- Since COP16 in Cali, the finance sector has made significant progress in building the frameworks, standards and instruments needed to address nature loss.
- Yet a gap between this architecture and its implementation means significant capital is still flowing into activities harmful to nature compared with amounts invested in nature-based solutions.
- Ahead of COP17 in Yerevan, financial institutions must redouble their efforts while governments provide the policy and regulatory certainty needed to drive action at scale.
Amsterdam, 15 October 2026 – In the two years since COP16 in Cali, the finance sector has made significant progress in building the foundations for nature finance, but stronger action and clearer government policies are needed to meet global biodiversity targets for 2030.
2023 data reveal a stark imbalance in global financial flows: finance directed towards nature-negative activities exceeded investment in nature-based solutions by approximately 30 to 1. Moreover, financing for nature-based solutions remains overwhelmingly dependent on public funding, with private finance accounting for only around 10% of total investment.
Public finance is struggling to keep pace with growing needs, while gaps in tracking private investment make it difficult to measure progress. Parties consistently identify private finance as the hardest to report, because contributions are not recorded and corporate reporting is not mandatory in most jurisdictions.
This means that it is difficult to understand harmful private flows and take steps to redirect funds to nature positive activities. Uneven government policies and regulations further limit the shift from voluntary initiatives to wider adoption.
Despite the challenges in measuring private finance, the appetite is there. UNEP Finance Initiative’s (UNEP FI) member survey indicates the strong level of interest from the world’s largest banks and insurers who, for the first time, have ranked nature as their top priority ahead of climate.
“The economic importance of nature is fast being recognised and is firmly on the agenda for banks and insurers,” said Eric Usher, Head of UNEP FI. “This is why at COP17, UNEP FI is calling on governments, financial institutions, companies, Indigenous Peoples, local communities, civil society and international organizations to work together on strengthening the integrity, transparency and credibility of nature markets.”
From Cali to Yerevan: Is the Financial System on Track? identifies the challenge from Yerevan to 2030 as turning the architecture that has already been well advanced into measurable changes in financial flows that help halt and reverse nature loss. To achieve this, financial institutions must redouble their efforts to mobilise finance, manage nature-related risks, and improve data and reporting – a supportive enabling environment is necessary for this to occur.
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