC) “Biodiversity Toolbox” introduces the conceptual foundations for understanding the role of biodiversity for financial institutions. It is designed to help its readers navigate the wealth of information in this dynamically developing field. It mostly addresses members of the IDFC, their clients and any other financial institution willing to include biodiversity in its operations. Ideally, the toolbox should be useful for both newcomers to the topic and established professionals. At its core, it provides a stepwise approach to integrate biodiversity concerns into the strategies and operations of development finance institutions. Each step is then illustrated with a selection of available methods, tools and examples. The tools presented are merely a selection, as there are new advancements all the time. That is why this toolbox is supposed to be a living document that will be a reference and a source of inspiration for its users and facilitate a continuous exchange of knowledge and experience among IDFC members.