International institutions sign IDB-led joint statement at COP26 and announce plan to mainstream nature into policies, analysis and investments
Glasgow – The Multilateral Development Banks (MDBs) led by the Inter-American Development Bank (IDB) today pledged to mainstream nature into their policies and dramatically increase funding for nature for member countries. The joint bank statement “Nature, Men and Planet” is committed to supporting countries in defining and implementing sustainable strategies.
IDB President Mauricio Claver-Carone led the announcement at the World Leaders Summit event on Forests and Land Use in United Nations Climate Change Conference COP26.
“Natural capital is essential in the post-COVID-19 recovery for Latin America, the Caribbean and the world. It creates jobs, generates income, leverages private sector investments, and resiliently protects essential ecosystem services. This is why the IDB has redoubled its efforts. work on climate change and biodiversity over the past year, and why this is a central pillar of our 2025 Vision for the region’s recovery, ”said Claver-Carone.
MDB engagement focuses on five pillars:
- Direction: Define institutional strategic approaches to further integrate nature into analyzes, assessments, advice, investments and operations by 2025;
- Encourage “positive nature” investments: Develop projects, business models and financing instruments to support economic activity that seeks to reverse the drivers of nature loss and promote its protection and regeneration;
Foster synergies at national and regional levels: encourage public and private sectors and international organizations to work together and support governments to revise their national biodiversity strategies and action plans in line with the post-2020 Global Biodiversity Framework;
- Valuing nature to guide decision-making: Use existing and new tools for public and private sector clients to better enhance, manage, protect and restore nature and its natural assets in a sustainable manner in order to generate development benefits;
- Reporting: Align goals and develop collaborative tools and methodologies to track ‘positive nature’ investments across portfolios and improve public reporting on efforts and initiatives to mainstream nature into analytics and operations.
The MDBs signatory to the declaration with the IDB are the African Development Bank Group, the Asian Development Bank, the Asian Infrastructure Investment Bank, the Caribbean Development Bank, the European Bank for Reconstruction and the Development, the European Investment Bank, the Islamic Development Bank and the World Bank Group. The declaration is available here.
The United Nations estimates that the world’s oceans and terrestrial ecosystems each absorb 25% of emissions, and nature-based solutions could account for 40% of the reduction in carbon emissions needed to limit global warming to less than two degrees Celsius by 2030.
Latin America and the Caribbean have the most critical assets to nurture nature-based solutions. In addition to being home to seven of the 25 biodiversity hotspots, the region accounts for 40% of the world’s biodiversity, 30% of freshwater and nearly 50% of the world’s tropical forests. However, this natural asset is not being tapped and nature-based projects in the region are not reaching their full potential, mainly due to a lack of technical knowledge, strategy and funding. In some cases, policies still act as negative subsidies for biodiversity.
Holistic approach to natural capital
Over the past five years, the IDB has invested more than $ 800 million in 28 projects with components of nature-based solutions. The Bank has implemented new financing mechanisms as part of a holistic approach focused on improving the climate and healthier ecosystems, as well as new opportunities for green jobs and growth. One example is the Natural Capital Lab, a finance lab dedicated to integrating and supporting innovative finance projects across the Bank.
This year, the IDB launched a new class of natural capital assets on the New York Stock Exchange. This will allow countries to convert their natural assets into financial capital, trade the ecosystem services they provide, and attract institutional investors. The Bank helped Costa Rica become the first country to offer its natural assets on this innovative platform.
The IDB has also developed the Amazon Initiative, a program to support the bioeconomy and regeneration activities in the Amazon Basin. In addition, the Bank secured $ 279 million from the Green Climate Fund (GCF), the world’s largest climate fund, to finance a $ 600 million facility to leverage investments in support of the adaptation and mitigation of climate change in the Amazon basin.
IDB – Inter-American Development Bank published this content on November 02, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 02 November 2021 19:29:02 UTC.