This session explores biodiversity finance as a critical yet underrepresented lens for embedding ecological considerations into economic and financial systems. Biodiversity loss poses profound physical, transition, and systemic risks to financial markets. As fiduciaries of global capital, financial institutions (FIs) exert a substantial influence on biodiversity outcomes through their investment, lending, insurance, and procurement decisions.
The session will examine the intersection of biodiversity with financial markets, business models, and insurance practices, and what this implies for investment strategies and long-term value creation. It will explore the role of nature credits and similar instruments in shaping biodiversity-positive markets, while critically assessing their credibility and ethical implications. Attention will also be given to policy and governance mechanisms, such as regulation, disclosure, and risk assessment, that support the integration of biodiversity into financial decision-making. A further focus lies on how FIs can operationalise biodiversity-related risks, dependencies, and opportunities, and how new partnerships, frameworks, and innovations may help align capital flows with ecological goals.
By bringing together scholars, practitioners, and policymakers, the session aims to bridge disciplinary and sectoral silos, deepen understanding of biodiversity finance, and surface tensions between financial logics and ecological realities.
The objective of this session is to initiate a discussion on the establishment of biodiversity finance as a transformative mechanism for redirecting financial flows towards ecologically viable and ethically sound futures.